Riding the Regulatory Roller Coaster


The Dodd-Frank bill may be poised to remake the world of nonadmitted insurance. But the devil is in the details.


We have two full-time people and all their do is license us. So having one license and being able to do it much easier and simpler is a huge cost savings.


Glenn Clark, Rockwood Insurance and Target Markets Founder


Surplus lines insurers and producers were surprised in 2010 to see reform legislation for their sector had been inserted into the text of the sweeping Dodd-Frank fi nancial reform package.


Corks aren’t popping yet; the language of the law leaves much in doubt until states resolve the details.


The aim is simplifi cation. That could dull the competitive edge gained by some wholesalers who have mastered the details of multi-state licensing. Glenn Clark reported his fi rm holds 254 licenses, allowing him to compete in every state with the largest of brokers.


Richard Augustyn agrees that multi-state licensing and compliance is a “huge expense.” But the value of a program administrator, MGA or wholesaler isn’t necessarily that they have a better handle on bureaucracy, Augustyn said. Instead, it’s the competitor who comes in with a better idea, a better product or a better execution.


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