For 87 years, the American Association of Managing General Agents (AAMGA) has nurtured a reputation and culture based on integrity, professionalism and strict membership standards. These characteristics have distinguished the association and served as a source of pride for its members.
In May, the AAMGA board of directors proposed bylaw changes to broaden the association's membership base to represent the entire wholesale insurance market. The ensuing dialogue—with our current members and the industry as a whole—has centered on how we will continue to differentiate ourselves from other industry associations and maintain our unique culture.
We have emphasized that the respected culture of AAMGA will remain intact, from the relationship-oriented atmosphere of our annual meetings to the integrity and professionalism that defines us. We have shared our plans to manage growth methodically by maintaining membership requirements such as underwriting or binding authority, minimum years in business, minimum premiums written and board approval.
The goal of the board proposal is to enhance the current mission of our association: to provide members with expanded networking opportunities, to offer a richer educational platform through the AAMGA University, and to continue to advocate for the importance of wholesale insurance to legislators, regulators and courts, both domestically and in the United Kingdom. In fact, we have never been relied on more for our industry guidance.
We believe a broader membership base will better represent the entire wholesale insurance marketplace and afford members more diverse and relevant programs, tools, resources and benefits, while lending greater credibility and strength to the entire market.
During discussions with members over the last 6 weeks, we found many support the proposed membership changes, but there has been less support for a change to the association's name, as originally proposed. We listened and decided not to pursue a name change at this time. We want the focus to be on the key issue, which is expanding our membership base to better reflect the market realities of today.
These changing realities were captured by outgoing president R.C. Chaffin at our 2013 annual meeting when he asked attendees how many were doing business the same way they did 10 years ago. Not one hand was raised. Indeed, increasing specialization in the wholesale distribution channel has changed how MGAs do business, while adding program administrators, managing general underwriters, aggregators, brokers and other professionals who operate similarly to MGAs. Simultaneously, we have seen a consolidation trend separately among MGAs and carriers, reducing the number of corporate participants.
The board believes the best course for AAMGA is to widen our membership base to include other wholesale distributors. Bringing more professionals under a single umbrella will enhance and sustain our association while increasing our value to members and the industry.
There are historical precedents. In 1926, we were born as the Association of Fire Insurance General Agents. We became the American Association of Insurance General Agents in 1930 and, finally, the AAMGA in 1948. During each change, we added new market participants, refined our focus, and changed membership rules and opportunities for the Association mirrored those the market afforded.
Today we believe membership rules should again be modified to reflect market changes—enhancements we believe will help AAMGA bring more value to members and benefit the entire wholesale insurance marketplace. The final decision rests with our members, who will receive ballots on July 26.
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