You have now served at the SLA for a dozen years and have overseen tremendous growth in the surplus lines industry. What has been the most significant industry change you have seen while at the SLA?
BM: For me, the industry’s exponential growth from 6% of the commercial insurance market in California to 20% has been the most significant change. Going from 6% to 20% fundamentally changed the industry from a niche market to a cornerstone. Much of this growth has been achieved through a significant amount of mergers and acquisitions. The industry has seen the creation of several global surplus lines brokerages, such as Ace, Aon, Ryan Specialty, and Amwins, just to name a few of the leading firms.
What do you think is the most significant challenge facing the surplus lines industry today?
BM: The growth we are seeing on the personal lines side presents a very notable challenge for the industry. In particular, I am talking about the massive increase in the amount of homeowners policies that have gone into the California surplus lines market as admitted carriers have pulled back in recent years. While it is important for surplus lines to fill coverage gaps, this specific type of business comes under a much more intense focus from regulators and legislators than the commercial business that represents the overwhelming share of our premiums and transactions.
How do you think artificial intelligence (AI) will change the client relationship-centric model of the insurance industry?
BM: I expect that we are likely to see far-reaching changes in the next decade that we might not even be able to imagine at this point. The amount of resources being devoted to AI right now is on a military-spending scale, and the computing power going into it is almost unfathomable. It is likely that significant portions of underwriting will either be done by AI or heavily informed by AI.
However, in more discretionary areas where underwriting must be tailored to the individual insured, I expect a role for human interaction and decision-making will always exist.
As noted in the Arkley Institute Quarterly Update issued last winter, the SLA has contributed a generous scholarship for USC risk management students who want to build a career in the risk management and insurance industry. What are some qualities and characteristics you believe are important for these students to develop?
BM: A number of characteristics and qualities are vital for these young people to succeed in this industry. Several of them fall under the umbrella of basic workplace skills: conscientiousness, a good work ethic, the ability to work as part of a team, and basic professionalism. As Woody Allen put it, “90% of life is just showing up.” If you “show up” every day, if you have the right attitude, if you put in the time and effort, and if you work well with your peers, that is going to give you a solid foundation.
But beyond the basics, I think knowing your job, your company, and your industry well is vital — know how it works, know the terminology, put yourself in a position to have discussions and meaningful interactions with people in your space. I also think it’s extremely important to have problem-solving skills — being a thinker rather than just a “doer” adds value in a way that goes far beyond just coming in every day, working your 9-to-5, and hitting your metrics. As I tell people, we are not a widget factory. We are a thinking organization.
And finally, above all else, be curious. Ask questions and be eager to learn. The problem-solvers, the thinkers, the curious people — those are the ones who are going to rise.
What is a fun fact about yourself?
BM: In 1988, I was two matches away from making the U.S. Olympic taekwondo team. I reached the Olympic trials in Miami after winning the state taekwondo championships in New Jersey and Alabama.
