Run Time: 2:33
Pressure to Merge
The soft market and tough economy has placed pressure on some wholesale brokerage firms to merge. Neal Abernathy, CEO of Swett & Crawford, thinks the surplus lines industry will see more consolidation in the future thanks to the rising cost of doing business today. In this interview with Insurance Journal’s Andrea Ortega-Wells from the annual National Association of Surplus Lines Offices (NAPSLO) annual convention in San Diego, Abernathy says while there will always be a place for smaller wholesale firms, especially specialists, large organizations may dominate as insurance carriers and retail brokers continue to limit the number of wholesale partners they choose to do business with.