I am looking forward to the upcoming year serving as your NASBP President. During my Presidency, I plan to emphasize the bond producer’s role of mentoring clients and others to achieve success. We are not just in the bond business; we are in the mentoring business. Bond producers function in many key roles with their clients and others. Producers assist their contractor clients in establishing relationships with surety partners; educate local, state, and federal legislators about the protections that surety bonds provide taxpayers; and participate in outreach programs to teach small, emerging business owners how to establish and increase surety credit. Making a greater commitment to these groups is one of the highest goals we can set for ourselves and our industry.

We need to stand behind the surety product long after we collect our premium and commission. Our combined efforts will dramatically and positively impact our industry. NASBP bond producers should utilize the Association’s many resources to increase their commitment to these groups. The NASBP Legislative Fly-in, which I attended last week, is such an event. At the Fly-in, NASBP members meet face-to-face with their members of Congress on Capitol Hill and form positive, trusting, and strategic relationships with their federal elected leaders while educating them about the benefits of the surety product.

At that June 20 NASBP Fly-in (see article and pictures in this issue of Pipeline), we had 65 attendees. I’m proud to say that we were able to exceed the number of Congressional Offices visited from the last Fly-in, visiting more than 60 different Congressional offices. My congratulations to those who attended. The number of visits per attendee increased, and our presence on Capitol Hill in turn increased. In speaking with attendees at the closing reception at the Senate Hart Office Building, I found that a number of attendees had an easier time this year scheduling their visits and were greeted warmly because they were known by Congressional Offices from past NASBP Fly-in events. I believe that it is imperative that we continue our Legislative Fly-ins annually and that we do whatever we can to encourage our membership to attend. We make a nice living from the surety business, so I believe we are obligated as surety professionals to make a personal commitment to promote and to protect our industry.

I also think it’s important to show the next generation the importance of advocating for your interests and your livelihood. Last year I brought my daughter, and this year two members brought their children: John Charlton brought his son, Austin, and Chris Downy brought his daughter, Elise, so that they could see where legislation occurs and personally witness discussions with elected representatives. What a great opportunity for these young people!

We cannot forget that, with a stroke of a pen, legislators can eliminate mandatory bonding requirements. If legislators are unfamiliar with our product or its importance, how difficult can it be for them to decide to make bonding requirements discretionary and not mandatory? Clearly, inaction or apathy will exact a high price on our industry.

I truly believe the more we give back the more we get back. To quote Government Relations Director Larry LeClair, “Every day is Advocacy Day.” My involvement in NASBP advocacy events has translated into having a relationship with members of the California Congressional delegation. For the fourth year in a row, the NASBP California group, which this year included Susan Hecker, Maureen O’Connell, and myself, have visited these offices. The staff for these Congressional offices know who we are, they are interested in what we say, and they know that we are here as a resource. I personally feel good that I am advancing the interests of the industry, and my presence in DC has given me greater appreciation of our representative governmental system. If surety professionals wonder if their presence makes a difference, I can truly tell them that it does.

In closing, I want to welcome Martha Perkins, who has joined the NASBP staff as General Counsel. I look forward to working with the NASBP membership and staff in my role as your NASBP President.

Sincerely,

Lawrence F. McMahon
NASBP President

Lawrence F. McMahon is Executive Vice President/Surety Manager of Alliant Insurance Services, Inc. in San Diego, CA. He can be reached at lmcmahon@alliantinsurance.com.