f o L L A H
IBAMAG.COM ISSUE 6.11 | $12.95
E M A F 2018
IBA honors 29 of the insurance industry’s most influential leaders
MANAGING TODAY’S EMPLOYMENT RISKS
Why employment practices liability is more crucial for your clients than ever before
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MEET THE 2018 YOUNG GUNS
Get to know 54 rising stars who are rewriting the future of insurance
EXPERT ADVICE ON E&S
Four leaders in the E&S segment reveal the best opportunities for brokers
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ISSUE 6.11
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CONTENTS
f o L L A H
E M FA 2018
SPECIAL REPORT
04 Editorial
Is it time to sell your agency?
06 Statistics
FEATURES
INDUSTRY ICON
Travelers’ Tim Francis has specialized in cyber insurance since its early days. So where does he think the market is headed next?
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44
THE INSIDER’S VIEW OF THE WSIA The latest on the E&S market from the WSIA Annual Marketplace
08 Head to head
How to increase adoption of insurance for natural disasters
10 News analysis
Are your small business clients still ignoring their cyber exposures?
12 Intelligence
14 Workers’ comp update
A booming job market is driving new opportunities in workers’ comp
16 Technology update
FEATURES
48
WHAT’S NEW IN WORKERS’ COMP? An inside look at the trends that are defining workers’ compensation insurance right now
YOUNG GUNS 2018
54 FEATURES
YOUNG GUNS 2018
These 54 young insurance professionals represent a bright new future for the industry
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Why African-Americans haven’t made headway in the insurance industry
This month’s big movers and shakers
HALL OF FAME 2018
PEOPLE
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UPFRONT
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IBA presents a new class of 29 insurance veterans who have shaped the industry with their unwavering dedication and visionary leadership
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The E&S property segment is brimming with tech possibilities
23 Opinion
Legacy technology is holding the industry back
FEATURES 52 Brokerage insight
Hub International’s Shawn McLaughlin tells IBA how evolving healthcare delivery is affecting the insurance realm
76 Professionally speaking
What are the top risks in professional liability in 2018?
PEOPLE 79 Career path
Education has always been at the fore of NetVU CEO Kitty Ambers’ career
80 Other life
Just say om with broker and yoga teacher Patience Blessing
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ESO-
Deliver the expertise.
We can. Expertise that allows us to understand the complexities of our business. Talented people who are inspired to deliver a remarkable experience. nationwide.com/wecan
E&S/Specialty A.M. Best rating of A+ (Superior), FSC XV Fortune 100 company
Nationwide and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. Š 2018 Nationwide
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8/14/18 4:22 PM 26/10/2018 6:30:55 AM
UPFRONT
EDITORIAL
Hungry for more
R
eflecting on the insurance industry in 2018, one word stands out above all others: acquisition. From AXA’s blockbuster purchase of XL Group to Marsh & McLennan’s move for JLT, there have been plenty of headline-grabbing deals throughout the year. However, while the big names might have stolen the spotlight, it would be wrong to overlook the sheer volume of moves made on a smaller scale – deals for brokerages, underwriters and wholesalers have poured in on an almost-daily basis. Market participants expected M&A activity to accelerate in 2018, and that has proven to be the case. According to AIG, global insurance M&A activity had reached nearly $9 billion by the end of the first quarter, an 18% increase over the first quarter of 2017.
There’s a natural temptation to be bought out by a bigger player – a firm that can offer the resources and capital to make previously unreachable growth achievable For the acquirer, there are plenty of advantages to buying an established business: a proven brand, a built-in customer base and a host of talented employees. But what’s in it for the small brokerage that suddenly finds itself on the ‘wanted’ list? For many, there’s a natural temptation to be bought out by a bigger player – a firm that can offer the resources and capital to make previously unreachable growth achievable, all for an attractive price. Many small companies are even able to retain their management teams and staff – it’s business as usual, but on a much bigger scale. However, the prospect must be treated with caution. Ultimately, you’re putting your hard work in someone else’s hands. Even if a firm says you’ll retain your independence, that doesn’t mean you and your staff won’t be affected if their business takes a turn for the worse. Will you get an above-market price? What level of financial backing and security will you receive? And is the business mix and ethos truly a match for yours? If you’re considering a new start for your business, make sure you carry out your due diligence. Remember that any company that’s serious about your business needs to do a lot more than talk dollars – it needs to prove it can match the reputation you’ve earned. The team at Insurance Business America
www.ibamag.com MAY 2017 EDITORIAL Managing Editor Paul Lucas Journalists Alicja Grzadkowska, Lucy Hook, Bethan Moorcraft, Ksenia Stepanova News Writers Lyle Adriano, Krizzel Canlas, Terry Gangcuangco, Mina Martin, Gabriel Olano Staff Writers Hannah Go, Libby MacDonald, Nicola Middlemiss, Joe Rosengarten, Ryan Smith, Heather Turner Copy Editor Clare Alexander
CONTRIBUTORS Bill Pieroni
ART & PRODUCTION Designer Joenel Salvador Production Manager Alicia Chin Traffic Manager Ella Dayandante
SALES & MARKETING Vice President, US Market Cathy Masek Vice President, Sales John Mackenzie Media Sales Managers Chris Anderson, Desiree McCue Mktg & Comms Manager Lisa Narroway
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Shau
Liberty Mutual Insurance proudly congratulates Shaun Kelly.
Shaun, your leadership has helped guide and build some of the most successful companies in the industry. We applaud you for your well-deserved induction into the Insurance Business America Hall of Fame.
Š 2018 Liberty Mutual Insurance. Insurance underwritten by Liberty Mutual Insurance Co., Boston, MA, or its affiliates or subsidiaries.
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UPFRONT
STATISTICS
Diversity a work in progress African-Americans in insurance say they face greater obstacles and have less room to take risks Insurance is often jokingly referred to as ‘pale, male and stale’ – and indeed, the industry continues to be unrepresentative of the country’s demographics. In a recent survey of African-American insurance professionals, Marsh found that the obstacles placed in front of African-Americans were greater than those for white employees or
PREDOMINANTLY WHITE According to IIABA’s 2016 survey of insurance agencies across the country, Caucasians make up the bulk of insurance professionals at every level – especially in senior-level positions, 90% of which are held by whites. African-Americans were most likely to hold customer service or other lower-level roles, but even there, their representation in the industry is below 10%.
Caucasian/Non-Hispanic White
other minorities. African-Americans also said they felt less enabled to take risks, and that the consequences for missteps were likely to have a greater impact on their career progress. They also noted that the low representation of African-Americans in senior positions means they don’t have the same opportunities to prove themselves as their white colleagues.
Latino/Hispanic African-American/Black Asian Indian/Other South Asian American East Asian-American/Pacific Islander
38%
of African-Americans report having an active mentoring relationship
27%
of African-Americans without a mentor say they’re dissatisfied with their insurance careers
60%
Native American or Alaska Native
94%
of African-Americans believe they of African-American insurance have equal access to development professionals would recommend and certification opportunities a career in the industry Source: The Journey of African-American Insurance Professionals, Marsh, September 2018
NO ROOM TO FAIL
HIGHER HURDLES
Sixty percent of the African-American insurance professionals surveyed agreed that they have less leeway to fail; of those who agreed, around half of both women and men felt strongly about it.
Seventy percent of African-Americans surveyed agreed that they face greater obstacles in the insurance industry than other minorities. When asked about their top challenges, respondents mentioned a low level of contact with senior management, a lack of access to informal networks and trouble getting a handle on the language or culture of their organizations. 13%
ARE AFRICAN-AMERICAN PROFESSIONALS ALLOWED FEWER OPPORTUNITIES TO FAIL OR MAKE MISTAKES? Strongly agree
Somewhat agree
WOMEN
48%
52%
MEN
53%
47%
Source: The Journey of African-American Insurance Professionals, Marsh, September 2018
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DO AFRICAN-AMERICANS IN THE INSURANCE INDUSTRY FACE GREATER OBSTACLES THAN OTHER MINORITIES OR UNDER-REPRESENTED GROUPS? Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree
6% 11% 32%
38% Source: The Journey of African-American Insurance Professionals, Marsh, September 2018
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AGENCY PRINCIPALS/ SENIOR MANAGERS
NON-PRINCIPAL AGENCY MANAGERS
CUSTOMER SERVICE REPS
NON-PRINCIPAL PRODUCERS
OTHER
Source: Agency Universe Study, IIABA, 2016
THE KEYS TO PROGRESS
BARRIERS TO ENTRY
For African-Americans to move to the higher levels of the industry, mentorship or sponsorship is seen as crucial. Sixtynine percent of African-American insurance professionals who have a mentor reported being satisfied with their career – but just over a third of those surveyed said they currently have an active mentoring relationship.
So what’s holding African-Americans back from pursuing insurance careers? Many respondents said it’s a lack of connection to the industry – whether via exposure, experience or networks.
WHAT WOULD HELP AFRICAN-AMERICAN EMPLOYEES PROGRESS FROM TRAINEE TO EXECUTIVE LEVELS?
WHAT ARE THE PRIMARY BARRIERS TO ENTRY INTO THE INSURANCE INDUSTRY FOR AFRICAN-AMERICANS?
50% 40%
1 Lack of exposure to the industry
30%
2 Lack of networks
20%
3 Lack of experience (internships,
10%
47%
0%
36%
Sponsorship/mentorship Leadership development
11% On-the-job training
6% Joining professional organizations or clubs
Source: The Journey of African-American Insurance Professionals, Marsh, September 2018
work/study jobs, first jobs)
4 Racial bias 5 Lack of educational preparation 6 Gender bias Source: The Journey of African-American Insurance Professionals, Marsh, September 2018
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UPFRONT
HEAD TO HEAD
What can be done to close the insurance gap? Many of the areas most exposed to natural disasters remain underinsured. How can agents get the message out?
Robert Muir Wood
Martha Bane
Mike Brown
Chief research officer RMS
Managing director, property practice Gallagher
Vice president Golden Bear Insurance
“Education is critical to solving underinsurance in America’s disaster zones – people should have a keen understanding about their risks and be incentivized to take action and responsibility. Currently, flood insurance is only mandated for residences located in ‘flood zones’; however, no one checks if insurance is still in place beyond the first year after the home purchase. As we saw in Houston with Harvey and in Miami with Irma, flood continues to be a problem for US communities. If buyers are educated about their risk and insurance is mandated for the lifetime of a home loan, we could close that gap.”
“An alarming trend in recent natural disaster data is the difference between the estimated costs of these events versus the estimated insured losses and the ever-increasing gap between them. Cost of insurance, lack of understanding of the true potential for loss and the misconception that the federal government may bail out a business in the event of a disaster are some factors leading to underinsurance. Education and technology will help clients better understand their CAT exposures. Data analytics platforms, such as EigenPrism, help clients visualize and analyze their potential for catastrophic loss. Showing a client in real time the impact an event could have on their business is powerful.”
“The single greatest hurdle to overcome is perception – most people vastly underestimate their exposure to catastrophic loss. For example, Temblor.net estimates the probability of major earthquake damage to a San Francisco home over 30 years at 11%. The probability of a car being totaled over that period is less than 3%, and the chance of the home burning down is less than 2%. People readily insure their cars and homes against these hazards, although the chance of those losses is much lower than the earthquake insurance they don’t purchase. Flood insurance is similar – unless it is required, few homeowners buy it, even in flood-prone areas.”
UNPREPARED FOR CATASTROPHES The wildfires that ripped through California this past summer set new records – the Mendocino Complex Fire, which burned more than 450,000 acres, was the largest in the state’s history. For insurance carriers, the fires threw into high relief the importance of having complete insurance coverage on properties, particularly those in high-risk areas. California also has the distinction of being the most earthquake-exposed state in the country. Yet despite the state’s history with tremors, only about one out of every six residences is covered for earthquake damage.
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UPFRONT
NEWS ANALYSIS
The small business cyber gap Cyber insurance might seem like a topic that’s never out of the spotlight, but brokers can do more to help small businesses fully understand their exposures
THE PAST several years have brought cyber attack after cyber attack, often leaving a trail of business downtime, financial loss and even legal action. Add to that the growing global focus on data protection, catalyzed by the Facebook–Cambridge Analytica data scandal and a clampdown in regulation, and insurance brokers have had no shortage of evidence to make their case for the necessity of investing in cyber insurance. But while most large companies are well versed in their cyber exposures by now – and are typically pumping a significant amount of cash into both cybersecurity and insurance
informed, educated and supported around the risks that they face. In September, research from Argo Group revealed that a staggering 100% of brokers cited cyber threats as a medium- or highpriority emerging risk in the next 12 months, followed closely by virtual technologies and the Internet of Things. Similarly, Zurich found in its latest broker survey that cyber cover remains the dominant issue among SME clients – almost two in five brokers reported that they’re providing regular counsel to their smaller clients on the topic. But while cyber does increasingly seem to
“Smaller businesses ... have been forced to spin a lot of plates, complicating the decision-making process” Paul Tombs, Zurich programs – many businesses at the smaller end of the scale are struggling to grapple with the extent of their cyber risk, and are underinsured or even uninsured as a result. For brokers, that presents both an opportunity and a challenge: An underserved client base offers opportunities for further cyber growth, but clients need to be better
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be on the horizon for SMEs, the reality is that with fewer resources, managing the risk can be a difficult juggling act. “Smaller businesses in particular have been forced to spin a lot of plates, complicating the decision-making process and stretching many businesses to the breaking point,” says Paul Tombs, head of SME proposition at Zurich UK.
In addition, business both large and small are growing more reliant on technology and data, which means the stakes are only increasing when it comes to the ramifications of cybersecurity failings. “The impact on their reputation of getting it wrong has increased significantly,” Tombs says. “If something does go wrong, it can now spread a lot quicker than it has ever done in the past.” As a result, brokers need to provide a more holistic service to smaller business clients when it comes to cyber, which should include tailored advice that covers both insurance programs and pre-loss risk mitigation. “I think the important piece here is really understanding what the end client needs as part of this,” Tombs says. “From an overall proposition perspective, you need to [have] the right product, the right pricing structure and make sure it is relevant for those
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THE CYBER THREAT TO SMALL BUSINESSES
44%
Percentage of small businesses that have experienced a cyber attack
1 in 2
Chance that a small or medium-sized enterprise will experience a cyber breach
100%
Number of brokers in the US and UK who cited cyber threats as a medium- or high-priority emerging risk over the next 12 months
smaller SME customers, compared to larger customers. The key message for brokers is to continue to talk to their clients and educate them on the risks that they face now, but also
accounts, leaving small businesses underserved. As a result, cyber is not just the biggest focus for his business, but also where he sees the biggest growth opportunities.
“With SMEs, there is a massive disconnect between what they do and where they buy or don’t buy insurance” Peter Goddard, Daulby Read Insurance Brokers the emerging risks. It’s about risk assessment, advice, understanding SMEs’ needs and putting the right cover in place. That’s the key role of a broker.” Peter Goddard, managing director of Daulby Read Insurance Brokers, says that much of the current attention in the cyber insurance realm is focused on the ‘Hollywood’
“With SMEs, there is a massive disconnect between what they do and where they buy or don’t buy insurance,” he says. “I think where the whole market is at the moment, we’re not doing much to help them with their risks and getting them to understand what those risks are. There’s quite a long way to go in talking to SMEs and getting them to
40%
Insurance brokers who say they’re providing regular counsel to SME clients on cyber risk Sources: US National Small Business Association, UK National Cyber Security Centre, Argo Group, Zurich
realize it’s a necessary form of insurance.” Cyber, data and technology will undoubtedly remain under the global microscope, so cyber insurance and cybersecurity offerings will continue to top the agenda for businesses of all size. Brokers who can help plug the gap that currently exists for small businesses by offering their clients both education and support are likely to see continued growth in their cyber books. “There are absolutely growth opportunities for brokers,” Tombs says, “and I think that’s because there’s a real demand and a need for the cover from the end-client base.”
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UPFRONT
INTELLIGENCE CORPORATE ACQUIRER
TARGET
PRODUCTS COMMENTS
AIG
Glatfelter Insurance Group
Glatfelter is one of the largest privately owned insurance brokers in the US
AFL Insurance Brokers
Zodiac Insurance Services
Zodiac specializes in professional, entertainment and event insurance
Charles Taylor Adjusting
FGR Group
Loss adjusting firm FGR employs about 385 people in both Chile and Peru, and has a growing presence across Latin America
Hub International
Liberty New Gate Insurance Services
Liberty New Gate is a commercial insurance provider specializing in the agriculture and horticulture sector
Marsh & McLennan Companies
Jardine Lloyd Thompson Group
Marsh & McLennan has reached an agreement to purchase British-owned JLT for £19.15 per share
Worldwide Facilities
Draco Insurance Solutions
Draco is a Boston-based program manager that specializes in the public transportation sector
New partnership addresses lightning risk
Worldwide Facilities has announced a partnership with Petro Guardian to launch Enlightning, an exclusive program that addresses the risk of damage from lightning strikes at oil & gas facilities. Enlightning is a bundled product that offers lightning and static protection through Petro Guardian, along with a physical damage insurance program from Worldwide Facilities. Enlightning is designed to encourage insureds to take steps to protect against lightning and static ignition, which will result in preferential underwriting.
Worldwide Facilities acquires Boston-based MGA
National wholesale insurance broker and managing general agent Worldwide Facilities has announced its fifth acquisition of the year, purchasing the assets of Draco Insurance Solutions, a Boston-based program manager that specializes in the public transportation sector. The deal will expand Worldwide Facilities’ presence in the MGA and transportation market; it comes just weeks after the company announced its intention to acquire Texas-based trucking MGA McClelland & Hine. “The expansion of our transportation and program underwriting capabilities is part of our strategic growth strategy and will contribute to our relevance with our customers,” said Worldwide Facilities CEO Davis Moore.
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Zurich enhances global cyber proposition
Zurich Insurance Group has launched what it claims to be the first cyber policy to include network security monitoring and pre-breach services. Available to the insurer’s customers worldwide, the product includes protection against social engineering, reputational risks and breach of the EU’s General Data Protection Regulation. Such coverages, which were previously only available through endorsements, add to existing coverage for breach costs, business income loss and dependent business income loss. The new policy offers limits of up to $25 million.
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PEOPLE Starr fills construction gap with wrap-up policy
Starr Insurance Companies has announced the launch of Starr CIP Enterprise, a monoline general liability construction wrap-up insurance policy. The product is designed for property owners and contractors who need customized primary and excess general liability coverage for single large construction projects. “Starr CIP Enterprise fills a gap for clients whose existing primary and excess liability coverages often don’t align, leaving potential liability exposures,” said Andy Robinson, SVP of primary and excess construction at Starr.
Sompo International adds global risk control services
Sompo International has announced the launch of a global risk control services function that includes experts in industrial hygiene, ergonomics, fire protection and product liability, as well as in the transportation, environmental services, real estate, hospitality, construction, manufacturing and financial services sectors. “By building a team of specialized risk-control professionals with in-depth knowledge of the risk exposures specific to our clients’ operations, we can deliver innovative and consultative risk-control services,” said Sompo International VP Victor Sordillo.
NutraRisk taps into growing cannabis space
Life sciences insurer NutraRisk has expanded its offerings with a new cannabis program that will provide coverage for both medicinal and recreational operations. Coverage options include general and product liability up to $2 million and excess liability up to $5 million, as well as a crime option. “There are huge opportunities for retail insurance agents to increase their presence in this untapped and growing market,” said Morgan Moore, life science practice leader at NutraRisk. “NutraRisk continues to partner with the innovative insurance carriers who are willing to explore cannabis coverages.”
NAME
LEAVING
JOINING
NEW POSITION
Tim Barziza
N/A
Chubb
Head of North America property claims
Julie Boucher
N/A
Marsh Captive Solutions
Islands practice leader
Collette ‘Coco’ Champagne
N/A
Hagerty
Chief operating officer
Andrew Dolphin
N/A
Hiscox
Chief operating officer, Hiscox Re & ILS
Julia Moretti
JLT Reinsurance Brokers
AFL Insurance Brokers
Director of casualty
Delaney O’Brien
N/A
Topa Insurance Group
Director of marketing and communications
Mary Parsons
N/A
Chubb
Executive vice president
Joshua Reynolds
QEO Insurance Group
Midlands Management Corporation
Senior transportation underwriter
Chris Varin
N/A
Marsh Captive Solutions
US practice leader
Chubb taps company vet for EVP role
Chubb has named Mary Parsons as executive vice president for its North America Personal Risk Services division. Parsons joined Chubb in 1998 as a personal lines underwriter and has held various roles in sales and distribution. In her new role, she will be responsible for achieving profitable growth targets across all regions of the US and leading the North American sales and distribution team. “Mary brings deep sales acumen and a tactical rigor we need to further drive our sales organization forward,” said Ana Robic, COO of North America Personal Risk Services. “Her leadership will be instrumental in helping our agents and brokers to succeed in growing their businesses and spearheading efforts around Chubb’s next phase of growth in North America.”
Hiscox Re & ILS names new COO
Specialist insurer Hiscox has announced the promotion of Andrew Dolphin to chief operating officer for Hiscox Re & ILS. Dolphin joined Hiscox in 2000 and has since progressed from an initial technical role in the group reinsurance sector to leading the Hiscox Re & ILS international teams across London, Paris and Bermuda. He has helped grow business capability in analytics and underwriting and was integral to the development of the company’s underwriting platform, while helping to ensure pricing rigor across multiple lines. “Andrew’s proven track record of success and strong reputation made him a standout candidate for this position,” said Mike Krefta, CEO of Hiscox Re & ILS. “We’re delighted he’s now part of the Hiscox Re & ILS executive team.”
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UPFRONT
WORKERS’ COMP UPDATE NEWS BRIEFS BusinessFirst enters the Indiana workers’ comp market
BusinessFirst Insurance has been approved by the Indiana Department of Insurance to provide workers’ comp insurance in the state. Appointed agents were able to start quoting Indiana business with BusinessFirst for policies with effective dates of October 1. “We’re pleased to begin offering workers’ compensation coverage in Indiana,” said BusinessFirst president Thomas S. Petcoff. “Agents and policyholders can count on tailored loss prevention services, comprehensive claims management, responsive customer service and competitive dividend plans.”
Floridian arrested for $50k workers’ comp fraud
Vanessa Arreguin, the owner of Floridabased V&G Concrete, has been arrested and charged with three felony counts of concealing payroll to avoid workers’ comp premiums and two felony counts of application fraud. Over the course of two years, Arreguin allegedly conducted more than $7.5 million in business, but claimed she made less than $50,000. By doing so, she evaded paying $51,000 in workers’ compensation coverage, according to the Florida Department of Financial Services. If convicted of all charges, Arreguin faces up to 20 years in prison.
Liberty Mutual creates specialized claims team
Liberty Mutual’s National Insurance operation has created a specialized healthcare claims team that will help healthcare companies manage the total cost of their casualty claims, including workers’ comp. The new claims team will connect healthcare companies, as well
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as their agents and brokers, with experts who understand the healthcare industry and know the best ways to manage and mitigate the industry’s unique risks. “Managing casualty claims for healthcare companies through a specialized team produces better outcomes by harnessing expertise and efficiency,” said Jeff Duncan, chief underwriting officer for Liberty Mutual’s National Insurance healthcare practice.
Idaho to see 4% workers’ comp rate decrease in 2019
The Idaho Department of Insurance has approved a 4.2% decrease in workers’ compensation insurance rates, set to go into effect on January 1, 2019. The National Council on Compensation Insurance recommended the rate change proposal on the grounds of declining claims costs. “The change in the 2019 workers’ compensation rates reflects an improvement in our state rating factors, including a slight decline in both the frequency of claims for lost work time and the average cost of those claims,” said Dean Cameron, director of the Idaho Department of Insurance.
MRI operator indicted for multimilliondollar fraud
Sam Solakyan, the operator of multiple MRI facilities across California, has been indicted for allegedly conspiring with others to commit fraud via a kickback scheme in which Solakyan paid physicians to refer workers’ comp patients to his facilities and offered them incentives to recommend more scans than necessary. The indictment alleges that Solakyan submitted more than $284 million worth of claims to workers’ compensation insurers for services performed via this scam. In total, Solakyan allegedly paid more than $8.8 million in bribes and kickbacks to physicians to obtain referrals.
Job boom propels workers’ comp Rising employment levels are giving the segment a healthy bump
The unemployment rate in the US fell to 3.7% in September – its lowest level since 1969, according to the US Department of Labor. Employers added 134,000 jobs, marking a record 96 straight months of gains, and wages were up 2.8% compared to September 2017. This economic progress is good news for workers’ compensation insurers. More people in work equates to more people needing workers’ comp coverage, which means there are plenty of opportunities for agents to clinch new business. “Workers’ compensation has a bright future as an insurance sector on a simple level, since employment levels and compensation levels are rising,” says Steve Menzies, chairman and CEO at Applied Underwriters, a US leader in workers’ compensation. “It’s a necessity, and that will not change in the foreseeable future.” As employment levels rise, agents in the sector have ample opportunities to gain market share, but Menzies cautions them against falling into the trap of selling on price. “Frequently, an agent’s first impulse is to talk price because that’s often the client’s first concern,” he says. “The better gambit, however, is to present meaningful participation in safety outcomes, including possible dividends for good results, care for workers and a strong message for employers to send to their staff members. A creative agent will engage a client on the best level, where entrepreneurial, long-term interests supersede a
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simple, easy monetary gain.” Alongside the opportunities, Menzies notes that obstacles in the workers’ compensation space have been causing headaches for agents and underwriters. These roadblocks range
lems with only sad endings. Finally, regulation is always a challenge. New regulation is trending toward limiting units of exposure artificially and unnecessarily, taking away the ability of business owners to take risks they
“Workers’ compensation has a bright future as an insurance sector … It’s a necessity, and that will not change in the foreseeable future” from societal trends to new regulation and the emergence of complex technologies. “First, we face societal challenges in the form of an aggressive trial bar that preys on social mores that too often assign blame before allocating shared responsibility,” he says. “Then there’s the opioid crisis, which places recovering citizens into another set of health prob-
might be willing to assume for the future of their enterprises.” Strict regulations have also played a part in slowing down the insurance industry’s ability to innovate, Menzies adds. Some industry observers have accused traditional workers’ comp insurers of lagging behind with technology implementation.
However, Menzies argues this is a challenge for the industry as a whole, not just for workers’ comp insurers. He blames regulators who “believe their roles are to cloy processes and limit risk-taking,” as well as corporate leaders who “embrace their tidy corporate security over smart, up-to-date delivery to the consumer.” In contrast, Menzies says Applied Underwriters has “fostered a culture of innovation” from the top down. He likens the firm’s corporate culture and leadership style to being “like a think tank” at times, and like a “small , muscular fighting unit” at others. This flexibility, he says, helps to differentiate his firm from the wider workers’ comp market.
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UPFRONT
TECHNOLOGY UPDATE
Technology gains steam in E&S property The tech opportunities in E&S are endless, but one expert advises companies to proceed with caution
of the use of new technology. The possibilities of parametrics in the E&S property space and beyond are just mind-boggling.” Elsewhere, drone technology is having a big impact on loss adjusting and claims processes. Predictive modeling technology allows insurers to map, model and track their aggregate exposures, while intelligent data capture enables firms to make realistic loss predictions about future catastrophic events. But despite the clear value of these tools, Pippin cautions against becoming too reliant upon technology.
“We must depend on human expertise and use technology to enhance our services”
Technology is transforming the E&S property market. Predictive modeling and enhanced data analytics capabilities are enabling specialty insurers to transfer increasingly complex property risks and to determine losses much more accurately and efficiently than ever before. “The use of technology is really gaining steam in the E&S property market,” says Darrell Pippin, SVP and head of North America E&S property at Swiss Re Corporate Solutions. “So far, technology usage has been
NEWS BRIEFS
fairly rudimentary and focused primarily on the front end of risk selection, but I think that’s going to change with the advent of artificial intelligence.” Swiss Re Corporate Solutions has been investing heavily in tech capabilities for the E&S space. “We’re focusing on data capture and how we use and apply that data,” Pippin says. “For example, we’re using technology to make great strides in the parametric insurance space. The data needed to create a parametric solution is only now being captured because
Travelers invests in drone software company
Travelers has announced a strategic investment in drone software developer Kittyhawk. The Kittyhawk platform features a combination of drone fleet asset management, pre- and post-flight planning, team management, real-time video streaming, and drone application integration services. “Kittyhawk helps us manage the vast amounts of information we gather on inspections so we can help our customers recover from disasters faster than ever before,” said Nick Seminara, Travelers’ EVP of claims services.
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“I think there are lots of positives for technology, but there are also some negatives in that so many people in our industry have become dependent upon technology to tell them what risks are and what losses are going to be,” he says. “Instead of using technology as a tool, we’re using that technology to provide the answer. You still have to depend upon experience and common sense. Unless predictive technology makes a quantum leap to become more pinpoint accurate, I think we must depend on human expertise and use technology to enhance our services. This is still a people industry and a relationship business, and I think it always will be, regardless of the technology we can get.”
LexisNexis inks life-cycle management deal
LexisNexis Risk Solutions has partnered with iMeta Technologies, which specializes in client life-cycle management [CLM], to give its clients access to a CLM platform designed to reduce operating costs, accelerate client onboarding and drive a single view of the customer. “Our customers will now have the opportunity to receive our robust public records data and ID-verification capabilities paired with an integrated platform to help them optimize and meet their KYC requirements,” said LexisNexis VP Daniel Wager.
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www.ibamag.com 17 FSC “XV,” “XV,” “XV,”Stable Stable StableOutlook Outlook Outlook FSC “XV,” Stable Outlook
26/10/2018 3:34:44 AM
UPFRONT
TECHNOLOGY UPDATE Q&A
Laird Rixford CEO INSURANCE TECHNOLOGIES CORPORATION [ITC]
Years in the industry 16 Fast fact According to the latest projections from IHS Markit, more than 33 million autonomous vehicles will be sold globally by 2040
Shifting gears to autonomous vehicles What do autonomous vehicles mean for the insurance industry in the near term? I don’t see autonomous vehicles having a huge impact on the insurance industry in the next 10 to 15 years. While we’re seeing autonomous vehicles being developed, it’s going to take a long time for all cars on the road to actually become fully autonomous. One change impacting the insurance industry is the rise of sensor technology and autonomous features being included in today’s vehicles. These complex tools are very expensive to fix or replace if an accident occurs. As more and more vehicles on the road contain these autonomous tools, the industry will likely see a decrease in road accidents, but we won’t see a longterm impact until the majority of vehicles on the road are autonomous.
What key insurance challenges do you expect to arise in the driverless car era? The greatest challenge with autonomous vehicles is understanding where the liability lies. The insurance industry seems to be looking at autonomous and connected vehicles as a computer problem versus a vehicle problem. Coding errors do happen, and these computer systems are not completely infallible. So, where does the liability lie if an autonomous vehicle crashes due to a programing error? The answer to that question will ultimately impact how an insurance company pays out claims related to autonomous vehicles.
Insurer and insurtech hook-ups the new normal
The rapid growth of insurtech has ushered in a new era of collaboration between tech firms and incumbent insurers, according to Capgemini and Efma’s World Insurtech Report. Almost 96% of traditional insurers said they were open to collaborating with insurtech firms in some way; most favored partnership (78%) or solution as a service [SaaS] approaches (76%). Only 33% said that they were considering acquiring an insurtech firm. Insurers named the ability to the customer experience as the top benefit of partnering with insurtechs.
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Another challenge for driverless cars is that they lack human intuition. A lot of things human drivers take for granted on the road, autonomous cars find really hard to do. For example, a human driver can use visual cues like road signs and nearby trees to determine the track of a snow-covered road, and while humans don’t always get it right, that sort of thing is much harder for a computer system to solve.
You’ve just been at the InsureTech Connect conference in Las Vegas. What is the industry talking about in regard to autonomous cars? The focus at present seems to be less about the autonomy of the vehicle and more around the connectivity of car-to-car communications. Insurers are interested in the data that can be collected by driverless cars and how that information can be used to generate a better understanding of the auto insurance market.
What should brokers be doing to prepare for the driverless car era? Insurance brokers should continue being a trusted advisor to their insureds. A lot of vehicles today already have autonomous features built into them, but that doesn’t mean drivers can relax and get distracted. Brokers should advise their clients about non-distracted driving and best practices in using autonomous driving features. They need to educate themselves about what’s coming in terms of driverless technology while also educating consumers along the way.
Clearsurance joins forces with Coverhound
Clearsurance, which publishes consumer reviews and ratings on insurance companies, has announced a partnership with online P&C comparison platform CoverHound. “Our two companies share a commitment to empowering insurance consumers by offering transparent insurance choices and competitive rates,” said Clearsurance’s Michael Crowe. “By leveraging Clearsurance’s API, CoverHound is positioned to provide consumers with the most data-driven metrics upon which [they] can base their buying decisions.”
Marsh broadens blockchain solution
Marsh is expanding its collaboration with IBM in order to provide clients with wider access to the industry’s first blockchain solution for commercial proof of insurance. The proof of insurance solution will now be accessible to clients through Marsh’s Salesforce platform. “By making proof of insurance accessible digitally and instantaneously for our clients through Salesforce, we are streamlining a key business requirement through easy and secure sharing of proof of insurance,” said Marsh’s Sastry Durvasula.
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PEOPLE
INDUSTRY ICON
ON THE LEADING EDGE Travelers’ Tim Francis has led the company’s cyber team in crafting coverages since the market was still in its early days. He tells Alicja Grzadkowska how cyber insurance has evolved and where it might be headed from here
THE CYBER insurance market is booming – and it has a lot more room to grow. But only a decade ago, cyber was still a fledgling line of business, and insurance leaders were grappling with how to develop products that would protect clients from the workings of cyber criminals. It was during this time that Tim Francis joined Travelers as a second vice president; three years later, in 2008, he took on the role of enterprise cyber lead. Francis began his insurance career at Executive Risk in 1995, where his focus was primarily in the management and professional liability arena, with a heavy emphasis on errors & omissions coverage. “Cyber really developed out of those lines of insurance,” he says. “Since the beginning of my career, cyber has become a product that went from something that somebody might theoretically buy to a major line of business unto itself.” While Travelers had some cyber products in its arsenal before the turn of the millennium, the insurance carrier had a lot of work to do to expand its offerings in this space. It
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was a challenge that Francis and his team faced head-on. “We had a couple of specific industries where we could provide cyber coverage, but we didn’t have a policy form or an underwriting strategy that was wholly encom-
Booming business Fast-forward to 2018, and Travelers’ investment into cyber has paid off. Huge potential remains in this space – Munich Re projects that the market will double by 2020 because of the growing popularity of connected
“There is still work to be done as an industry to educate agents, brokers, and ultimately customers on the value of cyber insurance. We need to let them know that it’s moved far beyond just data breach and privacy scenarios” passing across broader industry groups,” he says. “We developed a team, and I drew upon some relationships with people outside of the organization. That was a big challenge – to develop not only a policy form in a new line of business, but also an underwriting strategy, and getting the right framework in place that would help us fulfill the needs of our customers.”
devices and the concurrent rise in risks they bring. However, the predictions of market growth present both challenges and opportunities for insurers. “Part of that growth is fueled by an everincreasing awareness that our customers have of their cyber exposures, and the value and need for cyber insurance solutions to help them address those exposures,” Francis
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PROFILE Name: Tim Francis Title: Vice president and enterprise cyber lead Company: Travelers Based in: Hartford, Connecticut Years in the industry: 23 Fast fact: Francis is an active member of the Department of Homeland Security’s Cyber Incident Data and Analysis Working Group, which is studying the need for a cyber incident data repository
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PEOPLE
INDUSTRY ICON
says. “The challenge that we have, and one of the parts of my job that I most enjoy, is being able to work with a team to educate customers on their exposures and provide risk management advice on how to avoid them in the first place.” The education piece is becoming increasingly critical as more companies fall victim to hacks, breaches and ransomware. The 2018 Travelers Risk Index reveals that cyber remains the second highest risk concern among businesses overall. One in five businesses has experienced a data breach or a
2000s the impact that cyber events would eventually have on businesses and individuals, there’s no crystal ball to reveal what the market will look like in another decade. “[We need] a healthy dose of understanding of what might be over the horizon, in terms of threats that we might not be aware of or might not even anticipate that, in the next year or two or five, might be impacting our customers,” Francis says. “While cyber insurance solutions change and evolve rapidly, it’s a constant challenge for insurance solutions to adapt at the same pace that cyber vulnerabili-
“While cyber insurance solutions change and evolve rapidly, it’s a constant challenge for insurance solutions to adapt at the same pace that cyber vulnerabilities manifest and affect our customers” cyber attack – double the percentage that reported suffering a cyber incident in 2015. Yet despite the fact that 52% of the 1,200 business leaders Travelers surveyed believe a cyber attack is inevitable, half of respondents indicated that they haven’t purchased cyber insurance. “I was actually floored that only half said they don’t buy, so I think that’s certainly a positive trend,” Francis says. “I think there is still work to be done as an industry to educate agents, brokers and ultimately customers on the value of cyber insurance. We need to let them know that it’s moved far beyond just the data breach and privacy scenarios. Cyber coverage can provide a host of other solutions and services – that’s still low-hanging fruit in terms of helping the industry grow even more.”
An unknowable future Just as it was difficult to foresee in the early
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ties manifest and affect our customers.” Travelers’ strategy involves bringing together key players to ensure that the insurer is prepared for whatever might affect its customers as the threat landscape evolves. “As we think about the value proposition that we bring to customers, it’s not just – and sometimes not even mostly – about the coverage itself,” Francis says. “It’s got to be the right coverage for that customer, but it also has to be matched up with expert claim handling capability, and we’ve got a dedicated claims team that does nothing but manage cyber claims. When there’s a cyber event, we need to deploy experts in cybersecurity to do forensic investigations in terms of what happened – was data compromised; is data being extorted; can we retrieve that data – and there’s a whole industry and network of specialists that we have access to that are critical to providing a solution to our customers.”
TRAVELERS BY THE NUMBERS
1864
Year Travelers was founded by Hartford businessman James G. Batterson to fill a need for accident insurance in the US
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Travelers’ insurance ‘firsts,’ including being the first to offer aircraft liability insurance in 1919 and the first to offer a discount nationally to hybrid vehicle drivers in 2006
5
Countries where Travelers has a presence: the US, Canada, UK, Ireland and Brazil
30,000
Approximate number of Travelers employees
13,500
Number of independent agents and brokers Travelers works with
$29 billion
Travelers’ approximate revenue in 2017
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UPFRONT
OPINION
GOT AN OPINION THAT COUNTS? Email iba@keymedia.com
Past, present and paradox Insurance was an early adopter of technology – and it’s now lagging behind because of it, writes Bill Pieroni MENTION THE insurance industry to a layman – or even an industry insider, for that matter – and the image that springs to mind is usually not one of a pioneer on the cutting edge of technology. To be fair, that reputation isn’t exactly undeserved. The paradox at the heart of the matter is that insurance was one of the first industries to aggressively use technology and now often finds itself lagging behind not in spite of that fact, but because of it. Where some other industries might be able to deploy state-of-the-market tech solutions, insurance enterprises often must navigate the complex process of integrating them into their existing – perhaps decades-old – infrastructure. It’s not surprising that the industry is seen as a tech laggard, open to disruption by nimble insurtech firms. As one of the earliest adopters of computing technology, the insurance industry has matured through three increasingly sophisticated periods. In the 1970s, the goal of ‘data processing’ – as we called it back then – was to support business through cost optimization. The first forays involved using technology as a tool to efficiently execute non-core activities such as billing and printing. In essence, the computer was simply a more sophisticated adding machine or typewriter – but this established the groundwork for development. In the 1980s and ‘90s, the industry continued to marry new technology with legacy processes, but with a more sophisticated understanding of its potential. Computing technology was increasingly incorporated into core areas such as claims
and underwriting. ‘Systems integration’ became the watchword as solutions dealt with managing the transfer and distribution of information within the enterprise. As companies realized they could leverage technology to not only reduce costs but also increase revenue, they began to create new technology-centric processes. At the turn of the millennium, insurance turned to tech-
support legacy capabilities while funding and executing transformational change. Budgets become dominated by maintenance expenses, and skills are geared to last-generation capabilities. Moreover, shareholders often balk at near-term outlays for the potential of longterm benefits. Successful long-term value creators are positioning themselves to deal with these pressures by embracing the new technology era. This Outcome Era includes several characteristics: The merging of operations and technology to develop and deploy fundamentally new operating models beyond simply optimizing revenue and expenses Merging business and technology to create differentiating capabilities to increase strategic flexibility and operating adaptability A focus on positioning the business to most effectively take advantage of opportunities to expand into new products, customer segments, geographies and channels An acute awareness of option value in strategy and tactics, an appreciation of
“The industry must deal with the limitations born of legacy. It’s difficult to simultaneously support legacy capabilities while funding and executing transformational change” nology to deal with changing consumer demands and product imperatives and the emerging internet phenomenon. Are we now in a fourth era? Somewhat. Around 2015, the Outcome Era emerged, with a focus on the integration of operations and technology to create novel business models and enhance positioning. Certain inevitabilities drive these developments. Data is front and center. Customers will demand digital interaction across devices. Change driven by market forces is increasing at an accelerated rate. Technology disruption will continue to occur across the insurance value chain, and established players need to leverage the lessons of the insurtech revolution. In addressing these inevitabilities, the industry must deal with the limitations born of legacy. It’s difficult to simultaneously
value management as a key skill, and the prioritization of outcomes Embracing digitization as the most effective way to achieve and support change Across all of these activities, those who execute the transition into the Outcome Era understand that throwing technology at every problem is not the path to success. By making purposeful decisions aligned with strategic intent, they’re positioning themselves to thrive in the 2020s and beyond. Bill Pieroni is president and CEO of ACORD, the standards-setting body for the global insurance industry. His insurance career has spanned technology, operations and executive roles with leading carriers, brokers and consultants.
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SPECIAL PROMOTIONAL FEATURE
TECHNOLOGY
Tech-savvy agents will move ahead Shaun McNeill of EZLynx tells IBA how agents and brokers can effectively leverage the latest technology to avoid being left behind
EMBRACING TECHNOLOGY is a must for the modern insurance agent. New tech solutions are no longer just being integrated by the most conscientious, forward-thinking agents – even those who prefer the human side of the business or those who have rejected using technology in the past are beginning to recognize its value. “Technology’s role in the modern independent agency has evolved,” explains Shaun McNeill, VP of sales at EZLynx. “There remains a need to support internal workflow and reduce time spent on daily tasks; however, client engagement has become a necessary element for growth. Forwardthinking agents offer a digital expression of their commitment to client success.” That digital expression can manifest itself in many forms, such as interactive website features that offer the ability to obtain quote estimates online; online access to ID cards, certificates of insurance and summary policy information; secure environments for document sharing; and delivery of comparisons, options and information when customers are trying to make decisions. “Most successful agencies were built on quality relationships with customers,” McNeill says. “What’s changed is how an
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agency delivers on their part of the relationship. None of this is new, but multichannel communication is quickly becoming ‘table stakes’ or a minimum requirement. People expect the fastest possible path to the information they need, and providing anything less leaves room for disappointment, frus-
AI technology will even help identify tasks that can be automated and inform the agency how to go about it. “Future versions of AI with natural language processing can also enhance communication and enable technology to understand what a customer needs and
“People expect the fastest possible path to the information they need, and providing anything less leaves room for disappointment, frustration or worse – a void filled by some other insurance distributor” Shaun McNeill, EZLynx tration or worse – a void filled by some other insurance distributor.” There’s a misconception among some agents that embracing technology means spending less time making human connections. In fact, the opposite is true. Modern solutions that automate repeatable tasks actually create time for staff to focus on sales and relationship-building. Next-generation
deliver it in the same event,” McNeill says. “The time will come when customers send a text to their agent asking for an ID card, the agent’s technology platform recognizes this request, determines what car the client is talking about and sends back the information without a CSR’s involvement. This is just one example of the role technology will play in daily operations for the modern agent.”
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Although the majority of agents do use some type of agency management system, the reality is that many of these software solutions simply do not have the level of functionality required to meet the demands of the modern client and the modern insurance industry. Agents should keep in mind that many of these systems were created
when artificial intelligence was more likely to be found in a sci-fi movie than an insurance agent’s laptop. “Historically, agency management systems were designed to keep track of what happened, but ambitious agents are more focused on leveraging technology to determine what will happen next,” McNeill
says. “Which customers are most at risk of leaving? Where do the best cross-selling opportunities exist? Who are the most profitable producers, and what are they doing differently? The vision of your technology partner should be in sync with finding answers to questions like these. Then they should be using the money invested by agents to deliver it. Agents would do well to stop accepting anything less.” Despite the insurance industry’s reputation of being somewhat reluctant to embrace technology, McNeill is certain agents are ready for automation and AI. He points out that no big improvement has ever come easy and that embracing the process and being patient will be key drivers of success. “Programmers will build you something fantastic if you work with them and provide feedback,” he says. “If your technology provider offers beta-test opportunities and you have a vision of the future outcomes and benefits, participation is the way to accelerate that desired outcome. Help your partner build something everyone can benefit from using.” Agents who don’t open their minds to cutting-edge technology solutions face the very real risk of being left behind, and early adopters have an opportunity to stand out from the crowd. McNeill speaks to many agents who have been wowed by a new application or API platform, some of whom wind up investing heavily to bring their vision to reality. “Technology is not a core skill set for most insurance professionals,” he says. “Agency principals and staff are amazing at the insurance business. Skilled programmers or a small army of IT professionals will build you something, but it is never cheap or easy. My recommendation: Don’t get caught up in delivering services outside of your core competency. Partner with a tech provider and share specific goals. Otherwise, you’ll be at risk for unwise spending.”
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26/10/2018 4:36:02 AM
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SPECIAL REPORT
HALL OF FAME 2018
f o L L A H
E M A F 2018
IBA showcases a new class of Hall of Fame inductees whose distinguished careers have helped shape the insurance industry into what it is today
FINDING A rewarding and fulfilling lifelong career in a single industry might seem impossible these days, but the 29 insurance heavyweights who comprise IBA’s 2018 Hall of Fame are a testament to the fact that having a career you love can lead to decades of success – and fun. This year’s Hall of Fame inductees join last year’s inaugural class of industry titans and pioneers who have paved the way for thousands
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of others to find success in the insurance industry. Without their hard work and vision, the industry would not be what it is today. While only a select few professionals have had the pleasure of working by their sides, many have felt their contributions to the broader industry. These insurance vets are the ones many up-and-comers in the industry aspire to be. On the following pages, they share their impressive journeys through the world of insurance.
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HALL OF FAME 2018 INDEX NAME
COMPANY
PAGE
Abram, Ron
Abram Interstate Insurance Services
43
Alfieri, John
Chubb
30
Allen, Kenn
AmeriTrust Group Inc.
29
Beale, Inga
Lloyd's of London
32
Bushong, Charles
Coastal Insurance Underwriters Inc.
37
Carragher, Tracey
Breckenridge Insurance Group
40
Casey, William
Arch Insurance Group
43
Cavaness, Joel
Risk Placement Services Inc.
34
Donovan, Dan
Beecher Carlson
37
Ellis, R. Parke
Gillis, Ellis & Baker
36
Griffin, Cathy
Brown & Riding
38
Harris, Andrew
Liberty Insurance Associates
40
Henderson, Jim
AssuredPartners Inc.
30
Jennings, John
JenCap Holdings
32
Kelly, Shaun
Liberty Mutual
33
Landrum, Charles
Specialty Insurance Group
30
Lott, Richard
Insurance Office of America
36
Lynch, Thomas
Plastridge Insurance Agency
43
Pedersen, Tim
Brown & Riding
37
Rubin, Jeffrey
Hub International Northeast
42
Shepherd, Dave
Shepherd Insurance
42
Taffae, Peter
Executive Perils
36
Treanor, Christopher
Specialty Program Group
34
Upfield, Scott
Insurance Technologies Corporation
39
Wanglin, Ronald
Bolton & Company
38
Ware, Roger
Genesee
40
Wilhelm, Mark
Safety National
32
Witcher, Dave
Smart Choice
42
Zaccaria, Ed
Chubb
38
KENN R. ALLEN President and CEO AMERITRUST GROUP
The leader of AmeriTrust Group’s executive management team, president and CEO Kenn Allen heads a company that he has served for more than 30 years. Prior to his appointment to the top job, Allen served as an SVP for AmeriTrust and president of its subsidiary, Meadowbrook Insurance Agencies. Over the course of his three decades with AmeriTrust, Allen has successfully assimilated seven property & casualty benefit agency acquisitions, developed several affinity property & casualty groups and centralized commercial marketing. He also established multiple benchmarking metrics to drive profit accountability and structured producers as freestanding profit centers. In support of those efforts, he created producer equity to help producers perpetuate their books of business and to use as a recruitment tool for new producers. As president of Meadowbrook Insurance Agencies, Allen managed seven agency profit centers while helping to develop future effective leaders. Allen began his career with Safeco Insurance Company, performing safety engineering services throughout the Midwest. He obtained a second degree in occupational health and industrial hygiene to further his safety engineering effectiveness. He also worked for Republic Hogg Robinson, where he was one of three senior vice presidents responsible for overseeing one of America’s largest third-party administrators for workers’ compensation, group benefits and agency operations. In addition to his corporate responsibilities, Allen is a trustee of the Michigan Opera and current chair of the insurance and legal committee for Walnut Creek Country Club in South Lyon, Michigan.
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SPECIAL REPORT
HALL OF FAME 2018 JIM HENDERSON Chairman and CEO ASSUREDPARTNERS
When he founded AssuredPartners, one of the nation’s top insurance brokerage firms, Jim Henderson designed it to be a partner of choice for insurance agency perpetuation. Since its founding in 2011, AssuredPartners has grown to more than $1 billion in annualized revenue and continues to be one of the fastest-growing insurance brokerage firms in the US, with offices in 30 states and in London. Henderson began his career as a CPA with Ernst & Ernst before moving on to Ormond Reinsurance Group, where he served as CFO and executive vice president for 10 years. He then spent 25 years with Brown & Brown, where he held roles that included EVP, board member, president, and vice chairman and COO, until his retirement in 2010. Throughout his career, Henderson has served on various public, private and nonprofit boards, including as chairman of Embry-Riddle Aeronautical University, Ironshore Insurance Company, Citizens Property Corporation, Ronald McDonald House, the Florida Hurricane Catastrophe Fund and Stetson University Business School. He is also a 15-year member of the CIAB board and has been a CPCU member since 1991.
JOHN J. ALFIERI Executive vice president, field operations, North America major accounts CHUBB
At Chubb, John Alfieri oversees field operations for the company’s major accounts businesses and leads the development and implementation of strategies designed to deliver Chubb’s solutions to large domestic and multinational companies. He also oversees Chubb’s network of client executives and the large account distribution management team, working closely with the broader North America field operations team. Alfieri began his career with Chubb in 2004 and has more than 37 years of experience in the risk management and insurance industry, predominantly focused in the large-account and multinational segment. Prior to his current role, Alfieri served as Chubb’s regional executive officer for the New York region and held various leadership roles at ACE prior to its merger with Chubb. He has also held senior leadership positions at Willis, Munich-American Risk Partners, American Reinsurance Company, Heddington Insurance Company, AIG and Texaco.
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CHARLES LANDRUM Vice president and chief underwriting officer SPECIALTY INSURANCE GROUP
Charles Landrum started his insurance career in 1975 as an account executive with Frank B. Hall. In 1986, he moved to Allied International Holdings, where he became COO and claims manager of Allied unit T.H.E. Insurance Company. He was eventually promoted to president of Allied and T.H.E. Insurance Company. At the time, T.H.E. Insurance Company was one of the largest insurers of mobile amusement and amusement park risks in the US. Landrum participated in the development of new products and services focused on this very specialized industry. Today, as vice president and CUO at Specialty Insurance Group, a subsidiary of Everest Insurance, Landrum’s responsibilities include strategic and management oversight for the underwriting unit, program design and development, and serving on Specialty Insurance Group’s executive committee, underwriting committee and senior staff.
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SPECIAL REPORT
HALL OF FAME 2018 INGA BEALE
JOHN F. JENNINGS
CEO
CEO
LLOYD’S OF LONDON
JENCAP HOLDINGS
Celebrated as the first female head of Lloyd’s of London, Inga Beale will step down from the top job at Lloyd’s after nearly five years. During her tenure, Beale has strengthened the market’s reputation as one of the most respected and trusted insurance brands in the world. She also founded the Inclusion@Lloyd’s initiative to promote diversity and inclusion across the global insurance sector. Before her appointment to CEO of Lloyd’s, Beale was group chief executive of Canopius, which has its principal operations at Lloyd’s. Prior to that, she spent four years with Zurich and was also group CEO of Swiss reinsurer Coverium, where she led a major turnaround of the business before it was acquired in 2007. Beale started her career as a reinsurance underwriter with Prudential before spending 14 years in a variety of international roles for GE Insurance Solutions. Outside of her work at Lloyd’s, Beale is a member of the UK government’s Financial Services Trade and Investment Board, the UK Department for Education’s Business Advisory Group, the London Mayor’s Business Advisory Board, the Geneva Association Board and the UK’s Public Service Leadership Taskforce.
John Jennings has more than 30 years of insurance industry experience, the past 25 of which have been focused exclusively on the wholesale distribution space. Jennings is one of the founders and current CEO of JenCap Holdings, a national wholesale firm that has, in the past two years, grown to more than $700 million in premium. Since 2016, JenCap has acquired Wholesale Trading Insurance Service, Trivedi Capacity, M.J. Kelly, NIF Group, Special Risks and Genesee. Prior to starting JenCap, Jennings helped start Wholesale Trading Co-Op, a unique wholesale model designed to bring a closer, more transparent relationship between retailer and wholesaler. He previously served as president of Crump Insurance Services, where he led the successful integration of BISYS Insurance Services. He began his wholesale career in 1993 as a casualty broker at Tri-City Brokerage. Jennings is an active supporter of insurance associations and various charities; JenCap is a major contributor to the Spencer Educational Foundation.
MARK WILHELM CEO SAFETY NATIONAL
In 1977, Mark Wilhelm joined Safety National at a time when the company had only around 15 employees and $11 million in assets. Today, Safety National is one of the leading specialty insurance and reinsurance providers with over $8 billion in assets and nearly 500 full-time employees. Wilhelm led Safety National’s underwriting operations from 1985 until he was named CEO. Throughout Safety National’s growth, Wilhelm never lost sight of the importance of preserving the company’s culture. He undertook an initiative to formalize the company’s five core values: relationships, integrity, stability, balance and teamwork. Under his direction, Safety National also instituted a core values ambassadors program so that new hires can learn about the company history and culture from existing employees. In addition, Wilhelm has worked hard to preserve Safety National’s relationshipbased business style. He championed a company-wide approach that is rooted in responsiveness, consistency, expertise and service. Wilhelm has also ensured that he and the rest of the company’s executive team remain accessible to meet with customers when called upon. Outside of Safety National, Wilhelm is a current member and past president of the National Association of Safety and Claims Organizations and serves on the advisory board of Kids’ Chance of America. He has also authored numerous articles and presented regularly at industry conferences on the topics of self-insurance, workers’ compensation and insurance industry trends.
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26/10/2018 3:37:50 AM
SHAUN E. KELLY President, Global Risk Solutions distribution LIBERTY MUTUAL
Shaun Kelly is president of distribution for Liberty Mutual’s Global Risk Solutions, responsible for overseeing the global marketing and delivery of its diverse commercial lines, including primary and E&S property & casualty coverage, as well as surety products. Prior to joining Liberty Mutual, Kelly served as president of Ironshore, as well as president and CEO of Ironshore’s US operations, coordinating the delivery of specialty insurance products and services across 21 offices. Prior to joining Ironshore in 2008, Kelly was president and COO of Lexington Insurance Company, a division of AIG, where he began his insurance career in 1986. At AIG, Kelly held a number of senior management positions, including vice president of AIG Property Casualty Group and CEO of Risk Specialist Companies, the largest surplus lines broker of specialty insurance products in the US, which provides business on behalf of Lexington and other specialty carriers. Outside of the office, Kelly is a member of the Big Brothers Big Sisters of Massachusetts Bay Overseers and chairs the board of the Insurance Industry Charitable Foundation’s Boston chapter.
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SPECIAL REPORT
HALL OF FAME 2018
CHRISTOPHER M. TREANOR President, programs and specialties/president and CEO HUB INTERNATIONAL/SPECIALTY PROGRAM GROUP
Chris Treanor is the president and CEO of Specialty Program Group, where he’s responsible for the development and execution of a strategy to acquire and grow best-in-class MGAs/program managers and wholesale brokers. Over the past two years, his team has made nine acquisitions, representing more than $500 million in annual premium volume. Treanor is also president of programs and specialties and a member of the executive management team at Hub International, responsible for working with Hub’s leadership and offices to create specialty solutions for customers. Prior to joining Hub in 2015, Treanor was president of Preferred Concepts, a nationwide program manager. He joined Preferred in 2010 when the company acquired Mercator Risk Services, a national wholesale brokerage firm that Treanor co-founded in 2006. Before founding Mercator, Treanor spent 20-plus years at Marsh, where he ultimately served as CEO of the firm’s global placement operations. In addition, he was a member of Marsh’s board of directors and management committee. Treanor has an honorary doctorate from Centenary University, where he previously served as a trustee and vice chairman of the board. He currently serves as chairman of the board of trustees of Freedom House, a substance abuse halfway house facility with operations throughout New Jersey.
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JOEL D. CAVANESS President RISK PLACEMENT SERVICES
Joel Cavaness is the co-founder of Risk Placement Services [RPS] and has served as its president since 1997. He has been instrumental in driving RPS’ rapid growth to become one of the largest US wholesale and specialty brokers, managing general agents and program managers, currently employing more than 3,000 professionals across the nation. Cavaness began his insurance career as a casualty underwriter for standard and E&S carriers. In 1986, he joined Gallagher in St. Louis, beginning as a marketing representative and working his way up to area vice president by 1990, a position he held until relocating to Gallagher’s home office outside Chicago in 1996 to lead International Special Risk Services. As the leader of RPS, Cavaness is an active champion of corporate social responsibility, supporting and promoting the team’s involvement in a variety of fundraisers and volunteer initiatives, and incorporating community involvement as part of the regular course of business. Cavaness also serves as vice president of the WSIA board of directors, having been on the board since 2010. He will assume the role of WSIA president in February 2019.
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26/10/2018 3:37:59 AM
The company you keep says a lot. On behalf of the 3,000 employees of RPS, congratulations to:
We’re proud to work beside you.
Risk Placement Services, Inc. Knowledge. Relationships. Trust and Confidence.
Visit us at RPSins.com 28-43_Hall of Fame 2018-SUBBED.indd 35
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SPECIAL REPORT
HALL OF FAME 2018 RICHARD LOTT Regional president INSURANCE OFFICE OF AMERICA
Strong, steady and humble are the traits that characterize Richard Lott’s leadership style. His kindness, humor and unwavering dedication to serving his clients and those around him have made Lott a pillar of the insurance industry. When he started in the industry in 1982, he focused on the life and health side before transitioning into property & casualty. Over the years, Lott has been a champion for those new to the business, serving as a strong advocate for their growth and success. Lott has a passion and proficiency for bringing young people into the business, which proved valuable when he started with Insurance Office of America, opening its office in Birmingham, Alabama. As the office grew, Lott’s team created a process for the entertainment industry to allow third-party production companies to secure insurance through the network for television shows, which has since been replicated throughout the industry. Lott progressed to the IOA board of directors in 2010 and received the Partner of the Year Award the same year. He went on to become a regional president in 2013. Outside of IOA, he has been involved with several industry associations, nonprofits and charitable organizations, including serving as president of the board for the Birmingham Independent Insurance Agents Association.
PETER TAFFAE Managing director EXECUTIVE PERILS
When the Tylenol crisis occurred in 1982, just six weeks after Peter Taffae started his career in Chubb’s executive protection department, Taffae and his colleagues jumped into action and introduced a products protection policy. Since then, Taffae has spent his career solving problems with innovative D&O, E&O and cyber EPL products. In 1997, Taffae co-wrote the industry’s initial first- and third-party cyber policy; during the height of the 2008 subprime crisis, Taffae’s policy, Super Continuity, allowed Fortune 1000 companies to buy an option that allowed a full bindable back-up proposal in case their primary D&O carrier fell to an A- rating. He also wrote PurX, an excess policy that he uses with more than 15 carriers on multi-layered programs, thus providing the exact same wording on every layer. Four years ago, Taffae recognized a need for the franchise industry to have its own specific language, and today, more than 250 franchisors are insured through his FranchisePerils division at Executive Perils. Most recently, Taffae partnered with a carrier to introduce RE360 for the real estate industry, which includes D&O, EPL, tenant discrimination and 14 real-estate-related errors & omissions coverage options. “Every idea was a solution to a problem,” Taffae says of his impressive track record of creating innovative insurance products. “For me, it is fun and allows me to be creative. I respect the coverage and the value it brings when correctly finessed.”
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R. PARKE ELLIS Chairman GILLIS, ELLIS & BAKER
Thirty-seven years ago, Parke Ellis joined Gillis, Ellis & Baker as a producer, focusing on the entire spectrum of insurance and risk management for his clients, with a specialty in policy audit. Today, Ellis regularly shares his time with area businesses and nonprofits, educating them on various risk management topics to improve their overall business plan and risk management program. In June 2016, Ellis was the 27th recipient of the Independent Insurance Agents and Brokers of Louisiana’s highest honor, the Lou Daniel Award. Ellis served as IIABL’s president in 2013–2014; during his time on the board, one of IIABL’s primary strategic goals was to bring new talent into Louisiana’s independent agencies. As part of this effort, Ellis led the charge to establish the Louisiana Insurance Academy [LIA], a program focused on kick-starting careers in insurance. Ellis worked with Delgado Community College to recruit prospects into the program, and he developed the curriculum, recruited instructors, taught classes, managed the program and counseled students. To date, the LIA has graduated 35 professionals into independent agencies and brokerages in Louisiana.
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26/10/2018 3:38:09 AM
TIM PEDERSEN SR. Vice chairman BROWN & RIDING
DAN DONOVAN Executive chairman BEECHER CARLSON
With more than 30 years of largeaccount broker and underwriting experience, Dan Donovan serves as Beecher Carlson’s executive chairman, responsible for developing strategic plans and setting the direction for the company. He has also played a crucial role in growing Beecher Carlson to a $125 million-plus company. Donovan took over as CEO at Beecher Carlson after just six years with the company; following its acquisition by Brown & Brown, he moved into the executive chairman position. Before joining Beecher Carlson, Donovan served in a senior leadership role at Hilb Rogal & Hobbs Company [HRH], which has since been acquired by Willis Towers Watson. At HRH, he was responsible for the $100 million operations of the former Hobbs Group, serving as global property manager and operations manager for the Southeast region.
Tim Pedersen has always shown a nonstop drive for business, a firm sense of initiative, and an ability to find opportunities and maximize them to their full potential. Pedersen started his insurance career in 1974 as an underwriter and later became a casualty broker before co-founding Travis-Pedersen and Associates in 1983. In 1998, Travis-Pedersen expanded by opening a sister company, Alaska General Insurance Agency. Pedersen was a driving force behind the success of both companies before merging with Brown & Riding in 2013. Since then, he has been an important part of building the B&R organization, initially as a managing director and now as vice chairman of the board. Pedersen assists B&R with critical board responsibilities, including operations, compliance and organizational structure. The company continues to remain completely independent, a business model Pedersen advocates. “I’ve been working with Brown & Riding for the past five-plus years and am excited to continue supporting our owner-operated model, professionalism and growth,” he says. “Being fortunate to have had strong mentors who came before, there are things I’ve learned in my relationships that I want to pass on. I have the opportunity to help our employees and shareholders, and I look forward to continuing to help the board and employees handle issues that are important to the firm so we remain a strong, effective and growing company over the long term.” Outside of B&R, Pedersen is a former director of the Illinois Surplus Lines Association and former president of NAPSLO.
CHARLES R. BUSHONG President and CEO COASTAL INSURANCE UNDERWRITERS
Charles Bushong founded Coastal Insurance Underwriters in 2007 with a mission to provide exclusive community association insurance products underwritten and distributed online to a select group of retail agents throughout the US. Coastal has grown to become one of the largest MGUs in the United States focused on community association products, writing more than 26,000 policies. Bushong started his insurance career in 1974 at Nationwide Insurance Company and was promoted through the ranks to become regional sales manager in Florida. He left in 1989 after earning many of the company’s highest corporate management awards. At the start of his career, Bushong made the decision to specialize in the condominium and homeowner association niche, and over the years, he has become a veritable authority on the coverage requirements and nuances of these associations. Between 1989 and 2000, he served as a vice president of a leading commercial insurance broker, where he ranked among the top 10 producers for nine years. In 2001, he left to start his own retail agency, Bushong Insurance Associates, which he sold to Gallagher in 2011.
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SPECIAL REPORT
HALL OF FAME 2018 CATHY GRIFFIN Broker, VP and environmental practice group co-leader BROWN & RIDING
An environmental insurance specialist and true pioneer in the sector, Cathy Griffin has been involved in environmental insurance since its beginnings in the 1980s. “I initially started working in environmental due to genuine interest, but it was also good timing,” she says. “I am of the generation that started Earth Day, and we all knew about Love Canal, Times Beach and other man-made disasters. The government had passed the Clean Air Act, the Clean Water Act and the Resource Conservation and Recovery Act, which is still the principal federal law in the United States governing the disposal of solid waste and hazardous waste. The government also created Superfund in 1980, so it was our generation that was becoming more conscientious about the environment; of what was being released into the air, water and ground; and the effects of pollutants and contaminants on people and the earth’s natural resources.” Griffin became an environmental insurance broker in 1985 and has stayed at the forefront of the sector, developing many programs for environmental exposures, including a combined malpractice/pollution program for doctors who were reviewing the indoor air quality of industrial plants to determine why people were becoming sick. She was also a leader in the development of mold insurance in the early 2000s when large multimilliondollar losses were being paid and few companies were willing to write the exposure.
RONALD C. WANGLIN Chairman BOLTON & COMPANY
For more than 30 years, Ron Wanglin has demonstrated an unwavering commitment to serving the needs of educational institutions and has helped Bolton & Company develop a deep understanding of the unique culture that makes schools, colleges and universities special. As chairman of Bolton’s board, Wanglin is responsible for setting and overseeing the company’s strategic growth and has been instrumental in the vision, development and success of Bolton’s education practice group. Beyond education, Wanglin has specialized in insuring the aviation, healthcare, manufacturing, real estate and technology industries for more than three decades. He has served on agency advisory councils for ACE, AIG, Berkshire Hathaway and others. He has also been a frequent speaker at a number of conferences and on a variety of insurance topics, including enterprise risk management, intellectual property insurance, employee benefits and retirement plans, and the Affordable Care Act. Wanglin is a past president of the Independent Insurance Agents Association in Santa Monica, past chairman of the Pacific Network Group and has served on the boards of Assurex Global and the National Alliance Research Academy. Active in a variety of civic activities, Wanglin is a trustee emeritus of The Buckley School, past chairman of the Los Angeles West District of the American Red Cross and past president of the Westwood Village Rotary Club.
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ED ZACCARIA Executive vice president and chief underwriting officer, insurance, North America CHUBB
Ed Zaccaria has been with Chubb since 2014 and is responsible for overall underwriting practices, portfolio management, predictive and data analytics, and the management of the corporate underwriting staff for Chubb’s North American insurance operations. Previously, Zaccaria served as president of ACE USA regional operations, responsible for national and local distribution strategies, as well as expanding ACE USA’s product and marketing presence throughout the country. He also oversaw ACE USA’s regional executive management team and global client executive practice. With more than 40 years of diverse experience in P&C insurance, Zaccaria served in several senior management roles at ACE, including leading ACE USA’s Global Underwriting Group, where he was responsible for directing overall operations and strategy for a diverse group of products, including global property, energy and foreign casualty. He also served as CFO for a major operating division within ACE USA and held a variety of other corporate strategy and financial management roles. Prior to his tenure with ACE, Zaccaria was a CPA at Arthur Andersen & Co.
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26/10/2018 3:38:23 AM
SCOTT UPFIELD Co-founder and chief operating officer INSURANCE TECHNOLOGIES CORPORATION
Prior to starting Insurance Technologies Corporation [ITC] in 1983, Scott Upfield worked at American Communication Enterprises in Dallas, where he was involved in engineering a digital phone switch. Today, he serves as ITC’s COO; since 1988, Upfield has grown the company from one product to multiple automation products and services for the insurance industry. He is responsible for managing the production and development of TurboRater, ITC’s comparative rating software. In addition, he monitors other areas of the company, including marketing and sales, for opportunities to improve operations and efficiency. In addition to his duties at ITC, Upfield serves on the board of directors for Temtex Industries and the Dallas chapter of the Young Entrepreneurs’ Organization.
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SPECIAL REPORT
HALL OF FAME 2018 ANDREW C. HARRIS President and CEO LIBERTY INSURANCE ASSOCIATES
ROGER WARE JR. President and CEO GENESEE
Since 1998, Roger Ware has served as president and CEO of Genesee. He began his career as a commercial underwriter at Fireman’s Fund in 1982 and has since worked with several insurance carriers, focusing on large national casualty products. Prior to joining Genesee, he was regional VP of Crum & Forster’s Atlanta region. When Ware became CEO of Genesee, the company was a small MGA focused on the state of Georgia and primarily writing transportation risks. Today, Genesee is a national company with MGA and wholesale offerings for transportation, garage, general liability and construction, professional liability, specialty property, and program products. Under Ware’s leadership, Genesee has been named a Five-Star MGA by IBA for three consecutive years. In 2018, Genesee became part of JenCap Holdings, placing the company among the top brokers in the US. Outside of Genesee, Ware served as president of AAMGA in 2015 and is currently a member of the board of trustees of West Chester University.
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Andrew C. Harris began his insurance career in 1976 working for Liberty Mutual Insurance Company in commercial sales. For more than 35 years, Harris has served as president and then CEO of Liberty Insurance Associates. As the majority partner, Harris has directed its growth from a small personal lines agency to a multi-lines agency with over 40 employees. He is also an equity partner in Agency Network Exchange (ANE), an independent agency network. Harris has been active in Professional Insurance Agents (PIA), serving as the president of the national association of PIA from 2013-2014. Earlier in his career, he was awarded both the Agent of the Year and the Distinguished Insurance Service Award by PIA-NJ, and served as president of PIA-NJ from 1998-1999. From 2003 to 2008, he served as the president of Proformance Insurance Company. Harris also dedicates himself to improving his local community, having served on the board of directors of Jersey Coast chapter of the American Red Cross, the finance committee of CentraState Medical Center, Trustee Emeritus of the Brookdale Community College Foundation, and the board of the FBI Citizens Academy’s Newark division.
TRACEY A. CARRAGHER Founder and CEO BRECKENRIDGE INSURANCE GROUP
As the head of Breckenridge Insurance Group, Tracey Carragher sets a powerful vision for constant service improvement in every aspect of insurance distribution. If there is an opportunity to enhance the experience and outcome for a client, she will inspire, motivate and encourage her team to find it, elevate it and set it forward to make sure Breckenridge continues to realize new opportunities. Carragher began her career at General Re and McKinsey, and she went on to hold top jobs at Frank B. Hall and Alexander & Alexander before becoming part of the senior management team reporting to the president at Aon. She was heavily involved in steering the strategy of Aon’s E&S businesses, spanning multiple wholesale, MGU, alternative risk and consulting practices globally. When Aon sold its investment in Cambridge Integrated Services Group, Carragher agreed to stay as CEO, transforming the company into the largest third-party administrator in the country. Her experience across the entire insurance transaction chain led her to discover a need for a better, more efficient customer-centric operation, and she responded by launching Breckenridge in 2009. In recognition of her many accomplishments, particularly as a champion of diversity, Carragher was named the 2015 Insurance Woman of the Year by the Association of Professional Insurance Women. She recently presented at the Insurance Business America Women in Insurance Summit in Chicago. She also supports many nonprofits, including the Station Foundation for veterans and several children’s organizations and pet rescue services.
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4/12/2018 1:13:27 AM
Innovation, Expertise, Collaboration.
To learn more about our products, please visit: archinsurance.com
ARCH INSURANCE GROUP | ONE LIBERTY PLAZA, NEW YORK, NY 10006 | ARCHINSURANCE.COM Š 2018 Arch Insurance Group. Insurance coverage is underwritten by a member company of Arch Insurance Group. This is only a brief description of the insurance coverage(s) available under the policy. The policy contains reductions, limiwww.ibamag.com in all jurisdictions. tations, exclusions and termination provisions. Full details of the coverage are contained in the policy. If there are any conflicts between this document and the policy, the policy shall govern. Not all coverages are available
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SPECIAL REPORT
HALL OF FAME 2018 DOUG WITCHER Founder and CEO SMART CHOICE
Doug Witcher is the founder and CEO of Smart Choice, the nation’s fastestgrowing agency network. Witcher was something of a pioneer in the industry with regard to agency networks – Smart Choice was one of the first viable solutions for independent agents seeking access to top-rated carriers and other business solutions. Witcher began his career in 1979 when he opened Douglas S. Witcher & Associates in High Point, North Carolina. In 1991, he co-founded Southeastern Agency Group and began to formulate the idea for Smart Choice. Recognizing the difficulties that independent agents face to grow and remain profitable while maintaining high volume commitments to multiple carriers, Witcher sought to find a solution that benefited all parties involved. As a result, he established Smart Choice in 1994. Today, the network boasts 6,750 agency partners and more than 100 carrier partners, representing over $5 billion in annual collective premium. Over the course of his career, Witcher has been a dedicated philanthropist and an involved community member, serving on a long list of charitable boards, including chairing the 2013 High Point United Way Campaign and serving on boards of the High Point Regional Hospital Foundation, Hospice of the Piedmont and Family Services of the Piedmont. He currently serves on the board of trustees for High Point University.
JEFFREY L. RUBIN
Chairman and CEO
HUB INTERNATIONAL NORTHEAST
SHEPHERD INSURANCE
Jeff Rubin started his career in 1983 at Light & Rubin Inc., where he served as vice president. In 2001, Rubin was working for Kaye Insurance Associates when it was acquired by Hub, and he now serves as SVP and branch manager of Hub International Northeast’s Connecticut and Westchester operations, where he specializes in insuring financial services, technology, real estate, building service and security contractors, hospitality, and general business. Rubin also serves on Hub’s M&A team, helping to close on numerous acquisitions. Over the course of his career, Rubin has been extremely active in Hub’s rotational training program, leading seminars and serving as a mentor to many throughout the organization. He is also a frequent speaker at industry events and seminars. Outside of Hub, Rubin sits on the board of the Insurance Industry Charitable Foundation and serves as chair of the grants committee for its New York chapter, as well as on the dinner and executive committee. In addition, he previously served as co-chair for the general insurance division of the UJA-Federation of NY for more than 15 years, where he helped start the young insurance division.
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DAVE SHEPHERD
Senior vice president and branch manager
Dave Shepherd founded Shepherd Insurance from his basement in 1977. After five years, Shepherd Insurance was contracted by Erie Insurance to offer auto, home and small business insurance options, in addition to its ongoing life insurance business. Over time, Shepherd established relationships with different carriers, which allowed the company to expand across different markets. Nearly four decades later, Shepherd Insurance has grown to include more than 300 employees and 20 office locations serving four unique lines of business: commercial, personal, employee benefits and financial services. In Shepherd’s time as chairman and CEO, Shepherd Insurance has been named Agency of the Year by Trusted Choice three times, in addition to being included five times among Inc. 5000’s FastestGrowing Private Companies in America and being named an Elite Agency and Top Insurance Workplace by Insurance Business America.
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26/10/2018 3:38:46 AM
RON ABRAM
THOMAS E. LYNCH
President and CEO
President
ABRAM INTERSTATE INSURANCE SERVICES
PLASTRIDGE INSURANCE AGENCY
A native Californian and entrepreneur, Ron Abram’s early years encompassed everything from selling Christmas cards and trees to working at a gas station. Two months after declaring he wasn’t interested in a job in insurance, he began his 39-year career in the business. Starting as an entry-level employee at a specialty carrier, Abram advanced from agency sales rep to president and then chief operating officer. During that time, Abram’s manager sent him to get his MBA, while his career moved him and his family to six different states before they finally settled in California. From the very first sales call Abram made on a wholesaler, he decided that one day he would have his own shop. In 1996, he founded Abram Interstate Insurance Services; 22 years later, the company is still going strong. Finding great people has allowed for the business to grow and prosper, and has also given Abram the opportunity to travel the world. To date, he has visited 84 countries and counting.
Tom Lynch has been in the insurance industry for nearly five decades. As president of Plastridge Insurance Agency, which he purchased in 1974, Lynch leads the team of more than 95 employees across four offices in South Florida, providing insurance solutions nationally and worldwide. Over the course of his career, Lynch has served in many industry and civic roles, including being a member of Citizens Board of Governors, serving on Travelers Insurance Company’s leadership council, serving as president of the Independent Insurance Agents of Palm Beach County and chairing the board of trustees for Boca Raton’s Chamber of Commerce. Since 2008, Lynch has been mayor of the Village of Golf, Florida, which is not his first mayoral role – from 1990 to 1996, he was mayor of Delray Beach. He is also a governorappointed board member and financial committee chair of the Children Services Council of Palm Beach County, and a board member and chair of the audit committee for Celsius.
WILLIAM CASEY Executive vice president and chief regional officer ARCH INSURANCE GROUP
As Arch Insurance Group’s EVP and chief regional officer, William Casey oversees operations, underwriting, business development and marketing in all of Arch’s US regions. He is also responsible for the overall direction of Arch’s Northeast region, managing the region’s business development, distribution, staff and general operation. Casey joined Arch in 2008 and has amassed more than 30 years of industry experience. Prior to Arch, he served as SVP and deputy head of distribution at Zurich North America, where he led distribution efforts for various Zurich products. During his 10-year career at Zurich, he also served in a number of management roles, including director of field operations for Zurich specialists, national marketing director for all regions, and northeast regional vice president in corporate marketing. Prior to his tenure at Zurich, Casey held leadership positions at Allied Coverage Corporation, Willis Corroon, Reliance, AIG and The Hartford.
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FEATURES
SECTOR FOCUS: WSIA
The insider’s view of the WSIA
Insurance Business America caught up with industry leaders at the WSIA Annual Marketplace to take the pulse of the wholesale E&S market
WHY MAKE RISK RISKIER?
SINCE IT WAS formed in 2017 by the merger of the AAMGA and NAPSLO, the Wholesale & Specialty Insurance Association has gone from strength to strength. The 2018 WSIA Annual Marketplace was held in Atlanta in late September and was attended by more than 4,000 professionals in the wholesale, specialty and surplus lines industry. IBA was there to chat with some of the association’s leading members to find out about the latest challenges and opportunities in the wholesale E&S segment.
JUDE DIBATTISTA Head of E&S QBE North America IBA: How would you describe the E&S market in North America at the moment? Jude DiBattista: I think it’s a very exciting time in the E&S market. There’s a lot of opportunity for growth. Traditionally, we used to see exposure in the big major markets of New York, Chicago and Los Angeles, but with the economy growing, it has been fantastic for the E&S market because there has been diversification into other states like Washington and Utah. From last year, there has been 6% year-overyear growth to date in the E&S space, and that’s really attributable to the economy being good. I think it’s a really exciting time.
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IBA: Do any regions in particular look exciting to you? JD: I think all of it is exciting, but I think North Carolina, Utah and Washington are exciting states because historically, the E&S segment has never really been in those areas. I see some good opportunities there, particularly in construction verticals, in real estate and hospitality. I’m seeing a lot of good opportunities in those areas.
“I think the challenge is still going to be with rates and a lot of capacity in the marketplace … it’s tougher for the market to harden” IBA: Are there any particular challenges in the E&S market at the moment? JD: I think the challenge is still going to be with rates and a lot of capacity in the marketplace … it’s tougher for the market to harden. Those are really the negatives. And it’s all about differentiating yourself from the competitors, such as developing
www.ibamag.com
26/10/2018 4:14:38 AM
WSIA members are experts. When you need a custom solution to a nonstandard risk, look specialized expertise in specific industry segments like real estate or products manufacturing and working more closely your internal colleagues in admitted lines to offer integrated solutions.
IBA: Do you see rates hardening? JD: I do, but I think it’s going to be more by state and also by class of business – so I think it’s going to be pockets. For example, transportation was one line that really hardened up really quickly because a lot of the losses caught up … so I think it’s going to be state-specific as well as class of business.
HANK WATKINS President Lloyd’s USA IBA: How is Lloyd’s performing in the US? Hank Watkins: The US is 44% of Lloyd’s business; last year that was about $17 billion. E&S was $12 billion, and about half of that was property. Within that segment, there’s quite a bit of CAT,
“When there are no significant nat cats in the US, Canada or Mexico, Lloyd’s tends to be very profitable. Of course, when three back-to-back major hurricanes hit, all bets are off ”
WSIA member to craft cost-effective, innovative solutions for your specialty and nonstandard risks. A recent Conning, Inc. analysis concluded that wholesale distribution does not increase the cost of the transaction to the insured, and you deliver an expertly tailored solution. Risk averted.
wind and flood risk, etc. We’re one of the biggest participants both from an insurance and reinsurance standpoint in Harvey, Irma and Maria, and to some extent Nate. Of course, we had the wildfires in California that we were involved in, and even though Mexico’s not part of my territory, the quake down there was a major
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for help and choose a
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Find a WSIA member at wsia.org 26/10/2018 4:15:15 AM
FEATURES
SECTOR FOCUS: WSIA
FAST FACTS: WSIA The WSIA was created in August 2017 when members of the AAMGA and NAPSLO approved a proposal to merge the two organizations The 2018 WSIA Annual Marketplace was held September 23–26 in Atlanta and attended by more than 4,000 industry professionals WSIA’s membership consists of around 800 member firms The current WSIA president is Corinne Jones, EVP of operations at AmWINS Access Insurance Services
PATRICK RYAN ON THE CHANGING ROLE OF BROKERS AND AGENTS “The advice the broker or agent gives is irreplaceable – it’s not going to be replaced by a machine. The broker is an advocate in placing the coverage, getting the right terms and conditions, and making sure the coverage is appropriate and fits the client’s risk. In the claims space, there’s often so much ambiguity that having the broker or agent as the advocate is once again invaluable. Some people believe that technology should bypass the broker to go direct to the insured. At RSG, we’re passionately opposed to that, especially when talking about commercial insurance.”
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contributor to our overall losses from this part of the world. So, as natural catastrophes go, when there are no significant nat cats in the US, Canada or Mexico, Lloyd’s tends to be very profitable. Of course, when three back-to-back major hurricanes hit, all bets are off. That was last year. In the first half of this year, Lloyd’s has returned to profit – about a $600 million profit so far through July 1, 2018. Things are trending favorably, even with Florence just happening, because a fair amount of that is going to be flood that’s either not insured or insured by the NFIP.
IBA: What do you look for in new distribution partners? HW: Essentially, we want to have distribution partners who understand the E&S space very well. Reinsurance is a very different purchase; it’s a very analytical purchase, so the brokers in that space tend to know the carriers globally. We want the brokers to understand why E&S is a relevant solution for their clients and then why Lloyd’s is a good place to look. We emphasize the importance of the central fund – that’s our $4 billion of set-aside money in case the syndicates are unable to pay because they’re insolvent. The central fund is available to pay those claims. We always emphasize that fact because not many people are aware of that, and that’s something our competitors don’t have.
PATRICK G. RYAN Founder, chairman and CEO Ryan Specialty Group IBA: What’s been happening at Ryan Specialty Group in the last year? Patrick Ryan: There has been a lot of change in that we’ve made several very important acquisitions in the past year, both in the wholesale broking division and in the managing underwriting division.
“We’ve been working to expand ... and through these acquisitions, we achieved quite good geographic expansion and specialty lines expansion” We’ve been working to expand geographically, both in the US and in the UK and Europe, and through these acquisitions, we achieved quite good geographic expansion and specialty lines expansion. So we get the scale from that, but it’s really more to get the geographic scope and the product scope. It was a very active year.
IBA: What particular lines did you target? PR: In terms of specialty lines, one would be managing underwriting of social service risks. Another would be managing underwriting of marine risks. And then on the broking side, developing specialties in environmental, construction professional liability and energy. We made significant expansion in energy capacity.
IBA: Was there a reason you focused on energy? PR: There was a reason to focus on both the geography, which was Houston, and energy as an industry. When we started RT Specialty, we developed a hub strategy in the major cities, and Houston was the one major US city that we hadn’t really gotten the presence in and the scale that we wanted, so this acquisition gave us that. Obviously, Texas
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“ and Houston are big energy centers, so it gave us a very strong position in that specialty line. So it was both geographic and product line.
DREW JOHNSON Managing director Northfield Insurance Solutions IBA: What are a few positive trends for the E&S market that have come out of the sharing economy? Drew Johnson: It’s causing us to look at our business differently. We have an account where it’s a chef cooking in his house. Your house would typically be a personal insurance exposure, but this person is working as a chef, which is a business insurance exposure. The sharing economy is challenging the industry to look at that and come up with a creative solution and think a little bit differently about how we do that.
Insurance distribution is going through significant consolidation.
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“The E&S marketplace traditionally plays in new ventures and things that the standard admitted market hasn’t necessarily come up with a solution for” IBA: Is the E&S market prepared to insure the sharing economy? DJ: The E&S marketplace traditionally plays in new ventures and things that the standard admitted market hasn’t necessarily come up with a solution for. We always see new businesses, we always see those trends, and it’s about coming up with a solution for the customer. This was a little unique because it’s blending different ways of thinking beyond what insurance models have traditionally been, and it drives us and gives us an opportunity to be customer-focused. What are their needs and what are they looking for?
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IBA: Do you have specific products you write in this space? DJ: We write a fair amount of sharing economy risks. I don’t think there’s a cookie-cutter approach to the sharing economy … If I go back to that example of the chef in his house cooking for paying customers who are coming on his premises – that’s a unique exposure that we came up with a custom solution for. We protect him from a personal standpoint and also from the business side.
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866.467.2262 Visit InsurBanc.com
26/10/2018 4:15:05 AM
FEATURES
SECTOR FOCUS: WORKERS’ COMP
What’s new in workers’ comp? IBA’s Joe Rosengarten caught up with experts in the space to get the inside scoop on a segment that continues to exhibit steady growth
WORKERS’ COMPENSATION insurance plays a critical role for both employers and employees. It enables workers to cover their expenses if they get injured at work, and it allows employers to carry out their operations safe in the knowledge that a workplace accident will not result in financial ruin. The majority of workers’ comp claims are fairly straightforward and are handled in the standard markets, but this is a massive and expanding space. The growth of workers’ comp is tied closely to the strength of the overall economy. The labor market is booming, domestic equity indexes are performing well, and workers’ compensation premiums have been rising steadily since 2011 after experiencing a significant drop-off in the second half of the last decade during the global financial crisis. According to Moody’s, workers’ comp ranks as the largest commercial line written by US P&C insurers, contributing 10% of direct written premiums. Most workers’ comp claims are related
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to repetitive strain injuries or one-off accidents that lead to injury, like a slip, trip or fall. A regular workers’ comp policy usually provides coverage for medical care, temporary and permanent disability benefits, supplemental job displacement benefits, and death benefits, which are made payable to the deceased’s spouse, children or other dependents if the insured dies as a result of a jobrelated injury or illness. While the standard market generally handles straightforward workers’ comp claims, the complex and difficult-to-manage files often fall to the excess market.
Trends to watch According to Robert L. Sagrillo, president and chief legal officer at NuQuest, the most significant factor driving the increased cost of settling workers’ comp claims in the past decade is the rise of Medicare Set-Asides [MSA], which protect Medicare from funding medical benefits that should have
PREMIUMS ON THE RISE Workers’ comp net premiums
2012 $38.9 billion 2013 $41.1 billion 2014 $43.7 billion 2015 $45.3 billion 2016 $45.6 billion Source: NAIC, S&P Global Market Intelligence, Insurance Information Institute, National Council on Compensation Insurance
been expensed to the party responsible for the injury. “Of course, over time, the cost of medical care has increased, but I believe the more significant factor is the reliance by stakeholders on the voluntary Centers for Medicare & Medicaid Services review of MSAs,” Sagrillo says. “Our analysis of claim data suggests that such reliance results in approximately a 30% to 50% increase in the cost of the MSA and approximately a 15% to 20% increase in the cost of settlement.” An important development in the MSA space has been the creation of non-submit MSAs. Sagrillo notes that by projecting future Medicare-covered medical expenses using evidence-based medicine and standards of care, MSAs can be reduced by 30% to 50% for clients. “By including post-settlement administration tools with our NuShield MSA, we are helping claimants, post-settlement, ensure that they are able to procure their medical treatment at the lowest possible cost, thereby preserving MSA funds long-term,” Sagrillo says. “To provide stakeholders with a comfort level that they have appropriately considered Medicare’s interest in their settlement, we indemnify the parties.”
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ORDINARY PEOPLE GETTING THE EXTRAORDINARY DONE
Matthew Zender, SVP of workers’ comp strategy at AmTrust North America, describes the current period as “transformative” for the workers’ compensation market. The gig economy is creating an evolution in the world of work, and the traditional bricksand-mortar workplace is not necessarily the place where employee and employer meet and carry out their respective functions. The current shift goes deeper than simply having employees work from home – Zender refers to this modern phenomenon as the “disintermediation or dislocation between the workplace, the employee and the employer.” “The emerging gig economy is changing the nature of who is even considered an employee and who they are employed by,” he says. “Uber is the most notable example, but
happening; a lot of the jobs that may have involved more severe claims just don’t exist to the same extent,” Zender says. “Those factors have led to some pretty dramatic changes in frequency trends, which translate into changes in rate. That has an impact on the overall premium base and challenges carriers like us to ask whether or not rate levels are still adequate.”
The agent’s role Agents and brokers play an important role in helping clients maximize their workers’ compensation investment. The first step is to develop a comprehensive understanding of each customer’s business and recommend a company whose capabilities align with the client’s needs.
“A lot of the jobs that may have involved more severe claims just don’t exist to the same extent. [That has] led to some pretty dramatic changes in frequency trends, which translate into changes in rate”
Industry-Leading Wholesale Broker & Program Manager
Matthew Zender, AmTrust North America there are lots of other smaller and less publicized companies that are also interesting to watch.” Zender has also seen some highly encouraging frequency trends within workers’ comp in recent years. Companies are beginning to identify the direct connection between workplace safety and the downstream benefits it provides, such as happier and more productive workplace environments and greater operational efficiencies. As a result, companies are investing time and money to create workplaces that are safer than ever before. “Another part of the frequency trend is related to the job shifting that has been
“Agents also help clients understand how they can minimize their cost of risk by providing employees with access to healthcare and safety programs designed to reduce loss frequency and severity, and ultimately experience modifications,” says Jeff Gans, SVP of workers’ compensation at RIC General Agency, a division of Worldwide Facilities. Incidents of workers’ comp fraud, which has a significant impact on the overall market, are on the rise. In its most common form, workers’ compensation fraud involves employees exaggerating injuries and taking longer to return to work than expected or
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FEATURES
SECTOR FOCUS: WORKERS’ COMP
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LEADING WRITERS OF WORKERS’ COMP $5bn Direct written premiums, 2016
making claims for injuries that happened away from the workplace. It also encompasses businesses not reporting an employee’s payroll until claims are reported and medical providers prescribing unnecessary tests and treatments. Agents and brokers should be on the lookout for red flags that can point to the possibility of workers’ comp fraud. “Does the injured employee offer multiple versions of how the accident occurred, refuse examination or tests to confirm an injury, have a second job, or can’t be reached at home while on disability?” Gans says. “Or did the accident causing the injury lack witnesses, occur late on a Friday afternoon, in an area not frequented by the employee, and/or doesn’t appear to be associated with the employee’s job duties?” Earlier this year, a California-based security company owner was arrested for allegedly scamming his insurer out of $3.2 million. The California Department of Insurance accused Troy Carson of underreporting his payroll expenses by more than $12 million
$4bn $3bn $2bn $1bn $0
Travelers The Hartford AmTrust
Zurich
Berkshire Hathaway
Chubb
New York State Insurance Fund
Liberty Mutual
AIG
California State Compensation Insurance Fund Source: Statista, 2016
“Agents help clients understand how they can minimize their cost of risk by providing employees with access to healthcare and safety programs designed to reduce loss frequency and severity” Jeff Gans, RIC General Agency
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in order to lower his workers’ comp costs. His company also allegedly discouraged its workers from reporting injuries, and the Department of Insurance says Carson created a new company and fabricated the number of employees and how much he was paying them in order to reduce his insurance costs. “A major red flag is if you notice numerous claims from the same individual or someone having an unusually long time off work for what appeared to be a non-serious injury,” says Charles C. Caldwell, president and CEO
of Midlands Management Corporation. “Surveillance can be authorized when there is reason to believe that the person affected is doing strenuous activity, such as sports participation, when they are reporting injuries that prevent them from working. In some instances, these cases might be referred to local authorities.” As the economy continues to grow and the labor market strengthens even further, the workers’ comp space represents a good opportunity for agents to specialize in a growing niche. But making the commit-
ment to becoming an expert is imperative for savvy agents, says Todd S. Pollock, senior vice president of workers’ compensation at Worldwide Facilities. “Agents and brokers need to decide whether they are happy to be a generalist or if they want to be an expert in a particular field,” he says. “To become a leader in workers’ comp, an agent needs to first pinpoint the space as their area of expertise. Then they need to get to know the intricacies of workers’ comp and how it might affect their client’s specific line of business.”
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FEATURES
BROKERAGE INSIGHT
A clean bill of health Hub International’s Shawn McLaughlin outlines how the ways in which people receive healthcare are transforming and the role insurance has to play
IBA: What has been the recent trend in medical malpractice claims? Shawn McLaughlin: Over the past decade, the average severity for medical malpractice claims has continued to worsen. If you go back 20 years, you can see a pattern: As technology, treatments and pharmaceutical breakthroughs improve, the approach to treating a patient changes as information becomes more readily available. This usually creates a better outcome for the patient. We have seen the frequency of claims reduce and bottom out, despite the new risks that technology creates. However, while there has been a trend of fewer claims over this time, medical inflation and patient access to more information than ever before have resulted in severity continuing to worsen.
IBA: What factors are affecting the severity of claims? SM: I think the severity of the outcomes has always been there. In my opinion, there is a perception amongst patients that doctors will be able to fix their injuries and return them to good health, but in many situations, that is not the case, especially as we age. Before technology was so prevalent, you really had to rely on the doctor’s opinion, and most people didn’t question it. Today, more people are taking a more active role in their health.
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In the past, a claim might not have been brought up in these situations; now we see claims occurring.
IBA: What are the major trends affecting the overall healthcare industry today? SM: The healthcare industry has consolidated quite a bit, with hospitals and physician groups merging or being acquired. While we are seeing new businesses come into the industry – especially in senior care, home health, telemedicine and outpatient services – traditional brick-and-mortar healthcare businesses have experienced major consolidation. As a result, carriers are chasing a smaller and smaller group of clients. There is a lot of competition to keep rates pressed, despite the claim environment. At the end of the last millennium,
medical malpractice went from being one of the least profitable lines of coverage to one of the most profitable. Now the trend is pointing toward higher losses again. Medical malpractice is what we in the industry call a long-tail business, because often a patient is treated today, but it can be five to seven years before a claim is resolved. For some time, carriers benefited from duplicate reserves and healthy, stable bottom lines. However, as competition increases, many carriers are expanding outside their territories and competitively pricing risks, despite worsening trends and smaller duplicate reserves. Only recently are we seeing rates in certain states increase.
IBA: What are some emerging areas of healthcare? SM: First, we are seeing more and more
ABOUT SHAWN MCLAUGHLIN Shawn McLaughlin sought early on to focus his career on the healthcare business and earned a bachelor’s degree in healthcare administration. He worked for a large brokerage firm, focusing on complicated healthcare risks, and then at a teaching hospital as an insurance manager before co-founding Risk Transfer Insurance Alliance [RTIA] in 2002, which focused exclusively on healthcare clients, predominantly in New England. In 2010, RTIA joined Hub International. Following the acquisition, McLaughlin worked to consolidate the region’s healthcare clients and connect all the healthcare specialists across the organization. Today, he serves as the national healthcare practice leader for Hub International, as well as the CSO for Hub’s New England region.
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FAST FACTS: HUB INTERNATIONAL
Year established: 1998
Number of North American offices: 450
Headquarters: Chicago
Number of employees across North America: 3,000
“More people are taking a more active role in their health. In the past, a claim might not have been brought up in these situations; now we see claims occurring” private money go into healthcare. Additionally, we have an aging population of baby boomers entering the last phase of their lives, when the amount of care needed increases dramatically. Historically, the industry has not had enough nursing home beds to meet this new demand, so now there are a lot of individuals being pushed into home healthcare and receiving care via telemedicine – areas in which we are seeing dramatic growth. Also, the emergence of lower-care (and lower-cost) senior care and assisted living facilities are filling the need of a shortage of nursing home beds for those who are not fit to be at home unsupervised, but don’t need
the skilled care of a nursing home. We have seen carriers very concerned about the care provided as a result of people staying in these facilities longer than necessary.
IBA: How is technology transforming healthcare? SM: Technology has had a major impact on healthcare. In the past, you had to go see a clinician face-to-face to be treated, and afterwards, they would fill out a medical record by hand. The business has gone through a radical change in the past 15 years, and most practices now use electronic medical record systems, which has caused an evolu-
Leadership: Martin Hughes, executive chairman, board of directors; Richard A. Gulliver, vice chairman; Marc I. Cohen, president and CEO
tion in how clinicians provide care and can communicate with each other in real time. Telemedicine reaches patients that might not have access to care otherwise. That said, there is also a downside to modern technology. Errors can occur when workers don’t use the systems correctly or are not properly trained. Another major concern is the protection of vast amounts of patient information and the increased exposure to data breaches. Healthcare has always been one of the more highly sought-after areas for cyber criminals because medical information is so valuable. While there is a risk with using technology, the good outweighs the bad.
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SPECIAL REPORT
YOUNG GUNS 2018
YOUNG GUNS 2018
IBA highlights 54 up-and-comers who are well on their way to becoming the new leaders of insurance
RECRUITING, ENGAGING, training and retaining young talent in the insurance industry has long been a concern, yet the 54 individuals featured on IBA’s annual Young Guns list paint a much brighter picture of the industry’s future. All 35 years of age or younger, together they have contributed leaps and bounds above what some decades-long veterans have achieved. On the following pages, you’ll be introduced to insurance professionals who have dedicated themselves to community works or to passing their knowledge to other rising stars in the industry. You’ll also meet entrepreneurs who are already leading their organizations and tech-savvy pros who are driving the charge for greater digital integration in the industry. Despite their limited time in insurance, this year’s Young Guns have a lot to offer the industry.
YOUNG GUNS 2018 INDEX NAME
COMPANY
NAME
COMPANY
Aslam, Osman
Hull & Company
69
Blume, Joi
Blue River Underwriters, a Breckenridge Insurance Group company
Fritchie, Alec
Gillis, Ellis & Baker
68
75
Gaglioti, Paul
Diversified Risk Solutions LLC
66
Haney, Max
Acentria Insurance
Bordonaro, Lauren
USI Insurance Services
60
73
Brewe, Nick
Redmond General Insurance/ AssuredPartners
Kobeski, Taryn
International IRM
63
60
Kodryanu, Anna
Burns & Wilcox
56
Burnett, Kyle Cahoon, Aaron
AXA XL
61
Kuhn, Emilee
Arch Insurance Company
71
USI Insurance Services
70
Lankerd, Travis
J.M. Wilson Corporation
62
Capel, Matt
Van Wyk Risk Solutions
64
Larson, Christine
Empire Insurance Group Inc.
56
Castro, Mary
Charity One Insurance Agency
70
Chmel, Matthew
Aon
65
Lehtonen, Justin
Worldwide Facilities LLC
73
Clement, Betsy Ellis
Gillis, Ellis & Baker
59
McEachern, Blake
Acentria Insurance
74
Closson, Kelsey
K&K Insurance Group Inc.
74
McKay, John
EZLynx
PAGE
73
Socius Insurance Services
73
Cohen, Seth
Hub International
64
Mitchell, Stephanie
Coppock, Nicole
Frank H. Furman Inc.
56
Nassau, Steve
ONI Risk Partners
63
Dumeny, Riva
AmWINS Group Inc.
60
Nebel, Brian
RPS Nebel Inc.
67
Eagan, Andrew
Eagan Insurance Agency LLC
59
North, Megan
AmWINS Group Inc.
59
Escalona, Mark
Cobbs Allen
70
Topa Insurance Group
62
Eversull, Patrick
Environmental & Energy Underwriting Managers LLC
O'Brien, Delaney
75
Parascando, Louis
Hub International
57
72
Pedersen, Bob
Brown & Riding
68
Fishel, David
54
PAGE
Higginbotham
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GEORGE SELLA Principal, senior vice president and broker BROWN & RIDING Age: 31
After graduating from the University of Mississippi, George Sella joined Brown & Riding in an entry-level position in 2010. Within a year, he had been promoted to associate broker and then broker. In 2015, he became a senior vice president and the youngest shareholder at the company. Sella specializes in construction and real estate, with a focus on projectspecific business. Over the past four years, his team has worked on hundreds of projects, and he has been heavily involved with project placements nationwide, ranging from industrial plants and highway expansion projects to condo and apartment projects. An integral part Brown & Riding’s construction practice group [CPG],
Sella concentrates on the casualty side, working closely with his team, including company chairman and construction specialist Chris Brown. “We are extremely proud of George’s accomplishments,” Brown says. “He has contributed greatly to Brown & Riding’s growth and continues to play a leading role in the CPG and in the firm overall.”
COREY TOBIN NAME
COMPANY
PAGE
Posecai, Julian
Eustis Insurance & Benefits
66
Reed, M. Kelly
VAST
72
Rheiner, Kyle
Strickler Insurance Agency
69
Richey, Ross
Lawton Insurance
62
Rinehart, Alex
Breckenridge Insurance Services
57
Robinson, Jim
Robinson & Stith Insurance
57
Schielack, Kyle
Higginbotham
69
Sella, George
Brown & Riding
55
Sipes, Tabbatha
AssuredPartners
65
Snow, Jennifer
Burns & Wilcox
66
Stanchina, Woody
Continental Underwriters Inc.
74
Teall, Katie
Worthy Insurance Group
63
Tobin, Corey
Bolton & Company
55
Van Gessel, Andrew
K&K Insurance Group Inc.
75
Walker, Corey
Brown & Brown Insurance
65
Ware, Kevin
RT Specialty
64
Watson, Greg
Burns & Wilcox
68
Zufall, Timothy
RCI Insurance Group
72
Vice president BOLTON & COMPANY Age: 29
As head of Bolton & Company’s cannabis practice, Corey Tobin plays a crucial role in helping cultivators, manufacturers and distributors navigate a complex insurance and legal landscape. In the process, he has grown his book of business to more than $500,000, in large part due to his expertise and impeccable work ethic. As an active member of the insurance committee for the California Cannabis Industry Association, Tobin is a thought leader for many stakeholders in the industry. He routinely blogs and speaks on panels that are setting the course for the cannabis industry. Outside of the office, Tobin volunteers with the Bolton Foundation and Make A Difference. He is also currently pursuing his CIC and CRIS designations.
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SPECIAL REPORT
YOUNG GUNS 2018
NICOLE COPPOCK Private client advisor FRANK H. FURMAN Age: 29
Nicole Coppock began her insurance journey in 2006 as a student of the
ANNA KODRYANU Associate managing director BURNS & WILCOX Age: 35
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Independent Insurance Agents of Broward County’s InVEST Program, where she learned about career options and fields of specialization for independent insurance agents. Since obtaining her property & casualty license, Coppock has served as a private client advisor at Frank H. Furman for the last 12 years. She was recently named Young Agent of the Year by the Florida Association of Insurance Agents’ Young Agents Council. As secretary of IIABC and a graduate of the InVEST Program, Coppock works to educate the next generation about insurance. She also volunteers with IIABC’s Gateway Community Outreach, which provides food to the less fortunate, and Unicorn Children’s Foundation, which offers educational support to children and young adults with learning disorders.
As associate managing director for Burns & Wilcox’s New York City and New Jersey offices, Anna Kodryanu is responsible for managing and growing the company’s northeast presence, in addition to overseeing the commercial, personal and professional lines of business. In more than a decade in the insurance industry, Kodryanu has earned a strong reputation as a knowledgeable trusted advisor and a well respected broker and colleague. She has worked for global leaders, including AIG and CRC, and has held a variety of roles in underwriting, sales and marketing, brokerage, and management, and has developed expertise in the environmental and energy sectors. Outside of Burns & Wilcox, Kodryanu serves as the vice president of the New York Young Insurance Professionals [NY-YIP] and chair of the organization’s membership committee. She was recently named NY-YIP’s 2018 Professional of the Year. She was also selected to participate in the Kaufman Advancement Management Program, which is designed to prepare and propel future leaders within Burns & Wilcox.
CHRISTINE LARSON President and CEO EMPIRE INSURANCE GROUP Age: 34
In 2009, Christine Larson partnered with her parents to start Empire Insurance Group; in 2016, she purchased their shares to become CEO. Under Larson’s leadership, Empire Insurance Group has acquired two agencies and more than doubled in size within the past year. Specializing in mid-size to large commercial accounts, as well as personal lines and farm insurance, Larson now oversees three locations, working side-by-side with location managers and the operations manager, who also happens to be her husband. “I enjoy working with clients to find their coverage needs, and I also love working on the business,” she says. “In total, I have been in the industry 13 years and anticipate many more!” Outside of Empire, Larson serves as director at large of the Minnesota Independent Insurance Agents & Brokers Association, president of the North Branch Beautification Association and a member of the North Branch Veterans Memorial Committee. She was also president of the North Branch Chamber of Commerce last year and is a seven-time member of the Atlas Platinum Leaders Circle.
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Inventive together Congratulations to our own Young Gun Kyle Burnett, Head of E&S Property North America. With innovation, expertise and creative talent Kyle finds solutions for even the most complex risks. So if you’re moving your business and the world forward, partner with AXA XL Find out more on axaxl.com
to help you do it.
AXA, the AXA and XL logos are trademarks of AXA SA or its affiliates. AXA XL is a division of AXA Group providing products and services through four business groups: AXA XL Insurance, AXA XL Reinsurance, AXA XL Art & Lifestyle and AXA XL Risk Consulting Š 2018 AXA SA or its affiliates. In the US, the AXA XL insurance companies are: AXA Insurance Company, Catlin Insurance Company, Inc., Greenwich Insurance Company, Indian Harbor Insurance Company, XL Insurance America, Inc., XL Specialty Insurance Company and T.H.E. Insurance Company. Not all insurers do business in all jurisdictions nor is coverage available in all jurisdictions. www.ibamag.com
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SPECIAL REPORT
YOUNG GUNS 2018
JIM ROBINSON Account executive ROBINSON AND STITH INSURANCE Age: 27
After graduating from North Carolina State University in 2014, Jim Robinson joined his family business, Robinson and Stith Insurance, as a producer. Today, he’s focused on growing the agency’s book of business through new opportunities, from crop insurance and life & health to personal and commercial lines, as well as working in all facets of day-to-day operations. Robinson is a graduate of the New Bern Area Chamber of Commerce’s Leadership Craven program, which brings together employees from a wide array of industries to learn about various parts of Craven County. Most recently, he was part of a team that brought back the Great Trent River Raft Race, a popular event in the 1980s where participants built homemade rafts and raced on the Neuse and Trent rivers. Robinson was asked to serve on the board and advise as part of the legal/insurance committee. The group successfully brought the event back this summer, giving the town’s downtown merchants an economic boost. Robinson also serves as president of the Craven County Independent Insurance Agents Association, a nonprofit that gives back to the community through donations and sponsorship opportunities.
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LOUIS PARASCANDO Assistant vice president and team leader HUB INTERNATIONAL Age: 30
Louis Parascando started his insurance career right out of college as a professional associate in AIG’s
ALEX RINEHART SVP, director of property & casualty operations BRECKENRIDGE INSURANCE SERVICES Age: 32
underwriting training program. During his four-year tenure at AIG, he was promoted to senior underwriter within the construction unit and underwrote large wrap-ups in New York City. Parascando left AIG to become a broker at Marsh & McLennan, and two years ago, he joined Hub International, where he is now responsible for managing a team of brokers handling a book of business worth more than $3 million in premium. Parascando was also instrumental in integrating and launching SHIELD, Hub’s proprietary risk purchasing group program for commercial real estate clients. Since it launched less than six months ago, the program has booked approximately $500,000 in premium, with $2 million forecasted by the end of the annual term. Parascando also serves as the marketing reference for Hub’s newly created real estate industry vertical, is a participant in Hub’s philanthropic efforts for the Insurance Industry Charitable Foundation and serves as a camp counselor for Ronald McDonald Camp charities.
As a property broker and a leader in operations, Alex Rinehart is well versed in the needs of agents, carriers and internal stakeholders. At a time when Breckenridge was dealing with inefficiencies, Rinehart introduced and ensured successful implementation of an agency management system. The project set the stage for significant time savings and increased service across the board. Rinehart’s innovative thinking also led him to develop an exclusive student housing program with Lloyd’s of London to meet the needs of Breckenridge clients. Currently, he is working on the development of an externally facing agent rate, quote and bind technology platform, starting with REO/investor property risks. Thanks in part to Rinehart’s efforts, Breckenridge was named Best Wholesale Specialized Practice in Commercial Property at the 2017 Insurance Business America Awards.
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26/10/2018 6:02:53 AM
BETSY ELLIS CLEMENT Vice president GILLIS, ELLIS & BAKER Age: 32
After two years of working in public relations and events in New York, Betsy
MEGAN NORTH Assistant vice president AMWINS GROUP Age: 32
As a former collegiate athlete, Megan North is fiercely competitive and driven
Ellis Clement returned to her New Orleans hometown and joined Gillis, Ellis & Baker as a producer. Since then, her determination and commitment to GEB has propelled her to success. Clement specializes in commercial insurance, professional liability and personal lines, and was responsible for spearheading GEB’s personal life program, the first of its kind in the area. Earlier this year, Clement was promoted to vice president and shareholder of the firm. As a proponent of continuous learning, Clement contributes her time and talents to GEB University, a monthly seminar series dedicated to teaching clients, prospects and the public about insurance, risk management and employee benefits. Clement has conducted many of the seminars, including the popular course Insurance 201: Beyond the Basics.
– two attributes that have led her to achieve successes in insurance. For the past eight years, North has focused on building her expertise in professional and management liability. During the last few years, she has established herself as a key resource for cyber liability, frequently partnering with market experts from multiple carriers to tailor coverage and negotiate enhanced products for one of the fastest-growing lines of business in the industry. A self-professed ‘coverage geek,’ North has authored several articles on various subjects, from manufacturer’s E&O to the implications of cyber liability on D&O and the energy space. She has also been a featured speaker at various events, including hosting a session on management liability within the energy space at the annual IRMI Energy Conference and a cyber liability-focused session for the annual conference of the Self Insurance Institute of America.
ANDREW L. EAGAN Vice president, sales manager EAGAN INSURANCE AGENCY Age: 32
Intelligent and innovative, compassionate yet professional, Andrew Eagan maintains a down-to-earth approach that appeals to businesses, brokers and employees. Eagan joined his family’s insurance agency as marketing manager, responsible for sales, research and product development, as well as training and mentoring the marketing and sales staff, and was recently promoted to sales manager and vice president. Today, Eagan meets with producers monthly and works closely with new producers to train them in the fine art of insurance sales and service, while encouraging established producers to take on new hires and coach them on techniques and special approaches. Eagan also collaborates with companies to establish niche programs and is extensively involved in negotiating terms and conditions for some of the more unique risks the agency covers. Eagan was a finalist for Young Gun of the Year at the 2017 Insurance Business America Awards and was named to IBA’s 2018 Hot 100 list. In addition, he serves on the board of directors for the Better Business Bureau of Southeast Louisiana.
FUN FACT An accomplished sailor, Eagan has won a number of championships, including the 2017 Rolex New York Yacht Club Invitational Cup.
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26/10/2018 6:03:01 AM
SPECIAL REPORT
YOUNG GUNS 2018
RIVA DUMENY Senior vice president AMWINS GROUP
NICK BREWE Agency president REDMOND GENERAL INSURANCE/ ASSUREDPARTNERS Age: 33
As head of a third-generation insurance agency, Nick Brewe is effectively ushering Redmond General Insurance into a new era. After growing up around the industry, Brewe began his insurance career at QBE, where he worked on underwriting and small auto claims before joining the family business and transitioning from personal to commercial lines. Since then, Brewe has held virtually every position in the agency, from receptionist and customer representative to producer and manager, before becoming president in September 2018. Under Brewe’s leadership, the agency successfully transitioned into the AssuredPartners group of companies after its merger with another local agency. In 2017, Redmond General Insurance received AssuredPartners’ Diamond Award for outstanding performance in operations.
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Age: 33
As a senior vice president at AmWINS Group, Riva Dumeny oversees the field offices’ central servicing unit, which involves a combined force of 200 employees. Dumeny is responsible for furthering centralization efforts while supporting the operating functions in order to achieve process control,
MAX HANEY Commercial insurance consultant ACENTRIA INSURANCE Age: 35
Weathering a tragic event and multiple trials early in his life gave Max Haney resiliency and determination to achieve success against the odds. After his father passed away unexpectedly, Haney postponed his college education to help run the family restaurant. When
efficiency and quality of service. She and her team have spearheaded various initiatives, such as deploying management training for operation leaders; imple menting workflow management tools, including employee and department dashboards and an underwriting portfolio management database; and launching robotics software to help reduce expenses and improve client satisfaction. Dumeny also manages AmWINS’ single point-of-contact solution, a centralized team of underwriters and brokers that provides outsourced placement services to large property & casualty brokers in a technology-enabled environment. Since Dumeny took ownership of the single point-of-contact solution, it has gone from spending more than $20,000 a month to earning a modest profit and generating seven times the referral revenue for other AmWINS entities. Beyond her daily responsibilities, Dumeny is a strong proponent of gender equality and the advancement of women. She is currently working with a group of female leaders at AmWINS to establish a women’s leadership group. Outside of AmWINS, she volunteers with the Harbor House of Central Florida, a domestic violence shelter and prevention agency.
he went back to finish his degree at Florida State University, he was recognized with the Reubin O’ D.Askew Young Award, the highest alumni award. At Acentria, Haney works on commercial lines, specializing in coverage for country clubs and golf courses. Committed to helping people who are going through experiences similar to his overcome their difficulties, Haney has given a TED Talk based on his personal experiences and serves on the board of Valerie’s House, a local nonprofit that helps children and families deal with personal losses. Haney was named by Gulfshore Business as one of Southwest Florida’s 40 under 40 for 2018.
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26/10/2018 6:03:02 AM
KYLE BURNETT Head of E&S property AXA XL Age: 29
Kyle Burnett started his insurance career in the mailroom of a small Long Island-based MGU. He went on to work for Partner Re, Everest and eventually XL Catlin (now AXA XL), which he joined as regional vice president to help rebuild the E&S portfolio. Today, Burnett is head of E&S property for the North American property group and is responsible for the property wholesale portfolio, which includes everything from managing
relationships to developing guidelines to keep the company profitable amid challenging conditions. “There is no box that all E&S risks fit into,” he says. “E&S is about finding creative solutions for tough, hard-to-place risks. I like the challenge of coming up with something that works for my company, my broker and, most of all, our client.” Burnett and his team have made incredible strides in changing the E&S marketplace through client education and portfolio corrections. “We studied our portfolio to find mistakes in the past so we could work to correct them,” he explains, “not only for us, but to sit with our clients and explain the changes to them.
Educating them on corrections to terms and conditions only helps us do better as partners and as an industry.” At AXA XL, Burnett has also taken part in wind, flood, capacity, warehouse and relationship studies to enable the company to improve itself and the market. He was a finalist for Young Gun of the Year at the 2017 Insurance Business America Awards. Outside of insurance, he volunteers with youth football and wrestling.
FUN FACT Prior to his insurance career, Burnett was a chef who once cooked for the Princess of Qatar's wedding.
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SPECIAL REPORT
YOUNG GUNS 2018
ROSS RICHEY President LAWTON INSURANCE Age: 34
In 2009, at just 25 years old, Ross Richey became the owner of Lawton Insurance, which was established in 1899. Since taking the helm, Richey has completed 10 acquisitions and now operates seven locations across Kentucky, encompassing 40 employees and more than $5 million
in annual revenues, including a 12% growth in revenue this year. In April, Richey partnered with an industry veteran in the public entity space to form a new business, Governmental Risk Insurance Plans, which works with other agencies across Kentucky to place and service city, county, public utilities and other government-related risks. In addition to his duties as president and owner of multiple agencies, Richey is chairman of the Mid-Atlantic region and a member of the National Advisory Council at Safeco, former chairman of Young Agents of Kentucky, and a member of Western Kentucky University’s National Young Alumni Council. He has been named Young Agent of the Year by the Independent Insurance Agents of Kentucky, Young Entrepreneur of the Year by the Greater Muhlenberg Chamber of Commerce and named to Bowling Green Living magazine’s 40 Under 40.
DELANEY O’BRIEN Director of marketing and communications TOPA INSURANCE GROUP Age: 30
Four years ago, Delaney O’Brien moved from the entertainment industry to the insurance industry, joining Topa Insurance Group as a marketing rep, charged with leading the company’s rebrand and launch of its new website. In 2015, she was promoted to oversee production of internal and external materials, such as press releases, newsletters and more. Earlier this year, O’Brien was named director of marketing and communications, and she now leads the development strategies to enhance Topa Insurance Group’s public image. After last year’s devastating hurricane season, O’Brien helped raise more than $100,000 for hurricane victims in the US Virgin Islands. She is also a member of the California Insurance Wholesalers Association’s FUTURE committee.
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TRAVIS LANKERD Brokerage underwriter J.M. WILSON CORPORATION Age: 24
At just 24 years old, Travis Lankerd has already mastered the art of finding turnkey solutions for MPL, cyber liability and data breach, tech professional liability, media liability, and drone exposures. In early 2018, he secured his Cyber Liability Risk Manager designation and plans to pursue a Registered Cyber Liability Specialist designation by the end of the year. Heavily focused on growth of J.M. Wilson’s cyber liability and tech E&O books of business, Lankerd stays attuned to emerging trends. Earlier this year, he served as the keynote speaker at the Bay Area Insurance Agents Association luncheon, discussing how retail agents can use cyber liability applications to enhance clients’ understanding of their cyber-related exposures. In 2019, he will present a crash course in cyber liability to the insurance and risk management program at Olivet College. Lankerd frequently attends Gamma Iota Sigma alumni events in the Lansing area, including both community service and student outreach/networking events that connect students with professionals in the insurance industry.
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26/10/2018 6:03:13 AM
STEVE NASSAU Risk consultant ONI RISK PARTNERS Age: 34
After more than five years as an underwriter for two different commercial carriers, Steve Nassau transitioned to the retail side of the business in 2014. Leaning on his underwriting acumen, he began building his book, and in September 2017,
Nassau was tapped to lead ONI Risk Partners’ Louisville office, where he’s responsible for growing the overall office business in addition to his own. Nassau hired two new producers this year and has been working to create an encouraging culture for employees, including fun and creative activities and inter-office events to keep morale high. Outside of ONI, Nassau is a board member for Big Brothers Big Sisters of Kentuckiana and has served as a big brother for more than eight years.
KATIE TEALL Operations manager WORTHY INSURANCE GROUP Age: 27
Katie Teall joined Worthy Insurance Group in 2016 to lead a growing department of account managers and client service representatives. Her first task was to oversee the transition of the agency management system from TAM to Applied EPIC. After the implementation of EPIC, Teall developed policies and procedures to allow Worthy to use the system to its fullest capacity while also removing redundant activities. After that project, Teall was tasked with revamping the client experience; the service standards she implemented have helped Worthy grow by more than 160%. Passionate about Worthy’s continued growth, Teall successfully developed a training/mentor program for young professionals. “Her passion for helping others is contagious and will continue to allow for Worthy to attract top young talent to our agency,” a colleague says. Teall was also pivotal in designing Worthy’s community service program, which encourages employees to spend time volunteering at local social service organizations.
TARYN M. KOBESKI Commercial lines account manager INTERNATIONAL IRM Age: 26
Since joining International IRM three years ago, Taryn Kobeski has been entrusted with a wide range of responsibilities and roles, including processing payroll, coordinating licensing, IT, and organizing agency social events and marketing. Kobeski recently completed her CIC designation, and earlier this year, she
received the Eugene Sberna Memorial CIC Scholarship from the IIA of Illinois. Outside of her work at International IRM, Kobeski is a member of the Independent Insurance Agents & Brokers of America and the National Association of Surety Bond Producers, and is a volunteer for the Give Kids the World Foundation and the Juvenile Protective Association. In 2016, she was named Palatine Park District Volunteer of the Year for her 12 years of services at Palatine Stables and with the Palatine Stables Show Team.
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SPECIAL REPORT
YOUNG GUNS 2018 SETH COHEN Vice president HUB INTERNATIONAL Age: 35
The film and television industry has changed dramatically over the last few years, and so have the risks. Seth Cohen combines his knowledge of both insurance and the entertainment industries to negotiate insurance programs to help his clients carry out their creative vision. He has worked
with notable clients such as Paramount Pictures and MGM Studios and on projects that include Mission: Impossible Fallout, The Voice and Shark Tank. Cohen has placed some unique and challenging coverages, from hurricane coverage for filming in Florida to media liability for controversial films. Cohen holds ARM and CPCU designations and has completed a professional education program in production at the UCLA School of Theater, Film & Television. He regularly attends media law conferences and film and TV events, and also takes time to visit filmmakers on set to better understand the filmmaking process and the risks and challenges associated with it.
KEVIN WARE Senior vice president
MATT CAPEL Commercial client executive VAN WYK RISK SOLUTIONS Age: 30
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Matt Capel serves as an account leader and advisor for Van Wyk Risk Solutions’ commercial clients. Known for his thorough risk management analysis and ability to develop unique solutions for clients, Capel specializes in member-owned group captive insurance. Last year, he was in the top percentile nationally for new business revenue and played an integral role in Van Wyk’s growth and success. “Matt’s ability to professionally and respectfully serve clients is outstanding,” says CEO Max Van Wyk. “He has a passion to grow long-lasting relationships built on partnership and trust, utilizing strong business intellect to support our clients and their risk management needs. Matt’s innovation and knowledge preserve Van Wyk’s tradition of providing the resources and capabilities of a national broker and the service-minded accessibility of a hometown firm.” In addition to his responsibilities at Van Wyk, Capel is a strategic partner and speaker for the Institute of Management Accountants. He also serves on the risk management committee for The First Tee of West Michigan and is the risk management partner for the Arboriculture Society of Michigan.
RT SPECIALTY Age: 30
In a short amount of time, Kevin Ware has ascended the ranks at RT Specialty, moving from entry-level account executive to full-time producer in just three years. This year, he became the youngest senior vice president of the firm, where he runs a property team of seven. So far in 2018, his book has grown by 85%, and he’s on track to realize more than $2 million in revenue for the year. “[I’m] very proud of this growth level in what is widely considered a very soft property market,” Ware says. “We will be targeting the same level of growth, if not more, next year. One of my big differentiators has been my stock through-put program, which covers an insured’s inventory worldwide.” Outside of the office, Ware serves as a board member at Imerman Angels, a one-on-one cancer connection charity for cancer patients, survivors and caregivers.
FUN FACT Prior to moving into insurance, Ware worked at ESPN for four years.
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26/10/2018 6:03:24 AM
COREY WALKER Private client advisor BROWN & BROWN INSURANCE Age: 30
Since joining Brown & Brown in 2014, Corey Walker has ranked every year
TABBATHA SIPES Vice president ASSUREDPARTNERS Age: 32
As a vice president at AssuredPartners, Tabbatha Sipes is responsible for developing the overall strategy and consulting capabilities needed to meet her clients’ needs. She also oversees the client service team and resources to ensure the seamless delivery of services. Sipes has a broad background in risk management and has worked extensively with organizations to help them understand, evaluate and address their risks. Currently, Sipes serves as the resident expert on large property at AssuredPartners, while also specializing in private equity due diligence and risk placement. In addition, she participates in AssuredPartners’ women’s leadership group and served as one of the ambassadors for the Midwest Women Business Owners’ Conference 2018.
MATTHEW CHMEL Vice president AON Age: 34
Matthew Chmel is part of Aon’s professional risk solutions team, which offers brokering expertise on cyber/ network security and privacy liability, technology E&O, media liability, and intellectual property coverages. Through his in-depth expertise on the team’s processes and products
among the top 10 advisors in the company based on production and retention, which enabled him to take part in the company’s prestigious Tangle B Award Dinner with the CEO and other top producers. Walker also served as corporate personal insurance national growth team leader for Brown & Brown’s central region in 2017. As a client advisor, Walker works directly with clients in all areas and across all stages, from prospecting and developing relationships to onboarding clients, conducting consultative reviews and program analysis, structuring programs, and navigating claims. In addition to managing a growing client base of more than 300 high-networth families, Walker familiarizes himself with risks both in and outside his Florida community, including all 50 states, parts of Europe and most of the Caribbean.
and thorough understanding of market relationships, Chmel has been able to create differentiated solutions, such as the cyber and E&O structured portfolio panel that launched in 2017. The panel aimed to drive best-in-class results for clients who purchase cyber and E&O. This led to streamlining of market turnaround times for quoting, policy issuance and endorsements, which increased the brokering efficiency of Chmel’s team and enabled them to meet client deadlines. The panel also increased coverage through proprietary wording amendatory endorsements and enhanced clients’ claims experience through partnership with strong markets. Leading a Chicago-based team of 16 brokers who service clients across the country, Chmel has ensured the delivery of best-in-class service, which has resulted in a client retention rate of more than 94%. He has also demonstrated strong leadership skills by fostering a culture of engagement and learning, which enabled the Chicago team to consistently achieve 20% growth in revenue over the last few years.
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SPECIAL REPORT
YOUNG GUNS 2018 PAUL GAGLIOTI III Founder, president and CEO DIVERSIFIED RISK SOLUTIONS Age: 32
The founder of Diversified Risk Solutions, Paul Gaglioti III recently expanded his professional footprint with Harbor.ai, the tech outfit behind DivRisk’s proprietary artificial intelligence-powered agent. Born of a desire to equip insurance brokers
and their clients with the best possible resource to purchase, manage and understand their policies, Harbor.ai leverages machine learning to provide its users with an ever-expanding repository of insurance knowledge. Most recently, following a trip to Lloyd’s of London, Gaglioti and his team have been working with Beazley to help restructure its Deadly Weapons Protection product, creating a ‘light’ option for distribution via Harbor.ai’s platform.
JULIAN POSECAI Vice president EUSTIS INSURANCE & BENEFITS Age: 32
In 2010, Julian Posecai moved to New Orleans to work in business development for the New Orleans Hornets and was promoted to account executive the following year, growing his book of business by more than $2 million. “The position was a perfect transition to a career in insurance,” he says, “since you are in a hybrid role managing and servicing corporate accounts and looking for new sales opportunities.” In 2013, Posecai joined Eustis Insurance & Benefits, where he is now a vice president with a book of business exceeding $600,000 in revenue. Last year, he added more than 100 restaurant clients to his book. “I have been very fortunate to learn from some of the best insurance technicians in the business,” he says. “My position requires that I stay educated on the ever-changing risk in the insurance world and provide my clients with a quality insurance product. I have been fortunate to work with accounts all over the country and assist accounts that have foreign exposure. I enjoy working with my team at Eustis Insurance and sharing everything I learn along the way.”
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JENNIFER SNOW Assistant underwriter BURNS & WILCOX Age: 27
As an underwriter at Burns & Wilcox, Jennifer Snow is responsible for professional and P&C coverages in the New York and New Jersey businesses, while also supporting the operations manager for both offices and helping to train new associates. Starting out in
Burns & Wilcox’s Pittsburgh office after college, Snow went on to finish her MBA before moving to join the New York City office last year. A strong asset to the Burns & Wilcox team, she is known for meeting and exceeding client expectations. Outside of the office, Snow is an active member of the New York Young Insurance Professionals and plans to earn her CPCU later this year. She also volunteers with various organizations in the Northeast region to help combat human trafficking.
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26/10/2018 6:03:32 AM
BRIAN E. NEBEL Area president RPS NEBEL Age: 34
In 2008, Brian Nebel joined the insurance industry as a customer service rep for a large retail agency in Illinois. He ascended the ranks to become a client development manager before moving into the excess & surplus market. He joined his familyowned MGA, The Jack Nebel Co., in 2011 as an underwriter, taking on increasing leadership roles until assuming the role of
president in 2017. Under Nebel’s leadership, the company experienced top-line growth of more than 40% and bottom-line growth of more than 60%, which he accomplished by reducing the number of agencies the firm worked with by 10% and improving the outcomes of those it did partner with. During Nebel’s time as president, The Jack Nebel Co. was named as a finalist for Best Wholesale Specialized Practice at the 2017 Insurance Business America Awards. In July, The Jack Nebel Co. merged with Risk Placement Services,
and Nebel was named area president for RPS Nebel, where he serves local retail agents with broad in-house binding capabilities on tough-to-place commercial P&C business. Nebel has been an active mentor to the next generation of talent at his company, helping individuals grow both professionally and personally, and positioning his team for the future. Outside of the office, he is a board member for Nautilus’ NextGen committee and a member of WSIA’s U40 organization.
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SPECIAL REPORT
YOUNG GUNS 2018
ALEC FRITCHIE Producer GILLIS, ELLIS & BAKER Age: 32
BOB PEDERSEN Assistant vice president, broker
Growing up in the industry, with a family connection to Gillis, Ellis & Baker [GEB], provided Alec Fritchie exposure to the insurance world that set his course early
on. His ability to read policies and interpret coverage has come naturally as his career has progressed, and he’s been able to master the structure of policies. After a few years of working in Washington, DC, and Dallas, Fritchie moved back to New Orleans and joined GEB in 2014. Currently, he focuses on commercial property & casualty as well as marine risks in the New Orleans area and across the Gulf South. In recent years, New Orleans has been a burgeoning tech hub, and Fritchie has worked with a growing tech company to help customize and expand its insurance program to match its pace of growth. This year, Fritchie and his team created a program that combines tech E&O with cyber liability to insure the client’s most pressing exposures. In addition, he worked to ensure that the company’s D&O policy would hold up to a large round of capital investment, resulting in a program that covers both domestic and international exposures.
BROWN & RIDING Age: 34
Bob Pedersen began his insurance career in 2007 with Navigators Management Company as a primary casualty underwriter, writing everything from small, basic accounts to large and complex ones. In 2011, Pedersen assisted in starting Houston Casualty Company’s E&S primary casualty construction unit, including developing appetite, writing forms and marketing the national launch. As an E&S construction underwriter, Pedersen developed relationships with wholesale brokers across the country and noticed a need for knowledge, innovation and specialization in the wholesale space. He then made the shift from underwriter to E&S wholesale broker by joining TravisPedersen (now Brown & Riding) in 2013. As a wholesale broker, Pedersen places general and excess liability, specializing in tough-to-place products accounts and construction risks, including projectspecific and wrap-up programs.
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GREG WATSON Managing director BURNS & WILCOX Age: 31
Since starting his career at Burns & Wilcox as a personal insurance underwriter nearly a decade ago, Greg Watson has made a name for himself thanks to his strong work ethic and passion for building relationships. In the same year he joined the company, Watson also graduated from the Kaufman Advancement Management Program and later from the Kaufman International Leadership Training in 2016. From 2015 to 2017, Watson was recognized as a top producer in the company’s Million Dollar Club, and he also earned a spot in the Half-Million New Business Club in 2017. As managing director of Burns & Wilcox’s Charlotte office, Watson’s dedication and commitment have complemented the company’s steadfast and prosperous 30-year history in the Carolinas. To continue to support the company’s growth, he established relationships with East Carolina University and the University of North Carolina Charlotte to recruit potential future associates.
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26/10/2018 6:03:47 AM
OSMAN ASLAM Broker HULL & COMPANY Age: 30
Osman Aslam got an unexpected start in the insurance industry via a summer internship at Hull & Company, where he assisted the accounting and service department. Upon graduation, he was offered a full-time position in the contractor department. About a year
after he joined the company full-time, Aslam had the opportunity to work under the top broker in the office, learning the ins and outs of the market. That knowledge and experience helped Aslam move into the broker role he holds today, where he maintains a $500,000 book of business. “The biggest accomplishment for me was working from the bottom up to become a broker,” he says. “It has given me a lot more appreciation of all the mechanics of writing a piece of business.” To further propel his growth, Aslam is pursuing his CIC designation, and he is closing in on his goal of writing $200,000 in new business this year.
KYLE J. SCHIELACK KYLE C. RHEINER
Vice president
Certified insurance counselor
Age: 33
HIGGINBOTHAM
STRICKLER INSURANCE AGENCY Age: 34
A 13-year veteran of the insurance industry, Kyle Rheiner focuses on commercial insurance for food & beverage manufacturing companies at Pennsylvania-based Strickler Insurance Agency, where he has led the 10% year-over-year growth of the food and beverage division. Rheiner has been tapped by the media for his work with startups, breweries and millennials, and has been named a Five-Star Professional by Philadelphia Magazine for four consecutive years. Outside of the office, Rheiner is president of the Chester County chapter of the West Chester University of Pennsylvania Alumni Association, a member of Rotary International and is enrolled in the nonprofit executive board management course for Leadership Chester County.
FUN FACT Rheiner recently ran a 10-mile Spartan Super Race.
In 2017, Kyle Schielack joined Higgin botham’s Houston office as vice president, bringing with him eight years of experience in managing risk and insurance for commercial real estate and development, multi-family, manufacturing, and distribution companies. Previously, Schielack was a VP at a private insurance agency, where he achieved record revenue growth. At Higginbotham, he mentors young agents and serves on the firm’s sales strategy advisory committee. Last year, Schielack was a part of an expert panel on commercial real estate liability and the testing and maintenance of fire sprinklers that was published in the Houston Business Journal. In addition to his insurance duties, Schielack has served his community in a variety of capacities, including as an executive volunteer for the Prison Entrepreneurship Program and serving on the Calf Scramble arena committee for the Houston Livestock Show & Rodeo. He also established Live Oak Professionals, a group of young executives committed to professional development.
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SPECIAL REPORT
YOUNG GUNS 2018
MARC ESCALONA Vice president, captive practice COBBS ALLEN Age: 35
Under Marc Escalona’s leadership, Cobbs Allen’s alternative risk and captive
MARY CASTRO Nonprofit insurance consultant CHARITY ONE INSURANCE AGENCY Age: 26
Mary Castro joined Charity One five years ago with little knowledge of insurance but plenty of initiative and determination.
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strategies practice group has experienced consistent double-digit growth and expanded its product offerings, all while maintaining a 100% retention rate. To ensure effective structuring of programs, Escalona has developed analytical tools, along with an actuary modeling platform, to mine client data. He conducts feasibility analyses and coordinates the captive process to help clients effectively manage their corporate risks and insurance costs. Recognizing the industry’s need for more young talent, Escalona contributes to the efforts of the Alabama Young Agents and the University of Alabama’s I-Day, a conference for insurance industry professionals. He has also served as a judge for the InVEST program, which works with high school and college educators to provide useful insurance curriculum for students.
Starting out as front desk administrator, Castro worked her way to new business team lead, overseeing and developing new sales, managing social media, developing marketing plans and more. Within the past three years, she has averaged $850,000 in annual new premium and secured Charity One’s largest client to date. In addition, she started an outreach initiative to find ways to give back to nonprofit clients monthly, developed a video series on coverages and doubled the firm’s social media reach. Outside of the office, Castro is an active volunteer for CASA of San Bernardino and the Childhood Cancer Foundation of Southern California. Through Charity One, she has volunteered for various charitable causes, including Shepherd’s Pantry, Butterfly Kisses Foundation and the Triumph Foundation. She is also a board member and volunteer coach for the Rialto Youth Soccer League.
AARON G. CAHOON Senior vice president, commercial insurance USI INSURANCE SERVICES Age: 34
As a senior vice president in USI Insurance Services’ commercial division, Aaron Cahoon understands the importance of going beyond insurance transactions to connect clients with resources that will help their businesses grow. He has been a key player in building out USI’s Northwest food and agricultural practice group, which has seen revenue growth of $2.5 million in the past three years. Cahoon was also instrumental in helping structure USI’s proprietary FoodSafe program, an inventory protection program that aims to reduce the total cost of risk for companies facing supply-chain risks. Recently, Cahoon and his team responded to an RFP from a middlemarket frozen food processing company, identifying more than 25 areas where the company improve coverage and reduce costs to create a more seamless insurance program. Through the years, Cahoon has shared his knowledge and expertise via speaking engagements with a variety of associations, including Food Northwest and the Washington State Tree Fruit Association. He also helps lead USI Northwest’s private equity solutions team.
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26/10/2018 6:03:57 AM
EMILEE KUHN Senior vice president, lender products ARCH INSURANCE COMPANY Age: 34
As the youngest profit center head at Arch Insurance Group, Emilee Kuhn is responsible for setting the strategic direction and overseeing all operational and underwriting aspects of the lender products division, which focuses on underwriting specialty commercial insurance products for financial institutions and auto/vehicle dealers.
Under Kuhn’s leadership, the team generates more than $150 million in premium annually. Kuhn started her career as an actuary at Allstate before moving to Arch Insurance and becoming the lead pricing actuary for the lender products division. After receiving her fellowship with the Casualty Actuarial Society in 2010, Kuhn remained active in the organization and won the Best Session Award for her Ratemaking and Product Management Seminar in 2011 and the Above and Beyond Achievement Award in 2015 for her volunteer efforts. She is also a member of the American Academy of Actuaries.
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SPECIAL REPORT
YOUNG GUNS 2018
DAVID FISHEL Executive vice president HIGGINBOTHAM Age: 30
Just 30 years old, David Fishel is one of the youngest producers to earn the title of executive vice president in
Higginbotham’s 70-year history. Before joining Higginbotham in 2013, Fishel helped open the Fort Worth office of Talon Insurance Agency, which was later acquired by Higginbotham. While Fishel has clients across several industries, he focuses on the construction, manufacturing and oil & gas sectors. In addition to being a producer, Fishel helps mentor and run Monday morning meetings for new producers and serves on the firm’s sales strategy advisory committee, which helps with special projects. Fishel gives back to his community through Make-A-Wish and the Fort Worth Ronald McDonald House. He’s also a recent graduate of Leading Edge, a leadership program for young professionals in Fort Worth.
TIMOTHY ZUFALL Producer RCI INSURANCE Age: 28
Timothy Zufall’s insurance career started when he met his current boss at a charity basketball game and eventually landed a job selling insurance. “It has been the best choice I have made, and I love it,” he says. “It’s a great job being a producer … My main responsibility is to help as many people as I can with their insurance needs. I also try to be a sponge and learn as much as I possibly can.” With less than two years of industry experience under his belt, Zufall is already making impressive strides. His book is currently worth nearly $250,000, and he has written over $1.2 million in premium in just eight months and is on track to hit $1.5 million in premium for the year. In addition, he has almost doubled his client base in the past year. Recently, Zufall won Union Standard Insurance Company’s Heavy Hitter contest, which recognizes the topproducing agent in a region.
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M. KELLY REED Risk advisor VAST, AN ACRISURE PARTNER AGENCY Age: 34
Kelly Reed joined VAST more than a decade ago and has focused on growing and developing the firm’s healthcare
provider practice. Reed plays an integral role in Acrisure’s national healthcare vertical and the expansion of the business nationally through organic growth. Reed has also advised multiple healthcare clients through mergers and acquisitions. In 2016, Reed was awarded ProAssurance’s Young Agent of the Year Award, and he was also one of the founding members of the company’s NextGen committee. This year, he was co-chair of ProAssurance’s Enterprise Agents Council. In addition, he is a member of the Professional Liability Underwriting Society, co-chair of the program committee for the Marquette County Economic Club and past co-leader of his local Young Pro Elite chapter. He also volunteers with Marquette County Young Sports.
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LAUREN BORDONARO Vice president, commercial insurance USI INSURANCE SERVICES Age: 31
Lauren Bordonaro started her career in 2009 as a relationship banker with First Niagara Financial Group before transitioning into the role of junior financial advisor, where she handled consumer and small business retirement planning. Following FNFG’s acquisition of HSBC Bank branches, she transferred to the insurance team. Since moving into insurance, she has established a book a business, assisted in the transition of predecessors’ client accounts, and managed both internal and external client relationships. Earlier this year, as the result of another acquisition, Bordonaro joined the USI team, where she now serves as vice president and commercial lines producer. Outside of insurance, Bordonaro is active with Leadership Buffalo, Susan G. Komen of West New York and St. Mary’s of Swormville.
JOHN MCKAY Director of sales operations EZLYNX Age: 34
JUSTIN LEHTONEN Vice president WORLDWIDE FACILITIES Age: 33
At Worldwide Facilities, Justin Lehtonen specializes in the placement of insurance coverage for medicinal and recreational cannabis dispensaries, grow facilities, genetics facilities, R&D laboratories, and testing and extraction facilities. In addition to advising many startup cannabis businesses throughout the US, Lehtonen has worked with insurers to develop and deploy new product offerings, rating methods and coverage forms for this industry.
Like many in the insurance business, John McKay fell into industry by accident more than a decade ago. After graduating from the University of North Texas, he began selling agency management systems to independent agents across the US. He’s spent the past five years as director of sales at EZLynx, where he leverages his past sales experience to bring unprecedented growth to the company’s top line. While he wears many hats within the organization, McKay focuses on bringing new processes, efficiencies and ideas to the departments he oversees. His deep knowledge of the technology leveraged by independent agents has contributed directly to innovation at EZLynx.
STEPHANIE MITCHELL Assistant vice president, property & casualty broker SOCIUS INSURANCE SERVICES Age: 31
Stephanie Mitchell began her insurance career in 2009 after earning a degree in multinational business from Florida State University. Over the next five years, she worked as a P&C broker while earning CPCU and CIC designations. In 2014, Mitchell joined Socius Insurance Services as assistant vice president, specializing in placing excess & surplus lines property, casualty and environmental business. Two years ago, Mitchell received the Socius Award for Outstanding Salesmanship, and last year, her team was recognized with the Socius Award for Outstanding Sales Team. Outside of the office, she is a member of the Insurance Agents of Tampa Bay, the Pinellas Association of Independent Agents and the Lee County Association of Independent Insurance Agents.
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SPECIAL REPORT
YOUNG GUNS 2018 KELSEY CLOSSON Underwriting manager K&K INSURANCE GROUP Age: 34
Kelsey Closson has more than 10 years of experience in the insurance industry. She honed her skills in K&K Insurance Group’s motorsports division as a senior underwriter, managing a book of more than 300 motorsports accounts with premium exceeding $5 million. In just four years, Closson achieved premium
WOODY STANCHINA Production underwriter CONTINENTAL UNDERWRITERS INC. Age: 25
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growth of 57% and was the key player in implementing an automated process that increased efficiency by more than 70%. Closson’s record of success and deep understanding of the motorsports insurance industry led to her recent promotion to underwriting manager for K&K’s motorsports division, where she oversees a team of underwriters. In addition, she chairs the company’s employee motivation committee, planning numerous events and celebrations for 500-plus colleagues.
In college, Woody Stanchina was already set on entering the insurance industry, working on his degree in risk management and insurance and serving as vice president of Gamma Iota Sigma, the international risk management, insurance and actuarial science fraternity. It was also during this time that he first joined Continental Underwriters Inc. as a risk assessment intern, and his strong work ethic and drive for success made him a good fit for the team. Upon graduation, Stanchina became part of Continental’s forest products/ manufacturing team. As a production underwriter, he works directly with agents, brokers and carriers to underwrite and place forest products risks. Outside of his work at Continental, Stanchina is co-president of the Gamma Iota Sigma Alumni Council of Richmond, helping to connect young professionals in the insurance industry with students and each other. In addition, he is a member of the Chesapeake regional committee of the Inland Marine Underwriters Association.
BLAKE MCEACHERN Vice president ACENTRIA INSURANCE Age: 29
As an integral part of the Acentria team and a member of its agency council, Blake McEachern assists the senior leadership in streamlining processes, improving existing systems, and gathering and providing valuable feedback from a producer’s point of view. Having built a solid book of business at a young age, McEachern has earned the respect of his peers and clients, and is able to effectively mentor the next generation of producers. Outside the office, McEachern volunteers with the Emerald Coast Autism Center and the Children’s Volunteer Health Network.
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PATRICK EVERSULL Vice president, underwriting manager
JOI BLUME
ENVIRONMENTAL & ENERGY UNDERWRITING MANAGERS Age: 30
Associate underwriter BLUE RIVER UNDERWRITERS, A BRECKENRIDGE INSURANCE GROUP COMPANY Age: 35
Joi Blume has been integral to the success of the property program team at Blue River Underwriters, having established a track record of double-digit year-over-year premium growth. She received the Gold Miners Growth Award in 2016 for increasing written premium in the specialty property programs book by 25%. She was also instrumental in helping Breckenridge Insurance Group win the award for Best Wholesale Specialized Practice in Commercial Property at the 2017 Insurance Business America Awards. In addition to her day-to-day responsibilities, Blume heads the diversity and inclusion committee for Breckenridge Insurance Group. She has facilitated a diversity panel discussion at an industry conference and recently helped launch the Atlanta chapter of the Association of Professional Insurance Women. Blume is also a regular volunteer for various causes, including the Atlanta area St. Jude’s Children’s Research Hospital’s annual fundraising gala and the Special Olympics. A member of the Alpha Kappa Alpha Sorority, Blume serves as mentor and role model for many other professionals.
From an early age, Patrick Eversull witnessed how his father successfully ran an insurance business. Armed with that knowledge and the desire to bridge the insurance gap, Eversull decided to branch
out on his own and set up Environmental & Energy Underwriting Managers [EEUM] to provide perfectly tailored coverage to smaller risks that were being ignored by most carriers. At EEUM, Eversull manages the day-to-day operations while working alongside carriers, maintaining excellent relationships with brokers and training his entire staff to better understand the balance between the market, insureds’ needs and carrier capabilities. Now in its third year in the industry and its second year of profit, EEUM continues to dominate the competitive markets with its innovative strategy. Eversull addresses the need for product development through his other business venture, working to provide advanced rating systems, quick policy issuance programs and online rating systems so carriers can stay ahead of the digital curve in insurance.
ANDREW VAN GESSEL Claims manager K&K INSURANCE GROUP Age: 29
Just a year after Andrew Van Gessel got his start in insurance at K&K Insurance Group, he was already handling large and complex property losses for K&K’s claims department, including several multimillion-dollar losses. In the five years since he joined K&K, Van Gessel has been promoted three times; he now oversees all property and auto claims, with seven direct reports, and is currently handling the largest property loss in company history. In addition to his claims responsibilities, Van Gessel has taken part in drafting several client-specific policies in conjunction with K&K’s underwriting department, and he routinely works with underwriting to solve complex coverage issues for clients.
FUN FACT Outside of K&K, Van Gessel operates a grain farm with his father.
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FEATURES
SECTOR FOCUS: PROFESSIONAL LIABILITY
Professionally speaking Professional liability insurance is particularly crucial for modern businesses. IBA uncovered the potential exposures your clients need to know about
WHAT DOES EPL COVER? Discrimination, sexual harassment Wrongful termination Third-party liability Breach of contract Failure to employ/promote Wrongful discipline Failure to grant tenure Defamation, humiliation, mental anguish Libel, slander
PROFESSIONAL LIABILITY is a wideranging product that’s required by a significant number of American businesses. Pretty much any company that provides professional services to clients faces the risk of being sued if the services they perform cause injury, financial loss or reputational damage. From architects and dentists to law firms and restaurants, organizations in all industries and of all sizes face some level of professional liability risk.
be held by every company that employs staff. EPL policies provide coverage for an array of employment-related exposures, including wrongful termination, sexual harassment and discrimination, breach of contract, and failure to employ/promote. “Some policies go well beyond the basic coverages to include coverage for claims arising from third parties – a critically important coverage today,” says
“Underwriters are responding to the current climate surrounding sexual harassment by limiting coverage and increasing rates for those organizations with significant exposure” Robert Sargent, Tennant Risk Services One of the most important forms of professional liability insurance is employment practices liability [EPL] coverage. EPL protects an organization and its employees from legal judgments and related expenses resulting from allegations of wrongful acts. It’s an important type of coverage that should
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Robert Sargent, executive vice president at Tennant Risk Services, a division of Worldwide Facilities. “Third-party liability coverage would typically respond to claims from third parties, such as customers or vendors, involving discrimination or sexual harassment.”
Invasion of privacy Civil rights violations
In today’s climate, broader policies are more important than ever before. With the heightened awareness of sexual harassment, most organizations need broad coverage to ensure they’re protected in the event of any unexpected claims. As Sargent explains, there is no ‘one size fits all’ policy when it comes to EPL. The varying level – and type – of risk means that brokers and agents often need to find a unique combination of coverage for each client. “Underwriters are responding to the current climate surrounding sexual harassment by limiting coverage and increasing rates for those organizations with significant exposure,” Sargent says. “In addition, underwriters will expect exposed organizations to have strong risk management programs, including training and policies, along with enforcement.”
Managing today’s EPL risk Despite the strength and flexibility of many modern EPL policies, the coverage should not be seen as a replacement or substitute for a
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well-thought-out risk management program. Organizational leaders need to be made aware of the risks they face in the modern employment landscape and find ways to address them. In 2018, employee grievances are often not so easy to spot. “An organization that does not have strong training, policies and procedures related to employment and sexual harassment, along with comprehensive employment practices liability insurance, is exposed to significant financial and reputational loss,” Sargent says. “Even if the organization did nothing wrong, significant exposure to legal expenses is possible.” As with many other insurance segments,
the EPL space is highly competitive. Underwriters are under pressure to balance underwriting profitability with market pressures; they are challenged to seek more rate in a market segment that has a potential for eroding loss experience, while market pressures force them to create broader coverage options at competitive prices. “The current heightened awareness related to sexual harassment is changing the focus on EPL placement and underwriting for many types of organizations,” Sargent says. “Underwriters are concerned about a potential wave of sexual harassment claims from employees and from customers and vendors. Given the market, underwriters are
reviewing accounts closely, and brokers are recommending broad coverage, often with increased limits.” Another challenging area for many modern organizations is wage and hour claims, which most policies either don’t cover or provide limited coverage for. Wage and hour claims typically allege violations of wage and hour laws and are sometimes brought as classaction suits. “Wage and hour claims are on the rise and can be expensive, so most insurers are providing only limited coverage, if at all,” Sargent says, “but coverage is available for some types of accounts, depending on the jurisdiction.”
Safety National’s approach to providing superior customer service distinguishes us in the marketplace. With a culture built on relationships and over 75 years of expertise to design creative solutions, employers can trust that we have their specific interests in mind.
ON DO E ES SIZ FI E N T AL OT L
How can we help?
Contact us to learn more about the tremendous value of a Safety National partnership.
SafetyNational.com 888.995.5300
OUR PRODUCTS Workers’ Compensation: - Excess - Large Deductible - Large Guaranteed Cost Commercial Auto
Commercial General Liability Public Entity Liability: - Law Enforcement Liability - Public Officials Liability - Educators Legal Liability
Cyber Risk Reinsurance Loss Portfolio Transfers Captive Services Self-Insurance Bonds
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FEATURES
SECTOR FOCUS: PROFESSIONAL LIABILITY
Economic and social drivers The condition of the EPL insurance marketplace is tied closely to the overall temperature of the national economy. Many EPL claims are attributed to the hiring and firing of employees, and when the economy struggles like it did during the 2008 financial crisis, there’s naturally a higher turnover of staff and an increased number of companies closing their doors. If the economy is growing and everyone is making money, the unemployment rate is low, and those are the most profitable years for the EPL market. When the economy starts to dip, claims frequency starts to increase. “During the last financial crisis, many companies were letting employees go and giving them six- or nine-month severance packages,” says Michael Kinsley, head of management liability products at NAS Insurance. “But in many cases, people couldn’t find new jobs and were forced to bring claims against their old employers just to survive. Those were not necessarily claims for wrongful termination; they could also have been things like a claim for harassment that happened at a Christmas party five years ago.” Many economists are predicting that the current bull market has entered its final stages, which means the EPL marketplace could be in line for an influx of claims in the near future. For an organization that doesn’t hold a robust EPL policy, the consequences could be catastrophic. Claims could come from a salesperson who left the company three years ago or a temporary employee who interned for the summer. And those claims could encompass anything from wrongful termination based on racial discrimination, failure to promote or sexual harassment, which Kinsey describes as the “low-hanging fruit” because “it is easy to allege and difficult to disprove.” The US Equal Employment Opportunity Commission [EEOC] is, according to Kinsey, very claimant-friendly and often leans in favor of the employee. Although the EEOC does not make the final decision, they do issue a right-
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to-sue letter, which is an important first step in the process. “The Trump administration has put in a new EEOC chair who is hot on tightening up
component of the massive employment practices liability spectrum. For insurers, it’s a space that is difficult to get right. Heightened awareness around sexual harassment and
“The biggest asset in this space is your data … That gives you a better understanding of rates, retention and claims trends and can help differentiate you from the competition” Michael Kinsley, NAS Insurance the interpretation of the laws related to transgender discrimination and sexual identity issues,” Kinsey says. “In the past 10 to 15 years, those laws have been interpreted very loosely, and the EEOC is trying to tell the US Congress to write laws that actually are enforceable and targeted to these specific issues so that a sexual discrimination law is not interpreted into a gender discrimination case.” Sexual discrimination is a timely issue that organizations and insurers are being forced to deal with, but in reality, it’s just one
workers’ rights is clearly a positive, but it also creates scope for increasing numbers of complex and costly claims. “It’s a tough spot for insurers, and there’s a lot that goes into managing an EPL book properly,” Kinsey says. “There are a lot of moving pieces and things to consider. The biggest asset in this space is your data – data that you can capture on your previous books of business. That gives you a better understanding of rates, retention and claims trends and can help differentiate you from the competition.”
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PEOPLE
CAREER PATH
LIFELONG LEARNER
Kitty Ambers has built her career around amassing a body of knowledge and using it to train others A phone call from the minister of the church in Ambers’ hometown culminated in a major life lesson “He asked me to get involved and I said, ‘Sure.’ Then he called back and said he had assigned me the sermon. I was not a public speaker, but I managed to get through it. It was a pivotal learning experience because I was terrified. I don’t think anyone now would believe how afraid I was to talk in public then”
1984 PUSHES THROUGH
1985 MOVES WITH THE INDUSTRY Growing up in the third generation of an industry family, insurance was so much a part of Ambers’ life that her educational plan included working at her parents’ agency “I learned all facets of the business during the time when we were transitioning to an automated environment. We installed our first agency management system in 1984 – before that, it was paper-based. I became a licensed agent so I could fill in on the phone during data entry”
1986 TAKES AN UNEXPECTED TURN Planning to eventually take over the family business, Ambers alternated quarters at school with quarters working at the agency – until her parents got an offer to sell “Dad sat me down and said he had been made an offer. I said, ‘You do what’s best for you; I’m sure I’ll be all right.’ I needed to decide what I could do with this experience I had started to collect, which drew me to associations”
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1995 GOES OUT ON HER OWN While pregnant with her second child, Ambers founded her own industry training and consulting firm, Ambers & Associates “I wasn’t interested in working for someone else. I was fairly confident that if I could become a difference-maker and an implementer, I would not have a problem attracting clients. I would be the person who would take all the things they learned during industry seminars and get it done”
2013 BECOMES CEO Ambers signed on as CEO of NetVU, noticing an opportunity to influence the entire insurance industry via a member base of more than 30,000 insurance firms and 500,000 individuals using Vertafore products ”Embracing the challenges and opportunities that technology provides to move the industry ahead, I thoroughly enjoy working with our talented staff, board of directors and hundreds of volunteers at NetVU to help agents navigate technology, optimize carrier relationships and transform the way the industry does business”
LEARNS AND EDUCATES As director of member services for the PIA, Ambers worked to ensure members had access to services that were meaningful and relevant to them. She contributed to everything from community involvement projects to legislation to make education part of an agent’s development path
“I took the technical knowledge I’d amassed and translated that into training and education for the membership. My entire life has been about learning – it never ends” 1997 FINDS AIMS Ambers’ skill set proved to be a perfect match with the open position of executive director for the American Insurance Marketing and Sales Society, a national organization that provides P&C insurance professionals with interactive marketing and sales training, information on innovative tools and technology resources, and networking opportunities
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PEOPLE
OTHER LIFE
TELL US ABOUT YOUR OTHER LIFE Email iba@keymedia.com
“Y ou don’t have to be flexible to do yoga,” Blessing says. “Y ou do yoga to get flexible.”
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Types of yoga Blessing practices (yin, vinyasa and yoga sculpt)
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Typical number of poses in one of Blessing’s vinyasa classes
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Hours of teacher training Blessing has undertaken
BY ANY STRETCH When she’s not assisting clients, Patience Blessing is helping others discover the joy of yoga CHICAGO-BASED insurance broker Patience Blessing found yoga at the age of 16 – as an exchange student in Paris, she was reluctant to enroll in dance classes due to the intimidating language barrier. The yoga instructor at the studio close to her St. Germain home, however, taught in English. Blessing was immediately hooked; she
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took her first yoga teacher training the summer she finished high school. The intensive week-long course demanded eight to 10 hours a day, with a formal 10-week teacher training the following year, but ultimately, Blessing saw her passion become a part-time job. As a university student, she led impromptu classes for her housemates, which over
time transitioned into a paid position teaching at the school’s recreation center and additional studios in town. Today, Blessing says teaching is the aspect of her practice that gives her the greatest joy. “There’s a disconnect for most people in their perception of their bodies,” she says. “Yoga focuses on the mind/ body connection.”
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Expect big things in workers’ compensation. Most classes approved, nationwide. It pays to get a quote from Applied.® For information call (877) 234-4450 or visit auw.com/us. Follow us at bigdoghq.com. ©2018 Applied Underwriters, Inc., a Berkshire Hathaway company. Rated A+ (Superior) by A.M. Best. Insurance plans protected U.S. Patent No. 7,908,157.
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