IN THIS ISSUE 6
CHART SUCCESS STORIES! Our theme for the October CHART Exchange event is success stories and we will assemble over three hundred of the most innovative specialist insurance people...
9
“YOUR DATA” IS “BIG DATA” Accuracy in harvesting big data may lead to more proactive decisions regarding business operations which will result in positive impacts to the bottom line.
13
Convention Registration Vendor Registration Hotel Registration Meeting Agenda
LLOYDS TRIES DIGITAL This past July, Lloyds sold its first policy online in an attempt to modernize their practices. The sell was a terrorism policy...
10
6
Register Now!
Event Calendar
Get Ready For The Insurance Event Of The Year!”
14
October 3-5, 2016
Baltimore Marriott Waterfront 700 Aliceanna Street Baltimore, MD 21202, US
18
In order to address this issue, we launched The CHART Exchange Magazine. This digital publication is distributed to over 100,000 individuals monthly.
MODERNIZING THE LONDON MARKET Two central objectives are at the core of the TOM. The first is a universal way to input data on behalf of all carriers and brokers to reduce risk and costly reentry. The second is a centralized administration and non-competitive services, which allow insurers and brokers to concentrate on their key business tasks.
CHART EXCHANGE OBJECTIVE #5
General Event Info
16
CHART EARLY ADOPTERS BILL OF RIGHTS RESOLVED by the Coverholders, Prospective Coverholders, Risk Takers, and Vendors assembled, that the following Articles be proposed as amendments to the Declaration of Interdependence.
SPOTLIGHT: YORK RISK SERVICES GROUP York Risk Services Group, Inc. is honored to be a Preferred Strategic Partner of the CHART Exchange. We will actively participate in all events to help grow the EXCHANGE for the benefit of its members.
20
EMERGING MARKET DUE TO SHOOTING EVENTS Coverage for this emerging market is not limited strictly to firearms and covers explosives and other weapons used to carry out incident.
CHART Exchange 24
CHART: IT’S ALL ABOUT OUR PARTNERS Introducing the services of Prospect Insurance Brokers, a dynamic and entrepreneurial Lloyd’s of London broker working with potential Coverholders and existing Coverholders to develop and place business with Lloyd’s syndicates.
26
THE BOOK ROLL STRATEGY: This Book Roll strategy offers a unique opportunity for program managers and MGA’s to maximize the commission and fee income stream of their existing books of business without selling their agency. This strategy is ideal for principals that recognize the value of the business they produce but are not interested in divesting ownership.
31
AIG UK BREXIT NEWS Despite any new developments between the UK and the European Union since the surprising ‘vote to leave’, American International Group, AIG, is tacking on Brexit coverage for their existing director and officer policy holders.
32
HISCOX LTD. SEEKS TO STABILIZE Look for Hiscox and other Lloyds syndicates to rely more heavily on business with the U.S. as it is less expensive and speculative alternative to the EU market.
33
SPOTLIGHT: PROSPECT INSURANCE BROKERS Bridging The Gap: Prospect Insurance Brokers are an independent, privately owned LLoyd’s of London Broker formed in 2010. We are a dynamic and entrepreneurial company with exceptional market relationships across all lines of business and we tailor solutions to fit our clients’ needs.
Prefer To Read The CHART Exchange In PDF Format?
August-September 2016 VOLUME 1 - ISSUE 6 Publisher:
CHART Exchange Glenn W. Clark, CPCU
Membership Services Matt Basile
Advertising:
Tyler Cichewicz
Managing Editor: Tyler Cichewicz
Contributing Editor: Frank Huver
Subscriptions: Tyler Cichewicz
Layout, Design & Circulation: Ron Manera AdMax Corp., Inc.
CHART Exchange info@chart-exchange.com 3001 Philadelphia Pike Claymont, Delaware 19703 www.chart-exchange.com 302-765-6001 Last Issue:
Download PDF Version HERE
Cover Image Credit: Creative Commons
www.chart-exchange.com
TABLE OF CONTENTS
AUGUST-SEPTEMBER 2016
3
OUR TEAM IS THERE FROM THE START TO THE FINISH NSM Insurance Group Comprehensive Insurance Coverage for: Social Services I Addiction Treatment I Professional Liability Staffing Firms I Workers' Compensation I Collectible Vehicles Coastal Condo Associations I Breweries and Wineries Sports and Wellness I Specialty Aviation
888-235-3525 www.nsminc.com
NEVER MISS AN ISSUE OF CHART
EXCHANGE SUBSCRIBE NOW
SUBSCRIBE TO CONTINUE TO RECEIVE THE CHART EXCHANGE
Message From The Earliest Adopter
SUCCESS STORIES! The October CHART Exchange Event In Baltimore May Be The Most Important Event You Attend This Year!
F
Success Stories!
How do London Syndicates differentiate themselves?
irst a small “test”. Would you rather associate with Hear directly from 15-20 Risk Taker firms to learn what makes someone: each of them unique. 1. Who can point out all the reasons your plans will fail, or, 2. Who is full of ideas to help your plans succeed?
Our theme is success stories and we will assemble over three hundred of the most innovative specialist insurance people in the industry.”
If you answered “2”, you belong at the CHART Exchange event in Baltimore, MD. The meeting will be held October 3-5, 2016 at the Marriott Waterfront Hotel. Our theme is success stories and we will assemble over three hundred of the most innovative specialist insurance people in the industry. Vendor Partner Each attendee vendor partner, Success Stories Syndicate (London Risk Taker), and agency is asked to subscribe Wilson Elser, State National, to our core theme: NetRate, PL Communications, Ex’-Change: “to give up York Risk Services, Vantage Agora, Value Momentum, something of value in order TAA-Inc, Triton Global, to gain something of greater Vertibrands, Promotions Kartel, Beach Group, value” Kroll, TriFit Business Development, i3 Analytics, and NARS. Telling Via their “stories” through their stories through the agencies agencies who’ve prospered, we’ll they helped to grow…and how explore strategies that make our they have prospered their clients via the London Markets. members successful.
6 March 2016
TABLE OF CONTENTS
Glenn W. Clark, CPCU Publisher & Earliest Adopter
London Broker Partners C.J. Coleman, JLT Re, & Prospect Insurance Brokers
Acquisition and Perpetuation Models NSM, Hilb Group, M&A Services. Hint: Successful agency M&A is not all about price. It is about people!
Agency Networks and Differentiation
SIAA (Jim Masiello is Wednesday’s keynote speaker), BIGN (Scott Addis), ARM South (Calvin Foster).
MGA/MGU Differentiation Hear from Ridge Global (Tom
www.chart-exchange.com
CHART Exchange
Ridge – First Director of Homeland Security and two-time Pennsylvania Governor is our Tuesday keynote speaker), Roundstone (awardwinning benefits captive), E-Risk Strategies (tax efficient use of captives), SequreU, and PGMNV.
Register Now! Convention Registration Vendor Registration
Need a few days away from politics, Brexit, and Kim Kardashian (we sure do)? Want to be around three hundred plus “Early Adopters” who exemplify the concepts of Exchange? Have a success story of your own to share? Register for the CHART Exchange today!
General Event Info
P.S. If you don’t have your own success story, register anyway. Maybe we’ll be “boasting” about
October 3-5, 2016
Hotel Registration Meeting Agenda Event Calendar
Take some time to read through the “CHART Exchange.” We’d love to get your feedback and have you join us as an Early Adopter.”
Baltimore Marriott Waterfront 700 Aliceanna Street Baltimore, MD 21202, US
Glenn W. Clark , CPCU www.chart-exchange.com
TABLE OF CONTENTS
AUGUST-SEPTEMBER 2016
7
it’S
your way. the highway. and
Selling your buSineSS raiSeS SeriouS queStionS. What will be your role? Will they keep your team? What will happen to your legacy? When you join our company, you become more than just an asset. You become a partner in our success. Our strategy is simple: acquire the strongest players in the market, then collaborate with them to drive organic growth. The Hilb Group builds on your firm’s foundation by providing strategies, resources and support to achieve new heights of success. We want you to contribute until you’re ready to move on. And the business you built continues to grow and be nurtured, allowing your team to continue its success.
if thiS SoundS like the kind of firm you’d like to join... You owe it to yourself to contact Bob Hilb, CEO, at (804) 414-6505 or rhilb@hilbgroup.com. He can help you explore your options and ensure that your next step is on your terms.
The hilb Group is a Top 100 US insurance agency focused on providing Property & Casualty insurance and Employee Benefits to small to mid-size businesses. Learn more at HilbGroup.com
NEWS-ANALYSIS
LLOYDS TRIES DIGITAL
By Tyler Cichewicz
class of business that was fairly tight in terms of number of or over 300 years Lloyds of brokers and carriers- we’re going London has done business live with nine brokers and 42 face-to-face and on paper. carriers,” Ledger says. “The next Brokers meet with Underwriters line is professional indemnity, and a decision about coverage is reached, whether this was for David Ledger, the chairman of which is much broader from a ship’s cargo or Bono’s vocal the company running the new the perspective of brokers and carriers.” chords.
F
Brokers and Underwriters were encouraged to use Ipads instead of paper but as with other attempts, this new method did not take to the market as a whole and failed to last.
Image Credit: Creative Commons
This past July, in an attempt to modernize, Lloyds sold its first policy online. The sell was a terrorism policy and is part of a string of reforms called the ‘Target Operating Model’ aimed to make the London Market friendlier for commercial insurers to do business.
Eventually this system will be extended to the entire market but that will take about two years.
“The basic reason [past efforts] failed was that it was never possible to get unified agreement In July of this year, Lloyd’s sold their first online policy, a terrorism contract. across the “This opens a new chapter on system, says the online method market,” Ledger says. “This is how we do business,” says Ben allows brokers and underwriters the first real example where Reid of the London Market to see policy information in the whole market has come Group, an insurance association. detail and will cut costs, reduce together.” error, and improve security. This new chapter will run in With the effects of Brexit tandem with London’s traditional Terrorism policies were selected pending and the passporting face-to-face method. because of their small market rights of UK businesses in and are being used as a trial jeopardy, it is more pressing Lloyds of London has made policy for this new method. that London finds ways to stay attempts in the past to modernize “We wanted to go live with a competitive. their transactions. More recently, www.chart-exchange.com
TABLE OF CONTENTS
AUGUST-SEPTEMBER 2016
9
Analysis
“YOUR DATA” IS “BIG DATA” By Mark Stroop, NetRate Account Exec.
Image Credit: Creative Commons
“
Big Data.” you have most likely heard the term mentioned as one of the top IT initiatives over the past several years. Wikipedia summarizes big data as a term for “data sets that are so large or complex that traditional data processing applications are inadequate. Shortcomings include the many challenges involved in analysis, capture, storage, querying…..” 10
AUGUST-SEPTEMBER 2016
Some goals of the successful use of big data include; predictive analysis, user-behavior analytics and other methods that extract value from the data. Accuracy in harvesting big data may lead to more pro-active decisions regarding business operations which will result in positive impacts to the bottom line. One can see how insurance companies can benefit from the analysis of data sets to spot things such as coverage versus TABLE OF CONTENTS
claim activity and other important actuarial trends. Many carriers today have the capture and analysis of data on their list of priorities and much investment is going towards systems and personnel that manage, maintain and analyze big data and its data warehouses. In most cases this is a significant project due largely to the many different systems and databases involved between the initial quote and sale of a policy, through the See BIG DATA Pg 30 www.chart-exchange.com
News
Lloyd’s Coverholders Rating & Policy Issuance Solutions
Submissions Rating Policy Issuance Underwriting Quoting Reporting
Introducing the all new...
NetRate Portal Your insurance processing solution in the cloud.
All together in an accessible anywhere, easy to use platform. “We have one source for our rating, quoting, pulling data for proposals and updating any information once coverage is bound and the policy is issued... ...NetRate solved our workflow nightmare.”
Tina Land COO, Venture Insurance Programs
“Not only do they understand insurance terminology, but they also understand the flow of business.”
Jeremiah O’Donovan President, O’Donovan & Associates
For More Information, Contact NetRate Systems at 517.347.4900 www.chart-exchange.com
www.NetRate.com TABLE OF CONTENTS
AUGUST-SEPTEMBER 2016
11
GETTING CHART ExchangeFRUSTRATED TRYING TO LAUNCH A NEW INSURANCE IDEA?
OR COME TO THE CHART EXCHANGE AND MAKE IT HAPPEN Partner with Lloyd’s of London — the oldest, most recognized insurance brand in the world today. The CHART Exchange can show you how!
Join Us for The Second Annual CHART Meeting in Baltimore, MD Make plans to attend the Second Annual Coverholders and Risk Takers (CHART) Exchange meeting on October 3-5, 2016 in Baltimore MD. Our entire event is dedicated to growing the U.S./London marketplace through the identification and pursuit of new business opportunities. • Personally interact with Risk Taker (Syndicate) and existing Coverholder representatives with decision-making authorities • Obtain market finder assistance for new program or product ideas. We even make your Risk Taker appointments for you! • Fast track the launch of a new business plan through our exclusive incubator program • Meet Vendor Partners who help you to create a competitive advantage • Enter CHART’s version of the Shark Tank competition to win $10,000 in funding for your idea! Visit our website — www.chart-exchange.com for a full list of benefits and instructions on how to register for this exclusive event. Have questions? Send your inquiries to info@chart-exchange for immediate response.
www.chart-exchange.com The CHART Exchange 3001 Philadelphia Pike Claymont, DE 19703 Phone (855) 716-3660 Fax: (302) 334-0325
12
AUGUST-SEPTEMBER 2016
TABLE OF CONTENTS
www.chart-exchange.com
News
MODERNIZING THE LONDON MARKET
By Tyler Cichewicz
reduce the cost of doing business.”
R
oughly a year after the Previous attempts to modernize London Market Target Lloyds have failed because those Operating Model (TOM) efforts were too isolated and did was announced, details about the not establish themselves across plan to modernize and keep the the market. The TOM contrasts London Market competitive was these past attempts with a slower explained by Shirine Khoury-Haq integration into business. to an audience at the London Market know Two central “We Group Forum. objectives why they [past Khoury-Haq is Lloyd’s attempts] have of London’s Director are at the core failed…because of Operations and of the TOM. The the market never TOM sponsor at acted together the London Market first is a universal before,” KhouryGroup. way to input Haq says. Simply put TOM attempts to digitize the platform and connection of the London Market by streamlining processing and communication. The new system is designed to unite the chain of distribution from ‘buyer to broker to insurer’ and make doing business in the London Market easier locally and globally.
data on behalf of all carriers and brokers to reduce risk and costly reentry. The second is a centralized administration and non-competitive services, which allow insurers and brokers to concentrate on their key business tasks.”
“Our overriding mission is to make the market highly accessible, efficient and relevant to the needs of our customers,” Khoury-Haq says. “We want to deliver simplicity and www.chart-exchange.com
TOM recognizes the common risks that face any change to a system. There is a risk that new efforts will fail, exasperate the problem by handicapping the way business is already done, and waste significant amounts of time and funds. However, the TOM is not expected to be installed overnight, but to be integrated in with different types of coverage.
modernization boils down to this,” Khoury-Haq says, “We all are working to safeguard our future.” Two central objectives are at the core of the TOM. The first is a universal way to input data on behalf of all carriers and brokers to reduce risk and costly re-entry. The second is a centralized administration and non-competitive services, which allow insurers and brokers to concentrate on their key business tasks. Khoury-Haq stresses that the challenge is not building the system rather that it will be adopted by the market, which has proved difficult in past attempts to modernize the world’s oldest insurance market. “Any further process model should support both face-to-face and entirely electronic trading,” KhouryHaq says, “It should aim to deliver benefit to all practitioner firms; and it must be aimed at preserving the benefits that a subscription market delivers.”
For a market that has done business face-to-face and on paper for over 300 years, it seems natural that change within the London Market may be met with dissonance. However, those behind the development of the TOM are aware of this and seem cautious in their approach to the TOM as a tool “The reason we are spending to be more effective, as opposed to so much time and effort on a new way of doing business. TABLE OF CONTENTS
AUGUST-SEPTEMBER 2016
13
Chart Objective #5
CHART OBJECTIVE:
CREATE A PUBLICATION THAT WILL ENABLE LONDON MARKETS TO COMMUNICATE WITH U.S. RETAILERS AND WHOLESALERS
W
ith a history going back nearly 328 years, Lloyd’s of London is widely recognized as one of the oldest insurance brands in the world. The insurer has been a major force in the United States for well over a century. Over 41% of Lloyd’s global annual premium comes from the U.S., with business consisting of primarily of surplus lines insurance and reinsurance. In 2014, that was $14.6 billion! Unfortunately, a number of domestic insurance agencies are either unaware of Lloyd’s capabilities or – worse still - operate under the misconception they are a market only for unique, hard-to-place specialty risks. Most of us know the stories about Lloyd’s providing coverage for Betty Grable’s legs, Jimmy Durante’s nose, Bette Davis’ waistline, and Bob Dylan’s vocal cords. Yet how many would still be
surprised to learn this same market domestic periodical is dedicated to paid $2.2 billion in net claims the London market. • Communicate changes that resulting from Superstorm Sandy? impact our industry. Recognized In order to address this issue, we specialists from various disciplines launched The CHART Exchange – regulatory, compliance, systems, Magazine. This digital publication legal, marketing, M&A, actuarial, etc. is distributed to over 100,000 – regularly contribute articles that individuals monthly. This circulation address relevant issues within the count includes U.S.-domiciled areas of their expertise. insurance agents, Syndicate staff • Heighten awareness. We offer members, and vendors who support advertising opportunities to the CHART membership. Vendor our unique market niche. Partners, Risk Takers, and current/ prospective Coverholders can take The publication is designed to: advantage of our distribution to • Serve as an advocate for the promote new products and services. U.S./London marketplace. The • Brag a little. The CHART Exchange magazine provides a forum through was established to expand the U.S./ which our readers can learn about London marketplace through the the various benefits of working with identification and pursuit of new business opportunities. Our efforts Lloyd’s of London. • Provide an information resource. to date have been nothing short Find out more about the newest of ground-breaking. We utilize the coverages being offered through magazine to let the industry know the various Syndicates. No other how we can be a catalyst for growth. Interested in learning more? Visit our website (www.chart-exchange. com) to view all of the prior editions of our digital magazine. Send us an e-mail at info@chart-exchange. com in order to be added to our distribution list. View All CHART Exchange Issues HERE!
14
AUGUST-SEPTEMBER 2016
TABLE OF CONTENTS
www.chart-exchange.com
THE EARLY ADOPTERS
BILL OF RIGHTS PREAMBLE The CHART Exchange begun and held at the City of Philadelphia, between Monday the twelfth and Wednesday the fourteenth of October, two thousand and fifteen. RESOLVED by the Coverholders, Prospective Coverholders, Risk Takers, and Vendors assembled, that the following Articles be proposed as amendments to the Declaration of Interdependence. ARTICLES in addition to, and Amendment of the Declaration of Interdependence, proposed by the Early Adopters and ratified by the Coverholders, Prospective Coverholders, Risk Takers, and Vendors attending the CHART Exchange event. FIRST AMENDMENT (Freedom of commerce and peaceable assembly). The CHART Exchange will foster growth in the U.S./London market by providing a forum through which Risk Takers and Coverholders can interact with domestic insurance agencies in the pursuit of new business opportunities. The event shall also provide a series of workshops moderated by CHART’s Risk Taker and Vendor partners. All attendees are expected to peaceably assemble at these sessions to expand their skillset and show support for the presenters. Participants shall be respectful of the efforts put forth by the moderators by not setting appointments during the times allotted for workshops. Ample time has been provided before and after scheduled events for holding individual meetings. CHART attendees are expected to follow the precepts of the “Golden Rule”: do unto others as you would have them do unto you. Individuals must be supportive and respectful of other participant’s efforts before presuming the same treatment from them. SECOND AMENDMENT (Right of attendees to bear business cards). Participants will be protected against spam and other forms of solicitation through the judicious and limited distribution of attendee lists. Business can best be conducted across long distances by first establishing the partnership through personal interaction. Participants shall network with others in attendance as a means of identifying new opportunities. THIRD AMENDMENT (Protection from enduring non-business activities). The CHART Exchange shall not schedule golf outings, formal dinners, or other social events, as these serve to distract attendees from the core purpose of getting business done. All participants are given the freedom to make their own plans after meeting hours. FOURTH AMENDMENT (Protection from unreasonable constraints on attendee time). The CHART Exchange shall be respectful of all attendees by making optimal use of the time they have allotted to participate in the event. Meetings shall start promptly at 8:00 AM. The agenda shall provide content designed to facilitate growth within the U.S./London market.
Im
FIFTH AMENDMENT (Due process and freedom from self-aggrandizing participants). The CHART Exchange shall recognize that all attendees are experts within their particular field of endeavor: risk evaluators/underwriters, product distributors, service providers, etc. As such, the meeting will be deemed as an assembly of peers. All participants are expected to check their egos at the door as part of the event registration process. Business casual shall be the dress of the day. SIXTH AMENDMENT (Judgment of new ideas by a trial of peers). All attendees shall have the right to submit their new business/marketing ideas for consideration within the Shark Tank/Dragon’s Den competition. Submissions shall be evaluated based on the innovative nature of the idea, viability of the product, and premium potential. Style points will also be awarded for the originality of the presentation itself. The winner shall be determined jointly by a panel of experts and the other attendees. The grand prize: $10,000 (£6,400). The Shark Tank/Dragon’s Den competition is sponsored by Iris Insurance Brokers. SEVENTH AMENDMENT (Civil treatment for all attendees). All participants shall have the right to expect civil treatment from all other event attendees. Moderators shall be shown respect by not having to compete with individually scheduled appointments during the times allotted for workshops. All attendees shall be granted the freedom of not having to be recipients of spam or other solicitations due to limited distribution of participant lists. Each Early Adopter is considered a full partner. EIGHTH AMENDMENT (Freedom from cruel and unusual keynote speakers). The CHART Exchange shall not retain the services of celebrity speakers to deliver speeches unrelated to the growth of the U.S./London market. Tuesday’s keynote address shall be presented by Jeff Tobe, a nationally sought after for his expertise in improving corporate profits by changing the customer experience and retaining great talent. Wednesday’s opening remarks shall be provided by Mark Cloutier, CEO of BRIT Insurance Holdings. Mr. Cloutier has extensive experience within the various aspects of the insurance transaction: as a risk-taker, product distributor, and as a vendor supporting the industry.
NINTH AMENDMENT (Enumeration of rights shall not be construed as anything critical of the great forces that build our profession). CHART recognizes the valuable role other association groups (AAMGA, NAPSLO, PLUS, TMPAA, IIABA, Trusted Choice, etc.) play within the U.S./London market. CHART shall honor the contributions these fine organizations already make and facilitate dialogue amongst risk takers, established Coverholders, U.S.based insurance agencies, and vendor partners as a means of surfacing new business opportunities. Further, the CHART Exchange shall elevate the role London Brokers play in mage credit: Lloyd’s of London the insurance transaction. Once an agreement on a new concept discussed at the meeting has been reached, risk takers and/or insurance agencies shall be encouraged to select the broker of their choice in order to transform it into a formal agreement. TENTH AMENDMENT (Powers of Risk Takers, Coverholders, Potential Coverholders, and Vendor Partners). Except for the Amendments articulated in the CHART Exchange Bill of Rights, attendees are free to pursue new business opportunities amongst themselves. Carpe Diem – Seize the Day!
Spotlight
YORK RISK SERVICES GROUP
York Risk Services Group, Inc. is honored to be a Preferred Strategic Partner of the CHART Exchange. We will actively participate in all events to help grow the EXCHANGE for the benefit of its members and look forward to meeting all current & prospective members.
Y
ork Specialized Loss Adjusting (SLA), a business segment within York RSG, Inc. is a premier provider of TPA Binder/Services, Specialized Loss Adjusting, Customized Claims Solutions, Risk Control and Catastrophic (CAT) Response Services for the Lloyds of London and the London company market.
claims handling team, we understand what our London partners need when it comes to the ever changing world of surplus lines of insurance. Because of this focus, our adjusters develop expertise in each binder, forming strong relationships with all partners; the carrier/syndicate, Coverholder, reinsurer, broker and/or retail agent.
BINDING AUTHORITY SPECIALIST TPA SERVICES
Through a significant investment, York has developed systems and reports specifically designed to be responsive to changing Our dedicated TPA operations are London market reforms configured to accommodate the and regulations. Powerful specific needs of each contract; management information (MI) from a designated account and trend analysis reports provide manager to an customers with the information e x p e r i e n c e d needed to make sound business
Aubrey Fountain is Senior Vice President of York Specialty Markets, with York Risk Services Group. He has been with York for 16 years. His primary goal is to continue to develop relationships & opportunities with both the London market & US Coverholders, while improving Operations as it pertains to binding facility & open market claims handling. For 27 years, he has served in technical & management claims positions with the primary focus being on providing excellent customer service.
18
AUGUST-SEPTEMBER 2016
TABLE OF CONTENTS
decisions and distinguish York as a leader in the binding authority business.
SPECIFIC EXPERTISE
York’s binder claims expertise, along with our extensive network of field and specialized loss adjusters throughout the US, gives us an edge with regards to the speed that we can respond and the clarity of our reporting and decision making. In 2013 York made a strategic acquisition to better serve the backroom and financial reporting requirements of the London markets. Backed up by an industry leading IT and Accounting team that can respond to changes in market requirements quickly and effectively, York is a leader in binding authority business.
24/7 ONLINE ACCESS TO YOUR CLAIM York’s claims system is accessible via the internet so our clients can have access to the bordereau, loss runs, MI reports and the individual claim itself among many other reports that can be configured to fit our clients’ needs. See YORK RISK SERVICES Pg 22 www.chart-exchange.com
Analysis
York Risk Services Group, Inc. is honored to be a Preferred Vendor Partner of the CHART Exchange. We are a premier provider of TPA Services, Specialized Loss Adjusting, Customized Claim Solutions, & Risk Control Services for Lloyd’s of London & the London company market. We offer:
Dedicated Binding Authority Adjusting Team Dedicated E&S/Specialty Lines Open Market Adjusters Back office team for banking, bordereau production, MI reporting Customized Physical Risk Assessments (Risk Control) Virtual Risk Evaluation Services To learn more, contact Aubrey Fountain, at 850.650.2380 or Aubrey.Fountain@yorkrsg.com.
www. YORKRSG .co m
www.chart-exchange.com
TABLE OF CONTENTS
AUGUST-SEPTEMBER 2016
19
News
EMERGING MARKET DUE TO SHOOTING INCIDENTS
A
By Tyler Cichewicz
new insurance market is emerging to help counter and repair the damage done by shootings in public places. The coverage addresses a gray area in insurance policies that may leave insureds susceptible to claims in the aftermath of an active shooter incident. Active shooter incidents are defined by one or more individuals who kill or attempt to kill people in a populated area, such as a school, church, or event. Coverage for this emerging market is not limited strictly to firearms and covers explosives and other weapons used to carry out incident. Shooting incidents are increasing according to a recent FBI study which found an average of one incident every three weeks. From 2000 to 2007 there was an average of 6.4 incidents a year, however in the last six years, that average has become 16.4 incidents per year. The number of incidents per year in 2014 and 2015 was 20. New programs have been launched in response to this growing concern. 20
AUGUST-SEPTEMBER 2016
Powter’s concern for this disconnect, is reflected in Paul Marshall’s, a program manager for McGowan Program Administrators, statement that there Policies cover both pre- and post- has been little case law to establish if active shooter incident services. an active shooter incident is covered Services focus on legal defense in the by insured’s GL or professional liability event of allegations of negligence policy. that failed to stop the incident from occurring. In addition, services will “What I tell my agents any time there also provide aid to those recovering is a new, unidentified, exposure is that the best way to manage that risk in from such an incident. the short term is with a named peril John Powter of GDP Advisors in Texas, policy,” Marshall says. says, “There is a concern, or gray area, with the general liability policy- in All classes of business will be reality it was never designed to cover considered for the coverage, which is available through a Lloyd’s line slip. an active shooter incident.” GDP originally launched the program for educational institutions, but received inquiries from a variety of other entities that hosted high volumes of people. Proud supporters of CHART
Serving coverholders’ needs since the 1930s … and into the future Bespoke solutions Packaged lines Enhanced commissions Web-based platforms US domiciled marketing office Access us through 170 Lloyd’s brokers
www.atrium-uw.com
AtriumUw Atrium Underwriters Ltd
TABLE OF CONTENTS
The real value of the policy is that the risk assessment includes an active shooter and vulnerability assessment along with preparedness seminars and training modules and crisis management. Powter says this coverage is important as it not only clearly articulates coverage for an active shooter incident, but it helps entities with the coverage to understand their risk and how to prepare and handle any such incident. www.chart-exchange.com
CHART Exchange THEY WROTE A SONG ABOUT THE LAST TIME THE BRITISH VISITED BALTIMORE
Our national anthem tells the story about the last time the British visited the Inner Harbor of Baltimore. Now you can take part in the fireworks by attending the Second Annual Coverholders and Risk Takers (CHART) Exchange meeting on October 3-5, 2016. The event will be held at the Baltimore Marriott Waterfront Hotel. The CHART Exchange has been established to serve as a catalyst for new business growth within the U.S./London marketplace. Insurance agents from across the country will be able to personally interact with representatives from various Lloyd’s syndicates as well as vendors who support this unique niche. The three-day event will also feature panel discussions, informative workshops, and new product presentations.
Become a member of the CHART Exchange! Are you a current Coverholder? Interested in accessing London markets? Join the CHART Exchange! We can provide market finder assistance, mentoring support for new agencies, and exclusive access to new products and services. Visit our website for more information.
www.chart-exchange.com The CHART Exchange 3001 Philadelphia Pike Claymont, DE 19703 Phone (855) 716-3660 Fax: (302) 334-0325
Spotlight
Continued From Pg 18
YORK RISK SERVICES RESPONSIVE CUSTOMER SERVICE York’s outstanding customer service starts with an Account Manager who serves as your single point of contact for all your needs. Frequent, clear and concise communication means you have no surprises when it comes to reserves and outcomes. In addition to our strategically located offices placed throughout the U.S., we also home a London office which enables immediate resolution to queries from our London based clients.
EXCESS AND SURPLUS ADJUSTING SERVICES Excess and Surplus (E&S) lines insurance covers risks that cannot obtain coverage in the standard market and need a specialized solution. The risk factors that drive a customer to seek coverage in the E&S/Specialty Lines market can range from age, location, unusual hazards and size of the exposure, to a need for unique coverage 22
AUGUST-SEPTEMBER 2016
forms tailored to the needs of the claims, these relationships can policyholder for a one-of-a-kind mean the difference between an risk. efficient, cost-effective resolution and a lengthy, protracted and expensive claims Those same risk characteristics ultimately mean that any claim is also going to process. need specialized claims handling. That’s where York’s E&S Specialty YORK RISK CONTROL Lines Claims comes in.
SERVICES
UNMATCHED EXPERTISE Our E&S/ Specialty Lines Practice is staffed by seasoned experts from York’s renowned Specialized Loss Adjusting division. These industry veterans, who average 25 years’ experience, manage claims exclusively on behalf of the excess and surplus specialty lines market, including both foreign and domestic markets.
CUSTOMIZED PHYSICAL RISK ASSESSMENTS York Risk Control has a nationwide network of loss control experts who conduct physical loss control and underwriting surveys tailored to each client’s specific needs.
We offer: •
• • •
CONNECTIONS THAT COUNT
•
The Practice is well acquainted with claims personnel and underwriters operating in the foreign and domestic excess and surplus marketplace, and we have developed longstanding working relationships within North America, London market and other participating markets. Because proactive communication with all interested parties is essential to investigating and resolving E&S
•
TABLE OF CONTENTS
•
Customized survey templates coupled with a seasoned expert’s assessment All lines of business Any industry Tailored specifically to the types of risks in your program Robust, customizable management reports tailored to your specific needs Easy-to-use online systems for ordering and reviewing surveys and reports Fast turn-around
VIRTUAL RISK SERVICES Our Virtual Risk Services division offers a cost-effective alternative
See YORK RISK SERVICES Pg 32 www.chart-exchange.com
THE BRITISH ARE COMING! THE BRITISH ARE COMING!
‌ AND CHART INVITED THEM You can also accept our invitation to attend the Second Annual Coverholders and Risk Takers (CHART) Exchange meeting in Baltimore MD on October 3-5, 2016. The event will be held at the Baltimore Marriott Waterfront Hotel. The CHART Exchange has been established to serve as a catalyst for new business growth within the U.S./London marketplace. Insurance agents from across the country will be able to personally interact with representatives from various Lloyd’s syndicates as well as vendors who support this unique niche. The three-day event will also feature panel discussions, informative workshops, and new product presentations.
Become a member of the CHART Exchange! Are you a current Coverholder? Interested in accessing London markets? Join the CHART Exchange! We can provide market finder assistance, mentoring support for new agencies, and exclusive access to new products and services. Visit our website for more information.
www.chart-exchange.com The CHART Exchange 3001 Philadelphia Pike Claymont, DE 19703 Phone (855) 716-3660 Fax: (302) 334-0325
CHART Exchange
CHART: IT’S ALL ABOUT OUR PARTNERS
By Glenn W. Clark, CPCU
T
he CHART Exchange has partnered with a select group of London Brokers: C.J. Coleman, Jardine Lloyd Thompson Group (JLT Re), and Prospect Insurance Brokers. These three entities are responsible for supporting domestic insurance agencies in their efforts to bring new business opportunities to Lloyd’s.
is one of the appointed Lloyd’s brokers of the CHART Exchange, which will be holding its Second Annual Meeting October 3-5, 2016 at the Marriott Waterfront Hotel in Baltimore MD. As you know a Lloyd’s Coverholder is usually an insurance broker or underwriting agent that has been delegated underwriting authority and acts in all regards as the insurer: underwriting risks within their authority; collecting premiums and issuing policies.
During our CHART Goes to London (CGL) event last spring, Neill Cotton (JLT) and Simon Hall (CJC) made a presentation to the audience regarding the role of the broker within the U.S./London Marketplace. These gentlemen characterized their function as that of Relationship Manager and Intermediary. The firms act as the gatekeeper to the capacity and products available through the various Lloyd’s Syndicates.
Jamie Webb (Prospect) provided further amplification as to the diverse set of tasks our Broker partners can offer in a communication to one of our CHART members. We believe his letter appropriately addresses the services available through all three firms. I am writing to introduce the services of Prospect Insurance Brokers, a dynamic and entrepreneurial Lloyd’s of London broker working with potential Coverholders and existing Coverholders to develop and place business with Lloyd’s syndicates. Prospect 24
AUGUST-SEPTEMBER 2016
We are very confident that by improving your access to the Lloyd’s market will substantially benefit your company. We will do the following: • Introduce you to new capacity providers (syndicates) who will have broader risk appetite or more competitive rates and wordings. • Help you expand your product offering as Prospect and Lloyd’s are always on the cutting edge of new product development – whether it be cyber liability, UAV (Drone) Insurance or Zika virus additions to health policies. We also combine technology (Insuretech) to
TABLE OF CONTENTS
www.chart-exchange.com
CHART Exchange create new insurance products that are directly fitted advantage of our proprietary Market Finder Facility. to your clients needs / output. Prospect have a wealth This service – offered in collaboration with the Brokers – helps align new product/ of experience in Property, Liability, program submissions with those Professional, Accident and Health, Syndicates possessing the most Transportation, GL, Environmental, compatible risk appetites. Our Cargo and Contingency to name partners will set appointments, but a few and would love to work assist in proposal presentations, with you. and otherwise guide the agencies through the entire process. • Assist you recruit new talented underwriters to join your company CJ Coleman, JLT Re, and Prospect to help you grow. all stand ready to support insurance agencies as they look • Improve your distribution to to establish or deepen their grow your potential market. business relationships within the London marketplace. With that • Introduce you to the best service said, their presence does not providers to help you manage preclude Syndicates or current/ your business – be it legal, TPAs, prospective Coverholders from coverage counsel, marketing and Glenn W. Clark selecting the Broker of their choice Earliest Adopter PR or IT vendors. to serve as the intermediary for any We already have more than 15 Lloyd’s Syndicates and new business transaction surfaced through CHART. around 75 of the leading Risk Taking underwriters subscribed to attend the CHART Exchange Event in We would welcome the opportunity to host you in October, with more due to commit in the coming Baltimore this October. What better way to learn about all of the benefits available through CHART weeks. then by experiencing them first-hand! Click here The highest probability for success for your business to be re-directed to the event registration page of at the CHART Exchange Event will be to plan ahead our website. From this site, you can sign-up for the - we would be pleased to discuss opportunities with meeting and reserve a room at the Marriott Waterfront you. To do this we suggest setting up a call with you. Hotel. Using the link provided ensures you will Please suggest a couple of times and dates for us to receive the discounted room rate negotiated by our team. We encourage you to make your reservation call you. We are flexible. early, as space is filling up fast. We look forward to identifying opportunities to work together and matching that to Risk Takers appetite to get you the most from the CHART Exchange event in October. Agencies participating in the upcoming CHART Exchange Event being held this October 3-5 at the Marriott Baltimore Waterfront Hotel can take www.chart-exchange.com
TABLE OF CONTENTS
AUGUST-SEPTEMBER 2016
25
Analysis
THE BOOK ROLL STRATEGY:
How to monetize the value of your MGA/MGU without selling equity. BY: Jason C. Murgio & Daniel Baransky, CFA Merger & Acquisition Services, Inc.
niches. Finding these books through acquisitions or organic growth continues to prove expensive and his Book Roll strategy offers a unique opportunity challenging for carriers. The Book Roll strategy is being for program managers and MGA’s to maximize implemented by program and niche carriers looking the commission and fee income stream of their at new ways to partner with MGA’s and MGU’s who existing books of business without selling their agency. control attractive books of business and are interested This strategy is ideal for principals that recognize in monetizing the value of their firm without selling the value of the business they produce but are not the equity in their business. This is accomplished interested in divesting ownership. It allows agency by rolling their book to a new carrier partner for an owners to extract the embedded value of stable, low established period of time. loss ratio business by partnering with highly rated insurance carriers who can assist and foster growth of When assessing the viability of a book roll strategy, existing books of business. most insurance carriers are looking for a book of
T
business that has at least $5 million in annual premium The insurance carrier marketplace is filled with (or larger) with an associated all in loss ratio of 60% or companies looking for books of business which have lower. Specialty niches also typically attract greater scale, are profitable, and focus on certain industry interest.
M
r. Murgio has over 10 years of M&A advisory and business development experience, totaling nearly $1 billion in deal value. He has worked for numerous multibillion dollar insurance carriers, including assignments for such companies as Allstate, AIG, Allianz, Progressive, Morgan Stanley and White Mountains. Mr. Murgio has assisted international companies (UK, Netherlands, Bermuda and throughout Latin America), private equity startup operations, and regional insurance carriers. In addition he has worked with various State Departments of Insurance helping companies in rehabilitation and liquidation. Mr. Murgio’s experience covers the property casualty and life / health markets, including working with insurance carriers, managing general agencies, wholesalers, retailers and third party administrators.
M
r. Baransky serves as Vice President of Merger & Acquisition Services. He brings close to 15 years of relevant experience in the areas of insurance analysis and financial modeling. Prior to joining Merger & Acquisition Services, Mr. Baransky was a Vice President at Fox-Pitt, Kelton, serving as an insurance stock analyst. His coverage universe included over 13 insurance companies, including companies such as W.R. Berkley, Markel, RGA, and Platinum Underwriters, with market capitalization totaling over $13 billion. In addition, he worked on the marketing of several IPOs and secondary offerings. Prior to arriving at FoxPitt, Kelton he was a Financial Analyst at Cendant Corporation, a Fortune 500 Company.
26
AUGUST-SEPTEMBER 2016
TABLE OF CONTENTS
www.chart-exchange.com
Analysis The program provides the following benefits for an agency principal:
The duration of the appointment will run five or more years, subject to underwriting profitability.
Allows the principals the ability to monetize their agency immediately without giving up any control or ownership of the agency.
The example below shows a hypothetical book of business with $10 million in annual premium, running at a 50% loss ratio, and an agency commission of 22.5%.
The agency in conjunction with its advisor will derive a value for the book of business primarily based upon the underwriting profitability. This will form the foundation for an up-front cash payment to the agency to roll the business over to the carrier partner. In essence, it allows the agency to monetize the future cash flow of the imbedded underwriting profits in the book of business. Importantly, this is a fee paid to the agency and not a payment for an ownership stake. For agencies considering a captive participation arrangement this program accomplishes the same financial goals without the risks and administrative tasks and costs associated with an agency owned captive.
Continue to receive a market based commission and profit share structure. In addition to the up-front cash payment the agency will continue to receive a market based commission, potential profit share, and fee structure.
The agency generates an additional $3.0 million in revenue over a five year period, or a 26% increase under the book roll program.
When comparing the book roll versus the EBITDA of the agency absent the book roll the earnings to the agency owner are 88% higher under the book roll.
Partnership with established, financially sound, committed “A� rated carriers. The program consists of well know, nationally based carriers with superior financial strength ratings. This could be particularly beneficial for agencies in need of higher rated paper. In addition, the size and scale of the carriers lends itself to further discussions around additional agency offerings that may be going The figure below illustrates a potential sale today at untapped by the agency. 8.0x EBITDA versus performing a book roll. The book roll equates to 55% of a potential transaction with A long term appointment contract offering the added bonus that as the agency owner you still stability and consistency in your markets. See The Book Roll Strategy Page 28
www.chart-exchange.com
TABLE OF CONTENTS
AUGUST-SEPTEMBER 2016
27
Analysis Continued From Page 27
THE BOOK ROLL STRATEGY:
a part of this organization that brings US distribution together with London underwriting capabilities.
M&A, and its affiliated broker-dealer, Merger & Acquisition Capital Services, LLC, is a boutique investment bank retain 100% ownership and 100% of the agencies exclusively focused on the insurance industry. For almost economics. Another way to think of the book roll is that 20 years we have exclusively serviced insurance carriers, in this example you are compensated for 4 plus years of MGA/MGU’s and wholesale/retail insurance agencies. earnings today. With offices both domestically and internationally, the firm provides three primary services: (1) buy-side and sell-side advisory services for both underwriting companies and distribution firms, (2) program placement services for both distribution and underwriters, and (3) insurance consulting services including valuation, fairness opinions, and capital raising services. Our senior advisors have all worked in the insurance sector prior to joining the The Book Roll strategy is unique in today’s market place firm and bring un-conflicted advice to our clients and and is being utilized by insurance carriers to find growth partners as it relates to their corporate development and profitability in an insurance market where neither efforts. are readily available. To learn more about our services, our team of advisors Merger & Acquisition Services, Inc. (M&A) is a proud and our successful track record of closed transactions, sponsor of the Chart-Exchange. We are happy to be please visit our website at http://www.maservices.com.
28
AUGUST-SEPTEMBER 2016
TABLE OF CONTENTS
www.chart-exchange.com
Analysis
Proud Sponsor of
Merger & Acquisition Services
serving the insurance industry Merger & Acquisition Services is a
specialist advisory and financial services
firm specifically to participants within the insurance industry. Our mission is to provide
concierge-level services and expertise
within the insurance industry by assisting firms with their corporate development and acquisition/divestiture objectives. M&A Services is
solely focused on the insurance industry.
This allows our advisors to obtain critical industry knowledge and subsequently, provide clients with sound advice.
Our Services Agency M&A Transactions Carrier M&A Transactions Agency Financing Capital Raising Strategic Advisory Valuation Services Program Business Renewal Rights Fronting
http://maservices.com info@maservices.com
(212) 750-0630 320 East 53rd Street New York NY 10022
M&A Services has closed
more than 100 transactions in 10 years and has earned continuous placement within the "Top 5 Financial Advisors in Insurance Underwriting" according to SNL Financial. . Investment banking services and securities transactions are provided through and completed by Merger & Acquisition Capital Services, LLC., a brokerdealer registered with the U.S. Securities and Exchange Commission and member of FINRA and SIPC. TABLE OF CONTENTS www.chart-exchange.com
NEW YORK, NY ATLANTA, GA MYSTIC, CT CAYMAN ISLANDS See The M&A Process Page 29
. Copyright 2016 Merger & Acquisition Services, Inc. & Merger & Acquisition Capital Services, LLC. All Rights Reserved.
AUGUST-SEPTEMBER 2016
29
Analysis
Continued From Page 10
specialty designations as Program Administrators and Coverholders? What is their conceptual “Big Data?” How important is it?
simply may not fly anymore due to the risks of costly errors and time delays in getting critical information.
To start with the obvious, at the heart of compliance and operations The data “touches” involved by the is the accurate and timely insurance specialists are many – reporting of data and information. raters, underwriters, Regardless of policy service, Accuracy in the relationship claims, financial, etc. the harvesting between throughout the policy MGA/Program big data may lifecycle of a property, Administrator/ casualty or automobile lead to more proCoverholder and insurance policy. active decisions their respective regarding business Carriers, Brokers In most cases, the data operations which or Syndicates is tracked by different there are certain systems that are will result in re p o r t i n g somewhat connected positive impacts to standards and or marginally the bottom line.” requirements in integrated. This can place required create a challenge for for the business arrangement. operations and business analysts to get an accurate view, report Traditional business analysis has or dashboard of critical business been reported and discussed activity in a real, or near real-time on this information between environment. agency principals and their carrier representatives for decades. One of Traditional database management the primary goals is to maintain or or desktop reporting systems reduce the combined ratio moving often have a tough experience forward to maintain a profitable with handling big data because business relationship. the work may require parallel software applications running With the Lloyd’s modernization on several different servers. Just project underway, some new thinking about this kind of project Coverholder applications may be can give insurance carrier analysts rejected where the Coverholder a headache and send CFO’s into cannot prove to have the systems a mild panic over a never-ending in place to accurately capture and expense item. report risk, premium and claim data. Manual reporting formats What about MGA’s and their that require re-keying of data
Effective systems for compliance and reporting should be a natural, automated process that is maintained in real-time during the course of business operations and transactions. If a report or data feed is required it should be simply a click of a mouse- or better yet, automatically generated on a scheduled basis without human involvement.
BIG DATA
policy lifecycle (including claims) until the renewal or cancellation.
30
AUGUST-SEPTEMBER 2016
TABLE OF CONTENTS
How do you harness and analyze your data to make internal strategic business decisions? Do you feel like you are in the driver’s seat when it is time for an audit or to negotiate on your program with your carriers and syndicates? If you control (on your systems) all the data associated with rating, underwriting, negotiating, policy issue, accounting and claims in one system or, in a tight integration between a couple systems, you can be in the driver’s seat. Your capability should include the reporting, real-time dashboard views and analytic capability to make pro-active business decisions that can effect operations; such as budget-to-actual performance statistics and rate monitoring. Start with small projects and go from there and you will see the business power unfold by controlling and mastering your www.chart-exchange.com
own “Big Data”- the heartbeat of your operations.
director holders.
NetRate understands that MGAs, Program Administrators, Coverholders and Carriers need to continually measure their performance against key business metrics. NetRate’s cloud-based solution includes a comprehensive data warehouse where all input data and calculated data resides in a secure environment on a single platform for all your programs.
The UK division of AIG will manage the addition to the D&O policies, which has no additional cost or deductible.
You enter a lot of information while processing new and renewal insurance business, NetRate gives you the capability to use it. This is very effective for the forward thinking business owner who wants to control, manage and analyise key business metrics on demand- whether it is to improve business operations; such as, hit ratios and productivity analysis or rate monitoring information that can be vital for rate adjustments on current business, as well as, an effective method for looking for new program opportunities.
About the Author: Mark Stroop, Sales Executive at NetRate has helped MGA’s, Carriers and Agencies with technology solutions that streamline the process of generating new and renewal business for 20+ years. www.chart-exchange.com
About NetRate: NetRate Systems, Inc. solutions include cloud-based portal, high performance submission, underwriting, rating, easy quote and policy document generation, data analytics and integration with 3rd parties for the Property and Casualty insurance marketplace, primarily in the MGA, Program Administrator, Coverholder and small/medium carrier environment. NetRate products include nationwide rating of ISO® General Liability, Property, Business Auto, Crime, Inland Marine, BOP, as well as NCCI Workers Comp. NetRate also offers custom programming of all lines of business, including Professional Liability. For more information, go to www.netrate. com.
AIG UK BREXIT NEWS
and
officer
policy
Since no decisions have been made regarding the terms of the UK and EU’s new relationship, the adjunct coverage serves primarily to calm policy holders that are anxious about the changing markets.
“While the outcome of the discussions between the UK and EU are unknown, this addition to existing contract, which will be implemented at no additional cost, will give our clients peace of mind during a period of potential change,” Anthony Baldwin, CEO of AIG Europe Ltd. and AIG UK said.
The coverage is for legal challenges if an application for permanent residency is rejected espite any new before the policies change developments between between the UK and EU. the UK and the European Union since the surprising ‘vote The action by AIG UK hints at to leave’, American International the general sense of unease felt Group, AIG, is tacking on Brexit by many business professionals coverage for their existing from the UK.
D
TABLE OF CONTENTS
AUGUST-SEPTEMBER 2016
31
News
HISCOX LTD. SEEKS TO STABILIZE
between the UK and EU will be agreed upon until 2017. With that, all EU and UK trade agreements hold for at least two more years. This tentatively keeps markets stable for syndicates like Hiscox, but not knowing whether they can rely on the profits from the EU is Tyler Cichewicz reason to contemplate alternatives, loyd’ of London syndicate, like an EU based company. Hiscox Ltd., will consider establishing a company Hiscox, as others were when the within the EU in order to lessen the decision to leave came in, have effects felt after the UK’s vote to been at work on contingency plans that will minimize their exposure leave; Brexit. from Brexit.
L
Continued From Pg 22
YORK RISK SERVICES to traditional on-site inspections. We combine telephonic interviews with internet research to produce verified data about operations, exposures and controls.
As with our physical surveys, all virtual risk inspections are conducted by a team of highly Following the qualified consultants with the On Monday, July UK’s decision Look for knowledge needed to assess risks 25, Hiscox saw a to leave the EU in your industry. To ensure your Hiscox 52% increase in is uncertainty satisfaction as well as the best and other Lloyds pretax profit for from UK based possible results, we ask you to certify the first half of the syndicates to rely businesses, who the consultants for your program year. Almost half fear they will lose so you’re comfortable with their more heavily on of their written their pass porting industry knowledge, program, key business with premiums come rights, which loss drivers and any other concerns from specialty the U.S. as it is allow them to sell you feel are important. insurance policies their products less expensive for small business throughout Europe This cost-effective approach is and speculative and home owners. without bearing best suited to programs with lower alternative to The largest portion high costs. exposures or consistent, historical of this increase the EU market.” member information. Our virtual comes from the Hiscox generates surveys are: 20% of its total gross premiums U.S. where Hiscox saw profits grow to 32.8%. from the EU. • Customized to each client’s specific underwriting Chief Executive Bronek Masojada Hiscox’s decision to establish a guidelines says Hiscox is considering ten new company in the EU would • Provide verified data about countries within the EU to plant a be an attempt to retain their hold operations, exposures, and new company, but will not make on the EU market. However, with controls a final ruling on that decision until contracts in limbo between the UK • Allow underwriters to quickly and EU for what seems likely to be the first quarter of next year. evaluate operations and the next year to two years, look for make effective underwriting Theresa May, Britain’s Prime Hiscox and other Lloyds syndicates decisions Minister, has said that no terms to rely more heavily on business with the U.S. as it is less expensive 32
AUGUST-SEPTEMBER 2016
TABLE OF CONTENTS
www.chart-exchange.com
LLOYD’S OF LONDON
36
AUGUST-SEPTEMBER 2016
TABLE OF CONTENTS
www.chart-exchange.com
Image Credit: Creative Commons