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Cybercrime Up Again
It shouldn’t be surprising that the number of reported cybercrime complaints to the feds rose again. Almost daily I hear from someone I know about a new threat, hack, or fishy AI call. The most recent was in my own town’s school district where a parent was called by a criminal demanding a ransom for their child whose AI-derived voice was heard in distress in the background.
The individual victims of cybercrime are often the most vulnerable. As a group, people over the age of 60 suffered the highest number of losses in 2024—totaling nearly $5 billion, according to a recent report from the Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3).
In its latest annual report, the 2024 Internet Crime Report, the IC3 combined information from 859,532 complaints of suspected internet crime and detailed reported losses exceeding $16 billion—a 33% increase in losses from 2023. Of the reported complaints, 256,256 ended with actual losses. The average cost of a loss was $19,372.
The report found that the top three cybercrimes, by number of complaints reported by victims in 2024, were phishing/spoofing, extortion, and personal data breaches.
Victims of investment fraud, specifically those involving cryptocurrency, reported the most losses—totaling over $6.5 billion.
The 2024 report also revealed that the most complaints were received from just three states: California, Texas, and Florida.
Fraud represented the bulk of reported losses in 2024, and ransomware was again the most pervasive threat to critical infrastructure, with complaints rising 9% from 2023.
The rise in total losses reported to the IC3 has skyrocketed since 2020—roughly $4 billion in losses in 2020 to $16.6 in losses for 2024.
Cyber-enabled fraud, which includes complaints where criminals use the internet or other technologies to commit fraudulent activities, often involving theft of money, data, or identity, was responsible for almost 83% of all losses in 2024.
The FBI notes that these figures do not include all incidents and/or loss, since many go unreported.
‘The individual victims of cybercrime are often the most vulnerable.’
“Reporting is one of the first and most important steps in fighting crime so law enforcement can use this information to combat a variety of frauds and scams,” said FBI Director Kash Patel in a statement when releasing the report. “The IC3, which is celebrating its 25th anniversary this year, is only as successful as the reports it receives; that’s why it’s imperative that the public immediately report suspected cyber-enabled criminal activity to the FBI.”
The more comprehensive complaints the FBI receives, the more effective it will be in helping law enforcement gain a more accurate picture of the extent and nature of internetfacilitated crimes, the report said.
If you or your clients suspect fraud, submit a complaint to www.ic3.gov.
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11 days after appendectomy, tests for acute abdominal pain revealed a
retained object
left inside the patient.
Surgical miscounts are considered never events because they are usually preventable by following established procedures.
ProAssurance offers risk assessments designed to help practices minimize errors by establishing and evaluating safety procedures and communication protocols.
With reliable procedures in place, our insureds are more likely to reduce errors in their medical practice, avoid claims, and make claims more defensible if they do occur.
News & Markets
Roof Repair and Replacement Costs Up Nearly 30% Since 2022, New Report Says
By Allen Laman
Roof repair and replacement cost value totaled nearly $31 billion last year—up nearly 30% since 2022, according to a new report from Verisk.
The strategic data analytics and technology provider reported that roof-related line items made up more than a quarter of all residential claim value in 2024. Wind and hail were the predominant drivers of these loss costs and accounted for more than half of all residential claims.
In recent years, significant hail activity, inflation, exposure growth through new construction, and human migratory patterns have all contributed to the increase in total roof losses and claim amounts, said Ryan D’Amario, vice president of property product management at Verisk.
He described the data as a validation of firsthand feedback Verisk receives from insurers.
“It might not be financially feasible to proactively replace a roof in every situation, but the age of the roof is highly correlated with loss,” D’Amario explained. “Especially when you look at asphalt shingle materials.”
Verisk’s Xactware solutions give the company insight into claims frequency and replacement and repair costs, he said. Verisk’s insurer customers point to wind and hail as a key issue driving profitability. The new report is designed to elevate the issue to regulators, legislators, agents, brokers, and policyholders. Large swaths of the country are susceptible to the perils.
D’Amario pointed to data from permits and aerial imagery as an avenue to understanding the resiliency of certain roof materials over time—especially as they are exposed to sun, rapid temperature changes, precipitation, continuous hail, straight-line wind, and more. Verisk has found roofs start to fail within a decade in some regions.
“In many situations, we find areas of the country—states like Missouri [and] Kansas—where roofs don’t last eight years,”
D’Amario said. “Be it through continued wear and tear or exposure to significant weather activity.”
In its report, Verisk shared that asphalt shingles are used on 80% of roofs in the U.S. In hail-prone states, the average roof lifespan is 15 years, compared to 22 years in western states with less severe weather like Nevada, Arizona, and Utah.
Approximately 29% of U.S. homes with asphalt shingles have less than four years of remaining useful roof life, according to Verisk insights. States such as West Virginia, Connecticut, New Jersey, and Massachusetts have the highest percentage of roofs with less than four years of remaining roof life, which can result in 50% more damage during severe weather compared to roofs with eight-plus years of remaining life, Verisk reported.
When asked if Verisk anticipates the annual roof repair and replacement cost value to continue to rise, D’Amario said it’s hard to say with precision.
“However, we know this problem exists, and we know that many insurers in the industry haven’t adopted necessarily all of the tools at their disposal to really help solve the challenges, help manage costs, and really help stabilize their business to offer insurance in areas that are really prone to these types of events and activity,” he said.
Collecting roof information is critical to understanding risk, D’Amario added. It also provides independent agents and brokers with an opportunity to work with policyholders to promote mitigation activity.
“They have a very unique position, working between an insurer and the policyholder, and are often serving as the front line,” D’Amario said. “I think there’s a tremendous opportunity for more agents and brokers to be educated about the need for this information and provide the benefits of activity that can ultimately reduce price and risk.”
$2.7 Million
The amount of workers’ compensation fraud uncovered by the New York State’s Inspector General’s office in 2024, a nearly 30% increase over 2023. Inspector General Lucy Lang also reported 14 arrests for workers’ compensation fraud, an almost 30% increase compared to 2023. Over $1.4 million in restitution and fines were awarded to defrauded state agencies, insurers, and employers last year.
1,796
$300,000
The penalty levied against three Liberty Mutual companies by the Delaware Department of Insurance for advertising discounts that they do not offer in the state. Liberty Mutual has cooperated with the department, has paid the penalty, and is working to correct the mistakes. However, the company does not agree with all of the violations cited in the department’s report. According to the department, investigators uncovered 39,806 instances of false information and advertising. In 31,696 instances, the company listed a “claims free” discount on homeowners insurance declaration pages, when no such discount was offered in Delaware.
$925 Million
The number of confirmed tornadoes in 2024 - the second highest on record according to NOAA’s Storm Prediction Center. The busy tornado season was driven by an active April and May in the Plains, 185 tropical cyclone tornadoes, and a busy late December. The SPC recorded six EF3 tropical cyclone tornadoes from four different storms. In the 29 years of the tropical cyclone tornado database (1995-2023), there were only five total EF3 tornadoes. Six states set new tornado records: Illinois, Iowa, New York, Ohio, Oklahoma and West Virginia.
The possible cost of rebuilding electrical infrastructure destroyed by Los Angeles wildfires in January. Southern California Edison (SCE), a subsidiary of utility Edison International, has submitted an initial plan to rebuild the areas to California Governor Gavin Newsom with an estimated cost between $860 million and $925 million. SCE said adding that securing alternate funding sources was critical to making the plan a reality. The wildfires tore across LA starting on January 7, leading to dozens of deaths and destroying thousands of homes. It is estimated to be the most expensive natural disaster in U.S. history. Although no official cause for the fires has been released, several lawsuits have claimed that SCE power lines and towers in Altadena started one of the blazes - the Eaton Fire. The LA County and the City of Pasadena have also sued SCE.
Declarations
No to FIO, Industry Says
“Since [the FIO’s] inception in 2010, our associations have echoed concerns from functional regulators over FIO’s potential for duplicative and overreaching workstreams. Unfortunately, these concerns have been validated over the course of the office’s existence, as it has undermined state-based regulation and exerted inappropriate pressure on industry participants, including unwarranted threats of subpoenas. These actions cross directly into work already being performed by state regulators, creating inconsistent expectations, duplication, and costs that are ultimately borne by consumers.”
— The National Association of Mutual Insurance Companies (NAMIC) and the Independent Insurance Agents & Brokers of America in a letter to Montana Congressman Troy Downing, who introduced H.R. 643, the “Federal Insurance Office Elimination Act.”
Winning the Ransomware War
“The industry supporting compromised entities has matured. As a result, we see shorter dwell time, shorter time to containment, faster completion of forensic investigations, lower cost for forensic investigations, shorter time to restoration after ransomware deployment, and declining ransom payment amounts. The combined efforts of carriers, brokers, law firms, forensic firms, restoration firms, ransom negotiation and payment facilitation firms, and law enforcement have yielded positive results.”
— Ted Kobus, chair of BakerHostetler’s Digital Assets and Data Management (DADM) Practice Group on beating back ransomware.
Crypto Control
“Countless New Yorkers invest in cryptocurrency and digital assets, and more must be done to protect them and their money. Thousands of investors in New York and across the country have lost millions of dollars to cryptocurrency scams and fraud that could be prevented with stronger federal regulations.”
— New York Attorney General Letitia James urging lawmakers to pass legislation to create a federal regulatory framework for cryptocurrencies. In a letter to top congressional leadership, James said that lawmakers should require crypto companies to register with a federal regulatory agency and set minimum listing standards for crypto tokens. The digital asset industry has seen growing influence in Washington after spending over $119 million backing pro-crypto congressional candidates in last year’s elections.
Florida P&C Growth
“The continued growth in Florida’s insurance market is due in large part to the historic legislative reforms we have enacted. We must continue on this path and not turn the clock backwards.”
— Florida Insurance Commissioner Michael Yaworsky commenting on the 12th new property and casualty insurer entering the state’s historically turbulent market in two years. Yaworsky said the new entries are further evidence that 2022-2023 legislation, which throttled excessive claims litigation and bad-faith claims against insurers, is paying off. The number of new property/casualty insurers to enter Florida since 2022 has now surpassed the number of insolvencies seen from 2019 through 2023.
Agricultural Uncertainty
“The world is trying to figure out if Trump is playing chess or checkers. If it’s the former, it would be a cool, long-term benefit. If it’s the latter, we’re going down a path we’ve never gone down in my lifetime.”
— Josh Yoder, a fifth-generation farmer in Ohio, who has been watching gyrations in the crop markets as Donald Trump moved to dramatically escalate his trade war with China. Yoder supports Trump, but his words echo a growing sense of apprehension across America’s crop belt. China is by far the biggest global buyer of soybeans. The commodity is also the highest-value U.S. bulk agriculture export, with sales of nearly $25 billion last year, roughly half of which came from China.
Texas Powers Up
“It sounds like we’re going to need every electron brought to bear in our system that we can possibly find, whether it’s from new generation, conservation or energy efficiency, or new distribution. We need all of it.”
— Texas State Rep. Rafael Anchía, D-Dallas, addressing the state’s growing need for power to supply new residents and industries. Anchía said the state should not show favoritism to particular types of energy generators. Natural gas, solar, wind and battery storage compete to supply power to the Texas grid. Grid operators, by law, pick up cheaper energy first, which solar currently regularly supplies.
News & Markets
Marsh Sues Aon, Ex-Team Leader Over Exit of 20 Construction Surety Employees
By Andrew G. Simpson
Global insurance broker Marsh USA filed suit against competitor Aon and a former Marsh team leader for allegedly poaching key members of Marsh’s construction surety team who resigned and moved to Aon in March.
A complaint filed by Marsh in federal court in New York accuses Aon and its former construction and surety team leader, Robert McDonough, of a “brazen taking” of its construction surety business, including its confidential information, employees, and clients.
According to the lawsuit, the scheme culminated with the “coordinated resignation of 20 employees in the span of just 38 minutes” on March 10, 2025.
As a result of the alleged raid, Marsh said it lost numerous clients representing millions of dollars in revenue annually and has suffered harm to its client relationships and its reputation and goodwill in the brokerage industry.
“Aon could not execute the plan to raid Marsh alone—it needed an inside man and enlisted McDonough, a senior leader in Marsh’s construction surety business unit, to use his knowledge of Marsh’s confidential information and his relationships with Marsh’s employees and clients to advance an unlawful scheme and raid Marsh’s construction surety business,” according to the complaint.
competitor in January. “Rather than invest the time and money to rebuild its surety practice piece by piece, Aon opted for a quicker, unlawful fix: simply pluck a significant portion of Marsh’s construction surety business unit to fill its need,” the lawsuit says.
McDonough joined the Marsh construction surety team in New York in March 2016 as the practice leader, and he maintained that senior leadership role for nearly a decade. According to Marsh, McDonough was privy to its highly confidential information and trade secrets, including information about Marsh’s workforce and clients. He is accused of leading the mass resignation on March 10 when he submitted his resignation at 10:45 a.m. and 19 others followed his lead, including 70% of McDonough’s direct reports.
On March 17, the suit contends, McDonough assumed a comparable role at Aon, as CEO of its North American construction, infrastructure, and surety group. The 19 other departing Marsh employees also assumed similar roles at Aon—“essentially mirroring the structure and roles of Marsh’s construction surety business,” the complaint says.
to beginning his employment at Marsh in 2016. The agreements establish that McDonough’s violation of their restrictive covenants would result in irreparable injury to Marsh and set forth penalties should he violate them. The non-solicitation agreement acknowledges that the restrictions are necessary to protect the legitimate business interests of the company and are reasonable in view of the consideration and benefits, including access to bonus plans, he has received from the company.
‘Irreparable Harm’ Additionally, in his confidentiality agreement, McDonough is said to have agreed that “irreparable injury will result” to Marsh and that, in the event of a breach, Marsh shall be entitled to specific performance and temporary and permanent injunctive relief; recovery of reasonable sums and costs, including attorneys’ fees; and any other legal remedies and damages available.
In addition, Marsh says McDonough signed a liquidated damages agreement that covers situations where a client either reduces the amount of business or cancels business with Marsh due to violations by him. This provision calls for him to pay Marsh an amount equal to the total fees and commissions received by the company for such business during the two years prior to the breach. That would be in addition to all other damages and remedies, according to the lawsuit.
Aon declined to comment on the lawsuit when contacted by Insurance Journal.
Aon Lost Own Team
The lawsuit contends that the scheme began before McDonough and the others left Marsh, soon after Aon lost a team of its own surety employees to another
In a March 10 press release, Aon touted new leadership for its construction and surety practice, with the hiring of McDonough and another key Marsh employee, Brian Hodges.
Marsh contends that McDonough has breached non-solicitation, confidentiality, and other agreements he signed prior
The complaint says that, as part of the collusion, Aon worked with McDonough to recruit the 19 employees to Aon, drawing upon his knowledge of Marsh’s confidential personnel data related to compensation and client contacts.
Further, Marsh alleges that McDonough worked with Aon to identify Marsh clients—“particularly ones with which
McDonough had strong relationships—to move their business to Aon.” This drew upon Marsh’s confidential information about the clients’ current contracts with Marsh, Marsh’s pricing, Marsh’s business development strategies, and client preferences, the complaint says.
Marsh personnel spoke with many of the departing employees after they resigned. Marsh says these interviews “confirmed McDonough and Aon’s plot to steal Marsh employees as a group.”
One of the departing employees reported that the raid was “all orchestrated by Rob McDonough,” who, the employee said, “selected the best 20 people in
the practice to leave together” and told him he had the choice to either “take life-changing money and stay with us or be left behind and clean up the puke.”
Marsh Clients
According to Marsh, the scheme also targeted both established and potential Marsh clients, including one with a major infrastructure project and another with a transportation facility construction project, allegedly using Marsh’s confidential information to get them to move their business to Aon.
Marsh also contends that McDonough and another Aon employee recently
attended an industry conference in San Diego, where Marsh maintains they “actively targeted” Marsh employees and clients “in what could only be an effort to solicit them on behalf of Aon.”
Among the complaint’s counts are unfair competition; breaches of contract, fiduciary duty, and common law duties of loyalty, absolute candor, and good faith; tortious interference with business relationships; aiding and abetting a breach of fiduciary duty; and conspiracy.
In addition to liquidated damages, Marsh is seeking punitive damages, actual damages, attorneys fees, and preliminary and permanent injunctive relief.
Travelers Income Drops 65% on Catastrophe Losses, Primarily California Wildfires
By Chad Hemenway
The Travelers Cos. said firstquarter 2025 fell 65% on an underwriting loss of $305 million.
Travelers posted first-quarter net income of about $395 million compared to about $1.1 billion during Q1 2024. The underwriting loss for the first quarter was compared to a gain of $577 million a year ago during the same period.
The insurer paid out about $2.3 billion in Q1 catastrophe losses—more than three time more than the $712 million in catastrophe losses from a year ago. Catastrophe losses were mostly from the January wildfires in California as well as wind and hail storms in multiple states, Travelers said. California wildfire losses in Q1 were about $1.7 billion.
Favorable prior year reserve development was $378 million for the first three months of 2025. Travelers said favorable development was in all segments, including $237 million in the personal lines segment driven by better-than-expected losses in auto and home lines.
The New York-based insurer’s
combined ratio was 102.5 for Q1 2025 compared to 93.9 for Q1 2024. Catastrophes net of reinsurance added 21.2 points to the combined ratio. The underlying combined ratio for Q1 improved to 84.8 from 87.7 for Q1 2024. Underlying underwriting income was $1.6 billion.
The personal insurance segment took a Q1 underwriting loss of $670 million on about $1.7 billion in catastrophe losses. The combined ratio here for Q1 was 115.2—more than 18 points higher than a year ago.
Strong renewal premiums drove a 5% increase in net written premiums to $3.8 billion. Homeowners NWP increased 11% in Q1.
In business insurance, underwriting income dropped 41.6% to $195 million. Catastrophe losses were $509 million—$300 million more than Q1 2024. Favorable development in workers’ compensation insurance primarily drove development of $74 million for the quarter.
Business Moves
East
Marsh McLennan, Arthur Hall
Marsh McLennan Agency (MMA), a business of Marsh, announced the acquisition of Arthur Hall Insurance, a West Chester, Pennsylvania-based insurance agency. Terms of the acquisition were not disclosed.
Founded in 1966, Arthur Hall provides commercial and personal lines insurance to clients nationwide, specializing in the life sciences, information management, non-profit, craft beverage manufacturing, and municipal industries.
All Arthur Hall employees, including President Jim Denham, will join MMA and continue to operate out of their two office locations in West Chester and Wilmington, Delaware.
Starkweather & Shepley Insurance
Brokerage Inc., AiK2 Insurance Services
Starkweather & Shepley Insurance Brokerage Inc. (S&S) acquired AiK2 Insurance Services, a New Jersey-based firm. As part of the acquisition, AiK2 will rebrand under the S&S name, combining services for wealth and asset managers with expanded resources from S&S’s Private Client Insurance division. AiK2 combines the financial services expertise of Wealth Advisor Growth Network (WAGN) and the insurance capabilities of KORE Insurance.
AiK2’s co-founder, Jay Hummel, who served as the company’s CEO, will continue in an advisory role at S&S. Terms of the sale were not disclosed.
Transatlantic Underwriters
Transatlantic Underwriters (TAU), a leader in specialty insurance for the transportation industry, launched a new property and casualty (P&C) division to expand service offerings. The strategic expansion introduces six new lines of business: commercial general and excess liability, commercial property, inland marine, builders risk and garage.
To lead this new division, TAU appointed Bernadette Flores as senior vice president of P&C. Flores has over 24 years of experience in the excess and surplus P&C sector, with particular expertise in contractors, garage, habitational and hospitality. Flores will operate from TAU's San Francisco Bay Area office.
Ryan Specialty, USQRisk Holdings
Global specialty insurance broker Ryan Specialty has agreed to acquire certain assets of USQRisk Holdings, LLC, a New York-headquartered managing general agency focused on nontraditional insurance.
Formed in 2020 and operating in New York and London, USQ has two core business divisions: alternative risk specialty underwrites, structures, prices and places specialty insurance for corporate clients. The facilities specialty creates new products for unique risks in highly dislocated markets.
The acquisition is expected to bring approximately $11 million of incremental operating revenue to Ryan Specialty. USQ will become a part of the alternative risk business within Ryan Specialty.
Midwest
MarshBerry’s FirstChoice Expands
FirstChoice, a MarshBerry Company, expanded into Minnesota and Arizona. This move allows independent insurance agency owners in these states to join FirstChoice’s network to access resources and support.
FirstChoice was founded in 2015 to give captive agents broader access to commercial opportunities. It became an agency member network in 2017 with a menu of services that includes direct carrier access, strategic business planning, advanced technology solutions, and a comprehensive education platform.
Hadron, The Guarantee Company of North America
Hadron, an Arkansas-based carrier, intends to acquire The Guarantee Company of North America USA (GCNA), a Michigan-based insurance company, from Atlantic Specialty Insurance Company, a subsidiary of Intact Financial Corporation.
Hadron expects the acquisition to close in the third quarter, subject to regulatory approvals and customary closing conditions.
No net premiums, net loss reserves, or employees will transfer as a result of the transaction.
With licensing to operate in all 50 U.S. states, Washington, D.C., and Puerto Rico, as well as a Certificate of Authority from the U.S. Department of Treasury as an acceptable surety for Federal bonds, GCNA will expand Hadron’s capabilities and national footprint, enhancing its ability to deliver a broader range of admitted insurance solutions.
Hadron launched in the U.S. in 2023. Hadron provides both lead and primary insurance services as well as capacity to managing general agents or managing general underwriters that offer small-tomedium-sized businesses protection for their growing insurance needs.
Totalis Program Underwriters, Brownyard Maclean Security Insurance Services LLC
Totalis Program Underwriters, an underwriting platform providing specialty
expertise and solutions for challenging and under-served areas of the market, acquired Brownyard MacLean Security Insurance Services LLC.
Brownyard MacLean is a Michigan-based managing general underwriter and program administrator specializing in the unique exposures of the private security and alarm industries.
Brownyard MacLean CEO Matt MacLean and Executive Vice President Blair Brownyard, join Totalis as senior vice presidents and Maureen Tortorici joins as a vice president.
Inszone Insurance Services made its second acquisition in Kansas with the addition of Munson Insurance Agency, located in Arkansas City, Kansas.
Established in 1974 by Jim Munson, Munson Insurance Agency is a trusted local source of insurance solutions, serving the Arkansas City community and surrounding areas for nearly 50 years.
Mike Munson, Jim’s son, joined the agency in 1994 and took full ownership of the agency in 2008. Munson Insurance Agency specializes in business and farm insurance.
Southeast
Novatae Risk Group, Ajax Specialty Insurance
Novatae Risk Group (Novatae) acquired the assets of Ajax Specialty Insurance (Ajax) of Atlanta, Georgia.
Ajax is a specialized wholesaler focused on the management and professional liability spaces, including the following coverages—D&O (directors and officers), E&O (errors and omissions), and technology/ cyber liability. Andy Bierbaum founded the company in 2012 and brought in co-owner and partner Karen Kutger six years later.
Giordano Halleran Ciesla provided counsel, and MarshBerry advised Novatae. Frost Brown Todd LLP provided legal counsel to Ajax. No other advisors, diligence firms or legal counsel were disclosed.
Novatae serves more than 6,000
clients from 27 offices across the United States. Terms of the transaction were not disclosed.
Higginbotham, Tidwell and Hilburn Insurance, Thompson & Smith Insurance
Higginbotham, one of the largest insurance agencies headquartered in Texas, has expanded its footprint in the Southeast by adding agencies in Georgia and Tennessee.
The firm announced that Tidwell & Hilburn Insurance in Macon, Georgia, has become the eleventh Higginbotham office in Georgia. Coleman “Cole” Tidwell Jr. is president, and Rusty Hilburn is vice president.
In Tennessee, Higginbotham added Thompson & Smith Insurance Agency in Jackson.
Chuck Thompson is the CEO, and Roger Smith is the president of the agency. The agency offers personal and commercial coverage, including workers’ compensation insurance.
PointeNorth Insurance Group, headquartered in Birmingham, Alabama, acquired three agencies in Alabama.
The acquisitions include Holloway and Hunt Insurance in the town of Arab, in north Alabama; Vigilant Gulf Coast Insurance, in Daphne, near the coast; and O.M. Hughes Insurance, in the Birmingham area.
Mickey Hunt, principal at Holloway Hunt, said the move allows the firm to expand its portfolio.
Dan Quarella is president of Vigilant Gulf Coast. The agency offers personal and commercial coverage and is licensed in Alabama, Georgia, Mississippi, Florida and Tennessee.
O.M. Hughes was founded in 1946 by O.M. Hughes Sr. His son, Marvin, joined in 1971, and his grandson, Mark Hughes, joined the firm in 2002.
All three agencies will operate under their established names.
PointeNorth, with headquarters in Atlanta, has acquired more than 50 agencies in recent years.
South Central
Capital Farm Credit, Bennett Crop Insurance, Taylor Crop Insurance
Capital Farm Credit purchased two crop insurance agencies in the Texas Plains Region, Bennett Crop Insurance and Taylor Crop Insurance. Both were independent insurance agencies headquartered near Lubbock, Texas. These acquisitions add nine new employees and two new locations to CFC's territory.
Bennett Insurance, located in Brownfield, Texas, has been family-owned and operated since 2004, serving several counties in the Panhandle.
Taylor Crop Insurance has been in business for more than 40 years, starting as a family-owned agency in Ropesville, Texas. It focuses on serving cotton producers in Lubbock and Hockley counties.
Capital Farm Credit is an agricultural lending cooperative and has offered crop and livestock insurance for over 10 years.
West
OneDigital, Fortune Insurance
OneDigital, an insurance brokerage, financial services and HR consulting firm acquired Fortune Insurance, a property and casualty firm headquartered in Tacoma, Washington.
With an established presence in employee benefits, HR, and financial services throughout Washington, the strategic acquisition expands OneDigital’s capabilities into property and casualty insurance. It also advances OneDigital’s commitment to delivering integrated, endto-end solutions for employers.
Founded in 2014 by President Grant Baldwin, Fortune Insurance has earned a reputation for delivering general and professional liability, property and vehicle coverage, excess and umbrella policies, workers’ compensation, employment practices liability and intellectual and product liability. Through the partnership, the Fortune team gains access to OneDigital’s nationwide network of P&C resources. The collaboration strengthens OneDigital’s P&C presence across the Western region, complementing its existing offices in California, Colorado, Idaho and Utah.
People National
IMA Financial Group, headquartered in Denver, Colorado, hired Stephanie Crochet as national energy practice leader. Crochet has over 25 years of experience in the energy sector, most recently serving as director, risk and insurance with Plains All American Pipeline, L.P. Crochet’s career launched in quality management with Det Norske Veritas before transitioning in 2001 to the brokerage side of the insurance “trifecta”—consumers, brokers, and insurers. She has spent the last 15 years in risk management for Plains All American Pipeline and GulfMark Offshore. As national energy practice leader at IMA, Crochet will oversee a team of over 75 energy insurance professionals and lead IMA’s expanding energy specialty practice out of Houston.
previously led the contingent legal risk insurance team at Liberty Global Transaction Solutions and worked as a representations and warranties insurance underwriter. Earlier in his career, Spinelli was a litigator, managing a wide range of commercial and insurance coverage disputes across the country.
Eric Amadori joined Zurich North America as the head of management liability. Amadori has over 20 years of experience underwriting and managing financial line products. His most recent position was managing director of the management professional liability team at Markel, where he worked for 14 years. He earlier held leadership and underwriting positions at Arch Insurance and AIG.
Berkshire Hathaway Specialty Insurance (BHSI), based in Boston, made leadership moves in its North America casualty business.
U.S. construction underwriting team and support the build out of construction casualty field operations.
senior vice president, property marketing account executive at McGriff; and senior vice president, director, Northwest Property at Lockton.
Willis, a WTW business headquartered in New York City, appointed Dom Spinelli as head of transactional insurance claims for North America.
Based in Boston, he leads the claims function within Willis’ Alternative Asset Insurance Solutions (AAIS) industry vertical division. Spinelli has 15 years of experience in insurance and litigation, most recently serving as head of contingent and litigation risk for North America at VALE Insurance Partners. He
Matt Hale is head of U.S. casualty underwriting operations. In this new role, he will oversee BHSI’s regional casualty underwriting teams across the U S. and work closely with Galan Riley, head of casualty, Canada, to coordinate BHSI’s North American casualty strategies. Hale is based in Chicago.
Marcie Stephan is head of casualty, U.S. Central Region. She will oversee BHSI’s casualty underwriting teams, except construction, in the Central U.S. She is based in Chicago.
John Roe is head of North American construction, including construction casualty, construction professional liability and homebuilders liability. He will oversee BHSI’s
Liberty Mutual’s Timothy M. Sweeney, president and chief executive officer, has been elected chairman of Liberty Mutual Holding Co. Sweeney succeeds David H. Long, who is retiring.
East
The Hanover, based in Worcester, Massachusetts, named Dick Lavey to the newly created role of chief operating officer.
Long has been with Boston-based Liberty Mutual for 40 years. He was named president in 2010, CEO in 2011, and chairman in 2013. Sweeney has been with the insurer for about 30 years and became Liberty Mutual’s 10th CEO in its 110-year history in January 2023 after Long’s retirement. Long then became executive chairman.
IMA Financial Group, headquartered in Denver, Colorado, hired Erik Wargo as executive vice president, head of property. Wargo joins IMA’s headquarters team in Denver. Wargo has over two decades of brokerage experience specializing in commercial property programs for risk management clients, with prior experience as vice president, property placement specialist at Marsh; assistant vice president, property broker at Crump;
Lavey has 35 years of experience in insurance and technology, including the past 19 years at The Hanover Group. Since 2017, he has been executive vice president for agency markets. He will continue to lead personal lines and commercial business, as well as sales and distribution, corporate underwriting, marketing, and risk solutions functions. He also will lead the collaboration between the company’s business and technology organizations. Before joining The Hanover in 2004, Lavey was vice president of strategic initiatives for The Hartford’s property and casualty organization and vice president of strategic marketing for The Hartford’s Select Customer division. Before that, he worked at ChannelPoint and Bowstreet software companies and was a strategy consultant for CSC Healthcare.
Vermont Mutual Senior Executive Assistant Paula Clark was recently named regional vice president of the International Association of Insurance Professionals (IAIP), announced at the Region I 2025 Conference held in Hasbrouck
Stephanie Crochet
Dom Spinelli
Timothy Sweeney
David Long
Erik Wargo
Paula Clark
Heights, New Jersey. Vermont Mutual is headquartered in Montpelier, Vermont.
NFP, an Aon company headquartered in New York City, named Joseph D’Agostino as senior vice president, property and casualty. D’Agostino has nearly two decades of experience supporting companies in navigating IPOs, acquisitions and other complex risks. He previously held the position of partner in the mergers and acquisitions and transaction solutions practice at Willis Towers Watson. He also spent over a decade with Aon as a senior vice president and leading broker in financial and transactional risks.
Southeast
Security First Insurance, headquartered in Ormond Beach, Florida, named Scot Moore as chief financial officer. Moore has 20 years of industry experience, including budget development, investment portfolio management and audits. He joined Security First in 2022 as chief accounting officer.
Lloyd Stofko is the company’s new chief reinsurance officer. He joined Security First in 2020 as vice president of ceded reinsurance. Before that, he spent 25 years at Guy Carpenter as a reinsurance broker.
James “Jay” Robinson, formerly with Aon, joined World Insurance Associates as Southeast division revenue leader. Robinson has over 20 years of experience in the insurance industry and
was recently senior vice president and sales director for the Atlanta market at Aon, the global risk management firm. Before that, he was with Marsh McLennan Agency, overseeing risk and employee benefits growth.
RegEd, headquartered in Raleigh, North Carolina, appointed Kevin Bieri to the new role of chief architect. Bieri has over 15 years of technology and financial services experience. Most recently, he served as vice president of architecture at Fidelity Investments. Prior to that, he was director of architecture at ION Group, following its acquisition of Allegro Development Corp., and held engineering and architecture roles at BlueCrest Capital Management, Credit Suisse and Barclays Capital.
Midwest
Inszone Insurance Services, headquartered in Rancho Cordova, California, made a series of leadership promotions in its Midwestern region.
Jared Strong is now vice president of Illinois. Strong has been with Inszone for five years, previously serving as a producer.
Brian Cook has been appointed vice president of Iowa & Strategic Partnerships. Formerly the COO and owner of Loft and Co., Brian has extensive experience in operational leadership, licensing, infrastructure and carrier relations. In this expanded role, he will drive efficiency across Iowa.
Unison Risk Advisors (URA), headquartered in Cleveland, Ohio, hired Joe DiRocco, formerly an executive with Fifth
Third Bank, as its new chief financial officer. Brett Tomoff also joined the insurance brokerage and risk management firm as its vice president of financial planning and analysis.
vice president of Colorado.
DiRocco has over three decades of experience, most recently serving as the asset-based national sales manager at Fifth Third, where he was also the regional president for Northeastern Ohio. His also served in various senior leadership roles, including Ohio president for Citizen’s Bank.
Tomoff has 15 years of experience in corporate finance, financial planning, treasury, data analytics and IT. Before joining URA, He most recently served as vice president of finance at TravelCenters of America.
West
Venbrook Group launched a new corporate benefits and specialty health division and named Alison Myers its president. The division is an expansion of the firm’s employee benefits practice.
Myers most recently served as executive vice president of the employee benefits practice. In her expanded role, Myers develops and executes national growth strategy. Venbrook is headquartered in Los Angeles.
Inszone Insurance Services, headquartered in Rancho Cordova, California, promoted Layne Bowen to vice president of Utah. Layne previously owned L.A. Bowen Insurance in Orem, Utah.
Scott Ligouri was named
Ligouri previously served as CEO and owner of Loft and Co. Ligouri takes over the role from Ann-Marie Delmonte, who is now commercial sales team manager for Colorado.
Max Cusator takes on the role of staff development manager, leading the company’s staff development efforts.
Cusator focuses on training, professional development and ensuring standards of client service throughout the organization.
Josh Smith joined Alliant Insurance Services, headquartered in Irvine, California, as senior vice president and sales director within its employee benefits group.
Based in California, Smith will direct business development activities across the western region.
Smith has nearly 30 years of sales leadership experience.
Most recently, he served as district sales manager for Insperity, a national professional employer organization, where he led sales efforts in the Sacramento area. Before that, Smith was a regional sales manager for Oracle.
Josh Moreau joined Alliant as vice president of business development within its employee benefits group.
Based in Los Angeles, Moreau focuses on private equity and mergers and acquisitions.
Moreau was previously chief of staff at Easy Rock Capital LLC and event manager at Manhattan Center and CFS Consulting.
Joe DiRocco
James Robinson
Josh Smith
Closer Look: Political Risk
Rising Civil Unrest, Political Violence Remains Top 10 Risk for Global Businesses: Allianz
By L.S. Howard
Soaring levels of civil unrest and political violence is a key concern for businesses of all sizes as well as for their insurers, according to a report published by Allianz Commercial.
The impact of civil unrest or strikes, riots and civil commotion (SRCC) activity is the political risk and violence exposure that companies fear most, with more than 50% of businesses ranking SRCC as their main worry, said the report, titled “Political violence and civil unrest trends 2025.”
The report derives much of its data and conclusions from the Allianz Risk Barometer 2025, an annual survey of global businesses, which revealed in January that political risks and violence has been a top 10 global risk in four of the past five years—2025, 2024, 2023, and 2021.
Part of the problem for businesses is the unpredictability
of the size, location, and length of these incidents, said the Allianz Commercial report, explaining that unlike other perils, such as flood or windstorm, it is difficult to prepare in the same way to mitigate losses and build contingency and business continuity plans.
Political violence activity can affect businesses in many ways, the report indicated.
“In addition to endangering the safety of employees and customers, those in the immediate vicinity of unrest can suffer business interruption losses and material damage to property or assets, while indirect damage can be inflicted on companies in the form of ‘loss of attraction’ or ‘denial of access’ to their premises.”
Excluding the ongoing social unrest in the Balkans and Turkey, Allianz noted, there have been over 800 significant anti-government protests in more than 150 countries, “with more than 160 significant events taking place during
2024 alone.” The report said that 18% of these protests lasted for more than three months.
“Allianz research shows that in the top 20 countries for frequency of protest and riot activity around the world during 2024, there were more than 80,000 incidents,” with India, the U.S., France, Germany, Turkey, and Spain among the top hotspots.
“As unrest can now spread more quickly and widely— thanks in part to the power of social media—economic and insured losses from such activity can be considerable,” said the Allianz Commercial report.
“The patterns of protests and violence over the last 10 years has shown that targets such as government buildings, transport infrastructure, retail premises, and distribution centers for critical goods can be specific but, often, businesses are victims of their locality and their footprint.”
Rising Insurance Losses
Insurers are also very concerned about the increase in the frequency and severity of SRCC events.
“Events such as riots in Chile and South Africa and the Black Lives Matter unrest in the U.S. have resulted in insured losses well in excess of US$10 billion over the past decade, surpassing other levels of political violence and terrorism insurance claims,” the report confirmed.
“In certain hotspot territories, losses can rival or surpass those from natural catastrophes, while in others, although the direct impact may be minor, events can still trigger long-lasting changes in the societies they affect,” it added.
Religious and Political Terrorism
The report went on to discuss the major threat of religious and political terrorism from political extremists who are motivated by both far-right and far-left ideologies.
Far-right motivated terrorism is considered by many to be the fastest growing or most prominent domestic security threat, Allianz said, pointing to analysis from the International Observatory for Studies on Terrorism (OIET), which shows there were well in excess of 100 reported terrorism and right-wing extremist incidents during 2024, driven primarily by events in the U.S. (with 76 incidents) and followed by Germany (with 19 incidents).
“Meanwhile, far-left extremists are increasingly targeting individuals or companies
who they see as contributing negatively toward issues such as capitalism, climate change, or inequality,” the report said.
“More frequent and severe actions during 2025 and beyond can be anticipated. In addition, extremists are increasingly acting on their own, making them harder to track, disrupt, and prevent,” Allianz Commercial said.
Risk Management and Insurance
Turning to the risk management and insurance techniques that can help businesses mitigate against the political violence peril, the report noted that almost all property classes of insurance offer some degree of SRCC coverage, and as a result, businesses are showing increasing interest in buying stand-alone coverages.
“Businesses with multicountry exposures are showing a greater interest in political violence coverage, but we are also seeing greater engagement from the SME and mid-corp space about these risks, a true reflection of increasing concern in this segment,” according to Tim McGain, a regional head of Property at Allianz Commercial, who is quoted in the report.
“Business interruption has been ranked as a top two risk for the past decade in our annual Allianz Risk Barometer,” said Srdjan Todorovic, head of Political Violence and Hostile Environment Solutions, Allianz Commercial.
The causes of business interruption losses can range from natural catastrophes to manmade causes and malicious risks such as political
violence, terrorism, sabotage or cyber events, sanctions, tariffs, trade wars, and actual wars, Todorovic added.
‘Businesses with multi-country exposures are showing a greater interest in political violence coverage, but we are also seeing greater engagement from the SME and midcorp space about these risks, a true reflection of increasing concern in this segment.’
“It would therefore be negligent for large companies to not consider political violence and terrorism exposures in the same vein as they are considering the impact that
natural catastrophes might have on their operations. Political violence perils need to be factored into business interruption, continuity, and planning,” he warned.
Risk Mitigation Suggestions
The report went on to offer suggestions from Allianz Commercial’s risk experts about what companies can do to safeguard their assets and employees while ensuring business continuity in the event of unrest or a political violence incident. The list follows here:
• Stay abreast of news on planned protests and government policies and implement a business continuity plan (BCP) in advance if you do not have one in place already.
• Revise and update your BCP if needed. Your BCP and your business processes might need amending if a regime introduces new requirements
or if there is a risk of sanctions.
• Retail businesses on high streets (or main streets) should increase security and/ or reduce inventory, including those with high-value assets, those that are multinational or foreign-owned, petrol stations, pharmacies, and banks. Consider temporary relocation of inventory or assets if you are highly likely to be affected.
• Implement increased security measures at distribution center. Prepare for moving more services online to support business continuity.
• Protect your supply chains by ensuring diversity of geography and companies.
• Review your insurance policies. Property policies may cover political violence claims in some cases, but insurers also offer specialist coverage to mitigate the impact of strikes, riots and civil commotion via the specialist political violence market.
Special Report: Workers’ Compensation
By Andrea Wells
The workers’ compensation market appears to be doing well again.
Ahead of its annual “State of the Line” report to be released in early May, National Council on Compensation Insurance (NCCI) Chief Actuary Donna Glenn told Insurance Journal that while NCCI can’t predict the future, there doesn’t appear to be any “imminent reversal” to these positive current trends.
NCCI’s 2024 report showed that while premiums across the workers’ comp market increased just 1% overall in 2023, the line remained the most profitable in the property/ casualty market, with a combined ratio of 86.
Last year was the seventh consecutive year the workers’ comp line held a combined ratio below 90, according NCCI, an organization that provides analysis and recommendations on workers’ comp loss costs and rates in 38 states.
But the possibility of a change in that trend has some workers’ comp specialists asking: What’s next for the line, and when, not if, will the market turn?
Patrick Edwards, area senior vice president, workers’ comp practice leader, for RPS, believes there is some “masking” going on when looking at the line’s good news results.
“When I talk to various carriers, some of those carriers, their loss ratios are not good,” Edwards said. “They’re speaking in terms of the claims that they’re seeing and what’s going on, so I’m listening to them,” he said. Like other specialists in the line, he’s waiting to see the upcoming “State of the Line” report and results but added
that those results look back.
“From my vantage point—in the trenches—we see things where they are out in front versus behind.”
“My current view of the WC marketplace into 2025 has me looking out the front door of my house, and from an accident year standpoint, I’m seeing storms rage out in front of my house,” Edwards said in RPS’s recent report, 2025 US Market Outlook on Workers’ Compensation.
“The storms are due to claims-related losses/profitability issues associated with healthcare inflation and more. But as I walk to the back of my house, the way the WC carriers are processing claims reserve releases, all of a sudden the storms disappear, and it’s a beautiful, sunny day out from a calendar year standpoint, with the reserve redundancy releases from the WC carriers masking what’s really going on,” he added.
Reserve Redundancy
Underwriters say there
continues to be significant reserve redundancy in the workers’ comp segment, but reserve releases in recent years may be hiding underlying deterioration of accident year combined ratios.
“There’s been a tremendous amount of new capacity that’s entered the workers’ comp space,” Edwards said, adding that insurtechs that entered the market over the past several years added significant capacity as well as pressure on rates. But, he added, some legacy workers’ comp carriers have begun to show higher accident year loss ratios in this competitive environment.
“You’re seeing some sizable numbers there (accident loss ratios), and that’s for those markets that are established, they have legacy,” he said. “They have larger reserves and the ability to release reserve redundancies.” But “if you look at their financials, they’re looking at accident years that are maybe 110, 115,” he said. However, after their reserve releases, combined ratios end
up showing closer to 88, 87,” he said. “That’s where the masking aspect comes into play,” he noted. “The (sizable) accident year loss ratios, they’re happening,” he said. In his view, those “accident year” figures are a more telling indicator of what’s really going on in the marketplace.
Still, Edwards believes the overall market for workers’ comp is “working very well” and adapting to the challenges it faces. “It remains a highly competitive market, with high levels of available capacity and WC carriers looking to write as much in the product line as they can.”
Claims vs. Rates
NCCI continues to see a steady decline in claim frequency over the past two decades, with lost-time claim frequency declining by 8% in 2023—more than two times the size of the long-term average decline.
“Continued long-term declines in frequency, moderating severity, and growing continued on page 22
Special Report: Workers’ Compensation
continued from page 21
wages are trends that NCCI analysts watch closely,” Glenn told Insurance Journal.
There’s a lot to consider about today’s labor market and how potential economic changes, or a recession, could impact the line going forward.
“There are multiple unknowns at this point,” Glenn said, adding that the NCCI is paying close attention to the labor market and any changes that might happen this year. “Each industry has its own story when it comes to additional risk for employees and the line overall,” she noted.
“The impact of labor market shifts is different by industry.” Changes in employment in each sector of the economy and the details of those changes do influence the number of claims overall, Glenn said.
But the big question everyone is asking is whether the market cycle for workers’ comp will take a turn in 2025.
Typically in expanding economic times, and when
payrolls expand, more workers’ comp coverage is needed, often leading to an increase in claims activity. But during an economic downturn, when premiums fall, claims tend to decline. That’s not what is happening today.
“What we’re seeing in workers’ compensation is actually very atypical,” Glenn said in a recent NCCI’s podcast, State of the Line, in February. “And while many are asking, ‘When will workers’ compensation turn?’ we often modify that and say, ‘Given a decade of consistent results, will there be a turn?’”
NCCI said workers’ comp combined ratios have remained below 100—the mark of profitability—in recent years due to three primary trends: continued long-term declines in frequency; moderate severity; and growing wages. When wage growth outpaces frequency and severity changes, loss costs will continue to decrease.
However, Glenn said that changes in workers’ comp
that happened a decade ago continue to help drive better results for the system overall, something she calls “system maturity.” For example, “today, we have medical fee schedules that are effectively managing cost increases,” she said. Those fee schedules have been effective in helping regulators, and the system in general, make more informed, data-driven decisions on cost, she said.
Medical costs are always a top priority for the system because most of the cost in workers’ comp stems from medical. “Medical fee schedules implemented by state regulatory bodies have helped stabilize and regulate costs for workers’ compensation,” she said.
Medical inflation is always a concern, and that hasn’t changed. But a recent NCCI report on medical inflation specific to workers’ comp shows that physician care price changes as of Jan. 1, 2025, for Medicare and Medicaid patients were smaller than in 2024, leading to slower
year-over-year growth in prices for the largest areas of workers’ comp spend.
‘When I talk to various carriers, some of those carriers, their loss ratios are not good.’
Glenn also noted that the softening trend in price growth for facilities persisted again in Q1. “Price growth for both hospital inpatient services and hospital outpatient services remained below recent averages and may trend back up toward those trends over the course of the year,” she said. When it comes to medical costs, price and utilization matter, she added. “Price being how much an individual procedure costs, while utilization is the amount of service provided.”
Tariffs and Economic Uncertainty
Economic uncertainty and the potential impact of tariffs on the economy could also be catalysts in changing market conditions, some experts say.
“The economy, and the strength of the most recent few years of economy, have been helpful in keeping claims low,” said Adam Friedlander, president of Friedlander Group in New York. But if the economy changes and as predictions of a recession come into play, then that might mean change in the workers’ comp system, he said.
Friedlander, who specializes in workers’ comp for businesses across New York and manages 10 safety groups underwritten by the New York State Insurance Fund, has enjoyed fruitful times in the
line over the past 10 years. He said his firm’s performance, profitability, and the dividends they pay to members in his safety groups have performed “amazingly well” in this workers’ comp environment. But he believes the bottom of the market is inevitable.
Today, he sees claims continuing to trend down but he’s not sure why. “When I ask the top experts in the field, ‘Why are claims going down, what’s the silver bullet reason?’ I never can quite get an answer,” he told Insurance Journal. “I mean, yes, there’s improved safety, the economy has a lot to do with it; it’s been strong. But I kind of always felt that at the end of the day it’s just cyclical—except this cycle hasn’t seemed to turn, yet.”
He said in home healthcare, for example, rates are down 60% since 2018. “It’s just a gigantic decline in rate and it’s still profitable,” he said. Those profits flow back to his group members in the form of a dividend, he said. “But I do think when you cut the premium down to the bone, when you cut it 60% in terms of rate, eventually you’re going to hit bottom,” he said.
Friedlander has been expecting the end of the market cycle for some time. “But each year the rating board comes out with an additional drop in rate,” he said. “But I think we’re very near the bottom” he added. “How much further can you go?” he asked. “Eventually claims will have a bad year, and with rates so low, there’s going to be no alternative but to raise the premiums,” he said. “Even though it’s gone on longer than I think anyone expected, it will hit bottom and then have to go up.”
Threat of Rising Costs in Pharmaceuticals
Should tariffs come to the pharmaceutical industry on imported drugs, that could also bring change to the workers’ comp system.
The chief executive of W.R. Berkley Corp., W. Robert Berkley Jr., said during a recent first-quarter 2025 earnings conference call that the impacts of tariffs on loss costs for the industry as a whole should not be ignored, including for workers’ comp.
Berkley noted that a lot of pharmaceuticals are manufactured outside the United States, highlighting a potential link between tariffs and workers’ comp medical costs.
“As you would expect, we’re particularly focused on both auto, particularly around the physical damage, as well as property. But I think it would be a mistake for one to discount other lines,” he said.
During past conference calls, Berkley has spoken about his reservations regarding the workers’ comp line— specifically the unappreciated impact of medical severity of claims costs even as frequency has trended downward and pricing decreases have continued.
An analyst asked Berkley in the Q1 call to discuss the potential impact of a recession on workers’ comp insurers, specifically asking whether
higher-than-historical wage inflation levels had been a tailwind for the industry in recent years, as suggested in a recent article by Carrier Management. “Could comp remain a profitable line during a recession?”
Berkley agreed that significant wage inflation emerged when the country was “coming out of COVID,” and that the wage inflation “comfortably outpaced” medical inflation to create “more tailwind or wiggle room for the industry.” But he added that “medical costs are a little bit more than 50% of every claim dollar. So, one should not, in our opinion, underestimate the significance around that.”
Managing Safety in Workers’ Comp
After more than 25 years of counseling businesses on ways to improve worker safety, Steven Simon, senior risk control manager for Safety National, said the one piece of advice he could offer to any size organization wanting to improve their culture of safety is to be good listeners and coach.
“What really helps drive success around safety is coaching and mentoring,” he told Insurance Journal.
“When you have an environment where you’re coaching and mentoring your employees and you’re giving them feedback, really helping them thrive and excel, you are going to have an all-star employee,” Simon said. That environment keeps employees invested and wanting to excel in their
job, he added, and they want to take safety seriously.
He advises businesses to really listen to their employees. “The employees who do the job, they’re closest to the risk, and they should have the most to say about how the job gets done.”
Investing in technology and tools that aim to improve safety is great, but even large investments in those tools do not guarantee improved safety results, he said. Plus, some investments are out of reach for small- and medium-sized businesses, he added.
But if a business prioritizes safety over productivity, and has the right equipment, the right culture, the right people, they will have great results in worker safety, he said. That’s not always an easy thing to do, he added. “Because every organization has to be profitable
and make money … but it’s either pay now or pay later.”
“I have seen small businesses, small organizations, be very successful because they prioritize their employees, they invest in their employees, they have the right equipment, they don’t take shortcuts,” he said.
“Employees feel that, and so they come to work and they’re productive, and as a result, they get maximum productivity,” he added.
“In the 25 years I’ve been doing risk control, I’ve seen some amazing clients—insureds who have not used safety technology and yet have a phenomenal, fantastic safety program; better than some insureds who are using technology.”
Listen, mentor, coach and support employees, from the top down, he added.
Special Report: Workers’ Compensation
Anticipated Regulatory Changes With OSHA
With President Donald Trump now in his second term, several changes to the Occupational Safety and Health Administration (OSHA) are anticipated based on his previous administration’s approach, current policy signals, and the broader deregulatory agenda he has championed. Here’s what we expect.
Full OSHA Enforcement Remains Suspended
The Occupational Safety and Health Review Commission (OSHRC), the body that adjudicates contested OSHA citations and penalties, has lacked sufficient members to form a quorum since April 28, 2023, and the remaining commissioner’s term expires in May. OSHRC members are appointed by the president, with the advice and consent of the Senate, and are required by law to act only with a quorum of two of the three-member commission. Deputy Solicitor of Labor Jonathan Snare was recently nominated to serve, but unless he is confirmed before the April 27 expiration of Commissioner Atwood’s term, a quorum will still be lacking. Absent a quorum, the significant backlog of cases before the OSHRC w ill remain unresolved.
with fewer new safety standards developed and a focus on rolling back existing ones. This trend is expected to continue, amplified by the “10-to-1” deregulation initiative, which requires agencies to eliminate 10 regulations for every new one introduced. For example, the Biden-era proposed Heat Injury and Illness Prevention Standard, which aimed to protect workers from extreme heat, is unlikely to be finalized. President Trump’s administration paused this rule via a “Regulatory Freeze Pending Review” memorandum issued on Jan. 20, and experts predict it may be scaled back or abandoned entirely, leaving enforcement to OSHA’s general duty clause or state-level rules.
Shift in Enforcement Priorities
During President Trump’s first term, OSHA’s enforcement softened, with a 10% drop in inspectors (from 875 in 2018 to 790 by 2020) and a focus on voluntary compliance programs over punitive fines. This pattern is expected to be repeated, with fewer inspections and a business-friendly approach emphasizing collaboration rather than penalties, especially for small businesses and first-time offenders. The nomination of David Keeling, a former safety director at UPS and Amazon, as OSHA head signals a preference for practical, industry-aligned leadership that may prioritize efficiency over aggressive oversight.
Rollback of Biden-Era Rules
Reduced Regulatory Activity
President Trump’s first-term administration (2017–2021) saw a significant slowdown in OSHA rulemaking,
Two key Biden-administration OSHA initiatives are likely at risk: the Walkaround Rule (effective May 31, 2024), which allows third-party representatives (like union officials) to join inspections, and the expanded electronic injury reporting requirements (reinstated Jan. 1, 2024). The
Walkaround Rule faces legal challenges from business groups, and President Trump’s team could settle these cases by withdrawing it. Similarly, expanded electronic reporting, which requires detailed public-injury data from large employers with 100 or more employees in certain designated high-hazard industries, is expected to be scaled back, as it was in 2019 during President Trump’s first term, thereby reducing administrative burdens and recordkeeping requirements on companies.
Legislative Threats to OSHA’s Existence
While not a direc t Trump administration action, Rep. Andy Biggs (R-AZ)
Thomas More Buckley
By Robert W. Clark and
reintroduced the Nullify OSHA Act (NOSHA) in February 2025, aiming to abolish OSHA and devolve workplace safety to states and private employers. Though experts consider its passage unlikely due to slim Republican majorities and the need to eliminate the Senate filibuster, it reflects a broader conservative push that aligns with the current administration’s goal of shrinking federal oversight. The Trump administration’s stance on this bill remains unclear, but the administration’s deregulatory bent suggests sympathy for reducing OSHA’s scope.
Impact of Expected Layoffs at NIOSH
The National Institute for Occupational Safety and Health (NIOSH) was created by OSHA as a research
arm for high-risk workers and for compiling scientific bases for new regulations. Approximately two-thirds of its workforce was laid off as part of the Department of Health and Human Services layoffs. Given that, it will be difficult or impossible for any new regulations to be promulgated, and NIOSH investigations conducted in the past—for example, into workplace disease outbreaks and certification of respirators—will likely be untenable with the minimal workforce remaining.
State-Level Impact
Even if federal OSHA scales back, states with their own OSHA plans (e.g., California, Oregon, Washington) will likely maintain or strengthen rules like heat safety standards, creating a
patchwork of regulations. This means employers in these states won’t see relief from safety requirements despite federal rollbacks.
Leadership and Budget Pressures
David Keeling’s appointment, alongside deputy Amanda Wood Laihow (a former OSHA adjudicator), points to a pragmatic, less-regulatory focus. Budget cuts or flat funding, as seen in President Trump’s first term, could further limit OSHA’s ability to hire inspectors or pursue new initiatives, reinforcing a leaner agency footprint.
President Trump’s second term is poised to bring a lighter federal OSHA presence—fewer rules, softer enforcement, and potential reversals of recent policies—while state and industry self-regulation may fill the gaps. Employers should prepare for a shift toward voluntary compliance but remain vigilant about state-specific obligations.
Robert W. Clark is a partner in Goldberg Segalla’s Workers’ Compensation and OSHA and Worksite Safety practice groups. He offers experienced, personal, and reliable workers’ compensation and liability-related defense for employers, insurers, self-insured employers, professional employer organizations, and third-party administrators. With a focus on helping clients mitigate risk, he also provides consultation on OSHA worksite safety compliance and reporting requirements, helping those he represents effectively navigate the workers’ compensation claims process in the aftermath of worksite accidents.
Thomas More Buckley serves as vice chair of Goldberg Segalla’s Construction Litigation and Counsel practice and represents businesses in complex commercial litigation. He defends clients against catastrophic personal injury and death claims, construction defect, unfair trade practice claims, and a wide variety of business and contractual disputes, including employment discrimination, wrongful termination, and business dissolution issues. He also defends professional liability and licensing board actions faced by architects, engineers, real estate brokers, and other professionals.
News & Markets
NAMIC,
Big ‘I’ Join Call to Do Away With Federal Insurance Office
By Chad Hemenway
The National Association of Mutual Insurance Companies and the Independent Insurance Agents & Brokers of America are the latest from the industry to join a call in support of a measure to abolish the Federal Insurance Office.
The trade groups on April 11 submitted a letter to Montana Congressman Troy Downing, who earlier this year introduced H.R. 643, the “Federal Insurance Office Elimination Act.”
“Since [the FIO’s] inception in 2010, our associations have echoed concerns from functional regulators over FIO’s potential for duplicative and overreaching workstreams,” NAMIC and Big I wrote to Downing, R-Mont., an insurance commissioner before running for Congress last year. “Unfortunately, these concerns have been validated over the course of the office’s existence, as it has undermined state-based regulation and exerted inappropriate pressure on industry participants, including unwarranted threats of subpoenas.
“These actions cross directly into work already being performed by state regulators, creating inconsistent expectations, duplication, and costs
that are ultimately borne by consumers.”
The support to get rid of the FIO, created in 2010 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is the latest from the industry. The National Association of Insurance Commissioners (NAIC) this year released its 2025 agenda, which included the elimination of the U.S. Treasury’s FIO. At the end of 2024, nine insurance commissioners urged the Department of Government Efficiency (DOGE) to look at the FIO.
“Since its inception, FIO has fluctuated between ineffectiveness and outright dishonesty in it dealings with the states,” said the commissioners in their letter to DOGE.
NAMIC and Big I said many of FIO’s reports or positions have “[failed] to include factual and data-driven contributions and perspectives.”
The latest publication was an early 2025 report on the affordability and availability of insurance that the FIO called the “most comprehensive data on homeowners insurance in history.” Predictably, the opinion was not shared by the insurance industry.
David A. Sampson, CEO of the American Property Casualty Insurers Association of America (APCIA), at the time said the FIO report “provides an incomplete explanation about the affordability and availability of insurance.”
NAMIC’s Jimi Grande, senior vice president of federal and political affairs, said FIO’s report “is a frustration to anyone who understands the basic insurance principle of matching rate to risk.”
The elimination of FIO is not a new idea. In 2023, GOP members of the House of Representatives introduced a bill to ditch FIO.
NHTSA Estimates Traffic Fatalities in 2024 Were Lowest in Five Years
Early estimates from the National Highway Traffic Safety Administration for traffic fatalities in 2024 indicate that the number of people who died in traffic crashes will reach the lowest point in five years.
The NHTSA estimates project that 39,345 people died in traffic crashes last year, a decrease of 3.8% from the 40,901 fatalities reported in 2023—the first time since 2020 that the number of fatalities fell below 40,000.
The quarterly fatality declines that began in the second quarter of 2022 also
continued, with fourth-quarter 2024 marking the 11th consecutive quarterly decrease in traffic fatalities, according to the administration.
“It’s encouraging to see that traffic fatalities are continuing
to fall from their COVID pandemic highs. Total road fatalities, however, remain significantly higher than a decade ago, and America’s traffic fatality rate remains high relative to many peer nations,” NHTSA Chief Counsel Peter Simshauser said in a statement. Americans are driving more miles while fatality rates continued to decrease.
Preliminary data
from the Federal Highway Administration shows vehicle miles traveled increased by 1%, while the fatality rate for 2024 decreased to 1.20 fatalities per 100 million vehicle miles traveled. That’s the lowest since 2019 but still above the average rate of 1.13 in the seven years before COVID.
NHTSA also estimates that fatalities fell in 35 states and Puerto Rico in 2024, while increases are projected in 14 states and the District of Columbia, as compared to 2023. One state remained unchanged.
News & Markets
Poll: High Cost of Living Fears Were Made Worse by LA Wildfires
The high cost of living remains a main concern in America’s largest exacerbated by the January wildfires is one of the biggest worries bothering residents of Los Angeles County.
A survey focused on the county, the nation’s largest with 9.7 million people, also shows worries about the Trump Administration’s latest round of efforts to deport and curtain immigrants, and the persistent problem of homelessness.
uting factor to why the overall QLI score is unchanged from last year, according to the organizers of the survey.
A significant percentage of county residents (44%) are worried that they, a member of their family or a friend could
be deported by federal authorities. Latinos (54%), residents ages 18-29 (57%) and 30-39 (52%) are the likeliest to have this concern. The survey included 1,400 L.A. County residents and was conducted February 23 to March 9.
The annual survey from the UCLA Luskin School of Public Affairs produces a Quality of Life Index. The QLI was unchanged this year, but the score of 53 matches last year’s lowest in the 10 years of the QLI’s existence. The survey has hit this low point in three out of the last four years.
In addition to the standardized questions included in the QLI survey, questions were included this year that touched on the L.A. wildfires.
The survey found the collective trauma of the January wildfires in communities of Pacific Palisades and Altadena is more widespread than anticipated, with effects felt across the county in areas ranging from North County to South Bay.
More than two-fifths of people polled said they know someone affected by the fires, while 14% said that an actual loss of income caused by the fires applied a great deal to them personally, and another 13% said it applied somewhat.
The majority of county residents (89%) believe that homeowners who lost their property to the fires should be allowed to rebuild at the same location. The same question was asked in 2019 after the Woolsey Fire near Simi Valley, and 76% agreed with allowing for rebuilding in the same location. About half (52%) of those polled are willing to increase taxes to fund efforts to improve wildfire response.
This year, cost of living has soared to its highest salience level, with three-quarters respondents saying it is the most important category affecting their quality of life over all the others. This is a main contrib-
News & Markets
California Sets Aside $170M to Thin Vegetation, Forests to Help Prevent Wildfires
Gov. Gavin Newsom signed new legislation on Monday that will provide more than $170 million in state funding to help prevent wildfires while signing an order aimed at speeding up the work by easing environmental permitting.
The funding — which the Democratic governor said was part of a broader effort to better protect communities ahead of peak fire season — comes as the state is under extraordinary pressure after the January infernos that devastated Los Angeles communities.
California has already experienced its second most destructive fire year on record, with more than 16,000 homes and other buildings damaged or destroyed by the two major fires in the Los Angeles area. Most of the destruction occurred in neighborhoods where development meets wildland, a high-risk area known as the wildland-urban interface.
The money comes from a $10 billion bond measure for environmental projects approved by California voters last year.
Authorized as part of a fast-tracked, early action budget bill approved by the Legislature, the funds will be paid to six
conservancies throughout California. The agencies, which operate under the governor’s Resources Agency, will manage the removal of vegetation and thinning of forests within their regions.
At least half, $85 million, will be directed to conservancies in Southern California, while $54 will focus on the Sierra Nevada. The approval of the funding comes after Newsom in March declared a state of emergency to clear flammable brush.
“With this latest round of funding, we’re continuing to increase the speed and size of forest and vegetation management essential to protecting communities,” Newsom said in a written statement. “We are leaving no stone unturned — including cutting red tape — in our mission to ensure our neighborhoods are protected from destructive wildfires.”
The challenge of fire prevention in California, which experts say has been worsened by climate change, has become increasingly political. During President Donald J. Trump’s first term, the president repeatedly blamed wildfires on California failing to manage vegetation growth, even though the majority of forestland in the state is under federal, not state, ownership.
“You gotta clean your floors, you gotta clean your forests,” Trump said during a campaign speech in 2020, according to Politico. “There are many, many years of leaves and broken trees and they’re like, like, so flammable, you touch them and it goes up.”
In the wake of the Los Angeles fires, Trump also inaccurately blamed the state’s water policies for the blazes and threatened to withhold federal aid unless the state addressed a variety of policies related and unrelated to wildfires.
Included is about $31 million each for the Sierra Nevada Conservancy, Santa Monica Mountains Conservancy, State Coastal Conservancy, and the San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy. The California Tahoe Conservancy and the San Diego River Conservancy will receive about $23 million each.
In addition to the legislation, Newsom signed an executive order that allowed wildfire prevention projects to benefit from streamlining provisions outlined in his March emergency proclamation, which suspended certain environmental laws, including the California Environmental Quality Act and the California Coastal Act for projects deemed urgent.
“Unfortunately, this money will go toward logging projects that skirt environmental review and harm forests and the climate,” said Shaye Wolf, climate science director at the environmental group Center for Biological Diversity. “This funding doubles down on forest destruction rather than investing in real wildfire safety measures like home hardening in communities.”
Newsom earlier this year promised $2.5 billion for various wildfire resilience projects. Prescribed burns, a land management tool designed to reduce fuel loads, are a major part of the state’s strategy.
Wildfire season is starting earlier and lasting longer, exacerbated by climate change. Altered cycles of dry and wet years build up vegetation that is vulnerable to fire, and California’s wildfires are acting more erratically and burning longer.
Copyright 2025 Associated Press. All rights reserved.
My New Markets
Best-In-Market Auto Insurance
Market Detail: Access 20+ top auto carriers, no fees, industry-leading commissions. The convenient Auto Carrier Store allows clients to request and manage access to 20+ top auto carriers from a single, easy-to-use platform—simplifying business and maximizing options. Offered by First Connect Insurance Services.
Available Limits: Not Available
Carrier: Not Available
States: All 50 states and the District of Columbia
Contact: Ori Menashe, ori@FCIS.com, 877-287-6055
Convenience, Grocery, Beer, Wine, and Liquor Stores
Market Detail: Quote convenience, grocery, beer, wine, and liquor stores online in minutes without an upfront appointment. Bind and get policies the same day! E&S carriers rated A or better by AM Best. Coverages: General liability up to $1 million/$2 million; property limits up to $3.8 million TIV per location/$5.8 million per policy; property up to $10 million TIV in Alabama, Georgia, Florida, Louisiana, Mississippi, South Carolina and Texas; products-completed operations included up to $2 million; Business Personal Property up to $250,000 per building; business interruption with property coverage; additional insured coverage; equipment breakdown and theft coverage up to $20,000 available (requires central station alarm). Appetite: 90739 Convenience Stores – No Gas Station, Car Wash or Restaurant; 13673 Grocery Stores; 10145 Beverage Stores – Liquor or Wine; 10146 Beverage Stores – Soft Drinks or Beer. Offered by Pathpoint.
Available Limits: Per Market Detail above Carrier: Non-Admitted States: All 50 states and the District of Columbia excluding Alaska and Hawaii Contact: Marc Mabilog, mmabilog@ pathpoint.com, 202-410-5204
Inland Marine Insurance
Market Detail: Distinguished offers a complete range of Inland Marine products such as contractor’s equipment, builder’s risk, motor truck cargo, and
installation floaters. Program targets retail brokers seeking in-house underwriting services from skilled Inland Marine underwriters. Coverage Highlights: Admitted A- paper; Retail and Wholesale Distribution; Capacity varies by product type; Nationwide Coverage Territory; AAIS Non-filed Inland Marine products (industry standard). Targeted Business: Builder’s Risk constructed of primarily steel or concrete; carriers hauling general freight requiring limits of insurance less than $250,000, not hauling products listed above; heavy equipment with values greater than $5 million and less than $50 million involved in operations not listed above; misc. property types/floaters such as golf courses/carts, food trucks, racing teams, EDP, mobile medical (does not include equipment breakdown), amusement rides/ inflatable, entertainment equipment; rolling stock for Class II and III railroads. Ineligible Business: Builder’s Risk (Located in the state of Florida, located in a public protection class of 7 or higher, wood frame greater than $5 million, located within 75 miles of the Gulf of Mexico or Atlantic Ocean); carriers hauling tobacco products, explosives (including ammunition), liquor, fine art or jewelry, frozen food products, Haz-Mat products or materials, and tires/ tubes; heavy equipment used in recycling, landfills, or scrap metal; oil and gas, offshore, underground mining; tower cranes, gantry cranes, drilling platforms. Offered by Distinguished Programs.
Available Limits: Not Available Carrier: SirusPoint America Insurance Company (Admitted) and SirusPoint Specialty Insurance Corporation (NonAdmitted)
States: All 50 states and the District of Columbia
Market Detail: BriteCo is a leading tech-driven provider of five-star rated standalone jewelry insurance. BriteCo’s Agent & Broker program provides instant quotes and underwriting decisions in minutes. All policies are backed by an AM Best A+ rated insurance carrier (licensed
in all 50 states); no-touch renewals with automated limit updates; no claims reporting to third parties such as C.L.U.E. and A-PLUS; better jewelry coverage at a better price; and no accounting lift – BriteCo manages all payments, claims, reporting and commissions.
Available Limits: Not Available
Carrier: Not Available
States: All 50 states and the District of Columbia
Market Details: AIU, along with its carrier partners manage an exclusive, niche property insurance program underwritten by a group of “A” rated domestic and London based carriers. Program appetite includes all construction classes of well managed habitational properties, as well as other conventional commercial property risks. The program provides adequate capacity to consider larger per location risks, and property schedules. Appetite: minimum TIV $7 million; maximum TIV (per location) $60 million; older and newer well managed frame multi-family; apartment complexes; HOA’s and condo associations; garden-style apartment complexes; apartment buildings; and apartment buildings w/retail on lower floor. Offered by Amalgamated Insurance Underwriters. Available Limits: Minimum TIV $7 million; maximum TIV (per location) $60 million
Carrier: Non-admitted
States: All 50 states and the District of Columbia
Contact: Joseph Indig, hello@aiu-usa. com, 845-426-0400.
Closer Look: Healthcare & Medical Liability
Healthcare Liability Trends to Watch Under Trump’s Administration
The 2025 presidential administration is likely to lead to changes for the healthcare liability landscape.
By Michelle Foster Earle
Potential deregulation initiatives could ease administrative burdens on providers and improve efficiency; however, the potential impacts of these policy changes on patient safety are not yet clear. Careful monitoring and evaluation will be important as new systems are implemented. Expanding access to care, especially through Medicaid, appears to remain a key priority of this administration.
Additionally, price transparency mandates are gaining ground, which may reshape malpractice claims and risk management practices. At the same time, tort reform, including caps on damages, could limit liability exposure for providers while raising questions about incentives for patient safety. And as the use of artificial intelligence (AI) in healthcare grows, new risk and liability concerns need to be addressed.
How these changes unfold will define the future landscape of healthcare liability. Navigating these complex and interconnected trends will be crucial for healthcare providers and insurers in 2025 and beyond, requiring strategic planning to address evolving regulatory, financial, and legal challenges.
This article is part of a series on 25 Trends in Risk Management for 2025. It dives into five important issues for the insurance industry to consider.
Increased Risk of Civil Litigation
The Trump administration has introduced many changes through executive orders, Department of Government Efficiency (DOGE) initiatives, and deregulation. As new policies take shape, those in healthcare professional liability will need to stay nimble and adjust to a more flexible yet complex landscape.
Fewer regulations can reduce red tape,
perhaps making it easier for healthcare organizations to focus on patient care rather than jumping through regulatory hoops. However, changes in regulations affect oversight mechanisms in healthcare and may alter the level of external review applied to healthcare practices.
Disruption in regulatory frameworks also has the potential to create inconsistent or unreliable data, which may elicit process changes for insurers and other stakeholders who rely on data to assess risks.
DOGE cuts at the federal level aim to reorganize or disrupt many of the agencies previously relied upon for healthcare guidelines, statistics, data, research, and regulations. Reductions in force and other cuts at the Health and Human Services Department (HHS), the Centers for Disease Control and Prevention (CDC), the National Institutes of Health (NIH), the Food and Drug Administration (FDA), the Centers for Medicare and Medicaid Services (CMS), and the Veterans Health Administration (VHA) are intended to eliminate unnecessary spending but have also created concern and confusion for many in the medical field who rely on
these agencies for guidance and support. People who perceive inadequacies in their care are more likely to pursue civil litigation. This creates a ripple effect, particularly for healthcare providers. When regulatory agencies fail to enforce compliance, it can create a sense of unfairness or neglect, prompting affected parties to seek legal recourse to address their grievances. Evidence suggests that people and organizations are more likely to sue when regulatory agencies fail to enforce laws and regulations effectively.
More oversight is being pushed to the state level, meaning there is the risk of a confusing patchwork system for both healthcare providers and underwriters looking to insure healthcare providers. Knowing each state’s regulations is crucial, especially for those providers or organizations practicing across state lines. Healthcare providers will need to lean on their national associations and healthcare advocacy groups for guidance amid the rapidly changing legal and regulatory landscape to avoid an increased risk of civil litigation. Organizations are encouraged to keep an ongoing record of changes affecting patient care and
treatment decisions in their setting, as they are happening, to help later if needed with defense.
As deregulation creates more uncertainty, one thing is clear: Healthcare risk experts will be in high demand. Underwriters and insurers may rely more heavily on professionals who specialize in healthcare risk, safety, and compliance. These experts will help navigate the evolving landscape by keeping track of the latest guidance from multiple sources, helping organizations adapt as new systems are implemented state by state, and finding alternative sources of reliable data.
Price Transparency and Malpractice Lawsuits
Price transparency, which is important to the Trump administration, could play a role in reducing the number of malpractice lawsuits.
When patients have more control and information about their care, they’re more likely to choose providers that align with their expectations for quality and price. Additionally, clearer pricing could discourage providers from engaging in practices that harm patients, either financially or physically.
With prices available for all to see, hospitals and doctors may be less inclined to overcharge for services or take unnecessary risks with patients’ care.
Transparent pricing could also make it harder for providers to recommend unnecessary treatments.
Healthcare Tort Reform
While healthcare tort reform hasn’t been a topic of concern in the current Trump administration, it’s an issue that’s historically been important to the president.
In his first term, President Trump expressed clear support for tort reform measures—particularly in the context of medical malpractice lawsuits—and advocated for capping non-economic damages. While the topic hasn’t gained the attention of the White House in this term, the potential impact of tort reform on healthcare remains a key concern for
providers, insurers, and underwriters alike. However, at this point tort reform measures are still being initiated or challenged at the state level.
For healthcare providers, tort reform could bring several benefits for the healthcare industry.
By reducing the number of lawsuits and the overall dollar amounts of damages awarded in malpractice cases, tort reform has the potential to influence liability pricing stability.
Tort reform helps make potential liabilities more predictable. With caps on damages and limits on the types of lawsuits that can be filed, insurers and providers will have a clearer understanding of their exposure to legal action. This can allow them to:
• Allocate resources more effectively to mitigate risks.
Tort reform isn’t just beneficial for individual providers—it could also have a broader impact on the healthcare system as a whole.
In high-risk areas or specialties where the threat of lawsuits is especially pronounced, tort reform could encourage more professionals to enter those fields, alleviating provider shortages in areas such as obstetrics and emergency medicine and ultimately providing increased access to care.
There are challenges to tort reform measures. While tort reform has many potential benefits, critics argue that limiting damages in malpractice cases could unfairly disadvantage patients who are victims of medical errors. They also point out that reform efforts could disproportionately affect those in vulnerable situations, such as low-income patients, who may rely on the legal system for compensation.
Healthcare M&A and Deregulation
The Trump administration may influence how mergers and acquisitions (M&A) unfold in the healthcare sector.
continued on page 30
Closer Look: Healthcare & Medical Liability
continued from page 29
One of the major trends that may occur is the relaxation of regulations surrounding M&A activities. In previous years, there’s been a tendency to scrutinize mergers, especially those involving hospitals and healthcare systems, to ensure competition isn’t stifled and that patient care remains equitable.
Three things we know about healthcare M&As:
• Consolidations come in many forms and involve different providers
• There has been a large number of consolidations in provider markets since the 1990s
• Corporations have been acquiring physician practices for some time.
Trump’s administration could potentially lessen the regulatory hurdles, making it easier for companies to acquire other practices or consolidate systems. This change could lead to an increase in M&A activity, as firms rush to capitalize on favorable legal landscapes.
‘People who perceive inadequacies in their care are more likely to pursue civil litigation. This creates a rip-
ple effect,
particularly
for healthcare providers.’
Organizations that double in size overnight but that don’t yet have the risk and safety infrastructure to support rapid expansion are of concern to the insurance industry in many ways and can lead to added professional liability risks. Here are a few challenges to consider:
• Blending of cultures. When smaller hospitals or practices are acquired by larger health systems, there must be a strategic plan to implement a culture of safety among all caregivers.
• Lapses in care. If care standards aren’t effectively integrated, lapses in care or disruptions in transitions of care may occur, which could result in errors or patient harm.
• Pressure to prioritize cost over quality. If the acquisitions focus more on cost
reduction than quality, providers may face pressure to treat more patients quickly, implement challenging new systems in the name of efficiency, or make other adjustments potentially compromising care and increasing liability risks.
AI in Healthcare
A more recent development from the White House is new policies surrounding the use of artificial intelligence (AI) and procurement in federal agencies.
In April the administration released revised policies on Federal Agency Use of AI and Federal Procurement that aim to remove “unnecessary bureaucratic restrictions, allow agencies to be more efficient and cost-effective, and support a competitive American AI marketplace,” a White House release said on April 7.
For example, the Department of Veterans Affairs (VA) uses AI to support the identification and analysis of pulmonary nodules during lung cancer screening exams. According to the White House fact sheet on the issue, “the AI functionality
improves detection of these nodules, assisting clinicians with life-saving diagnoses.”
While the integration of AI into healthcare systems holds extraordinary promise for enhancing patient care, streamlining operations, and improving diagnostic accuracy, it also introduces significant legal and ethical vulnerabilities. If not carefully designed, validated, and tightly managed, the use of AI can expose healthcare providers to a wide array of legal risks—including malpractice claims, regulatory penalties, and breaches of patient privacy—making robust oversight and governance essential for responsible implementation.
First, data bias can severely limit AI effectiveness across diverse populations. Second, overreliance on AI may lead to clinicians overlooking their own judgment or missing context clues. Providers need to realize that they are the ones held professionally liable for the care and safety of their patients. AI supportive technology is designed to assist them—not replace them. Validation and regulation are cru-
cial to ensure AI tools are safe, equitable, and effective.
Consider this scenario: A major hospital system implements an AI-driven early warning system to detect sepsis, a life-threatening infection-related condition. The AI algorithm analyzes real-time patient data and alerts clinicians when a patient may be at risk. In this case, the alert was triggered for a 72-year-old patient who presented to the ER with high fever and altered consciousness after receiving home health care for a recent hernia surgery.
However, the ER physician overrode the alert using his own best judgment after reviewing the full clinical context.
First, the patient’s daughter verbally reported that the patient had been on multiple antibiotics for a post-surgical infection and had reported adverse reactions and side effects from those medications. Second, the patient in a moment of consciousness said “no antibiotics.” And third, the patient seemed to be developing a rash and flu-like symptoms, including rigors. The patient was treated and stabi-
lized with epinephrine and IV Benadryl and then transferred to the Med Surg unit.
‘While
the integration of AI into healthcare systems holds extraordinary promise for enhancing patient care, streamlining operations, and improving diagnostic accuracy,
it also introduces significant legal and ethical vulnerabilities.’
But after the hospital’s infectious disease physician saw the patient and the AI sepsis alert, she decided without any additional context to treat the patient prophylactically with vancomycin pending lab results. The infectious disease physician did not talk with the daughter and did not realize that the patient had been treated at home with vancomycin, doxycycline, and ciprofloxacin. The patient developed a near-fatal reaction to the vancomycin,
called Stevens-Johnson syndrome (SJS), as a result. SJS is a rare, serious disorder of the skin and mucous membranes which can cause the failure of multiple organs.
Navigating the Future of Medical Liability
The new administration’s push for healthcare policies that emphasize efficiency could reshape the professional liability landscape. While relaxed regulations may encourage growth and creativity, the cultural shifts and increased pressure for efficiency could heighten risks. Providers and insurers will need to stay vigilant as these changes unfold.
Foster Earle, ARM, is the founder, president, and CEO of OmniSure Consulting Group, a clinical risk services partner for many of the most well-known and well-respected healthcare professional liability and medical malpractice insurers. Through a nationwide network of clinical risk specialists, OmniSure helps to prevent and control losses with client-specific recommendations and pre-claim advice-on-demand. She is a frequent speaker for healthcare associations, insurance conferences, and training programs.
5 Ways to Prepare for Healthcare Liability Changes in 2025
Healthcare providers, insurers, and underwriters face potential shifts in healthcare liability regulations under the new presidential administration in 2025. Here are five key steps to help navigate these changes:
1. Stay Informed About Policy Shifts. The new administration may introduce reforms or changes in medical liability laws, such as tort reform or changes in malpractice insurance regulations. Healthcare stakeholders should closely monitor legislative developments to stay ahead of potential changes.
2. Review and Adjust Risk Management Strategies. With potential increases in professional liability risk, especially during mergers and acquisitions, healthcare stakeholders should review and strengthen their risk management protocols. This includes assessing for consistency in risk management plans, training staff, improving communication systems, and ensuring that care standards are maintained during transitions.
3. Evaluate Insurance Coverage. Brokers and insureds should regularly collaborate to ensure professional liability policies are sufficient and written to address new risks and services as they are added.
4. Plan for Reforms. As regulatory, liability, and tort reform is repealed or introduced, insurers can play a key role by offering new products and coverages tailored to insureds’ needs through these changes.
5. Encourage Collaboration Across Teams. Mergers and acquisitions can lead to disruptions in care and communication. Healthcare insurers, professional liability brokers, and healthcare organizations should foster collaboration across teams to ensure smoother transitions and reduce the risk of losses.
Idea Exchange: Cyber
A Favorable Prognosis—Healthcare at the Forefront of Cyber Risk
HBy Stephanie Snyder Frenier
ealthcare organizations continue to find themselves at the forefront of cyber risk. Exposures such as IT supply chain dependencies, website tracking litigation, ransomware attacks, new security regulations, and data breach class actions put healthcare organizations of all sizes at high risk for cyber insurance claims. Understanding trends in cyberattacks as well as the evolving regulatory and litigation environment are critical to building resilience and maximizing insurance indemnification.
IT Supply Chain Dependencies
The February 2024 breach of a healthcare technology provider had a massive downstream effect on almost all touchpoints of the healthcare industry—hospitals, healthcare providers, pharmacies, drug companies, insurers, and patients. The attack demonstrated the risk of IT supply chain exposures in the healthcare industry segment and the considerations that healthcare companies
should have as they engage with IT vendors and consider dependencies in running their operations.
Website Tracking Litigation
Website tracking is the use of code, including pixels, cookies, or scripts, to capture data about how users interact with a website. Website tracking litigation is not a result of new regulations but rather the plaintiffs’ bar using existing laws that never considered today’s technology when they were enacted, such as 1967’s California Invasion of Privacy Act, 1968’s Federal Wiretap Act, and 1988’s Video Privacy Protection Act. These laws carry statutory penalties ranging from $250 to $10,000 per violation. Healthcare organizations tend to be a bigger target for website tracking litigation than other industries, likely due to the highly regulated data they collect and hold.
Ransomware
Healthcare organizations remain a significant target for ransomware threat actors. According to Comparitech, there were 118 confirmed ransomware attacks and 147 unconfirmed ransomware attacks against the U.S. healthcare sector in 2024,
which resulted in an average of 18 days of downtime. The healthcare industry tends to be targeted by ransomware threat actors given the large amounts of healthcare and financial data being processed, as well as the critical need for operational uptime to support patients. On average, U.S. healthcare organizations lose $1.9 million per day due to downtime from ransomware attacks. While improved cybersecurity controls have resulted in fewer ransoms being paid, the disruption caused by ransomware attacks is significant.
New Security Regulations
In December 2024, the U.S. Department of Health & Human Services announced a proposed update to the HIPAA Security Rule that would require healthcare organizations to implement additional security controls, such as multifactor authentication (MFA), data encryption, vulnerability remediation, network segmentation, assets inventory, and proactive security testing. This proposed rule update has not yet been finalized and now falls under the purview of the new federal administration. Various states have required healthcare organizations to report breaches within a certain time period and
improve cybersecurity controls.
Data Breach Class Actions
Data breaches continue to impact healthcare organizations. According to The HIPAA Journal, there were 13 data breaches in 2024 involving more than one million healthcare records. Eleven of these were a result of a cyberattack on the organization and eight involved an attack on business associates of HIPAA-regulated entities. In many cases, a ransomware attack serves as a basis for not only a disruption in services but also a breach of HIPAA-regulated data, typically resulting in costly class-action litigation.
With such a challenging risk environment, how can healthcare organizations structure their cyber insurance to address the evolving claims environment?
Insurance buyers should pay attention to the following:
• Are limits adequate for the risk exposure? Many healthcare organizations reduced limits during challenging cyber
insurance market conditions from 2020 to 2022 while continuing to experience revenue growth. Only about half of those buyers increased limits when market conditions changed.
• What vendors are in scope for dependent/contingent business interruption coverage? Dependent/contingent business interruption coverage may include indemnification for net income loss and extra expenses associated with a disruption of a vendor on which the insured is dependent due to a security breach or technology failure. Many policies require that a contract be in place with the vendor to provide this coverage; however, coverage may be available or broadened to not require a contract.
• Is coverage available for claims related to website tracking and the associated collection of data? Many policies may exclude coverage for this “wrongful collection” peril or may limit coverage to defense costs only. Carriers have started
underwriting for this exposure, and when controls are adequate, full limits may be available.
Having a broker with cyber insurance expertise and a consultative approach is key. The devil is in the details of cyber coverage, and it is critical that healthcare organizations partner with a broker that can provide data and analytics to identify the potential quantum of loss, understand the nuances of available coverages across the market, and advocate through the claims settlement process.
The prognosis for healthcare organizations that take this into consideration is favorable, and those organizations will be better positioned to maximize the value of their cyber insurance policy.
Snyder Frenier is a senior vice president with Gallagher’s Cyber Liability practice and national director of Gallagher’s Cyber Advantage panel. She has over 21 years of experience in the insurance industry as an underwriter, broker, and cyber data & analytics vendor.
2025 Workers’ Compensation Directory
Searching for a workers’ compensation market? Look no further than Insurance Journal’s 2025 Workers’ Comp Directory, a comprehensive listing of intermediaries and carriers offering workers’ compensation coverage throughout the country. The information listed in this directory serves as a resource guide for independent agents and brokers looking for workers’ compensation markets. Intermediaries and carriers writing workers’ compensation coverage and profiled in this directory submit updated information directly to Insurance Journal.
7710 Insurance Co.
Contact: William M. Wahl, CIC Phone: 931-272-5224
Email: Bill.wahl@trean.com
Website: www.7710insurance.com
■ Markets Offered: Workers’ Comp: Fire Districts and Ambulance
■ Phone Inquiries: Accepted
■ Minimum Premium: $20,000
■ Limits: $1,000,000
■ Brokered Business: Accepted
■ States Entered in: All except monopolistic, CA NY
We make every attempt to ensure the accuracy of all information listed in this directory. You may also view Insurance Journal’s Workers’ Comp Directory online at: www.insurancejournal.com/directories. Also visit that link to submit a listing for future workers’ compensation directories, or e-mail Kristine Honey at: khoney@insurancejournal.com.
We hope you find the 2025 Workers’ Comp Directory to be a useful tool when searching for markets. To comment on this directory, or any other Insurance Journal resource, please e-mail: editorial@insurancejournal.com.
Contact: Shannon Scholten
Phone: 517-780-5625
Email: AgencyRelations@AFGroup.com
Website: afgroup.com
■ Markets Offered: Workers’ Compensation
■ Phone Inquiries: Accepted
■ Minimum Premium: N/A
■ Limits: Varies by Program
■ Brokered Business: Yes; Varies by Program
■ States Entered in: All States
■ Admitted Status: Admitted
■ Carriers Represented: Star Ins. Co, Williamsburg National Ins. Co, Ameritrust Ins. Corp, ProCentury Ins. Co.; Accident Fund Insurance Company of America, Accident Fund General, Accident Fund National, United Wisconsin Insurance Company
Agency Resources
a division of Safehold Special Risk
Contact: MaryEllen Mazzo
Phone: 973-315-0716 ; Toll-free: 866-454-9676
Email: workcomp@safehold.com
Website: www.agencyresources.com
■ Markets Offered: Workers’ Comp
■ Phone Inquiries: Accepted
■ Minimum Premium: Varies
■ Limits: Varies
■ Brokered Business: Accepted
■ States Entered in: All States
■ Admitted Status: Admitted
■ Carriers Represented: We access Work Comp from 19 Carriers
AllComp Solutions
Contact: Ken Kunzman
Phone: 610-808-9534; Fax: 610-941-9889
Email: kkunzman@nsminc.com
Website: www.allcompsolutions.com
■ Markets Offered: Workers’ Comp
■ Phone Inquiries: Accepted
■ Minimum Premium: $500
■ Limits: Statutory
■ Brokered Business: Accepted
■ States Entered in: All States
■ Admitted Status: Admitted
■ Carriers Represented: 30+ Carriers
Named one of the country’s top 10 workers’ compensation solutions, AllComp Solutions is a best-in-class program that has been providing high quality, low-cost workers’ comp insurance for 25+ years. We offer one-stop-shop coverage for 300+ approved class codes, work with top-rated carriers and provide agents with fast quotes.
■ Carriers: Berkely, AmTrust, Guard, Applied, Amerisafe, AIG, Crum and forster, PLM, ALU
AMERISAFE
Contact: Customer Service
Phone: 800-256-9052
Email: asksales@amerisafe.com
Website: www.amerisafe.com
■ Markets Offered: Hazardous Workers’ Comp
■ Phone Inquiries: Accepted
■ Minimum Premium: $5,000
■ Limits: Statutory
■ Brokered Business: Not Accepted
■ States Entered in: Most States
AMERISAFE has been providing specialty workers’ compensation insurance since 1986. Operating in 27 states, we serve small and midsized employers in high hazard industries like construction and trucking. We are a one-stop shop providing claims, safety and underwriting services.
■ States Entered in: AL FL GA IN KY MS NC SC TN VA
■ Admitted Status: Admitted
FFVA Mutual is a Florida-based regional insurance carrier specializing in workers’ compensation since 1956. Rated A- (Excellent) by A.M. Best, we insure a variety of businesses in all major industry groups and write business in 10 states (AL, FL, GA, IN, KY, MS, NC, SC, TN and VA).
Flux Insurance Services, LLC
Contact: Curtis Prince
Phone: 888-358-9467
Email: cprince@fluxins.com
Website: www.fluxins.com
■ Markets Offered: Workers’ Comp, Pay As You Go, HR, Payroll
■ Phone Inquiries: Accepted
■ Minimum Premium: No minimum / New Ventures Eligible
■ Limits: $10 MIL
■ Brokered Business: Accepted
■ States Entered in: All States
■ Admitted Status: Admitted & Non-admitted
■ Carriers Represented: Various A rated carriers including (Accredited, American Liberty, Benchmark, Berkshire Hathaway, Berkley Net, Clear Spring, Protective, Sunz)
Frank Winston Crum
Contact: Tyler Huerkamp
Phone: 866-218-4219 x 1426 ; Fax: 727-450-7911
Email: AgencySupport@FWCrum.com
Website: www.frankwinstoncrum.com
■ Markets Offered: Workers’ Comp, General and Excess Liability
■ Phone Inquiries: Accepted
■ Minimum Premium: $500/$1000
■ Limits: 1M/1M/1M
■ Brokered Business: Not Accepted
■ States Entered in: Most States
■ Admitted Status: Admitted
■ Carriers Represented: Frank Winston Crum Insurance, Benchmark Insurance, Clear Blue Insurance
2025 Workers’ Compensation Directory
Freedom Risk Insurance Services
Contact: Ryan Wakefield
Phone: 253-432-9495
Email: ryan.wakefield@freedomrisk.net
Website: www.freedomrisk.net
■ Markets Offered: Workers’ Comp, PEO
■ Phone Inquiries: Accepted
■ Minimum Premium: $25,000
■ Limits: Statutory
■ Brokered Business: Accepted
■ States Entered in: All States except Monopolistic
■ Admitted Status: Admitted
■ Carriers Represented: Several specialty markets for hard to place clients
Friedlander Group, Inc.
Contact: Adam Friedlander
Phone: 914-59-6399 ; Fax: 914-694-6004
Email: adamf@friedlandergroup.com
Website: www.friedlandergroup.com
■ Markets Offered: Ten NYSIF Workers’ Compensation Safety Groups
■ Markets Offered: Workers’ Comp, Pay As You Go, HR, Payroll
■ Phone Inquiries: Accepted
■ Minimum Premium: $50,000
■ Limits: $10 MIL
■ Brokered Business: Accepted
■ States Entered in: All States
■ Admitted Status: Admitted & Non-admitted
■ Carriers Represented: Various integrated insurance programs all back by A rated carriers including (Ace, Accident Fund, AIG, AmTrust, Benchmark, Clear Spring, Sunz, Zurich)
■ Minimum Premium: Varies by state. Please inquire on specifics
■ Limits: 100k/500k/100k up to 1m/1m/1m
■ Brokered Business: Accepted
■ States Entered: All States except Monopolistic
■ Admitted Status: Admitted
■ Carriers Represented: See website for full list of c arriers
IPA Risk Management, LLC
Contact: Greg or Chase
Phone: 201-797-1084 Ext. 201 or 202
Email: g. or c.heitmann@ipariskmanagement.com
Website: www.ipariskmanagement.com
■ Markets Offered: Health Insurance, HMO, Managed Care, PEO, Workers’ Comp
■ Phone Inquiries: Accepted
■ Minimum Premium: $25,000
■ Limits: $1,000,000
■ Brokered Business: Accepted
■ States Entered in: Most States & Multiple states on one account.
■ Admitted Status: Admitted & Non-admitted
■ Alliances With: Yes - health benefits are integrated with workers’ comp benefits
Ironwood Brokers & Insurance
Marketing
Contact: Rudy Castro
Cell Phone: 949-370-2266 ; Office: 949-487-0057
Email: rcastro@reataholdings.net
Website: ironwoodbrokers.com
■ Markets: Workers’ Comp, General Liability
■ Phone Inquiries: Accepted
■ Minimum Premium: Different min. premiums per carrier
■ Limits: Vary from carrier to carrier
■ Brokered Business: Accepted
■ States Entered in: All States
■ Admitted Status: Admitted
■ Carriers Represented: Clear Spring, Great American, ICW, Accelerant, Kinetic, Zenith, Service American, QBE, American Liberty, Hadron, Everest, National Liability & Fire, Accident Insurance
Jencap –CompensationWorkers’Division
Contact: Jeff Sandy, EVP, National Workers’ Compensation Practice
Phone: 1-816-896-8145
Email: marketing.wc@jencapgroup.com
Website: www.jencapgroup.com
■ Markets Offered: Guaranteed Cost Plans, Large Deductible Plans, Small and Mid-Sized Deductible Plans, ASO’s, PEO’s, Excess WC, USL&H , Cannabis, and both heterogeneous and homogeneous programs including captives.
■ Phone Inquiries: Accepted
■ Minimum Premium: $10,000 ■ Limits: All
■ Brokered Business: Accepted
■ Program Business Welcome
■ States Entered in: All States
■ Admitted Status: Admitted
■ Carriers Represented: 70 + Work Comp Carriers
At Jencap, our worker’s compensation division offers exclusive access points and niche programs to provide you with a wide range of carriers to meet your needs. Using our size and strong relationships, we offer broader underwriting guidelines, giving you more options. And, with nationwide representation, the Jencap team has the knowledge, products and expertise to serve you.
■ Carriers Represented: biBERK, Great American, Travelers, Pie Insurance, Employers, MCIM, AmTrust
Markel
Contact: Paula Young Phone: 888-500-3344
Email: paula.young@markel.com
Website: markel.com/us/commercial/small-business
■ Markets Offered: Workers’ Comp, Specialty Package Policies, Accident Medical
■ Phone Inquiries: Accepted
■ Minimum Premium: Varies by product
■ Limits: Variable
■ Brokered Business: Limited
■ States Entered in: Most. See website for details.
■ Admitted Status: Admitted
MartinoWest Business & Insurance Solutions
Phone: 916-751-5915 ; Fax: 916-751-5911
Email: wholesale@martinowest.com
Website: www.martinowest.com
■ Markets Offered: PEO, Workers’ Comp, PayGo
■ Phone Inquiries: Accepted
■ Minimum Premium: N/A
■ Brokered Business: Accepted
■ States Entered in: All States
■ Admitted Status: Admitted & Non-admitted
■ Carriers Represented: All Carriers
Maverick Commercial Insurance Services
Contact: Mario Gomez Phone: 818-223-0011
Email: mariogomez@maverickinsure.com
Website: www.maverickinsure.com
■ Markets Offered: Guaranteed cost WC, Large Deductible & Retro Programs, Aviation/ Aerospace, USL&H/maritime, PEO & Bitco exclusive market Construction and Oil and Gas
■ Phone Inquiries: Accepted
■ Minimum Premium: $2,500
■ Limits: $1mil/$1mil/1mil
■ Brokered Business: Accepted
■ States Entered in: All States
■ Admitted Status: Admitted
■ Carriers Represented: Bitco Insurance AIG, ICW, Zenith, Berkshire, AmTrust/,Applied, Everest, Accredited, Nationwide, Comp Science, Arch, Old Republic, Starr, Rochdale. Falls Lake, Pie, Safety National, Omaha, Clear Springs, Service America, Palomar, Strategic/Great American Endurance, American Summit, Arch, National Casualty
■ States Entered in: All States except Monopolistic
■ Admitted Status: Admitted
■ Carriers Represented: We have strategic partnerships with many carriers. Inquire for details.
SafeShore
Contact: Kristina Crady
Phone: 877-215-1125
Email: Underwriting@SignalSafeShore.com
Website: SafeShore.online
■ Markets Offered: Worker’s Comp, USL&H, MEL
■ Phone Inquiries: Accepted
■ Minimum Premium: $10,000 on USL&H, varies on state and work on Worker’s Comp & MEL
■ Limits: USL&H Statutory; $1 Mil WC, $1 Mil MEL
■ Brokered Business: Accepted
■ States Entered in: All States
■ Admitted Status: Admitted USL&H/WC; Admitted and non-Admitted MEL
■ Carriers Represented: Signal Mutual Indemnity Association, a non-profit mutual organization authorized by the Department of Labor; WC: Nationwide; MEL: Many Markets
Safety National Casualty Corporation
Phone: 888-995-5300 ; Fax: 314-995-3843
Email: info@safetynational.com
Website: www.safetynational.com
■ Markets Offered: Excess WC, Workers’ Comp
■ Phone Inquiries: Accepted
■ Minimum Premium: Varies by state
■ Limits: Varies by state
■ Brokered Business: Accepted
■ States Entered in: All States & Canada
■ Admitted Status: Admitted
For more info, see our ad on page 9 (National).
Safety National® is a multi-line specialty insurance carrier that offers risk solutions for large commercial and public entity clients, providing specialized expertise, flexible program design and unique claims proficiency supported by relationship-driven customer service. The company is a Tokio Marine Group member and is A.M. Best rated A++, FSC XV.
SAGE Program Underwriters
Contact: Chuck Holdren Phone: 833-724-3111
Email: chuck@sageuw.com
Website: www.sageuw.com
■ Markets Offered: Workers’ Comp for the Shooting Sports/Firearms and Ground Delivery/ Last Mile Industries
■ Phone Inquiries: Accepted
■ Minimum Premium: $1,000
■ Limits: $1,000,000
■ Brokered Business: Accepted upon approval
■ States Entered in: All except AK, DE, HI & MA
■ Admitted Status: Admitted
SDS General Insurance Services,
Inc.
Contact: Heidi Schaible Phone: 949-929-8743
Email: heidis@sdsins.com
Website: www.sdsins.com
■ Markets Offered: Workers’ Comp
■ Phone Inquiries: Accepted
■ Minimum Premium: $1,000
■ Limits: $1,000,000
■ Brokered Business: Not Accepted
■ States Entered in: All States
■ Admitted Status: Admitted
■ Carriers Represented: Oakriver/Cypress/Redwood, Republic Indemnity, Markel, AmTrust North America, Risk Placement Services Insurance Brokers (Atlas), Omaha National
2025 Workers’ Compensation Directory
Shield Commercial Insurance Services
Contact: Michael Blom
Phone: 760-345-9029 ; Fax: 800-345-4851
Email: info@shieldins.net
Website: www.shieldins.net
■ Markets Offered: Workers’ Compensation: cannabis, contractors, country clubs, freight forwarders, health care, hotel/motel, HVAC, indoor gun ranges, light manufacturing, restaurants, retail storage-warehouse, staffing, telecommunic ations, trucking
We have functioned as a program manager providing contractor insurance products to retail brokers and wholesalers since 2004. Rate, quote and bind online. All carriers are A rated by A.M. Best. Easily register as a producer today on our website for full program access.
■ Markets Offered: Workers’ Comp for the Staffing Industry
■ Phone Inquiries: Accepted
■ Minimum Premium: $15K for Professional/ Clerical Risks; $25K for Pick/Pack and Hospitality; $10k Medical; $30k Social Services, Non-profits, schools; $50K for Light Industrial
■ Limits: Statutory
■ Brokered Business: Accepted
■ States Entered in: All States
■ Admitted Status: Admitted
■ Carriers Represented: 10
For 25+ years, Staffing Lines has been the industry leader in workers’ comp for temporary, permanent and outplacement staffing agencies across a variety of industries. We provide agents a dedicated underwriting team, access to multiple A-rated markets and unmatched service. When it comes to staffing, we are the authority!
Target Managers Insurance Services, Inc.
Contact: Michael Kiger
Phone: 702-588-5300 ; Fax: 702-588-5310
Email: Submissions@targetmanagers.com
Website: www.targetmanagers.com
■ Markets Offered: USL&H, Workers’ Comp
■ Phone Inquiries: Accepted
■ Minimum Premium: $1,000
■ Limits: $1M
■ Brokered Business: Accepted
■ States Entered in: Most States
■ Admitted Status: Admitted
■ Carriers Represented: AIG, Amerisafe, AmTrust, California Insurance Company, Continental Indemnity, Employers Compensation, National Liability, Zurich & many others.
Texas Association of Manufacturers Workers’ Comp Safety Group
Contact: Jim Sierra Phone: 512-796-5467
Email: JSierra180@gmail.com
Website: www.TAMWorkersComp.com
■ Markets Offered: Manufacturers Workers’ Comp
■ Phone Inquiries: Accepted
■ Minimum Premium: $0
■ Brokered Business: Accepted
■ States Entered in: TX
■ Admitted Status: Admitted
■ Carriers Represented: Texas Mutual Ins. Company
Texas Mutual Insurance Company
Contact: Customer Service Phone: 800-859-5995
Email: information@texasmutual.com
Website: www.texasmutual.com
■ Markets Offered: Workers’ Comp
■ Phone Inquiries: Accepted
■ Minimum Premium: Competitive premiums
■ Brokered Business: Accepted
■ States Entered in: TX
For more info, see our ad on page 1 (S. Central).
StateFund First, a division of Arthur J Gallagher & Co. Insurance Brokers of CA, Inc.
Contact: Erica Bro
Phone: 855-784-4433
Email: Service@statefundfirst.com
Website: www.statefundfirst.com
■ Markets Offered: Workers’ Comp
■ Phone Inquiries: Accepted
■ Minimum Premium: Varies
■ Limits: $1,000,000
■ Brokered Business: Accepted
■ States Entered in: CA
■ Admitted Status: Admitted
■ Carriers Represented: California State Compensation Insurance Fund, ICW, Berkshire Hathaway
SWBC
Contact: Kevin Witcher
Phone: 210-321-7548 ; Fax: 210-525-0054
Email: kevin.witcher@swbc.com
Website: www.swbc.com
■ Markets Offered: Workers’ Comp
■ Phone Inquiries: Accepted
■ Minimum Premium: No minimum
■ Limits: 100/100/500 minimum
■ Brokered Business: Not Accepted
■ States Entered in: All States
■ Admitted Status: Admitted & Non-admitted
■ Carriers Represented: All Major Carriers
The American Equity Underwriters, Inc.
Contact: Marketing Department Phone: 251-690-4230
Email: aeu.marketing@amequity.com
Website: www.amequity.com
■ Markets Offered: USL&H
■ Phone Inquiries: Accepted
■ Minimum Premium: $10,000
■ Limits: Federal Acts - Statutory, EL - $1M
■ Brokered Business: Accepted
■ States Entered in: All States
■ Admitted Status: N/A, U.S. Dept. of Labor Approved
■ Carriers Represented: American Longshore Mutual Association (ALMA) a U.S. Department of Labor approved group mutual association
AEU is a program administrator for a group selfinsurance fund authorized by the U.S. Department of Labor to provide USL&H coverage for the liabilities of its members, which are waterfront employers of all sizes. AEU can also provide State Act workers’ compensation and MEL coverage.
The Hartford
Contact: Mike Mazzonna
Phone: 860-547-5000
Email: media.relations@thehartford.com
Website: thehartford.com
■ Markets Offered: Workers’ Comp
■ Phone Inquiries: Accepted
■ Brokered Business: Accepted
■ States Entered in: All States
■ Admitted Status: Admitted
■ Carriers Represented: The Hartford, Navigators
The Mechanic Group, Inc., A Div of Specialty Programs Group, LLC
Contact: Marc Katz
Phone: 845-735-0700 ; Fax: 845-735-8383
Email: mkatz@mechanicgroup.com
Website: www.mechanicgroup.com
■ Markets Offered: Workers’ Comp and all other lines for Security Guards, Alarms and Investigators.
■ Phone Inquiries: Accepted
■ Minimum Manual Premium: $3,500
■ Limits: All
■ Brokered Business: Accepted
■ States Entered in: All States
■ Admitted Status: Admitted
■ Carriers Represented: The Hartford, Berkshire Hathaway, AIG
The MEMIC Group
Contact: Ashley Fuller
Phone: 207-482-4131
Email: afuller@memic.com
Website: www.thememicdifference.com
■ Markets Offered: Workers’ Comp
■ Phone Inquiries: Accepted
■ Minimum Premium: Varies
■ Brokered Business: Not Accepted
■ States Entered in: All Non-monopolistic States
■ Admitted Status: Admitted
Total Program Management
Phone: 888-773-3238
Email: TPMinfo@tpmrisk.com
Website: www.tpmrisk.com
■ Markets Offered: Workers’ Comp (Guaranteed Cost and Loss Sensitive) for Allied Health, Miscellaneous Medic al, Long Term and Senior Care, along with Social Services.
■ Carriers Represented: Zurich, AIG, ACE, Liberty Mutual, ARCH, Old Republic, Travelers
Wright Specialty Insurance
Contact: Hillary Smith Phone: 516-750-3923 ; Fax: 516-227-2352
Email: hsmith@wrightinsurance.com
Website: www.wrightinsurance.com
■ Markets Offered: Workers’Compensation available for Educational Institutions
■ Phone Inquiries: Accepted
■ Minimum Premium: $500
■ Limits: Statutory
■ Brokered Business: Accepted
■ States Entered in: Most States
■ Admitted Status: Admitted
Spotlight: Commercial Auto
New Survey Shows Company Drivers Overwhelmed and Worried
By Jahna Jacobson
As roads become more dangerous, 70% of company drivers say they worry about being killed or hurt in a collision or held liable for the damages.
While 89% of company drivers rate their driving as good or excellent, less than 60% say the same of other drivers.
Nationwide’s April 2025 survey found that company drivers have incongruent perceptions about their safety and behavior.
At least one in five company drivers (21%) admit to feeling distracted while driving for work. These distractions mainly include adjusting GPS systems, using cell phones (calls, texts and social media), eating or drinking, and adjusting the radio or music.
However, staffing shortages may be fueling riskier behaviors among commercial drivers. Four in 10 drivers (44%, a 5-point increase from 2024) say their employer is struggling to hire or retain qualified drivers, and 41% of drivers believe staffing shortages have negatively impacted their driving, a 20-point increase from 2024.
Survey participants said having fewer trained drivers led to increased workloads (72%, +11 points), longer driving hours (71%, +13 points), difficulty meeting deadlines (57%, +10 points), decreased training quality (54%, +15 points) and reduced focus on safety (49%, +15 points).
As a result of these added pressures, 53% of company drivers report they regularly take work phone calls and roughly a quarter are reading/
responding to work text messages (28%) or emails (24%) while driving. These numbers outweigh the one in five who admit to feeling distracted while driving, suggesting that many respondents who participate in these risky behaviors may not view them as distractions.
“Company drivers are overwhelmed, distracted and in many cases, worried,” said Mark McGhiey, risk management and client services leader at Nationwide. “When nearly half say staffing shortages are affecting their driving, and 70% fear serious consequences from a crash, it’s a clear signal that fleet drivers are under stress.”
“While comprehensive fleet safety programs are critical for all employers with drivers, this isn’t just about better planning or stricter rules; it’s about building a culture of safety that supports drivers through robust training, smarter tools, and a commitment to their
wellbeing every time they start the engine,” McGhiey added.
Employers and insurers are turning to innovative tools to help drivers stay focused and safe. Nationwide’s research shows that technology like dashcams, telematics and hands-free policies are gaining significant traction and reshaping how drivers and companies manage risk.
Fleet operators are making meaningful strides with tools like dashcams, hands-free policies and ongoing driver monitoring. Dashcam usage among company drivers has jumped 29 points year-overyear, now installed in 84% of work vehicles. Over one in three (35%) report their employers currently use an AI-enabled dashcam in their work vehicle to monitor their driving behavior, and 72% of those drivers find the camera helpful, while 9% find it distracting.
More companies also enforce
hands-free policies (44%) and use continuous monitoring of motor vehicle records (71%) to proactively address risk.
Awareness of regulations and penalties may also be an issue. Only 65% of company drivers said they are aware of changes to distracted driving regulations over the past two years, while 78% said they have enough information regarding distracted driving laws/ regulations in their state.
Most company drivers say their management keeps them in the loop or provides training by making employees aware of the impact driving incidents and accidents can have on the company (88%), making the safety of its drivers and others on the road a priority (87%), communicating with employees about risks on the road (84%). But 80% say management could provide more training to prevent accidents and improve safety, an increase of 8% over last year.
146 results for ‘bars & breweries’
Idea Exchange: The Competitive Advantage
Agency Tax Laws Shareholders Need to Know
Ifind that most agency owners who call me regarding having their agency valued or developing a producer vesting program have no idea that important specific laws and regulations exist, even though these laws and regulations have been in place for between 15 and 60 years.
By Chris Burand
I feel bad for these agents because their accountants and professional advisors have completely failed to advise them of these important regulations.
Here are a few of the key rules/laws most important to the people who call me.
IRS Revenue Ruling 59-60 (RR
59-60)
As the “59-60” nomenclature suggests, this rule has been in place since 1959. Many subsequent rulings and case law have added to the texture of this ruling, but the basic element remains unchanged from the original revenue ruling.
This ruling mandates, MANDATES, that all transactions between family gener-
ations be valued on a Fair Market Value basis. Additionally, the valuation must be completed by an independent third party possessing significant credentials (and these credentials are being further refined as I write this).
In other words, you CANNOT transfer ownership or shares or value to your offspring without having this valuation completed. Additionally, the valuation report must meet specific standards. The requirement is not just to calculate the applicable value using correct methods but to calculate it in an accepted report format. This also means the agency owner cannot ever do the valuation themselves. How a ruling that is approaching 70 years old, that has been upheld over and over, is frequently overlooked by many CPAs is beyond me. There are no exceptions of which I am aware.
Additionally, when ERISA was passed, this standard was largely accepted as the standard for employees becoming shareholders in many, though not all, transactions. Depending on the nature of the transaction (ESOP vs. an individual employee, for example) the details of the
valuation and applicable standard may vary materially. High-quality third-party advisors are required.
50.1% Inside/Outside Rule
This rule has been around since the 1950s, too, though it really did not become important to my clients until the 1990s due to how a case was decided, and the final rules were only issued in April 2024.
This is a complicated rule, but agents’ CPAs should be advising that it exists if they know the agency has producers. An extreme oversimplification of the rule is that if your producers are inside your office (including their home office if working from home) more than 50% of the time, measured in minutes, they must be paid overtime. This is especially applicable to new producers who don’t yet have enough clients to visit and bad producers who sit around too much.
A requirement is tracking the time they are in the office to categorically prove they are out of the office more than 50% of the time. I have had clients who had to literally install time clocks to comply.
The penalties for not being able to prove
this usually begin around $50,000, in my experience. If you have producers, I strongly encourage you to talk to your CPA and a high-quality labor attorney because you may need to amend your producer contracts to comply.
409A Rules
These rules are among the most complex in the tax code but are also the newest of these listed. The rules exceed 500 pages, so this is not something most agency owners are going to figure out on their own. Failure to comply with these rules can have significant negative effects on an agency’s value and marketability. The fines are considered some of the most onerous fines in the tax code.
These rules were written in the wake of the Enron fiasco where the key executives in Enron enriched themselves unfairly in the eyes of many.
Unfortunately for agencies, Congress wrote the initial rules to include every employee, not just executives. The greatest effect I have seen is on producer vesting agreements.
409A rules affect executive compensation including the deferral of compensa-
tion and producer vesting agreements that are deferred compensation agreements. For example, if a producer achieves $X of commission in their book, they become eligible for $Y of future compensation.
If these agreements are not written and executed correctly, the producer becomes immediately responsible for paying taxes on $Y, plus penalties, interest, and a special excise tax. Keep in mind, the producer is not going to receive $Y for maybe 10 or 20 years, but they must pay the tax, in cash, immediately. The taxes in total can equal 50% of $Y. And then the employer must pay taxes and penalties, too.
Writing these agreements to comply with this complex set of laws and regulations is a legal specialty within a legal specialty. You need a tax attorney that specializes in this field. No one else is likely competent.
Reasonable Compensation Rule
This rule has been around for a long time, too—almost as long as S corps have been around. Some CPAs and business owners figured out that under an S-corp, they could pay the business owner less to minimize employment taxes. In other cas-
es, overpayment was more advantageous. What the IRS wants to see is business owners be paid reasonable compensation for the job they do as if they were not the owner.
For example, if the producers are paid 35%/35%, then the owner should pay themselves 35%/35% for their sales, too. This prevents owners from minimizing their company’s profits unfairly and keeps them from moving compensation to distributions that are really compensation.
All agency CPAs should be discussing this with you, and when you inquire, don’t let them brush off your inquiry with a response such as, “You have nothing to worry about.” Ask them, “Why?” Have they done the research into comparable pay?
These are key rules, laws, and regulations most agency owners need to know about. If your advisors are not advising or are not qualified to advise on these points, find better advisors because it is your neck on the line.
Burand is the founder and owner of Burand & Associates LLC based in Pueblo, Colo. Phone: 719-4853868. E-mail: chris@burand-associates.com.
Idea Exchange: Ask the Insurance Recruiter
The Most Important Elements in a Recruiting Contract
These days, recruiters are floating a lot of different terms and conditions out there, from insurance agencies paying per resume to no money up front but six-month exclusivity. It can be confusing to know what’s standard and makes the most sense for your business. To choose the best partner, let’s go back to the basics on the key elements of an insurance recruiting contract.
#1 Fee Percentage
When car shopping, you see all the features on the window sticker, but your eye immediately goes to the price—and so it is with a recruiting agreement. In a contingency contract, for permanent placements (not contract employees) the fee will be a percentage of the first-year compensation. Some contracts calculate the fee on the base salary and others use the estimated total first-year compensation. It’s important that you find a percentage that fits your budget as well as ask questions about how the fee is calculated, especially for sales and management positions where variable
compensation can be a big factor.
#2 Guarantee Period
Think about a recruiting contract like buying an insurance policy. Higher premiums mean more coverage and protection. This is the same with recruiting agreements. Fees and guarantees are inextricably linked; the higher the service fee, the bigger the guarantee you receive. Guarantees start on the candidate’s first day of employment and extend between 30-180 days. Contracts should specify when the guarantee applies (typically if the candidate resigns or is terminated) and when it does not (typically a layoff or downsizing outside of their control). The contract should also stipulate what form the guarantee takes—i.e., a free replacement or a refund.
#3 Payment Terms
Recruiters will usually accommodate your accounting cycle, so ask for a payment window that’s reasonable for your team (15, 30, or 45 days is standard).
Look for stipulations regarding late fees, interest charges, collections, and conditions that void the guarantee. This is a good time to ask the recruiter how they accept payment. Check and ACH are most common. If you pay with a credit card, expect a service charge to be applied.
#4 Right of Referral
By Mary Newgard
Nearly as important as the fee percentage is the right-of-referral period. Six and 12 months is the industry standard. Remember that right of referral is reciprocal, so you and the recruiter have the same protection for one another’s candidates. Discuss what constitutes the right of referral to avoid gray areas. There will always be situations where you and the recruiter need to discuss a unique instance. This usually happens when a candidate slipped through the cracks or wasn’t considered for a specific role. Failure to document referrals creates big exposures, including paying two fees. No matter how a candidate you hire surfaces, if a recruiter presented them within the right-of-referral window, then you are obligated to pay a fee. This includes if the newest source was another recruiter. Unknowingly accepting the candidate twice from two different recruiters doesn’t absolve you of honoring both contracts. You will be on the hook for two recruiting fees. This is why it’s so important for your company to implement internal controls, including how referrals are accepted, documented, and tracked.
Newgard is partner and senior search consultant for Capstone Search Group, a national recruiting firm dedicated to the insurance industry. Email: asktherecruiter@ csgrecruiting.com.
Idea Exchange: The Marketing Connection
7 Marketing Strategies to Establish Your Workers’ Compensation Expertise
Being an expert in workers’ compensation has become a coveted differentiator for insurance agents and brokers. Unlike some of the more commoditized insurance lines, workers’ comp demands specialized knowledge–from industry-specific classification codes and experience modification calculations to injury prevention strategies and claims advocacy.
By Brad Nevins
There are some concrete marketing approaches that can shift insurance professionals from being viewed as mere policy providers to sought-after authorities in this space. Those who can artfully communicate their expertise stand to capture more business, as clients seek more than just competitive premiums; they need guidance through the workers’ comp labyrinth.
Strategy 1: Educational Content
Position yourself as an authority by creating and sharing valuable educational content, such as:
• Industry-specific guides: Tailor these to different industries and explain their unique workers’ compensation needs and requirements.
• Regulatory updates: Provide forwardlooking interpretation of changing workers’ comp laws and regulations to help clients stay compliant.
• Claim prevention resources: Share safety tips and best practices to help businesses reduce workplace injuries.
• Claims process walkthroughs: Create step-by-step explanations of the claims process to demystify what happens when an employee is injured.
Strategy 2: Testimonials & Case Studies
Build your credibility by featuring “social proof.” Here are some examples:
• Success stories: Show how you’ve helped clients with complex claims to
reduce their workers’ comp costs.
• Problem-solution narratives: Detail specific challenges clients faced and how you provided solutions.
• Industry-specific testimonials: Collect feedback from clients in various industries to demonstrate your wide-ranging workers’ comp expertise.
• Strong numbers: Show the real wins, like money saved on premiums, fewer claims filed, or better mod factors.
Strategy 3: Digital Channels
Leverage digital marketing to expand your reach through:
• SEO-optimized content: Create workers’ compensation content that answers common questions employers search for online.
• Email campaigns: Craft email content that helps your prospects with what matters in their world (not just generic insurance talk).
• Webinars and virtual events: Host educational sessions on trending workers’ comp topics.
• Social media presence: Share tips, stats, and regulatory updates across platforms like LinkedIn.
Strategy 4: Professional Development
Demonstrate your commitment to the field by participating in:
• Continuing education: Take part in industry trainings and share what you learn with clients.
• Speaking engagements: Present at industry conferences and events on workers’ comp topics.
• Published articles: Contribute to industry publications to establish thought leadership.
Strategy 5: Client Education Programs
Create structured educational opportunities, such as:
• Training workshops: Host sessions for
HR managers and business owners about workers’ comp requirements.
• Risk assessment services: Provide workplace safety evaluations as value-added services.
• Experience mod analysis: Help clients understand and improve their experience modification factors.
Strategy 6: Community Involvement
Build local credibility by getting involved with:
• Safety partnerships: Collaborate with local organizations on workplace safety initiatives.
• Business association involvement: Participate in chamber of commerce and industry-specific groups.
• Educational sponsorships: Support community programs related to workplace safety or vocational rehabilitation.
Strategy 7: Long-Term Relationships
Focus on building solid relationships through retention strategies, such as:
• Annual policy reviews: Offer regular reviews of current coverage.
• Claims advocacy: Emphasize your role as an advocate during the claims process.
By implementing these marketing strategies consistently, insurance professionals can effectively showcase their workers’ compensation expertise, build credibility with prospects, and strengthen relationships with existing clients. The key is to position yourself not just as a policy provider but as a trusted advisor who helps businesses figure out the complexities of workers’ comp with confidence.
Brad Nevins is the Co-CEO of Direct Connection Advertising & Marketing. Website: directconnectionusa.com.
Idea Exchange: Agency Management
Steady Growth Amid Market Cycles Is Possible
Property and casualty insurance has traditionally been a cyclical industry, meaning it goes through phases of firm pricing and tight capacity followed by softer market conditions that tend to favor insurance buyers. The ups and downs of insurance cycles complicate brokers’ and insurers’ plans for profitable growth.
By Travis Shank
Commission income increases relatively easily in the tailwind of a hard market cycle, but it’s difficult to notch commission growth in the stiff headwind of falling premiums. Can brokers achieve steady growth amid market cycles?
Consistent growth for brokers is challenging, but it is possible. A proven strategy for increasing top-line results is mergers and acquisitions. Beyond the basic numbers, integrating another successful brokerage firm can expand the combined entity’s market presence and service capabilities. That is why so many insurance brokers are committed to M&A. There is, however, another method to achieving steady growth: placement optimization.
To understand how placement strategy can work separately from, and in tandem with, M&A strategies, let’s look at how insurance market cycles themselves have evolved.
Historical Trends
An analysis of the P/C market by ALIRT Insurance Research shows the average hard market cycle since the 1980s lasted three or four years, followed by a roughly equal or longer soft cycle. From the 1970s until 2002, ALIRT found each hard market was punctuated by spikes in premiums and then precipitous drops in pricing. This pattern changed in 2018, however, when a combination of factors pushed P/C lines into a hard market that lasted into 2024—six years.
A notable departure from earlier decades is a longer, smoother set of pricing increases. If this pattern holds, insurance brokers and buyers will see incremental change in rates, rather than sharp peaks and valleys.
The shift away from the price spikes is a good thing for all concerned. During severe hard markets, when capacity is constrained and
rates are high, brokers lean heavily on their creativity and relationships with underwriters to meet clients’ coverage needs. Risk managers find large increases and declines in insurance pricing difficult to budget for and even harder to explain to their executive teams. Insurers, for their part, may see longtime policyholders buy less limit or leave altogether.
Insurance market conditions ahead
appear to be stabilizing. Swiss Re forecasts that U.S. property and casualty insurers will see premium growth slow to 5% in 2025 and to 4% 2026, following a 10% average in 2024. The easing of economic inflation should help insurers’ results, but social inflation continues to drive claim costs in liability lines.
‘Consistent growth for brokers is challenging, but it is possible.’
What Brokers Can Do
A long-held belief in the insurance industry is that, during hard market cycles, the underwriter sets the price, while in soft markets, the broker does. This may not be strictly true anymore, as insurance companies invest in technologies and analytics to improve risk selection and pricing. Nevertheless, brokers are essential partners in bringing business to underwriters.
Placement strategies that leverage strong relationships to maximize brokers’ compensation while serving clients’ needs are prudent ways to maintain growth at any point in a market cycle. It’s not unlike dollar-cost averaging in investing. By focusing on opportunities to derive value, brokers that optimize their placements
May 5, 2025
Illinois Emcasco Insurance Company 717 Mulberry Street Des Moines, IA 50309-3872
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
can get the best results over the long term. There are systems, like Broker Insights’ VISION platform, that enable brokers to test placement scenarios to see the benefits of different approaches before deciding which ones to implement.
Cycles may lengthen in the future, but brokers will still need to navigate prevailing conditions in procuring coverage for their clients. In other words, the most successful brokerage firms will be those that enhance their service and value, to both clients and insurers. Consolidating
May 5, 2025
Western-Southern Life Assurance Company
400 Broadway Cincinnati, OH 45202
The above company has made application to the Division of Insurance to amend their Foreign Company License to transact Variable Life or Variable Annuities in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1 Federal Street, Suite 700, Boston, MA 02110, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
May 5, 2025
Benchmark Insurance Company 150 Lake Street Wayzata, MN 55391
The above company has made application to the Division of Insurance to amend their Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
placements with insurers that account for significant shares of a firm’s revenue and profit is a sensible way to maximize both.
Shank is president of U.S. Operations at Broker Insights USA, a division of Dundee, Scotland-based Broker Insights Ltd., a provider of data analytics and market insight for the commercial insurance industry. Broker Insights was founded in 2018 to transform the commercial insurance industry through data-driven decision-making and is available in all 50 states. Website: us.brokerinsights.com.
May 5, 2025
Generali USA Insurance Company
28 Liberty Street, Suite 3040
New York, NY 10005
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Life, Accident, and Health and Property and Casualty Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
Closing Quote
A True Alternative to Opioids for Workers’ Comp? Questions Remain
By Nikki Wilson
Recent FDA approval of suzetrigine, representing the first new class of pain medication in more than 20 years, is generating excitement among workers’ compensation professionals who have long been looking for a viable alternative to opioids.
Suzetrigine is an oral sodium channel blocker sold and marketed by Vertex Pharmaceuticals under the brand name Journavx. It works by selectively targeting the body’s Nav1.8 sodium channel that transmits pain signals to the brain but is not expressed in that area, thus avoiding “the reward center,” which can lead to addiction. As a result, suzetrigine has the potential to act as an additional non-addictive option for pain management.
If suzetrigine fulfills its promise, the impact on workers’ comp could be significant. Opioids still account for the largest share of workers’ comp prescriptions due to limited pain relief alternatives, despite the industry’s efforts to reduce frequency as well as the average morphine equivalent dose (MED) prescribed.
Lack of Good Alternatives
According to the CDC, 82,000 Americans died of opioid overdose in 2022, accounting for more than 75% of all drug overdose deaths.
Prescription opioids play a large role in fueling opioid use disorder (OUD). An NIH study found that injured employees were nearly two times more likely to die of an opioid overdose than their non-injured peers. Beyond the human toll, the financial cost of treating OUD nationally is roughly $100 billion annually.
Despite these risks, there are limited FDA-approved alternatives indicated for treating moderate-to-severe pain. True analgesics such as acetaminophen and NSAIDs such as ibuprofen are considered firstline treatment for acute pain management. Topical analgesic use has also increased, and Enlyte drug trend research found they surpassed opioids in overall workers’ comp pharmacy spend in 2023.
Unfortunately, that’s driven by an increased price point rather than overall effectiveness. Private-label topical analgesics (PLTAs) are not approved by the FDA and are not generally evaluated for compliance with applicable regulations and policies pertaining to safe and effective use. In addition, PLTAs are marketed almost exclusively to physicians for direct dispensing. Doctors can then bill payers hundreds of dollars more for a PLTA with the same active ingredients as readily available over-the-counter products such as Bengay.
Injectable therapies are also an option; however, they do not offer long-term relief and require in-office administration by a trained clinician. What’s more, the delineation of acute pain vs. chronic pain can be challenging to navigate, and
when first-line therapies don’t work, opioids are often prescribed.
Is Journavx the Answer?
Suzetrigine’s approval marks a milestone in pain management as the first non-addictive alternative to opioids to hit the market in several years. Currently, it’s only approved for treating acute pain lasting up to 90 days, and physicians will likely take a stepwise approach, beginning with a first-line non-opioid analgesic before moving to suzetrigine.
Cost could also be an initial concern for those looking to suzetrigine as an opioid alternative. The average wholesale pricing for Journavx is listed at $18.60 per tablet, with a twicea-day dose costing payers nearly $40 a day. That’s significantly more than the cost of a generic opioid or non-opioid analgesic dosage, which can cost as little as $1 a day.
However, proponents of Journavx argue that its shortterm use and non-addictive properties will result in longterm savings over opioids. Workers’ comp often must pay for any complications caused
by treatment, which includes OUD. Plus, workers who are using opioids often cannot return to work because of the sedative qualities and other side effects.
The arrival of suzetrigine represents a potential watershed moment in pain management, particularly for the workers’ comp industry.
While its initial approval is limited to acute pain treatment lasting up to 90 days, the drug’s unique mechanism of action— blocking sodium channels rather than engaging the brain’s reward centers—could herald a new era in pain management.
The higher daily cost of Journavx compared to existing medications will undoubtedly give some pause, but when weighed against the devastating human toll and astronomical health care costs associated with opioid overdose, abuse, and OUD, it could prove to be a comparatively cost-effective alternative.
This article first appeared on ClaimsJournal.com.
Wilson provides clinical leadership and strategic direction as senior director of clinical pharmacy services at Enlyte.
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