Insurance Journal West 2021-05-03

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May 3, 2021 • Vol. 99 No. 9

Contents

Idea Exchange

Special Report

News & Markets

20

8

P/C Insurers Need to Hike Key Commercial Rates Even More: A.M. Best

How COVID Impacts Insurance in Unforeseen Ways

No Delays Found in Medical Care for Workers’ Compensation Claimants During COVID

Is It Covered?: Top 5 Certificate of Insurance Questions

23

12 CEO Swift Optimistic

About The Hartford’s Position as Economic Recovery Begins

14

32 Spotlight:

Closing Quote: Getting Homer Simpson to Buy Insurance

For Some Buyers, Commercial Insurance Market Is Going to Get Better, Easier: Willis

Rising Liability Premiums Adding Stress on Medical Practices: AMA

50

36

26 Small Insurance M&As

2021 Workers’ Compensation Directory

Create More Value Than Large Deals: McKinsey

4 | INSURANCE JOURNAL | MAY 3, 2021

46

The Wedge: Resisting Agency Partners: How to Get Stronger Buy-In

How Liability Immunity for Vaccinations Affects Healthcare

Departments 6 Opening Note

34

28 Closer Look:

Traffic Returning to Roadways, But Claims Patterns May Shift Permanently

15

30

Special Report: Returning to Work After COVID

10 Figures

11 Declarations

16 Business Moves

18 People

27 My New Markets

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WHEN YOU KNOW MORE THAN JUST THE ABCS OF THE INDUSTRY, MANAGING THE RISK BECOMES ELEMENTARY.

We make it our business to know the business of education. That specialization translates to exceptional service.

With expertise in underwriting, risk engineering and claims, we help develop customized product solutions that mitigate risk for mid- to large-size businesses across many industries. The Buck’s Got Your Back.® TheHartford.com The Hartford® is The Hartford Financial Services Group, Inc. and its property and casualty subsidiaries, including Hartford Fire Insurance Company. Its headquarters is in Hartford, CT. 21-ML-625769 © April 2021 The Hartford

Opening Note Write the Editor: awells@insurancejournal.com

Insurance Relief for COVID and More

L

ast month at a media event the insurance industry nonprofit Insurance Industry Charitable Foundation (IICF) gave insurance industry leaders an opportunity to talk about their philanthropic initiatives. Leaders from AIG, AmWins, AXA XL, EY, Lloyd’s and The Hartford discussed their efforts to make a difference in various communities over the past year.

During the event, IICF released the 2020 COVID-19 Crisis: IICF Children’s Relief Fund Impact Report, which detailed the industry’s giving to its 2020 Relief Funds in the U.S. and UK and how the funds supported those in need, including by providing more than 2.5 million meals to children.

IICF positioned the event as a way for the industry to help itself attract new talent while also helping others.

“Increasingly, our industry is using its philanthropic voice to initiate and support the development of new talent from communities not previously aware of the career possibilities we offer,” said Hank Watkins, regional director and president of Lloyd’s, Americas, and chair of the IICF International board of directors.

The COVID-19 Crisis: IICF Children’s Relief Fund Impact Report, released at the roundtable, shared statistics from the industrywide campaign, including that $1.3 million was raised to combat food insecurity, educational disruption and that more than 1,500 individual insurance professionals contributed personally to help those in need. IICF’s five divisions across the U.S. and in the UK worked together with 26 nonprofit partners, awarding more than 60 grants.

The 2020 IICF Philanthropic Showcase highlights the charitable programs, volunteerism and inclusion initiatives of IICF and its key companies. Some of the showcased initiatives included: AIG: Throughout 2020, AIG has donated more than $22 million in charitable contributions and matching grants. The AIG Foundation has directed $4.5 million toward organizations leading COVID-19 relief efforts, and to support the Black community and racial equity, the AIG Foundation made $500,000 in grants.

AmWins: The AmWins initiative to improve diversity and opportunity in the industry includes its partnership with Tuskegee University. The company has committed $1 million to help further the development and awareness of risk management programs in Historically Black Colleges and Universities (HBCUs).

Lloyd’s: Last year, Lloyd’s committed £15 million to support the pandemic relief efforts of charities in the UK, U.S. and other countries. Lloyd’s also donated $500,000 to the COVID-19 Crisis: IICF Children’s Relief Fund. This was the largest single contribution received by IICF to date.

The Hartford: In addition to the $1 million The Hartford committed to COVID-19 relief efforts across the country, the company provided $1.5 million to support U.S. small businesses in partnership with Main Street America, a nonprofit organization dedicated to preservation-based economic development.

Other IICF partner companies include Aon, AXA XL, Chubb, CNA, EY, Hub International, Munich Re, Swiss Re and Zurich.

Andrea Wells Editor-in-Chief

6 | INSURANCE JOURNAL | MAY 3, 2021

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ADMINISTRATION / CIRCULATION

Chief Financial Officer Mark Wooster | mwooster@wellsmedia.com Circulation Manager Elizabeth Duffy | eduffy@wellsmedia.com Staff Accountant Sarah Kersbergen | skersbergen@wellsmedia.com

EDITORIAL

Chief Content Officer Andrew Simpson | asimpson@insurancejournal.com Editor-in-Chief Andrea Wells | awells@insurancejournal.com East Editor Elizabeth Blosfield | eblosfield@insurancejournal.com Southeast Editor/MyNewMarkets Amy O’Connor | aoconnor@insurancejournal.com South Central Editor/Midwest Editor Stephanie K. Jones | sjones@insurancejournal.com West Editor Don Jergler | djergler@insurancejournal.com International Editor L.S. Howard | lhoward@insurancejournal.com Columnists & Contributors

Randy Schwantz, Bill Wilson Greg Capps, Nick Frank, Mark Hollmer, Phillip D. Moultrie, Daryn Rush, Jim Sams, Susanne Sclafane

SALES / MARKETING

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ACADEMY OF INSURANCE

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News & Markets P/C Insurers Need to Hike Key Commercial Rates Even More: A.M. Best derecho) drove higher property losses,” the report said.

Such perils are likely to continue to increase as a percentage of annual insurance losses as a result of the rise in climate-related risks exacerbated by population growth and rising property values in exposed areas, the report continued.

Even after ceding some of these losses to reinsurers, catastrophic events had almost twice the negative effect on the segment’s calendar year combined ratio than in 2019, adding an estimated 7.5 points to the industry’s net combined ratio (on a statutory basis), versus 4.1 points in 2019.

Despite these higher catastrophe losses, U.S. publicly traded insurers saw lower exposures to loss for some key lines of coverage, such as personal and commercial automobile and workers’ compensation — lines that generate about half of the P/C industry’s net premium.

T

he environment for many of the U.S. property/casualty (P/C) insurers lines remains competitive despite the need for rate increases for key commercial lines of coverage such as property catastrophe, commercial automobile, general and professional liability and medical professional liability.

For many insurers, there is still a need for premium increases to more adequately reflect claims costs and loss costs to help improve underwriting profitability, said AM Best’s report titled “US P/C Insurers Perform Well Despite COVID-19.”

Additional rate hikes in 2021 should help boost the segment’s premium revenue and operating profits, the report indicated.

AM Best noted that P/C revenue declined 1.9% to $560.7 billion during 2020, driven by a significant drop of 18.8% in net investment income, while expenses grew 4.1%, far exceeding the modest increase in premium revenue.

Although operating income declined 8 | INSURANCE JOURNAL | MAY 3, 2021

Dividend and Repurchase Programs by more than 40%, P/C insurers remained profitable during 2020, which was in part a reflection of profitability in 2019, when insurers saw a comparatively benign catastrophe year and a significant increase in investment income. “[C]atastrophe losses and a sizable increase in policyholder dividends more than countered the increase in premium revenue,” AM Best explained.

Catastrophe Losses

“Insured losses from hurricanes ($25 billion), convective storms ($30 billion) and wildfires ($11 billion) came to more than $66 billion [during 2020],” said the report, noting that these property losses were considerably elevated from prior years.

“Several hurricanes (including Hurricane Laura, the strongest hurricane to ever make landfall in Louisiana), along with substantial secondary peril losses due to wildfires and convective storms (including a record-setting Midwestern

The report noted that many insurers paused their dividend and share repurchase programs during COVID, although most resumed after assessing the impact.

The total amount of capital returned to shareholders rose by $18.5 billion (89%) to $39.4 billion, in 2020, which stock repurchases increased by $19 billion to $30.1 billion. The rise in stock repurchases was due primarily to Berkshire Hathaway, which repurchased $24.7 billion worth of stocks, an increase of almost $20 billion from 2019.

Shareholder dividends declined 4.9% during, said the report. Only three companies paid out over a billion dollars in dividends in 2020: Progressive Corp, Chubb Ltd. and American International Group Inc., which accounted for 44% of aggregate dividends.

AM Best said, for most companies, dividends paid in 2020 were close to 2019 dividends. The analysis in this report is based on the vast majority of the U.S. P/C insurers that file U.S. GAAP statements, the ratings agency said.

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Figures That’s how much Ahmad Zaki Noori, 41, of Sacramento, Calif., was accused of collecting in undeserved workers’ compensation benefits.

Noori was arraigned in mid-April on two felony counts of insurance fraud after allegedly misrepresenting symptoms following a work-related injury in order to receive the benefits.

$21K

$877.5 Million The amount in surplus lines premium recorded in Texas in March by the Surplus Lines Stamping Office of Texas (SLTX). The March premium brings Texas’ year-to-date total surplus lines premium up to $2 billion.

The March 2021 figure represents a 40.9% increase in premiums over March 2020, and a 20.1% increase in YTD premiums when compared to the same period in 2020.

7.6

The average statewide rate increase approved for dwelling insurance policies by the North Carolina Department of Insurance. The North Carolina Rate Bureau, which represents companies writing property insurance in the state and is not part of NCDOI, filed for a 18.7% rate increase in December but NCDOI disagreed with the filing and planned a hearing for next year. NCDOI said after studying the data, a settlement was negotiated for an overall statewide increase of 7.6%. Commissioner Mike Causey said the settled rate agreement will save consumers nearly $33 million a year in premium payments.

10 | INSURANCE JOURNAL | MAY 3, 2021

$8 Million The amount that the insurer for the City of Cedar Rapids, Iowa, will pay to a Black motorist who was paralyzed after a white Cedar Rapids police officer, Lucas Jones, shot him during a 2016 traffic stop, according to the Associated Press. The payout will settle a long-running lawsuit brought by Jerime Mitchell, 42. The city admitted no wrongdoing and said its review determined Jones “acted properly” given the facts and circumstances of the stop.

A city spokeswoman said in a statement that States Insurance controlled whether to settle under its policy and “determined settlement to be in the best interests of its insured, the city.”

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Declarations

Growing Danger and Deception

Colorado Lawsuit

Driving In-Texticated

— Mayor Gavin Buckley said after Maryland’s capital city filed a lawsuit against 26 oil and gas companies, saying their industry was taking the environment to a point where fighting climate change would be difficult. The city of Annapolis filed the lawsuit in Anne Arundel County Circuit Court. ExxonMobil, Chevron, BP and Shell are among the named defendants. Annapolis says it’s the 25th state or local government to file such a lawsuit.

— A 73-year-old woman with dementia is suing a Colorado city and members of its police department after she suffered a dislocated shoulder and bruises last year while being arrested after leaving a store without paying for about $14 worth of items.

— Alabama House Representative Rep K.L. Brown, who introduced a bill in the state’s legislative session that would have fined people for using a smartphone while driving. The bill failed on a narrow 47-48 vote after a lengthy debate that drew criticism from members of both parties.

“The companies worked to deceive people of the danger, hiding their knowledge and engaging in an intentional campaign to mislead the public about the science proving the growing danger posed by fossil fuels.”

“What little freedom and happiness Ms. Garner enjoyed in her life as an elderly adult with declining mental health was, on June 26, 2020, recklessly and deliberately obliterated by the Loveland Police Department.”

“I think we could probably poll everybody in here and they could probably tell you within the last week of cases where they have been driving behind someone and they are weaving. Instead of driving intoxicated. They are driving in-texticated.”

Auto Crimes Increase

“Since the start of the pandemic, we have seen a drastic increase in auto crimes to include a rise in catalytic converter thefts, and Texas continues to be at the top of the list.”

A Clear Message

— David Glawe, president and CEO of the National Insurance Crime Bureau (NICB), said in a media release. The NICB is backing Texas legislation to stop the rise in catalytic converter thefts. HB4110 would increase requirements on sellers of catalytic converters, impose due diligence obligations on metal recycling entities, and increase penalties for engaging in fraud related to catalytic converter purchases.

— Federal Energy Regulatory Commission Chairman Rich Glick said after FERC assessed a $15 million civil penalty against Boyce Hydro Power LLC for safety violations at three Michigan hydroelectric projects, including a dam that collapsed last year and contributed to flooding that forced evacuation of about 10,000 people. Boyce Hydro filed for bankruptcy protection amid numerous lawsuits after its Edenville and Sanford dams failed in May 2020 during steady rain.

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“Today’s decision sends a clear message to all licensees of FERCjurisdictional hydroelectric projects: It is imperative that they comply with the safety requirements of their licenses.”

MAY 3, 2021 INSURANCE JOURNAL | 11

News & Markets CEO Swift Optimistic About The Hartford’s Position as Economic Recovery Begins

of that coming in 2021.

While the company reported a 10.5% he Hartford CEO Christopher Swift return on equity for the 2021 first quarter, expressed confidence that the propdown from 11.8% the year before, it is erty/casualty insurer has weathered targeting a 13% to 14% ROE the worst of the COVID-19 pandemic and for 2022 and 2023. that related concerns about business In terms of share buybacks, interruption claims have become minimal.

Swift said that the increase is, “I have never been more excited about in part, due to the company’s The Hartford’s future,” he enthused during strong capital position, and the insurer’s Q1 2021 investor call on April also “greater certainty that the 22. “Going forward, the macroeconomic pandemic is in the rearview environment and mirror.” favorable industry That increased optimism began early outlooks should this year, Swift explained. provide significant “When we built our plan in fourth tailwinds, which quarter of 2020, we were still in the when coupled with midst of [what] I thought was the worst our strong portfolio of the pandemic. Mortality trends were of businesses and increasing [and it] was time to still be a the continued exelittle cautious,” Swift said. “As we got into The Hartford CEO cution of our strat2021, and particularly after we completed Christopher Swift egy, position us to the first quarter, we felt it was appropriate deliver accelerated to rethink the future and disclose what we growth and continued margin expansion disclosed today. It’s very positive news, as evidenced by our strong underlying more of a growth story obviously — a results this quarter.” margin expansion story, efficiency and ord Fire Insurance Company. Its headquarters is in Hartford, CT. 21-ML-625769 © April 2021 The Hartford When asked about pandemic business expense story.” interruption litigation against The That led, in part, to the plans for a share Hartford, Swift indicated he thinks the buyback, which Swift said was a better situation is under control. use of resources than another option such “It’s going pretty well,” he said. “The as an acquisition. “M&A is a low priority vast majority of courts, both state and for us [right] now,” Swift said. “We have federal, are interpreting policy language everything, colloquially, ‘in the building,’ as we anticipated. Our policy language is to compete long term,” he said. “[Buybacks clear and unambiguous. Shutdowns were are] an appropriate strategy for where we government ordered for safety reasons, are in our development right now.” [so] this will continue to play out favorably Swift’s optimistic remarks came after the over time.” At the same time, Swift added, insurer disclosed it had turned away three The Hartford is remaining prudent. surprise acquisition offers from Chubb “We haven’t changed our reserve over the past month. posture [and] continue to carry expense Q1 Results reserves for litigation,” he said. “But we do The Hartford booked $244 million in not carry any incurred losses for business net income during the 2021 first quarter, interruption exposures.” or $0.67 per diluted share, down 9% from Underscoring Swift and The Hartford’s $268 million, or $0.74 per diluted share in optimism about the future, the company the 2020 first quarter. said it has increased its share buyback to Those results included the impact of $2.5 billion through 2022, with $1.5 billion

By Mark Hollmer

T

a $650 million settlement with the Boy Scouts of America, $214 million in pre-tax net catastrophe losses, mostly due to winter storms in Texas and elsewhere, and $185 million in COVID-19 related excess mortality losses in Group Benefits.

According to Swift, the settlement with the Boy Scouts, which still needs court approval, took a long time to achieve.

“We’ve been in lengthy, meaningful and intense discussions with them for a [long] period of time,” Swift said during the call. This settlement “put it behind us. When you look at the risks of policies going back into the ’70s, those were not unaggregated risk policies. There are not good facts there.”

At the same time, Swift said, The Hartford was in a good position in relation to the Boy Scouts’ bankruptcy proceedings and ongoing sex abuse claims.

“On the other hand, we felt we had prudent defenses and legal postures. But that would have been costly. That would have been lengthy,” Swift said. “As the Boy Scouts were emerging from bankruptcy, there was an opportunity and we seized it. We’re optimistic it will get bankruptcy court approval.” He called the Boy Scouts case “a very unique” situation and added that the insurer does not see anything in its exposures “close to what the Boy Scouts’ exposures are.”

Other results: • Commercial lines written premiums grew to $2.5 billion, up from $2.4 billion in Q1 2020.

• Commercial lines booked a 109.7 combined ratio in the quarter versus 99.1 a year ago.

• Personal lines net income grew to $135 million versus $98 million in the 2020 Q1.

• Written premiums reached $715 million, down 4% from the $744 million produced the year before.

• Personal lines combined ratio reached 83.1 compared to 86.7 in Q1 2020.

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News & Markets Traffic Returning to Roadways, But Claims Patterns May Shift Permanently

By Jim Sams

T

he number of cars on US roads is returning to normal as states ease COVID-19 restrictions, but that doesn’t necessarily mean claims frequency and severity will return to historic patterns.

Metromile, a San Francisco-based pay-as-you-go auto insurer, expects a permanent change in driving patterns even after pandemic restrictions are gone.

“We think that there is going to be a very large group of Americans who are going to permanently drive less,” said Communications Director Rick Chen.

CCC Information Systems, a Chicago tech company that sells auto claims software, also said a long-term shift in traffic patterns may emerge in a report released in March.

“Overall miles driven and trips taken might not see a significant decline, but more telework would still lead to fewer rush-hour trips, less congestion in urban areas, and freer movement of remaining traffic,” the 2021 Crash Course report written by analyst Susanna Gotsch says. “In many ways, the pandemic environment has given us some idea of what the future may look like, and what that means to our industry.”

Metromile posted a recent blog sharing data collected from the eight states where it sells insurance. The number of miles driven declined in all states at an average of 30% in 2020 compared to 2019 and continued to be 28% below prior-year levels in January and February 2021.

But in March, miles driven jumped 19% compared to March 2020, when state lockdowns first began.

The number of miles driven in March was still 79% of miles driven in February 2020. Metromile said Illinois, at 29%, and Washington state, at 30%, experienced the largest gains in vehicle miles. The carrier said large employers in both states reopened offices.

But new driving trends are emerging.

Metromile said roads may not become as congested as before as employers embrace hybrid work schedules.

“Folks are no longer driving in the evening and in the morning commute hours,” Chen said. “Instead they are driving midday. If you’re coming into the office, you’re only doing it a few days a week.”

The CCC Crash Course report cited data that suggests remote work is here to stay. A survey by Enterprise Technology Research of 1,200 chief information officers for global corporations showed permanent remote work is expected to double to 34.4% of company workforces in 2021, compared to 16.4% before the pandemic and 72% during the pandemic.

Numerous other studies have made similar projections, CCC said. The report says auto collision/liability claims were 24% below prior year levels for 2020, and dropped as low as 40% below the prior year levels during the second quarter.

CCC cited several studies that projected auto travel will increase as the global economy recovers from the pandemic, but also other studies that suggest driving patterns will change. Many long commutes may be eliminated, but they may be replaced by more frequent short trips, the report says.

“Overall miles driven and trips taken might not see a significant decline, but more telework would still lead to fewer rush-hour trips, less congestion in urban

areas, and freer movement of remaining traffic. In many ways, the pandemic environment has given us some idea of what the future may look like, and what that means to our industry,” the report says.

The reports by Metromile, CCC and a report released by Fitch Ratings in March highlighted the down side of less congested roads: Speeding.

Metromile said speeding at 75 miles per hour or more was 74% higher from January to March 2021 compared to the previous year.

CCC noted that the National Highway Traffic Safety Administration reported the fatality rate per 100 vehicle miles traveled increased to 1.42 in the first half of 2020 compared to the same period of the prior year.

Fitch noted that the National Safety Council reported that automobile crash fatalities rose 8% in 2020 despite a 13% reduction in miles driven. On the bright side, Fitch noted major carriers saw auto claims frequency reductions from 12% to 30% in 2020.

“Declines in frequency were offset somewhat by more rapid growth in claims severity of 8%-10% for physical damage and 12%-13% for bodily injury,” Fitch said. “Underwriters point to accidents occurring at higher speeds in less crowded traffic conditions and distracted driving as contributors to these severity trends.”

News & Markets For Some Buyers, Commercial Insurance Market Is Going to Get Better, Easier: Willis

N

orth American buyers of commercial property/casualty insurance can expect an “ever-so-slight turn for the better” and a “less difficult marketplace” in the months ahead.

However, global broker Willis Towers Watson’s 2021 Insurance Marketplace Realities report adds, buyers will continue to face rising prices across most lines of business for the remainder of 2021.

Willis says the increases are primarily due to “increasing severity of losses” that have been the main driver of the hard market.

While affirming the pressure on pricing, the broker also offers some positive news for buyers in the report: Property increases are not as steep as predicted last fall. According to the report, increases are expected to be lower than predicted last fall for 10 lines of insurance and about the same as predicted for almost half the lines.

Only a handful of lines are expected to see higher increases — and some of those just slightly higher. The report conveys that the market has become more orderly and predictable, with rates approaching technical adequacy in some lines and sectors, as new capital has entered the marketplace.

“With higher rates attracting new entrants and coaxing some capacity to come off the sidelines, rate increases are beginning to decelerate, or at least stop climbing,” said Joe Peiser, global head of Broking, Willis Towers Watson. “It’s still a hard market, but to a large degree, the hard/soft market cycle is — or will soon be — proven again.”

The company sees that a two-tiered market has emerged — one for better risks, one for poorer ones — and anticipates each tier will pay more for insurance in 2021, but those in the better tier will suffer considerably less.

While there are wide variations by product line, good risks are finding ease of conditions, including more modest

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rate increases; others, not so much. Strict underwriting and cautious deployment of capacity on certain risks persist as the underwriting community grapples with systemic changes in the risk landscape.

“Because this hard market has been characterized by uncanny underwriting discipline, it’s important for insurance buyers to differentiate themselves into the good tier,” said Peiser. “Buyers and brokers should fight analytics with analytics to differentiate good risks from others in an insurer’s portfolio.”

As for specific lines, property rate increases, while high, offer what passes as a bright spot in the current marketplace: For non-challenged occupancies, predicted increases fell from +15% to +20% in the fall to +5% to +15% now; for challenged occupancies, the range improved from +30% or more to +20% or more.

The WTW outlooks for other lines: • General liability predictions remain at +7.5% to +15%. Casualty excess predictions

are slightly less eye-popping than in the fall: from +150% or more for high-hazard buyers and +75% or more for low/moderate hazard buyers, to +100% or more for high-hazard and +50% or more for low/ moderate.

• Workers' comp continues to offer a respite from big increases, with some buyers even coming away with flat renewals.

• Auto rate increases remain plateaued at +8% to +15%.

• Directors’ and officers’ liability increases are decelerating, from +20% to +50% for public companies and +10% to +50% for private/nonprofit organizations in the fall to +10% to +40% for public and +5% to +45% for private/nonprofit now.

“Risk differentiation always begins with a strong commitment to risk management.

We strongly believe that providing exposure data that is both current and developed with rigor paves the way for better renewal outcomes. High-quality data are also a necessary,” added Peiser.

Willis Towers Watson Key Price Predictions for Remainder of 2021 Property

Non-challenged occupancies................................................. +5% to +15% Challenged occupancies......................................................... +20% or more

Casualty

General liability...................................................................... +7.5% to +15% Umbrella................................................................................ High hazard: +50% or more; Low/moderate hazard: +30% or more Excess.................................................................................... High hazard: +100% or more; Low/moderate hazard: +50% or more Workers’ Compensation......................................................... Flat to +4% Auto....................................................................................... +8% to +15% International.......................................................................... +7% to +10%

Executive Risks

Directors’ and officers (public company – primary)................ +10% to +40% Directors’ and officers’ (private and not-for-profit – overall).. +5% to +45% Errors and omissions (large law firms)................................... +10% to +25% (higher for poor risks) Errors and omissions (midsize law firms)............................... +10% to +15% Employment practices liability.............................................. +20% to +40% Fiduciary (financial institutions)............................................ +15% to +50%

Cyber

Cyber..................................................................................... +25% to +50%

MAY 3, 2021 INSURANCE JOURNAL | 15

Business Moves

National

Appalachian Underwriters, Ethos

Appalachian Underwriters Inc. has partnered with life insurance provider Ethos to offer the coverage via the fintech’s online platform. Agents can now quote customers’ life insurance without medical exams, which have been replaced by a few health questions through the Ethos system.

Agents can offer both a level term life insurance (with up to 30-year terms and $1 million in face amount) in all states but New York, as well as Simplified Issue Term, Simplified Issue Whole, and Guaranteed Issue Whole Life options.

After underwriting, which is often instant or the same day, the applicant will get a decision. If approved, insureds can choose to activate their coverage without agent involvement.

AUI is a full-service MGA and wholesale insurance brokerage working with independent agents. Ethos is a fintech providing life insurance policies by quantifying the user’s health risk using predictive models instead of requiring people to go through the process of paper applications and medical exams.

East

World Insurance Associates, C. Walter Searle Insurance Agency

World Insurance Associates LLC has acquired C. Walter Searle Insurance Agency LLC of Nutley, New Jersey.

Since its founding in 1926, C. Walter 16 | INSURANCE JOURNAL | MAY 3, 2021

Searle has been serving the insurance needs of individuals, families and businesses in New Jersey. It provides insurance for lines of business including personal auto and home, commercial business, liabil-ity, workers’ comp and auto, as well as life and health.

WIA is headquartered in Tinton Falls, New Jersey, and is a full-service insurance brokerage providing asset and lifestyle protection with risk management, insurance and benefit consulting services for individuals and businesses.

Since its founding in 2012, WIA has completed 98 acquisitions and serves its customers from 99 offices in 23 states and Washington, DC. Giordano, Halleran & Ciesla provided legal counsel to WIA. Gaccione & Pomaco provided legal counsel to C. Walter Searle.

No other advisors, diligence firms or legal counsel were disclosed.

Hub International, Incentive Systems, Davis Trachtenberg

Hub International Limited has acquired the assets of Incentive Systems Inc. Located in Lansdale, Pennsylvania, ISI provides employee benefit solutions, helping clients maximize the value of the health, life disability and voluntary programs.

ISI President Michael Jacobson will be joining Hub Northeast following the acquisition.

In a separate transaction, Hub has also acquired the assets of Davis Trachtenberg Inc. (DTI)

Located in Newtown Square, Pennsylvania, DTI is a full-service insurance agency providing clients with commercial and personal insurance.

DTI Principal Robert Davis will join Hub Northeast.

Headquartered in Chicago, Illinois, Hub International Limited is a full-service global insurance broker providing risk management, insurance, employee benefits, retirement and wealth management products and services. It aims to grow organically and through acquisitions to expand its geographic footprint and strengthen industry and product expertise.

Midwest

Towerstone, Jacobs & Associates

Towerstone, a Dallas-based wholesale insurance division of IMA Financial Group, acquired Jacobs & Associates, a general agent and excess and surplus lines broker based in Strongsville, Ohio.

The partnership opens new markets for Towerstone and Jacobs, while also creating new offerings for the companies’ retail broker partners and specialty risk clients.

Jacobs & Associates will join the IMA Financial Group and will retain its name.

Its six team members will continue to operate out of the company’s office in Strongsville.

The acquisition is IMA Financial Group’s tenth in the past 12 months and serves as a springboard for Towerstone’s growth within Texas and beyond, the company’s announcement said.

Towerstone has specialized in wholesale insurance products and services for the oil and gas industry for three decades, and serves additional industry verticals, as well.

Hilb Group, Star Insurance Agency

The Hilb Group LLC has acquired Indiana-based Star Insurance Agency.

Star Insurance Agency is a full-service agency providing fast, caring service to clients throughout the region.

Star Insurance Agency has both personal and commercial insurance offerings, including both property/casualty and employee benefits.

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As a part of the transaction, Leslee Robinson, Billy Davenport and the Star Insurance team will join THG of Indiana.

THG is a property/casualty and employee benefits insurance brokerage and advisory firm headquartered in Richmond, Virginia.

South Central Bernhard Capital, Gray Casualty & Surety

A group of investors led by Bernhard Capital Partners Management LP, a services and infrastructure-focused private equity management firm, has entered into an agreement to make a significant investment in Metairie, Louisiana-based The Gray Casualty & Surety Co., a surety market affiliate of The Gray Insurance Co. Gray Surety, established 2003, provides surety bonds to emerging and mid-market contractors. Gray Surety partners with professional bond agents to provide responsible surety bond options across the country.

The Gray Surety team also underwrites commercial bonds related to licenses, permits, and other regulatory requirements.

Current management will continue to operate Gray Surety.

Gray Surety has offices in Louisiana, Texas, Mississippi, Alabama, and Arizona.

Founded in 1977, The Gray Insurance Co. is a family owned, relationship-based, and service-focused insurance company admitted in 50 states.

The company is headquartered in southeast Louisiana and focuses on the energy, industrial and construction industries with an emphasis on the Gulf Coast and the southeastern United States.

Higginbotham, First Louisiana Insurance

Fort Worth, Texas-based Higginbotham has partnered with First Louisiana Insurance, an independent agency located in Baton Rouge, Louisiana, to establish its second office in that state.

First Louisiana Insurance provides commercial and personal insurance services in the Gulf Coast region.

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The agency opened in 1980 and serves clients ranging from individuals and families to small local businesses and large companies with multiple locations.

Its nine insurance professionals provide property, casualty and liability coverage and employee benefits.

Higginbotham named First Louisiana Insurance founder and President Jack Harless a managing director, and he will continue leading First Louisiana Insurance along with executive vice president Kase Gonzales.

Higginbotham entered Louisiana in January 2021, partnering with an agency in Bossier City, La. First Louisiana Insurance builds on the combined firm’s ability to serve the market and sets a path for further growth in the state, Higginbotham said.

Higginbotham now has more than 45 offices in 10 states serving domestic and international customers.

Southeast

The Hilb Group, McCartha, Cobb & Associates

The Hilb Group LLC has acquired South Carolina-based McCartha, Cobb & Associates Inc. McCartha, Cobb & Associates is an insurance agency, specializing in contract and commercial surety bonds to the construction industry.

As part of the transition, Wayne McCartha, Ray Cobb, and Kathryn McCartha-Powers will join the THG Southeast region office in Columbia, South Carolina.

According to Wayne McCartha, partnering with THG will enable the company to operate across a broader platform and expand its surety services.

Ricky Spiro, THG CEO, said the firm will help strengthen the company’s construction and surety bonds practice in the Southeast.

THG is a property and casualty and employee benefits insurance brokerage and advisory firm headquartered in Richmond, Virginia. It is a portfolio company of The Carlyle Group, a global investment firm.

World Insurance, LB Insurance, John Roberts Agency

World Insurance Associates LLC has acquired Lawrence & Brownlee Insurance Agency and John Roberts Insurance Agency (JRIA), both of Anderson, South Carolina.

LB Insurance was established in 1912 and later incorporated in 1926 by W.H. Lawrence and R.F. Brownlee.

David H. Fant joined the firm after graduating from college and was offered a partnership in 1995. He has been the sole owner since 2001.

The company strives to invest in the local community and support local businesses, non-profits and local and international missions.

LB Insurance's focus is on commercial lines accounts and personal lines accounts.

John Roberts Insurance Agency was founded in 2002 by John Roberts. The goal of the agency is to offer options to clients and to write commercial insurance.

WIA is headquartered in Tinton Falls, New Jersey, and is a full-service insurance organization providing individuals and businesses with products and services across personal and commercial insurance lines, employee benefits, retirement and financial services and human capital management solutions.

Since its founding in 2012, WIA has completed 98 acquisitions and serves its customers from more than 138 offices in the U.S.

West

Hub, Wyoming Financial Insurance

Hub International Limited has acquired the assets of Wyoming Financial Insurance.

Art Hansen, president of Wyoming Financial; Mike Kretzer, CFO; and Bob Moberly, CEO, will not be joining HUB. The rest of the Wyoming Financial team will join Hub Mountain.

WYFI provides commercial insurance, personal lines and high net worth solutions, employee benefits and surety bonds.

MAY 3, 2021 INSURANCE JOURNAL | 17

People National

Alleghany Corp. has trig-

gered a changing of the guard, with a new CEO slated to take over at the end of 2021. Current CEO Weston Hicks will retire as CEO and as a director of property/casualty insurance and reinsurance holding company at the end of this year.

Executive Vice President Joseph Brandon will succeed him, in a two-phased process.

Brandon will become CEO and be appointed to Alleghany’s board of directors at the end of 2021. He succeeded Hicks as president of Alleghany on April 23, after the company’s 2021 annual stockholder meeting.

Brandon, 62, has been with Alleghany since 2012, when he joined as executive vice president. Before that, he was chairman and CEO of Berkshire Hathaway’s General Re Corp. from 2001 to 2008.

Hicks, 64, joined Alleghany in 2002 as executive vice president of Finance and became director, president and CEO on Dec. 31, 2004. Before Alleghany, he served a stint as chief financial officer of Chubb Corp. and previously was a senior research analyst at J.P. Morgan Securities and Sanford C. Bernstein & Co. Alleghany’s CEO transition triggers another executive change. Kerry Jacobs, currently senior vice president and chief financial officer, succeeded Brandon as executive vice president of Alleghany, effective April 23, 2021. Jacobs will continue as CFO until a successor is identified.

Jacobs, 42, joined Alleghany in 2014 as vice president of Finance and has held roles with increasing responsibility during her seven-year tenure at Alleghany.

East

Southeast

specialty insurance brokerages and underwriting facilities, has promoted Susan Preston to vice president and director of program development for SPG. Preston has been president of Professional Program Insurance Brokerage in Novato, California, since 1993. She has put more than 15 programs together over the years, mostly within the London market.

Preston will now focus on developing programs for brokers where there are market holes.

Headquartered in Summit, New Jersey, SPG is a fully licensed holding company established to acquire and scale insurance underwriting facilities and specialty businesses throughout North America.

underwriter in its Charleston, South Carolina, office.

Yohn is responsible for assisting underwriters on a variety of transportation risks, quoting new and renewal business, corresponding with carrier underwriters and assisting independent agents in Georgia, North Carolina, South Carolina and Tennessee.

Founded in 1920, J.M. Wilson is a managing general agency and surplus lines broker providing independent insurance agents access to specialty markets.

Specialty Program Group LLC (SPG), an operator of

Alex Ilgner has been named

as an account administrator within the Environmental and Construction Professional (ECP) Practice of RT Specialty.

He is based in King of Prussia, Pennsylvania.

In this role, he will support the account management and policy servicing activities offered by senior management to the organization’s national network of agents, brokers and business partners.

Prior to RT ECP, Ilgner supported the day-to-day account activities performed at Diversified Insurance Industries of Hunt Valley, Maryland.

RT ECP is a part of the RT Specialty division of RSG Specialty LLC, a Delaware limited liability company based in Illinois. It provides wholesale insurance brokerage and other services to agents and brokers.

18 | INSURANCE JOURNAL | MAY 3, 2021

J.M. Wilson has hired Jamie Yohn as assistant transportation

Sedgwick, a provider of

technology–enabled risk, benefits and integrated business services, has added Michelle Hay as global chief people officer.

With more than 25 years of professional experience and human resources Michelle Hay leadership and consulting expertise, Hay will have executive responsibilities that include overseeing the company’s global HR team, managing its benefit offerings, identifying and developing talent, furthering diversity and inclusion efforts, working on corporate social responsibility and the company’s people practices.

Hay most recently served as global chief human resource officer for an international commercial real estate firm and previously held HR leadership roles at several other large corporations and consultancies, where she drove the development and

implementation of new and innovative HR programs.

Sedgwick offers resources to clients in the casualty, property, marine, benefits and other lines.

Society Insurance, a Wisconsin-based insurance carrier specializing in coverage for select business niches, has added Joseph Aranas as regional sales manager for the Georgia market. Aranas will help spearhead Society’s launch of Joseph Aranas insurance programs for restaurants and bars in Georgia this spring.

Most recently a senior sales executive for Travelers, Aranas has marketing and sales experience in the insurance industry and will work with local independent insurance agents to craft coverage packages and provide educational materials to help Georgia restaurants and bars protect their businesses.

In his new role as regional sales manager, Aranas is responsible for marketing Society’s products and services as well as developing relationships with independent insurance agents in the market.

Society specializes in protecting restaurants, bars, grocery stores, convenience stores, medical clinics and artisan contractors.

South Central

Dallas-based independent insurance broker Roach

Howard Smith & Barton (RHSB) has promoted Shellie Croy to vice president of Property and Casualty Operations. She has been

INSURANCEJOURNAL.COM

with RHSB since 2016, serving as vice president of Personal Client Shellie Croy Services.

In this new position, Croy will provide leadership, operational direction and supervision of the Commercial and Personal Property and Casualty departments and service teams. She is also a liaison with insurance carriers to maintain and further develop these relationships.

Croy has a background in personal and commercial property/casualty insurance. Prior to joining RHSB, she oversaw a book of commercial business and a team of 17 located in multiple offices for Insureon.

Midwest

National Interstate Insurance Co., based in

Richfield, Ohio, promoted Shawn Los to executive vice president.

Los assumes responsibility for National Interstate’s Truck, Passenger Shawn Los Transportation and National Accounts Divisions, while continuing to lead the Specialty Division.

He joined National Interstate in 2001 as an underwriter trainee and has held various positions of increasing responsibility during his tenure with the company. Since 2013, he has directed the growth of the Specialty Division and currently oversees the company’s underwriting and compliance functions.

National Interstate is a INSURANCEJOURNAL.COM

member of Great American Insurance Group. It offers insurance products and services, including alternative risk transfer programs, focused on the transportation industry.

Great American Insurance Group in Cincinnati, Ohio, promoted Timothy (Tim) E. Markey to divisional vice

president within its Fidelity/ Crime Division.

Markey joined Great American in 2017 as a divisional assistant vice Timothy Markey president. He has assumed roles of increasing responsibility and was named head of Claims for Fidelity/Crime in early 2020. He is responsible for all aspects of the division’s claim handling, subrogation and litigation management, while also assisting with marketing and continuing education initiatives.

Markey brings more than 25 years of industry experience to the role and has held leadership positions in several fidelity industry professional organizations, including his current appointment as vice chair of the Fidelity Claims Advisory Committee for the Surety and Fidelity Association of America.

MJ Insurance, based in

Indianapolis, Indiana, hired industry veteran Bryan Gross as director of Compliance Regulation.

Gross has nearly a decade of practical experience, Bryan Gross previously

working as an associate attorney in Krieg DeVault’s Employee Benefits & Executive Compensation Practice Group.

In this role, Gross practiced law concentrating in the areas of health and welfare employee benefit plans.

As director of Compliance Regulation, Gross will institute policies and practices to ensure MJ’s regulatory and contractual compliance.

He will consult with clients on benefits and compliance strategy, and routinely review legislative and regulatory changes that impact the industry.

MJ Insurance is a commercial and personal insurance, risk management and employee benefits consulting agency with offices in both Phoenix and Indianapolis.

West

Sierra Specialty, a program specialist, managing general agency and wholesale insurance brokerage, has appointed Vicky Dith as a broker and underwriter specializing in construction insurance.

Dith is located in Clovis, California, and has more than 20 years of commercial lines experience.

Dith will be working with Sierra Specialty’s commercial lines team to expand the company’s construction division.

Her areas of expertise include construction for all lines — casualty, excess and professional — as well as high-hazard property insurance, garage and agricultural risks.

Most recently, Dith held the position of production underwriter for Burns & Wilcox, focused on general

liability, property, professional liability, umbrella, auto, property, inland marine and cyber liability.

Lockton Companies has named Patrick McHugh as

vice president in its Seattle, Washington, practice.

Prior to joining Lockton, McHugh was vice president with Parker, Smith & Feek’s hospitality and real estate practices, where he developed insurance, risk management and employee benefits programs for hotel and restaurant groups, as well as real estate investors, managers and developers.

His specialty areas include traditional insurance and alternative risk placements, owner-controlled insurance programs, builders risk, and association-sponsored affinity programs.

Kris Mathis,

senior vice president of claims for

Kris Mathis

CopperPoint Insurance Cos., a Western-

based super regional commercial insurance company, has been re-elected to the California Workers’ Compensation Institute Board of Directors and Executive Committee for 2021.

The CWCI is a private, nonprofit association working to improve the California workers’ compensation market through research, information, education and representation.

CWCI members include 26 insurer groups, as well as 33 of the largest public and private self-insured employers in the state.

MAY 3, 2021 INSURANCE JOURNAL | 19

Special Report: Workers' Compensation

20 | INSURANCE JOURNAL | MAY 3, 2021

INSURANCEJOURNAL.COM

By Andrea Wells

A

s the U.S. economy tumbled in March 2020 at the onset of the coronavirus pandemic millions of people were forced to leave their jobs. A year later, U.S. unemployment is at 6% in March 2021, down from 6.2% in February. That is a substantial improvement after reaching an all-time high unemployment rate of 14.8% in April 2020.

Workers’ compensation premium is sensitive to changes in employment and payroll, and pandemic-related business closures have affected WC losses, says the NCCI. While the full extent of the actual 2020 premium decline is not yet known because premium audits on policies effective in 2020 have not been completed, the NCCI estimates that the WC calendar year 2020 private carrier net written premium to be $38.6 billion.

This represents an 8.1% decline from 2019.

Despite the economic challenges from the coronavirus pandemic, the workers’ compensation insurance market will post strong profits for 2020 generated from savings from fewer claims. According to the NCCI, the workers’ comp private carrier combined ratio for 2020 is estimated to be 86%, compared with an 85% combined ratio for the prior year.

That continues a good trend for the line. Workers’ comp has been the most consistently profitable segment in U.S. commercial lines over the last five years, yielding a 91% average statutory combined ratio from 2015-2019, according to Fitch.

But while the WC market remains a certain bright light, INSURANCEJOURNAL.COM

there is uncertainty over how COVID will continue to affect U.S. employers in 2021 and beyond.

Tony Lee, principal at EPIC, cautions that COVID’s impact on the workers’ comp market isn’t over. “The reason why I say that is because when COVID first hit, I think a lot of people thought it’s just COVID and COVID claims, and it’ll come, and it’ll go away,” he said. “Not like magic or anything like that, but it’s just COVID, and it’s a COVID claim. Pretty black and white.”

But in Lee’s opinion, COVID is far from a black-and-white claim. Claims scenarios will extend far greater than the “basic COVID” claims.

“There are reactions to the vaccinations, and I stress that one because in healthcare or in a healthcare setting there are requirements by certain healthcare employers for vaccinations,” he said. “There are adverse reactions to those vaccinations, which are claims, workers’ compensation claims.”

Lee also sees continued economic challenges for many U.S. employers due to COVID. “COVID is not going to just leave, unfortunately,” he said.

“It will change and develop into something else.”

While the industry continues to watch the outcome of COVID, the claims have not been as prevalent over the past

year as some in the industry worried they would be.

“I’ve actually seen a lower frequency of claims during COVID, and not necessarily associated with any downsizing of businesses,” Lee said.

With downsizing of businesses, history shows there can be upticks in claims. “But I have not seen an influx of claims because of the COVID situation.”

Michael Ballew, founding partner of Atlanta-based Tanner, Ballew and Maloof, agreed. “Honestly the claims were a lot lower than we ever expected,” he said.

“Everyone was afraid that we were going to get COVID claims really baked into workers’ comp but that hasn’t happened as much as everyone thought.”

‘Everyone was afraid that we were going to get COVID claims really baked into workers’ comp but that hasn’t happened as much as everyone thought.’

Ballew says there is still uncertainty, but overall he believes carriers remain bullish on the workers’ comp line.

“I think it’s going to remain, at least for the next year, a leading line of coverage.”

Competition in the workers’ compensation marketplace is still hard and fast, according to Todd Pollock, senior vice president, workers’ compensation,

at AmWins. “I don’t see any major changes happening in the next six months,” Pollock adds. “It’s steady as it goes right now.”

Changing Workforce

One trend affecting workers’ compensation today is the changing workforce and, in particular, the rise of gig workers.

For example, nearly 2.5 million women who lost their jobs in the past year because of the coronavirus pandemic are now turning to rideshare and delivery companies to support their families. The number of women delivery partners on UberEats more than doubled between April 2020 and January 2021, according to Uber’s data reported by CBS News in February 2021. Female drivers currently make up nearly half of all delivery partners on Uber’s food delivery platform, the report said.

The issue of gig employment raises a lot of questions for workers’ comp, according to Matthew Zender, senior vice president at AmTrust North America, a large workers’ compensation insurer.

While benefits for gig workers are minimal, employers may be able to develop programs that provide a limited workers’ comp offering, Zender believes. Also, workers’ comp needs will vary by the nature of the gig work that they’re doing.

“The most traditional gig work that we see, [and] that females tend to gravitate towards, include professional freelance, direct selling, ride sharing and food delivery, all of which are areas that don’t necessarily rise to the level of any state’s view of what would

continued on page 22 MAY 3, 2021 INSURANCE JOURNAL | 21

Special Report: Workers' Compensation continued from page 21 be covered under workers’ compensation,” Zender said.

“However, there’s also a number of females and males who have gravitated toward service platforms, and some of those service platforms may in fact, rise to the level of being considered an employee under that state’s view.”

That might include technology service platforms for home healthcare workers, Zender says. “They’re using that service platform to help associate the job that they’re going to, and the individual who’s going to define that job.

So those are some of the areas that we’ve seen that have given rise to this.”

The workers’ comp market is also affected by the shortage of workers, according to Zender.

“It’s been a really interesting process watching what’s going on with employment right

now,” he said. “Frankly, we are seeing a scarcity of employees.

It appears that as businesses are opening, they’re struggling to find enough employees to help meet the demand.”

From February 2020 to February 2021, 2.4 million women and 1.8 million men left the labor force — neither working nor actively looking for work — representing drops of 3.1% and 2.1%, respectively.

Women accounted for a majority of the decrease in the labor force in the first year of the downturn even though they make up less than half of the U.S. workforce.

For women, the labor force participation rate in February 2021 was 55.9%, compared with 57.9% a year earlier. For men, the rate fell from 69.0% to 67.1% over this period. The decrease in the labor force participation rate for workers overall — from 63.3% to

22 | INSURANCE JOURNAL | MAY 3, 2021

61.3% — exceeds that seen in the Great Recession and ranks among the largest 12-month declines in the post-World War II era, according to Bureau of Labor Statistics data.

According to Pew Research, the key difference between the 2008 Great Recession and today is that job losses in the pandemic have been concentrated in service sectors in which women account for the majority of employment, such as leisure and hospitality, and education and health services.

Another recent labor trend is the increased number of employees who continue to work from home. But working remotely can expose a company to additional workers’ compensation risks, including the most common workers’ comp claim issue involving the lack of ergonomic workstations leading to musculoskeletal disorders. While a concern,

AmWins’ Polluck says he hasn’t seen a large increase in claims for at-home workers. The biggest area of workers’ comp claims hasn’t changed, he said.

“The higher hazard classes, the people that do physical work, such as construction services, manufacturing, healthcare related, and transportation related jobs, those employees are still working.”

Even so, Zender is optimistic for the workers’ comp market for 2021. “I think that the industry has shown a resilience and as the economy improves, I think the workers’ compensation line of business should be in lock step with that.”

Risk Management

COVID has brought about a renewed focus on risk management, with businesses and public entities increasing their reliance on risk management technologies.

A survey conducted by risk-technology consultant Redhand Advisors of 1,100 risk professionals found that 38% of the respondents increased their use of risk technology during the pandemic, while 56% saw no change in their utilization and 6% used risk technology less.

“I’ve seen a renewed interest in risk management, or focus in general, but also specific to work comp,” said Steve Paulin, Orion Risk Management, an Alera Group company in California. “I’m seeing companies now, because of their forced adoption of technology, specifically Zoom, they’re now a little more willing to look at other technology and outside resources with different groups.”

Paulin said even larger clients with large deductible INSURANCEJOURNAL.COM

programs are “doing all the right things” in their workers’ comp risk control, having previously shied away from technology tools such as telemedicine.

“Two years before the pandemic … they said, ‘Okay, that’s interesting. I’ll pass this information on to the HR.’ But, never heard anything after that,” he said. “And then all of a sudden, we’re on Zoom, people are saying, ‘Wow, this really works.’ Then it was, ‘Hey, can you tell us about that telehealth thing again?’”

The “forced adoption” of certain technologies and efficiencies has worked, he said.

“Of course, it wasn’t seamless.

Everybody in one way, shape or form had some issues. But it worked.”

Lee, agreed. “Telehealth, in my opinion, did not gain traction until people started staying at home due to COVID,” he said. Lee says claims administrators are planning to continue using telehealth in a post-COVID world where it makes sense. “I think the barrier to using telehealth still comes down to the individuals and whether or not they feel comfortable seeing a doctor by video or by phone.”

Now Paulin says businesses are more willing to tweak their business models, systems and procedures, to improve efficiencies in claims and risk control.

“Everything’s on the table,” he said, including captives.

“The idea of stepping away from the status quo and the traditional insurance transaction, especially during this time of increasing rates, and looking at some type of risk retention program — large deductibles, captives, retrospective rating, INSURANCEJOURNAL.COM

things like that,” he said. “For whatever reason they weren’t interested before.” But the pandemic in combination with hard market conditions for most of the P/C lines of insurance are driving interest in non-traditional insurance options, he added.

He said more business now see captives as a long-term strategic plan, as a profit center, to reduce costs and

put more profit on the bottom line. “They’re looking at it as a long-term strategic part of their business plan,” he said.

Paulin sees businesses putting COVID risk management thinking into other areas of risk control as well. “It’s been an eye-opening experience for them.”

Zender said the insurance industry, too, has learned lessons through COVID. “In

many ways COVID acted as a force multiplier on change,” he said. “There are things that we needed to be thinking about such as adoption of telehealth, for example. We’ve now realized by force that it can work.”

The past year has been one of the worst years many have ever gone through. “But I think on one level, there will be some positives we can take from the pandemic, and learn from it.”

No Delays Found in Medical Care for Workers’ Compensation Claimants During COVID

By Andrew Simpson

D

espite potential obstacles posed by the coronavirus pandemic, injured workers experienced no meaningful delays in access to medical treatment under their employers’ workers’ compensation programs during the pandemic.

Research from the Workers’ Compensation Research Institute (WCRI) also shows that states have varied substantially in the percentage of workers’ comp claims that have been COVID-19 related.

“We found no change in pattern in the first treatment, and no change in the number of visits,” said economist Olesya Fomenko during WCRI’s recent annual conference in explaining the preliminary findings of her research. Fomenko analyzed data on COVID-19 paid claims from 27 states for the first two quarters of 2020 compared to 2019.

The number of days from injury to treatment in 2020

‘We see a large variation across states in the prevalence of COVID-19 claims.’ was largely unaffected for COVID and non-COVID medical claims, as was the number of medical visits per claim. There was no delay for evaluation and management services, emergency room services, physical therapy, or surgery.

That was true whether the claims originated in the first half of 2020 or were existing claims carried over from 2018 and 2019. In fact, there was a slight improvement in speed to surgery for 2019 claims carried into 2020.

Fomenko also observed that for non-COVID-19 claims, there was almost no change in the injury composition

between 2020 and 2019 second quarters. In 2019, 22% were lacerations/contusions compared to about 21% in 2020. Also, 26% were strains in 2019 while 22% were in 2020.

State Variations

“We see a large variation across states in the prevalence of COVID-19 claims,” Fomenko said of her other major finding.

For all 27 states studied, the median was 6% of all claims being COVID-19 claims.

The share varied substantially state-by-state.

continued on page 24

MAY 3, 2021 INSURANCE JOURNAL | 23

Special Report: Workers' Compensation continued from page 23 The states with the highest percentages of COVID claims were Massachusetts at 42%, New Jersey at 34% and Connecticut 23%. States with the lowest percentages of COVID claims among their workers’ compensation claims included South Carolina at 1%, Kansas (2%), and Texas, Arkansas and Nevada (3%).

Regarding the variations among states, Fomenko found influencing factors include how hard a state was hit by the pandemic, how high the state’s unemployment rate rose, and whether the state had a law presuming the virus was caught on the job or a system feature that favored payment.

“The prevalence of COVID-19 claims is associated with the spread of the virus at the time and the states that were hit the hardest by the pandemic in the second quarter of 2020, such as Connecticut, New Jersey and Massachusetts, also had some of the highest percentages of COVID-19 claims,” she noted.

Non-COVID Claims

All 27 states saw a drop in non-COVID workers’ compensation claims during the first half of 2020, ranging from 20% to 50%. A majority of states had a 30% or more drop in non-COVID claims from the second quarter 2019 to the second quarter 2020. The states with the biggest drop were Massachusetts at 50% and seven states with more than a 40% drop (New Jersey, Michigan, Connecticut, Louisiana, Illinois, Florida and Pennsylvania). The smallest drops were 20% in Kansas,

21% in Arkansas, and 25% in Tennessee and Arizona.

“Here is where we see the impact of the massive economic slowdown, stay-home policies, and switching to work from home on the volume of workers’ compensation claims,” she explained.

While the drop in nonCOVID claims appears to track with states’ unemployment rates, it is not fully explained by the unemployment picture, according to Fomenko.

COVID claims from workers have been most prevalent in certain high risk services industries; in particular in the health care industry including assisted living facilities, hospitals, and physician and dentist offices.

More than 60% of COVID claims in the first and second quarters of 2020 were in health services as opposed to in

24 | INSURANCE JOURNAL | MAY 3, 2021

construction, manufacturing, clerical, or other industries.

Again, the share of claims in the healthcare sector varied by state, with only 8% in South Carolina and 9% in Kansas to a high of 75% in Massachusetts, 68% in New Jersey and 67% in Connecticut. The median rate among states of COVID-19 claims from the health care industry was 34%.

“COVID-19 claims have a concentration in high risk services, more than 60% of all claims were happening among workers in high-risk services,” Fomenko stated. Lower risk services had another 30% of COVID claims. “So, service industries have a majority of COVID-19 claims by the end of the second quarter 2020.”

States that had passed workers’ comp laws that presumed a virus was a job-related

event in the second quarter 2020 — Wisconsin, Kentucky, California, Pennsylvania, Delaware, Minnesota, Illinois, Michigan and Connecticut — tended to have higher percentage of COVID-19 claims than states that did not. Massachusetts and New Jersey had other features of their workers’ comp systems that had a similar effect.

The states in the WCRI study were Arkansas, Arizona, California, Connecticut, Delaware, Florida, Georgia, Iowa, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, North Carolina, New Jersey, New Mexico, Nevada, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and Wisconsin.

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News & Markets Small Insurance M&As Create More Value Than Large Deals: McKinsey

By Susanne Sclafane

M

cKinsey analysts believe insurers focused on large one-off deals undertaken to scale their companies and those that stick to organic growth are both headed down unfruitful paths if outsized shareholder return is their success metric.

In a report published in late March, “A Better Approach to M&A in North American Insurance,” five members of McKinsey’s Financial Institutions practice, who are consultants and advisers in the insurance space, analyzed 250 life and property/casualty deals totaling more than $200 billion since 2007.

Although 60% of the transactions targeted greater scale as a goal, acquirers looking for product diversification and new capabilities did better in terms of excess total shareholder returns, they found.

The report defines excess TSR as the change in acquirer TSR (from 30 days prior to two years after the announcement date) in excess of the Dow Jones U.S. Life Insurance Index or Dow Jones US P/C Insurance Index.

Breaking down returns for the 173 P/C deals included in the analysis, the McKinsey researchers reveal that excess TSRs for acquirers targeting product diversification came in at 8% while excess TSRs for deals focused on scale averaged only 1%.

In addition, concentrating the analysis on absolute deal size, they found that excess TSRs for small deals were 3% higher than for large deals.

Later in the report, the authors define a large-deal approach as one in which a company makes at least one deal per year and the target’s market capitalization is equal to or greater than 30% of the acquirer’s market capitalization.

26 | INSURANCE JOURNAL | MAY 3, 2021

The differences by size and by deal strategy were starker for life insurance.

McKinsey researchers reviewed 76 life insurance deals during the same period dating back to 2007, finding TSR outperformance for product diversification coming in at 21% above industry average returns.

And in life insurance, the excess TSR outperformance of small deals over large ones was 7%.

But dealmakers do perform better than those who sit on the sidelines, the McKinsey report suggests with support from an analysis of median excess TSRs for dealmakers and non-dealmakers across all industries in the Global 2000 (the top 2,000 companies with market cap size above $2 billion on Dec. 31, 2009 that were still trading as of Dec. 31, 2019). This analysis reveals that Global 2000 median excess TSRs were negative for those companies with organic growth strategies (-0.8%) or with selective M&A strategies (-0.2%). In contrast, a “programmatic M&A” approach produced a median excess TSR of 2.1%.

Programmatic M&A is an approach where a company makes more than two small or midsize deals in a year, with a meaningful target market capitalization acquired (median of 15% for all deals taken together).

In the selective approach, a company makes two or fewer deals per year, and the cumulative value of the deals is more than 2% of the acquirer’s market capitalization.

In the organic approach, a company makes one deal or fewer every three years, and the value of each deal is less than 2%

of the acquirer’s market capitalization.

Demonstrating that outperformance over a 10-year period hinges on having a healthy “programmatic” inorganic strategy, authors Cristian Boldan, Alex D’Amico, Jay Gelb, Steven Kauderer, Kurt Strovink and Zane Williams also analyzed the strategies of companies that fell out of the Global 2000 between Dec. 31, 2009 and Dec. 31, 2019. Forty-six% of the dropouts had selective deal strategies, and 35% relied on organic growth. In contrast, only 4% of the dropouts were proponents of the “programmatic approach” the authors recommend.

Analyzing just the “Top 100 survivors” instead — global companies that remained among the Top 100 by market cap across industries over the same 10 years — the researchers found that more than half (53%) used a programmatic approach to M&A. The report also reveals that this “programmatic approach” is unpopular among the North American insurance industry’s biggest companies. Among the 40 North American insurers (life and P/C) in the Global 2000, 43% pursued organic growth strategies and half were selective acquirers. None fell into the “programmatic approach” category, while 8% pursued one-off large-scale deals.

In terms of forecasts, McKinsey researchers anticipate more insurance industry M&A this year, but they predict only modest activity for P/C insurers vs. a restructuring wave on the life side of the business.

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News & Markets

Insuring Cannabis Webinar Take Home: Carriers, Brokers Waiting on Sidelines

By Don Jergler

T

here may be many more carriers and brokers waiting on the sidelines of the insuring cannabis sector to get in than most may realize.

That was among the messages delivered by experts during Insurance Journal’s webinar in mid-April, How Insurance is Keeping up with Bustling Cannabis Sector.

The webinar took place as cannabis has lately been in the news with more states legalizing it for adult or medicinal use, large acquisition deals and companies going public. Topics covered included insuring special acquisition corporations (SPACs), new product innovation, M&A deals within the cannabis insurance sector, trends and a guess or two on when and if the federal government will greenlight cannabis.

Panelists were Charles V. Pyfrom, chief marketing officer at CannGen Insurance Services; Alan Devey, a cannabis focused producer out of Lockton Chicago who specializes in publicly traded cannabis companies; and Phillip Skaggs, assistant counsel at AAIS, who focuses on legal analysis, government relations, compliW2 | INSURANCE JOURNAL | MAY 3, 2021

ance, form development and emerging risk assessment.

Carriers

With legalization in some form sweeping across the U.S., will more carriers get into the cannabis game?

It’s a question on many minds within the segment. Skaggs specializes in cannabis insurance issues and advises carriers on the impacts of cannabis regulations, trends, and market growth. He is the architect of the Cannabis Businessowners Policy (CannaBOP) and manager of standardized cannabis coverage provisions and exclusions at AAIS. His response to the question of whether more carriers are getting interested in cannabis was a resounding “yes.”

“Carriers have been approaching my company AAIS, they want to know more,” Skaggs said. “They want to capitalize on this momentum and explore ways that they can do that. Either stepping into cannabis for the first time or aggressively expanding their existing cannabis coverage territory.”

A recent example he cited was Golden Bear Insurance Co., which in 2017 became

the first carrier in California writing in the cannabis space on an admitted basis.

“They recently reached out to us to step into Arizona, they adopted our cannabis business owners program and moved right in there, they’re ready to start writing,” Skaggs said.

Expect more moves like this from carriers in the near future.

“Other carriers have approached us and expressed interest in similarly new states, New York, New Jersey, Illinois, Michigan, all relatively new markets, but not to be outdone I think we also need to focus on the fact that regulators are taking an increasing interest in this space,” Skaggs said.

The November 2020 election yielded five newly legal states, and then with New York’s recent legalization of adult use, Virginia followed to become the 17th adultuse state and the first state in the South to legalize it.

“Cannabis is no longer a regional issue,” Skaggs said. “It hasn’t been for a few years now. But Virginia really highlights that, and should be a lesson to everyone carriers, regulators, legislators and so on that sitting back and observing the industry may no longer be an advisable and certainly not a profitable strategy. More states will follow and so will carriers.”

Many carriers are finding that a waitand-see approach “is heavy on the see at this point,” Skaggs said.

“And if they don’t start putting together cannabis coverage options, they will be seeing their competition outpace them,” he added. “So, a handful of carriers with more on the horizon are taking this opportunity capitalizing on social and legal momentum to approach cannabis more seriously.”

Pyfrom said carriers like Golden Bear, his firm, as well as most of the brokers that CannGen works with, have the “first mover” advantage by being steeped in the space before others enter.

“And so, for a lot of our brokers, and we’re one of the largest underwriting facilities in the US, this is all we specialize in, having access to all sorts of household brokers in both wholesale and retail, as well as traditional mom-and-pop and the

continued on page W4

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biggest brokers in America,” Pyfrom said.

“We’re seeing overwhelming enthusiasm across the entire spectrum of our brokers who are working with us. They’re excited about the growth in this industry. They’re excited about expansion for existing clients. And they’re excited about seeing what the insurance community is bringing together to make sure we can properly insure the operators in this space who are more risk astute these days than they ever have been, and are really looking to see this industry be elevated to that next level.”

products like this, and broader coverages.

“AAIS will be coming out with some new standardized cannabis forms later this year, a liability only program and some farm owner’s coverage endorsements,” Skaggs said. “And the market is on an expansive and upward trend from what I’ve seen. I’ve witnessed a significant increase in interest that I mentioned before from carriers and agents and regulators. And we’ll see if that persists and what it turns into. But I do have a degree of confidence that the market is improving from an insured perspective, I’m optimistic that we will indeed soon see a wider range of coverage options as competition increases.

And in some cases, less restrictive policy language and lower rates.”

‘I don’t think you can dabble on cannabis.’

SPACs

Devey specializes in insuring special purpose acquisition corporations, or SPACs. He’s been quite busy in the past year.

Devey said there were 12 active cannabis SPACs looking for targets and another 12 new issues looking to have an initial public offering during the time of the webinar.

While the demand for SPACs is big, so is the risk, he said.

“Because once you get a ticker symbol, all of a sudden you also get a target on your back,” Devey said. “My team has done a lot of work in the public cannabis market. And I’ve got a lot of research to support that.

And particularly within the SPAC cannabis world, it is probably the highest level of risk a company can take on. SPACs in and of themselves are very risky.”

Devey poured through data over the last 10 years.

“And for a frame of reference, over the last 10 years from 2009 to 2019, there were about 225 SPACs,” Devey said. “Last year, there were 248 SPACs. And this year currently, we’re already up to 186 SPACs. So, you can see the velocity of the SPAC market increasing.”

Products

AAIS came out with its well-known CannaBop policy several years ago, and successfully filed the coverage in California in 2017. Skaggs believes we’ll soon start to see the market provide insureds more W4 | INSURANCE JOURNAL | MAY 3, 2021

All-in or Nothing

The panelists agreed that any insurance professionals interested in getting into the cannabis space should considering going all-in.

“I think taking a step back and really jumping into the industry with two feet and learning from the operators who are funding lots of success in this day and age is really important,” Pyfrom said. “I don’t think you can dabble on cannabis.”

He said the most successful brokers they work with make cannabis “90, 95%” of their business.

“They know who the carriers are, they know what the forms look like,” Pyfrom said. “They know what client profile meets the respective markets in a real way to where they’re trying to find efficiencies of scale, and really go to those markets, where we can find quick quotes that are also underwritten appropriately to where the carriers are happy, the brokers are happy, and the buyers are happy.”

Difficult Lines

Despite sweeping legalization in states and the House passing the Secure and Fair

Enforcement Act (SAFE Banking), which would protect banks that do business with companies in states that have legalized cannabis for medicinal or recreational purposes from federal enforcement action, expect some lines of insurance to remain difficult for cannabis insurance buyers for some time to come.

Skaggs said “cultivation is probably going to be difficult for the foreseeable future” until federal legalization passes and the federal crop coverage programs are available, at least for outdoor growing.

“I know there’s indoor growing coverage is available currently in the market,” Skaggs said. “But from what I’ve seen, they vary significantly from policy to policy and how they’re approaching that exposure.”

Product liability and products that may end up covering long tail-risks may be another area that cannabis insurance buyers find pricey and difficult to obtain.

“I think there’s still a lot of fear of what is to come with product liability in the space a lot,” Skaggs said. “We don’t know about long-term cannabis use, what kind of warnings need to be on packages for new cannabis users, so they don’t eat the whole chocolate bar those sorts of things.

And we’re continuing to see whenever possible, that coverage can provide it on a claims-made basis.”

Devey said directors and officers, which has been difficult for cannabis operations for years, may remain a tough buy.

“From my vantage point, D&O is the biggest issue on my end, just from a sheer lack of capacity in the marketplace,” Devey said. “I mean, there’s only two carriers who are willing to take on an operator with over a billion-dollar market cap. And that just does not create a competitive environment. And as you build a tower, the product terms or the policy terms, we have to spend so much time fighting to make sure that they’re true follow form because the carriers are going to try stamp on as many endorsements and exclusions to protect themselves.”

Web Resource To listen to the full webinar, How Insurance is Keeping up with Bustling Cannabis Sector, visit https://www.insurancejournal.com/research/research/cannabis2021/.

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Liquor Liability, Special Events

Market Detail: Founders Insurance Co. (www.myweb.foundersagents. com) specializes in liquor liability and special events coverage for the hospitality industry with liquor receipts up to 100%.

Eligible risks include: live entertainment; late closings; new ventures; prior claims and more. Liquor liability features with policy limits up to policy limits up to $1 million per occurrence/$2 million aggregate; defense costs covered in addition to the policy limit; additional insured coverage available; no deductible; premium financing through our subsidiary, where available.

Available limits: Minimum $100,000, maximum $1 million Carrier: Founders Insurance Co. States: Ala., Colo., Conn., Fla., Ill., Ind., Iowa, La., Mich., Minn., Mt., N.H., N.Y., N.C., Ohio, Tenn., and Wisc.

Contact: Patrick Vaulman at 847768-2562 or e-mail: pvaulman@ foundersinsurance.com

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Market Detail: Core Programs (www.

core-programs.com) Coastal Package program is available to the following classifications: apartment buildings; apartments with mercantile; garden apartments; office buildings; shopping centers; condominium complexes; mercantile buildings and other lessors risk only commercial real estate.

Tiers 1 and 2 counties only in territories.

Available coverages include: property, general liability, crime, hired and non-owned automobile. Limits up to $20 million per location. Special form, agreed amount, replacement cost and wind coverage available. Deductibles starting at $2,500.

Flood and earthquake sub-limits of $1 million available where acceptable; general liability limits of $1 million/$2 million available; per location limit available.

No deductible. Hired and non-owned automobile, employee benefits liability available, stop gap coverage available.

Crime coverage limits up to $500,000 for employee dishonesty; $250,000 forgery and alteration; theft disappearance and destruction; robbery and safe burglary; premises burglary enhancement endorsement includes coverage tailored specifically for this class of business. Other: no age or construction type restrictions.

Available limits: As needed Carrier: Unable to disclose, non-admitted States: Conn., Dela., La., Maine, Md., Mass., Miss., N.H., N.J., N.Y., Pa., R.I., Texas, and Va. Contact: Laura Acquadro at 973-946-5085 or e-mail: lacquadro@core-programs.com.

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MAY 3, 2021 INSURANCE JOURNAL | 27

Closer Look: Healthcare & Medical Liability How Liability Immunity for Vaccinations Affects Healthcare

W

hen the race was on in earnest to develop and deploy an effective COVID-19 vaccination, much was made about the fact that pharmaceutical manufacturers

By Patrick Wraight would enjoy immunity against any liability related to the COVID-19 vaccine. Actually, the immunity that the pharmaceutical manufacturers enjoy is broader than that. It’s an immunity that extends to all levels of healthcare, and it’s not something new with COVID-19.

The PREP Act of 2005

In 2005, the H5N1 bird flu virus was spreading around the world. It mostly infected birds, but there were cases when people were infected.

The Public Readiness and Emergency Preparedness Act was written, presented to Congress, and eventually was rolled into a defense department emergency supplemental appropriations bill.

The PREP Act created a layer of protection against liability for losses related to the use of “covered countermeasures” in the event of a declaration of a public health emergency by the Secretary of Health and Human Services. In short, the Act created very broad immunity for any “covered person” for all claims for loss related to the administration of “covered countermeasures.”

What are the risks?

The pharmaceutical company is just another manufacturer. It is true that they manufacture products that have a very low tolerance for design and manufacturing errors, but they are manufac-

28 | INSURANCE JOURNAL | MAY 3, 2021

turers. Their major exposures come from defective design for a medication or vaccine and defective manufacturing processes. The defective design could include those side effects that the company didn’t discover in its testing process.

They also have the exposure of failing to properly inform intermediate users (the healthcare community) on how to properly care for and administer the vaccine. This might include letting storage facilities know that it needs to be stored at or below a certain temperature, or that it cannot exceed a certain temperature.

It also includes giving guidance on how it is best administered, to whom, and how often.

Failing to provide this guidance could expose the manufacturer to liability.

Who is covered under the PREP Act of 2005?

Most of the information

available centers on the liability immunity enjoyed by the manufacturers. It is fair to note that they have the most to lose if they are found liable for losses related to the deployment of vaccines, but they aren’t the only people covered by this Act. Take note that person (or people) as used in the context of the law doesn’t necessarily mean a human. A person can be a legal entity, other than a human or natural person.

Here’s who qualifies as a “covered person,” according to the PREP Act.

The term “covered person,” when used with respect to the administration or use of a covered countermeasure, means – (A) the United States; or (B) a person or entity that is – (i) a manufacturer of such countermeasure; (ii) a distributor of such countermeasure; (iii) a program planner of such countermeasure; (iv) a qualified person who prescribed, administered, or disINSURANCEJOURNAL.COM

pensed such countermeasure; or (v) an official, agent, or employee of a person or entity described in clause (i), (iii), (iii), or (iv).

This definition then makes every person (including the United States) that is involved in the production, approval, prescribing, offering, or use of the products covered by this Act. This generally makes sense because if we are going to provide immunity at the top of the production chain, the rest of the chain should enjoy similar immunity. If the manufacturer cannot be held liable for the product, but those who are asked to dispense the product could be, that creates a huge exposure that communicates down to the end of the chain — the nurse, doctor, pharmacist, or anyone else who administers the product. That is not good risk management.

Broad Immunity

How broad is the immunity?

Going back to the Act, we find this short sentence.

Subject to the other provisions of this section, a covered person shall be immune from suit and liability under Federal and State law with respect to all claims for loss caused by, arising out of, relating to, or resulting from the administration to or the use by an individual of a covered countermeasure if a declaration under subsection (b) has been issued with respect to such countermeasure.

It starts with all claims for loss caused by the covered countermeasure. That encompasses the direct use of the countermeasure (vaccine).

These are claims that come out of someone receiving the vaccine. It includes any known INSURANCEJOURNAL.COM

or unknown side effects that the individual experiences. It also includes any losses that might be related to errors made in administering the shot.

That ranges from improper storage to improper training of the person on how much to administer.

The next phrase is arising out of. This is a bit more troubling because arising out of can mean any sort of causal connection to the event. If something happens that can be remotely tied back to the vaccine, there is immunity. That tells us that if someone has an adverse reaction to the vaccine in six months and that adverse reaction can be potentially tied back to the vaccine, there is full immunity to all of the involved parties.

The next two phrases are relating to and resulting from. These phrases bring us back around to the idea that if someone suffers a loss (as

defined in the Act) that could possibly, in any way, at any time, through any possibility of something bad happening to anyone at all, ever. You get the point. This is supposed to be as close to absolute immunity as anyone could enjoy related to the production of a medical product.

‘Consider the risk management implications of this immunity. For the medical community, they finally have one part of their lives that is safe from a medical malpractice suit.’

one part of their lives that is safe from a medical malpractice suit. With this immunity in place, doctors can feel free to recommend vaccines and hospitals can feel free to administer them. This is one place in medicine where you can count on the doctor to give you their most honest opinion without the fear associated with offering a medical opinion that could possibly be wrong — and then they would have to call their medical malpractice carrier.

From a personal standpoint, information always helps in our personal risk management.

This is intended to provide some additional information to inform risk management decisions for businesses and individuals.

Why are we bringing it up?

Consider the risk management implications of this immunity. For the medical community, they finally have

Wraight, CIC, CRM, AU, is director of Insurance Journal’s Academy of Insurance. Email: pwraight@ijacademy. com.

MAY 3, 2021 INSURANCE JOURNAL | 29

Idea Exchange: Legal How COVID Impacts Insurance in Unforeseen Ways

H

aving recently marked the oneyear anniversary of the COVID-19 pandemic, it seems like an opportune time to consider how the pandemic has impacted the insurance industry.

While business interruption (BI) lawsuits (totaling more than 1,500 as of March 31, 2021) have dominated the headlines, the pandemic’s effects stretch far beyond BI claims. Indeed, the pandemic has impacted virtually all aspects of the industry and those impacts will likely alter the insurance landscape for years to come.

Here are some of the less-publicized, but nonetheless significant, ways in

By Daryn Rush which COVID-19 has affected the business of insurance.

Auto and Other Lines

In the personal auto line, claim frequency plummeted due to the lockdown.

Anyone who ventured and Greg Capps out during the first six months of the pandemic experienced largely abandoned streets and highways that often gave off a post-apocalyptic vibe. Those open roads, however, apparently encouraged many to drive faster and less carefully. Thus, while claim frequency dropped dramatically, claim severity increased. According to Insurance Information Institute estimates, for example, property damage frequency was down more than 30% while severity was up by almost 20%.

Abrupt changes to driving behaviors (people staying home and not driving to/from school or work) also impacted personal auto premiums. Drivers across the country received premium rebates because of the dramatic reduction in driving. The American Property Casualty 30 | INSURANCE JOURNAL | MAY 3, 2021

Insurance Association estimates that insurance companies have refunded more than $14 billion to policyholders. But regulators, consumer advocates and class action attorneys claim that is not enough.

California’s Insurance Commissioner is pushing carriers to double the refunds they have made, and he is requiring them to show how they intend to provide additional refunds. A number of insurers have also been hit with proposed class action lawsuits claiming that they unfairly profited from the pandemic.

Other lines of coverage experienced drastic reductions in premium as a result of lockdowns. Workers’ compensation, travel, event cancellation and trade credit were among the lines hit hardest. And while reduced claims helped offset the impact of reduced premium in some lines, like workers’ comp, other lines suffered the double whammy of reduced premiums and increased claims. In the global event cancellation market, which generated average annual premiums of $500-$600 million pre-pandemic, COVID-related losses could reach as high as $6 billion.

One event alone – the 2020 Summer Olympics in Tokyo – could produce losses of $2 billion to $3 billion if the Olympic Games, rescheduled for Summer 2021, are ultimately canceled.

How Behaviors Changed

COVID lockdowns have also led to some interesting, but entirely logical, changes in human behavior. Dog ownership, for example, spiked in 2020. While that could provide growth opportunities for pet insurance, the industry might also see an increase in dog-related liability claims, particularly with so many first-time owners taking hold of the leash. In 2019, dog bite and other dog-related injuries resulted in nearly $800 million in losses for homeowners’ insurers. The industry may see a bump in losses in 2020 and 2021.

Carriers are likely to see new COVID-

related products liability claims. From hand sanitizers and disinfectants to masks and other protective equipment, manufacturers and distributors sold many products that were claimed to prevent or reduce the risk of infection. COVID tests and various treatments were also heavily marketed to consumers. To the extent plaintiffs’ attorneys can develop evidence showing that these products did not function as promised, were defective, did not contain proper warning, or, perhaps were fraudulently misrepresented, products liability suits will proliferate.

The pandemic has affected the life, health and disability business in many ways. Obviously, life insurers have experienced an increase in claims due to “excess deaths” attributed to COVID-19.

But lines such as long-term care and disability have been impacted as well.

Long-term care insurers have experienced reduced claims (due, in part, to increased deaths) and a higher rate of terminations for such insurance as economic hardships have reduced disposable income. In the disability space, rising COVID-related claims were offset by decreased claims arising from injuries and surgeries as policyholders hunkered down at home INSURANCEJOURNAL.COM

‘The pandemic has been a truly unique black swan event that has affected the industry in ways that no one imagined and which will likely change the way insurers do business for years to come.’

and canceled medical appointments. And scientists and medical professionals are still unsure about the potential long-term effects of COVID. Anecdotal evidence indicates that some COVID patients have experienced muscle pain, headaches and brain fog months after testing positive.

If such chronic symptoms persist and become more widespread, health and disability lines could be impacted. Chronic symptoms would likewise affect workers’ comp.

How Underwriters Changed

The pandemic has also changed the way insurers do business, from underwriting to claims. While digitization was an industry priority before COVID, the pandemic accelerated the transition. As personal interaction was cut off, insurance providers scrambled to retain business and expand market share through virtual communications. On the claims side, carriers experienced similar obstacles. On-site accident investigations, independent medical exams, home inspections and in-person interviews became difficult if not impossible. Consequently, alternative approaches were employed for both underwriting and claims, and tools such INSURANCEJOURNAL.COM

as risk modeling, drones and mobile apps have taken on greater importance.

As insurance professionals and their customers get used to the new digital reality, it’s unlikely the industry can go back to the old ways of doing business.

Finally, the pandemic has forced the industry to re-examine its role in future pandemics or other “black swan” events.

Insurers are an easy target in crises, and the pandemic was no exception.

Regulators, consumer advocates and, to some extent, the press, have jumped on carriers for rejecting BI claims. They focus on the plight of small businesses that have been devastated by COVID and portray carriers as relying on cryptic policy language to avoid paying claims. While the courts (at least in the U.S.) have largely come down on the side of insurers, the potential reputational harm to the industry cannot be discounted.

Carriers need to reconsider marketing materials and policy language so that it is very clear what coverage they are and are not providing. Insurers must also consider their role as global corporate citizens and help develop solutions for future events.

Chubb, for example, has proposed a private-public partnership program to protect

small businesses in the event of another event resulting in widespread lockdowns.

Lloyd’s of London is also developing a program, ReStart, which is similarly designed.

While the industry cannot solve all of the devastating effects of a pandemic, it can, and should, play an active role.

Nearly every industry has experienced dramatic effects of the pandemic, and the insurance industry is no exception.

For the industry, COVID’s impact has not been limited to the exposures that typically arise from a catastrophe. It has been a truly unique “black swan” event that has affected the industry in ways that will likely change the way insurers do business for years to come. The industry appears well positioned to deal with the impacts of the pandemic and play an active role in developing solutions for future global catastrophes.

Rush is chair of the reinsurance group at White and Williams LLP. He has represented domestic and foreign insurers and reinsurers in arbitration, mediation and litigation. Capps is a partner in insurance coverage and bad faith group at White and Williams. He has a commercial litigation and arbitration practice focusing on complex long-tail insurance coverage, environmental coverage and reinsurance matters.

MAY 3, 2021 INSURANCE JOURNAL | 31

Spotlight: Medical Liability Rising Liability Premiums Adding Stress on Medical Practices: AMA Study

M

edical liability insurance premiums have begun an upward trend after holding more or less steady during the past decade, according to a new analysis from the American Medical Association (AMA). In 2020, during the height of the COVID-19 pandemic, more than 30% of premiums reported on a survey of liability insurers increased from the previous year, the highest percentage since 2005.

For a second consecutive year there has been an exceptional surge in the percentage of premiums with a year-to-year increase.

Between 2010 and 2018, the share of premiums that increased maintained a somewhat stable pattern, ranging from 12% to 17%. In 2019, that proportion almost doubled to 26.5% and went up again in 2020 to 31.1%.

According to the AMA analysis, “the responsiveness of premiums to changes in their determinants and external factors takes considerable time in the medical liability insurance market. Therefore, although some 2020 premiums may have 32 | INSURANCE JOURNAL | MAY 3, 2021

6

Exhibit 2. States Where Largest Increases in Liability Premiums were Reported, 2019-2020 % of Comparisons that were Increases >=10%

Size of Largest Increase

% of Comparisons that were Increases

Comparisons (N)

Kentucky

29.6%

24.3%

55.6%

27

South Carolina

27.8%

10.8%

50.0%

18

Maryland

18.8%

20.0%

18.8%

48

Nebraska

16.7%

37.2%

100.0%

18

Oregon

16.7%

26.5%

33.3%

18

Montana

16.7%

10.0%

25.0%

12

Georgia

14.8%

23.0%

44.4%

27

Missouri

14.8%

22.0%

14.8%

27

New Hampshire

13.3%

15.0%

20.0%

15

Illinois

11.9%

15.0%

64.3%

126

Michigan

11.6%

10.0%

47.8%

69

Texas

9.2%

24.9%

27.6%

87

North Carolina

6.7%

12.7%

20.0%

15

Virginia

1.3%

27.6%

39.7%

78

State

Notes: 1.

2.

The unit of observation is a comparison of an insurer's 2019 and 2020 premiums in a state (or sub-state) and specialty.

States are included if they had at least one increase of 10% or more. The ranking of states is based on the share of comparisons that were increases of at least 10%.

INSURANCEJOURNAL.COM

been set after the onset of the [COVID-19] pandemic, it was still too early for them to be affected by it.”

“Increases in medical liability premiums compound the economic stress on medical practices as the COVID-19 pandemic resulted in significant reductions to patient volume and revenue, and higher expenses for scarce medical supplies,” said AMA President Susan R. Bailey, M.D. “Practice revenue has not fully recovered as the pandemic has stretched on and a protracted upward trend in medical liability premiums will threaten the viability of many practices that already face a difficult road to recovery.”

The AMA analysis identified the 14 states that had premium increases of 10% or more.

Those states and their shares of reported premiums that increased by such magnitude in 2020 are: Kentucky

(29.6%), South Carolina (27.8%), Maryland (18.8%), Nebraska (16.7%), Oregon (16.7%), Montana (16.7%), Georgia (14.8%), Missouri (14.8%), New Hampshire (13.3%), Illinois (11.9%), Michigan (11.6%), Texas (9.2%), North Carolina (6.7%), and Virginia (1.3%).

The AMA report also finds striking differences in premiums by geography. For example, in 2020 some physicians in OB/ GYN faced base premiums ranging from $49,804 in Los Angeles County, Calif., to $205,380 in Miami-Dade County, Fla. “Keeping medical liability premium growth in-check is imperative to ensure patient access to care is not jeopardized by unaffordable liability insurance costs that make it impossible for physicians to remain in practice,” said Dr. Bailey.

“This concern is particularly pressing given the negative impact that the COVID-19 pandemic has had on access and

practice viability, as many physicians have had to suspend patient visits or elective procedures, and some have had to close their practices, ” Dr. Bailey added.

Together with state medical societies, the AMA is pursuing both traditional and innovative medical liability reforms to preserve premium stability and meet the needs of millions of Americans who need affordable, accessible medical care. This includes limited and targeted emergency protections for physicians who continue to treat patients during the pandemic without adequate resources and support.

The newly released AMA analysis on medical liability insurance premiums is based on an annual survey of professional liability insurers conducted by the Medical Liability Monitor (MLM).

The MLM reports base premiums for three specialties in each state where the responding insurers provide coverage.

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MAY 3, 2021 INSURANCE JOURNAL | 33

Idea Exchange: Is It Covered?

Logic & Language and Forms & Facts

Top 5 Certificate of Insurance Questions

O

ver the past 20-plus years, I have answered many hundreds of questions about certificates of insurance (COIs). The first webinar I did on COIs sold out 1,000 connections and a second session had to be scheduled. About 7,000 people attended those two sessions.

Hundreds more have attended other webinars and seminars on the subject over the past decade, perhaps as many as 10,000 people total. And STILL I get questions

By Bill Wilson about COIs. The purpose of this month’s column is to share what I believe are the five COI questions I’ve responded to most often. I haven’t kept a log, so this is just a gut feeling. I’ll save the most frequent and probably important question for last. When I say “certificate” or “COI,” I’m referring to the ACORD 25 liability certificate.

Should agents follow up with certificate holders on cancellations?

Most errors and omissions (E&O) experts agree that agents shouldn’t even follow up with insureds on cancellations, so why would an agent follow up with a certificate holder? Cancellation is a contractual right with certain obligations and, in the case of most policies, rights are limited to the parties in the contract — insured and insurer.

It would be the rare policy that authorizes cancellation by the agent.

Depending on how one interprets various state COI laws, regulations, and insurance department directives, it may not be legal for an agent to provide notice of cancellation to a certificate holder.

But, even if it’s legal, it’s not necessarily

a good idea because it may create in the mind of the certificate holder that he or she has contractual rights under the policy.

Anyone who makes a business decision to provide notice had better follow the Invariable Practice Rule of “One Way, All the Time, By Everyone.” If you provide notice to one, do you provide notice to all? How this is handled, including any exceptions, should be spelled out in the agency’s written procedures manual and enforced.

Should agents issue “blank” or “sample” certificates of insurance?

Easy answer: No. Most often, the insured requests one of these to cut the red tape and speed up issuance. In other words, the insured is likely going to be handing out the “blank” or “sample” COI to anyone willing to accept it.

Only the agency, not the insured, is authorized to issue a COI on behalf of the insurer. In addition, I’ve seen some insurer COI guidelines that specifically prohibit this practice.

Should agents send copies of certificates to insurers?

In the words of Double Deuce philosopher Dalton, “Opinions vary.” Some feel that, since the ACORD 25 no longer provides any explicit notice of cancellation, that this practice is no longer necessary.

Perhaps, but that doesn’t mean it’s not a good idea.

Some non-ISO automatic additional insured endorsements or policy provisions are triggered by the issuance of a COI and such status is not granted without notice to the insurer. Do you represent insurers with AI endorsements like this? If so, do you know which ones?

An invariable practice of sending COIs to all insurers means you don’t have to remember who’s who.

But there are at least two better reasons for copying insurers on COIs. First, insurers need to see what their agents are saying on COIs. I’ve seen statements on COIs that arguably misrepresent policy terms and create liabilities for the insurer, insured, and agent. Insurers should at least engage in quality control (QC) sampling to minimize this exposure and educate the agency force.

Second, sometimes it is not easy to determine where or when a COI error occurred. I’ve seen court cases where insurers attempted to absolve themselves of any liability by asserting that they never saw the COI. Two cases that come to mind are Marlin v. Wetzel Country Board of Education, 569 S.E.2d 462 (WV Ct. App., 2002) and Erie Insurance Group v. National Grange Mutual Ins. Co. (NY Sup. Ct., 2009).

What policy limits can or should an agent show on a certificate?

Your insured has a $2 million per occurrence commercial general liability (CGL) limit and enters into a contract that only requires a $1 million limit. The insured only wants you to show $1 million on the COI. Or the insurance requirement in a contract is $2 million and the insured meets that with a $1 million CGL policy and a $5 million umbrella or excess policy, of course, only wanting you to show $1 million as the excess limit.

The ACORD Forms Instruction Guide for the ACORD 25 says, “Enter limit: The general liability, each occurrence limit amount.”

In other words, you show the actual policy limit even if it is greater than the minimum contract requirement.

Remember, a COI is a representation of the insurance contract, not the contract with a third party. Nor does it represent

only what is available by endorsement to an additional insured or to another party under the contractual liability coverage.

Besides, the indemnity agreement in the third-party contract is likely unlimited, so those “extra” limits might be attached at some point.

What can or should an agent enter in the “Description of Operations” field?

Aside from E&O claims based on the agent’s failure to procure the additional insured status indicated on the COI, this field gets agents into trouble more often than just about any COI activity.

Do not put anything in this field not prescribed by the ACORD Forms Instruction Guide (FIG). Incorporate the FIG into your written procedures manual and follow its instructions.

The best advice I can give you is, whenever possible, don’t enter anything into this field. But, if you must, be wary

Finally, workers’ comp insurance is as easy as pie.

of language like “[Entity] IS an additional insured as per construction contract.” I’d need an entire column to explain that one.

Be wary what you say and how you say it.

All of that being said, I understand the pressure sometimes placed on you to use certain language. Doing so is a business decision.

You can put anything you want on the COI as long as it’s not patently illegal, doesn’t misrepresent the terms of the policy, and doesn’t violate your agency/ company agreement or related documents.

Again, just be mindful of what you say and how you say it as it might be interpreted by the certificate holder and gauged against your E&O policy limit and deductible.

Wilson, CPCU, ARM, AIM, AAM is the founder and CEO of InsuranceCommentary.com and the author of six books, including “Why Insurance Doesn’t Cover the COVID-19 Pandemic,” available on Amazon.

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MAY 3, 2021 INSURANCE JOURNAL | 35

2021 Workers’ Compensation Directory

Searching for a workers’ compensation market? Look no further than Insurance Journal’s 2021 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: Brian Guthrie Phone: 312-216-2802 Email: brian.guthrie@7710insurance.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 ■ Admitted Status: Admitted AAU, A division of USG Insurance Services Contact: Lisa Esselstyn Phone: 724-754-9078 ; Fax: 724-265-5751 Email: lesselstyn@aauins.com Website: www.aauins.com ■ Markets Offered: Standard, Hazardous & Excess Workers’ Comp, USL&H, Staffing Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: Varies ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: 20+ carriers

36 | INSURANCE JOURNAL | NATIONAL MAY 3, 2021

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 2021 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.

Advisor Insurance Brokers, LLC Contact: Hanadi Hussein Phone: 713-688-1660 ; Fax: 713-688-1662 Email: Hanadi@advisorus.com Website: www.advisorbrokers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, CNA, Employers, Guard, Hartford, Travelers, AmTrust

Agency Resources Contact: MaryEllen Mazzo Phone: 973-315-0716 ; Fax: 610-537-2035 Email: maryellen.mazzo@agencyresources.com Website: www.agencyresources.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted

Agency Underwriters Contact: Darren Thompson Phone: 619-333-2500 or 818-825-6181 Email: info@agencyunderwriters.com Website: www.agencyunderwriters.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: 32 States ■ Admitted Status: Admitted Align General Insurance Agency, LLC Contact: Mike Tudman Phone: 619-333-2500 or 818-825-6181 Email: info@aligngeneral.com Website: www.aligngeneral.com ■ Markets Offered: Workers’ Comp - MODS above 1.05 ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $40,000 with $75,000 Artisan Contractors ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: CA ■ Admitted Status: Admitted ■ Carriers Represented: Call For Details

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American Management Corporation Contact: Todd Flagg Phone: 501-932-5809 Email: todd.flagg@amcins.com Website: www.amcinsurance.com ■ Markets Offered: USL&H, Managed Care, Excess Workers’ Comp, 24 Hour Policy, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1,000,000 or higher ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers: Berkely, AmTrust, Guard, Applied, Amerisafe, AIG, Crum and forster, PLM, ALU American Team Managers Insurance Services Contact: Jennifer Truong Phone: 714-414-1238 ; Fax: 714-414-1299 Email: jennifer@atminsurance.com Website: www.atminsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $500 ■ Limits: $1,000,000/$2,000,000 ■ Brokered Business: Accepted ■ States Entered in: AL AR AZ CA CO GA IA IL KS KY LA MD MI MS NC NE NM NY OK PA SC TN TX VA ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust, Republic Indemnity, Travelers, AIG, Employers, Markel, Cornerstone, Applied, BBSI AMERISAFE Contact: Customer Service Phone: 800-897-9719 Email: marketing@amerisafe.com Website: www.amerisafe.com ■ Markets Offered: Hazardous Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: Most States AmeriTrust Group Contact: Phillip J. Gajewski, CPCU, ARM Phone: 800-482-2726 Email: underwriting@ameritrustgroup.com Website: www.ameritrustgroup.com ■ Markets Offered: Workers’ Compensation, Excess Workers’ Compensation, Specialty/Niche Programs ■ 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: Star Ins. Co, Williamsburg National Ins. Co, Ameritrust Ins. Corp, ProCentury Ins. Co. AMIS/Alliance Marketing & Insurance Svcs, LLC Contact: Sean Nowell Phone: 800-843-8550 ; Fax: 800-573-8550 Email: snowell@amiscorp.com Website: www.amisinsurance.com ■ Markets Offered: Workers’ Comp for Private Investigators Ins. Adjusters, Security Guards & Alarm Co’s ■ Phone Inquiries: Accepted ■ Minimum Premium: $297 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Employers INSURANCEJOURNAL.COM

Amwins - 120+ Offices Nationwide See Website for Locations, HQ - Charlotte, NC Contact: Maureen Caviston Phone: 203-388-2610 Email: maureen.caviston@amwins.com Website: www.amwins.com ■ Markets Offered: Workers’ Comp, Excess Workers’ Comp, Non-Subscriber Programs for Texas Employers, DBA & MEL ■ Phone Inquiries: Accepted ■ Minimum Premium: $100,000 ■ Limits: Various ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: We have strategic partner- ships with many carriers. Inquire for details.

Amwins Program Underwriters Contact: Matt McCue or Dan Curran Phone: 717-214-7622 (Matt) ; 603-334-3027 (Dan) Email: matt.mccue@amwins.com Email: daniel.curran@amwins.com Website: www.amwins.com/apu ■ Markets Offered: Workers’ Comp, Healthcare Workers’ Comp, Recycling Workers’ Comp, Multiple Classes ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by state ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Various AM Best A- Rated or Higher Amwins Specialty Casualty Solutions Contact: Terrence Butler Phone: 312-601-9295 Email: terrence.butler@amwins.com Website: www.amwins.com ■ Markets Offered: Workers’ Comp, Excess WC, Buffer WC, Healthcare, PEO/Alternative Staffing WC, Public Entity WC, Transportation WC, Resorts WC, Guaranteed Cost, Loss Sensitive, Rating Plans, Multiple Classes ■ Phone Inquiries: Accepted ■ Minimum Premium: Various ■ Limits: Various ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Various AM Best A- Rated or Higher Apex Insurance Services Contact: Robert Hughes Phone: 210-812-5658 ; Fax: 210-340-8986 Email: hughes@apexinsurance.com Website: www.apexinsurance.com ■ Markets Offered: Excess WC, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Statutory and high excess ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Various National & Regional Carriers

Applied Underwriters, Inc.

Phone: 877-234-4450 ; Fax: 877-234-4452 Email: sales@auw.com Website: www.auw.com ■ Markets Offered: Workers’ Compensation ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 annual ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Alliances With: Promesa Health For more info, check out our ad on pages 2 & 3 (National) & on the Back Cover.

Applied Underwriters designs workers’ compensation insurance and risk management solutions for businesses across the U.S. Other markets offered include: EPLI, Commercial Auto, Primary & Excess Liability, Homeowners – Including California Wildfire & Gulf Region Hurricane, Fine Art & Collectibles, Structured Insurance, Financial Lines, Environmental & Pollution Liability, Shared & Layered Property, Fronting & Program Business, Reinsurance.

Arrowhead General Insurance Agency, Inc.

Contact: Marketing Dept.

Phone: 800-669-1889 ; Fax: 619-881-8695 Email: MarketingInfo@ArrowheadGrp.com Website: www.ArrowheadGrp.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by Carrier ■ Brokered Business: Accepted ■ States Entered in: AZ CA NV ■ Admitted Status: Admitted ■ Carriers Represented: Multiple “A” rated carriers Artex Risk Solutions, Inc. Contact: Christine Mikel Phone: 630-438-1560 Email: Christine_Mikel@artexrisk.com Website: www.artexrisk.com ■ Markets Offered: Excess WC, Workers’ Comp, Guaranteed Cost & Alternative Risk (Captives) ■ Phone Inquiries: Accepted ■ Minimum Premium: $100,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Several All “A” rated or higher Atlas General Insurance Services Contact: Mark Williams, EVP of Marketing Phone: 858-724-5012 Email: mark@atlas.us.com Website: atlas.us.com ■ Markets Offered: Workers’ Comp with broad underwriting appetite.

■ Phone Inquiries: Accepted ■ Minimum Premium: Minimums vary per state, new ventures accepted.

■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple exclusive“A” rated carriers and more!

MAY 3, 2021 INSURANCE JOURNAL | NATIONAL | 37

2021 Workers’ Compensation Directory

Berkshire Hathaway GUARD Insurance Companies Phone: 570- 825-9900 ; Fax: 570- 823-5930 Email: csr@guard.com Website: www.guard.com ■ Markets Offered: Workers’ Comp & related Property & Casualty lines.

■ Phone Inquiries: Accepted ■ Minimum Premium: No Standard Minimum ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: Nationwide ■ Alliances With: An internal affiliate and some other vendors that vary by state.

Berkshire Hathaway Homestate Companies Contact: Customer Service Phone: 888-495-8949 ; Fax: 415-675-5482 Email: marketing-wc@bhhc.com Website: www.bhhc.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted Boston Insurance Brokerage, LLC Contact: Keith Driscoll – 617-556-7031 Contact: Cara MacDonald – 617-556-7038 Contact: John Roderiques – 617-556-7036 Website: www.bostonbrokerage.com ■ Markets Offered: Guaranteed Cost, Loss Sensitive, Excess Workers’ Comp, Rating Plans ■ Phone Inquiries & Brokered Business: Accepted ■ Minimum Premium: $1,000 | Limits: Standard ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AIM Mutual, Atlantic Charter, Amerisafe, AmTrust, Axiom, AIG, Crum & Forster, Employers, FirstComp, Guard, Hartford, Munich RE (V3), RTW, Republic Indemnity, Sentry, Tangram (Prosight) & Travelers.

Brownyard Group Contact: Jennifer Brownyard Phone: 800-645-5820 ; Fax: 631-666-5723 Email: info@brownyard.com Website: www.brownyard.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: EL up to $1M ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers: Arch Insurance Company, Employers

Builders & Tradesmen’s Ins. Services, Inc.

Contact: Nick DiNapoli Phone: 916-772-9200 ; Fax: 916-772-9292 Email: ndinapoli@btisinc.com Website: www.btisinc.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Not Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmTrust, Clear Spring, CNA, Employers, Great American, Cornerstone, ICW, Liberty Mutual, Pie, Travelers, Zenith For more info, see our ad on page 7 (National).

Charity First Insurance Services, Inc. Contact: Frank Tarantino Phone: 415-536-4037 ; Fax: 415-536-4033 Email: frank_tarantino@charityfirst.com Website: www.charityfirst.com ■ Markets Offered: Workers’ Comp, Nonprofits and Social Services ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted in most states ■ Carriers Represented: Nova, Berkshire Hathaway, ICW (California Only)

BreckComp & Contractors Workers’ Comp Programs of Blue River Underwriters Email: success@blueriveruw.com Website: www.blueriveruw.com ■ Markets Offered: Monoline Workers’ Comp - close to 400 eligible class codes for BreckComp and nearly 80 eligible contractor class codes ■ Phone Inquiries & Brokered Business: Accepted ■ Limits: Statutory ■ States: All States except Monopolistic & DE ■ Admitted Status: Admitted ■ Carriers Represented: AM Best A Rated Carriers

CID Insurance Programs, Inc. Contact: Lexi Johnson Phone: 800-922-7283 ; Fax: 619-593-2008 Email: Lexi@cidinsurance.com Website: www.cidinsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $350 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: AZ CA CO ID MD NE NM NV OR PA TN TX UT ■ Admitted Status: Admitted ■ Carriers Represented: Over 25 insurance companies

Breckenridge Insurance Services Email: partner@breckis.com Website: www.breckis.com ■ Markets: Guaranteed cost, excess for self-insureds, large deductible, alternative markets, any/all classes.

■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 - 15,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, Amerisafe, AmTrust, BerkleyNet, Berkshire Hathaway, First Comp, Guard, Hartford, ICW, RTW, Safety National, Sentry, StarStone National, V3 Insurance Partners and more.

Cluett Commercial Insurance Agency, Inc. Contact: Michelle Dempsey, Senior Underwriter, Workers’ Comp Division Manager Phone: 800-926-6771 ext. 124 ; Fax: 781-585-4180 Email: mdempsey@cluettinsurance.com Website: www.cluettinsurance.com ■ Markets Offered: Workers’ Comp , 24 Hour Policy, Excess Workers’ Comp, USL&H, PEO ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: No Limits ■ Brokered Business: Accepted ■ States Entered in: All except Monopolistic or AK, HI ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Over 30 carriers represented.

38 | INSURANCE JOURNAL | NATIONAL MAY 3, 2021

Commercial Sector Insurance Brokers Contact: Jake Roberts - 205-328-3982 Email: jroberts@comsectorins.com Contact: Chandler Diercks - 205-776-1615 Email: cdiercks@comsectorins.com Website: www.comsectorins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: $1M/$1M/$1M ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Chartis, Am Trust, Crum & Forester, Guarantee Insurance Co., Munich, Zurich

Commercial Sector is a National Wholesaler. We specialize in assisting retail agents solve P & C problems, including Workers’ Comp.

Community Association Insurance Solutions, LLC Contact: Gary J. Deck, Director of Sales and Distribution, Managing Partner Phone: 916-212-8310, 888-833-4158 ; Fax: 888-833-4159 Email: gary@mgalive.com Website: www.caislive.com ■ Markets Offered: Workers’ Comp If-Any & Payroll for Community Associations ■ Phone Inquiries: Accepted ■ Minimum Premium: $280 and up – Depending on the state ■ Limits: Statutory/up to $1Mil/Up to $5Mil ■ Brokered Business: Not Accepted ■ States Entered in: All except ND OH WA WY ■ Admitted Status: Admitted ■ Carriers Represented: PMA Companies/Various Comp Solutions Network, Inc. Contact: Dianne Favro Phone: 713-690-3500 Ext. 101 ; Fax: 713-690-8484 Email: diannef@compsolutionsnetwork.com Website: www.compsolutionsnetwork.com ■ Markets Offered: Monoline Workers’ Comp, Non- Subscriber Programs for Texas Employers ■ Phone Inquiries: Accepted ■ Minimum Premium: $250 ■ Limits: $500K to $10M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers (WC:) Accident Fund, American International, Amerisafe, AmTrust, Berkshire Hathaway, Service Lloyds, Midwest Ins., Markel (First Comp), Texas Mutual, Incline Casualty Ins., Bridgefield Casualty, Retailers Casualty, ICW Group CompWest Insurance Company Contact: Kristi Houston Phone: 714-641-9570 Email: kristi.houston@compwestinsurance.com Website: www.compwestinsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $1,000 ■ Limits: No Ex-Mod or Premium Limits ■ Brokered Business: Not Accepted ■ States Entered in: AZ, CA, CO, ID, NV, OR, UT ■ Admitted Status: Admitted ■ Alliances With: AF Group, California Manufacturers & Technology Association (CMTA) INSURANCEJOURNAL.COM

Continental Brokers, Inc. Contact: Collier Simpson Phone: 866-386-4136 ; Fax: 601-898-4793 Email: cs@continentalbrokers.biz Website: www.continentalbrokers.biz ■ Markets Offered: Health Insurance, Managed Care, HMO, Short Term Medical, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: CNA, Hartford, Assurant, BCBS (some states) United HealthCare, Colonial Continental Underwriters, Inc. Contact: C. Preston Herrington, III Phone: 804-643-7800 ; Fax: 804-643-5800 Email: preston@contund.com Website: www.contund.com ■ Markets Offered: Workers’ Comp for the forestry and wood working industry ■ Phone Inquiries: Accepted ■ Minimum Premium: N/A ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple Costanza Insurance Agency, Inc. Contact: Brian Costanza Phone: 800-346-0942 ; Fax: 972-991-2139 Email: b.costanza@cia-tx.com Website: www.costanzainsurance.com ■ Markets Offered: Workers’ Comp, GL, Comm Auto, Crime, EPL, EBL, Umbrella ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Carriers Represented: Zurich Insurance Co. CRES Insurance Services Contact: Alita Hawksworth Phone: 858-618-1648 Email: info@cresinsurance.com Website: www.cresinsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $750 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted Don R. Jensen & Company Contact: Don R. Jensen & Company Phone: 630-734-3240 ; Fax: 630-734-3250 Email: apps@drjco.com Website: www.drjco.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: None ■ Brokered Business: Not Accepted ■ States Entered in: All States except Monopolistic & AK, HI ■ Admitted Status: Admitted ■ Carriers Represented: Multiple AM Best “A” Rated Carriers

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Empire Underwriters, LLC

Contact: Underwriting Toll Free: 800-758-8113 Phone: 813-448-9300 ; Fax: 813-448-9310 Email: quotes@empireunderwriters.com Website: www.empireunderwriters.com ■ Markets Offered: Standalone Workers’ Comp, Truckers Workers’ Comp, Staffing Workers’ Comp, Large Deductible Workers’ Comp, Alternative Workers’ Comp, PEO ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Not Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted & Non-admitted ■ Carriers: ACE/Chubb, AIG, Century Surety, Clear Springs, Benchmark, Berkshire Hathaway, Guard, ICW, Kinsale, Lloyds of London, RLI, RTW, Seneca Specialty, Sompo, Starstone & many others.

Empire Underwriters is National MGA, Insurance Wholesaler, and Excess & Surplus Lines facility. Our organization is dedicated to the success of agents and brokers nationwide and featuring Online Indications and Quotes for several products.

FFVA Mutual Insurance Co.

Contact: Angie Helgeson Phone: 800-346-4825 ; Fax: 321-214-0220 Email: Angie.Helgeson@ffvamutual.com Website: www.ffvamutual.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: Varies by Industry ■ Limits: Statutory ■ Brokered Business: By Appointment ■ 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, Benchmark, Berkshire Hathaway, Berkley Net, Cimarron, Protective)

Frank Winston Crum

Contact: Tyler Huerkamp Phone: 866-218-4219 x 1426 ; Fax: 727-450-7911 Email: wc@fwcrum.com Website: www.frankwinstoncrum.com ■ Markets Offered: Workers’ Compensation, General Liability 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 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: Cosmo Preaito Phone: 914-694-6000 Ext. 203 ; Fax: 914-694-6004 Email: cosmop@friedlandergroup.com Website: www.friedlandergroup.com ■ Markets Offered: Workers’ Comp & NYSIF Safety Groups ■ Phone Inquiries: Accepted ■ Minimum Premium: $3,500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: NY & Most States ■ Admitted Status: Admitted ■ Alliances With: NYS Insurance Fund, Employers Ins. Co. & Amtrust FUBA Workers’ Comp Contact: Stacey Butler Phone: 888-262-4483 ; Fax: 888-871-7474 Email: fubawc@fubaworks.com Website: www.fubaworkerscomp.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted provisionally ■ States Entered in: FL Gateway Specialty Insurance Contact: Anthony Vellutato Phone: 877-977-4474 ; Fax: 610-254-1855 Email: info@gatewayspecialty.com Website: www.gatewayspecialty.com ■ Markets Offered: Workers’ Comp for Nonprofits ■ Phone Inquiries: Accepted ■ Brokered Business: Accepted ■ States Entered in: 33 States ■ Admitted Status: Admitted

MAY 3, 2021 INSURANCE JOURNAL | NATIONAL | 39

2021 Workers’ Compensation Directory Gorst & Compass Insurance

ICW Group Insurance Companies Contact: Jessica Northrup Phone: 800-877-1111 Email: enterprisemarketing@icwgroup.com Website: www.icwgroup.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $3,500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: CA FL GA IA IL IN KY MD MI MN MO NC NJ NV OK PA SC TN TX VA WI ■ Admitted Status: Admitted

Grand General Agency Contact: Andy, Brandi or David Phone: 800-869-2022 ; Fax: 888-767-0826 Email: commercial@thehelpfulpeople.com Website: www.thehelpfulpeople.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by class ■ Limits: $1,000,000/1,000,000/1,000,000 ■ Brokered Business: Not Accepted ■ States Entered in: All States except Monopolistic & AK, AL, HI ■ Admitted Status: Admitted ■ Carriers Represented: Various - traditional and pay as you go options available

IMACO Underwriters Contact: Abel Alvarez Phone: 800-943-3821 Email: marketing@imacoinsurance.com Website: www.imacounderwriters.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $100 ■ Brokered Business: Accepted ■ States Entered: All except Monopolistic & DC NY SD ■ Admitted Status: Admitted & Non-admitted

Contact: Paul Laufer Phone: 818-507-1980 ; Fax: 818-545-3818 Email: plaufer@gorstcompass.com Website: www.gorstcompass.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: AZ CA NV OR ■ Admitted Status: Admitted ■ Carriers Represented: 20+ Markets

Gray Specialty Contact: Robert Swayze Phone: 504-754-6701 Email: rswayze@grayspecialty.com Website: www.grayspecialty.com ■ Markets Offered: Excess Workers Comp, Excess Workers Comp Buffer Layer, USL&H, Alternative Risk, Reinsurance, Captives ■ Phone Inquiries: Accepted ■ Minimum Premium: $20,000 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: The Gray Insurance Co. Halcyon Underwriters Contact: Jason Mata Phone: 321-527-2180 ; Fax: 407-660-0525 Email: marketing@halcyonuw.com Website: www.halcyonuw.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: 500/500/500 ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Allied World, Amerisafe, AmTrust, Chubb, CNA, Crum & Forster, Employers, Everest, FFVA, Guard, Hartford, ICW, Liberty Mutual, Markel, Nationwide, Sentry, State Auto, Travelers, Zenith, Zurich IAAC, Inc. (Membership Services Div. of IIABNY) Contact: Customer Service Phone: 800-962-7950 ; Fax: 888-432-0510 Email: iiabny@iiabny.org ■ Markets Offered: USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,000 ■ Brokered Business: Not Accepted ■ States Entered in: NY ■ Admitted Status: Admitted ■ Carriers Represented: Independent Market Solutions (www.imsaccess.com)

40 | INSURANCE JOURNAL | NATIONAL MAY 3, 2021

Integrated Underwriters ® Contact: Curtis Prince Phone: 567-233-2667 Email: cprince@integrateduw.com Website: www.integrateduw.com ■ 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) International Underwriting Agency Contact: Edward Ha Phone: 718-461-8088 Email: marketing@iua.bz Website: www.iua.bz ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $500 ■ Limits: 1/2Mil & 2/4Mil ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Travelers, Amtrust, The Hartford, CNA, Employers, PEO companies IPA Risk Management, LLC Contact: Greg or Chase Phone: 201-797-1084 Ext. 201 or 202 ; Fax: 201-797-1076 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

Irving Weber Associates, Inc. Contact: Tina Brazier Phone: 631-619-9207 ; Fax: 631-913-6035 Email: Info@iwains.com Website: www.iwains.com ■ Markets Offered: All Lines including Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Brokered Business: Accepted ■ States Entered in: All States except AK & HI ■ Admitted Status: Admitted ■ Carriers Represented: QBE, Hartford, Travelers, Liberty Mutual, Employers, & More

Izzo Insurance Services, A division of Hull & Company, LLC

Contact: Mike Jones Phone: 800-800-1704 ; Fax: 630-582-2803 Email: MJones@IzzoInsurance.com Website: www.IzzoInsurance.com ■ Markets Offered: Workers’ Compensation, Exclusive Security Guard Workers’ Compensation ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: Varies ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmeriTrust, AmTrust Companies, BerkleyNet, Chubb, CNA, Employers Ins. Group, Everest, Great American, GUARD, Hartford, ICW Group, Normandy, Starr, State Auto, Travelers, Zenith Insurance Jimcor Agencies WC: Chris Hudson - 201-573-8200 Ext. 1204 Staffing WC: Michael Hayes - 201-573-8200 Ext. 1109 Email: marketing@jimcor.com Website: www.jimcor.com ■ Markets Offered: Workers’ Comp, Staffing WC ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Any Applicable per State ■ Brokered Business: Accepted ■ States Entered in: All Nonmonopolistic States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: AIG, AmTrust, Applied, Employers, Hanover, National Liability & Fire, Travelers, Crum & Forster, Zurich, Falls Lake, OneBeacon, SouthEast Personnel Leasing, Key Risk, CORE/Starstone, Liberty Mutual, Markel Specialty/ FirstComp Keating Brokerage Contact: Tim Palmer Phone: 508-229-4710 Email: tpalmer@keating.insurance Website: www.keating.insurance ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Over 25 Monoline WC Markets

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Legacy Employer Concepts, LLC Contact: Brett Arthur Phone: 813-460-9166 Email: brett@legacyemployerconcepts.com Website: www.legacyemployerconcepts.com ■ Markets Offered: Excess Workers’ Comp, EPLI, Teladoc, Health Insurance, HMO, USL&H, Workers’ Comp, Human Resources, Payroll ■ Phone Inquiries: Accepted ■ Minimum Premium: $100 ■ Limits: 99999999999999 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple Carriers Libertate Insurance Services, LLC Contact: Sharlie Reynolds Phone: 305-495-5173 ; Fax: 407-613-5477 Email: sreynolds@libertateins.com Website: www.libertateins.com ■ Markets Offered: Workers’ Compensation, EPLI, PL/GL, Property, Cyber, Commercial Auto/Fleet ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by program ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Multiple LIG Marine Managers Contact: Karen Tischler Phone: 727-578-2800 ; Fax: 727-578-9977 Email: KLT@LIGMarine.com Website: www.LIGMarine.com ■ Markets Offered: USL&H (Longshore), Workers’ Comp, MEL ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Various Markel Contact: Aaron Heithoff Phone: 888-500-3344 Email: aaron.heithoff@markel.com Website: markelinsurance.com/small-business ■ Markets Offered: Workers’ Comp, BOP, Misc. E&O, and specialty package policies ■ Phone Inquiries: Accepted ■ Minimum Premium: N/A ■ Limits: Variable ■ Brokered Business: Limited ■ States Entered in: Most. See website for details.

■ Admitted Status: Admitted MarketScout Chris Kerr - 972-934-4206 ; Dan Fouts - 972-934-4231 John McGee -570-554-4506 ; Patricia Haas - 972-934-4216 Brian Panzeri - 972-934-4207

Email: workcomp@msunderwriters.com ■ Markets: USL&H, Workers’ Comp, Oil & Gas, Social Svcs, Transportation, Construction, Healthcare & Manufacturing, Debit Experience Mod Accounts ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Over 20 national, regional & specialty carriers

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MartinoWest Business & Insurance Solutions Phone: 844-333-2005 ; Fax: 916-751-5911 Email: info@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 McLeckie Insurance Group Contact: Bill McLeckie Phone: 903-897-9090 ; Fax: 760-462-1696 Email: bill@mcleckie.com Website: www.mcleckie.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries & Brokered Business: Accepted ■ Minimum Premium: $500 ■ States Entered in: AR FL LA OK TN TX ■ Admitted Status: Admitted ■ Carriers Represented: Travelers and various others.

Midlands Management Corp.

Oklahoma City, OK & Dallas, TX Phone: 800-800-4007 ; Fax: 405-840-5432 Email: marketing@midman.com Website: www.midlandsmgt.com ■ Markets Offered: Excess Workers’ Comp, Primary Workers’ Comp, Texas Non-Subscriber, Public Entity, Occupational Accident, P&C Lines ■ Phone Inquiries: Accepted ■ Minimum Premium: As low as NCCI Minimums ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: AM Best “A” Rated Carriers Midwest Employers Casualty Contact: Renée Lunceford Phone: 636-449-7022 ; Fax: 636-449-7199 Email: rlunceford@mecasualty.com Website: www.mecasualty.com ■ Markets Offered: Workers’ Compensation: Excess Workers’ Compensation, Group Captives, Large Deductible ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by risk ■ Limits: Up to Statutory ■ Brokered Business: Accepted ■ States Entered in: All States, District of Columbia ■ Admitted Status: Admitted

Midwestern Insurance Alliance, LLC Contact: Theresa Bailey Phone: 619-450-1739 ; Fax: 502-426-7067 Email: tbailey@mwiainsurance.com Website: www.midwesterninsurance.com ■ Markets Offered: Workers’ Comp, Trucking, Milk Haulers, Fuel Haulers, Commercial Roofing, Towing, Charter Bus, Limousine, Parcel Delivery, OA/CL, Wood Products ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple “A” rated carriers

MiniCo Insurance Agency, LLC Contact: Angela Cozzo Phone: 800-528-1056 Email: customercare@minico.com Website: www.minico.com ■ Markets Offered: Workers’ Comp for Self-Storage Facilities ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: $1,000,000/$1,000,000/$1,000,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Liberty Mutual MMA Programs, a div. of Marsh & McLennan Contact: Alex Bagdonas Phone: 615-215-7217 Email: alex.bagdonas@mma-programs.com Website: www.mma-programs.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $800 ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted NBIS Contact: Chris Fiorentino Phone: 770-257-1502 ; Fax: 770-257-1500 Email: cfiorentino@nbis.com Website: www.NBIS.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Min Premium: $2,500 (NO mono-line WC – must be in conjunction with other lines GL, Auto, IM) ■ Limits: 1m/1m/1m ■ Brokered Business: NotAccepted ■ States Entered in: All States except NY ■ Admitted Status: Admitted all states New Age Underwriters Agency, Inc. Contact: Marty Ascher Phone: 516-488-2500 X238 ; Fax: 516-488-2508 Email: M.Ascher@NewAgeIns.com Website: www.newageins.com ■ Markets Offered: Workers’ Comp, Excess Workers’ Comp, Cannabis, Hard to Place ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by Carrier ■ Limits: Varies by State ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: 30 carriers including - Allianz, Amtrust, Cimarron, Employers, National Liability, Normandy, Utica National, Zurich and others Norman-Spencer Agency, Inc. Contact: David George Phone: 937-432-3513 ; Fax: 937-432-1635 Email: davidgeorge@norman-spencer.com Website: www.norman-spencer.com ■ Markets Offered: Excess Workers’ Comp, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust, Crum & Forster, Everest, Hartford, Liberty Mutual

MAY 3, 2021 INSURANCE JOURNAL | NATIONAL | 41

2021 Workers’ Compensation Directory

Normandy Insurance Company

Contact: Laura Lieberman, Marketing Phone: 866-688-6448 ; Fax: 866-688-6448 Email: applications@normandyins.com Website: www.normandyins.com ■ Markets Offered: Workers’ Comp and General Liability ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Standard ■ Brokered Business: Accepted ■ States Entered in: AL AR CT FL GA LA MO MS NC NJ OK PA TN TX VA ■ Admitted Status: Admitted ■ Alliances With: Various Brokers / Direct appointment may be available For more info, see our ad on page 4 (Southeast & S. Central) ; page 1 (East).

Novum Underwriting Partners Contact: AnneMarie Latocha Phone: 315-395-9707 Email: annemarie.latocha@novumuw.com Website: www.novumuw.com ■ Markets Offered: Workers’ Comp, High Hazard Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All except Monopolistic ■ Admitted Status: Admitted ■ Carriers Represented: 20+ ‘A rated carriers Number One Insurance Agency, Inc. Contact: Michelle St. Angelo Phone: 508-634-7364 ; Fax: 508-634-2930 Email: mstangelo@massagent.com Website: www.massagent.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $100 ■ Limits: 100 / 500 / 100 + ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust Group, Norfolk & Dedham Group, The Hartford, A.I.M. Mutual Ins Companies and more.

Omaha National Underwriters, LLC

Contact: Chris LaMantia Phone: 844-761-8400 Email: sales@omahanational.com Website: www.omahanational.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Must be experience rated ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: AZ CA IL NE NJ NV PA ■ Admitted Status: Admitted ■ Carriers Represented: PPIC For more info, see our ad on page 1 (National).

44 | INSURANCE JOURNAL | NATIONAL MAY 3, 2021

Omega Insurance Solutions Contact: Keith Steverson Phone: 866-997-0711 ; Fax: 888-611-9598 Email: wc@omega4agents.com Website: www.Omega4agents.com ■ Markets Offered: USL&H, Workers’ Comp, Hard- to-Place WC, GL, Commercial Auto, Small BOPs ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: WC standard limits or increased to $1M ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: 17 WC carriers/4 PEOs – Writing most classes depending on state.

One80 Intermediaries Contact: Janet Elliott, Sr. Underwriter Phone: 858-444-3260 x 1058 Email: jelliott@one80intermediaries.com Website: www.one80intermediaries.com ■ Markets Offered: Workers’ Comp, Texas Non- Subscriber, PEO, Occupational Accident, Group Accident ■ Phone Inquiries: Accepted ■ Minimum Premium: WC: $10,000. Accident: $1,000.

■ Limits: WC: Statutory. Accident: Various limits & benefit packages available.

■ Brokered Business: Accepted ■ States Entered in: WC: All States except ND, OH, WA, WY. Accident: Nationwide.

■ Admitted Status: WC: Admitted. Accident: Admitted & Non-Admitted.

■ Carriers Represented: Various Oryx Insurance Brokerage, Inc. Contact: Tom Pasquale Phone: D 607-304-4230 ; Fax: 607-724-7266 Email: marketing@oryxinsurance.com Website: www.oryxinsurance.com ■ Markets Offered: Workers’ Compensation, GL, BA ■ Phone Inquiries: Accepted ■ Minimum Premium: $15,000 ■ Brokered Business: Not Accepted ■ States Entered in: NY – Other States Eligible: CT DE IL MD NJ PA VA VT ■ Admitted Status: Admitted ■ Carriers Represented: Various A rated Carriers Pacific Excess Insurance Marketing Contact: Barry Colburn Phone: 800-222-5582 ; Fax: 714-228-7899 Email: Marketing@pacificexcess.com Website: www.pacificexcess.com ■ Markets Offered: Workers’ Comp, All P&C Risks ■ Phone Inquiries: Accepted ■ Minimum Premium: As Low As $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: 35 States ■ Admitted Status: Admitted ■ Carriers: Multiple Carriers Represented PEO/Insurance Emperor Contact: Nick Minetos Phone: 505-610-6885 ; Fax: 505-212-0366 Email: nick@peoemperor.net Website: www.peoemperor.net ■ Markets Offered: Workers’ Comp, Health Insurance, Wellnes Program/Tax Savings ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: 999999999 ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Several Carriers and PEOs, ASOs and EORs

PEO Brokers Group Contact: Steve Brown Phone: 877-810-9355 Email: swbrown@peobrokersgroup.com Website: www.peobrokersgroup.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple

Pie Insurance

Contact: Business Development Email: partnerships@pieinsurance.com Website: agencies.pieinsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: No minimum ■ Limits: $125,000 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted For more info, see our ad on page 35 (National).

PMC Insurance Group Phone: 877-762-2667 Email: info@pmcinsurance.com Website: www.pmcinsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Carriers: Multiple National and Regional Carriers

Preferred Property Programs

Contact: Carmen Suarez Phone: 888-548-2465 ; Fax: 732-946-0547 Email: info@ppp-quotes.com Website: www.ppp-quotes.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $300 ■ Limits: 100/500/100 ; 500/500/500 ; 1,000/1,000/1,000 ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers Represented: A- X rating by AM Best Specializing in the commercial real estate marketplace. We offer D&O, Umbrellas, EIL & WC for Condos, HOA’S, PUD’S, Apartments and Timeshare Associations. We also offer umbrellas and B&M policies for commercial lessors risk only (LRO).

Pro Group International Contact: Allison Meinke Phone: 800-489-9914 Email: admin@progroupins.com Website: www.progroupins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Limits: Varies ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Various INSURANCEJOURNAL.COM

Program Brokerage Corporation Contact: Cynthia O’Brien, President - Wholesale Div. Phone: 866-607-8370 ; Fax: 212-338-2910 Email: info@programbrokerage.com Website: www.programbrokerage.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmTrust, C&F, CNA, Everest, Guard, Hanover, Hartford, Star, Travelers, Zurich Red Rock Financial Group, Inc. DBA: The Workers Compensation Insurance Place Contact: Lawrence Levine Phone: 520-975-2505 Email: info@redrockfg.com Website: www.redrockfg.com ■ Markets Offered: Workers’ Comp (High Risk) (High mode 1.75+): Roofers, Framers, Excavators, Truckers and many other class codes.

■ Phone Inquiries: Accepted ■ Minimum Premium: $7,500 ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: Majority of states 42 ■ Admitted Status: Admitted & Non-admitted ■ Alliances With: PEOs

Risk Innovations, LLC

Contact: Jeff Sandy, VP of Workers’ Comp Brokerage Phone: 1-800-913-6696 Email: marketing@riskinnovations.com Website: www.riskinnovations.com ■ Markets Offered: Guaranteed Cost Plans, Large Deductible Plans, Small and Mid-Sized Deductible Plans, ASO’s, PEO’s, Excess Workers’ Comp, USL&H ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Over 40

Roamnet Insurance Marketing Programs

Contact: Anthony Amorelli III Phone: 909-987-6111 ; Fax: 909-987-2245 Email: anthonya3@roamnetins.com Website: www.roamnetins.com ■ Markets: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,500 ■ Limits: High limits with small premiums ■ Retail Agents/Brokers: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust, Nationwide, Hanover (WC Condo), Travelers, Zenith, CompWest, Preferred Employers, PIE, CHUBB, Hartford, Guideone & Markel RT Specialty Phone: 888-884-1900 ; Fax: 312-784-6002 Email: marketing@rtspecialty.com Website: rtspecialty.com ■ Markets Offered: Workers’ Comp, Excess Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by class ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers Represented: We have strategic partnerships with many carriers. Inquire for details.

Russell Bond & Co., Inc. Contact: Rick Smith Phone: 800-333-7226 ; Fax: 800-677-6779 Email: rsmith@russellbond.com Website: www.russellbond.com ■ Markets Offered: Workers’ Comp, Excess EL Public Entities (NY Only), Excess Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $1M EL - Statutory WC ■ Brokered Business: Accepted ■ States Entered in: All States except HI UT WY ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmTrust, Crum & Forster, Lion, Starr, and National Liability & Fire Insurance..

Risk Innovations is a multi-lines wholesaler that specializes in workers’ compensation and personal lines insurance. Their program exclusivity, process automation, national footprint, broad market access and specialized expertise uniquely positions them Safety National Casualty Corporation Phone: 888-995-5300 ; Fax: 314-995-3843 in the marketplace as an industry-leading specialty wholesaler. Email: info@safetynational.com Website: www.safetynational.com ■ Markets Offered: Excess WC, Workers’ Comp Risk Placement Services, Inc. (RPS) ■ Phone Inquiries: Accepted Phone: 866-595-8413 ■ Minimum Premium: Varies by state Email: Contact_Us @RPSins.com ■ Limits: Varies by state Website: www.rpsins.com ■ Brokered Business: Accepted ■ Markets Offered: Excess WC, Workers’ Comp ■ States Entered in: All States & Canada ■ Phone Inquiries: Accepted ■ Admitted Status: Admitted ■ Minimum Premium: $1,000 For more info, see our ad on page 9 (National).

■ Brokered Business: Accepted ■ States Entered in: All States Safety National® is a multi-line specialty insurance carrier ■ Admitted Status: Admitted that offers risk solutions for large commercial and public entity ■ Carriers Represented: ACE, AIG, CNA, Hartford, clients, providing specialized expertise, flexible program design Safeco & Zurich 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. INSURANCEJOURNAL.COM

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 States except AK, DE, HI & MA ■ Admitted Status: Admitted SDS General Insurance Services, Inc. Contact: Heidi Schaible Phone: 714-462-8044 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, Employers, AmTrust North America, Atlas General

Shield Commercial Insurance Services

Contact: Rob Anderson 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, telecommunications, trucking ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Nationwide, MidSouth, Normandy, Cimarron 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.

SIS Insure Phone: 760-599-7242 Email: marketing@sisinsure.com Website: www.sisinsure.com ■ Markets Offered: Workers’ Comp , Excess WC ■ Phone Inquiries: Accepted ■ Minimum Premium: $650 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: All except Monopolistic and AK NY FL ■ Admitted Status: Admitted ■ Carriers Represented: Nova Casualty, Markel, AmTrust, and more!

MAY 3, 2021 INSURANCE JOURNAL | NATIONAL | 45

2021 Workers’ Compensation Directory SouthEast Personnel Leasing Inc. Contact: Emanuel Molina Phone: 727-692-8801 ; Fax: 727-682-0182 Email: emanuel.m@spli.com Website: www.spli.com ■ Markets Offered: Workers’ Comp, USL&H ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by State ■ Limits: $ 1,000,000 ■ Brokered Business: Accepted ■ States Entered in: AL AZ CA CO DC FL GA IL IN KY LA MD MS NC NJ NM NV NY OK PA SC TN TX VA Sports & Fitness Insurance Corporation (SFIC) Contact: Kim Tucker Phone: 800-844-0536 ; Fax: 601-853-6141 Email: askus@sportsfitness.com Website: www.sportsfitness.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Liberty Mutual, Hartford

StateFund First

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.

Tejas American General Agency

Contact: Robert Starcher Phone: 888-999-8242 ; Fax: 512-342-2803 Email: marketing@taga1.com Website: www.taga1.com ■ Markets: Workers’ Comp, Non-Subscription ■ Phone Inquiries: Accepted ■ Minimum Premium: $250 ■ Limits: $1M/$1M/$1M ■ Brokered Business: Not Accepted ■ States Entered in: TX AL AR AZ CA CO FL GA IN KS KY LA MI MO NV NM NC OK SC SD TN WA ■ Admitted Status: Admitted ■ Carriers: Accident Fund, ACE USA, AIG, Amerisafe, AmTrust, Berkshire GUARD, Employers, Essex, Great American, Hanover, ICW Group, Liberty Mutual, Markel Specialty, Method, Nationwide, Old Glory, Pie, RTW, Scottsdale, State Auto, Travelers For more info, see our ad on page 3 (S. Central & Southeast).

Contact: Erica Bro Phone: 855-784-4433 ; Fax: 415-536-4003 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 Texas Mutual Insurance Company Insurance Fund, ICW, Berkshire Hathaway Contact: Customer Service Phone: 800-859-5995 Stonetrust Workers’ Compensation Email: information@texasmutual.com Website: www.texasmutual.com Contact: Trey Day ■ Markets Offered: Workers’ Comp Phone: 225-368-6474 ; Fax: 866-923-1871 ■ Phone Inquiries: Accepted Email: Trey.Day@StonetrustInsurance.com ■ Minimum Premium: Competitive premiums Website: www.StonetrustInsurance.com ■ Brokered Business: Accepted ■ Markets Offered: Workers’ Comp ■ States Entered in: TX ■ Phone Inquiries: Accepted For more info, see our ad on page 5 (S. Central).

■ Minimum Premium: $5,000 ■ Limits: 2,000,000/2,000,000/2,000,000 Texas Oil & Gas Association Workers’ Comp ■ Brokered Business: Not Accepted Safety Group ■ States Entered in: AR LA MO MS NE OK TN TX Contact: Jim Sierra ■ Admitted Status: Admitted Phone: 512-478-6631 ; Fax: 512-472-3859 Email: jsierra@txoga.org SWBC Website: www.txogainsurance.com Contact: Lisa Pinto ■ Markets Offered: Oil & Gas Workers’ Comp Phone: 210-525-1241 ; Fax: 210-321-7530 ■ Phone Inquiries: Accepted Email: swbcinfo@swbc.com ■ Minimum Premium: $0 Website: www.swbc.com ■ Brokered Business: Accepted ■ Markets Offered: Workers’ Comp ■ States Entered in: TX ■ Phone Inquiries: Accepted ■ Admitted Status: Admitted ■ Minimum Premium: No minimum ■ Carriers Represented: Texas Mutual Ins. Company ■ Limits: 100/100/500 minimum ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: All Major Carriers

46 | INSURANCE JOURNAL | NATIONAL MAY 3, 2021

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 self-insurance 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 Mechanic Group, Inc. , A Division 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.memic.com/agents ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Not Accepted ■ States Entered in: All Non-monopolistic States ■ Admitted Status: Admitted

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theWCmarketplace.com Phone: 704-574-1422 ; Fax: 800-603-1702 Email: service@theWCmarketplace.com Website: theWCmarketplace.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: NC & SC ■ Admitted Status: Admitted ■ Carriers Represented: 3 dozen - One-stop shopping Transport Risk Management Aviation and Aerospace Insurance Contact: Jessie Hushaw Phone: 720-208-0844 ; Fax: 720-208-0845 Email: Comp@TransportRisk.com Website: www.TransportRisk.com ■ Markets Offered: Workers’ Comp, Excess Workers’ Comp, Aviation WC and Defense Base Act ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Allianz, Old Republic, Members of Global Aerospace, Members of USAIG U.S. Risk, LLC Contact: Brian Rudolph Phone: 941-444-1643 Email: WCsubmissions@usrisk.com Website: www.usrisk.com ■ Markets Offered: Workers’ Comp (All Lines), Monoline Workers’ Comp, Excess Workers’ Comp, USL&H, Occupational Accident, Non-Subscriber ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Limits: Varies ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: We access Work Comp from 25+ Carriers Universal Insurance Programs Contact: Jenny Bortman Phone: 800-844-2101 ; Fax: 866-512-2272 Email: info@uiprograms.com Website: www.uiprograms.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted V3 Insurance Partners, LLC Contact: Pam Wagner Phone: 215-600-0749 ; Fax: 215-475-3959 Email: Pam.Wagner@v3ins.com Website: www.V3ins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: Standard statutory limits ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted

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Worldwide Facilities, LLC

Contact: Todd Pollock Phone: 401-500-5911 Email: tpollock@wwfi.com Website: www.wwfi.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Starting at $500 ■ Limits: No maximum ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple carriers

Wrap Up Insurance Solutions Contact: Brian Billhartz Phone: 636-489-0185 ; Fax: 636-536-7473 Email: bbillhartz@wrapupsolutions.com Website: www.wrapupsolutions.com ■ Markets Offered: Excess Workers’ Comp, Workers’ Comp, Wrap Ups ■ Phone Inquiries: Accepted ■ Minimum Premium: N/A ■ Limits: $100MM ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ 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 Worldwide Facilities – MGA Workers’ Compensation ■ Markets Offered: Workers’Compensation available for Educational Institutions Contact: Ana Sims ■ Phone Inquiries: Accepted Phone: 707-535-2510 ■ Minimum Premium: $500 Email: asims@wwfi.com ■ Limits: Statutory Website: www.wwfi.com ■ Brokered Business: Accepted ■ Markets Offered: Workers’ Comp ■ States Entered in: Most States ■ Phone Inquiries: Accepted ■ Admitted Status: Admitted ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States

World Wide Specialty Programs

Contact: Dorothy Taylor ; Robert Thompson Phone: 800-245-9653 or 631-390-0900 Fax: 631-390-0922 Email: dtaylor@wwspi.com ; rthompson@wwspi.com Website: www.wwspi.com ■ Markets Offered: Workers’ Comp, All other Staffing Lines ■ Phone Inquiries: Accepted ■ Minimum Premium: Call to discuss ■ Limits: State Mandated ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Zurich World Wide Specialty Programs has lead the market with the most comprehensive program for the staffing industry for over 50 years. Our partnership & understanding of how the staffing industry works allows us to be the premier source for all Staffing insurance lines including Staffing Workers’ Comp.

MAY 3, 2021 INSURANCE JOURNAL | NATIONAL | 47

Idea Exchange: The Wedge Resisting Agency Partners:

How to Get Stronger Buy-In

S

ometimes agency partners are your biggest advocates for growth, and sometimes they are the biggest resistor.

By Randy Schwantz I had a call with a majority owner the other day who told me, “Man, it’s time to get on with this thing. We’ve got to change the way we hire new producers and do a better job of developing our existing people. They deserve it. But I’m going to talk to my two partners, one is a huge fan of yours, I’m sure we’ll get this done. I’ll be back to you in less than a week.”

Not surprising, he emailed me back a few days later.

“One of my partners doesn’t understand what’s wrong. He said, ‘why do we need to

do this? Can’t we figure it out ourselves?”

(Even though they haven’t figured it out in the past 15 years that they’ve been partners.)

It’s a tragic story. And, perhaps one you have to live with unless you want to sell out, get a “partner divorce,” or live with mediocrity.

There is one critical question to consider moving forward in this situation.

Is getting buy-in from the resisting partner possible?

If the answer is “yes,” then here’s a three-step approach to get you stronger buy-in from agency partners.

Money

Get out your big fat spreadsheet, crunch the numbers, and count the costs.

Compare the value of a 2% growth agency versus a 5% to 7% growth agency. It’s

important you put it in real numbers.

Calculate how much money has been wasted, if any, on new producer hires that didn’t make it.

Put it all together, including every partner’s retirement date. Remember, no one stays forever.

If you can’t make a clear financial case, you shouldn’t try to grow.

Psychology

Our mindset is who we are and who we will become. Fear is the biggest driver.

Fear of failure. Fear of looking stupid amongst peers. And for many agency partners, fear of letting your family down.

The flip side of that is aspiration or desire. You might need to bring in a consultant or friend and do a little dreaming. And go through a quick review of “potential” wasted regrets.

If your partner is anything other than a robot without feelings -- you should start to get some engagement here.

Process

The process is how the work will get done. And when done right, it gives your people “something to believe in” within the agency.

If there is no process currently established then it’s time to introduce your growth playbook, along with testimonials of others that have done it.

There is no guarantee that your partner will want to engage, think, feel, and advance to the next level. But after you do these three things, you will have given it your best shot.

When it’s over and if there’s still no movement, you get to decide. Sell it, divorce it, or tolerate it?

Schwantz is founder of The Wedge Group. He’s also the author of the book Agency Growth Machine. For a free webinar to simplify growth in your agency, visit: https://thewedge.net/register. Phone: 214-446-3209.

Email: randy@thewedge.net.

46 | INSURANCE JOURNAL | MAY 3, 2021

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Idea Exchange: Commercial Lines Large Deductible Versus Self-Insured Retention

W

ith recent predictions that the hardening of the commercial insurance market will continue beyond 2021, corporate insurance

By Phillip D. Moultrie buyers are exploring all means of mitigating the adverse impact of limited insurer capacities and escalating costs. This includes the consideration, to the extent a balance sheet may allow, to retain a larger portion of risk through the use of self-insured retentions or deductibles.

Self-insured retentions (SIR) and deductibles, although they are different, are intended to accomplish the same goals.

However, the most common insurance buyers or laypersons often confuse the

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two concepts and commonly use the terms interchangeably. Even experienced insurance professionals and insureds are often found scratching their heads when considering which of the two concepts are a best fit or when faced with applying SIRs or deductibles to actual coverage situations.

While deductibles and SIRs share common features, they are indeed separate and distinct, and their application can dramatically affect the defense and/or coverage obligations of both insureds and insurers.

A deductible or SIR dictates the monetary threshold at which an insurer is obligated to pay liabilities covered by the policy. The use of these tools enable an insurer to shift the burden to pay for a portion of the claim to the insured. Factors determining the favorability and amount of an SIR or deductible to an insured are many. However, two of the

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most common factors involve risk tolerance of the insured, cost savings, as well as the ability/interest in the insured to retain involvement in the handling of a claim.

As one might presume, the higher the amount of either an SIR or deductible, the upfront premium cost for a policy will be reduced. However, when selecting between the two options, there are other factors to be considered, including but not limited to the ultimate cost to the insured (when taking into account claims handling, defense, etc.).

Although terms of specific policies differ and are subject to negotiation between insured and insurers, listed below are some notable pros and cons to be considered when determining the suitability of an SIR or a deductible.

continued on page 48

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MAINTAIN 100% OWNERSHIP And keep your agency’s unique style, familiar identity, and personalized customer service www.IAAnetwork.com 866-789-9712

Not all markets available in all states

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MAY 3, 2021 INSURANCE JOURNAL | 47

Idea Exchange: Commercial Lines continued from page 47 Deductible Pros

• Insurer will typically front the deductible, paying the claimant in full, then bill the insured for reimbursement of the deductible amount.

• If the insured cannot pay/reimburse the deductible, the claimant is still made whole by the insurer.

• Insurer must investigate. If a claim is potentially covered, the insurer has an immediate duty to respond and defend the insured at the first dollar level.

• The insurer is fully responsible for defense costs, regardless of the amount of the deductible as long as there is a potential for coverage under the policy.

• Insolvency of the insured does not alter an insurer’s duty to defend and indemnify the insolvent insured. The insured’s insolvency will not reduce the insurer’s liability to those with insured claims.

• The insurer must defend additional insureds from the outset.

• On most general liability policies, defense costs are normally outside the limit of liability (defense costs do not erode the policy’s limit of protection). However, policy language must dictate if defense costs are allowed to erode the deductible. For large deductible, this is often a matter of negotiation with the insurer.

• Since the insurer is ultimately responsible for paying covered losses, regardless of the deductible amount, this means that a Certificate of Insurance need not divulge the fact that a deductible applies.

Deductible Cons

• After payment to a claimant, the insurer will require reimbursement of the deductible portion from the insured.

Therefore, collateral is usually required (most often in the form of a Letter of Credit) to secure the insurer in case the insured cannot reimburse the insurer for the deductible.

• Requires financial statements from the insured, followed by close scrutiny by underwriters to assess the insured’s ability to assume and pay the deductible 48 | INSURANCE JOURNAL | MAY 3, 2021

obligation.

• Insurer retains control of the defense, including choice of defense counsel.

• Unless the policy provides otherwise, the insurer is allowed to defend and settle claims made against the insured without the insured’s consent. This is true, even if the entire settlement amount falls within the deductible for which the insured is responsible.

• Deductibles typically erode the limit of liability. For example, a $1 million policy limit with a $250,000 deductible would leave $750,000 in true insurance protection.

• Worker’s compensation and, in some cases auto liability, are only available on a deductible basis because state law requires insurers to pay claims on a first-dollar basis unless the insured is a qualified self-insurer, in which case the insured must post a self-insurer’s bond with the state.

SIR Pros

• Insured controls its own defense for all claims within the SIR, including choice of defense counsel. If the insurer wishes to do so, the insurer is free to associate its own defense counsel but only to monitor the defense.

• Collateral not required since insured is responsible for the SIR. • Degree of premium savings are typically a bit higher with an SIR, since it saves the insurer defense costs, and it is perceived by underwriters that the insured has more skin in the game.

• Most likely, the insurer will not be permitted to question the insured’s decisions if they are made in good faith.

• Even though it may avoid exposing the insurer to liability, there is no implied duty upon the insured to accept a settlement offer within the SIR. • SIR does not erode the limit of liability.

• SIR can offer a cash flow benefit in that the insured pays out costs as they are incurred, rather than in advance via insurance premiums.

SIR Cons

• SIRs are applicable only to policies providing liability protection, not property insurance.

• SIR is not covered by the policy. It is purely the insured’s responsibility. No fronting by the insurer.

• Insurer does not get involved until the SIR is reached, or until reserves pierce the insurer’s attachment point, or at a designated threshold at which the insurer should be notified.

• Insured is fully responsible for the administration of claims within the SIR, including provision of and payment for a defense and any other allocated loss adjustment expenses.

• Until the SIR is reached, the insurer has no obligation to either indemnify or provide or pay for the insured’s defense.

• The insured’s insolvency does not obligate an insurer to drop down to pay the SIR (absent some deficiency in policy language).

An insurer will continue to have no obligation to defend or pay a claim within the SIR. • Insurer has no obligation to defend or indemnify additional insureds until the SIR is satisfied.

• Depending on the SIR threshold, insurers typically require the insured to engage the services of a third party administrator to handle claims.

• SIRs must be divulged on Certificates of Insurance, as the insurer has no responsibility to pay claims until the SIR is exhausted. In effect, the insured is the first insurer until the SIR is reached.

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Unless restricted by law, most insureds opt for SIRs over deductibles. However, not every insurer allows SIRs. Many of the admitted multiline insurers require deductibles because it means that they’re involved in every significant claim from the ground up. Insurers know that without effective loss adjusting and claims management, small claims can quickly become large claims.

These insurers generally don’t unbundle their services, meaning that they retain the right to adjust each and every loss, as well as manage the claims portfolio and provide legal services.

Nonadmitted specialty insurers, however, are far more likely to permit SIRs. In fact, most nonadmitted insurance companies are not equipped to handle each and every claim, so an SIR suits their purposes.

Think wisely before choosing a high deductible or high SIR plan, considering the positive and negative effects on a business and insurance program. Just because your premium is lower may not mean you’ll end up paying less in the long run.

risk management experience, and currently serves in agency management as well in an account executive/advisory role for large clients. Reprinted with permission from Risk Management Magazine. Copyright 2020 Risk and Insurance Management Society Inc. All rights reserved.

Moultrie is vice president of client services for Valent Group LLC, an EBSCO company. He has over 30 years of P/C and

May 3, 2021

May 3, 2021

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.

Southern Insurance Company 800 Superior Ave. E, 21st Floor Cleveland, OH 44114

Physicians Mutual Insurance Company 2600 Dodge Street Omaha, NE 68131

The above company has made application to the Division of Insurance to obtain Certificatte of Authority to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

The above company has made application to the Division of Insurance to amend their Certificate of Authority 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.

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.

May 3, 2021

May 3, 2021

Trisura Insurance Company 210 Park Avenue, Suite 1400 Oklahoma City, OK 73102

Beazley America Insurance Company Inc. 30 Batterson Park Road Farmington, CT 06032

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.

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.

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.

INSURANCEJOURNAL.COM

May 3, 2021 TypTap Insurance Company 3001 SE Maricamp Road Ocala, FL 34471

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.

Advertisers Index Applied Underwriters 2, 3, 52 www.auw.com Builders & Tradesmen's Insurance Services, Inc. www.btisinc.com 7 Cypress P&C www.cypressig.com SC7 Guard Insurance Companies www.guard.com 33 Insurance Associates of America www.iaanetwork.com 47 M.J. Hall & Company www.mjhallandcompany.com W1 Monarch E&S Insurance Services www.monarchexcess.com W3 Nationwide Mutual www.nationwide.com 25 Normandy Harbor SC4, S4, E1 www.normandyins.com Omaha National Underwriters www.omahanational.com 1 PIE Insurance www.partnerwithpie.com/IJ 35 ProAssurance Companies www.proassurance.com 13 Safety National www.safetynational.com 9 St. Johns Insurance Company www.stjohnsinsurance.com S5 Summit www.summitholdings.com SC1, S1 Tejas American General Agency www.taga1.com SC3, S3 Texas Mutual www.texasmutual.com SC5 The Hartford Insurance Group www.thehartford.com 5

MAY 3, 2021 INSURANCE JOURNAL | 49

Closing Quote Getting Homer Simpson to Buy Insurance

G

etting someone to buy insurance can be challenging.

Insurance helps people plan for the unexpected, but most people are hardwired to believe

By Nick Frank that conditions today will persevere forever. The fact that an unforeseen injury can lead to loss of income, that a parent might need long-term care, or that a natural disaster might strike are not scenarios we naturally entertain. People might also put off buying insurance because they think it is too expensive, feel intimidated by the process, procrastinate or balk at the thought of monthly payments for coverage on something that seems so unlikely to happen.

These psychological biases are well-studied and cataloged by behavioral economists.

Humans, survivors of dangerous times where risks included being eaten by dino-

saurs, are still in possession of ancient brain processes which today inhibit us from purchasing insurance.

Our Two Minds

Human reason is roughly divided into two categories, one for fast-thinking and the other for more conscious, complex deliberation. System One covers routine tasks like catching a ball or riding a bicycle.

The irrational Homer Simpson is the purest example of how this System One lizard brain functions: constantly reacting to stimuli with little regard for long-term consequences.

System Two covers decision-making processes that require more effort like trying to solve a complex math problem. An example of System Two thinking is the rational Vulcan Mr. Spock, who would often call out his “highly illogical” colleagues.

Unfortunately, potential insureds and sales producers are more like the appetite-driven Homer Simpson. They prefer to engage with System One. It is easier and more comfortable. They live in the

50 | INSURANCE JOURNAL | MAY 3, 2021

realm of instinct and reflexive practiced response, they feel in their guts that they’re making the right decisions. However, System One can lead them to make irrational, impulsive and short-sighted decisions.

learned this way is often quickly forgotten. If only we could borrow freely from the hours of experience earned by our most successful colleagues.

Fortunately, technology offers a solution.

Convincing Homer Simpson

Real-time Sales Coaching

If you want to sell insurance to someone who is more comfortable operating from System One, stop treating them like Mister Spock. So much of our sales literature, product descriptions and terminology address a rational audience.

Insurers must start addressing System One processes if they want to reach more customers.

To accomplish this, the insurance professional leading the discussions must be equipped to deal with their own and with their client’s tendencies and biases.

Intermediaries must know when to speak in emotional terms with stories and messaging that appeals to the System One brain. The seasoned professional typically learns this through direct experience or from their colleagues. They learn to notice and address cues that a potential insured is putting up barriers to actions that will benefit them over time. The seasoned sales agent knows when to nudge prospects towards a sale.

Learning through experience is slow, imperfect, and wasteful. Unless a meeting occurs in a group setting, post-mortems about what went wrong will be limited to a salesperson’s notes and recollections. Companies try to jumpstart their sales professionals through training programs. But information

A visually compelling, digitally-enabled, and interactive presentation platform can help guide a sales professional through a personalized set of sales motions to remove barriers and encourage decision-making. This interface connects intermediaries to their organization’s collective knowledge on how to address psychological biases in insurance sales.

The interface, accessed through a laptop or mobile device offers suggestions for moving the conversation forward as concerns and objections arise.

More than 150 behavioral tendencies might arise in any meeting. These can be identified and addressed in real-time. For example, planning fallacy is our tendency to underestimate how long it takes to execute tasks, and may cause a client to cut a meeting short from the belief that big decisions can be made later.

Here, the technology platform may nudge the salesperson to discuss why a specific insurance policy is better put in place now than later. This can give sales professionals a digital cheat sheet to help lead them to success.

Nick Frank is a partner with Simon-Kucher & Partners. He is based in Atlanta, Ga. INSURANCEJOURNAL.COM

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