Insurance Journal West 2023-09-18

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• We customize your membership to fit your needs.

• We support your agency with a 50-person expert field team.

• You have the freedom to choose your own markets.

• You receive superior compensation for superior performance.

• Members do not pay initiation fees or monthly dues.

• We operate in all 48 contiguous United States.

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Opening Note

Chairman of the Board Mark Wells | mwells@wellsmedia.com

Chief Executive Officer Joshua Carlson | jcarlson@insurancejournal.com

ADMINISTRATION / CIRCULATION

Bread and Butter

Small business accounts are the bread and butter for most agencies. The good news: small businesses are “increasingly satisfied” with the insurance products and services they receive from their providers.

That’s according to the 11th annual JD Power 2023 U.S. Small Commercial Insurance Study, which showed overall customer satisfaction reached an all-time high of 847 (on a 1,000-point scale) as customers note significant year-over-year improvement in three of five factors evaluated in the study. That figure is up 5 points from 2022 and 70 points from a decade ago.

“Contrary to what we’ve seen in personal lines insurance, small business customer satisfaction keeps rising even as premiums have continued to climb,” said Stephen Crewdson, senior director of global insurance intelligence at JD Power.

The study surveyed 2,472 small commercial insurance customers with 50 or fewer employees. Overall satisfaction comprises five factors: billing and payment; claims; interaction; policy offerings and price. The study was fielded from March through June 2023.

“While the overall satisfaction numbers are high, there are some important variations based on the size of the small business,” Crewdson said. “The trend is really being driven by businesses in the ranges of five to 10 employees and 11 to 50 employees, as opposed to the micro-businesses with fewer than five employees. That variation should inform more targeted small business strategies on the part of insurers.”

Nationwide ranks highest in overall customer satisfaction with a score of 883. State Farm (877) ranks second and Cincinnati Insurance (870) ranks third.

Other takeaways from the 2023 study include:

• The smallest small businesses feel less satisfied: Although overall customer satisfaction improves across all categories of businesses evaluated in the study, the micro category — which consists of businesses with fewer than five employees — has a lower overall satisfaction score (823) than medium-size (855) and larger (857) small businesses.

• Small businesses like proactive communication: When insurers proactively discuss price changes with small business customers and work with them to find ways to minimize that increase, overall customer satisfaction improves. Among the 36% of customers who made changes to their coverage to reduce a price increase, satisfaction with the price of their policy increased by 84 points. And of the 25% of customers who changed their business practices to reduce risk, price satisfaction rises 135 points.

• Social media plays a proactive role in communicating with small businesses: Small businesses are generally interested in receiving tips for reducing costs, new product information and information on state and federal regulation changes via social media. Overall satisfaction is 88 points higher among micro business customers who follow their insurer on social media than those who do not.

Chief Financial Officer Terry Freeburg | tfreeburg@wellsmedia.com

Circulation Manager Elizabeth Duffy | eduffy@wellsmedia.com

Staff Accountant Sarah Kersbergen | skersbergen@wellsmedia.com

EDITORIAL

V.P. of Content Andrea Wells | awells@insurancejournal.com

Executive Editor Emeritus Andrew Simpson | asimpson@wellsmedia.com

National Editor Chad Hemenway | chemenway@insurancejournal.com

Southeast Editor William Rabb | wrabb@insurancejournal.com

South Central Editor/Midwest Editor

Ezra Amacher | eamacher@insurancejournal.com

West Editor Don Jergler | djergler@insurancejournal.com

International Editor L.S. Howard | lhoward@insurancejournal.com

Content Editor Allen Laman | alaman@wellsmedia.com

Assistant Editor Jahna Jacobson | jjacobson@insurancejournal.com

Copy Editor Stephanie Jones | sjones@insurancejournal.com

Columnists & Contributors

Contributors: Erin Ashley, Karen Sullivan

Columnists: Chris Burand, Tony Caldwell, Bill Wilson

SALES / MARKETING

Chief Marketing Officer

Julie Tinney | jtinney@insurancejournal.com

West Sales Dena Kaplan | dkaplan@insurancejournal.com

Romeo Valdez | rvaldez@insurancejournal.com

Kelly DeLaMora | kdelamora@wellsmedia.com

South Central Sales

Mindy Trammell | mtrammell@insurancejournal.com

Southeast and East Sales (except for NY, PA, CT) Howard Simkin | hsimkin@insurancejournal.com

Midwest Sales

Lisa Whalen | (800) 897-9965 x180

East Sales (NY, PA and CT only)

Dave Molchan | (800) 897-9965 x145

Advertising Coordinator

Erin Burns | eburns@insurancejournal.com

Insurance Markets Manager

Kristine Honey | khoney@insurancejournal.com

Sr. Sales & Marketing Coordinator

Laura Roy | lroy@insurancejournal.com

Marketing Administrator Alberto Vazquez | avazquez@insurancejournal.com

Marketing Director Derence Walk | dwalk@insurancejournal.com

DESIGN / WEB / VIDEO

V.P. of Design

Guy Boccia | gboccia@insurancejournal.com

Web Team Lead

Josh Whitlow | jwhitlow@insurancejournal.com

Ad Ops Specialist Jeff Cardrant | jcardrant@insurancejournal.com

Web Developer Terrance Woest | twoest@wellsmedia.com

Web Developer Jason Chipp | jchipp@wellsmedia.com

V.P. of New Media

Bobbie Dodge | bdodge@insurancejournal.com

Videographer/Editor

Ashley Waldrop | awaldrop@insurancejournal.com

ACADEMY OF INSURANCE Director

Patrick Wraight | pwraight@ijacademy.com

Online Training Coordinator George Jack | gjack@ijacademy.com

‘Contrary to what we’ve seen in personal lines insurance, small business customer satisfaction keeps rising even as premiums have continued to climb.’

2023 to Test Recent Growth in Private Flood Insurance Market

By Chad Hemenway

The private flood insurance market has been growing but 2023 may provide a real test following Tropical Storm Hilary in California, as well as future storms that may come during the remainder of the Atlantic hurricane season.

According to AM Best, the federal National Flood Insurance Program’s (NFIP) use of new data, models and technology incorporated within its Risk Rating 2.0 underwriting methodology has moved premiums higher to reflect true flood risk, although increases are capped at 18% per year. This has made private flood insurers more competitive.

In its market segment report, AM Best said providers of private flood insurance grew to 198 in 2022 from 47 in 2016. The total in 2022 is 11 more than 2021, when Risk Rating 2.0 was introduced. In 2022, which included the use of Risk Rating 2.0 for nine months, private flood direct premiums written (DPW) were up 24% to about $1.2 billion while NFIP direct premiums written were down about 12% to nearly $2.8 billion.

Commercial businesses have used the private flood insurance market most, according to AM Best, since limits offered by NFIP ($500,000 for the structure and $500,00 for contents) are often lower than needed by businesses. By contrast, the median home value in most states is lower than the NFIP policy limit ($250,000).

The NFIP is more than $20.5 billion in

debt as of 2022, and financial results in 2023 aren’t likely to improve thanks to the floods California experienced from Tropical Storm Hillary. This catastrophe will also test private flood insurers.

“The California floods and mudslides earlier this year will pose a good test of the private flood market,” said Christopher Graham, senior industry analyst, AM Best. “California has a larger share of flood DPW in the private market than any other state with at least $100 million in DPW.”

Furthermore, AM Best’s report was published as Hurricane Idalia formed in

the Gulf of Mexico. Idalia strengthened to a major hurricane and struck Florida’s Gulf Coast in the Big Bend area north of Tampa. It continued on through Florida and into Georgia and the Carolinas.

“Florida has by far the largest flood premium volume, either federal or private, of any state in the country,” AM Best said. The effect 2023’s catastrophic weather events will have on the private flood insurance market is unknown, but events thus far have highlighted the low take-up rate for any kind of flood insurance.

Vermont also has seen major floods in 2023 but many property owners are uninsured. In fact, according to AM Best, it is possible that a larger share of the population is uninsured against flood in Vermont than in Florida, where it was realized following Hurricane Ian in 2022 that fewer than half of the state’s residents have flood insurance.

AM Best’s list of the top 10 private flood insurers exposes the “nascent nature” of the line of business. No residential insurer writes more than $75 million, and the top insurer of private commercial flood has less than $145 million DPW.

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News & Markets

Challenging Market, Elevated Claims, but Reinsurers’ Profits Return: Reports

By L.S. Howard

Despite extremely challenging conditions, with persistent and elevated claims activity, the global reinsurance segment returned an underwriting profit in 2022, according to an AM Best report.

“Reinsurers generally have realigned their risk profiles and are in a strong position to generate the underwriting profits that had been elusive for a number of years,” said the report titled “Global Reinsurers Face Challenges Even as Conditions Improve.”

These positive financial trends are continuing into 2023, with the four main European reinsurers — Hannover Re, Munich Re, SCOR and Swiss Re — all reporting very strong results with returns on capital significantly surpassing their cost of capital, said a separate report published by Fitch Ratings. “Price increases above claims inflation and better terms and conditions for property & casualty (P/C) have led to better underwriting margins on average.”

Profits improved significantly during the first half of 2023, “thanks to better pricing, lower claims, more favorable terms and conditions and a rise in investment yields,” said Robert Mazzuoli, director, Fitch Ratings, in the report, titled “European Reinsurers: 1H23 Results.”

A Different Kind of Hard Market

The AM Best report indicated the current market is one of the hardest in decades but is very different to previous hard cycles, which were triggered when a major catastrophic event would erode a significant amount of industry capital, leading to a rapid spike in rates.

In the current hard market, the path to adequate prices has taken longer than expected, the report said. “The last six years have seen a slow, protracted process of reinsurers realigning their risk profiles, reallocating capital, re-underwriting and repricing,” AM Best said.

AM Best went on to say that the need for

steady rate increases was widely accepted before the January 2023 renewal season, but there was no consensus about their adequacy.

Claims patterns, inflation and rising interest rates that started in early 2022 (and hit investment results), “have caught everyone by surprise,” the report said. “Optimism stemming from steep price increases and tighter terms and conditions is counterbalanced by an uncertain environment due to underwriting, economic and geopolitical factors.”

As a result of these market trends and several years of disappointing results, reinsurers have been under pressure to generate returns that cover their cost of capital, leading companies to shift their capital from property ,catastrophe risks.

AM Best said this shift has been accomplished by either moving up in the protection tower from the lower and medium layers of property catastrophe risks, by tightening terms and conditions, or diversifying into lines seen to be more stable or profitable such as casualty and specialty lines, and excess and surplus primary segments. The ratings agency noted that reinsurers’ efforts to realign their risk profiles “have largely transferred the burden of a heavy cat loss to primary writers.”

Recovery Underway

Reinsurers’ profitability started to improve and stabilize in 2021, the year that marked the start of the recovery, said AM Best. In 2022, however, higher natural catastrophe claims and concerns about inflation triggered sizable reserve strengthening by some key reinsurers. Nevertheless, AM Best’s global reinsurance composite posted a combined ratio of 95.6 in 2022, a 0.8 percentage point improvement over 2021. (Combined

ratios below 100 indicate an underwriting profit).

At the same time, investment results in 2022 were severely affected by unrealized losses on fixed-income securities, which led the sector to post a return on equity of 0.8% in 2022, down significantly from a 9.0% ROE reported during 2021.

Reinsurers’ profits continued their upward trajectory during the first half of 2023 as better underwriting results in P/C and life as well as significantly higher investment results have led “to a sharp rise in profits …,” according to Fitch, referring to the H1 2023 results of the four main European reinsurers.

The reported ROE in H1 2023 rose by 12.4 percentage points from H1 2022, Fitch continued. “The return on capital surpassed the cost of capital, which is 8%-10% at all four major reinsurers.” The four reinsurers reported stable or higher returns on investments in H1 2023 compared to H1 2022, “as (un)realised investment losses weighed less on results and recurring investment income improved thanks to higher interest rates,” Fitch said.

Fitch noted that premium rate increases and rising investment income will continue to support earnings growth during the second half into 2024, “as investment returns increasingly benefit from higher reinvestment yields.”

Following the much harder market conditions seen since the start of 2023, AM Best affirmed that cautious interest in property catastrophe risks has renewed, albeit with much tighter terms and conditions.

‘Never Easy’

Figures $6 Billion

The amount 3M has agreed to pay — $5 billion in cash and $1 million in common stock between 2023 and 2029 — to resolve the Combat Arms Earplug litigation against Aearo Technologies (Aearo) and 3M. In a statement, 3M said the agreement is not an admission of liability but is structured to promote participation by claimants and is intended to resolve all claims associated with the Combat Arms Earplug products.

The number of firm bids received by the federal government after it opened two areas in the Gulf of Mexico off the Texas coast to build wind farms, The Texas Tribune reported. Supply chain businesses and clean power advocates had cheered the opportunity to generate renewable energy, but the apparent the lack of interest in the leases had some offshore wind advocates pointing fingers at Texas’ political climate, which they say favors the oil and gas industry.

Declarations

— Raul Vargas, president and CEO of Farmers Group, said in a statement regarding Californiabased Farmers Insurance’s decision to let go of 2,400 employees, which account for 11% of its workforce across all lines of business.

Falling Ice Chunk

“We heard an explosion, basically. … The loudest pop, bang I’ve ever heard.”

— Jeff Ilg said after a large ice chunk — initially estimated to weigh 15 to 20 pounds — fell onto the roof of his Massachusetts home, damaging it. The Associated Press reported IIg and his wife, Amelia Rainville, suspect the ice fell off an airplane traveling to Boston Logan International Airport. Neither the couple nor their two children were hurt. The Federal Aviation Administration said it is investigating the incident.

Lock Your Car, Take Your Keys

“My wife for 31 years has said, ‘Why don’t you lock your car?’”

— Former North Dakota Gov. Ed Schafer commented after his vehicle was stolen while he was guest hosting a Fargo radio show. Shafer’s 2020 GMC Yukon SUV has a push-button start feature and requires a key fob to be in the vehicle before it can be operated. Schafer had left a spare fob inside, enabling the thief to start it up and drive off.

“Decisions like these are never easy, and we are committed to doing our best to support those impacted by these changes in the days and weeks to come.”

Give up nothing Pay nothing Get a lot

Why do agents join Smart Choice?

• Agents that join Smart Choice retain ownership of their policies, period. That’s right, agents own what they already have, own policies they write in the future and give up nothing.

• Agents pay no startup fees, maintenance fees, or exit fees, ever. Agents are free to be as active with Smart Choice as they want – all while paying zero fees.

Partnering with Smart Choice gives agents the opportunity to grow their business without risking part of their business to do so!

We help you get appointed with top-tier carriers that your customers and prospects want. Our Smart Start program enhances your efforts to expand your product offerings while supporting you in the underwriting process. We can get you access to excess and surplus carriers through our Express Markets program, so you don’t have to turn away potential clients. Plus, we have an entire team of experts to assist you as you grow.

And that’s why agents join Smart Choice!

People

National QBE Insurance Group appointed Julie Wood as Interim CEO North America upon the exit of former QBE NA CEO Todd Jones.

Wood joined QBE in January 2023 as group head of Distribution. She was previously at Marsh as Southeast Partnership and Zonal leader, and member of the U.S. Executive Committee. She also had served as Zonal Casualty leader at Marsh in Atlanta, and previously held senior executive roles at Zurich for 15 years.

Argo Group International Holdings named Greg Chilson president of Argo Surety.

Chilson has served as a strategic advisor to the business since May. He joins Argo from RLI Insurance Co. where he led the surety business and held various roles during his 27-year tenure.

Michael Conklin joined Ryan Specialty Holdings as executive vice president and chief human resources officer. He will be responsible for the firm’s overall people strategy, compensation and benefits, succession planning, as well as talent acquisition and management.

Conklin most recently served as EVP and chief human resources officer for WSFS Bank. He succeeds former chief HRO Lisa Paschal, who has retired.

Ryan Specialty appointed Kathy Guerville to chief underwriting officer of its underwriting management specialty, Ryan Specialty Underwriting Managers.

Guerville has 15 years of insurance actuarial experience,

including seven years with Ryan Specialty where she served in several roles, including senior actuary, actuarial director and deputy chief underwriting officer. Prior to joining Ryan Specialty, she was with Zurich Insurance Co. Ryan Specialty is headquartered in Chicago.

Kristen Hunter joined AXIS Capital Holdings Limited, headquartered in Pembroke, Bermuda, as head of its newly launched North America inland marine unit.

Previously, Hunter worked at Berkshire Hathaway, where she was vice president, marine and inland marine unit leader. Before that, she held senior underwriting roles in inland marine at Brit, XL Catlin, Hiscox and Fireman’s Fund Insurance Co.

Hunter is joined by Ciara Nolan, Sinead O’Shea and Saoirse McNulty, who will serve underwriting roles and were previously part of Hunter’s team at Berkshire Hathaway.

Hunter, O’Shea and McNulty are based in Boston, and Nolan is based in the AXIS New York, New York, office.

Cover Genius appointed David Rudow as its new chief financial officer (CFO).

Rudow has over 18 years of experience and previously served as CFO of the cloud-based technol-

ogy company nCino. Other previous roles include senior vice president finance at CentralSquare Technologies and senior equity analyst and senior technology investment strategist at Thrivent Asset Management.

WTW appointed Paul Lubbers as head of U.S. Affinity & Programs within Corporate Risk and Broking (CRB).

Lubbers joins WTW with more than 20 years of industry experience, most recently serving as global client director for ServiceNow. He also spent 10 years at Aon, where he directed global Affinity segments and provided executive oversight for Aon Affinity’s startup around voluntary benefits, loyalty programs, and discount medical provider organization (DMPO) businesses. Additionally, Lubbers held leadership roles at McKinsey & Company and Allstate.

East

The Hanover Insurance Group, Inc., headquartered in Worcester, Mass., appointed Charles (Chip) F. Hamann president of small commercial.

Hamann has over 35 years of industry experience and has been with The Hanover since 2002. He previously served as the company’s deputy president and chief underwriting officer of small commercial.

Before joining The Hanover, Hamann held the role of president, small business at OneBeacon Insurance and vice president, commercial lines at

Chubb Insurance.

Hamann succeeds Michael R. Keane, who has taken on a new role to focus on the company’s long-term strategy.

MMG Insurance Company, headquartered in Presque Isle, Maine, hired Julia Clukey as vice president of people and engagement/ HR.

Clukey’s experience includes leadership positions at General Electric and WEX, as well as manager field recruiting and operations at Wayfair, senior director development and engagement of the United States Olympic & Paralympic Committee, and director, talent development, VF Corporation.

Jennifer Carl has joined Alliant Insurance Services, headquartered in Irvine, California, as vice president within its employee benefits group in Philadelphia, Pennsylvania.

Carl has more than a decade of experience working with self-funded clients. Before joining Alliant, Carl was a principal with Mercer and a project manager at Aon.

Insurance producer trade organization Big I Connecticut elected Robert Jones as chair of the board for the 2023-2024 term beginning Sept. 1.

Jones is the senior vice president of Fairfield County Bank Insurance Services LLC in Ridgefield, Connecticut.

Jones has more than 35 years of insurance industry experience and is a former

18

Kristen Hunter

Charles F. Hamann

Julia Clukey continued on page

David Rudow

continued from page 16

board member of Connecticut Insurance & Financial Services.

Big I Connecticut has also sworn in the following officers and directors for the 2023-2024 term: Immediate Past Chair and National Director Melissa Gatto from Shoff Darby Companies Inc., in Norwalk; Vice Chair and Secretary/ Treasurer Danielle Brown from Double Eagle Insurance Agency in Fairfield; Director Jay Long from Gerardi Insurance in Putnam.; Director Steve Sadlak from Max Sadlak Agency Inc. in Vernon; Director Dan McNamara from V. F. McNeil & Company in Branford; Director Jason Guerrera from USI Insurance Services in Meriden.

Midwest Shelter Insurance Cos.

President and CEO Randa Rawlins is set to retire effective April 30, 2024.

Her successor, elected by the board of directors, Rockne Corbin, assumes the role of president on Jan. 1, 2024, and CEO on May 1, 2024.

Corbin is a 32-year employee of Shelter, with many of those in claims and reinsurance operations. Most recently, as executive vice president, he led the companies’ operations in claims, actuarial, underwriting, reinsurance and alternate channels.

Rawlins became president on Jan. 1, 2021, and added the CEO title on July 1, 2021. Her retirement will bring an end to her 22-year career with Shelter.

AXA XL, headquartered in Chicago, named Vito Raimondi head of its U.S. Central Zone.

Raimondi is based in Chicago and currently serves as chief

operating officer of AXA XL’s client and distribution management. He joined AXA XL in 2013 to serve as chief operating officer of AXA XL’s excess casualty business. He began his insurance career at Zurich Insurance Group Ltd.

South Central

Tim Temple will become Louisiana’s next insurance commissioner after the only other candidate dropped out of the race for the statewide position.

Temple is a Baton Rouge Republican who spent two decades working in the insurance industry.

The position has been held by Jim Donelon for 17 years, but the 78-year- old Republican said in March that he would not seek reelection.

Bob Quillman joined Burns & Wilcox as regional vice president for Texas.

Quillman is responsible for the collective performance of the state’s three offices — Dallas/Ft. Worth, Houston and San Antonio. He is based in the Dallas/Ft. Worth office.

With more than 30 years of industry experience, Quillman most recently led national and regional sales teams at Kemper Insurance, where he was recognized for consistently delivering profit and growth goals while deepening relationships with clients in Texas and nationwide. He began his long-standing career began at State Farm as a commercial lines underwriter.

Burns & Wilcox said it is experiencing double-digit

growth in 2023. Over the past year, the company onboarded more than 300 new hires and promoted 200 existing associates.

Socotra, based in Austin, Texas, hired Sonny Patel as chief product and technology officer.

She leads the company’s product and engineering teams alongside Product Architect Matt Hamilton, who leads Socotra’s platform strategy and product design.

Patel has over 20 years of experience building and launching products at Fortune 500 companies, including Dell, Microsoft and Amazon.

Southeast SBK Insurance, a subsidiary of Tennessee-based SmartBank, added Drew Vaughn in Chattanooga, Tennessee, as risk manager.

Led by CEO Mark Slater, SBK is an independent insurance agency that offers personal lines, commercial, life, health and transportation insurance products, and has offices in the Southeast.

West Insurance Office of America added Jeffrey Breskin to its western division team.

Breskin has more than 35 years of experience in risk management, claims, safety, and workers’ compensation laws and regulations. He

previously served as senior vice president, risk management at The J. Morey Company Inc., vice president at EPIC Insurance Brokers & Consultants, and director, workers’ comp at Crystal & Company. He will be based out of the Encino, California, branch location.

Insurance Office of America is headquartered in Longwood, Florida.

Pie Insurance, headquartered in Denver, Colorado, appointed four new vice presidents to its leadership team.

Pie promoted Carla Woodard to vice president of claims. Woodard has more than 25 years of claims management experience, including most recently as director of claims at Pie. She previously spent 15 years at Employers Insurance as director of claims automation and workforce experience products.

Jaime Gilliam-Swartz was named vice president of customer service and operations. Gilliam-Swartz has more than 25 years of experience leading voice-of-customer programs, customer experience teams and shared service operations at companies like Eventbrite, Lyft, Intuit, GE and Accenture.

Arash Sadati was named vice president of data science. Sadati has more than 15 years of experience in the application of AI and machine learning, including his most recent role at GEICO.

Kris Bagchi was named vice president of reinsurance. Bagchi has more than 25 years of insurance industry experience, including nine years at TD Insurance/TD Bank in Canada.

Drew Vaughn Jeffrey Breskin

Tim Temple

Special Report: Agency Partnerships

By Andrea Wells

The first agency networks and partnership groups began in the 1970s, mostly to combine books of premium to access markets at a larger scale. Today, the reasons agencies join forces have moved far beyond combined premium, according to some of today’s largest networks. Agency partnerships have evolved into diverse organizations delivering a wide array of products, services, and relationships that agencies need to thrive and survive in the current hard market climate.

The past two years have seen substantial change in the agency network and partnership space, according to Matt Masiello, CEO of SIAA, a national alliance of independent insurance agency members founded in 1995. SIAA added more than 700 new member agencies in 2022.

“What agencies expected from networks years ago is much different than what they either expect, or need now and in the future,” Masiello told Insurance Journal. He says that agency networks and partnerships that have been able to modernize their business model, capitalize, and reinvest in their business to provide sustainable services to their member agencies are those that will survive. Simply aggregating books of business in an effort to gain additional compensation from carriers is a model that will not work going forward, Masiello says.

Steve Pearson, president of ISU Insurance Agency Network, agrees that the agency groups that formed solely to access markets with more clout by

combining their individual books of business are feeling the heat in today’s challenging times.

“Carriers are looking to lower their combined ratio, and lower their cost of doing business,” Pearson said. One of the things they’re examining today is how they partner with agency networks, he said. “Not so much the legacy networks, the people that are in the top 20 networks list, but at other organizations that just created a master code to put their business underneath,” he said.

“From a carrier perspective, as they examine how to reduce cost, they are asking, ‘Why are we paying you more as a group than we would pay you as individuals?’ If the answer is, ‘for no reason,’ then I think those models are under threat,” according to Pearson.

He says this pressure from carrier partners will lead to more consolidation in the agency network space for those groups unable to provide additional resources and services that independent agencies need and want today.

[Editor’s Note: ISU Network chose not to submit data to this year’s Insurance Journal Top 20 Agency Partnership ranking which is derived from voluntary submissions from agency partnerships and groups.]

Agencies need professional services from agency partnership groups and even insurance carriers expect that from these groups, Masiello said. “That’s been a big differentiating factor for us ... acknowledging that agencies need help with technology and improving how their business is run and EBITDA or margin improvement or even things like staffing,” Masiello said.

“Sometimes, they just need somebody to talk to that’s a kindred spirit and is willing to listen to them.”

Agency partnerships continue to play an important role in property/casualty insurance as carriers are re-evaluating where they want to write business, what kinds of business they are willing to write, and with whom they want to partner.

Being a good partner means finding ways that work for all parties, even in tough markets, notes A.J. Lovitt, CEO of Combined Agents of America.

“To be a good network for our members and to be a

because the carriers aren’t making money, Lovitt says.

Instead, now is the time for networks to work on other needed services for their members, he says. “We’re spending a lot of time right now, for example, on things like producer development, perpetuation planning, mergers and acquisitions, and other opportunities to help our members become better.”

Today’s agency partnerships must demonstrate their value to members and their carrier partners to stay relevant in the days ahead, says Keith Captain, president of FirstChoice, a MarshBerry Company. Agencies today want to know what the network or group will do to help them advance and enhance their overall agency and make it a better agency, he said.

good partner for our carriers,” networks have to find ways to “give our members the resources they need to be the types of agencies that carriers want to do business with,” Lovitt said. “When the carriers’ returns were good and profitability was better, networks had more leverage with carriers because networks could provide access to new business in a big bulk,” he said. “Right now, the value proposition that networks offer has changed. “It’s really all about profitability and how you can help the carriers become more profitable.”

With the current challenges facing the property/casualty industry, agency networks know that enhanced (profit sharing) compensation is not going to be the same as it was

“Agencies are evaluating and asking some additional questions … ‘What’s the contract look like? What is it that I’m going to get? What services do you have? What data do you have? What education do you have? What technology support do you have?’ The list goes on,” Captain said. “You’re having more people ask those questions than in the past.”

Captain also expects to see more consolidation among agency networks.

“Agents want to separate themselves from the ‘old school’ networks — what I call commission clubs — where everybody just holds hands together and goes to carriers to ask for more money,” Captain said. “Those (networks) are getting few and far between and are feeling stress and pressure from carriers because the results aren’t as good as continued on page 22

'What agencies expected from networks years ago is much different than what they either expect, or need now and in the future.'

Special Report: Agency Partnerships

continued from page 21

they once were.”

Agencies, and carriers, want to know what a network’s true value proposition is in the agency-network-carrier relationship, Captain added.

The value pr great deal to do with the relationship, too, said Jessica J. Hendricks, vice president, agency development, at EMC Insurance Companies, adding that some of EMC’s largest agency relationships in aggregate are in the network space.

But she understands that networks are different in size, scope and what they can provide their members and carrier partners.

“They’re all very different but what EMC looks for with our partnerships is alignment with our relationship-based model,” she said. “We have our branch footprint countrywide, and so we really look to partner with networks and agencies that also value that local relationship and decision making.” It’s at the local relationship level where conversations between a producer and account manager and a local underwriter or territory manager happen. That’s where partnerships grow together so they can be successful, she added.

Relationships matter even at the network level, Hendricks said. “We really want to have those partnerships that value the relationship first.”

Hendricks adds that agency networks driven solely by market access or aggregation of contingencies are not groups

that EMC would want to partner with.

“Those are the ones that we don’t partner with as much, or put as much effort in,” she said. “We’re not looking for business just to keep coming in the door from all over. We want to really hone-in on where we want to write business and who we want to write it with.”

d insurance market is a critical driver of change within the agency network space, according to Hendricks.

“Simply stated, the market is so challenging and disruptive right now that all relationships are impacted,” Hendricks admits. “I wouldn’t say it’s necessarily all negative by any means, but carriers (all the way) through the reinsurance space are pressured,” she said. “We are really having to take a look at our books of business.”

Hendrick says carriers are not evaluating their book from a network perspective as a whole. “But we’re having to have those difficult conversations on the pieces of business or the lines of business that are causing us profitability issues,” she said. “We are working with that agency partner to say, ‘Hey, what can we do? Do we have to write this? Can we find another market? Are there ways to make an account more appealing with pricing or with loss control?’” Everyone’s having to get more creative because of current market conditions, she added.

For some agencies, especially California-based agencies, current insurance

market conditions have been extremely challenging and networks are doing what they can to offer assistance, says Tiffany Bertolini, president of Pacific Interstate Insurance Brokers (PIIB).

“I was talking to an agency last week who started shop during the pandemic and now is seeing these challenges. … He described PIIB as his lifeline. … We don’t have solutions and markets in California, but we try to just support them as much as possible right now,” she said. “Our team is having phone calls with members and saying, ‘Let’s try to help you get through the next few years because carriers [in California] don’t want new business right now.’”

Aside from the challenges in the California market, PIIB members need to find qualified talent to fill roles, Bertolini said. “That’s one of the number one needs of our agency base.”

The rapid pace of technology advancement is also a hurdle for some agencies, she added. “I feel like we’ve talked about that for so long, but it continues to change so drastically and now with all of the AI availability out there, agencies really need help navigating decisions on what technology is best for them.”

Bertolini says the future of networks will be one that demands more supportive services for its membership.

“We’re going to see a shift,” she said. “Our style has always been very hands off. … We get you set up with your markets and you have the protection of the group and then run your agency the way you see fit,” she said. That style will still exist, but in a future where networks must deliver more resources

and services for member agencies. “And at the end of the day, that network, agency and carrier, what we want is profit,” she said. And networks must focus their efforts on how to get there.

Preeminent Roles

Renaissance’s Robert Bondi, CEO, is happy to see the changes happening in the agency network space today. “I think it really illustrates that networks are becoming a preeminent structure in the independent agency distribution channel.”

The added capital entering the agency network space is helping, too, he said. “It’s more than just this collection of agencies pulling together; it’s actually a real important piece of the business.”

Renaissance itself received a capital investment in 2018 by Long Arc Capital that enabled the organization to expand services and geographic reach by acquiring additional members and two other networks: Agency Network Exchange and United Valley Insurance Services.

Bondi, too, sees a future agency network world where additional consolidation takes place. “I think the consolidation [in the agency network space] and the strategic combining of certain groups really is kind of evidence that networks are maturing into the next phase of what they’re trying to do,” he said.

Like others, Bondi agrees that the most difficult challenge agency partnerships will face in the immediate future is the hard market. A successful future in these times will depend on what kinds of services and resources networks

continued on page 24

Special Report: Agency Partnerships

Insurance Journal's Top 20 Agency Partnerships

(Ranked by 2022 Total P/C Revenue)

Employee count for these groups does not necssarily include all affiliates responsible for total revenue. This list includes agency partnerships such as networks, aggregators, clusters and franchise organizations, all of which play an important role in the independent agency system today.

Special Report: Agency Partnerships

continued from page 22

are able to offer, he said. “It’s really about delivering value to members and the more value you can deliver and demonstrate to them the stronger network you can become,” he said. “So, the networks who can help agency members stay profitable and deliver profitable results to carriers will be better insulated from these market conditions.”

Bondi also believes that how carriers differentiate and compensate networks going forward will be key to their survival. “The ones that are really delivering value will survive, and those that aren’t, will continue to struggle,” he said. “Understanding the strength

of those carrier partnerships is really an important dimension that you need to consider. I think it is more important today than ever before.”

“It’s really how can we proactively direct business to certain carriers where the appetite is appropriate,” he said. “When a carrier works with a network who can help them see that view, that means a lot to them. It means knowing where the next incremental value lies.”

Much like prospecting in an oil field, he said. Networks should be able to prospect and find the next big opportunity for both their members and their carrier partners, he added.

Meredith Rominger, chief operating officer at SecureRisk,

an agency network owned by nearly 100 exclusive independent insurance agencies, says carriers, agencies and their agency networks are partners — through changing economic and market conditions.

“We grew these books by hundreds of millions of dollars over the last 10, 15, 20 years as a partner,” Rominger said. “We did that together. We all are in it together, whether it’s going well or not.” That’s an important message in today’s challenging property/casualty market, she said.

“There’s definitely a lot more pressure out there,” added Brian Bandrowsky, CEO at SecureRisk. “Right now, the marketplace is bad, particularly

Growth and Change in the Partnership Market

For 10 years Insurance Journal has recognized some of the nation’s largest agency partnerships and networks in its annual Top 20 ranking. While the names of networks and partnerships have changed a bit over the years, their growth in property/casualty revenue over the past 10 years demonstrates their prominent position in independent agencies today.

In 2014, Insurance Journal’s Top 20 Agency Partnerships together held $1.4 billion in total P/C revenue. In 2023, the Top 20 now represents $7.7 billion in total P/C revenue. [For a complete view of all 10 years, visit: https://www.insurancejournal.com/top-20-agency-partnerships.)

In 2022, the Top 20 Agency Partnerships grew by $340 million in total P/C revenue from 2021 to 2022 and by nearly $1.8 billion in total P/C premium from 2021 to 2022 (See page 23 for the 2023 Top 20 list, ranked by 2022 P/C revenue).

That growth appears to have continued into 2023, according to some of the agency partnerships interviewed for this report. So too has the trend of consolidation in this sector. In fact, 10 of the top 20 agency partnerships saw merger and/or acquisition activity in 2022.

• In January 2022, Renaissance acquired Agency Network Exchange and United Valley Insurance services.

• In July 2022, Combined Agents of America acquired 22 of the 30 members of Bainswest when the network made the decision to disband in 2022.

• In August 2022, First Choice Agents Alliance and the MarshBerry Platform merged to create FirstChoice, a MarshBerry Company.

• Then, in October 2022, Keystone Insurers Group Inc. announced it had acquired some of Bainswest agencies in Oklahoma and Missouri.

• Also in October 2022, SecureRisk and Georgia Agency Partners merged.

According to the Insurance Network Alliance’s 2022 Insurance Networks Study, there are more than 150 insurance networks nationwide, representing some 22,000 agencies. The INA study estimates that total network premiums controlled by networks and agencies is about $138 billion and total network-controlled premium is about $66 billion. Insurance agency networks’ total network-controlled premium accounted for 5% of the $1.28 trillion in U.S. insurance industry net premiums written, according to the Insurance Information Institute in 2020.

where we are primarily located (Georgia). But at the end of the day, this works if we’re a partner with the carrier and they’re a partner with us.”

Bandrowsky says when carriers truly partner with agency groups and work to make the best agreements with their agency networks, they end up getting the best business and the best results. “We have more influence, and they have more influence on those agencies to get better business and be more profitable.” He stressed it’s not always about the money/profit sharing, either. “There are other ways to make a network, a group agreement, work,” he said. “But our agreement has got to have the better rewards to get the better results.”

Better rewards mean different things to different agency members. It’s the job of the agency network to understand what value rewards have to their members. For example, Bandrowsky says SecureRisk has an agreement with a premium finance firm that offers members either some additional compensation, or a reduced rate. “In some cases, we’ll subsidize some of the tools — that’s value to the agency, but also value to the carrier, too.”

Agencies need to know what their agency networks can bring to the table. “It’s a matter of what other resources can be offered. It’s not just the aggregation for better profit sharing. It’s not just market access. It’s more about vendors, value added services, resources, and having a quality support staff to provide marketing, accounting, etc. Anywhere we can look at centralizing services to make things more efficient,” according to Bandrowsky.

Closer Look: Small Contractors

The Unique Risks of an Artisan Contractor

By Patrick Wraight

When you hear or read the term, “artisan contractor,” what do you think of?

Don’t search it, and if you deal with artisan contractors, don’t shout out the answer. I can tell you that I thought of custom cabinet makers and carpenters who do intricate woodwork that reminds you of the artists of generations past. It turns out that artisan contractor is a term for any contractor that does specific construction work.

According to several insurance company websites, an artisan contractor is any

business with skilled workers who do work on customers’ premises. One insurance company lists tree surgeons, piano tuners and handypersons as artisan contractors. The piano tuner made sense to me because I’ve watched a professional piano tuner at work and it is amazing, especially when he finishes the tuning job and tries out the piano.

Back to the point. An artisan contractor is any skilled worker (or team of workers) that is called to a location to do a specific job. Some insurance companies add general contractors to this list, but for our purposes, let’s consider the small, artisan contractor who

may have a few employees, including his little sister — hired so she can save some money over the summer.

What are the unique risks of an artisan contractor?

The nature of an artisan contractor is such that they likely have little to no premises liability. The exception to that might be if they invite clients to their shop to look at some of the work that they are working on, or to consult on a job for the client. Otherwise, we are considering their premises exposure to be essentially nil. That brings us back to the question, what are some of the unique risks of an artisan contractor?

Unfamiliar Locations

Our definition tells us that the contractor goes to someone else’s premises, so the contractor will have to deal with the risks associated with being at a new location for each job. The fact of a new location brings risk with it. The contractor does not know what will be at the location. There may be an animal that doesn’t like contractors. There may be a homeowner that looms over him asking questions and checking each step of the work.

Another risk associated with a new location could be finding it. You would be surprised how easy it is for someone to get

continued on page 26

Closer Look: Small Contractors

lost trying to get to where the work is. We have had several contractors and delivery drivers get lost trying to get to our home. It is common for us to get a phone call from someone about five minutes before they are scheduled to arrive at my house, asking where the house is. Usually, they followed incomplete GPS directions that took them to another county.

Labor Issues

Small contractors do jobs that range from the very simple to the very skillful and when the contractor is a solo entepreneur, labor issues are easy. The contractor does the work and doesn’t have to worry about the quality. It will be the quality of work that the contractor is generally comfortable with. The problems arise when the contractor needs to hire other people to do some of the work. There is the risk of not hiring. By not hiring anyone, the contractor limits themselves to the work they can do. Depending on the work

that needs to be done, travel time, and other obligations, a contractor can reasonably expect to be able to put in eight to 12 hours of work in a day, which seems significant, but it’s only one person working.

Hiring can create risks for the contractor, as well. An inexperienced worker might create some cost savings but does not effectively multiply the efforts of the contractor. It takes time to learn how to do this contractor’s work well, whether they are a plumber, a tree surgeon or a piano tuner. The contractor has a time multiplier in an experienced employee if the employee stays and grows in her skills.

Hiring also creates the risk of having to repair work that was improperly done. The contractor may feel comfortable with the skill level of the employee and let them do part of a job unsupervised. For instance, a contractor that did some work for us let his brother do some painting. When that painting was not done well, the contractor found himself returning to

my house to get the work done correctly. That was time spent that did not return any revenue and it came at a cost.

Material Protection

Imagine the smallest, boxiest car you can think of and then imagine it pulling a small trailer behind it. That is the vehicle that a contractor friend uses.

In that little trailer is every tool that he thinks he might possibly need for the different job sites that he will visit over the next few days because he doesn’t want to load and unload his car every day.

He doesn’t keep anything expensive in the trailer, unless he is taking it directly to a job site because of the risk of it being stolen or lost. As a small contractor, he often buys materials as he needs them because

it’s too expensive and risky to try and store those materials long term. Of course, since his risk management technique is to buy the materials that he needs when he needs them, he doesn’t often see much price reduction and he loses productive time when he has to buy materials on the way to the jobsite. Or when he discovers that he doesn’t have something that he needs, he loses time because he has to stop and go to the hardware store.

The Insurance Angle

You’re thinking to yourself — this doesn’t seem to be insurance related — but risk is bigger than insurance. Some of these risks that the small contractor faces are insurable, and others are not. Some are insurable but the cost of insurance can be prohibitive for the small contractor.

The contractor can buy CGL that should cover any liability exposures related to the operations, products, and completed operations. There are auto policies available to cover the exposure of driving to wherever the work is located. There are inland marine policies available for any mobile equipment, portable tools, and more.

But insurance is only a small part of an overall risk management strategy, program, or mindset. Additionally, those risks that the small contractor faces that aren’t insurable don’t just disappear because there is no insurance for them. The contractor makes risk management decisions, often based on little more than a reaction.

It’s our job to help professionals learn about the risks that they face and how they can deal with them.

[A]n artisan contractor is any business with skilled workers who do work on customers’ premises.

Montana Brokerage Owner Admits to Defrauding Customers

Kileen Moria Hagadone, 57, owner of Rosebud County Insurance Inc., pleaded guilty to wire fraud and to aggravated identity theft. Hagadone faces a maximum of 20 years in prison, $250,000 fine and three years of supervised release

on the wire fraud crime and a mandatory minimum of two years in prison, a $250,000 fine and one year of supervised release on the aggravated identity theft crime.

A sentencing date will be set before a

U.S. District Judge. Hagadone was released pending further proceedings.

The government alleged in court documents that Hagadone owned and operated Rosebud County Insurance, an insurance brokerage business. Hagadone reportedly received insurance payments from customers but failed to send the funds to insurers. Instead, Hagadone misappropriated the money for personal expenses. The scheme reportedly ran from about 2020 until April 2023.

The government further alleged that one of the victims was the Chief Dull Knife College of Lame Deer, which engaged Hagadone to find an insurance policy for the college. Hagadone did so, and the negotiated premium for the policy in November 2021 was $91,883.

The college reportedly paid Hagadone the full amount. Instead of sending the premium to the insurer, Hagadone con-

tracted to finance the college’s insurance premium with a premium financing company and forged the signature of a college representative, enabling Hagadone to keep most of the payment without immediately cancelling the policy. Eventually, Hagadone embezzled too much money from her business trust account and could not pay the financing payments, and by April 2022, the college’s insurance was terminated. Hagadone concealed this from the college and falsely represented that the college was insured, according to the U.S. Attorney’s Office.

Assistant U.S. Attorney Colin M. Rubich is prosecuting the case. The Montana State Auditor, Commissioner of Securities and Insurance, FBI and Rosebud County Sheriff’s Office conducted the investigation.

Business Moves

The partnership allows the company to take advantage of Fortuna’s wide array of carrier and broker relationships and its expertise in the property insurance market. Fortuna will operate as Fortuna General Insurance Agency, a Towerstone company.

Fortuna is a privately owned independent insurance wholesaler. Its eight team members specialize in preferred and hard-to-place property risks including apartment complexes, lessor’s risk and residential condos.

Towerstone is a Dallas-based wholesale insurance brokerage and subsidiary of IMA Financial Group.

East

One80 Intermediaries, GMI Insurance

One80 Intermediaries, a specialty insurance broker headquartered in Boston, has acquired GMI Insurance, a Pennsylvaniabased managing general agent specializing in commercial transportation and related insurance.

Established in 1980, GMI Insurance initially focused on auto rental coverage and diversified its offerings to include a monoline business auto program over 20 years ago. The program targets contractors, artisans, building supply dealers, retailers, manufacturers and wholesale distributors. In subsequent years, GMI added workers’ compensation, cannabis transport, general liability, auto rental fleet and contingent auto lease programs to their portfolio.

One80 Intermediaries is a privately held firm with offices throughout the U.S. and Canada.

Midwest

Signers National, Whittaker Agency

Signers National acquired Whittaker Agency, which will be run under Lamb Insurance Services, a member company and retail agency in the Signers National family of businesses.

Whittaker is led by Danny Whittaker in Rockford, Illinois.

Whittaker offers leading expertise and coverage insuring churches and religious organizations in Illinois and some surrounding states.

Southeast

Tenco Services, James C. Greene

Nashville-based Tenco Services Inc., a multi-line claims adjusting firm in six Southeastern states, plans to acquire the James C. Greene adjusting company in Raleigh, North Carolina.

Greene has offices in North and South Carolina and also has a presence in Georgia and Virginia. Both firms are family run and are two of the oldest independent adjusting firms in the South. Greene began in 1932 and Tenco has been operating since 1947.

The combined firm will have more than 75 adjusters.

Oakbridge Insurance Agency, Cole Agency

Oakbridge Insurance Agency has expanded with the acquisition of the Cole Agency in Montezuma, Georgia.

Cole has specialized in poultry insurance since 1989 but also offers coverage plans for others in agribusiness, including policies for construction, equipment, vehicles and general liability. Kevin Cole is co-owner. The agency will maintain its office in Montezuma.

Oakbridge, also based in Georgia, was founded in 2020.

West

Towerstone, Fortuna General Insurance

Towerstone acquired Fortuna General Insurance in Simi Valley, California.

Gibson, Brisk Advisors

Indiana-based insurance group, Gibson, has entered Utah through its acquisition of Brisk Advisors.

Gibson’s new Utah office is in Midvale. Brisk Advisors (formerly Insurance Network) has provided risk management and personal insurance solutions to clients for more than 50 years.

Gibson is a team of risk management and employee benefits professionals with offices in Arizona, Illinois, Indiana, Michigan and Utah.

Signers National, Eclipse Risk Insurance Service

Signers National acquired the nonprofit insurance company, Eclipse Risk Insurance Services, in California.

Signers National also acquired the nonprofit insurance firm Whittaker Agency in Illinois.

The two new businesses will be run under Lamb Insurance Services, a member company and retail agency in the Signers National family of businesses.

Eclipse Risk Insurance Services is a nonprofit and human services insurance provider based in California. It specializes in the home health space and offers coverage for businesses on the West Coast.

Eclipse Risk Insurance Services is led by Frank McDermott, who will continue to lead the group’s operations as a member of the Lamb Insurance team.

Signers National is a group of insurance companies serving clients across the U.S.

Idea Exchange: Is It Covered?

Logic & Language and Forms & Facts Wear and Tear Exclusions Worn and Torn

5. Nesting or infestation, or discharge or release of waste products or secretions, by insects, birds, rodents or other animals;

6. Mechanical breakdown…;

7. The following causes of loss to personal property:

a. Dampness or dryness of atmosphere;

b. Changes in or extremes of temperature; or

scratching, etc.: “The excluded perils in this group are characterized either by their predictable or expected occurrence. They are either the normal, unavoidable consequence of use of the property in question or detectable and preventable with proper maintenance.”

IRMI supports its interpretation by citing case law such as Contractors Realty Co. v. Ins. Co. of N. Am., 469 F.Supp. 1287, 1293 (S.D.N.Y. 1979) where the court opined that, “Losses due to normal wear and tear are not fortuitous … as such damage is inevitable.”

By Bill Wilson

For whatever reason, recently I’ve had a slew of questions involving wear and tear exclusions. Perhaps that’s a product of the hard market where claims are sometimes examined more intently, especially with regard to policy exclusions. To paraphrase — torture words and they’ll confess to anything. But all too often I’ve seen fortuitous losses treated as un-fortuitous losses in order to trigger certain “maintenance” types of exclusions. For example, consider the following sets of exclusions, the first appearing in a commercial property policy and the second in a homeowners policy:

Commercial Property Policy:

1. Wear and tear;

2. Rust, corrosion, fungus, decay, deterioration, hidden or latent defect or any quality in property that causes it to damage or destroy itself;

3. Smog;

4. Settling, cracking, shrinking or expansion;

c. Marring or scratching.

Homeowners Policy:

a. Wear and tear, marring, deterioration;

b. Mechanical breakdown, latent defect, inherent vice or any quality in property that causes it to damage or destroy itself;

c. Smog, rust or other corrosion, or dry rot;

Can you see what, arguably, all of these exclusions have in common?

As the International Risk Management Institute (IRMI.com) said about a list of exclusions that included wear and tear, rust, corrosion, deterioration, latent defect, settling, cracking, shrinking or expansion, mechanical breakdown, marring,

Similarly, in City of Burlington v. Indemnity Ins. Co. of North America, 332 F.3d 38 (2d Cir. 2003) the court explained: “Normal wear and tear … is not an insurable risk, but is a certainty.”

Black’s Law Dictionary defines wear and tear to mean, “[D]eterioration or depreciation in value by ordinary and reasonable use of the subject matter.” In other words, these exclusions apply to long-term damage that occurs through the natural use of property, the damage being gradually incurred through routine, frequent use.

Exclusion Misapplications

In one claim, an expensive hardwood floor in a home was irreparably damaged by a party guest in stiletto high heeled shoes while they were dancing or otherwise moving about. The claim was initially denied under the open perils homeowners policy, citing the “marring” and “wear and tear” exclusions. If the floor was damaged over a period of years due to normal wear, that is excluded, but not this type of damage.

In two other litigated claims involving open perils homeowners policies, expensive counter and floor tiles were damaged when a wine bottle and a hammer, respectively, were dropped. Both courts ruled that the exclusion for “wear and tear, marring, and deterioration” did not apply for the reasons previously stated. The damage was caused by the abrupt dropping of objects. There was no gradual “marring” through use over time.

In another claim under a commercial property policy, merchandise in a clothing

store was damaged by a leak through a dilapidated roof. The adjuster initially cited a “wear and tear” exclusion but these exclusions typically apply only to the property that, itself, is worn and torn … in this case, the roof. Usually, ensuing loss is not excluded if otherwise covered. In this claim, unfortunately, there was a separate exclusion for interior water damage.

Most recently, an agent sent me a claim denial for damage to the roof of a home where the adjuster wrote, “We reviewed the facts of your claim and have determined hurricane force winds caused minor damage to your tile roof. The winds pushed a tree onto your roof that had to be removed. At this time, these damages to the roof appear as a result [sic] wear, tear, and/or deterioration and will …” not be covered.

Of course, it’s covered as a windstorm claim. It doesn’t matter if the roof is worn or torn as far as coverage is concerned. And how much wear and tear could there have

been if hurricane force winds only caused minor damage? Valuation could be another matter. If coverage is on an ACV basis, then wear and tear is a material issue as to how much coverage is provided, but not whether coverage is provided.

The premise that these types of exclusions only apply to the property that is actually worn and torn could more effectively be communicated to policyholders if language similar to that in the ISO Personal Auto Policy (PAP) was used.

To illustrate, an adjuster denied damage to the undercarriage of an auto that resulted when a tire blew out. The PAP excluded [emphasis added]: Blowouts, punctures or other road damage to tires.

Note that the exclusion applies to damage “to” the tires, not any resulting physical damage to the vehicle.

In another claim, an auto was damaged when it ran off the road and hit a light pole as the result of a blown tire. This policy excluded [emphasis added]:

Damage due and confined to:

a. Wear and tear;

b. Freezing;

c Mechanical or electrical breakdown or failure; or

d. Road damage to tires.

Using the “and confined to” and the “to tires” language makes it inarguable that the exclusion applies only to damage to the property in question. An important caveat is that you must read the actual policy language carefully. With some policy forms, particularly non-ISO forms, you may encounter exclusionary language akin to that found in the list of “anti-concurrent causation” exclusions found in ISO and other forms. As always, RTFP!

Wilson, CPCU, ARM, AIM, AAM is founder and CEO of InsuranceCommentary.com and the author of six books, including “When Words Collide…Resolving Insurance Coverage and Claims Disputes.” Email: Bill@InsuranceCommentary.com.

Idea Exchange: The Competitive Advantage

Benchmarks and Value

Many of the benchmarks readers see in this industry have never been tested for validity. No one knows if the metrics matter.

By Chris Burand

Metrics should not be used if their value is untested. I see many insurance companies and insurance agencies make bad decisions resulting in damaging performance because leadership aspires to some metric they’ve been led to believe is important. The metric in some cases is useless and in others, the metric is inversely important in that by pursuing that metric, performance actually deteriorates.

Growth above a certain percentage is an excellent example of perverse metrics. A.M. Best annually publishes its impairment report, which shows excessive growth is a leading cause of carrier impairments. One might say premium growth is like medicine. The right amount is healthy and too much destroys.

Using growth as a metric then, the consultant or CFO preaching the value of growth should be saying something like (for example purposes only): “Our growth is 4% and we need to increase it to 6% because between 5% and 15% growth, value increases. However, we need to be careful not to exceed 15%. Carriers growing faster than 15% too often become financially impaired because organically

growing surplus at 15%-plus annually is nearly impossible.” I’ve made up these numbers — I have not tested them — but this should give the reader an idea of how performance metrics should be stated and used. (In reality, growing organic surplus more than 15% annually is quite rare.)

A major weakness of agency performance metrics is that the data is collected by survey. The fact is, agency owners mispresent their numbers in those surveys. Not all of them do this and not all purposely misrepresent their data. But I’ve been analyzing agency financials, not survey data, for 30-plus years and most agencies’ data are materially lacking in quality. The survey data is even worse.

Another major weakness in most of these agency and carrier benchmarks is the use of averages. Averages have no value without testing the underlying data patterns. Averages are only applicable if the data pattern shows a normal curve (which you’ll find in testing peoples’ heights, for example). Normal curves rarely exist in performance-based environments. In performance-based environments, you typically find Pareto curves, colloquially known as the 80/20 rule. In this pattern, a few really good performers materially skew the average making the average fairly useless and often worse, completely misleading.

I’ve back-tested the most common benchmarking surveys and, in many categories, the averages are actually impossible

to attain in the real world. This is because the wrong tool, the “average,” is being used.

One CEO recently said that because he didn’t understand statistics, he’ll continue to use averages even if it is wrong. Brilliant. That’s why he must be paid big bucks. Should you ignore the right medicine just because you don’t understand chemistry?

Relying on the wrong metrics is often more likely to damage than improve an agency or carrier. Ignorance of statistics is dangerous medicine.

What Does Matter? The Answer Varies.

To determine three key factors that affect insurance brokerage values, I used the audited, publicly available 10-Ks of the seven publicly traded brokers/franchise independent agency model distributors. I obtained the data from Seeking Alpha. I used single factor regression analysis, and I tested both the change in stock price and the P/E ratio. P/E ratios are similar to the multiples of EBITDA you hear about relative to what regular agencies are selling for. If you hear someone say, “Agencies are selling for 8 times EBITDA,” conceptually, that is close to a P/E ratio of 8 times, although the definition of earnings is materially different.

My goal was to identify what factors correlate — I did not test for cause, only correlation — to a higher multiple. I tested for profit margins (nearly a 0% correlation with all five profitability measures),

growth, and so on. The correlations were all random — except for the current ratio. In other words, profit didn’t correlate to a higher stock multiple. Neither did the growth rate. The current ratio measures how well a company’s current assets outweigh their current liabilities. And that measure had an almost perfect correlation of 0.9 (1 is perfect and 0 is completely random, and quite a few measures tested were close to 0).

This result seems to indicate that the brokers who manage their current liabilities relative to their cash and premiums receivable are valued much more highly than those who are lax. This makes sense and likely applies to regular insurance agencies, too.

I then tested the same factors again to learn whether a correlation exists with the change in stock prices. The results were largely the same in that many metrics had zero correlation. However, two factors had

fairly strong correlations, though not as strong as the current ratio.

The first correlation surprised me. The slower the year-over-year revenue growth rate, the greater the increase in stock price. In fact, the growth rates seemingly most valued were substantially less than the industry’s average.

The second correlation that mattered somewhat more was the profit margin available to ordinary shareholders, including extraordinary items. The more profitable the broker, the more their stock price increased over the last two years. Yet this particular measure of profit showed a margin of less than 21% for all the brokers.

A major caveat is that this industry only has seven publicly traded insurance distributors. That said, taking the three factors that have high correlations with value in total, the market seems to be valuing distributors/agencies/brokers that manage their balance sheet well with

moderate growth and moderate profit margins the highest.

As for carriers, the results are more complex and vary materially by line of business. In other words, the carriers growing more quickly in one line might be succeeding because they manage their expenses extraordinarily well (true) but not succeeding in another line because the competition is bent on buying market share by underpricing their products. Smart carrier executives manage their companies by line of business.

If you want to increase the value of your organization, use the correct metrics. If you need the correct metrics, let me know. I am fairly certain I possess the best metrics, but beware, these metrics are strong medicine.

Burand is the founder and owner of Burand & Associates LLC based in Pueblo, Colo. Phone: 719-4853868. E-mail: chris@burand-associates.com.

Idea Exchange: Agency Management

5 Top Mistakes Every Independent Agent Should Avoid

One of my favorite sayings is “failure is tuition for something else.” I adopted this phrase during a conversation with another senior leader one day on the consequences of some mistakes we’d made organizationally. I think that failure is a great teacher.

vision. When we look at the balance sheet, however, I usually have to ask, “where is the capital you need to do these things?”

attitudes. But employees who don’t fit are not as productive as they should be. They are also culture destroyers.

By Tony Caldwell

From time to time, airplane pilots intentionally take off and manipulate their controls to allow the plane to start falling. By understanding how to correct the plane, they learn something new and become better pilots. While I’m not recommending anyone intentionally go into free-fall mode, learnings can be found in corrective action, as well as in mistakes.

Like pilots, agency owners who harvest learnings from their mistakes, or even better yet, learn from the mistakes of others, will benefit. They will grow more quickly, more profitably, and with greater predictability while enjoying less stress.

Like all of us, I’ve made mistakes — sometimes more than once. Below is a list of mistakes I’ve not only made myself, but that I see other agents falling victim to routinely. Fortunately, they can be easily corrected with the right approach.

1. Not Investing Enough

In the early days of a business’ existence, it seems that all the owner does is invest. Soon enough, the long-looked-for day of profitability arrives. The temptation is to harvest all those dollars to make up for years of sacrifice as a reward for risk and hard work. While that is completely understandable, taken too far it can be a growth killer, and sometimes even a business killer. Nothing can thrive without being fed.

I talk to owners of agencies of all sizes who often have big goals for growth. They usually come with plans to hire more people. Often a new building, second location or other investment is a key part of the

As a banker, I need to see at least 20% of the capital needed for a project in the borrower’s account, over and above at least six months’ working capital, to feel secure in making a loan. As an insurance agency owner, I think it’s imprudent to hire a new producer on borrowed money because they often fail. Yet, I see many agencies whose funding plan, if we can call it that, is either to borrow or finance out of cash flow — an approach that could quickly prove problematic with dramatic market fluctuation.

As my former agency partner said, the correct course of action is to “pay the agency first.” Set a minimum profitability level and one for retained cash (not “retained earnings” which can include non-cash items) — 10% is a good starting figure to consider. If you develop the habit of retaining some cash on your balance sheet, you’ll never run out of working capital, be able to take advantage of hiring opportunities at will, and always be able to borrow money at reasonable rates and terms.

2. Not Firing Fast Enough

We live in a time when talent is scarce. This exacerbates the tendency of many small business owners to tolerate poor performance or even worse, poor

Jim Clifton in his book, “The Coming Jobs War,” points out that engaged employees are often three or four times as productive as unengaged ones. And what he calls “actively disengaged” workers destroy businesses, or at least try to. When you have a problem person who can’t be corrected, you’re better off letting them go immediately. Your team will support you and you’ll always be better off. Rip off the BAND-AID.

3. Not Saying Thank You Properly

It drives me crazy when I give something, like theater tickets, to someone who doesn’t say thank you. It also causes me to make a mental note not to do that again.

Your customers and clients feel the same way.

Yes, we often say “thank you for your business” when someone places their coverage with us. But that can be as meaningless, and as impactful on the recipient, as “hello” is at the beginning of a phone call. It is simply not heard. And if not heard, it certainly can’t be effective.

The point of saying thank you is to express gratitude. If you want to be sure that message gets across there are two methods, I find stand out and work 100% of the time:

• Put it in writing — preferably in your own hand. This is a forgotten art, which just serves to magnify its impact and effectiveness.

• Explain why you are thankful. What difference does the client make to you personally or to your business? When you express their value and your gratitude, they not only feel appreciated, they feel closer to you. It creates an emotional

bond that can prove to be far stronger than a lower price.

I’ve followed this strategy for over 20 years and my personal retention is over 95%. Try it!

4. Not Asking for All the Business

The average independent insurance agency writes less than two policies for each customer. This is despite the fact that every consumer buys an average of at least two or three policies, and business customers often buy many more. We all know the truism and I’ve lived it: Customer stickiness grows with policy count.

So, why is the industry average so pitiful? I think it’s often because we simply don’t ask.

Fixing this is straightforward and simple. Set an expectation that every client will be offered a quote, every year, for every policy they buy. Measure your staff’s performance against that standard. Create

a bonus system to reward it. Finally, set a standard that you fire every customer after a reasonable period of time (say two years) who is monoline or doesn’t buy at least most of their policies from you.

That’s a stick to incentivize your staff to go with the carrot. Implement this and see how your retention, referral rate, revenue and profitability climb while frustration diminishes for everyone.

5. Not Setting Minimum Standards

As a restaurant server in college, I learned that either I was in charge of my customers’ experiences, or they were. When I took charge of their experiences, I made more money. Along the same lines, agency owners need to take charge and set minimum standards with their employees and clients.

For your clients: Will you write an auto and home account without an umbrella? Will you sell minimum or statutory limits? I wouldn’t.

For your team: Will you accept performance that meets only a minimum threshold? I wouldn’t.

During the years that Jack Welch was CEO of General Electric he demanded 20%-plus top line growth every year of every business unit in the company. That’s hard to do in a big organization — but impossible if you don’t set the standard. He also pushed managers to cut their underperforming staff.

Your minimum standards should be communicated and implemented. Otherwise, your customers and employees are running the business, not you. You’ll have more aggravation and make less money while providing scattered, harried and substandard service.

Business owners often think new hires, a new building or a new marketing or sales plan is the answer to renewed or perpetual growth. While they are all important, managing the business, and avoiding these common pitfalls can be even more valuable.

Caldwell is an author, speaker and mentor who has helped independent agents create more than 250 independent insurance agencies. Website: www.tonycaldwell.net. Email: tonyc@oneagentsalliance.net.

Welcome to Insurance Journal’s 2023 Professional Liability Directory. We’ve compiled this directory of professional liability providers to assist independent agents and brokers in their search for markets. In today’s highly litigious world, professional liability coverages have become critical insurance for many businesses. This directory has been designed to serve as a quick reference guide that allows users to locate carriers, wholesale brokers and managing general agencies offering professional liability coverage. The information published in this directory was submitted directly by the providers and includes their contact information, Web site and states where coverage is available. For a complete listing of markets offered by providers named in this directory, visit: www.insurancejournal. com/directories and type in “professional liability” under the Excess & Surplus, “find a market” option. To submit a listing for future directories, e-mail Kristine Honey at: khoney@insurancejournal.com. We hope you find IJ’s Professional Liability Directory to be a useful tool. To comment on this directory, or any other IJ resource, please e-mail: editorial@insurancejournal.com.

Professional Liability Directory - Alphabetical Directory of Markets

360 Coverage Pros

8430 Enterprise Cir, Ste. 200, Lakewood Ranch, FL 34202

Phone: 877-524-0265

Email: info@360coveragepros.com

Website: www.360CoveragePros.com

Access E&S Insurance Services (VA)

2001 N. Lincoln St., Arlington, VA 22207

Phone: 703-248-2566 ; Fax: 703-248-2565

Email: tim@access-es.com

Website: www.access-es.com

Access One80

1773 S. 8th St., Ste. 200, Colorado Springs, CO 80905

Phone: 855-900-2960 ; Fax: 719-623-4699

Email: submissions@bigfootbinds.com

Website: accessone80.com

Admiral Insurance Group

1000 Howard Blvd., Mount Laurel, NJ 08054

Phone: 856-429-9200

Email: MHowey@admiralins.com

Website: www.admiralins.com

Affinity Healthcare

1100 Virginia Dr., Ste. 250, Fort Washington, PA 19034

Phone: 215-293-1191

Email: affinity@aon.com

Website: www.aon.com/affinity

Agency Marketing Services

9800 4th St. N, Ste. 400, St. Petersburg, FL 33702

Phone: 727-384-1036 ; Fax: 727-343-4123

Email: bwolf@agencymarketing.com

Website: www.agencymarketing.com

Agentic Insurance, LLC

900 W. Valley Forge Rd., Ste. 100, King of Prussia, PA 19406

Phone: 610-900-0060 ; Fax: 610-900-0070

Email: Tkatona@agenticins.com

Website: www.agenticins.com

All Solutions PBS, LLC

17 Village Rd., Ste. 176, New Vernon, NJ 07976-0176

Phone: 888-376-5884 ; Fax: 888-726-6638

Email: Info@AllSolutionsPBS.com

Website: www.AllSolutionsPBS.com

Alliant Insurance Services

18100 Von Karman Ave., 10th Fl, Irvine, CA 92612

Phone: 949-756-0271

Email: marcomm@alliant.com

Website: www.alliant.com

Allsouth Professional Liability

9800 4th Street N, Ste. 400, St. Petersburg, FL 33702

Phone: 800-913-9260 ; Fax: 813-282-0994

Email: info@allsouth.net

Website: www.allsouth.net

American Specialty Agents Programs, LLC

PO Box 88776, Atlanta, GA 30356

Phone: 770-855-4723

Email: karen@klowensassociates.com

Website: www.klowensassociates.com

AMIS/Alliance Marketing & Insurance Services

PO Box 567, San Marcos, CA 92079

Phone: 760-471-7116 ; Fax: 760-471-9378

Email: snowell@amiscorp.com

Website: www.amisinsurance.com

Amwins - 150+ Offices Nationwide

See Website for Locations

Headquarters - Charlotte, NC 28210

Phone: 704-749-2700

Email: marketing@amwins.com

Website: www.amwins.com

Anderson & Murison, Inc.

800 W. Colorado Blvd., Los Angeles, CA 90041

Phone: 323-255-2333 ; Fax: 323-255-0957

Email: dena.martin@monarchexcess.com

Website: www.andersonmurison.com

Aon Affinity

200 E. Randolph St., Chicago, IL, 60601

Phone: 267-418-3410

Email: kristoffer.boyd1@aon.com

Website: www.aonprograms.com

Apex Insurance

404 E. Ramsey, Ste. 114, San Antonio, TX, 78216

Phone: 210-812-5658 ; Fax: 210-340-8986

Email: hughes@apexinsurance.com

Website: www.apexinsurance.com

Applied Financial Lines

1120 Avenue of the Americas, 21st Fl, New York, NY 10036

Phone: 443-534-6060 ; Fax: 877-234-4425

Email: tdowen@auw.com

Website: www.afl.auw.com

ARC West Coast Excess & Surplus Brokerage, LLC

260 S. Los Robles Ave., Ste. 205, Pasadena, CA 91101

Phone: 626-584-5050 ; Fax: 626-584-5010

Email: shunt@arcxswest.com

Website: www.arcbrokers.com

ARMR.Network - Better Insurance By Design

CA dba: Dybdahl & Associates Insurance Agency, LLC

525 Junction Rd., Ste. 8200, Madison, WI 53717

Phone: 608-836-9590 ; Fax: 608-836-9565

Email: Marketing@armr.net

Website: www.armr.net

Artex Risk Solutions, Inc.

2850 Golf Rd., 5th Fl, Rolling Meadows, IL 60008

Phone: 630-694-5050

Email: artexinfo@artexrisk.com

Website: www.artexrisk.com

Ascendant Insurance Solutions

2199 Ponce de Leon Blvd., Ste. 500, Coral Gables, FL 33134

Phone: 305-820-4360

Email: marketing@ascendantgroup.com

Website: www.ascendantgroup.com

Ashley General Agency

2040 N. Loop 336 W, Ste. 200, Conroe, TX 77304

Phone: 936-441-5959 ; Fax: 936-521-5922

Email: hnelson@ashleyga.com

Website: www.ashleyga.com

Aspera Insurance Services

2035 Maywill St., Ste. 100, Richmond, VA 23230

Phone: 804-774-2101

Email: marketing@asperains.com

asperains.com/products/specialty/professional-liability/

Aura Risk Management & Insurance Services

944 Calle Amanecer, Ste. E, San Clemente, CA 92673

Phone: 949-749-8119

Email: submissions@aurarisk.com

Website: www.aurarisk.com

Axis Insurance Services, LLC

795 Franklin Ave., Ste. 206, Franklin Lakes, NJ 07417

Phone: 201-847-9175 ; Fax: 201-847-9174

Email: info@axisins.com

Website: www.axisins.com

Baker Insurance and Bonds, LLC

Las Vegas, NV

Phone: 702-906-0888

Email: help@yesbaker.com

Website: www.yesbaker.com

Balance Partners PO Box 2550, Huntington, NY 11750

Phone: 512-923-6278

Email: cjacobs@balanceuw.com

Website: www.balanceuw.com

Beacon Hill Associates PO Box 1532, Charlottesville, VA 22902

Phone: 800-596-2156 ; Fax: 434-979-8964

Email: info@b-h-a.com

Website: https://b-h-a.com/

Berkley Select | a Berkley Company

550 W. Jackson Blvd., Ste. 500, Chicago, IL 60661

Phone: 312-800-6200 ; Fax: 312-207-1839

Email: info@berkleyselect.com

Website: www.berkleyselect.com

Berkshire Hathaway GUARD Insurance Companies

PO Box AH, Wilkes-Barre, PA 18703

Phone: 570-825-9900 ; Fax: 570-823-2059

Email: csr@guard.com

Website: www.guard.com

Boston Insurance Brokerage, LLC

28 State St., Ste. 2202, Boston, MA 02109

Phone: 617-556-7000 ; Fax: 617-556-7030

Email: Kdriscoll@bib-llc.com

Website: www.bostonbrokerage.com

Boston Insurance Brokerage can find coverage for almost any hard-to-place risk. However, our practice groups are broken down into five key practice areas populated by experienced brokerage professionals: Property-Casualty and Environmental, Healthcare & Professional Liability, Executive & Professional Liability, Workers Compensation, and High Value Personal Lines.

Braishfield Associates, Inc.

5750 Major Blvd., Ste. 200, Orlando, FL 32819

Phone: 888-335-6616 ; Fax: 888-335-6615

Email: dhill@braishfield.com

Website: www.braishfield.com

Professional Liability Directory - Alphabetical Directory of Markets

Breckenridge Insurance

3550 George Busbee Pkwy NW, Ste. 300

Kennesaw, GA 30144

Phone: 855-728-8822

Email: solved@breckis.com

Website: www.breckis.com

Brooks Insurance Agency

6320 Canoga Ave., 12th Fl, Woodland Hills, CA 91367

Phone: 818-449-9062

Email: mmccluskey@brooks-ins.com

Website: www.brooks-ins.com

Brooks offers Professional Liability to protect businesses and professionals from D&O, E&O, Cyber, and more. As an independent wholesaler, Brooks has the premium volume to create and maintain significant relationships, enabling a preferred partner status that results in priority attention to submissions and superior service. Contact Michael McCluskey at 818449-9062 or mmcluskey@brooks-ins.com for a quote today!

Brown & Riding

7047 E. Greenway Pkwy, Scottsdale, AZ 85254

Phone: 312-399-9614

Email: mgervin@brcins.com

Website: www.brownandriding.com

Brownyard Group

21 Maple Ave., Bay Shore, NY 11706

Phone: 800-645-5820 ; Fax: 631-666-5723

Email: info@brownyard.com

Website: www.brownyard.com

CAMICO Mutual Insurance Company

1800 Gateway Dr., Ste. 200, San Mateo, CA 94404

Phone: 800-652-1772 ; Fax: 800-227-2090

Email: dcrouch@camico.com

Website: www.camico.com

Capitol Special Risks, Inc.

1000 Parkwood Cir, Ste. 925, Atlanta, GA 30339

Phone: 770-618-1011 ; Fax: 770-956-9779

Email: ASedliak@csrisks.com

Website: www.csrisks.com

CFC

85 Gracechurch St., London EC3V 0AA UK

Phone: 207-220-8500

Email: inbox@cfcunderwriting.com

Website: www.cfcunderwriting.com

Chubb

202B Hall’s Mill Rd., Whitehouse Station, NJ 08889

Phone: 908-572-4392

Email: rcushing@chubb.com

Website: www.chubb.com/us/professionalliability

CID Insurance Programs, Inc.

7125 El Cajon Blvd., Ste. 3, San Diego, CA 92115

Phone: 800-922-7283 ; Fax: 619-593-2008

Email: info@cidinsurance.com

Website: www.cidinsurance.com

Ck Specialty Insurance Associates - All Offices

See Website for Locations, Headquarters - San Jose, CA 95118

Phone: 800-411-0083 ; Fax: 408-227-7732

Email: yana@ckspecialty.com

Website: www.ckspecialty.com

Cochrane and Company

1405 S. Rustle St., Spokane, WA 99224

Phone: 509-838-0655 ; Fax: 509-838-1710

Email: marketing@cochraneco.com

Website: www.cochraneco.com

Commercial Sector Insurance Brokers, LLC

500 Corporate Pkwy, Ste. 200-G, Hoover, AL 35242

Phone: 205-332-8117 ; Fax: 205-776-1610

Email: bbleistine@comsectorins.com

Website: www.comsectorins.com

Commonwealth Underwriters, Ltd.

2112 W. Laburnum Ave., Richmond, VA 23227

Phone: 800-396-6226

Email: skoolhof@commund.com

Website: www.commund.com

Cooper & McCloskey, Inc.

111 Pine St., Ste. 1530, San Francisco, CA 94111

Phone: 415-433-7700 ; Fax: 415-433-7707

Email: keltie@cmiprorisk.com

Website: www.cmiprorisk.com

CorRisk Solutions

One Huntington Quadrangle, Ste. 4N20, Melville NY, 11747

Phone: 480-329-4919

Email: Marketing@CorRiskSolutions.com

Website: www.corrisksolutions.com

Costanza Insurance Agency, Inc.

3010 LBJ Freeway, Ste. 925, Dallas, TX 75243

Phone: 800-346-0942 ; Fax: 972-991-2139

Email: b.costanza@cia-tx.com

Website: www.costanzainsurance.com

Coterie

4455 Carver Woods Dr., Ste. 100, Cincinnati, OH 45242

Phone: 785-331-6694

Email: katherine.jones@coterieinsurance.com

Website: www.coterieinsurance.com

Coverys

One Financial Center, Boston, MA 02111

Phone: 800-225-6168

Website: www.coverys.com

CRC Insurance Services

See Website for Locations. HQ - Birmingham, AL 35209

Phone: 205-870-7790 ; Fax: 205-879-3739

Email: marketing@crcins.com

Website: www.crcins.com

CRES A Gallagher Company

POB 29502 #69121, Las Vegas, NV 89126

Phone: 858-618-1648 ; Fax: 858-618-1655

Email: GGB.LV2.CRES.CustSvc@ajg.com

Website: www.cresinsurance.com

Delta General Agency Corp.

PO Box 2045, Houston, TX 77252

Phone: 713-570-2700 ; Fax: 713-570-2800

Email: billf@deltains.com

Website: www.deltains.com

Donald Gaddis Co., Inc. Insurance Svcs

104 S. Michigan Ave., Ste 1025, Chicago, IL 60603

Phone: 888-853-0071 ; Fax: 312-853-1033

Email: cgaddis@gaddiscompany.com

Website: www.gaddiscompany.com

DUAL North America

1100 5th Ave. South, Ste. 301, Naples, FL 34102

Phone: 973-631-7575

Email: marketing@dualcommercial.com

Website: www.dualna.com

Eaton Professional Insurance Services

17602 17th St., Ste. 102-120, Tustin, CA 92780

Phone: 714-832-8649 ; Fax: 714-832-2586

Email: c.eaton@episi.net

Website: www.episi.net

eKo Specialty Insurance Services, Inc.

PO Box 3365, Thousand Oaks, CA 91360

Phone: 805-373-6968 ; Fax: 805-373-7070

Email: eKo@eKoSpecialty.com

Website: www.eKoSpecialty.com

Elite Underwriters

PO Box 141668, Coral Gables, FL 33114

Phone: 305-203-1026 ; Fax: 786-522-9046

Email: imoreno@eliteunderwriters.com

Website: www.eliteunderwriters.com

EMaxx Assurance Group of Companies, Inc.

10 Centennial Dr., Ste. 201, Peabody, MA 01960

Phone: 978-531-1822

Email: marketing@emaxxgroup.com

Website: www.emaxxgroup.com

Erickson-Larsen, Inc.

6425 Sycamore Court No., Maple Grove, MN 55369

Phone: 763-535-0055 ; Fax: 763-535-0477

Email: appsmnoffice@ericksonlarseninc.com

Website: www.ericksonlarseninc.com

Professional Liability Directory - Alphabetical Directory of Markets

Euclid Design Underwriters

1177 Avenue of the Americas, 5th FL, New York, NY 10036

Phone: 630-238-1900 ; Fax: 630-773-8590

Email: mail@euclid-du.com

Website: www.euclid-du.com

Euclid Public Sector

234 Spring Lake Dr., Itasca, IL 60143

Phone: 630-238-1900 ; Fax: 630-773-8590

Email: mail@euclidmanagers.com

Web Euclid Fiduciary site: www.euclidps.com

Euclid Fiduciary

100 East Street SE, Ste. 204, Vienna, VA 22180

Phone: 571-730-4810 ; Fax: 571-730-4813

Email: jobrien@euclidfiduciary.com

Website: www.euclidspecialty.com

Executive Insurance Professionals, PLLC

6031 W. Interstate 20, Ste. 249, Arlington, TX 76017

Phone: 800-779-4095 ; Fax: 866-779-4331

Email: cheryl@execins.com

Website: www.execins.com

First Choice Insurance Intermediaries, Inc.

814 A1A North, Ste. 206, Ponte Vedra Beach, FL 32082

Phone: 866-821-9572 ; Fax: 904-543-4501

Email: info@firstchoiceii.com

Website: www.firstchoiceii.com

Founders Professional

2038 1st Avenue South, St. Petersburg, FL 33712

Phone: 727-498-6503 ; Fax: 727-498-6506

Email: fpinfo@founderspro.com

Website: www.founderspro.com

Fox Point Programs

3001 Philadelphia Pike, Claymont, DE 19703

Phone: 800-499-7242 ; Fax: 302-472-8529

Email: info@foxpointprg.com

Website: www.foxpointprg.com

Freberg Environmental, Inc.

1800 Wazee St., Ste. 300, Denver, CO 80202

Phone: 800-377-4152 ; Fax: 303-623-8101

Email: info@feiinsurance.com

Website: www.feiinsurance.com

Gateway Specialty Insurance

1170 Devon Park Dr., Wayne, PA 19087

Phone: 877-977-4474

Email: info@gatewayspecialty.com

Website: www.gatewayspecialty.com

Gerald J. Wilkoff, Inc.

95 Main St., Mineola, NY 11501

Phone: 516-747-0200 ; Fax: 516-747-2021

Email: info@wilkoffbonds.com

Website: www.wilkoffbonds.com

Gorst & Compass Insurance

9310 Topanga Canyon Blvd., Chatsworth, CA 91311

Phone: 818-507-0900 ; Fax: 818-507-1133

Email: mail@gorstcompass.com

Website: www.gorstcompass.com

Grayhawk General Agency, Inc.

PO Box 2505, Gilbert, AZ 85299

Phone: 480-245-5991

Email: dan@ggagency.com

Website: www.ggagency.com

Great American Insurance GroupExecutive Liability Division

1450 American Lane, 8th Fl, Schaumburg, IL 60173

Phone: 847-330-6750

Email: ELD@gaig.com

Website: www.GreatAmericanELD.com

Greenhill Insurance Services

4801 Woodway Dr., Ste. 235W, Houston, TX 77056

Phone: 832-413-4600

Email: ghsubmission@grnhll.com

Website: www.grnhll.com

Gumtree Wholesale Insurance Brokers, Inc.

1650 E. Battlefield, Ste. 230, Springfield, MO 65804

Phone: 855-706-1558 ; Fax: 417-887-6140

Email: vicki.cota@gumtree-ins.com

Website: www.gumtreeins.com

Hill Program Managers, LLC

155 S. Madison St., Ste. 302, Denver, CO 80209

Phone: 303-481-6684

Email: Mhill@hillprograms.com

Website: www.hillprograms.com

Hudson Insurance Group / Hudson Pro

100 William St., 5th Fl, New York, NY 10038

Phone: 212-978-2800

Email: MSutton@HudsonInsGroup.com

Website: www.hudsoninsgroup.com

Indemnity Excess & Surplus Agency, Inc.

1915 NE Stucki Ave., Ste. 450, Hillsboro, OR 97006

Phone: 800-487-2442 ; Fax: 503-526-9700

Email: jreedal@ies-xs.com

Website: www.ies-xs.com

Insurance Agents & Brokers Service Group, Inc.

650 Wilson Lane, Ste. 200, Mechanicsburg, PA 17055

Phone: 800-998-9644 Ext. 209 ; Fax: 717-795-8347

Email: iab@iabforme.com

Website: www.iabforme.com

Insurance By Design

13465 Midway Rd., Ste. 202, Dallas, TX 75244

Phone: 866-840-8004 ; Fax: 214-217-2548

Email: mike@ibdpro.com

Website: www.ibdpro.com

Insurance Specialties Services, Inc.

946 Town Center, New Britain, PA 18901

Phone: 215-918-0505

Email: mary.smith@issisvs.com

Website: www.issisvs.com

Intercorp: A Division of Norman-Spencer

1438-F W. Main St., Ephrata, PA 17522

Phone: 717-721-3500 ; Fax: 717-721-3515

Email: info@intercorpinc.net

Website: www.intercorpinc.net

IPA Risk Management, LLC

340 W. Passaic St., Rochelle Park, NJ 07662

Phone: 201-797-1084 ; Fax: 201-797-1076

Email: g.heitmann@ipariskmanagement.com

Website: www.ipariskmanagement.com

Irwin Siegel Agency

25 Lake Louise Marie Rd., Rock Hill, NY 12775

Phone: 800-622-8272 ; Fax: 845-796-3661

Email: siegel@siegelagency.com

Website: www.siegelagency.com

ISC - Integrated Specialty Coverages

1811 Aston Ave., Ste. 200, Carlsbad, CA 92008

Phone: 908-723-8559

Email: contact@iscmga.com

Website: www.iscmga.com

Izzo Insurance Services, a Division of Hull & Company LLC

150 S. Bloomingdale Rd., Bloomingdale, IL 60108

Phone: 800-800-1704 ; Fax: 630-582-2803

Email: info@izzoinsurance.com

Website: www.izzoinsurance.com

J.E. Brown & Associates

303 Lennon Lane, Walnut Creek, CA 94598

Phone: 800-955-8213 ; Fax: 925-947-3978

Email: marketing@jebrown.net

Website: www.jebrown.net

Jacobs & Associates, Inc.

12782 Prospect Rd., Strongsville, OH 44149

Phone: 440-625-2690 ; Fax: 440-625-2731

Email: beth.jacobs@towerstonecorp.com

Website: www.jacobsnow.org

James Klein Insurance Service, Inc.

200 E. Sandpointe Ave., Ste. 510, Santa Ana, CA 92637

Phone: 714-918-0914 Ext. 115 ; Fax: 714-918-0921

Email: pdavis@jameskleininsurance.com

INSURANCE

James River Insurance Company

6641 W. Broad St., Ste. 300, Richmond, VA 23230

Phone: 804-289-2700 ; Fax: 804-289-2703

Email: info@jamesriverins.com

Website: www.jamesriverins.com

James River underwrites a wide variety of specialty

P&C and Professional risks on an E&S basis in all states. PL teams include Medical PL, Allied Healthcare, and non-Medical PL. Visit www.jamesriverins. com to find a JRIC-authorized wholesale broker!

Jamison Risk Services

20 Commerce Dr., Cranford, NJ 07016

Phone: 973-669-2311 ; Fax: 973-731-3035

Email: ccaruso@jamisongroup.com

Website: www.jamisongroup.com

Jencap - Locations Nationwide

See website for all locations. HQ New York, NY 10018

Phone: 800-892-8892

Email: info@jencapgroup.com

Website: www.jencapgroup.com

Jencap Specialty Insurance Services – Buffalo

295 Main St., Ste. 866, Buffalo, NY 14203

Phone: 800-333-7226 ; Fax: 800-677-6779

Email: ed.chadwick@jencapgroup.com

Website: www.jencapgroup.com

Professional Liability Directory - Alphabetical Directory of Markets

Jencap Specialty Insurance Services (Environmental)

2400 E. Katella Ave., Ste. 800, Anaheim, CA 92806

Phone: 949-390-4725

Email: nancy.huynh@jencapgroup.com

Website: jencapgroup.com/environmental

Jimcor Agencies

60 Craig Rd., Montvale, NJ 07645

Phone: 201-573-8200 ; Fax: 201-573-8820

Email: jschneider@jimcor.com

Website: www.jimcor.com

JM Wilson

8036 Moorsbridge Rd., Portage, MI 49024

Phone: 800-282-8113 ; Fax: 269-327-2620

Email: cbaldwin@jmwilson.com

Website: www.jmwilson.com

Joseph Krar & Associates, Inc.

PO Box 580, Southington, CT 06489

Phone: 860-628-3967 ; Fax: 860-628-3969

Email: emailrec@jkrar.com

Website: www.jkrar.com

Kevin Dahlke Insurance Brokerage, Inc.

15396 Broad Oaks Rd., El Cajon, CA 92021

Phone: 619-287-8613 ; Fax: 619-287-8921

Email: support@kdibinc.com

Website: www.dahlkeinsurance.com

Keystone Insurance Services, Inc.

PO Box 9127, Austin, TX 78766

Phone: 512-257-8000

Email: info@mykeystoneins.com

Website: www.MyKeystoneIns.com

Keystroke Underwriters

1000 Parkwood Cir, Ste. 925, Atlanta, GA 30339

Phone: 770-618-2840 ; Fax: 404-446-1501

Email: Robert@keystrokeins.com

Website: www.keystrokeins.com

Kinsale Insurance Company

2035 Maywill St., Ste. 100, Richmond, VA 23230

Phone: 804-289-1300 ; Fax: 804-673-5697

Email: marketing@kinsaleins.com

Website: www.kinsaleins.com

Landy Insurance Agency

100 River Ridge Dr., Ste. 301, Norwood, MA 02062

Phone: 800-336-5422 ; Fax: 800-344-5422

Email: joanmarie@landy.com

Website: www.landy.com

Leading national program manager for Real Estate Agents & Brokers, Appraisers and Accountants

Professional Liability insurance programs with coverage provided by an A+ -rated carrier. We now offer admitted and affordable Cyber & Crime coverage options with broad coverage features. With new, lower premiums and expanded coverage in many programs, same great service.

Lawyer’s Protector Plan

655 N. Franklin St., Ste. 1900, Tampa, FL 33602

Phone: 800-336-5529 ; Fax: 813-223-9547

Email: lpp@bbprograms.com

Website: www.lppinsurance.com

Lomax Solutions LLC. dba Lomax Insurance Solutions

51550 McKenzie Hwy., Blue River, OR 97413

Phone: 714-955-1560

Email: Bill@lomaxsolutions.com

Website: www.lomaxsolutions.com

M.J. Hall & Company Insurance Brokers

PO Box 192, Stockton, CA 95201

Phone: 818-746-2019

Email: mathew.meadows@mjhall.com

Website: www.mjhall.com

Magnolia LTC

716 College Ave., Ste. B, Santa Rosa, CA 95404

Phone: 707-571-7430

Email: sottenbrite@magnolialtc.com

Website: www.magnolialtc.com

Markel

4600 Cox Rd., Glen Allen, VA 23060

Toll-free: 800-431-1270 ; Direct: 804-527-7925

Website: www.markel.com

For more than 40 years, Markel has provided reliable professional and management liability coverage. We offer a wide range of insurance products including directors and officers, errors and omissions, cyber, financial institutions, transactional risk, employment practices liability, and more.

Maverick Commercial Insurance Services

23945 Calabasas Rd., Ste. 107, Calabasas, CA 91302

Phone: 818-223-0011 ; Fax: 818-223-1102

Email: georgeluka@maverickinsure.com or Shannongomez@maverickinsure.com

Website: www.maverickinsure.com

MAXIMUM

222 S. Riverside Plaza, Ste. 2340, Chicago, IL 60606

Phone: 312-466-4877

Email: pato@maxib.com

Website: www.maxib.com

McGowan, Donnelly & Oberheu, LLC (MDO)

2700 Via Fortuna, Ste. 145, Austin, TX 78746

Phone: 512-600-2280 Ext. 5304

Email: kcantwell@mdoinsurance.com

Website: www.mdoinsurance.com

Monarch E&S Insurance Services

2550 N. Hollywood Way, Ste. 501, Burbank, CA 91505

Phone: 818-249-0100 ; Fax: 818-249-1166

Email: spencerb@monarchexcess.com

Website: www.monarchexcess.com

National Association of Professional Agents (NAPA)

8430 Enterprise Cir, Ste. 200, Lakewood Ranch, FL 34202

Phone: 800-593-7657 ; Fax: 800-411-4771

Email: info@napa-benefits.org

Website: www.napa-benefits.org

National Insurance Underwriters

800 W. Yamato Rd., Boca Raton, FL 33431

Phone: 800-338-2680 Ext. 299 ; Fax: 561-226-1123

Email: eandobiz@nationsafedrivers.com

Website: www.nsdmc.com

Negley Associates

389 Interpace Pkwy, 4th Fl, Parsippany, NJ 07054

Phone: 862-286-3550 ; Fax: 866-865-5655

Email: info@jjnegley.com

Website: www.jjnegley.com

NeitClem Wholesale Insurance Brokerage, Inc.

7442 N Figueroa St., Los Angeles, CA 90041

Phone: 323-258-2600 ; Fax: 323-258-2676

Email: jcenteno@neitclem.com

Website: www.neitclem.com

New Age Underwriters Agency, Inc.

1981 Marcus Ave., Ste. C108, Lake Success, NY 11042

Phone: 516-488-2500 ; Fax: 516-488-2508

Email: m.ascher@newageins.com

Website: www.newageins.com

New England Excess Exchange, Ltd.

57 Parker Rd., Barre, VT 05641

Phone: 800-548-4301 ; Fax: 800-347-4935

Email: marketing@neee.com

Website: www.neee.com

Norman-Spencer Agency, Inc.

8075 Washington Village Dr., Dayton, OH 45458

Phone: 800-543-3248 ; Fax: 937-432-1635

Email: davidgeorge@norman-spencer.com

Website: www.norman-spencer.com

Norman-Spencer International, Inc.

150 E. 22nd St., Lombard, IL 60148

Phone: 800-842-3653 ; Fax: 630-705-1056

Email: gretchen@normanspencer.com

Website: www.normanspencer.com

Novatae Risk Group

12700 Park Central Dr., Ste. 510, Dallas, TX 75251

Phone: 888-810-2770

Email: info@novatae.com

Website: www.novatae.com

Number One Insurance Agency

91 Cedar St., Milford, MA 01757

Phone: 508-634-2900 ; Fax: 508-634-2930

Email: atobin@massagent.com

Website: www.massagent.com

OREP Insurance Services, LLC

6353 El Cajon Blvd., Ste. 124-605, San Diego, CA 92115

Phone: 888-347-5273

Email: info@orep.org

Website: www.orep.org

Professional Liability Directory - Alphabetical Directory of Markets

Patriot National Underwriters, Inc.

PO Box 803143, Dallas, TX 75380

Phone: 972-239-1458 ; Fax: 972-233-3487

Email: cliff.clay@patriotnational.com

Website: www.patriotnational.com

Pro-Praxis Insurance (division of CRC)

32 Old Slip, 4th Fl, New York, NY 10005

Phone: 212-401-1561

Email: hplsubmissions@propraxisins.com

Website: www.propraxisins.com

Philadelphia Insurance Companies

One Bala Plaza, Ste. 100, Bala Cynwyd, PA 19004

Phone: 800-873-4552 ; Fax: 610-617-7940

Email: phlysales@phlyins.com

Website: www.phly.com

Philadelphia Insurance Companies, a Member of the Tokio Marine Group, designs, markets, and underwrites commercial property/casualty and professional liability insurance products incorporating value added coverages and services for select industries.

PL Risk Advisors, Inc.

795 Franklin Ave., Ste. 210, Franklin Lakes, NJ 07417

Phone: 201-847-9175 ; Fax: 201-847-9174

Email: msmith@plrisk.com

Website: www.plrisk.com

Prime Insurance Company

1 S. Dearborn, Ste. 800, Chicago IL 60603

Phone: 800-257-5590 ; Fax: 877-452-6910

Email: RJL@primeis.com

Website: www.primeis.com

ProAlly

1820 E. Sky Harbor Circle S, Ste. 150, Phoenix, AZ 85034 Phone: 623-473-6277

Email: contact@pro-ally.com

Website: www.pro-ally.com

Professional Governmental Underwriters

4870 Sadler Rd., Ste. 102, Glen Allen, VA 23060

Phone: 800-586-6502 ; Fax: 804-272-7852

Email: glester@pgui.com

Website: www.pgui.com

Professional Insurance Concepts

389 Interpace Pkwy, 4th Fl, Parsippany, NJ 07054

Phone: 862-286-3470 ; Fax: 973-263-0747

Email: DGriffin@ProInsConcepts.com

Website: www.ProInsConcepts.com

Professional Liability Brokers & Consultants, Inc.

175 E. Hawthorn Pkwy, Ste. 310, Vernon Hills, IL 60061

Phone: 847-816-4480 ; Fax: 847-816-4484

Email: erv@plbc.com

Website: www.plbc.com

Professional Liability Ins. Svcs, Inc.Underwriting Facilities

5802 Thunderbird, Bldg 10, Ste. 100, Lago Vista, TX 78645

Phone: 800-761-7547 ; Fax: 512-327-5834

Email: underwriting@plisinc.com

Website: www.plisinc.com

Professional Program Ins. Brokerage, a Div of SPG Ins. Solutions

1304 Southpoint Blvd., Ste. 101, Petaluma, CA 94954

Phone: 415-475-4300 ; Fax: 415-475-4303

Email: info@ppibcorp.com

Website: www.ppibcorp.com

Professional Underwriters Agency (PUA)

2803 Butterfield Rd., Ste. 260, Oak Brook, IL 60523

Phone: 630-861-2330

Email: nsmmarketing@nsminc.com

Website: www.puainc.com

Program Brokerage Corporation

1065 Avenue of the Americas/5 Bryant Park, 3rd Fl New York, NY 10018

Phone: 212-338-2924

Email: info@programbrokerage.com

Website: www.programbrokerage.com

ProLawyer Insurance, LLC

987 Old Eagle School Rd., Ste. 715, Wayne, PA 19087

Phone: 215-525-3293 ; Fax: 215-394-7010

Email: info@prolawyer.com

Website: www.ProLawyer.com

Promont Insurance Advisors

1 E. Wacker Dr., Ste. 1920, Chicago, IL 60601

Phone: 312-262-3300 ; Fax: 312-262-3301

Email: greg.morris@promontadvisors.com

Website: www.promontadvisors.com

ProSurance Group, a Div of One80 Intermediaries

5050 El Camino Real, Ste. 300, Los Altos, CA 94022

Phone: 214-845-7806 ; Fax: 650-428-0860

Email: financialservices@One80.com

Website: www.One80.com

ProWriters

70 E. Lancaster Ave., Ste. 102 Malvern, PA 19355

Phone: 484-321-2335 ; Fax: 484-321-2339

Email: info@prowritersins.com

Website: www.prowritersins.com

Psych Professional Liability, a div of Frenkel & Company

210 Hudson St., 6th Fl, Jersey City, NJ 07311

Phone: 201-356-0057 ; Fax: 201-356-0055

Email: khegel@frenkel.com

Website: www.frenkel.com

Quadrant Insurance Managers

501 W. Schrock Rd., Ste. 301, Westerville, OH 43081

Phone: 614-841-1425 ; Fax: 614-841-1426

Email: productinfo@quadrant-us.com

Website: www.quadrant-us.com

Quaker Special Risk, a JenCap Company

See Website for Addresses

Headquarters - Eatontown, NJ 07724

Phone: 800-447-4180 ; Fax: 732-223-9072

Email: creid@qsr-insurance.com

Website: www.quakerspecialrisk.com

Quirk & Company

PO Box 792030, San Antonio, TX 78279

Phone: 800-299-9421 ; Fax: 210-340-4075

Email: lvazquez@quirkco.com

Website: www.quirkco.com

R.E. Chaix & Assoc.

3200 El Camino Real, Ste. 290, Irvine, CA 92602

Phone: 949-722-4177 ; Fax: 949-722-4172

Email: timc@rechaixinsurance.com

Website: www.rechaixinsurance.com

Risk Placement Services, Inc. - Bridgewater

1150 US Highway 22, 1st Fl, Bridgewater, NJ 08807

Phone: 908-685-7650

Email: Adrienne_woodhull@rpsins.com

Website: www.rpsins.com

Rockwood Programs, Inc.

3001 Philadelphia Pike, Claymont, DE 19703

Phone: 800-558-8808 ; Fax: 302-764-5477

Email: sales@rockwoodinsurance.com

Website: www.rockwoodinsurance.com

Roush Insurance Services, Inc.

18077 River Rd., Ste. 107, Noblesville, IN 46062

Phone: 800-752-8402 ; Fax: 317-776-6891

Email: info@roushins.com

Website: www.roushins.com

RPS Executive Lines

525 W. Van Buren, Ste. 1325, Chicago, IL 60607

Phone: 312-803-6058

Email: executivelines@rpsins.com

Website: www.rpsins.com/executivelines

RPS Healthcare

550 W. Van Buren, Ste. 1200, Chicago, IL 60607

Phone: 312-803-6014 ; Fax: 312-922-7563

Email: diane_burrows@rpsins.com

Website: www.rpsins.com

RPS Healthcare specializes in medical professional liability insurance for all segments of the healthcare industry. We deliver quality insurance solutions at a competitive price for healthcare institutions.

RPS Technology & Cyber

204 Cedar St., Cambridge, MD 21613

Phone: 800-336-5659 ; Fax: 410-228-7645

Email: Estelle_Cummings@RPSins.com

Website: www.RPSins.com/techcyber

RT Specialty 540 W. Madison St., 9th Fl, Chicago, IL 60661

Phone: 312-651-6000 ; Fax: 312-651-6096

Email: customer.solutions@rtspecialty.com

Website: rtspecialty.com

Sabal Insurance Group, Inc.

1000 E. Broward Blvd., Fort Lauderdale, FL 33301

Phone: 954-828-9948 ; Fax: 954-828-9949

Email: info@sabalinsurance.com

Website: www.sabalinsurance.com

Professional Liability Directory - Alphabetical Directory of Markets

SASSI - Salon & Spa Specialty Insurance

21 Maple Ave., Bay Shore, NY 11706

Phone: 888-823-9380 ; Fax: 631-666-7646

Email: info@brownyard.com

Website: www.sassiagency.com

Select Risk Services, Inc.

6575 West Loop South, Ste. 470, Bellaire, TX 77401

Phone: 713-589-2244

Email: kross@selectriskservices.com

Website: www.selectriskservices.com

Shelly, Middlebrooks & O’Leary, Inc.

PO Box 2909, Jacksonville, FL 32203-2909

Phone: 904-354-7711 ; Fax: 904-355-7611

Email: dc.oleary@shellyins.com

Website: www.shellyins.com

Smart Choice Express Markets

4121 Beechwood Dr., Greensboro, NC 27410

Phone: 336-217-4680

Email: insidesales@smartchoiceagents.com

Website: www.expressmarkets.com

Southern Insurance Underwriters, Inc. CMGA

4500 Mansell Rd., Alpharetta, GA 30022

Phone: 678-498-4500

Email: marketing@siuins.com

Website: www.siuins.com

Sports & Fitness Insurance Corporation

PO Box 1967, Madison, MS 39110

Phone: 800-844-0536 ; Fax: 601-707-1045

Email: contactus@sportsfitness.com

Website: www.sportsfitness.com

Sun Coast General Insurance Agency

PO Box 30750, Laguna Hills, CA 92654-0750

Phone: 949-768-1132 ; Fax: 949-768-0625

Email: KChamberlain@SunCoastInsurance.com

Website: www.suncoastinsurance.com

SWBC

PO Box 791028, San Antonio, TX 78279

Phone: 210-525-1242 ; Fax: 210-525-0054

Email: jlarson@swbc.com

Website: www.swbc.com

Synergy Professional Associates, Inc.

100 Passaic Ave., Ste. 145, Fairfield, NJ 07004

Phone: 973-995-0500 ; Fax: 973-995-0501

Email: michelem@synergy-ins.com

Website: www.synergy-ins.com

Target Professional Programs

1230 E. Diehl Rd., Ste. 350, Naperville, IL 60563

Phone: 331-333-8239

Email: SReidy@TargetProIns.com

Website: www.TargetProIns.com

TDC Specialty Underwriters

29 Mill Street, Unionville, CT 06085

Phone: 888-277-3152 ; Fax: 855-667-4280

Email: submissions@tdcspecialty.com

Website: www.tdcspecialty.com

The Hanover Insurance Group

440 Lincoln St., Worcester, MA 01653

Phone: 508-855-1000

Website: www.hanover.com

The Mechanic Group, A Division of Specialty Program Group, LLC

One Blue Hill Plaza, Ste. 530, Pearl River, NY 10965

Phone: 845-735-0700 ; Fax: 845-735-8383

Email: mkatz@mechanicgroup.com

Website: www.mechanicgroup.com

Tokio Marine HCC Professional Lines Group

37 Radio Circle Dr., Mt Kisco, NY 10549

Phone: 914-242-7840 ; Fax: 914-241-8098

Email: MPL@tmhcc.com

Website: www.tmhcc.com

Tokio Marine/HCC

2300 Clayton Rd., Ste. 1100, Concord, CA 94520

EPL: Chris Murphy - 415-277-2475 - CMurphy@tmhcc.com

AE/CP: Jim Bechter - 925-305-2115 - jbechter@tmhcc.com

All other: Ed - 914-242-7865 - evelasquez@tmhcc.com

Website: www.tmhcc/#liability

U.S. Brokers Network, a Div of U.S. Risk, LLC

Program Administrator Insurance Agents E&O 14241 Dallas Pkwy, Ste. 850 Dallas, TX 75254

Phone: Jan Vaughn - 719-309-1051

Email: submissions@usbrokersnetwork.com

Website: www.usbrokersnetwork.com

U.S. E&O Brokers, a Division of U.S. Risk, LLC

2050 W. Sam Houston Pkwy, S., Ste. 1500, Houston, TX 77055

Phone: 800-460-6424 ; Fax: 713-984-1152

Email: angela.schroder@useo.com

Website: www.useo.com

U.S. Risk, LLC

8401 N. Central Expy, Ste. 1000, Dallas, TX 75225

Phone: 800-232-5830 ; Fax: 214-265-4976

Email: kellyK@usrisk.com

Website: www.usrisk.com

Ultra Risk Advisors

400 112th Ave. NE, Ste. 325, Bellevue, WA 98004

Phone: 425-450-1090 ; Fax: 425-450-1026

Email: info@ultrariskadvisors.com

Website: www.ultrariskadvisors.com

United Educators

7700 Wisconsin Ave., Ste. 500, Bethesda, MD 20814

Phone: 301-907-4908

Email: ejones@ue.org

Website: www.ue.org

USASIA Insurance Services

319 Union Ave., Pomona, CA 91768

Phone: 909-618-0288 ; Fax: 909-618-0289

Email: shirley@usasia-ins.com

Website: www.usasia-ins.com

USG Insurance Services, Inc.

1000 Town Center Way, Ste. 300, Canonsburg, PA 15317

Phone: 844-467-5465 ; Fax: 724-265-5751

Email: getconnected@usgins.com

Website: www.usgins.com

Veracity Insurance Solutions, LLC

260 S. 2500 W, Ste. 303, Pleasant Grove, UT 84062

Phone: 801-763-1375 ; Fax: 801-763-1374

Email: cam@veracityins.com

Web: veracityinsurance.com/professional-liability-insurance

Victor Insurance Managers LLC

7700 Wisconsin Ave., Ste. 400, Bethesda, MD 20814

Phone: 301-961-9800 ; Fax: 301-951-5444

Email: info.us@victorinsurance.com

Website: www.victorinsurance.com

XPT Specialty

50 Brewery St., Ste. 8476, New Haven, CT 06530

Phone: 888-977-3255 ; Fax: 972-702-0504

Email: mark.kaufman@xptpartnersllc.com

Website: www.xptspecialty.com

Western World Insurance Group

400 Parson’s Pond Dr., Franklin Lakes, NJ 07417

Phone: 201-847-8600 ; Fax: 201-847-1010

Email: marketing@westernworld.com

Website: www.westernworld.com

Woodlands Insurance Services, LLC

PO Box 8369, The Woodlands, TX 77387

Phone: 281-367-5010 ; Fax: 281-367-5013

Email: drewk@woodlandsinsurance.com

Website: www.woodlandsinsurance.com

Idea Exchange: Risk Mitigation

Maui Wildfires Portend Unprecedented Shift in What It Means To Mitigate Risk

The Maui wildfires portend a grand and incalculable reality for every single one of us living on this spinning blue globe we call Earth. Understanding the risks associated with where we live, work and play may be reaching a tipping point — one in which the full breadth of risk associated with living in Tornado Alley, building commercial space near fault line in Los Angeles, or building multifamily housing in coastal towns of South Carolina will require not just single threat assessments, but the need to assess multiple threats and how they may interact with one another.

By Erin Ashley

Risk management involves identifying, analyzing and managing potential risks. Historical weather data allows for risk modelers to estimate impact and probability of the event. Accurate climate and weather data aids in understanding the probability and impact of weather-related risks. But what happened in Maui was a confluence of factors that the human mind was incapable of predicting or concluding was possible.

We are still learning more details about the factors that were at play in the

Maui wildfire. What we do know is that the fire spread initially through highly combustible, non-native grass, the result of vegetation growth across abandoned farmland. Drought conditions were present. When you add Hurricane Dora’s high winds, Maui faced a tender box that needed only a single spark.

The Maui fire, fueled by hurricane force winds, was only one of three similar events where a hurricane is believed to have had a direct impact on a fire of this magnitude. In 2007, a tropical storm provided increased winds which spread fires in Florida. In 2017, a similar event was reported in Portugal and Spain, in which more than 30 people were killed. Such a confluence of factors have been rarely seen, so we are left to imagine what threats could impact the places where we reside and how a multitude of risk factors can interact with one another.

A clear failure of our collective imagination, Maui points to a not-so-distant future wherein risk managers, insurance brokers and insurers will have to somehow calculate for the multitude of threats present in high-risk areas, and even in areas we may (currently) understand as not so risky.

No Simple Answers

Both residential and commercial

insurance industries are reeling from low capacity, continued growth in rates and even the outright abandonment of certain markets. Families in high-risk areas are facing the prospect of moving away from their beloved hometowns or facing any costs to rebuild on their own. Commercial property owners are seeing material impacts on dealmaking solely from the rising cost to insure properties. REITs are having serious conversations about portfolio allocation, working to mitigate exposures in high-risk regions.

There is no federal entity that maintains historical weather and hazard data for all 50 states. This creates exposure in the recording and maintenance of weather and risk events which should be considered in municipal planning, the development of building standards and retrofitting. The work to prepare ourselves for the realities of multifactorial risk mitigation in the age of global warming is upon us.

The Architectural Style Book of Lahaina — the historical town hit hardest by the Maui wildfire — published in 1969, details the need for this area to be constructed of materials consistent with the historical construction techniques of the early 19th century in Hawaii. The majority of the buildings present at the start of the wildfire were constructed with wood frames, built in close proximity to one another.

These elements totaled together point us to a conclusion that should make us all uneasy. Global warming and the sheer creativity of mother nature is slowly eating away at our ability to competently identify, plan for and mitigate risk — at least not in the ways we’ve done in the past.

The Maui wildfire is yet another clarion call for the reimaging and retrofitting of our understanding of risk and what it will take to address it in this age of our human existence.

Ashley is the director of risk engineering at Archipelago. She has focused her career on assessing and improving commercial property resiliency and is dedicated to using data to help identify risk profiles.

September 18, 2023

Transverse Insurance Company

1999 Bryan Street, Suite 900 Dallas, TX 75201

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.

September 18, 2023

Accredited Surety and Casualty Company, Inc

4798 New Broad Street, Suite 200 Orlando, FL 32814

The above company has made application to the Division of Insurance to amend their Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

September 18, 2023

Lyndon Southern Insurance Company

10751 Deerwood Park Blvd, Suite 200 Jacksonville, FL 32256

The above company has made application to the Division of Insurance to amend their Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

September 18, 2023

Obsidian Pacific Insurance Company

1330 Avenue of the Americas, Suite 23A New York, NY 10019

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.

September 18, 2023

Fidelity Security Assurance Company

3130 Broadway Blvd

Kansas City, MO 64111

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.

September 18, 2023

GEICO General Insurance Company 5260 Western Avenue Chevy Chase, MD 20815

The above company has made application to the Division of Insurance to amend their Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

September 18, 2023

GEICO Marine Insurance Company

5323 Port Royal Road

Springfield, VA 22151

The above company has made application to the Division of Insurance to amend their Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

New York, NY 10019

The above company has made application to the Division of Insurance to amend their Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

Closing Quote

Removing Barriers to CAT Risk Modeling Will Slow Insurer Flight From High-Risk Areas

of outcomes. Insurers must be diligent in understanding data inputs, profitability appetites, and portfolio correlations.

By Karen Sullivan

Technology has been embraced in a variety of ways within the homeowners’ insurance market. Many aspects of the claims process have been automated, insurers are utilizing more climate data than ever before to predict the impact of major catastrophe (CAT) events, and improvements to insurers’ systems have gone a long way toward increasing the efficiency and effectiveness of policy administration. With these improvements, why are more insurers leaving areas with high CAT risk like California and Florida if there are solutions available to help assess and price that risk?

The problem is twofold.

First, in some states such as California, regulators limit the use of CAT modeling by insurers in the ratemaking process. Instead, insurers are beholden to continue a more archaic approach: prioritize experience for rate assessments.

Second, while the scientific development behind CAT modeling has come a long way, where using it in the insurance product pricing process is permissible, it should not be considered the definitive answer when selecting ultimate CAT loss costs. CAT models are stochastic tools offering a range

While CAT modeling can be an effective tool, tweaks to the system are needed to curb the steady stream of insurers leaving high CAT-risk markets.

Time for an Upgrade

Earlier this year, the California Department of Insurance hosted a webinar where a variety of stakeholders were invited to offer comments about the role CAT modeling could play in ratemaking and pricing adequacy in the future. This webinar included experts from the industry, as well as various consumer interest groups and other stakeholders.

During this event, it became clear some of California’s fundamental processes are well behind peer states, such as time to review and approve rate filings and allowing insurers to utilize key resources like CAT models to assess CAT risk. When it comes to rapidly evolving and population-dependent risks like wildfires, we as an industry simply do not have enough historic data that is applicable to modern conditions to credibly price products covering such perils. As a result, other tools are needed to make up the difference.

To move CAT modeling forward as an acceptable tool for assessing and pricing risk in volatile markets, we as an industry need to raise awareness from home-

owners to regulators as to how CAT models can be utilized by insurers to analyze CAT risk. This California Department of Insurance workshop was a step in the right direction.

Consumers should understand what is going on here: Regulators are restricting the use of viable and broadly adopted technology in the ratemaking process. Expanding the insurers’ toolboxes should lead to a more sustainable market with adequate supply for consumers. This is on us as an industry to spread the word that insurance accessibility and affordability are possible for risk-prone states with some regulatory updates.

Looking Ahead

Utilizing CAT risk modeling and other climate risk assessment tools more comprehensively to better inform evolving CAT risks will improve insurance accessibility, but there is more that can be done. Technology should supplement creative thinking and alternative product

development, such as tailored solutions that allow consumers and insurers to finance risks in a more sophisticated manner based on individual goals and objectives. Such solutions are more resilient to volatility over time.

As an industry, we need to take a step back and look at how and where we build, how we manage climate risk, and how we can lean on technology such as CAT modeling to create a more sustainable industry for consumers. Purely looking backward at experience when prospectively setting rates is ineffective. As a result, insurers will be unable to satisfy all relevant stakeholders including consumers, regulators and shareholders.

By accepting advancements in technology, we can gain a better understanding of climate risk, lead us to innovative solutions, and improve access to affordable insurance in highrisk areas.

Sullivan is the head of property at USQRisk, an alternative risk MGA.