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Closer Look: AI Chatbots, Gen AI Set to Revolutionize Insurance Claims Processing: Survey
Cyber Insurance Market ‘Stable’ With Potential for Growth, Says AM Best
Inflation, the Economy and Workers’ Comp: A Positive
Closer Look: US P/C Insurers Post Best Q1 Underwriting Result in 17 Years
Spotlight: Commercial Auto
Profit Struggles Continue
– Summer Edition
Ask the Insurance Recruiter: Could Your Company’s Recruitment Practices Pose a Liability Risk?
The Smart Workforce Pivot: Insurance’s Backdoor to Talent Acquisition
Is It Covered?: The Problem(s) With Hail Claims – Part 3
Closing Quote: Fraud’s Foe: How MFA Shuts the Door on Cybercriminals
Opening Note
Talent Gap
It’s no secret — independent insurance agencies are struggling to find qualified job candidates. And young talent may be even harder to find.
According to a recent report by Vertafore, nearly a third of agents surveyed said they’re finding that “young people just aren’t that interested in insurance.”
Vertafore’s annual insurance workforce survey report also showed a drop in current insurance professionals who would recommend a career in the industry to a friend over the past four years (from 85% in 2021 to 65% this year), and it shared that 32% of employees involved in hiring said “culture fit” was a barrier.
That number was almost three times higher than what was reported in 2022.
Still, nearly three-quarters of all respondents said they plan to stay in the industry for six or more years, and Vertafore reported that, holistically, most of the survey-takers remain keen on the industry.
The survey found that insurance employee retention and talent attraction continue to show up as a major industry trend to watch.
“As far back as 2015, millennials showed little interest in working for insurance and insurance-related organizations — The Hartford’s 2015 Millennial Leadership Survey revealed that just 4% of millennials were considering a career in insurance,” wrote Sharon Emek in an article “The Smart Workforce Pivot: Insurance’s Backdoor to Talent Acquisition” on page 28. Since then, not much has changed, she said.
“A Pew Research study shows that interest in the industry has held at 4% as recently as 2023. Ironically, millennials will make up 75% of the workforce by 2025.”
But solving the talent crisis goes beyond recruiting young professionals. It might be helped by recruiting retired professionals, Emek says.
‘Retired
workers are reshaping retirement,
which could be the salvation that the insurance industry desperately needs to fill so many open positions.’
“Retired workers are reshaping retirement, which could be the salvation that the insurance industry desperately needs to fill so many open positions,” Emek writes.
There is experienced talent in individuals who have retired but are now seeking to bring their knowledge and skill back to the industry in ways that do not require long commutes or being in the office from 9-to-5. “They also prefer a less stressful position at lower pay as they are no longer on a career path,” according to Emek. Organizations should be willing and ready to meet those professionals where they are to fill the talent gap, right now. Are you ready and willing?
Chairman of the Board Mark Wells | mwells@wellsmedia.com
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DESIGN / WEB / VIDEO
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Andrea Wells V.P. of Content
For excess and surplus lines accounts
THINK UFG SPECIALTY
UFG Specialty is a growing company with an appetite to match.
Whether it’s building partnerships or providing excellent service in the evolving excess and surplus marketplace, we adapt to meet our brokers where they need us most.
That’s why we’ve expanded our appetite to include moderate hazard business.
We pride ourselves on being a responsive carrier with the underwriting expertise to provide innovative solutions — think of UFG Specialty for those complex and not-so-complex accounts.
News & Markets
Big ‘I’ Report: Independent Agency Channel Placed 62% of Premiums in 2023
2023 Independent Agent Penetration: All P&C Lines
By Chad Hemenway
Independent agents placed more than 62% of all property/casualty insurance written in the U.S., according to the Independent Insurance Agents & Brokers of America (the Big “I”).
The association’s 2024 Market Share Report said independent agents have high penetration rates in commercial lines, with “room for growth” in personal lines.
Exclusive or captive agents and direct sales accounted for 21% and 16%, respectively, of premium placements in 2023, according to the report.
Total P/C direct written premiums reached $952 billion in 2023, up from $861 billion in 2022. Overall, the independent agency channel placed 87% of commercial lines premiums in 2023, and 39% of personal lines — up a point from 2022. Since 2019, the percentage of placements by independent agents has gone up a point
in personal lines, where they face the most competition from exclusive/captive agents (35% of placements in 2023) and direct sales (25%).
Independent agents wrote nearly 33% of private passenger auto and more than half of homeowners muti-peril premiums in 2023. Among the top 10 lines of business, the highest penetration rate was workers’ compensation, at 91%.
“Despite the significant challenges posed by the hard market, independent agencies’ market share held steady and even continued making gains in key lines — a testament to the strength of the independent agency channel,” says Charles Symington, Big “I” president & CEO. “In this current environment, choice is more important to customers than ever before, and independent agents continue to prove themselves as trusted advisors for their clients and indispensable partners in the insurance marketplace.”
The use of surplus lines grew in all states, said the Big I. Five years ago, about 6.2% of premiums went to surplus lines carriers. In 2023, 9.4% went to these unregulated carriers.
Turning to commissions, the 2023 average rate in the United States was 11.4% — matching the 5-year average — with the highest commission rate in the District of Columbia (13.8%) and the lowest in Delaware (9.9%).
By line of business, the highest commission rate was in surety, at nearly 27%.
The lowest was private passenger auto and excess workers’ comp — 7.7% and 7.8%, respectively. Homeowners multiperil paid 12.4% commission.
The 2024 Market Share Report report compiles and analyzes property/casualty premium data from AM Best and provides insights for agencies and carriers on current market shares by distribution types.
$13.1 Million
The amount a jury awarded to an ultramarathon athlete who was severely injured when she fell on a Seattle sidewalk in 2021. The King County jury found that the city of Seattle and the owners of an apartment building are responsible for the amount. Lesley Mettler Auld, 53, a professional fitness coach who has completed numerous ultramarathons, said through her attorney that she will never run again.
14.6%
The average percent reduction in workers’ compensation rates for Massachusetts businesses beginning on July 1. The cut is almost twice the size of what the state’s rating bureau, which represents insurers, proposed in its filing. The order reducing the rates was signed by acting Insurance Commissioner Kevin Beagan.
668,000
The number of F-150 pickup trucks worldwide from the 2014 model year that Ford is recalling because the vehicles can unexpectedly downshift into the first gear causing a loss of driver control or rearwheel lockup. Dealers will update the powertrain control module software in the trucks. The Ford F-series pickup truck has been the best-selling vehicle in the United States for more than 40 years.
$278,851
The amount in proposed penalties a global manufacturer and distributor of pet products in Arlington, Texas, faces after an employee at Doskocil Manufacturing Inc., operating as Petmate, suffered severe facial burns in December 2023. An Occupational Safety and Health Administration investigation into the incident, in which the employee suffered second-and third-degree burns, identified one willful violation and eight serious violations of required safety regulations.
Declarations
Home Insurance Costs
“I never even talked about insurance, really up until the last year and a half. … Now, it’s a significant impact for the borrower as they qualify for the loan.”
— Said Julee Felsman, senior vice president of mortgage lending at Guaranteed Rate, one of the country’s largest home lenders by volume, reflecting on the impact rising home insurance costs are having on people trying to buy a home, especially in California. Bloomberg reported that home insurance premiums are up 55% across the U.S. from five years ago, according to a Guaranteed Rate report.
Southwest Safety Concerns
“Southwest is following its robust safety management system and is in contact with the Federal Aviation Administration to understand and address any irregularities with the aircraft’s approach to the airport. … Nothing is more important to Southwest than the safety of our customers and employees.
— A Southwest Airlines spokesperson said after an incident in which a Southwest plane triggered a low-altitude alert as it prepared to land in Oklahoma City but was still nine miles from the airport, sparking a federal investigation. According to Flightradar24, the plane descended to about 525 feet above the ground as it passed over Oklahoma City suburbs on the way to the airport. The Dallas-based airline said the plane, a Boeing 737, landed safely.
Affordable Housing Bias
“With this new guidance, we are putting insurers on notice: New York will not tolerate bias against our affordable housing providers. … Insurance discrimination drives up costs for property owners and renters and puts countless affordable homes at risk. My administration is stepping up our enforcement of housing discrimination of all kinds to ensure fairness in our housing market and to keep costs down for all New Yorkers.”
— Said New York Gov. Kathy Hochul regarding guidance from the New York State Department of Financial Services (DFS) to commercial insurers stating that insurers are prohibited from inquiring about or making coverage decisions based on a property’s status as an affordable housing development or a tenant’s source of income.
Aggressive Cyber Disruption
“They’re becoming more aggressive in the ways they try to make money. … It’s trying to create more pain so they get paid more, or they cause more disruption.”
— Kevin Mandia, co-founder of Ballistic Ventures and the former chief executive officer of Google’s threat intelligence firm Mandiant, said of recent cyber attacks on institutions and businesses across the globe. Recent high-profile incidents such as the hack of a London hospital’s health records and the attacks on car-dealership software provider CDK Global show how cybercrime crews are increasingly turning to more sinister techniques to try to bend major companies to their will, abetted by new technology, Bloomberg reported.
Flood Education Gap
“Across the country there’s just an education gap when it comes to coverage for flood events.”
— Said Matt Duffy, managing director and chief risk officer at Neptune Flood, a provider of private flood insurance. Duffy said residents of inland states are often surprised to learn heir homeowners policies don’t cover most flood events. Floodwaters damaged hundreds of properties recently across parts of the Midwest but according to the National Flood Insurance Program (NFIP), relatively few people in Midwest states, especially in Iowa and Minnesota, have flood insurance policies in place.
Verizon Outage Action
“Today’s action is part of the FCC’s ongoing effort to ensure that the public has reliable communications, including access to 911.”
— Federal Communications Commission Chairwoman Jessica Rosenworcel said in a statement after Verizon Wireless agreed to pay a $1 million penalty over a 2022 service outage that left people across the Southeast unable to call 911. The cell phone service provider experienced an outage in October 2022 and took action to prevent similar problems. But some failures recurred, resulting in a 104-minute outage for many customers in Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee, the FCC said.
News & Markets
Excessive Heat Concerns in Workers’ Comp
By Allen Laman
With temperatures pushing above 90 degrees in parts of the Midwest and Northeast United States, many American workers are clocking in during what AccuWeather described as an “intense heat wave that is impacting more than 135 million people.”
Employers may adopt safety measures to protect employees from both the direct and indirect effects of extreme heat, and both state and federal governments offer recommendations for how to deal with scorching conditions.
“However, there are still concerns that these adaptations, behavioral changes and recommendations may not fully reduce the effects of excessive heat,” Sebastian Negrusa, the Workers Compensation Research Institute’s chief research scientist, said during a recent webinar addressing heat-related concerns.
In a new study, WCRI found that compared to temperatures between 65 and 70 degrees, the overall number of work-related injuries increased between 5% and 6% when the daily maximum temperature rose above 90 degrees.
This finding was based on National Oceanic and Atmospheric Administration temperature data from 24 states during the months of May to October through the years 2016 to 2021. That information was then merged with workers’ compensation claims data.
The direct effects of excessive heat are physiological; they include heatstroke, fainting, cramps and fatigue. Indirect effects of extreme heat manifest as a decline in psychomotor, perceptual or cognitive tasks, which could, for example, cause a worker to fall off a ladder.
According to the CDC, between 1981 and 2021, the annual number of excessive heat days from May through September has become more frequent in parts of the South, Midwest and Northeast.
When analyzing their sample, WCRI researchers found that the South is the region driving the work-related injury
count increase, with increases of between 9% and 11% when temperatures exceed 90 degrees. That increase was 8% in the Northeast.
Traumatic injuries, such as fractures, contusions and lacerations, are “much more likely to occur when workers experience excessive heat than [sprains] and strains,” Negrusa said. These traumatic injuries are consistent with events like ladder falls.
The National Council on Compensation Insurance reported in a study earlier this year that both hot and cold days have more workers’ compensation injuries than milder weather days. However, the rate of increases and types of injuries vary depending on whether extreme temperatures are hot or cold or if precipitation is involved. The study compared claims to a mild-weather baseline (60-65 degrees Fahrenheit), with all other factors being
equal. The NCCI study showed that all else being equal, injuries increase with heat. Impacts begin to show at just a few degrees above the baseline and rise to 5% when the temperature is in the low 80s. Injuries increase by 10% for temperatures above 100, according to NCCI.
Anae Myers, assistant actuary at NCCI, said that heat impacts the construction industry almost twice as much as other sectors. “There are fewer injuries on colder days (in construction), but the heat impacts are nearly twice as large as seen for all workers as construction is, of course, a physically demanding sector taking place largely outdoors and subject to seasonal fluctuations,” she said.
In the hottest cities, NCCI found construction injuries can hit a 16% increase over the baseline.
The full study can be accessed on the WCRI website.
continued its recent buying spree with the purchase of four insurance businesses in North Carolina, Pennsylvania, Mississippi and Iowa.
Lehi, Utah-based PCF acquired The Brady Agency, based in North Carolina with service to Virginia; Ignitist, a Medicare and senior benefits specialist in Pennsylvania; Roseberry Insurance Agency, a P/C coverage specialist in Mississippi; and Sinnot Agency of Iowa.
PCF said Brady will unite with Insurance Associates of Triad, a PCF business in Asheboro, North Carolina.
The brokerage operates in 40 states. In May, PCF acquired All Star Insurance in Texas and Encore Advisors in Georgia. In April, PCF acquired Alabama’s MK Insurance Group.
Zurich, AIG Travel Guard
Zurich announced it is purchasing the global personal travel insurance business of American International Group (AIG) for $600 million.
The deal, according to Zurich, may include an additional payment if specific targets are met after the sale, which is expected to close by the end of 2024.
Zurich called travel insurance a “priority” and said AIG’s Travel Guard business will expand its U.S. footprint as a part of Zurich’s travel insurance provider, Cover-
More Group, making it a leader in the line.
The deal also includes AIG’s global service centers but AIG said the transaction excludes travel coverages offered through AIG’s A&H business.
South Central
Sunstar Insurance Group, First Arkansas Insurance
Sunstar Insurance Group LLC announced a merger with First Arkansas Insurance in Pine Bluff, elevating Sunstar’s statewide presence to now include 14 independent insurance locations and over 120 employees generating almost $19 million in combined revenue.
First Arkansas will continue to operate with the same leadership team and employees, as a division of Sunstar.
Sunstar Insurance Group, based in Memphis, was founded in 2012 by Chairman and CEO David “Casey” Bowlin and has grown to become the 32nd largest property/casualty insurance agency in the U.S. as ranked by Insurance Journal.
Artemis Risk Solutions
Artemis Risk Solutions, a recently formed insurance brokerage specializing in employee benefit solutions, property/ casualty and personal lines, formally announced its launch.
Co-founded by industry veterans Clint Anderson, chief revenue officer, and David Lamb, president, P&C, Artemis is headquartered in Dallas with representatives throughout the U.S.
The organization is led by Chris Burns,
CEO, who has over 40 years of leadership experience in the insurance brokerage, insurance, and insurtech industries. Burns previously served as CEO of the employee benefits practice at Willis Group in New York City and London.
Chris Cordes serves as the Nashvillebased president and leads with a career spanning 35 years and extensive expertise in sales leadership, organizational development, and growth strategies.
Artemis also named Dr. Charles Van Duyne as chief medical advisor to proactively work with clients and recommend paths toward improved employee health and engagement.
Artemis Risk Solutions’ suite of services encompasses employee benefits, property/ casualty and personal lines.
PointeNorth Insurance Group has acquired McCrary-Daniels Insurance, based in Douglas, Georgia.
McCrary-Daniels has been in business for 100 years, offering personal and commercial insurance products. Johnathan Day is an owner and Henry (Randy) Stallings Jr., is owner/managing member. PointeNorth is headquartered in Atlanta.
West
Emerald Bay Risk Solutions, Lightspeed Specialty Insurance Solutions
Emerald Bay Risk Solutions is partnering with Lightspeed Specialty Insurance Solutions to launch an insurance facility in California that delivers coverage for homeowners and landlords.
The facility will primarily target owneror tenant-occupied dwellings across the state, providing property and liability insurance in low wildfire risk areas.
Emerald Bay is a specialty insurance firm that provides admitted and surplus lines insurance products and services.
Lightspeed is a California homeowners property specialist. Lightspeed is a subsidiary of Volnay Insurance Holdings, a Lloyds cover holder.
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News & Markets
Inflation, the Economy and Workers’ Comp: A Positive Outlook
By Jahna Jacobson
Inflation is cooling, employment growth is normalizing and the workers’ compensation outlook is good, according to a national economist specializing in workers’ compensation.
The economy and the property/casualty insurance industry are inextricably linked together, said Stephen Cooper, executive director and senior economist at the National Council on Compensation Insurance (NCCI), speaking at the 2024 Annual Insights Symposium (AIS) in May.
“People producing goods and services, the movement of those goods and services, the buildings where those goods and services are stored and sold, all of that is economic activity,” Cooper said. “And that’s what we in the property and casualty industry insure. We’re insuring economic activity.”
When it comes to the economy, numbers and sentiment don’t always align.
While inflation has cast a broad shadow, the economy, as a whole, is in good shape, with a real GDP growth of 3.1% in 2023 and a positive start to 2024, Cooper said.
Labor Market
The labor market remains healthy, with over three million new jobs added in 2023 and a similar pace expected for 2024. That means good things for the property/ casualty insurance industry, including workers’ compensation.
Labor market churn has slowed, Cooper said. “The labor market does appear like it is slowing back towards normal.”
Headlines about the labor market tell a story but not the complete story.
While jobs currently exceed the pre-pandemic levels of February 2020, the market has yet to match the pre-pandemic trend. Cooper said this difference is the gap: “Where we are in employment today is below where we would have been had we continued to grow along the pre-pandemic
trend if the declines had never happened.”
Part of that gap is pandemic-related, Cooper said. People left the labor force because they were ill, had to care for family members who were sick or left because they did not have childcare. But, adjusted for demographics, some of that loss would have happened anyway as boomers reach retirement age and leave the workforce, he added.
Though the numbers have not caught up with where they would be, the growth trend is now in line with the pre-pandemic growth rate. That’s one sign that we can look at to say things are starting to look a lot more normal, he said.
The Economy and Workers’ Comp
Cooper said the economy’s health and workers’ compensation are not a one-toone relationship, however.
In 2023, payroll grew by 6.2%, well above the pre-pandemic average and the longer-term trend. Wages grew by
3.9% and employment grew by 2.3%.
Healthcare, leisure and hospitality, and construction saw the biggest jumps in employment numbers from 2022 to 2023, and wages for each were up over 4%.
However, while construction comprised 6.0% of workers and 7.5% of payroll, the industry accounted for 20.1% of premiums. Combined office employment accounted for 29.0% of employees, 38.9% of payroll and 18.9% of premiums. Large companies that self-insure can skew the numbers as they do not appear in the NCCI system.
“While (construction) is a lower headcount and a lower share of payroll, construction is one of the highest loss cost industries out there, as we think about workers’ compensation,” Cooper said.
Inflation
Inflation has been a concern, with the highest inflation in 40 years. However, it has slowed down in 2023 but remains above the Federal Reserve’s target. While it has slowed down in 2023, it remains near 3.5%.
Medical inflation is a significant factor, including physician care, hospital outpatient care, and medical supplies.
There have been some wild swings over the last few years, Cooper said. “And that’s exactly what we want to see because that’s going to raise the flag for us to dive in and say, what’s going on, what’s impacting this, and is it going to hit us in workers’ compensation?”
Trends in medical inflation have been different than the overall trends.
“They have not followed the broader economy,” Cooper said. “And they haven’t participated as much in the wild roller coaster ride of inflation that we’ve had over the last couple of years.”
Interest Rates
Cooper said interest rates are likely to decrease in the near future.
“Coming out of the great financial crisis, interest rates were driven to zero,” Cooper said. “Quantitative easing was causing interest rates on real terms to be even more negative.”
Rates began to climb slightly in 2017 and 2018, and the Fed took notice and started
lowering rates again, even before COVID-19 hit, to prevent the economy from weakening.
Today, interest rates are over 5% at the federal funds rate.
“The question is, what’s the anomaly?” Cooper said. “Are today’s 5% interest rates the anomaly, or were the last 15 years the anomaly?”
The numbers in early 2024 reflect a strong economy, so the Fed has been reluctant to lower interest rates. Weaker payroll reports (at the time of the event), however, may spur lower rates.
“So, if you’re following the interest rate picture in real-time, you’re going to be whipsawed,” Cooper said. But when the bigger picture is considered, the expectation is that the Fed will be biased and reduce interest rates over time slowly, “and the main reason for that is because they don’t want to become more restrictive than they need to on the economy.”
A slow process will prevent having to
take more drastic measures later, Cooper said. The economy will dictate how quickly they fall.
“It’s going to depend largely on how evolution in the labor market and how inflation evolves before we’re going to see materially lower interest rates coming through,” he said.
That will keep interest rates higher for longer, “which can be a bit of a boon for us here in the industry with that higher investment income,” Cooper said.
In conclusion, Cooper said that growth in the labor market continues to be strong, inflation continues to decline, medical inflation is more benign, and interest rates will decline slowly.
View the full NCCI/AIS presentation: State of the Economy—The Labor Market & Workers Compensation Video online at https://www.ncci.com/Articles/Pages/ Insights-AIS2024-State-Economy-ImpactonWorkersComp.aspx).
People
National Specialist insurer
Hiscox appointed Mary Boyd CEO of its U.S. business unit to succeed Kevin Kerridge, who is stepping down after 30 years in the business.
Mary Boyd
Boyd had been CEO of Plymouth Rock Assurance’s independent agency business since 2018. She joined Plymouth Rock from The Hartford, where she was senior vice president, responsible for the agency’s and direct channels’ personal insurance businesses.
Hiscox said Kerridge will stay on in an advisory capacity for several months.
ISU Group (ISU), an independent agency network, tapped Dan McCarthy as its next chief executive officer, assuming the responsibilities held by T.J. Ryan III over the past 35 years.
McCarthy is currently ISU’s chief operating officer, a role he has held for the past decade.
Ryan will move into a newly created role of vice chairman, where he will focus on strategic projects and industry opportunities.
WTW appointed Len Graziano as casualty strategy and execution leader within Corporate Risk and Broking, North America (CRB NA).
Graziano joins WTW from Aon, where he led the excess casualty practice. At WTW, he will focus on developing and implementing client-centric initiatives throughout the North America casualty market and promote the strategic alignment of all casualty product lines. Graziano will also serve as a senior casualty broking representative on some of the most complex risks within WTW’s portfolio, including new clients.
Markel, headquartered in Richmond, Virginia, appointed Kyle McGrath head of
Fine Art – North America. McGrath will be responsible for leading Markel’s fine art business in North America and driving the expansion of this class of business along with developing the regional underwriting strategy, product offering and regional footprint.
the insurance industry for over 25 years in the Manchester area, previously serving as partner at Richard E Kelley Ins. Agency.
Lauryn Cochrane has nearly 10 years of experience as director of operations to the position of personal lines account manager.
McGrath, who is based in New York, joins Markel from Private Client Select (formerly AIG Private Client Group), where she spent three years as vice president – head of fine art and collections for the insurer’s private client group.
East
Virginia-based specialty insurance broker Ames & Gough appointed Kevin McGrath as a client executive and vice president focusing on design firm clients.
Based in Boston, McGrath began his career in insurance in 2014, serving as claims manager with Beazley following a decade in legal practice as an associate with Gogick, Byrne & O’Neill, LLP and Ingram Yuzek Gainen Carroll & Bertolotti LLP. Before joining Ames & Gough, he was vice president of professional services at Risk Strategies Co. in New York.
Ames & Gough also appointed Baynard Stanchina as an account executive focusing on design firm clients.
Based in Washington, D.C., office, Stanchina has more than a decade of insurance company experience. He joins Ames & Gough from Markel Corp.
King Insurance Partners , headquartered in Florida, hired new team members at its Manchester, New Hampshire, location.
Kathy Kelley, commercial lines manager, has been in
Kim Gagne has 40 years of experience in the insurance industry in both personal and commercial lines. She worked her way up from a receptionist to an associate underwriter.
Eric Wimsatt joined Alliant Insurance Services as vice president within its Alliant Americas division. He is based in the Washington, D.C., area.
Wimsatt will focus on property/casualty insurance for regional and national clients. He has over 20 years of experience in the insurance industry, having previously served as vice president producer at USI Insurance Services.
Alliant is headquartered in California.
Midwest
Krause Group, headquartered in Des Moines, Iowa, named Holly Westervelt to the newly created role of vice president of sales, a part of the leadership team for Krause Group’s expanding agency division, The Krause Agency.
Westervelt joins Krause Group with over 30 years of experience in the insurance industry. She most recently served as enterprise and exclusive agency project leader at American Family Insurance.
Powers Insurance & Risk Management, based in St. Louis, hired Kelsey Wyrick as a personal lines account manager.
Before joining Powers, Wyrick worked as an
Dan McCarthy
Len Graziano
Kyle McGrath
Kevin McGrath
Baynard Stanchina
Kathy Kelley
Lauryn Cochrane
Eric Wimsatt
Holly Westervelt
Kelsey Wyrick
account manager at Bukaty Insurance Agency and Lockton Affinity, and as a personal lines account manager at Integrity Midwest Insurance LLC.
Western National Insurance Group, headquartered in Edina, Minnesota, hired Jessica Archuleta as assistant vice president of actuarial services and promoted Julia Jenson to vice president of communications and business transformation.
Archuleta has over 20 years of experience in the insurance industry. She joined Western National from Fortegra.
Jenson joined Western National in 2019 following 13 years in communications and marketing leadership roles at Catholic Charities Twin Cities and Saint Mary’s University of Minnesota.
South Central
Kim Ayers joined Risk Services – Leavitt Insurance Agencies, headquartered in Shreveport, Louisiana, as a commercial insurance agent.
Ayers has worked in insurance for Leavitt Group since 2016, previously serving as a producer with Leavitt Recreation and Hospitality Services Inc. She will continue focusing on the outdoor recreation industry.
Hotchkiss Insurance, headquartered in Carrollton, Texas, named three new partners — Chris Bailey, Chase Fondren and Dustin Rivera
Bailey has been an integral part of Hotchkiss for the past nine years, serving as a commercial insurance specialist. Before joining Hotchkiss, he was a strategic account manager, national accounts, at Mars Dinks.
Fondren brings an eight-year tenure at Hotchkiss Insurance, serving as a sales executive with specialized expertise in construction risk, while also serving a variety of commercial and personal clients. Before joining Hotchkiss, he worked as director of business development at Advanced Medical Resources LLC.
Rivera, a personal lines practice leader, specializes in providing comprehensive coverage solutions to high net worth clientele.
Southeast
Alliant Insurance Services named Kevin Wintermute executive vice president of its employee benefits group based in Charlotte, North Carolina.
Wintermute has 28 years in the business. Previously, he was a senior vice president at Willis Towers Watson.
Jimbo Floyd, head of Turner Wood and Smith Insurance in Gainesville,
Georgia, has been sworn in as president of the Independent Insurance Agents of Georgia. Also serving on IIAG’s executive committee through June 2025 are President-Elect Jarrett Bridges, of Turner and Associates; Vice President Robbie Moore, of Legacy Risk Solutions; Secretary-Treasurer Kevin Panter, of Kevin Panter Insurance; Immediate Past President Wendi Hamby, of Hamby and Alosio; and National Director Andy Siegel, of Siegel Insurance.
West
CSAA Insurance Group named Jeff Huebner executive vice president of commercial insurance, responsible for commercial insurance distribution under the Mobilitas brand. He has been with CSAA for more than 22 years and has more than 30 years of industry experience.
CSAA is based in Walnut Creek, California.
Kim Ayers
Chris Bailey
Chase Fondren
Dustin Rivera
Closer Look: Technology
AI Chatbots, Gen AI Set to Revolutionize Insurance Claims Processing: Survey
By L.S. Howard
Amajority of global insurers are actively endorsing the application of AI chatbots and generative AI in claims resolution processes, underwriting and customer fulfilment, according to a survey conducted by Gallagher Bassett, the claims-services provider and subsidiary of Arthur J. Gallagher & Co.
The survey found that insurers in 2024 are placing an emphasis on the utilization
of artificial intelligence (AI) technologies, appropriately assessing underwriting risks to inform pricing decisions, and employee retention strategies, said the survey report titled “The Carrier Perspective: 2024 Claims Insights.”
“[I]nsights from worldwide insurers show that the primary area utilizing these technologies is customer service (67%) and claims processing (45%). These technologies also play a key role in risk management operations (31%) and under-
Source: Gallagher Bassett
writing processes (25%).”
While the order of implementation remains consistent across global regions, there is a slight variation in percentage values, Gallagher Bassett explained. For example, among UK insurers, “customer service is still the predominant area for implementing AI chatbots and generative AI, with an adoption rate of 63%, followed by claims processing at 43%. Risk assessment accounts for 30%, and underwriting operations hold a share of 25%, both in line with the global sentiment.”
changing and inflationary environment.”
Gallagher Bassett said some insurers are implementing AI chatbots in the claims process, mainly in high frequency/ low severity personal lines, such as auto property damage.
The survey found that, internationally, a significant portion of insurers (44%) are currently in the process of integrating AI chatbots or generative AI into the claims resolution process, while 42% have already incorporated these technologies.
“Regionally, there are minimal variations. In the UK, 40% of insurers have already embraced AI chatbots or generative AI tools, while 43% are actively progressing towards implementing them,” the survey report said.
Gallagher Bassett emphasized that sole reliance “on historical claims data is no longer a viable option for insurers due to the impact of social, economic, and geopolitical factors.”
As a result, insurers are placing greater importance on the use of AI and data analytics, which allows them “to make more accurate predictions and informed decisions in a rapidly
“Notably, most global insurers are actively endorsing the application of AI chatbots and generative AI in claims resolution processes, as well as underwriting and customer fulfilment.”
Gallagher Bassett warned, however, that insurers must exercise caution when implementing chatbots for complex liability claims.
“Such claims necessitate the expertise of experienced claims professionals to ensure thorough risk mitigation,” the report said. “While chatbots can assist in certain aspects of the claims process, it is crucial to strike a balance between automation and human involvement to guarantee fast, accurate, and comprehensive handling of complex claims.”
Primary Concerns
The report noted that incorporating AI brings challenges, particularly in the initial phases, when it must “coexist with conventional methods.” Looking specifically at the UK market, Gallagher Bassett said the primary concern for 33% of UK insurers revolves around the seamless integration of AI into business operations. “Ensuring compliance (28%) in the implementation of AI
is the second major concern among insurers in the region. Apprehension regarding data privacy and security is on the minds of 20% of UK insurers, while 13% have reported hurdles associated with determining suitable applications of AI. A further 12% of insurers have voiced concerns about staff adoption of AI.”
Gallagher Bassett said it is pivotal to the industry’s future that concerns are eased over the integration of AI and the establishment of best practices.
“In order to securely realise the opportunities AI presents for claims processing, the approach needs to focus on data privacy and ease of use.”
Other Report Findings
• Supply chain disruptions affect 62% of all global insurers’ claims resolution processes.
• Digital claims processing is a top priority for more than half of surveyed insurers.
• Litigated claims are settling at increased costs, according to 33% of UK insurers.
• Most global insurers (86% of respondents) depend on climate data and analytics in their risk assessment and underwriting processes to some extent.
• Generative AI chatbots are used by 63% of UK insurers in their customer service operations.
• More than half (54%) of global respondents have implemented digital claims processing to address supply chain challenges, and 62% say the challenges have a moderate to significant impact.
• Globally, 30% of insurers say hybrid work arrangements have significantly reduced employee engagement.
• In the UK, 45% of insurers
are concerned about the longterm sustainability of hybrid work arrangements.
• A significant number of global respondents (84%) emphasized the pivotal role
competitive salaries play in retaining top talent.
Gallagher Bassett said 150 insurance businesses in North America, the United Kingdom, Australia, and New Zealand were surveyed. Participants comprised 85% insurers, with MGAs and MGUs accounting for 11%, and underwriting agencies 4%.
Cyber Insurance Market ‘Stable’ With Potential for Growth, Says AM Best
By Chad Hemenway
According to industry rating agency AM Best, there are enough positive factors to give the cyber insurance market a “stable” outlook despite a stall in premium growth. Analysts at AM Best issued a segment outlook and report in late June, and said the cyber market in 2023 was essentially flat following a tripling of the market’s premium growth from 2019-2022.
“The reduction in rates has been due to various factors, including increased competition from the supply side,” said Christopher Graham, senior industry analyst at AM Best. “In addition, improving cybersecurity practices and decreases in claims frequency have also led to rate reductions after a period of accelerated rate increases driven by a surge in ransomware attacks in 2020 and 2021.”
AM Best’
Association of Insurance Commissioners, but the agency believes a good amount of premium comes from non-NAIC filers like captives and Lloyd’s. Surplus lines carriers in 2022 accounted for a majority of the cyber market and expanded market share in 2023, said AM Best, which believes this market in particular will continue to grow as these insurers can respond quickly to insureds’ needs, especially for small- and medium-sized enterprises — a customer base AM Best expects to grow as these business move to digital platforms.
“We expect that cyber coverage will continue to grow over time, as the heightening awareness of cyber risks contributes to an increase in exposures and, correspondingly, an increase in demand for cyber insurance,” Fred Eslami, associate director, said.
Cyber insurers rely heavily on reinsurance, with more than 50% of premiums ceded to reinsurers with sufficient capacity. The market has led additional underwriting standards, such as exclusions for cyber war and silent cyber. Still, systemic risk has become more of a concern for the cyber insurance marketplace and models have yet to adequately be tested, AM Best said. If reinsurers were to pullback in any way to limit their exposure, the primary market could change its appetite for cyber insurance.
Chubb is the largest writer of cyber insurance, with 100 % of direct premiums from packaged products. XL America and Fairfax Financial are next, with 100% of DPW in standalone coverage.
Travelers moved up two places in the ranking, having increased DPW 22% in 2023 compared to 2022. Berkshire Hathaway, moved from 12th to 6th largest with DPW growth of 26.6%.
Closer Look: P/C Insurers US P/C Insurers Post Best Q1 Underwriting Result in 17 Years
By Susanne Sclafane
Even though direct loss ratios for commercial auto and other liability lines rose in first-quarter 2024, across all lines U.S. property/ casualty insurers posted a net combined ratio of 94 — the best since first-quarter 2007.
Translating to an aggregate underwriting profit of $9.5 billion (compared to an underwriting loss of $8.0 billion in first-quarter 2023), the industry is poised for a full-year underwriting profit too, analysts from Fitch Ratings predicted in a recent research note documenting the first-quarter numbers and commenting on the trends that
lie beneath them.
Fitch analysts are careful to point out that given the uncertainty related to loss reserve experience and natural catastrophes, it is likely that net loss and combined ratios for the year will end up above the first-quarter 2024 levels of 68.8 and 94.0. But Fitch analysts still expect strong fullyear returns even considering the prospect that commercial lines pricing won’t continue to outpace loss cost inflation and heightened litigation-related risk in several segments.
Key metrics presented in the first-quarter 2024 research note resemble the results presented in an earlier report from AM Best, but the Fitch report adds
direct loss ratio information by line of business that is not included in the Best report. Both reports include information on direct written premium growth by line in the quarter.
On a summary graph in the Fitch report, drops in the direct loss ratio for private passenger auto and homeowners stand out as the biggest improvements, supporting Fitch analysts’ insight that lower winter storm losses and a recovery in personal auto results were the two main drivers of the shift to a strong statutory underwriting profit industrywide.
Providing more detail behind the numbers, James Auden, managing director, North American Non-Life Insurance
at Fitch Ratings, noted that the industry direct loss ratio for auto physical damage fell more than 15 points in the quarter, contributing the 9.4-point drop in the private passenger auto loss ratio.
Also noticeable, however, are the upward movement in the other liability loss ratio, a flat commercial auto result and just a small improvement for the workers’ compensation line. For workers’ comp, premium growth turned negative in the quarter.
“Overall commercial lines underwriting results are anticipated to remain profitable with modest loss ratio deterioration” going forward, the Fitch Ratings note
says. So far, “ongoing weakness in commercial auto and other liability-occurrence business has been mitigated by continued highly favorable workers’ compensation results.”
Auden recently wrote about trends in commercial auto insurance. (See page 24) With loss ratios sharply diverging for personal and commercial lines, Fitch recently moved the sector outlook for U.S. personal lines insurance to “Improving.”
The sector outlook for U.S. commercial lines insurance remains “Neutral.”
“Improvement in performance for 2024 will continue to be driven by personal lines results, attributable to recent substantial pricing actions and a moderation of unusually
high loss severity trends,” the Fitch writeup says. For commercial lines, persistent inflation and slowing economic growth raise the “potential for an unfavorable shift in loss reserve adequacy that clouds the earnings picture, led by commercial auto and other liability product lines.”
A streak of nearly two decades of favorable calendar-year loss reserve development could come to an end in 2024, the research note suggests. 2023 marked the 18th straight year of favorable loss development for the P/C industry overall, but “the accuracy of insurers’ loss projections for claims severity tied to inflation and litigation risks in commercial auto and other liability business will
determine” if the span extends to 19 years in 2024, Fitch said.
During the first quarter, a 32% increase in investment income combined with the underwriting turnaround improved the profit picture for the U.S. P/C insurance industry, pushing operating income up 300% to $26.2 billion. Together, growth in underwriting and investment income fueled an annualized operating return on surplus over four-times higher — 10.2% in first-quarter 2024 vs. 2.4% in first-quarter 2023, according to Fitch Rating analyst calculations.
The report notes, however, that in addition to higher yields, the jump in investment income was affected by a onetime $2.1 billion dividend from affiliates for Liberty Mutual.
Net income, which leapt to $40 billion from $9 billion in the year earlier period, also reflected the impact of activity at one company, Fitch reported, noting realized gains of $14 billion for National Indemnity Company from the sale of Apple stock, which impacted the industry result.
Sclafane is Executive Editor of Carrier Management, a publication of Wells Media Group serving property/casualty insurance carrier executives. She is a media professional with deep background in the P/C insurance industry including 25 years as editor and reporter for trade magazines, online news services, digital journals. Her prior experience includes 14 years as a casualty actuary.
Spotlight: Commercial Auto
Commercial Auto Insurance Profit Struggles Continue
The commercial auto insurance segment maintained its place as a weaker-performing U.S. property/ casualty insurance product line in 2023. Despite successive periods of pricing and underwriting actions, commercial auto has generated a statutory combined ratio above 100 in 12 of the last 13 years, including a highly unprofitable 109 in 2023.
By James B. Auden
In contrast, the overall commercial lines insurance sector reported an unusually long period of success in recent years, with a 97 average combined ratio for the five years 2019 through 2023. This performance is largely due to an extended hardening market pricing cycle that is entering its seventh year, combined with renewed market underwriting discipline, and despite loss volatility from multiple sources.
Commercial auto results are anticipated to modestly improve in 2024, but several systemic and economic factors continue to influence claims trends and add to loss
reserving uncertainty that will inhibit any return to underwriting profitability for the market in the near term.
History of Underwriting Losses
Commercial auto is the third largest product segment in the U.S. commercial insurance sector with $55 billion in net written premiums in 2023. Premium volume has grown at an annualized rate of over 9% for the last five years.
Prior to 2020, substantial corrective underwriting and pricing actions over many years failed to restore segment profitability as insurers grappled with risk factors tied to expanding transportation activity, shortages of trained drivers, and the emerging peril of distracted driving from more complex dashboards and growing dependence on digital devices.
Also, growth in loss costs over the long term were influenced by more sophisticated, complex technology and components within vehicles that boost physical damage costs, accidents occurring at higher speed that increase loss severity and vehicular
The sharp decline in driving activity and other economic disruption during the pandemic led to a brief respite in commercial auto underwriting losses with the segment generating a 99 combined ratio in 2021. However, the fundamental challenges in commercial auto never went away, actually expanding amid the economic recovery from the pandemic.
deaths, and more frequent claims litigation that leads to higher ultimate settlement costs.
The sharp decline in driving activity and other economic disruption during the pandemic led to a brief respite in commercial auto underwriting losses with the segment, generating a 99 combined ratio in 2021. Reported commercial auto liability claims fell by 25% from accident year 2019 to 2020, and claims closure and payment patterns were greatly affected by the slowdown in judicial activity from court closures. Annual reported claims volume has gradually recovered, with total
Prior period loss reserves in commercial auto liability developed unfavorably for the last 12 consecutive years, averaging over 6% of calendar year earned premiums from 2019-2023, including 7.5% in 2023.
reported commercial auto liability claims in 2023 approximately 6% below 2019 levels.
However, the fundamental challenges in commercial auto never went away, actually expanding amid the economic recovery from the pandemic. The average statutory closed claim payment in commercial auto liability increased by 39% from calendar year 2019 to 2023 as loss severity spiked in the last three years relating to the recent rise in general inflation, as well as supply chain and labor market shortages. Additionally, more frequent attorney involvement in transportation claims and greater potential for nuclear verdicts in several jurisdictions continue to drive commercial auto loss costs. An expanding presence by the litigation finance industry further adds to insurers’ litigation exposure.
Chronic Loss Reserve Deficiencies
In tandem with generating annual material underwriting losses, prior period loss reserves in commercial auto liability developed unfavorably for the last 12 consecutive years, averaging over 6% of calendar year earned premiums from 2019-2023, including 7.5% in 2023. Consistent reporting of annual loss reserve deficiencies in commercial auto reflects the inherent uncertainty in estimating loss costs. Besides the negative earnings impact from reserve development, regularly underestimating incurred losses in the current period adds to the likelihood of underpricing future renewal business.
On an accident year basis, the industry in aggregate has a similar poor track record in estimating commercial auto liability ultimate losses.
For accident years 2014-2019, the current reported loss and loss adjustment expense (LAE) ratio is 10 percentage points higher than original estimates on average. The large shift in claims frequency has contributed toward a brief respite in development as the 2020 accident year has developed modestly favorably since inception.
While the 2014-2019 years still may report adverse experience, of greater concern is that the 2021 and 2022 accident years each already have reported 2 percentage
points of unfavorable development from the original estimates, despite ongoing underwriting and pricing actions. This continued adverse experience indicates that the commercial auto industry did not fully anticipate the effect of economic inflation and rising social inflation in the last two years.
As the bulk of segment loss reserves are held in the most recent underwriting periods, the reserve experience of the 2021-2023 accident years will influence commercial auto underwriting results going forward.
An accident year’s reserve development continued on page 26
Count On Us.
Spotlight: Commercial Auto
continued from page 25
trend in the first few years, favorable or unfavorable, rarely reverses itself for liability lines. While these most recent accident years may develop unfavorably going forward, insurers’ approach to reporting incurred losses has changed somewhat in response to claims inflation that may dampen the magnitude of future adverse development.
First, the reported industry loss ratio in commercial liability in accident year 2023 of 80 is 4 to 5 percentage points higher than the original loss ratio reported for past highly deficient underwriting periods, suggesting a more prudent initial incurred loss estimate.
relative to prior highly deficient years.
Price Increases Alone Can’t Solve Problems
Second, statutory data shows that reserves per outstanding commercial auto liability claim of $61,000 are 37% higher than the year-end 2019 level. Also, accident year reserve ratios, including paid-to-incurred losses and incurred but not reported (IBNR) losses-to-incurred losses at 12 to 36 months for accident years 2021-2023, are at more conservative levels
Over a decade of underwriting and pricing actions have failed to move segment results to a more profitable footing. Commercial auto quarterly renewal premium rates have averaged over 8% in the last four years, according to the Council of Insurance Agent & Brokers (CIAB) Quarterly Commercial Market Pricing Survey, including a 7.3% increase for fourth-quarter 2023.
Material changes in segment perfor-
The recent 2021 and 2022 accident years each already have reported 2 percentage points of unfavorable development from the original estimates despite ongoing underwriting and pricing actions. Continued adverse experience indicates that the commercial auto insurance industry did not fully anticipate the effects of inflation — economic and social — in the last two years.
mance will require more rate but also a tempering of loss severity patterns to stabilize segment performance. It is unclear whether market competitive forces will intensify or policyholder fatigue from years of price hikes will set in at some point to inhibit a return to underwriting profits.
Fundamental improvement in commercial auto risk selection and pricing adequacy are also warranted. Gathering better information in the policy application process, combined with harnessing advanced information technology from telematics to artificial intelligence, will provide the most likely path to longer-term fundamental change.
This article first appeared in Carrier Management, a sister publication to Insurance Journal.
Auden, CFA, is managing director, North American Non-Life Insurance at Fitch Ratings. Email: jim.auden@fitchratings.com.
Commercial auto quarterly renewal premium rates have averaged over 8% in the last four years. It is unclear whether market competitive forces will intensify or policyholder fatigue from years of price hikes will set in at some point to inhibit a return to underwriting profits.
Impacts of Economic Changes on California Workers’ Comp
Projected changes to California workers’ comp claims frequency and severity due to industry mix of employment are negligible through 2026, while employment in most industries fully recovered from the initial pandemic
related changes by the end of 2022, a new report from the Workers’ Compensation Insurance Rating Bureau of California shows.
WCIRB released an update to the Impact of Economic Changes on
California Workers’ Compensation report. The report shows that while employment in hospitality fully recovered in 2023, retail employment is expected to remain below 2019 levels until 2026. The report forecasts construction employment to grow moderately in 2024 and 2025 and slowly in 2026, similar to the overall growth.
Source: Workers’ Compensation Insurance Rating Bureau of California Healthcare employment fell slightly in 2020, then rebounded in 2021. It is projected to grow modestly through 2026, according to WCRIB.
“Unemployment is forecast to increase slightly in 2024 and then decrease slightly, remaining at historically low levels,” the report shows. “WCIRB research has found that increases in unemployment are correlated with decreases in indemnity claim frequency. Given the current forecast of changes in the unemployment rate is small, there would also be a small impact on changes in indemnity claim frequency.”
Claim frequency rose substantially in 2021 due to the mix of employment by industry, an increase largely driven by the return of hospitality employment, but modest industry mix impacts on claim frequency and severity are projected to continue and offset each other, yielding negligible pure premium impacts through 2026, according to WCIRB.
Wages overall are forecast to increase strongly in 2024, then return to a lower increase in 2025 and 2026.
News & Markets
Cal/OSHA Board Adopts Workplace Standard for Indoor Heat
ACalifornia workplace safety oversight board adopted a new standard for indoor workplaces to enact safety measures when the temperature reaches 87°F.
The Occupational Safety and Health
Standards Board approved an indoor heat standard that requires indoor workplaces to be cooled below 87°F if feasible when employees are present, and below 82°F if feasible in places where workers wear protective clothing that restricts heat
removal or work in high radiant heat areas.
Local and state correctional facilities as well as emergency operations directly involved in the protection of life or property are exempted from the proposed regulation. Cal/OSHA is in the process of developing an industry-specific regulation for local and state correctional facilities.
Cal/OSHA’s heat illness prevention regulation applies to most indoor workplaces, such as restaurants, warehouses and manufacturing facilities. When the indoor temperature reaches 87°F, employers are required to take steps to protect workers from heat illness. Requirements include providing water, rest, cool-down areas, methods for cooling down the work areas under certain conditions and training.
Employers may be covered under both the indoor and outdoor regulations if they have both indoor and outdoor workplaces.
The board is a seven-member body appointed by the governor, and it is a standards-setting agency within the Cal/ OSHA program.
The Office of Administrative Law has 30 working days to review and approve or deny the proposal. The board requested that the regulation take effect immediately after OAL approval.
Idea Exchange: Ask the Insurance Recruiter
Could Your Company’s Recruitment Practices Pose a Liability Risk?
As an insurance organization you understand risk management better than most businesses. You advise clients on how employment practices pose liability risks, but when is the last time you’ve thought about your own risks, particularly when it comes to hiring and recruitment?
Below are just a few of many stories my team has heard first-hand from people interviewed by insurance organizations. Pause for a moment and think: “Could my managers do or say something inappropriate or illegal in an interview?”
Add Alcohol to the Mix
I once had a client who arranged the candidate’s final interview over drinks. The idea came from an innocent enough place. The hiring manager wanted to see how the person interacted with others in a social setting.
Unfortunately, it also came with unintended consequences because the candidate felt uncomfortable not ordering a drink, which led them to interpret the situation as a test rather than an interview. Ultimately, it made them question what kind of culture the company really had.
Diversity and inclusion are excellent goals and, while the sentiment was great here, clearly a horrible sentence to utter in an interview. This is not the kind of thing anyone in your company needs to highlight at all. — Kris Gibson,
Managing Partner
Form Bias and Assumptions About Working Parents
I was floored when a hiring manager said to my candidate: “If you have children at home this position probably won’t work for you because it requires travel.”
This person made all sorts of assumptions about my candidate’s willingness and ability to balance responsibilities between home and work. Ultimately, this comment
The agency president clearly came to the interview with concerns about the candidate’s age. Those perceptions were based on assumptions, which are problematic to begin with, not to mention how they broached the subject. It was a clunky way to understand the candidate’s future potential and longevity.
By Mary Newgard
A better way is to ask: “Tell me about your career goals. What do you want moving forward in your career?”
You’ll gain insight on the issues you want without looking like a clown, and perhaps crossing into age discrimination and illegalities, depending on your state. — Kris Gibson, Managing Partner
In my opinion, companies and candidates are far better served to keep a more relaxed interview setting to coffee or lunch meetings. — Chris Winterboer, Partner
Make a Big Thing Out of Your Diversity Policy
“I was just telling the girls it would be great to get some diversity in here.”
Think that phrase couldn’t be said by an insurance agency CEO? Think again. There is so much to unpack here, but we’ll focus on the “diversity” bit. The candidate this was said to is a middle-aged white male with a goatee. Yep, a goatee and perhaps as he put it “a shade darker white than some others” was his apparent diversity.
conveys a sense that their company is not a good fit for working parents, which damages their potential to recruit a lot of future employees.
There are much better ways to find out how comfortable a person is with regular travel such as: “Are you willing to travel X% of the time?” or “Do you have any obligations or commitments that may interfere with the need to travel for business?” — Amy Stuntz, Search Consultant
Ask About Age. Period.
I had a candidate who was asked during their final interview with the agency’s president: “So, how much runway you got left?”
Mentioning That You Know Their Boss
I had a hiring manager say: “I’m really good friends with your boss.” This freaked the candidate out, who feared their employer would catch wind of their interview. In my experience, this fear is well-founded. I’ve seen countless situations when insurance professionals were fired when their boss heard about their job search. Confidentiality is paramount to a job search. Only share what you know about a person’s current employer, not specific individuals, and only in instances where that familiarity gives you a clear recruitment advantage. — Mary Newgard, Partner
Newgard is partner and senior search consultant for Capstone Search Group, a national recruiting firm dedicated to the insurance industry. Email: asktherecruiter@ csgrecruiting.com.
Idea Exchange: Talent
The Smart Workforce Pivot: Insurance’s Backdoor to Talent Acquisition
The dilemma in today’s labor market is real.
million open positions.
ering a career in insurance.
By Sharon Emek, Ph.D.
In 2023, the U.S. labor market had 9.5 million unfilled jobs. Yet there were just 6.5 million unemployed workers, according to the U.S. Chamber of Commerce. If every unemployed person found a position tomorrow, there would still be over two
Finding talent today is a struggle at best. Finding talent within the insurance industry? As difficult as it comes.
It’s no secret that the industry has long struggled with attracting and retaining talent. As far back as 2015, millennials showed little interest in working for insurance and insurance-related organizations — The Hartford’s 2015 Millennial Leadership Survey revealed that just 4% of millennials were consid-
Fast forward to today and not much has changed. A Pew Research study shows that interest in the industry has held at 4% as recently as 2023. Ironically, millennials will make up 75% of the workforce by 2025.
While the industry struggles with attracting and retaining younger generations of workers, it is also grappling with some pretty hard facts. According to NAMIC data, 50% of today’s insurance
workforce is looking toward retirement by 2028. That could leave the industry with a dearth of workers and the inability to expand and grow business.
Facing this twofold issue is daunting. Attracting young talent to the industry is key. However, the more immediate need is to have enough talent available to get the job done. That will require some innovative thinking and a retooling of how business is conducted and who our next workers will be.
The Returning Retiree
Fortunately for the industry, not every retirement-aged insurance professional wants to quit working cold turkey. In fact, a CNBC All-America Workforce survey found that over two-thirds of U.S. workers (68%) who retired during the pandemic would consider returning to work and 94% who left the workforce but didn’t officially retire would do the same.
Even as workers retire, many of the same age demographic are rethinking what their retirement should look like. The Bureau of Labor Statistics finds that a surprising 27% of people aged 65 to 74 are actively seeking employment, many of them already retired, which makes the 65-plus crowd the fastest-growing segment of the workforce. Retired workers are reshaping retirement, which could be the salvation that the insurance industry desperately needs to fill so many open positions.
However, employers are having a tough time embracing them. Retired workers are often passed over as viable options for filling open positions, with organizations unwilling to engage a worker who isn’t interested in the traditional nine-to-five.
Organizations assume they are not as engaged and not as likely to be in the position in five years — assumptions that are inaccurate. Instead, organizations should be realizing how much potential a retired insurance professional can deliver.
That includes how we view the retired worker demographic. Many talented individuals who have retired are looking for new ways to utilize a wealth of career knowledge and skill that doesn’t require commutes or being in the office every day. They may also prefer a less stressful position at lower pay as they are no longer on a career path. Organizations should be willing to meet them where they are.
That starts with letting go of preconceived impressions of older workers. Too
many managers and organization leaders think that older workers:
• Are less productive than younger workers
• Are resistant to change
• Have difficulty learning new skills
• Don’t use technology or understand it
All of which are not true. Study data from the Center for Retirement Research at Boston College show that workers between the ages of 60 and 74 are more productive than younger workers. Older workers also are more open to change, according to the Centers for Disease Control (CDC), and have more experience with changes in the organization than do their younger coworkers.
Likewise, retired workers have amassed a career full of new skills learned. These are workers who were on the job as technology was adopted and refined. They were the first generation of workers to learn how to implement technology on the job. Older workers are not averse to learning new skills — in fact, they often welcome and embrace learning. In many ways, these veteran workers should be valued for the skills they bring and their proven ability to adapt to change.
Perhaps organizations should adopt the same attitude toward change. In order to be more resilient and agile, organizations need to approach workforce engagement and retention in a new way. Make no mistake — our industry has proven its ability to respond with flexibility. That same resilience and agility certainly came to the forefront amid the Covid-19 pandemic. Insurance organizations seemingly overnight learned how to pivot hard, revamping business to run on a remote work model. With customer satisfaction and service being top of mind, insurance adapted. Yet c an the industry adapt its way of thinking about the workforce?
Traditional methods for filling open positions need to change. Our industry continued on page 61
Idea Exchange: Is It Covered?
Logic & Language and Forms & Facts
The Problem(s) With Hail Claims – Part 3
My previous two columns (May and June 2024) addressed issues with hail and windstorm claims regarding the discovery and reporting of damage, actual cash value versus replacement cost valuation and 180-day reporting conditions, percentage deductibles, special cosmetic damage limitations, and “marring” exclusions.
By Bill Wilson
In this third and final “hail claims” installment, we’ll address matching issues,
Pair Or Set clauses, suits against insurers, and examine potential solutions to rising frequency and/or severity of claims as opposed to simply increasing premiums and/or reducing coverage.
Matching Issues
Perhaps few issues are so consistently perplexing to both the insurance industry and insurance consumers than property damage that results, if repaired, in a mismatch between the new construction and existing undamaged property. Most often, in the case of wind or hailstorms, these claims arise from damage to asphalt
shingles or vinyl siding.
Under most property policies, coverage is provided only for repair or replacement of damaged material, regardless of whether such repair or replacement results in a mismatch in appearance, something often cited as an economic loss, not a direct physical loss. To make it absolutely clear, a number of carriers have introduced “Unmatched Property Damage Exclusion” endorsements under various names.
In addition, some states have extracontractual statutes or case law governing the matching issue. Case law generally points to finding coverage to the benefit
of the insured if there is an ambiguity as to whether repaired or replaced property must match existing undamaged property. Where such case law governs, if the policy is not ambiguous, the ability of the insurer to deny coverage for diminished value might prevail.
In the states where this issue has been addressed by statute, there is usually a requirement that the insurer replace as much of the property as is necessary to result in a reasonably uniform appearance across contiguous or adjoining areas or within the same line of sight.
One such resource for this information is available from the law firm Matthiesen, Wickert & Lehrer, S.C. (www.mwl-law. com) in a document entitled “‘Matching Regulations’ and Laws Affecting
Homeowners’ Property Claims in All 50 States.”
Pair Or Set Clauses
In the state where I live, a matching statute became effective in the fall of 2017. Prior to that time, the matching issue was only indirectly addressed by tenuous case law based on whether insurance contract language was ambiguous. If it wasn’t, then the insurer was not obligated to repair or replace damaged property such that the finished work and undamaged property matched.
That being said, a number of carriers did repair property in a manner that did not result in a mismatch in appearance. As I’ve written on many occasions, insurance is not a commodity differentiated solely by price. A carrier’s claim practices are just as important as the actual contract language and almost always more important than price alone.
But, getting back to the point of this discussion, in 2013 our home was damaged by an EF0 tornado. Fortunately, we did not need a new roof but we did lose sixto-eight out of 26 shutters on the front of the house. We live in an older house with a number of custom features, including oddly sized windows and shutters. In other words, the missing and damaged shutters could not be replaced by shutters routinely found at local home improvement stores.
While, arguably, our homeowners policy did not cover uniform matching, I was able to get all 26 shutters replaced by invoking the policy’s “Pair Or Set” clause, which covered repair or replacement of any or all parts of a set. I argued that the shutters were a “set,” a term undefined in the policy and, at worst, ambiguous, and the adjuster agreed to replace all 26 shutters.
In addition, while most Pair Or Set clauses are based on an ACV recovery, our policy afforded coverage on a replacement cost basis, again illustrating that insurance is not a commodity. Coverage matters. Accommodating claims practices matter.
Suits Against Us
In my May column I raised the issue of when does an occurrence take place and what are the reporting requirements in
order for the policy to respond to the claim when made? Similarly, what if the claim is denied and the insured wants to sue the insurer? Here is an excerpt from the current ISO HO 00 03 form’s “Suit Against Us” policy condition:
“No action can be brought against us unless ... the action is started within two years after the date of loss.”
Some non-ISO policies are even more restrictive — one limiting the time frame to file a lawsuit to one year following loss and only if the loss has been reported within six months. Needless to say, these limitations give rise to many questions about various coverage trigger theories plus factual issues about when, why, and how damage occurred that led to, for example, a roof leak.
As discussed in my May column, one possible solution is to follow a change ISO made in their homeowners forms dealing with “repeated seepage and leakage” claims. For these claims, if the damage is not readily apparent until it becomes obvious, something akin to a manifestation theory is followed and coverage is provided as long as the discovery of the damage is reported promptly.
Other Solutions?
Aside from a few points I’ve made in this series of articles, such as the application of a manifestation theory of loss discovery, there are other possible solutions that could merit a separate series of articles. The obvious one is to approach these claims from a loss control standpoint by employing superior construction practices, either by building code enhancements or at least voluntary insurance coverage options. Roof systems that are far more resistant to wind and hail damage exist right now, if consumers are willing to pay for them through increased construction and insurance costs.
What do you think? Feel free to respond with a comment.
Wilson, CPCU, ARM, AIM, AAM is the founder and CEO of InsuranceCommentary.com and the author of six books, including “When Words Collide…Resolving Insurance Coverage and Claims Disputes.” He can be reached at Bill@InsuranceCommentary.com.
Welcome
to Insurance Journal’s 2024 Specialty Markets Directory, Summer Edition. This exclusive biannual market directory has been designed to assist independent agents and brokers in the task of placing difficult or unusual risks.
For ease-of-use, the directory utilizes a convenient “color-coded legend” to highlight the availability of markets by IJ’s five geographic regions — East, Midwest, Southeast, South Central and West. The corresponding states for each region are listed below.
Inside the directory and underneath each market listing, five distinct colors represent IJ’s five regions. Those colors (Dark Blue ■ East, Light Blue ■ Midwest, Green ■ Southeast, Orange ■ South Central, and Red ■ West) indicate whether or not the market is available in your area of the country. The “color-coded legend” has been placed at the top of every directory page for easy reference.
All market listings have been updated with the most current
Southeast Midwest East
information available provided directly by intermediaries and carriers. As always, the directory lists the markets categorically by broad coverage groups.
Italicized company names represent companies offering binding authority. To find complete contact information for all companies listed in this directory, see page 50.
IJ’s 2024 Specialty Markets Directory, Summer Edition can also be found on our Web site at: www.insurancejournal.com/directories. To submit a listing, visit the online directory, or e-mail Kristine Honey at: khoney@insurancejournal.com.
We hope you find this directory to be a valuable resource when trying to insure hard-to-place accounts. Feel free to send us comments and suggestions, or for additional help using this directory, e-mail: editorial@insurancejournal.com.
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Employers Liability
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Specialty, a Div of Philadelphia Ins. Co’s
Extended, Product Warranty & Service Contracts
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RPS
Fiduciary Liability
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Wilkoff Bonds
Food Borne Illness
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Contractors
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Erickson-Larsen Inc.
Legacy Employer Concepts LLC
Quaker Special Risk, a Jencap Company (Florida)
Quaker Special Risk, a Jencap Company (Mass.) ■
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Quaker Special Risk, a Jencap Company (New Jersey)
■ ■ ■ ■ ■ NeitClem Wholesale Insurance Brokerage Inc.
■ ■ ■ ■ ■ Quaker Special Risk, a Jencap Company (Florida)
■ ■ ■ ■ ■ Quaker Special Risk, a Jencap Company (Mass.)
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■ R.E. Chaix & Associates Insurance Brokers
■ REInsurePro ■
■ River Valley Underwriters Inc.
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Specialty Wholesale Ins. Solution (SWIS), a Div of SPG
Scaffolding Risks ■
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Swimming Pool Contractors
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Buses
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Cannabis,
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Cemeteries
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Coin Laundry
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We provide tailor-made solutions designed to meet the needs of each client. In addition to competitive pricing, we offer:
• A.M. Best rating of A- (Excellent)
• Multiple options for premium payments
• Pay-as-you-go payroll-plus-comp program
• Superior claims and medical management
• No volume requirements
Working with us is easy. We operate on an open brokerage basis and do everything in-house. We entertain hard-to-place risks with the following characteristics:
• Experience-rated business • Premium up to $500,000 • High mods accepted
5Star Specialty Programs
Alphabetical Directory of Intermediaries and Carriers
See Website for Addresses, Headquarters - Melbourne, FL 32935
Phone: (877) 247-9772, Fax: (321) 757-6147
E-mail: marketing@5starsp.com
www.5starsp.com
MGA, Lloyd’s Correspondent, Managing Underwriter
Access E&S Insurance Services
2001 N. Lincoln St., Arlington, VA 22207
Phone: (703) 248-2566, Fax: (703) 248-2565
E-mail: Tim@Access-ES.com
www.Access-ES.com
A Licensed Surplus Broker, Lloyd’s Correspondent
Access One80
1773 S. 8th St., Ste. 200, Colorado Springs, CO 80905
MGA, A Licensed Surplus Broker, Lloyd’s Correspondent, Managing Underwriter
Brecht & Associates is a managing general agency serving agents in Texas, Oklahoma, and Arkansas specializing in insuring risks with unique characteristics. Independently owned & operated, our goal is to assist retail agents by providing access to a full range of products to meet the needs of their clients.
Bristol West Insurance Group
PO Box 31029, Independence, OH 44131
Phone: (800) 237-6136
E-mail: foremostinsurancegroup@foremost.com
acm@foremost.com
BriteCo Jewelry & Watch Insurance
805 Greenwood, Evanston, IL 60201
Phone: (312) 809-9100
E-mail: conor.redmond@brite.co
brite.co
Managing General Agency
Brooks Insurance Agency
6320 Canoga Ave., 12th Fl, Woodland Hills, CA 91367
Phone: (818) 449-9062
E-mail: mmccluskey@brooks-ins.com
www.brooks-ins.com
Managing General Agency, A Licensed Surplus Broker
Brownyard Group
21 Maple Ave., Bay Shore, NY 11706
Phone: (800) 645-5820, Fax: (631) 666-5723
E-mail: info@brownyard.com
www.brownyard.com
Managing General Agency, Managing Underwriter
BUA LLC
22 Deer St., Ste. 400, Portsmouth, NH 03801
Phone: (603) 772-5005, Fax: (603) 372-5990
E-mail: msamperi@buainsurance.com
www.buainsurance.com
MGA, A Licensed Surplus Broker, Lloyd’s Correspondent, Managing Underwriter
Builders & Tradesmen’s Insurance Services Inc. (BTIS)
6610 Sierra College Blvd., Rocklin, CA 95677
Phone: (877) 649-6682, Fax: (916) 772-9292
E-mail: info@btisinc.com
www.btisinc.com
A Licensed Surplus Broker, Lloyd’s Correspondent, Managing Underwriter
Cannasure Insurance Services
1468 W. 9th St., Ste. 805, Cleveland, OH 44113
Phone: (800) 420-5757
E-mail: info@cannasure.com
www.cannasure.com
MGA, A Licensed Surplus Broker, Managing Underwriter
CannGuard
11500 N. Ambassador Dr., Ste. 310, Kansas City, MO 64153
Phone: (833) 770-4068
E-mail: info@cann-guard.com
cann-guard.com
Managing General Agency
Canon Insurance Service
8383 Wilshire Blvd., Ste. 341, Beverly Hills, CA 90211
Phone: (310) 859-8600, Fax: (310) 278-3617
www.CanonInsurance.com
MGA, A Licensed Surplus Broker, Lloyd’s Correspondent, Managing Underwriter
Care Providers Insurance Services
19111 N. Dallas Pkwy, Ste. 250, Dallas, TX 75287
Phone: (484) 531-8887
E-mail: nsmmarketing@nsminc.com cpsinsure.com
MGA, A Licensed Surplus Broker, Managing Underwriter
Charity First Insurance Services Inc.
595 Market St., Ste. 2100, San Francisco, CA 94105
Managing General Agency, A Licensed Surplus Broker
Flood Risk Solutions Inc.
360 Central Ave., Ste. 1260, St Petersburg, FL 33701
Phone: (727) 256-1991
E-mail: phil@floodsol.com
www.floodsol.com
MGA, A Licensed Surplus Broker, Lloyd’s Correspondent, Managing Underwriter
Flow Insurance Services
548 Market St PMB90420, San Francisco, CA 94104
Phone: (855) 368-5502
E-mail: info@flowinsurance.com
www.flowinsurance.com
MGA, A Licensed Surplus Broker, Lloyd’s Correspondent, Managing Underwriter
Foremost Insurance Group
For more information, check out our ad on page 5 (National). 5600 Beech Tree Ln. SE, Caledonia, MI 49316
Phone: (800) 237-6136
E-mail: acm@foremost.com
www.foremostagent.com
Foremost® – A Farmers Insurance® Company is focused on providing A Better Insurance Experience® to all customers. Foremost has been an industry leader since 1952, and today offers a well-rounded suite of personal lines insurance, including the Foremost Signature(SM) Auto & Home programs and the Foremost Choice® Property & Casualty programs.
Freberg Environmental Inc.
1800 Wazee St., Ste. 300, Denver, CO 80202
Phone: (800) 377-4152, Fax: (303) 623-8101
E-mail: info@feiinsurance.com
www.feiinsurance.com
Managing General Agency, Managing Underwriter
FTP Inc.
131 White Oak Lane, Old Bridge, NJ 08857
Phone: (732) 679-3700
E-mail: hdiamandis@ftpins.com www.ftpins.com
Managing General Agency, A Licensed Surplus Broker
MGA, A Licensed Surplus Broker, Managing Underwriter
Irwin Siegel Agency is a premier Managing General Underwriter of insurance products and risk management solutions for Human and Social Service Organizations. Our specialties include Intellectual and Developmental Disability Organizations, Addiction Treatment, Behavioral/ Mental Healthcare, and Youth Programs. We also offer high-value homeowners insurance programs.
J.E. Brown & Associates
303 Lennon Ln., Walnut Creek, CA 94598
Phone: (800) 955-8213, Fax: (925) 947-3978
E-mail: marketing@jebrown.net
www.jebrown.net
Managing General Agency, A Licensed Surplus Broker
James Klein Insurance
200 E. Sandpointe Ave., Ste. 510, Santa Ana, CA 92707
James River underwrites a wide variety of specialty P&C and Professional risks on an E&S basis in all states. 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
E-mail: ccaruso@jamisongroup.com
www.jamisongroup.com
MGA, A Licensed Surplus Broker, Lloyd’s Correspondent
JC Wilson Consulting Inc.
9390 W. Maiden Ct, Vero Beach, FL 32963
Phone: (312) 543-9451, Fax: (312) 543-9451
E-mail: jwilson.frs@gmail.com
Managing General Agency, Managing Underwriter
JM Wilson
For more info, check our ads on page 2 (West, Southeast & Midwest). 8036 Moorsbridge Rd., Portage, MI 49024
Phone: (800) 282-8113
E-mail: cbaldwin@jmwilson.com www.jmwilson.com
Managing General Agency, A Licensed Surplus Broker
J.M. Wilson is a third generation, family owned Managing General Agency and Surplus Lines Broker founded in 1920. We provide independent insurance agents access to ‘A’ rated carriers for Commercial Transportation, Property & Casualty, Brokerage, Marine, Personal Lines and Surety. We know insurance agents have choices and It’s our goal to establish relationships and provide the best possible experience for you to place business in the E&S marketplace.
Jencap - Locations Nationwide
See website for all locations, Corporate HQ - New York, NY
Phone: (800) 892-8892
E-mail: info@jencapgroup.com www.jencapgroup.com
MGA, A Licensed Surplus Broker, Lloyd’s Correspondent, Managing Underwriter
Independent agents countrywide rely on our specialty brokers and underwriters to place their most complex and important risks. With over 40 locations nationwide, put Jencap to work for you.
Explore the Potential of what Kinsale can do for your hard to insure accounts. Kinsale Insurance Company is a domestic excess and surplus lines insurance company specializing in casualty, professional, property, specialty, and transportation risks.
MGA, A Licensed Surplus Broker, Managing Underwriter
Number One Insurance Agency
91 Cedar St., Milford, MA 01757
Phone: (508) 634-2900, Fax: (508) 634-2930
E-mail: numberone@massagent.com www.massagent.com
Managing General Agency, A Licensed Surplus Broker
Omaha National
PO Box 451139, Omaha, NE 68145
Phone: (844) 761-8400, Fax: (844) 761-8402
E-mail: sales@omahanational.com
www.omahanational.com
Omaha National is a premier provider of workers compensation insurance. Accepting experience-rated risks up to $500,000 in premium. Offering coverage for a wide variety of businesses. Insurance Carrier (PPIC) is rated A- (Excellent) by A.M. Best Company. We offer three ways to pay premium.
Orion Commercial Insurance Services Inc.
PO Box 30634, Walnut Creek, CA 94598
Phone: (925) 627-6040, Fax: (925) 280-0333
E-mail: al@orionslb.com
Not Available
A Licensed Surplus Broker
Pacific Excess Insurance Marketing
6363 Katella Ave., Cypress, CA 90630
Phone: (800) 222-5582, Fax: (714) 228-7838
E-mail: marketing@pacificexcess.com
www.pacificexcess.com
Managing General Agency, A Licensed Surplus Broker
Pacific Gateway Insurance Agency
28470 Ave Stanford, Ste. 325, Valencia, CA 91355
Phone: (800) 354-4844, Fax: (661) 257-5988
E-mail: mark_thorne@pgiainsurance.com
www.pgiainsurance.com
Managing General Agency, Managing Underwriter
PartnerOne Environmental
PO Box 1532, Charlottesville, VA 22902
Phone: (800) 596-0172, Fax: (434) 979-8964
E-mail: p1info@p1enviro.com
p1enviro.com
MGA, A Licensed Surplus Broker, Managing Underwriter
PERse
23 Corporate Plaza, Ste. 248, Newport Beach, CA 92660
For more information, check out our ad on page 9 (National).
One Bala Plaza Ste. 100, Bala Cynwyd, PA 19004
Phone: (800) 873-4552, Fax: (610) 617-7940
E-mail: phlysales@phly.com www.phly.com
A Licensed Surplus Broker
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.
PLIS Inc. - Underwriting Facilities
5802 Thunderbird, Bldg 10, Ste. 100, Lago Vista, TX 78645
43725 Monterey Ave., Ste. A, Palm Desert, CA 92260
Phone: (760) 345-9029, Fax: (800) 345-4851
E-mail: info@shieldins.net www.shieldins.net
MGA, A Licensed Surplus Broker, Managing Underwriter
We have functioned as a program manager providing contractor insurance products to retail brokers and wholesalers since 2004. Rate, quote and bind online. Easily register as a producer today on our website for full program access. We specialize in General Liability, Excess Liability, Inland Marine and Workers’ Compensation.
Signature Specialty, LP
261 N. University Dr., Ste. 510, Plantation, FL 33324
Insurance Programs, Brokerage and Risk Management for the Security Officer, Electronic Security-Alarm, Investigation and Background Screening Industry.
At UFG Specialty, best in class service is what we do. We understand response time and decisiveness are key to our broker/partners’ success. Rated A (Excellent) by A.M. Best, we specialize in hard-to-place Excess Casualty, Excess Property, and Inland Marine business.
Unitas Financial Services
6543 Commerce Pkwy, Ste. M, Dublin, OH 43014
Phone: (954) 931-4795, Fax: (866) 847-5565
E-mail: john.watt@unitas360.com www.unitas360.com
MGA, A Licensed Surplus Broker, Lloyd’s Correspondent, Managing Underwriter
Universal Insurance Programs
1220 E. Osborn Rd., Phoenix, AZ 85014
Phone: (800) 844-2101, Fax: (866) 512-2272
E-mail: info@uiprograms.com www.uiprograms.com
MGA, A Licensed Surplus Broker, Managing Underwriter
USASIA Insurance Services
319 Union Ave., Pomona, CA 91768
Phone: (909) 618-0288, Fax: (909) 618-0289
E-mail: shirley@usasia-ins.com www.usasia-ins.com
MGA, A Licensed Surplus Broker, Lloyd’s Correspondent
USG Insurance Services Inc.
1000 Town Center Way, Ste. 300, Canonsburg, PA 15317
Phone: (800) 886-3897, Fax: (844) 874-4290
E-mail: getconnected@usgins.com www.usgins.com
MGA, A Licensed Surplus Broker, Lloyd’s Correspondent, Managing Underwriter
MGA, A Licensed Surplus Broker, Lloyd’s Correspondent
INSURANCE INDUSTRY CHARITABLE FOUNDATION
Helping communities and enriching lives, together.
IICF Month of Giving
October 2024
Be a Part of Something Greater
Insurance Industry Charitable Foundation (IICF) is a unique nonprofit that unites the collective strengths of the insurance industry to help communities and enrich lives through grants, volunteer service and leadership. IICF is celebrating our 30th anniversary of serving as the philanthropic foundation of the insurance industry, having contributed $48 million in community grants along with nearly 340,000 volunteer hours served by industry professionals across the US and UK. Join with us as #insurancegivesback!
Register as a team or individual volunteer for the IICF Month of Giving and sign up for projects near you at: volunteer.iicf.org
Since 1998, IICF has hosted the longest ongoing volunteer initiative in the industry and this year we are expanding to the Month of Giving. Join with colleagues in giving back as we celebrate insurance industry volunteerism throughout our 30th Anniversary year!
Midwest Division
Kelly Hartweg Phone: (773) 991-2149 khartweg@iicf.org
Northeast Division
Betsy Myatt Phone: (917) 544-0895 emyatt@iicf.org
Southeast Division
Sarah Conway Phone: (214) 228-2910 sconway@iicf.org
could use a refresher in implementing that same flexibility that helped us through the pandemic.
Solving the Talent Dilemma
Solving the talent shortage, therefore, should include a way to reconnect with retired workforce members. The benefits your organization can attain in doing so are real. A Wall Street Journal article revealed that certain companies are seeking out the talents of seniors, calling their age “an asset.”
Employers say that older workers bring:
• Dedic ation to the company
• Customer ser vice focus
• Dependability
• High productivity
• Strong work ethic
• Institutional knowledge
And studies prove that. An AARP/ Aon Hewitt report reveals that 65% of employees 55 years and older are engaged in the workplace.
Another benefit: By considering using retired workers in work-from-home arrangements, your organization can significantly expand the talent pool, removing geographic boundaries and
July 15, 2024
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.
giving you more potential for finding the right candidate for the position.
That older, experienced candidate can also become a mentor. Career insurance veterans have amassed a wealth of experience that they can pass along to a new generation of workers. They also can bring a vast network of contacts and knowledge with them to every job.
The best part about hiring retired workers to work from home for your organization: They can be up and running quickly. It takes just a few changes to your communication process, namely adding chat and video conferencing to the ways with which you engage your workers.
[N]ot every retirement-aged insurance professional wants to quit working cold turkey.
Espousing Better Hiring Decisions
As the labor shortage in insurance deepens, employers must learn to shed their misconceptions about age and the retired worker. Retired workers bring with them a wealth of experience, soft skills, and a wide network of contacts. The smart organization is one that finds
July 15, 2024
Insurance Company One Hartford Plaza Hartford, CT 06155
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.
a way to utilize those attributes.
Your remote workforce needs just a few changes to your current employee management processes — changes that can improve your overall company culture.
Adopt better hiring outreach to include remote and retired professionals. Instill more proactive communication. These small changes can help improve not just the experience for your remote and hybrid teams, but for the entire organization. A stronger organization improves retention and makes your organization the one that job seekers want to work for.
Emek, CIC, is founder and CEO of Wahve (wxww. wahve.com). Wahve is a talent solution provider to the insurance industry. Wahve’s Vintage Contract Experts Contract augments an insurance firm’s staff with pretired professionals on a long-term contract basis. Wahve’s Talent Acquisition Outsourcing offers a bias-free, end-to-end sourcing and qualifying platform to help insurance firms hire the best-fit talent.
Closing Quote
Fraud’s Foe: How MFA Shuts the Door on Cybercriminals
By Greg Wagner
As cyber threats become increasingly sophisticated, securing user identities is paramount. Multifactor authentication (MFA) is a formidable defense, requiring multiple verification methods to authenticate identity. This layered approach ensures that even if one credential, such as a password, is compromised, additional barriers thwart unauthorized access.
MFA Basics
The primary goal of MFA is to add additional layers of security, making it more challenging for unauthorized individuals to access a target system or data. Typically, MFA involves a combination of two or more of the following factors:
• Something You Know: A password or PIN.
• Something You Have: A physical device like a smart phone, smart card or security token.
• Something You Are: Biometric verification such as fingerprints, facial recognition or voice recognition.
How MFA Shuts the Door Cybercriminals heavily depend on compromised credentials to infiltrate systems and gain unauthorized access. However, even if a hacker obtains a password, MFA is a
formidable barrier, requiring additional authentication factors. This significantly diminishes the likelihood of a successful breach by 80%-90%, bolstering overall security posture and safeguarding sensitive information.
According to the 2024 Verizon report, it takes less than 60 seconds to fall for a phishing email scheme and only 28 seconds to enter valuable data. With MFA, however, knowing the password is not enough. The attacker also needs access to the second factor, such as the victim’s phone or biometric data, which is much harder to obtain.
Credential stuffing involves pairing a leaked username and password to access multiple accounts. MFA nullifies this threat by requiring a second verification, making just stolen credentials insufficient.
Man-in-the-middle (MitM) attacks intercept communication between the user and server. This eavesdropping-on-overdrive attack threatens 95% of HTTPS (hypertext transfer protocol secure) servers. MFA can help thwart these attacks by ensuring authentication requires something that cannot be intercepted or duplicated easily.
Implementing & Adopting MFA
Implementing MFA can vary depending on the needs of a business and the sensitivity of its information. Here are a few steps to consider for effective MFA implementation:
Assess risks and identify needs. Understand the specific risks your organization faces
and identify which systems and data require the highest levels of protection.
Choose appropriate MFA methods. Select MFA methods that balance security and user convenience. Biometrics, while highly secure, may not be feasible for all environments, whereas SMS-based codes, though easier to implement, may be less secure.
Educate and train users. Ensure all users understand the importance of MFA and how to use it correctly. Regular training and awareness programs can help mitigate user resistance and errors.
Monitor and adapt. Monitor the effectiveness of your MFA implementation continuously and be ready to adapt to new threats and technological advancements. Regularly update and patch MFA systems to address vulnerabilities.
Challenges & Considerations
While MFA is a powerful tool it is not without challenges.
Users may find MFA inconvenient or difficult to use, leading to pushback and potential non-compliance. User-friendly options like fingerprint or facial recognition and push notifications can enhance usability.
And a gradual introduction of MFA, starting with the most critical systems and working down, allows users to adapt to new security measures.
Setting up and maintaining MFA systems can be costly. Leveraging existing resources can minimize additional costs. Many cloud services and platforms also offer built-in MFA capabilities. Another way to keep costs under control is to choose scalable solutions to grow with the business.
Some older systems and applications may not support modern MFA methods, requiring additional investment in updates or replacements. Implementing incremental updates, incorporating third-party integrations for older systems, and developing custom solutions for specialized systems are strategies to overcome these challenges.
Armed with the arsenal of MFA, you can be ready to defend against the cybercrime onslaught, forging a path toward a safer, more secure digital future.
Wagner is senior vice president and senior broker at Flow Specialty, a next-gen AI specialty brokerage for commercial insurance.
