Insurance Business America issue 4.04

IBAMAG.COM ISSUE 4.04 | $9.95

US

SPECIALTY BROKERS 2016

Looking for a niche?

Get inspired by 149 agencies that have found success through specialization WORKPLACE VIOLENCE

Insurers respond to the disturbing trend of mass shootings

OFC & Spine-SUBBED.indd 2

PROFESSIONAL LIABILITY

Industry experts reveal emerging trends and the most vulnerable industries

CONSTRUCTIVE ADVICE

What producers can expect from the 2016 construction market

19/04/2016 10:30:21 PM

BURNS &

PROVIDE THE ANSWERS TODAY

WILCOX

SPEED IS OUR MIDDLE NAME. Our vast global market relationships speed up our quoting and binding process, quickly providing insureds the solutions they need. When it comes to the hard-to-place, think fast. Think Burns & Wilcox.

800.521.1918 burnsandwilcox.com Commercial | Professional | Personal | Brokerage Binding | Risk Management Services

IFC-01_Ads.indd 12 Name Ad RSZ - Ins Business America APPROVED.indd 1 38738 Burns Middle

19/04/2016 8:50:08 PMAM 11/3/15 10:54

www.NBIS.com

NaaonsBuilders Insurance Services Provides Comprehensive Insurance for Crane and Rigging, Specialized Transportaaon and Concrete Pumping Industries.

General Liability Property/Inland Marine Commercial Auto Excess / Umbrella

Truckers' Liability Physical Damage Custom Cargo/Transit Workers’ Compensaaon

NBIS is a Naaonal Managing Program Underwriter, Loss Control Provider, Claim Adjussng Administrator and Reinsurer Specializing in Construccon & Transport Insurance Programs Exclusively Through Agents/Brokers.

10:54 AM

IFC-01_Ads.indd 13

19/04/2016 8:50:20 PM

ISSUE 4.04

CONNECT WITH US Got a story or suggestion, or just want to find out some more information? twitter.com/InsuranceBizUS

CONTENTS

plus.google.com/+Ibamag facebook.com/InsuranceBusiness America

UPFRONT 03 Editorial

Thriving through specialization

US

SPECIALTY BROKERS 2016

COVER STORY

24

06 Statistics

FEATURES

RISKY BUSINESS Why risk managers in the healthcare industry are adopting a new approach

PEOPLE

INDUSTRY ICON

10 News analysis

Insurers look for solutions to workplace violence

12 Intelligence

This month’s big movers and shakers

16 Technology update

A new cybersecurity law gets pushback

FEATURES

56

PROTECTING THE PROFESSIONALS What’s new in professional liability?

IBA takes a closer look at the issues your clients need to be aware of

18 Opinion

The Internet of Things offers new opportunities for insurers

FEATURES 66 The reinvention of teamwork How to create a 21st-century team

68 Mono-tasking is the new black Still multitasking? Here’s why you should stop

PEOPLE 60 Broker insight

FEATURES

62

THE BUSINESS OF BUILDING

Analysts predict a robust construction market for 2016 – what does it mean for producers?

2

Speaking out on Obamacare

The on-demand workforce creates a gap in comp coverage

Ironshore CEO Kevin Kelley explains why hiring the right people makes all the difference

20

08 Head to head

14 Workers’ comp update

SPECIALTY BROKERS 2016

These 149 brokerages have found their niche in placing coverage for industries from aviation to yoga

54

The soft P&C market shows no signs of abating

Will Sacca on the benefits of working in a small town

71 Career path

Charting Russell Findlay’s course from Pepsi to insurance

72 Other life

Country living with Kristen Martin

IBAMAG.COM CHECK IT OUT ONLINE

www.ibamag.com

02-03_TOC & Editorial-SUBBED 2.indd 2

19/04/2016 10:28:17 PM

UPFRONT

EDITORIAL

www.ibamag.com MAY 2016 EDITORIAL Senior Journalist Caitlin Bronson Journalists Ryan Smith Tim Garratt Paul Lucas Henry Preen Donald Horne Editorial Researcher Heather Turner Copy Editor Clare Alexander

CONTRIBUTORS Kevin Meagher Graham Winter Jenny Brockis

ART & PRODUCTION

SALES & MARKETING Vice President Cathy Masek Media Sales Managers Chris Wills Chris Anderson Justin Faull Marketing and Communications Manager Lisa Narroway

CORPORATE Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil

Design Manager Daniel Williams Designer Joenel Salvador Production Manager Alicia Salvati Traffic Manager Kay Valdez

EDITORIAL INQUIRIES caitlin.bronson@keymedia.com

SUBSCRIPTION INQUIRIES subscriptions@keymedia.com

ADVERTISING INQUIRIES

cathy.masek@keymedia.com chris.wills@keymedia.com chris.anderson@keymedia.com justin.faull@keymedia.com

Key Media 78O7 E. Peakview Ave., Suite 115 Centennial, CO 80111, USA tel: +1 720 316 0151 www.keymedia.com Offices in Denver, London, Toronto, Sydney, Auckland, Manila

Insurance Business America is part of an international family of B2B publications and websites for the insurance industry INSURANCE BUSINESS CANADA john.mackenzie@kmimedia.ca T +1 416 644 874O

INSURANCE BUSINESS AUSTRALIA peter.smith@keymedia.com.au T +61 2 8437 47OO

Growing strong in soft ground

T

here is no doubt that the soft market is already impacting the independent insurance agency sector.

A Reagan Consulting survey released late last year heralded the arrival of softening forces as median organic growth and profitability among agencies fell in 2015. Profit margins also declined to 20.1% after reaching record highs in 2014, and the pace of growth for all three major lines of business – commercial property & casualty, personal property & casualty and employee benefits – slowed as well.

Nevertheless, the numbers are solid from a historical perspective. And for some brokerages, the softening market hasn’t done much to slow them down.

By tapping into niches as diverse as yachts and psychoanalysts, youth recreation and horse breeding, many insurance brokerages have bucked the trend and grown their platforms, expanding their reach and bringing in more premium – and more success – than ever.

These brokerages are helping shape a new definition of ‘community,’ one that is compatible with the online experience of connecting based on interest and industry They’re also helping shape a new definition of ‘community,’ one that isn’t limited by geographic boundaries, but rather is compatible with the online experience of connecting based on interest and industry.

In recognition of these game-changing firms, Insurance Business America has compiled a list of the country’s most impressive specialist agencies. These industry-leading companies are finding success even in difficult economic circumstances, providing insights on how to get the best results from your team and community no matter what the conditions.

In perusing the profiles of these 149 agencies, we hope you’ll pick up on some common threads you can take home to your own business, even as the forces of commoditization and online-only insurers strengthen. After all, the soft market is expected to continue through the year.

The team at Insurance Business America

INSURANCE BUSINESS NZ peter.smith@keymedia.com.au T +61 2 8437 47OO

INSURANCE BUSINESS UK

jonathan.connelly@keymedia.com T +44 207 193 6946 Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss.

02-03_TOC & Editorial-SUBBED.indd 3

www.ibamag.com

3

19/04/2016 9:23:03 PM

04-05_EZ lynx.indd 12

19/04/2016 8:34:28 PM

04-05_EZ lynx.indd 13

19/04/2016 8:34:35 PM

UPFRONT

STATISTICS

A RECENT report from Marsh reveals that the US commercial property & casualty insurance market is in the midst of a two-year softening trend. Property rates are decreasing due to a number of factors, including lower catastrophe losses, high competition among insurers and alternative sources of capital that are expected to continue to buoy the market.

Property policies are also being affected by an increasing wave of cyber issues.

3%

$3 billion

Decrease in US property catastrophe reinsurance in 2015

Amount of global significant insured catastrophe losses in 2015

On the casualty side, auto liability remains challenging – nearly half of all auto insurance clients saw rate increases in the fourth quarter of 2015, according to Marsh, and the trucking sector is facing an especially difficult market. On the bright side, the workers’ compensation market is presenting generally favorable conditions, although the escalating costs of prescription drugs continue to be a concern.

5%–10%

Expected decrease in property rates for non-CAT-exposed organizations in 2016

Despite the soft market, the P&C sector in the US looks strong going into 2016. A comparison of key financials from the first three quarters of 2015 with the same period in 2014 reveals gains across almost every metric. Marsh expects insurers to continue to protect their bottom lines in 2016 by employing tactics such as pricing adequacy, underwriting discipline and capital planning.

NET PREMIUMS WRITTEN CHANGE

3.1

$68 billion

Amount of alternative capital available for property reinsurance at the beginning of 2016

$392.7 billion

Commercial property & casualty insurance markets softened in 2015, and the trend is expected to continue this year

THE YEAR IN P&C

$380.8 billion

The softer side

2014

2015

Source: Impact Forecasting Annual Global Catastrophe Report 2015

PROPERTY RATES DOWN During all four quarters of 2015, most clients with ‘all risk’ coverage saw a benefit from the soft market in the form of declining rates.

TRIPRA BRINGS CERTAINTY TO PRICING Last year saw the passage of the Terrorism Risk Insurance Program Reauthorization Act, extending the federal terrorism insurance backstop for another six years and staving off price increases for the industries that depend on property terrorism risk coverage the most.

TERRORISM INSURANCE TAKE-UP RATES BY INDUSTRY Education

70% 60%

73%

40%

Hospitality and gaming

75%

30%

Media

20%

Power and utilities

10%

79% 70%

Real estate

0% Q1 2015

Q2 2015

Increase

Q3 2015 Q4 2015

No change

Decrease

Source: United States Insurance Market Report 2016, Marsh

6

70%

Healthcare

50%

rt 2016, Marsh

75%

Financial institutions

73%

Tech/ telecom

65%

0%

20%

40%

60%

80%

100%

Source: United States Insurance Market Report 2016, Marsh

www.ibamag.com

06-07_Stats-SUBBED 2.indd 6

19/04/2016 9:23:31 PM

NET UNDERWRITING GAIN (LOSS)

NET INVESTMENT INCOME

NET AFTER-TAX INCOME

POLICYHOLDERS’ SURPLUS

CHANGE

CHANGE

CHANGE

CHANGE

$34.8 billion

$37.6 billion

$43.1 billion

$678.6 billion

$669.7 billion

1.3%

$34.2 billion

14.8%

$5.7 billion

1.8%

$3.5 billion

64.4%

2014

2015

2014

2015

2014

2015

2014

2015 Source: United States Insurance Market Report 2016, Marsh

ALTERNATIVE CAPITAL ON THE RISE As rated carriers have slowly decreased the amount of capital they’re committing to reinsurance, the amount of alternative capital from convergence sources has steadily increased to fill the void.

SOURCES OF GLOBAL PROPERTY CATASTROPHE REINSURANCE $332 billion Traditional reinsurers $32 billion Collateralized reinsurance

WORKERS’ COMPENSATION KEEPS IMPROVING Favorable conditions continue for clients with workers’ compensation coverage – not only are rate decreases and reductions more prevalent than in recent years, but the industry’s combined ratio has been on a downward trend since 2011, according to the National Council on Compensation Insurance.

WORKERS’ COMPENSATION COMBINED RATIO 115 110

$23 billion Catastrophe bonds

101

$9 billion Sidecars $4 billion Industry loss warranties

101

115 109 102

98

98

93

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* * Estimate

Source: United States Insurance Market Report 2016, Marsh

Source: United States Insurance Market Report 2016, Marsh

www.ibamag.com

06-07_Stats-SUBBED 2.indd 7

7

19/04/2016 9:23:24 PM

UPFRONT

HEAD TO HEAD

Has Obamacare improved health insurance?

Republicans have taken aim at struggling co-ops established under the Affordable Care Act – but are they the real problem?

Neal Biron

David S. Cluley

Mark Brown

Account executive and compliance officer United Business Insurance Agency

Vice chair, Media Relations Committee National Association of Health Underwriters

Financial planner Mark Brown & Associates

“No – Obamacare actually discourages competition, in spite of all the rhetoric, due to the risk adjustment requirement.

Also, plan benefits have been decimated by higher deductibles and higher outof-pocket costs. By not addressing the escalating cost of healthcare, we will pay higher premiums for less and less coverage.

The combination of higher premiums and higher out-of-pocket costs keeps insurance unaffordable for way too many people, thus perpetuating the need for greater and greater subsidies to keep people insured, an ever-increasing tax burden. It’s about time we stopped making the consumer the primary bearer of the burdensome costs of supporting the healthcare industry.”

“Obamacare has improved access to health insurance for millions of previously uninsured people. Conversely, it made health insurance more difficult for people to afford with its additional mandates, high deductibles and increased taxation to subsidize ‘free’ services and make plans affordable for low-income families.

The real problem is the cost of healthcare, which the Obamacare plan originally set out to reduce. However, midstream, that changed to health insurance reform after realizing that bigger government does not make healthcare cheaper. Instead of treating the disease (the cost of healthcare), only the obvious symptom (the cost of health insurance) was addressed.”

“The answer depends on who you are. If you are poor, then you will have received free or subsidized healthcare. But the ‘healthcare’ has not improved. I would say a certain percentage of recipients aren’t even concerned about healthcare. They don’t know how it works.

Let’s talk about everyone in the country renewing or applying for coverage in December for January of the new year.

That’s a disaster. Blue Cross/Blue Shield of Illinois received applications in late November for a January effective date, and we didn’t receive those approvals until mid- to late February. In the meantime, [clients] are left wondering if they have coverage or not. Has Obamacare improved health insurance? I would say no.”

CO-OPS THE SPOTLIGHT In February, Congressional Republicans grilled representatives from the Centers for Medicare and Medicaid Services over the financial health of the remaining health cooperatives established under the Affordable Care Act, eight of which have been subject to enhanced oversight or placed on a correction plan due to uncertain financial stability. Republicans say the troubled co-ops raise questions about the long-term viability of the healthcare law and this tenet in particular. Representatives from CMS, insurance co-ops and insurance commissioners from affected states stressed that they planned to recoup the $1.2 billion in start-up and solvency loans from the federal government.

8

Insura to pol Comp million all ins

www.ibamag.com

08-09_Head to head-SUBBED.indd 8

19/04/2016 8:35:34 PM

OVER ARCHING

SOLUTIONS

SUPPORT

STA BILITY

KNOW LEDGE

AGILITY

RESPONSIV ENESS

PR OTE CTION

ACCIDENT & HEALTH ALTERNATIVE MARKETS E&S CASUALTY CONSTRUCTION CONTRACT BINDING OPERATIONS DESIGN & ENVIRONMENTAL EXECUTIVE ASSURANCE EXCESS WORKERS’ COMPENSATION HEALTHCARE LENDER PRODUCTS NATIONAL ACCOUNTS CASUALTY PROFESSIONAL LIABILITY PROGRAMS PROPERTY SURETY TRAVEL

THE STRENGTH OF ARCH www.archinsurance.com

®

A.M. Best: “A+” Standard & Poor’s: “A+”

Insurance coverage is underwritten by one or more member companies of Arch Insurance Group in North America, which consists of (1) Arch Insurance Company (a Missouri corporation, NAIC # 11150) with admitted assets of $3.56 billion, total liabilities of $2.73 billion and surplus to policyholders of $825.14 million, (2) Arch Specialty Insurance Company (a Nebraska corporation, NAIC #21199) with admitted assets of $497.16 million, total liabilities of $190.04 million and surplus to policyholders of $307.13 million, (3) Arch Excess & Surplus Insurance Company (a Nebraska corporation, NAIC # 10946) with admitted assets of $61.96 million, total liabilities of $279,154 and surplus to policyholders of $61.68 million and (4) Arch Indemnity Insurance Company (a Nebraska corporation, NAIC# 30830) with admitted assets of $53.66 million, total liabilities of $29.27 million and surplus to policyholders of $24.39 million. All figures are as shown in each entity’s respective Quarterly Statement for the quarter ended September 30, 2015. Executive offices are located at One Liberty Plaza, New York, NY 10006. Not all insurance coverages or products are available in all jurisdictions. Coverage is subject to actual policy language. This information is intended for use by licensed insurance producers. © Arch Insurance Group 2016

08-09_Head to head-SUBBED.indd 9

19/04/2016 8:35:37 PM

UPFRONT

NEWS ANALYSIS

Addressing workplace violence A number of insurers have attempted to find solutions to the country’s rising level in workplace violence, from mandatory gun liability insurance to optional active shooter coverage SAN BERNARDINO. Colorado Springs.

Roseburg, Oregon. The number of US cities added to the long list of sites of workplace violence has increased in just a few short months. Now, more than 700 people die every year and an average of 13 people are injured every day as a result of violent attacks in the workplace.

The financial toll is significant as well.

Between missed workdays, property damage and lost wages, such violent incidents cost the US economy an estimated $36 billion a year.

And both government officials and insurance companies have taken notice.

In at least seven state legislatures, gun rights and regulation have collided in the issue of firearm liability insurance – a proposal

coverage.

While the question of gun liability insurance shutting down a spree shooter is widely dismissed, some have hoped it may deter gun violence in general.

Professor Peter Kochenburger of the Insurance Law Center at the University of Connecticut Law School has said that while a gun liability insurance proposal is “so fraught with obstacles that it seems to be unworkable,” nevertheless “the stakes are too high to rule it out.”

“Proponents argue that when engaged, the insurance industry will have the financial incentive to research and improve firearm safety; to utilize risk-based pricing in assessing, accepting (or rejecting) and pricing risk for

“Proponents argue that the insurance industry will have the financial incentive to research and improve firearm safety” Peter Kochenburger, Insurance Law Center, University of Connecticut Law School that would require gun owners to purchase liability insurance. In four of these jurisdictions (Hawaii, New Hampshire, New York and Los Angeles County), violators could face fines of up to $10,000 for going without proper

10

individual gun owners; to create privatemarket incentives for safe storage and use; and to compensate gun violence victims,” Kochenburger says. As a comparison, he points to the role insurers played in promoting

the safer design of cars, homes and other insurable products.

However, he also highlights two major problems with the proposal. First, there’s the nature of gun violence – just 1.5% of firearm deaths are classified as accidental. Second, not all shooters will have insurance – especially those who are most likely to injure others.

For these and other reasons, individual firearm liability insurance is widely considered to be a non-starter. What may be more promising is the increase in offerings of workplace violence coverage from insurance companies.

To industry professionals, workplace violence represents a growing economic cost that can be addressed with the right coverage.

Willis Group, for example, began selling active shooter insurance during the waning months of 2015. It was originally marketed to universities, but widespread interest and the proliferation of attacks at hotels and hospitals have prompted Willis to expand the product,

www.ibamag.com

10-11_News Analysis-SUBBED.indd 10

19/04/2016 9:20:48 PM

SOBERING STATISTICS ON WORKPLACE VIOLENCE

700 people are murdered on the job every year

Workplace violence costs businesses $36 billion per year

More than half of workplace homicides occur in sales (28%), protective services (17%), and transportation and material moving (13%)

80% of violence ending in homicide involves a firearm

which covers the liability companies have if they are found not to have taken needed precautions to prevent gun rampages. It also covers ‘on the scene’ costs of an attack, and kicks in when victims require counseling or consulting as a result of the incident.

The policy insures businesses for up to $5

value in relevant risk management.

“While recognizing that perfect security is not achievable, we also provide risk management guidance to help organizations protect people from this risk,” said a company spokeswoman with Beazley, an affiliate of Lloyd’s of London currently underwriting workplace

“There’s been widespread interest in active shooter insurance” Wendy Peters, Willis million, Willis says.

The virtue of an active shooter product is that it offers additional coverage outside of workers’ compensation policies, which traditionally cover the medical costs of employees who are injured as the result of a shooting. And while covering all outcomes is not possible, insurers in this space say there is a great deal of

violence coverage.

The company confirmed that it is offering coverage to address potential gaps in liability insurance protection that organizations may face in the event of a violent incident, but was unable to provide data on uptake rates and whether they had increased in recent months.

The market for the product is still quite small;

Source: FBI, Department of Labor, Department of Justice

Beazley is reportedly the only insurance firm currently underwriting the coverage.

Insurers have not reacted measurably to the recent rash of mass shootings – workers’ comp rates have not increased as a result, as shootings are still a statistically small portion of the causes of workplace injuries. According to the Department of Labor, more than 4,600 people were killed in the workplace in 2014, largely due to accidents. The AFL-CIO estimates that just about 773 workplace deaths were the result of violence, out of 3.8 million reported injuries that year.

Yet the time may be ripe for a new coverage.

Awareness of the threat is rising, and risk managers are eager to learn more about prevention and mitigation strategies.

“There’s been widespread interest in the product,” says Willis executive vice president Wendy Peters of the company’s active shooter coverage.

www.ibamag.com

10-11_News Analysis-SUBBED.indd 11

11

19/04/2016 9:20:30 PM

UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

Alliant Insurance Services

Andre-Romberg Insurance Agency

All Andre-Romberg employees will continue to provide services from their current Spokane location

Centene

HealthNet

Centene has been given approval by California regulators for the $6.3 billion takeover

HUB International

Benefits Mart

Benefits Mart founder and president Jean Russell will join HUB New England

Ironshore International

Savannah Insurance Agency

The Savannah team of underwriters will join Ironshore offices, effective immediately

Ironshore International

Lexon Surety Group

Ironshore will acquire the remaining 80% equity in Lexon after becoming a 20% owner in 2014

K2 Insurance Services

High Point Underwriters

High Point CEO David King will stay on with K2 to administer a combined workers’ compensation program

Marsh & McLennan Agency

Corporate Consulting Services

CCS president and CEO Grant Dougherty will continue to lead the team from its New York office under the Marsh name

Victor O. Schinnerer offers new dealer open lot program

Mergers likely to continue despite poor financial performance of recent transactions

Poor performance in the last batch of mergers and acquisitions among insurance carriers has done little to dampen the appetite for further transactions, according to ratings firm Standard & Poor’s.

“We believe the deal flow for M&A in the insurance industry will continue in 2016, albeit more slowly,” Standard & Poor’s analysts said in a recent report. “While a successful M&A can benefit the surviving entity, the general consensus is that its track record is not great.”

Among last year’s biggest deals were ACE’s agreement to purchase Chubb for more than $28 billion, and Exor SpA’s announcement that it would acquire reinsurer PartnerRe for more than $6 billion. Insurers have struggled in recent years to create value amid the glut of transactions, S&P said.

“Over two-thirds of M&A deals since 2000 failed to improve financial strength enough to lead us to upgrade the buyer,” the analysts said. “We take a conservative view on M&A for rated insurers, and we place a heavy emphasis on the risks.”

12

Underwriting manager Victor O. Schinnerer & Co. has announced the development of a new dealer open lot insurance program. The offering, on non-admitted paper through a panel of Lloyd’s syndicates, is available to automotive dealership clients and provides coverage for owned auto inventory held for sale.

Coverage highlights include earthquake, aggregate wind/hail deductibles and flood options. Availability is open in all states except Alaska, Colorado, Hawaii, Iowa, western Kansas, Louisiana, Minnesota, Nebraska, Oklahoma, North Dakota and South Dakota.

Venture Insurance Programs expands golf and country club offering to 14 states

National program administrator Venture Insurance Programs has expanded its Preferred Club program to 14 new states. The specialty insurance program serves golf clubs, golf management companies, private clubs and other related businesses across the country. The company announced its expansion through Allied World Assurance Company, one of three carriers supporting the program. It is now available in Alabama, Georgia, Idaho, Kansas, Michigan, Mississippi, Nebraska, North Dakota, Pennsylvania, Rhode Island, Tennessee, Texas, Utah and Wisconsin.

www.ibamag.com

12-13_Intelligence-SUBBED.indd 12

19/04/2016 8:36:24 PM

PEOPLE Beazley offers cyber to large global companies

Lloyd’s syndicate Beazley has partnered with the corporate insurance unit of Munich Re to offer broad cyber protection for the world’s largest companies. The policies will be tailored specifically to the exposures of individual clients, and will include up to $100 million of protection for a wide range of risks. Policies can be tailored to include coverage for hacking or malware attacks, DDoS attacks, cyber extortion and property damage, or bodily injury exposures from malicious cyber attacks.

XL Catlin announces new cargo policy for marine businesses

XL Catlin’s Americas Marine business has announced an enhanced policy to offer comprehensive cargo insurance coverage on a domestic, foreign or worldwide basis. The form has been redesigned to outline policy information and remove complexity from policy language and terms. The policy also takes into consideration valuation options that allow the insured company to recover a loss at the selling price of the goods. Highlights of the new form include warehouse/ storage coverage extensions worldwide, updated trade sanctions and land conveyance coverage.

Chubb expands cyberbullying cover to US market

Chubb has expanded its cyberbullying coverage to home insurance policies in the US to aid victims of online threats and harassment. The coverage will provide $60,000 in compensation to clients and family members to help them recover costs incurred from harassment and intimidation committed through personal computers, telephones or mobile devices.

The coverage will pay for psychiatric services, rest and recuperation costs, lost wages, temporary relocation services, education expenses, professional public relations services, and cybersecurity consultants.

NAME

LEAVING

JOINING

NEW POSITION

Larry Corsi

Patriot Underwriters

Nationwide

Vice president of workers’ compensation

James Hill

Willis Limited

Ironshore International

Underwriting manager of terrorism, political violence and war, Asia Pacific region

Graham Hooper

TT Club

Chaucer Insurance Group

Head of development, new freight forwarder and logistics

Mark Howard

USAA

Nationwide

Chief legal officer

Mark S. James

N/A

Chubb

Senior vice president, commercial marine insurance

Regina Johnson

Palo Alto Foundation Medical Group

Integro

Senior vice president, healthcare

Craig Landi

Freedom Specialty Insurance Co.

Argo Group International Holdings

President, Argo Pro US

Andy Lewis

Durham and Bates

Alliant Insurance Services

Vice president of energy and marine

Daniel Murphy

Liberty International Underwriters

Aspen Insurance Holdings

Senior vice president, energy and construction

Brian Sandy

N/A

IMA

President of Signature Select

Robert Schuhriemen

Marsh

Alliant Insurance Services

Senior vice president, Alliant Healthcare Solutions

Vivke Syal

Prudential Regulatory Authority

ProSight Specialty Insurance

Chief risk officer

Melinda Thompson

N/A

The Hartford

Vice president and head of sales and distribution

David Valzania

AIG

Berkshire Hathaway Specialty Insurance

Customer and broker engagement leader, Eastern US

Roxanne Westfall

N/A

Golden Bear Insurance Co.

Head of professional liability division

Chubb division chairman to retire

Chubb has announced the retirement of professional lines division chairman Robert Cox. Cox, who will end his 35-year career on July 1, will be replaced by North America professional lines division president Scott Meyer. Cox joined Chubb as an underwriter in 1981 and was named department manager three years later. He then held various management posts, including vice president/worldwide professional liability underwriting manager and chief underwriting officer.

Argo hires political risks underwriter

The Lloyd’s arm of Argo Group has expanded its credit and political risks team with the addition of an experienced underwriter from AIG Europe. Andrew Summers will become ArgoGlobal’s newest credit and political risks underwriter, reporting to Jeremy Shallow. In his previous position at AIG Europe, Summers served as political risk senior underwriter, where he was responsible for underwriting political risks for a broad range of insureds, including corporations, financial institutions and commodity traders.

www.ibamag.com

12-13_Intelligence-SUBBED.indd 13

13

19/04/2016 8:36:35 PM

UPFRONT

WORKERS’ COMP UPDATE

The problem with an on-demand workforce The growing on-demand economy is causing independent contractors to shoulder their own risk

While the on-demand workforce model is growing in size and strength, the economy still has yet to put together all of its puzzle pieces – particularly in determining who to hold accountable for employee safety.

Joseph Wells, workers’ compensation division head for Everest Insurance, recently raised questions on how the on-demand workforce is changing the dynamics of employment and workers’ compensation.

The on-demand workforce model is similar to using staffing agencies to secure contingent

NEWS BRIEFS

labor, except that it insists on calling employees ‘independent contractors.’ By using this employment status, businesses “do not have to comply with government regulations that require them to provide healthcare, paid leave benefits and workers’ compensation insurance,” Wells says.

While this gives those businesses less overhead to worry about, it also creates problems related to employee safety and injury prevention. Thus, the on-demand model is leaving so-called independent contractors to fend for

‘Confrontational’ workers’ comp system outmoded

Mark Walls, vice president of communications and strategic analysis at Safety National, says the workers’ comp system is unnecessarily confrontational and should become more worker-friendly.

“Workers’ comp has a very unfortunate claims model,” Walls said. “It is very confrontational. Injured workers have to deal with claims examiners who investigate their claim, instead of dealing with an advocate who helps the worker make sure he or she is getting the benefits they deserve. We need to change the way we do business.”

14

themselves, Wells says.

“With the blurring of the employeremployee relationship, the responsibility for providing a safe workplace may no longer be a company’s responsibility,” he says. “The responsibility for providing a safe workplace is passed down to the freelance worker.”

Wells also argues that because businesses

“The responsibility for providing a safe workplace is passed down to the freelance worker” using the on-demand model are free to hire and retain independent contractors based on their production and service quality, employees are forced to take on even more risks to meet such expectations – all without any form of insurance or compensation from their employers.

Last year, numerous legal efforts attempted to reclassify contract workers as full-time employees. However, conservative estimates suggest that such a move could increase the cost of labor by 20% to 40%.

“Many of these companies [using ondemand contractors] operate on very thin margins – not all can absorb the hit of having to switch to an employee workforce,” says Redpoint Ventures partner Jamie Davison.

“There is a real regulatory risk here, which we have to weigh, that some of these companies could owe millions in back wages and taxes.”

US Labor Secretary slams opt-out workers’ comp plans

The Secretary of Labor has spoken out against what he calls the “disturbing trend” of allowing employers to opt out of state-regulated workers’ compensation. “What opt-out programs really are all about is enabling employers to reduce benefits,” Thomas Perez told National Public Radio. “[Opt-out programs] create really a pathway to poverty for people who get injured on the job.” Perez vowed that his agency will try to stop the trend, emphasizing that it leaves workers without medical care and wage replacement payments.

www.ibamag.com

14-15_Workers Comp-SUBBED.indd 14

19/04/2016 8:36:58 PM

Q&A

Dr. Joel Morton Founder, president and medical director SUMMIT PHARMACY

Years in the industry 21 Fast fact Morton served more than two decades in the US Air Force as a lieutenant colonel and flight surgeon

Combating harmful attitudes on comp claimants What are the most common negative attitudes about injured employees who file claims through workers’ compensation insurance?

Almost two in five Americans say workers’ comp claimants are lazy. I think it’s almost a knee-jerk reaction for people to assume someone has faked an injury because they don’t want to work – that they don’t want to be there and they’re just trying to get out of it. To me, there’s not a lot of thought there, because if you’re not at work, you’re not making money. Workers’ compensation doesn’t help you support your family.

What are the negative implications that could arise from such a belief?

I think one of the more concerning is that a person who is acutely injured becomes worried [that] people think they’re faking it, and then tries to press through and thus makes it a more significant injury than it was originally.

As far as the employer side, I’m not sure if they understand how that fear affects their injured workers.

Almost a third of people already believe it would be difficult to get their medical care as prescribed by a doctor, and it could be seen as even more of a hindrance if employers are asking, “Did you really injure yourself here?”

And of course, if the injuries are being made worse by this stereotype, there is a possibility this could eventually be reflected in the employer’s workers’ comp rates.

Ohio approves workers’ comp rate reduction

The Ohio Bureau of Workers’ Compensation recently approved a rate reduction of 8.6% for private employers.

The price cut is expected to save employers $113 million next year. Previous cuts during the past five years have saved companies $4.3 billion as rates dropped more than 28%, the Bureau said. “Since 2011, BWC has moved from being a barrier to success for Ohio’s businesses to becoming a partner in economic growth, making life simpler and cheaper for employers,” said administrator and chief executive Steve Buehrer.

What makes people believe it’s so difficult to get medical care through workers’ comp?

Across the board, I believe most patients dread that extra paperwork might be required with workers’ compensation. Lots of folks don’t understand the process of filing a claim and believe an increased level of documentation is onerous and difficult to understand.

Basically, you fear what you don’t know.

This also goes back to the stigma of people thinking you don’t really want to work and that you faked your injury. They kind of go together and intertwine with the overall feeling of “What’s going on?”

What can an insurance agent do to ensure that workers understand their rights and can successfully file a claim when needed?

I think it’s just focusing on the patient. If independent agents can convey the message that while perhaps it’s a little added administrative duty to explain the workers’ compensation process and help employees, it’s not as difficult as you believe, and it’s necessary for workers to get the care they need.

These things have to be accomplished, and if you can provide help each step of the way – show that it’s not as difficult as one might think – the system will work so much better.

We also need to combat the perception of an injured worker being a faker. Once we can do that, we can avoid some of these chronic problems.

California’s minimum wage may affect comp rates

Employers with a high volume of hourly workers should brace for an increase in workers’ compensation costs as California gradually raises its statewide minimum wage to $15 by 2022. Historical evidence indicates that higher wages often mean higher workers’ compensation premiums. “Any time you increase payroll, there’s a slight uptick or a slight modification in workers’ compensation, whether it’s benefits or premiums,” said Stephen Schneider of the American Insurance Association.

Dropping state workers’ comp lowers Texas rates

A study from a Stanford law professor revealed that companies in Texas that have replaced state-sponsored workers’ compensation for private plans saw their costs fall by as much as 44%.

Professor Alison Morantz’s study assessed injury and illness claims filed by employees of 15 major Texas-based companies, suggesting that certain features of private voluntary plans – including benefit caps and the exclusion of many diseases and injuries – have indirectly helped drive down company costs.

www.ibamag.com

14-15_Workers Comp-SUBBED.indd 15

15

19/04/2016 8:37:37 PM

UPFRONT

TECHNOLOGY UPDATE NEWS BRIEFS Patriot National announces loss consulting subsidiary

Insurance technology provider Patriot National has announced the launch of Patriot Risk Consultants, a subsidiary that will offer loss and safety consulting services across a broad range of industries with the goal of protecting clients’ physical assets and increasing the resilience of the business. Consulting services offered by PRC include health and safety services, which teach clients how to prevent workplace injuries and comply with OSHA regulations, as well as premise operations, product liability services, federal- and state-mandated services, and fleet transportation and warehouse safety service standards.

Growing use of technology in claims makes hiring difficult

The increasing reliance on data analytics and other technology has made hiring increasingly difficult for the industry’s claims departments. In a recent survey, 76% of respondents told Towers Watson that talent was more of an issue than technology’s impact on claim adjudication. However, claims officers cited metrics and analytics (72%) and expense management (66%) as their next most pressing business issues. Around 83% said they have plans to address these concerns by employing better metrics and analytics, and 63% said they will refocus efforts on effective supervision.

Agency management systems get new embedded rater

Insurance Technologies Corporation has announced the launch of an embedded rater for auto insurance within four agency management systems. The group

16

is extending its TurboRater’s Rating API to users of Agency Matrix, HawkSoft, Partner XE by SIS and TechCanary.

Users will be able to get rating services directly within their agency management system of choice, and will have access to the complete library of carriers offered through the ITC system. All client and quote data will be transferred between systems without further user action.

Despite tech advances, forecasting risk still difficult

Advances in technology have done nothing to make it easier for risk professionals to forecast and model emerging risk, according to a new report from Marsh & McLennan and RIMS. A survey of risk professionals shows the majority believe that forecasting risk – particularly emerging risk – will not get any easier in the next three years. In fact, nearly half of survey respondents (48%) say forecasting critical business risks will be more difficult by 2019. Another 26% said it will be the same. According to the findings, a majority of respondents (61%) say cyber attacks are likely the source of their organization’s greatest risk.

Liberty International adds cyber extortion endorsement

Liberty International Underwriters, the specialist underwriter of Liberty Mutual, has added a cyber extortion endorsement to its product recall and contamination insurance policy for food & beverage companies. The new endorsement offers coverage to food & beverage policyholders for cyber extortion money and consultant costs for acts against production and daily operations. It also gives policyholders pre-incident access to crisis management firm Red24 so they can develop a response plan for a cyber incident.

Cybersecurity model law gets shaky start A law that protects insurance companies’ sensitive customer information is getting some pushback Following two major and separate instances of cyber attacks on insurers, the industry is coming up with a solution to address cybersecurity concerns – but that solution has met some early opposition.

In February, Anthem suffered a cyber attack that affected as many as 8.8 million customers and 18.8 million non-customers, in which information such as names, dates of birth, member ID/social security numbers, addresses, phone numbers, email addresses and employment information were potentially exploited. A month later, Premera Blue Cross sustained a data breach of its own, during which the information of 11 million consumers was compromised.

The National Association of Insurance Commissioners [NAIC] was set to discuss the draft of its Insurance Data Security Model Law on April 4. The legislation is meant to serve as basis for any insurance regulation related to the protection of sensitive customer information.

The proposed law has 12 principles that help lay the groundwork for insurers looking to protect consumers’ data, including: • State regulators are responsible for ensuring that personally identifiable consumer information possessed by insurers, producers and other regulated entities is protected from cyber threats.

• All cybersecurity regulations governing insurers and producers need to be as “scalable, practical and consistent” as those employed by other industries.

• Cybersecurity risks need to be addressed

www.ibamag.com

16-17_Tech Update 2-SUBBED2.indd 16

19/04/2016 9:24:12 PM

as part of an insurance company’s enterprise risk management process.

• State regulators must provide appropriate regulatory oversight, which may involve risk-based financial examinations or market conduct examinations related to cybersecurity.

• Insurers should take the necessary steps to make sure third parties and service providers have measures in place to protect consumer information.

On paper, the law will prevent any cybersecurity headaches state regulators could

“This model law must provide insurers with a clear roadmap for compliance without imposing burdensome requirements” experience while ensuring that insurers and producers follow the requirements. However, the American Insurance Association argued that the bill’s vaguely worded provisions fail to actually unify standards across insurance companies and producers.

“While AIA appreciates the opportunity to work with the [NAIC Cybersecurity] Task Force on this model law, we remain concerned that a series of provisions present significant challenges for insurers,” said AIA associate counsel Angela Gleason. “One in particular is the potential for inconsistent and duplicative regulations within a state. This model law must provide insurers with a clear roadmap for compliance without imposing burdensome requirements that do not help consumers.”

While the AIA makes a strong case for the apparent lack of direction within NAIC’s guidelines, the need for the law is undeniable.

Q&A

Laird Rixford

Creating an open environment

President INSURANCE TECHNOLOGIES CORPORATION

Years in the industry 20 Fast fact Rixford started his first business at 11 years old – a garden removal service.

He even invoiced his grandmother for pulling out her marigolds

What does the current environment in insurance technology look like with regard to individual vendors and agent choice?

Many vendors are creating a ‘walled garden,’ or closed system, in the industry by choosing to make their own offerings work only within their own systems and workflow. That creates an environment where insurance agents aren’t free to integrate between multiple systems and use the tool that meets their needs at any particular time.

In reality, sometimes one AMS has better features in terms of marketing, while another might have a better comparative rater.

We see the industry as a place that needs to be open to everybody so agents have the freedom to choose the best system at any given time.

How would an open environment benefit the industry?

I really equate it to Facebook. It was a cool tool when it was launched, but when it was opened up to everyone, it became phenomenal. If you look at platforms like that, openness is really what drives user growth. When you see someone using it, then you want to use it yourself.

That drives user growth, generates more data and helps everyone improve productivity.

What kind of interest is there among insurance professionals in taking this approach?

There is a lot of talk about creating an open environment, even as other vendors build walled gardens around their platforms. It was discussed in an Agency Technology Council Meeting. A lot of people are interested in the agency of the future, and many agents on that panel are wanting to look at open and free access to data, whether in the rating, marketing or carrier platforms.

I think it’s something agencies are looking to have. We just have to make sure vendors also have that same philosophy.

What is ITC planning to do to further the open environment of the future?

We’ve opened up our rating platform, TurboRater, to four agency management systems and plan to extend that further. This allows an open architecture for agencies to access and manipulate data either directly or through a third party. Back in the early 2000s, there was a huge push in the industry for ‘real time’ capabilities when it came to rating, and this is an extension of that.

Our philosophy has always been to create a system where data can be freely shared between all systems, and we’re looking at moving forward to offering quoting on motorcycles and homeowner’s insurance in addition to auto.

This is an industry-first offering. No one else is allowing this, but it’s the best thing for the insurance industry as a whole.

www.ibamag.com

16-17_Tech Update 2-SUBBED2.indd 17

17

19/04/2016 9:24:21 PM

UPFRONT

OPINION

GOT AN OPINION THAT COUNTS? Email iba@keymedia.com

Time to get smart The Internet of Things is a potential game-changer for the industry, writes Kevin Meagher, and insurance companies need to be prepared THE INTERNET is such an integral part of our daily lives that we struggle to imagine life without it. To date, proliferation has largely been driven by content and speed, but we are now entering a new phase of growth where the everyday things around us will be connected to the web. This is the Internet of Things [IoT], and it will change the way we interact with our environment.

This new phase of the Internet’s growth has the potential to be a game-changer for insurance. However, in a recent survey by FC Business Intelligence, views on the IoT were mixed: 30% believe the next 12 months are critical to securing a competitive advantage, but 60% think IoT is a five-year program.

This is a little surprising. Connectivity is already common in commercial buildings and is now sweeping into homes, and it’s widely recognized as multi-trillion-dollar market.

Retailers like Lowe’s and Home Depot have entered the space, alongside service providers such as AT&T and Comcast; even utilities are starting to deploy smart home offerings for energy management. More significantly, Apple, Google and Microsoft have made big consumer bets. It may be an early market, but it has clearly arrived.

These new entrants recognize that the ability to refine and exploit data from devices to deploy services will be critical to their success or failure in a connected world.

Clearly, this data is going to be particularly important to insurers, who have traditionally based their pricing on understanding risk.

Logically, if a competitor has better data on which to base their judgments, they will have

18

a competitive edge. So why are few insurance companies competing in the IoT and smart home space?

There are a number of reasons, but much of it leads back to the findings of the survey and the fact that they do not see the threat or opportunity. The finance sector never thought of Apple or Samsung as potential competitors, but it happened. If Apple, Google and Microsoft become the natural conduit for IoT data, could they start to bundle insurance?

revenues. Instead of the traditional once-ayear haggle over the cost of cover, insurers (like other service providers) can use the IoT to bundle products and services that deliver more value and engage consumers on a daily basis. It’s a move from the traditional reactive role of underwriting risk to being proactive in helping to reduce it.

Other industries have successfully adopted these growth strategies. For example, major cable and telecom companies started to bundle smart home products on top of their broadband and entertainment services. These new products and services generated new revenue streams that leveraged their core competencies, increased loyalty and provided a springboard for new value-added services.

Research suggests that consumers view insurance companies as a logical source for products such as home automation systems bundled with new, low-cost protection for security, fire and flood. Moreover, the IoT is driving exciting new innovations, such as leak detectors and temperature sensors that can automatically shut off the water supply when a leak is detected. So why wouldn’t insurance

“Logically, if a competitor has better data on which to base their judgments, they will have a competitive edge” Could service providers who deploy solutions bundle insurance with their offerings?

Markets get disrupted all the time, but what defines companies is how they respond to threats and exploit opportunities.

Long-standing, traditional industries like insurance tend to be fixed in their ways and think they can use the established regulatory environment as a barrier for protection.

However, instead of hiding behind barriers, smart companies jump over them and embrace opportunity. Perhaps the insurance industry could use the IoT to reinvigorate an age-old model. The big question is how.

Clearly, focusing on securing data is a natural temptation, which will excite traditional actuarial teams. However, there is a bigger opportunity if they use data to reinvent how they engage with customers and generate

companies embrace the IoT? Insurance companies will be hesitant to step outside traditional industry boundaries and deploy their own IoT services. However, if that’s a stretch, they can forge new partnerships with the companies that are deploying smart home solutions. Whatever path is chosen, insurance companies should look beyond pure data models and use the IoT to reinvent the consumer relationship by offering new products and services that engage consumers and move from an annual transaction to a daily interaction.

Kevin Meagher is vice president of business development for ROC-Connect.

www.ibamag.com

18-19_Opinion-SUBBED.indd 18

19/04/2016 8:40:21 PM

Beyond Security®

“Seasoned Professionals”

Michele Tran Production Underwriter Ultra Risk Advisors Seasoned Tourist General Star Broker

“I love to travel the world. In fact, when it comes to touring, I’m a seasoned professional!

“My Med Mal partners at General Star are also seasoned professionals. Needless to say, their A++ rating and Berkshire Hathaway backing are impressive, but it’s their deep knowledge, longevity and specialization in health care risk management that are most important to me.

“Whether I’m navigating Budapest for the first time, or tackling an unusual risk with General Star, I’m confident of a positive outcome.

I rely on seasoned experience, including my team at General Star, to help me solve every challenge.”

To locate the General Star broker nearest you, visit our website at www.generalstar.com.

© 2016 General Star National Insurance Company is licensed in the District of Columbia, Puerto Rico and all states. General Star National Insurance Company has its principal place of business in Stamford, CT and operates under NAIC Number 0031-11967. Insurance is placed with General Star National Insurance Company by licensed producers. General Star Indemnity Company is an eligible surplus lines insurer in all states, the District of Columbia, Puerto Rico, and the Virgin Islands. It has the status as an unlicensed insurer in California and operates under NAIC Number 0031-37362. Insurance is placed with the General Star Indemnity Company by licensed producers and, for risk that qualify, by licensed surplus lines brokers.

Atlanta 404 239 6777

Chicago 312 267 8600

A.M. Best A++ XV

18-19_Opinion-SUBBED.indd 19

Los Angeles 213 630 1930

S&P AA+

New York 212 859 3950

Stamford 203 328 5700

A Berkshire Hathaway Company

19/04/2016 8:40:30 PM

PEOPLE

INDUSTRY ICON

TOP TALENT, TOP PERFORMANCE Ironshore CEO Kevin H. Kelley discusses his remarkable career in insurance and the difference that recruiting the right people can make

WHEN KEVIN KELLEY was a college student and deciding on a career, he knew he wanted a job that was heavily influenced by current events. And, according to Kelley, his career in insurance has delivered.

“Every day that I pick up a Wall Street Journal or a Financial Times, there’s some mention of a client, trend or event that directly impacts Ironshore,” he says. “The other big thing with me was I really did enjoy business economics and analyzing risk and actually assuming risk, and seeing what the outcome would lead to, and obviously doing it in a thoughtful way.

That also kind of led me to this business or potentially the banking business. Quite frankly, I’m very happy that I entered this business.”

Kelley believes that insurance has plenty to offer today’s young job-seekers, too.

“I think young people today are a lot more entrepreneurial than prior generations,” he says. “There are probably a ton of reasons for that, but you see a Steve Jobs, you see the founder of Facebook and others who have made a fortune principally through founding a company and figuring out a technology that allowed them to build that company and create a lot of wealth. If you truly are entrepreneurial – you truly want to build something – this is

20

a great environment to do that in, and guys like me and many of my peers are great examples of that.”

Creating a legacy Kelley spent 33 years at AIG subsidiary Lexington Insurance Company, including more than two decades as its CEO. He’s been credited with building Lexington into a leading excess & surplus lines insurer.

“I had a very unique opportunity within

“Like most opportunities, you can run with it and win, or you can fail. AIG provided me with a phenomenal platform to build Lexington, and we became not only the market leader in the surplus lines industry, but we dominated the market and probably built the best company of its type ever. You don’t get that opportunity often, but I’m very thankful for the fact that I did. AIG provided the environment, the capital and was very supportive in allowing us to hire

“If you truly are entrepreneurial – you truly want to build something – insurance is a great environment to do that in, and guys like me and many of my peers are great examples of that” AIG in that I was given the opportunity to build a company at a very early age,” he says. “I had joined the company, roughly, at 25. By 36, I was the CEO.” Kelley credits his early success to the opportunities presented to him and other young executives at AIG. “AIG was known for many things – one in particular was they gave younger executives a phenomenal opportunity,” he says.

talented people who allowed us to do that.”

After leaving Lexington in 2008, Kelley took on his current role as CEO of Bermuda-based commercial property & casualty insurer Ironshore. At that time, the company was only two years old, and its gross written premium totaled $385 million. Since then, under Kelley’s leadership, Ironshore has rapidly and impressively grown and continues to

www.ibamag.com

20-23_Industry Icon-SUBBED2.indd 20

19/04/2016 9:31:06 PM

PROFILE Name: Kevin H. Kelley Company: Ironshore Title: CEO Years in the industry: 41 Fast fact: Kelley also serves as the chair of the Board of Overseers for St. John’s University’s School of Risk Management in New York

www.ibamag.com

20-23_Industry Icon-SUBBED2.indd 21

21

19/04/2016 9:31:20 PM

PEOPLE

INDUSTRY ICON expand its global operations. Today, its GWP is around $2.2 billion.

Kelley attributes his success at Ironshore again to the talented people around him – who, he says, were ready and able to capitalize on a significant opportunity.

“I think what really gave us the big oomph was the fact that we were able to … hire a lot of people quickly,” he says.

“What we were able to seize on was the fact that, after the financial services collapse here in the United States, clients were very concerned about concentrations of counterparty exposure. They wanted to focus on diversifying that counterparty exposure. That created an opportunity for a new company like us.

“Our focus is insurance, and it’s what we do well, as opposed to just a reflection of the market,” he says. “What we do in Australia can be very different from what we do in Singapore, from the standpoint of products we offer. We’re patient investors in a territory like Asia Pac. We will have our first regional executive meeting in Hong Kong at the end of this month … I think it will allow us to really gauge how we’re doing and what opportunities are ahead of us that we can help realize.”

To that end, Kelley sees his focus over the next 12 months as ensuring that he and his team remain focused on their core business.

“My job, I believe, in 2016 is to keep

“When it’s all said and done, the decisions you make are probably the most important things that you do. In essence, you become a reflection of your decisions. That is probably as applicable to one’s career as it is to one’s life” “We then had people who could take advantage of that opportunity,” he continues, “and then, ultimately, we were able to realize the benefit of that opportunity and build on the success that we achieved. That really is it – I think when you can attract good people quickly, you can grow quickly.”

The next chapter Among the regions in which Ironshore continues to grow is Asia Pacific. In November, the company became an indirect wholly owned subsidiary of Shanghaibased Fosun International. At the time, Kelley said the acquisition would enable Ironshore to continue building its international specialty platform and enhance its global brand.

Although Ironshore’s presence in the Asia Pacific region is relatively small at the moment, Kelley says the company is exploring ways to expand it.

22

our people focused on performance and to make sure that we don’t lose sight of that,” he says. “The business environment continues to be very challenging. It’s one that you can maneuver in, but it’s one where if you do make a mistake, you pay for it dearly.”

Away from insurance, Kelley devotes considerable time to community causes that serve education.

“Education is truly a door-opener,” he says. “If there’s one thing you can do for your career, it’s go to school. When you go to school, you think clearer, you have greater insight, and ultimately, you hope that leads to better judgment because, when it’s all said and done, the decisions you make are probably the most important things that you do. In essence, you become a reflection of your decisions. That is probably as applicable to one’s career as it is to one’s life.”

IRONSHORE BY THE NUMBERS

100+

The number of new products Ironshore has launched over the past 10 years

35

The number of offices Ironshore currently maintains around the world

Top 10 Ironshore’s rank by AM Best among surplus lines carriers in the US

‘

7

The number of times Ironshore’s GWP has grown since the company began operations

$1.84 billion

Amount Fosun International paid to acquire Ironshore in 2015

www.ibamag.com

20-23_Industry Icon-SUBBED2.indd 22

19/04/2016 9:31:22 PM

When it’s grim, you need Great

®

‘ A barn fire like this is a painful way to learn the carrier you recommended has less than stellar claims service.

To process claims quickly and smoothly takes the expertise of specialists who know and understand how to turn grim to great.

Great American’s strength of specialization gives us that rare ability. We’re able to see risks, write coverages, and handle claims in a way that gives your clients greater satisfaction.

GAIG.com

Turn grim to great with Great American.

Agricultural-related • Annuities • Excess and Surplus • Executive and Professional Liability • Fidelity and Surety • General Liability Inland and Ocean Marine • Lease & Loan Services • Targeted Programs • Transportation • Umbrella and Excess Liability • Workers’ Compensation Great American Insurance Group, 301 E. Fourth St., Cincinnati, OH 45202. Policies are underwritten by Great American Insurance Company, Great American Assurance Company, Great American www.ibamag.com Alliance Insurance Company and Great American Insurance Company of New York, authorized insurers in all 50 states and the DC. © 2016 Great American Insurance Company. All rights reserved.

20-23_Industry Icon-SUBBED2.indd 23

23

19/04/2016 9:31:30 PM

FEATURES

COVER STORY: THE SPECIALISTS

THE

SPECIAL In today’s world, specialization is a must.

Meet 149 agencies that have managed to carve out a profitable niche

INDEX OF US SPECIALTY BROKERS PAGE

COMPANY

Agribusiness 26 Ascension Insurance 26 Copeland Insurance Agency 26 Golden State Crop and Insurance Services 26 Ihry Insurance Agency 26 Insurance Brokers of Minnesota 26 Legacy Crop Insurance 27 Lifeway Insurance Brokers 27 Maberry Insurance 26 Saratoga Insurance Brokers 26 Wentworth, DeAngelis & Kaufman Alarm Systems 28 John T. Costa Agency Amusement Parks 28 Naughton Insurance 28 Northeast Insurance Center Aviation 29 Aircraft & Marine Insurance Agency 29 AOPA Insurance 28 Aviation Marine Insurance 29 Aviation Solutions 28 Avion Insurance 28 Chappell, Smith & Associates 29 Sutton James 29 Travers & Associates 28 Zanette Aviation Insurance Bicycles 29 Velosurance Childcare 30 Morgan Insurance Churches 30 National Church Group Insurance Agency

24

PAGE

COMPANY

Collection Agencies 30 Dash & Love Commercial Auto 30 American Insurance Brokers 31 Cook Insurance USA` 30 Griffin MacLean 30 Hecht & Hecht 30 Hilb Group 30

Interstate Transportation Insurance Broker

31 Matsen Insurance Brokers 31 Northwest Insurance Brokers 31 RSI Insurance Brokers 31 Shepherd Insurance Agency 30 Transportation Insurance Brokers Condominiums 32 Acentria Insurance Construction 32 Brock Insurance Agency 32 Brown & Brown Insurance Brokers of Sacramento 33 Construction Risk Partners 34 Construction Specialties Insurance Services 33 Cook Maran & Associates 33 DJM Insurance Services 32 Fairbanks Insurance Brokers 33 The Graham Company 32 McElveen Insurance 32 Onyx Financial & Insurance Services 32 Red Cedar Insurance Agency 34 Venture Pacific Insurance Services Cyber 36 AHT Insurance

PAGE

COMPANY

35 Brownrigg Companies 35 CITA Insurance 34 Cyber Data Risk Managers 35 DataSurer 34 ECBM Insurance Brokers & Consultants 35 Hayes Insurance Agency 35 NCW Insurance 35 R.P. Ryan Insurance 36 Yavitz Insurance Group 34 Zinc Insurance Employee Benefits 36 Ross & Yerger 36 Russell Warye Entertainment 37 Arts & Entertainment Insurance Brokerage 38 Film Emporium 38 Kelly Insurance Group 37 La Playa 38 MusicPro Insurance Agency 38 Reiff & Associates 38 Taylor & Taylor Associates 38 Truman Van Dyke Company Environmental 40 Bonding and Insurance Specialist Agency 40 Clarke & Sampson 39 D&M Insurance Solutions 40 DCInsurers Mountain 40 Empire West Insurance Services 40 Environmental Insurance Agency (New York) 40 Environmental Insurance Agency (Oregon) 40 ISU Environmental Insurance 40 Legends Environmental Insurance

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 24

19/04/2016 10:38:57 PM

ISTS

US

SPECIALTY BROKERS 2016

‘JACK OF ALL TRADES, master of none’ used to be a common epithet for a tradesperson who acted as a general practitioner. In modern times, as online-only insurers encroach on many brokers’ bread-and-butter trade, those who haven’t become masters of a given niche are feeling the pressure of a rapidly commoditizing marketplace.

Which is why we’ve produced our first-ever compilation of agencies that have found their niche – and success. From coast to coast, these 148 agencies and brokers provide specialized services to insure their clients’ every need, from aircraft to yoga.

PAGE

COMPANY

40 Mills Environmental Insurance Services 39 Solar Insure 40 Transportation Commercial Environmental Insurance Services Equine 41 Blue Bridle 41 Broadstone Equine Insurance 41 Jacobi Group 41 Laurel Fowler Insurance Fine Art/Jewelry 41 Flather & Perkins 41 Huntington T. Block 41 Jewelers Specialty Insurance Services Franchises 42 American Franchise Specialist Agency Healthcare 42 Schaefer Enterprises 42 Seacrest Partners 42 The MGIS Companies Hospitality 44 Bar and Restaurant Insurance 43 Benchmark Insurance Group of Texas 43 CBIZ Insurance Services 43 Commercial Insurance Specialists 44 Henry M. Murray Agency 44 Hospitality Insurance Agency 44 Mallory Agency 44 Morris & Reynolds Insurance 44 Trigen Insurance Solutions 44 White & Company Insurance

PAGE

COMPANY

International Travel 45 Good Neighbor Insurance Landscapers 45 Tanner Insurance Agency Lawyers 45 Thompson Flanagan Marine 47 Anchor Marine Underwriters 45 47 47 47 47 46 45 47

Baldwin Krystyn Sherman Partners Bruce V. Schneider Associates Kolisch Marine Insurance NBOA Marine Insurance Ocean Marine Insurance Agency Servco Pacific Insurance Smithwick & Mariners Insurance Strickland Marine Insurance

47

Wallace Welch & Willinghan

Microbreweries 48

Southern Oaks Insurance Brokers

Motorcycles 48

Fernet Insurance Brokers

Nonprofits 48 Charity One Insurance Agency 50 Colorado Nonprofit Insurance Agency 49 G2 Insurance 49 Gillman Insurance Problem Solvers 49 Hawley & Associates 48 Heffernan Insurance Brokers 49 Meeker Sharkey & Hurley 48 R.V. Nuccio & Associates 49 Sprague Israel Giles Insurance

PAGE

COMPANY

48 Walterry Insurance Oil & Gas 50 Cravens Warren 50 EFGI Insurance & Bonds 51 Empire Company 51 Energy Insurance Brokers 50 Greenwood Insurance Group 51 Oil Patch Insurance 50 Sisk & Co. 50 Vaughan Insurance Agency Photography 51 Tom C. Pickard & Co. Psychoanalysts 51 Frenkel & Company Public Entities 51 Alliant Insurance Services Recreation 51 AdventSure 51 Global Recreation Insurance 51 Leavitt Recreation and Hospitality Santa Clauses 52 Kaercher Insurance Small Businesses 52 Mid USA Insurance Agency Special Events 52 Special Event Ins 4U Sports 53 Westpoint Insurance 53 Pullen Insurance Services Yoga 53 Yogi Chuck

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 25

25

19/04/2016 10:39:04 PM

FEATURES

COVER STORY: THE SPECIALISTS AGRIBUSINESS

COPELAND INSURANCE AGENCY Riley, KS

Established in 1960 to serve residents and farmers in the area of Riley, Kansas, Copeland Insurance Agency now provides insurance solutions throughout Kansas and 37 other states. Copeland specializes in programs designed for the unique needs of the farming and agriculture communities; about 60% of their business comes from the agribusiness market. Their products include crop insurance, livestock insurance and stable boarding. Copeland also offers niche programs specially designed for custom harvesters, orange grove pickers and other hard-to-place lines of insurance.

“The hardest part in ag is writing workers’ compensation because it’s manual labor or it’s around a lot of heavy equipment and it is high-hazard,” says owner Jay Copeland, “so a lot of companies do not want to write the workers’ compensation on an ag business.”

IHRY INSURANCE AGENCY West Fargo, ND

In 1982, Gary and Mary Ihry formed Ihry Insurance Agency as a local independent insurance agency. Boasting locations throughout North Dakota, Ihry specializes in agricultural insurance, including crop, livestock, and farm and ranch insurance.

The various specialized lines offered to farmers and agribusiness operators include protection from flooding, accidents, wildlife, wind, fire and theft.

WENTWORTH, DEANGELIS & KAUFMAN Farmington, CT

Wentworth, DeAngelis & Kaufman [WD&K] specializes in commercial agribusiness and crop insurance, as well as personal farm and ranch insurance coverage, including farm auto, farm umbrella, farm products, animal liability, equine liability and more. WD&K also has insurance programs that cater to farm machinery contractors, custom harvesters, small to large agribusinesses and a crop hail insurance program.

26

GOLDEN STATE CROP & INSURANCE SERVICES Hartford, CA

Golden State Crop & Insurance Services was formed in 1996 to provide insurance products to agricultural producers. Today they are an agribusiness and crop insurance specialty agency, serving California, Arizona, Oregon, Washington and Hawaii. Golden State works with several major national carriers, including Agrilogic Insurance Services and Rain & Hail Insurance Services. The agency is a member of Trusted Choice, Insurance Brokers & Agents of the West and Farm Bureau.

LEGACY CROP INSURANCE Brighton, IL

Legacy Crop Insurance’s crop insurance program covers more than 250,000 acres of farmland in 23 states. The four expert agents at Legacy have nearly 100 years of combined experience in the sector and are dedicated to protecting clients’ investments from crop losses. Legacy is part of the FamilyFarms Group, a network of family farm operators, agricultural experts and suppliers working to preserve the legacy of family farms in North America.

ASCENSION INSURANCE Walnut Creek, CA

Founded in 2007, Ascension Insurance focuses on specialized niche programs that serve various industries such as agribusiness, construction, motorsports, real estate, technology and more. Since the day the agency started, agribusiness has been a primary focus. Challenges within the sector include “the labor component related to workers’ compensation and weather-related issues related to crop insurance,” says Steve Martin, president of Pan American Insurance Agency, one of Ascension’s operation units.

“Food safety and workers’ safety are very important,” Martin adds. “Helping growers comply with the regulations related to labor and food safety is a big part of what we do.”

INSURANCE BROKERS OF MINNESOTA Anoka, MN

Insurance Brokers of Minnesota was formed in 1998 by Gary Sorenson and has remained a family-run business ever since. Working with more than 50 carriers, the company’s agriculture business insurance program partners with the top agribusiness insurance companies in the industry, providing insurance to a wide range of agriculture businesses, including dairy product manufacturing, farm supplies, seed merchants, meatpacking plants, mills, food distributors and more.

SARATOGA INSURANCE BROKERS Sykesville, MD

Saratoga Insurance Brokers services the agricultural community in Maryland, Pennsylvania, Virginia and Washington, DC, through their specialty personal farm insurance and commercial livestock programs. Saratoga’s farm insurance is tailored to protect farms and ranches through farm equipment, auto, dwelling and structure insurance, and more. In addition, their livestock insurance program for commercial businesses protects the large livestock investments made by agribusinesses.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 26

19/04/2016 10:39:12 PM

F i n a n c i n g for t h e i n s uran c e in d ustry

Insurance lending SPECIALTY BROKERS requires insurance expertise.

US

2016

See why thousands of insurance agents and brokers have turned to Oak Street Funding for hundreds of millions in capital since 2003. Visit us at oakstreetfunding.com.

Financing from $25,000 to $20MM* • • • • • •

Acquire an agency Hire staff Invest in growth Get working capital Upgrade technology Consolidate debt

We provide capital for: • • • •

LIFEWAY INSURANCE BROKERS

Wholesalers Agents MGAs Program Administrators

Houston, TX

Lifeway Insurance Brokers has been family-owned and -operated since 2012, offering a full line of insurance products. Lifeway services the agricultural community with crop hail and multi-peril crop insurance for agricultural producers, including farmers, ranchers and other agricultural-related businesses.

MABERRY INSURANCE Sweetwater, TX

Maberry Insurance has specialized in farm, horse and cattle insurance for the past 30 years. In 2012, Maberry Insurance took on its current name and became producers for Andreini & Co., one of the largest privately owned insurance brokerages in the US. Maberry’s coverage offerings include farm and ranch liability, stable liability, event liability, mortality and theft, commercial property, and other commercial and farm options.

www.ibamag.com

27

* Loans and lines of credit subject to approval. CA residents: Loans made pursuant to a Department of Corporations California Finance Lenders License. Potential borrowers are responsible for their own due diligence on acquisitions.

24-53_Specialist brokers5-SUBBED.indd 27

19/04/2016 10:39:21 PM

FEATURES

COVER STORY: THE SPECIALISTS ALARM SYSTEMS

AVIATION

JOHN T. COSTA AGENCY Wayne, NJ

Alarm system companies work to provide protection for homes and businesses, but who provides protection for them? John T. Costa Agency has been writing general liability coverage for burglar and fire alarm/ electronic security contractors, electronic installers and central station monitoring operators for more than 25 years. Their Alarm Shield program includes general liability and alarm company errors & omissions.

AMUSEMENT PARKS

NORTHEAST INSURANCE CENTER Cape Coral, FL

The amusement and leisure industry insurance experts at Northeast Insurance Center offer specialized amusement industry policies in all 50 states. Their national program includes policies for laser tag, water parks, family entertainment centers, mechanical bulls, rock walls and more. Owner Ric Maylott has more than 28 years of experience in commercial insurance.

NAUGHTON INSURANCE East Providence, RI

For more than 60 years, family-owned Naughton Insurance has provided Rhode Island with a variety of specialty insurance programs. Naughton has specialized in insurance programs for amusement parks and related entertainment industries since the 1950s, and is one of the world’s oldest insurers in the sector. The agency’s amusement park product line includes coverage for zoos, water parks, special events, festivals, mini golf and more.

28

CHAPPELL, SMITH & ASSOCIATES Franklin, TN

Chappell, Smith & Associates [CS&A] has been handling aircraft insurance, airport liability coverage, pilot life insurance, and coverage for helicopters, corporate aircraft, private aircraft, regional airlines, and charter companies for more than 130 years. CS&A was founded in Nashville in 1891 as Buell & Crockett Insurance; in 1936, partner Paul W. Turner began the agency’s long relationship with aviation insurance.

“A good aviation insurance specialist can be of great assistance in guiding you through the maze of decisions that you must make, including limits and values,” says senior vice president Brent Anderson. “A generalist could not be of much help in these areas if he is not an aviation specialist.”

AVIATION MARINE INSURANCE SERVICES Oakland, CA

Aviation Marine has helped aircraft owners obtain personal and/or commercial aircraft insurance coverage since 1978.

Aviation Marine works with multiple aviation insurance carriers to insurer any type of aircraft, from classic Bonanzas and chartered Gulfstreams to firefighting helicopters and rotor-wing aircraft.

Founder Roger Gault flew helicopters in Vietnam and off of oil platforms, then worked with National Aviation Underwriters before founding Aviation Marine.

AVION INSURANCE Lake Mary, FL

The aviation insurance specialists at Avion Insurance have been placing coverage for the aviation industry for more than 30 years. Their comprehensive aviation insurance programs include aircraft and helicopter insurance, workers’ compensation, general liability, aviation property insurance, and much more.

President and CEO Scott Langevin has been with Avion since 1995, joining the team after receiving a degree in risk management and insurance from Florida State University. In 2005, he earned his Certified Aviation Insurance Professional designation, making him one of less than 100 people to have this distinction.

ZANETTE AVIATION INSURANCE SERVICE San Carlos, CA

Zanette Aviation Insurance works with top aviation insurance carriers to write all types of policies for aircraft, including commercial aviation insurance, private airplane insurance, helicopter insurance and even insurance policies for unmanned aerial vehicles (drones).

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 28

19/04/2016 10:39:26 PM

US

SPECIALTY BROKERS 2016

AOPA INSURANCE SERVICES

TRAVERS & ASSOCIATES

The Aviation Owners and Pilots Association [AOPA] has been servicing the aviation community for more than 75 years. In 1993, AOPA partnered with Aon Corporation to provide aviation insurance.

Today, AOPA Insurance Services is the largest light aircraft insurance brokerage in the world and partners with multiple A-rated carriers to provide policies for aircraft owners, renters, CFI insurance, corporate aircraft, aviation businesses and flying clubs.

Travers & Associates has more than 60 years of experience in the aviation insurance industry, providing policies for private and corporate aircraft, commercial aviation, life insurance for pilots, and coverage for unmanned aerial vehicles and rental aircraft. Founded in the 1950s

by Navy pilot Bob Travers, Travers & Associates is still run by his family – three of whom survived an airplane accident in 1983, which offered the agency a new perspective on aviation insurance.

St. Louis, MO

Frederick, MD

AIRCRAFT & MARINE INSURANCE AGENCY Burnsville, MN

In business since 1962, Aircraft & Marine Insurance Agency provides aircraft, hangar and boat insurance both in the US and internationally. Their team is composed of licensed pilots, former aircraft insurance underwriters and boating fanatics. President Kevin Gruys, a licensed pilot who acquired the agency in 1982, gained his interest in aviation by watching crop dusters during his childhood in Minnesota.

AVIATION SOLUTIONS Lees Summit, MO

“We chose our niche as a result of our passion,” said Kyle White, founder and president of Aviation Solutions, an agency dedicated to providing insurance for aviation needs. Many of the associates at Aviation Solutions have previous aviation experience or flew professionally before joining the team. “The secret to our success has been our ability to identify with the clients as one of their own,” White says. “We spend time with them at their place of business, and we are familiar with their specialty within the aviation insurance community. If they operate aircraft, they know, since we are pilots too, that we understand what they do; therefore we understand their exposures.

This understanding allows for us to customize policies to address their insurable exposures.”

SUTTON JAMES Hartford, CT

Sutton James has specialized solely in aviation insurance for 20 years. Each broker at Sutton James is an active pilot, and many have held aviation jobs prior to joining the agency. Sutton James covers all aspects of the aviation industry, including aircrafts, helicopters, commercial aviation, product liability, agriculture aviation and unmanned aerial vehicles. Jon Doolittle founded the agency in 1986 after serving as an underwriter at USAIG, where he handled commercial and corporate aviation accounts. Doolittle is an FAA Aviation Safety Counselor and holds a Certified Aviation Insurance Professional designation.

BICYCLES

VELOSURANCE Ft. Lauderdale, FL

Velosurance founders Dave Williams and Denis Voitenko were inspired to start their company when they realized how poorly renter’s and homeowner’s policies insured bicycles.

As avid cyclists, Williams and Voitenko understood the need to properly insure high-value bicycles and the importance of quick claims handling so riders are able to get back on their bikes as soon as possible following an accident or repair. “We partnered with Markel American Insurance Company, a leader in recreational insurance, to offer a multi-risk bicycle insurance policy,” Williams says, “providing protection to all types of cyclists, and with none of the silly restrictions that other insurance wants to place on riders.”

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 29

29

19/04/2016 10:39:35 PM

FEATURES

COVER STORY: THE SPECIALISTS CHILDCARE

COMMERCIAL AUTO

MORGAN INSURANCE

AMERICAN GRIFFIN INSURANCE BROKERS MACLEAN Mandeville, LA

Bellevue, WA

Commercial insurance brokerage Morgan Insurance specializes in products related to the childcare industry. Established in 1991, Morgan Insurance is one of the world’s largest childcare insurance providers, providing coverage for childcare centers, Montessori schools, preschools and home daycare facilities. Morgan Insurance is licensed in 33 states, and they rate, underwrite and bind coverage in-house.

The agency is also responsible for the implementation of the group program for the US Navy, Air Force and Marine Corps family childcare programs.

American Insurance Brokers is a fullservice agency serving the trucking/ transportation industry in seven different states across the South. The company was formed in 1980 by Sue and David Miller to provide excellent commercial vehicle insurance coverage for businesses throughout Louisiana; in 2007, their daughter, Jill, took over operations.

Today, American Insurance Brokers covers all aspects of the transportation industry, including truck liability, workers’ compensation and cargo insurance, and has relationships with 35 A-rated truck insurance companies.

The brokers at Griffin MacLean offer various insurance products throughout the state of Washington, but one of their many areas of specialty is commercial auto. From self-employed consultants to large organizations, any business with a fleet of trucks or specialty vehicles that are used for business activities falls under the purview of Griffin MacLean. Producer Scott Sypher identifies the agency’s greatest challenges as the tightly regulated industry and the possibility of bad drivers causing programs to be thrown out.

TRANSPORTATION INSURANCE BROKERS

Portland, OR

Mukilteo, WA

CHURCHES

NATIONAL CHURCH GROUP INSURANCE AGENCY Leesburg, VA

For more than 30 years, National Church Group [NCG] Insurance Agency has provided property & casualty insurance for churches, houses of worship, church organizations, private schools and colleges, camps, day cares, nonprofit organizations and homeschool groups.

Founder Greg Wigfield created the agency with the primary purpose of protecting religious institutions. For the past 17 years, NCG has been a recipient of church insurer Brotherhood Mutual’s Agency of the Year Award.

Glendale, CA

Transportation Insurance Brokers [TIB] is the largest brokerage firm in the US that provides insurance policies to the passenger transportation industry. TIB insures every type of transportation operation, from charter buses and limousines to school buses and shuttle buses. As a passenger transportation insurance specialist, TIB has established memberships and relationships with numerous transportation associations across the country, including the California Bus Association, United Motorcoach Association, National Limousine Association and many more. Before forming TIB, president Larry Kalior managed a family-owned bus business for four years.

COLLECTION AGENCIES

DASH & LOVE

Bala Cynwyd, PA

At Dash & Love, four generations of the Dash family have provided personal and business insurance solutions nationwide since 1930. Dash & Love specializes in insurance and risk management services for collection agencies, collection law firms and debt buyers.

30

INTERSTATE TRANSPORTATION INSURANCE BROKER Commerce, CA

Interstate Transportation Insurance Broker specializes in all lines of insurance for the transportation industry, including charter buses, limousines, inland marine, long-haul trucking, transit buses and much more.

HECHT & HECHT INSURANCE AGENCY Founded in 1974 by Ben Hecht and his two sons, Dan and Larry, Hecht & Hecht Insurance is a three-generation family brokerage that has been in business for more than 35 years. Hecht & Hecht offers specialty lines to the vehicle dealer/garage insurance sector, and an interest in all things automotive runs through the whole company – current president Evelyn Hecht (Ben’s granddaughter) bought a classic 1966 Mustang as her first car. The fiveperson team at Hecht & Hecht works with independent auto, RV, trailer and motorcycle dealers throughout the Northwest US.

HILB GROUP Richmond, VA

Hilb Group was founded in 2009 and offers targeted programs for highly specialized businesses such as transportation, hospitality, nonprofits and cosmetic surgeons. The company is headquartered in Richmond, Virginia, where the transportation and logistic industry is a key player in the city’s economy. Hilb Group’s transportation program delivers risk management and insurance services to trucking firms, waste haulers, recyclers and more in the area. By focusing on factors (such as fuel cost) that impact the transportation industry, Hilb Group is able to provide tailored insurance solutions.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 30

19/04/2016 10:39:36 PM

US

SPECIALTY BROKERS 2016

SHEPHERD INSURANCE AGENCY Carmel, IN

Formed in 1977 by David Shepherd as a personal insurance agency, Shepherd Insurance Agency has grown to specialize in commercial lines, and truck dealerships are their largest niche market. Shepherd Insurance began specializing in the truck dealership niche in 2008; today, they insure more than 400 dealerships in 39 states across the country. The company now has 11 locations throughout Indiana, Kentucky and Florida.

COOK INSURANCE USA Texarkana, TX

Cook Insurance provides insurance solutions to individuals and businesses in Texas and Arkansas. The agency’s commercial auto program is designed for companies that use vehicles in tasks (other than commuting) that are related to the operator’s occupation.

RSI INSURANCE BROKERS Costa Mesa, CA

RSI Insurance was established as a transportation specialist. Some of RSI’s specially designed programs include large and small fleet insurance, employee benefits, supply chain insurance, and AVERT, a program that provides custom insurance coverage with in-vehicle camera technology to screen and correct risky driver behavior.

NORTHWEST INSURANCE BROKERS Spokane Valley, WA

Northwest Insurance Brokers services Washington and Idaho, specializing in commercial auto policies for businesses and individuals who use vehicles in tasks related to the operator’s occupation. President and owner Lana Myers has more than 53 years of experience in the insurance business.

MATSEN INSURANCE BROKERS Eureka, CA

Matsen Insurance Brokers has provided insurance and risk management solutions for nearly 80 years. Their many industryspecific insurance programs, including their specialty commercial auto insurance program, offer policies that are unique for different lines of work.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 31

31

19/04/2016 10:39:41 PM

FEATURES

COVER STORY: THE SPECIALISTS CONDOMINIUMS

ACENTRIA INSURANCE Destin, FL

Florida-based Acentria Insurance provides insurance and risk management services to individuals and businesses in all 50 states. Acentria’s specialty industries include condominiums, multifamily communities and real estate.

CEO Kendall McEachern has more than 30 years of insurance experience. Prior to founding Acentria, McEachern was a managing partner, senior vice president and board member for Insurance Office of America.

CONSTRUCTION

BROWN & BROWN INSURANCE BROKERS OF SACRAMENTO Rocklin, CA

Since 1992, Brown & Brown Insurance Brokers of Sacramento has specialized in providing insurance solutions to the construction industry in California, Nevada and Arizona. Currently, Brown & Brown covers approximately 10% of the insured contractors in the state of California. The firm was known as Powers & Company for 16 years before being acquired by Brown & Brown in 2008.

RED CEDAR INSURANCE AGENCY Grand Rapids, MI

Red Cedar Insurance Agency represents more than 150 insurance carriers, providing specialized insurance solutions for the healthcare industry, technology risk, manufacturers and high-risk construction companies. Their construction insurance program focuses on the total cost of risk, not just the insurance policies. The agency has experience working with more than 1,000 construction clients to cover assets and projects from conception to completion.

32

MCELVEEN INSURANCE Lake Charles, LA

As a construction insurance specialist, McElveen Insurance provides products necessary to protect construction businesses across the US, including risk management, surety bonds and all lines of property & casualty insurance. President Doug McElveen started McElveen Insurance in 2013 after spending 16 years at Arthur J. Gallagher. “Our decision to focus exclusively on construction accounts has greatly benefited our clients as well as our agency,” he says. “Our clients benefit from the industry-specific knowledge and the experience we bring to the table. This focus allows us to become more efficient, gives a depth of knowledge and enhances our relationships with construction carriers.”

FAIRBANKS INSURANCE BROKERS Irvine, CA

Fairbanks is a commercial insurance brokerage specializing in construction insurance services for contractors, builders, tradesman and artisans throughout California, Washington and Texas. Established in 2012 by Jason Fairbanks, the agency is licensed in California, Washington, Texas and Nevada.

BROCK INSURANCE AGENCY Rossville, GA

John Brock and Marie Davis created Brock Insurance Agency in 1963 with the goal of providing insurance products throughout the Southeast, creating specialized divisions to bring insurance expertise to various industries. One of the agency’s largest areas of expertise is construction, which grew as a response to the insurance needs of the founders’ construction industry friends.

ONYX FINANCIAL AND INSURANCE SERVICES Oceanside, CA

Founded in 2005 by president and CEO Todd Budde, Onyx Financial & Insurance Services is an independent broker licensed in California, Colorado, Texas, Nevada and Iowa. They specialize in high-risk business industries such as construction. Onyx places high-risk liability insurance, as well as surplus and admitted lines.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 32

19/04/2016 10:39:46 PM

US

SPECIALTY BROKERS 2016

CONSTRUCTION RISK PARTNERS New York, NY

Construction Risk Partners [CRP] is a full-service surety and insurance brokerage dedicated to the construction industry.

Founded in 2006, CRP serves heavy civil contractors, consultants, environmental contractors, owners & developers, road contractors, equipment suppliers and other construction-related companies throughout the East Coast. “The personalized, boutique nature in which we serve our clients, combined with the true flexibility and creativity that results from being privately held and owner-managed, sets us apart from competitors,” says founding partner Al Marquis.

THE GRAHAM COMPANY Philadelphia, PA

The Graham Company specializes in providing a full spectrum of property & casualty products and employee benefits to high-risk industries such as construction, manufacturing, distribution, chemical and others.

Chairman and CEO Bill Graham took over the agency from his father in 1972.

Since then, he has expanded it from six employees to more than 160 and has grown annual revenue from $300,000 to $40 million. In 2013, The Council of Insurance Agents and Brokers recognized Graham as one of the top ‘Game Changers’ in the industry in the past 100 years. Also in 2013, The Philadelphia Insurance Society awarded him with the Distinguished Leadership Award.

COOK MARAN & ASSOCIATES East Hampton, NY

Cook Maran & Associates offers a full range of insurance products to individuals and businesses in 48 states. Their current book of business is 56% commercial lines, 22% personal lines and 12% employee benefits; they also have commercial specialty lines in the construction and pool & spa industries. President & CEO Leonard Scioscia has more than 30 years of experience in insurance and risk management; he started his career working at an insurance carrier before becoming a broker.

DJM INSURANCE SERVICES El Cajon, CA

DJM Insurance Services has been writing insurance policies for more than 15 years and offers contractor license bonds, construction bid and performance bonds, equipment coverage, commercial auto, and more. Founder Darrin Mroz used his experience in writing contractor’s insurance policies to establish his agency in 2009.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 33

33

19/04/2016 10:39:53 PM

FEATURES

COVER STORY: THE SPECIALISTS CONSTRUCTION

CYBER

ECBM INSURANCE BROKERS & CONSULTANTS Philadelphia, PA

ECBM’s cyber liability program protects organizations from data breaches due to hacking, unintentional malware, user error, cyber extortion, misuse of website and/or intellectual property infringement.

ZINC INSURANCE Cleveland, OH

CONSTRUCTION SPECIALTIES INSURANCE SERVICES Sacramento, CA

For more than a decade, Construction Specialties Insurance Services [CSIS] has provided commercial coverage for all types of construction and contracting companies throughout the state of California. CSIS’ insurance lines include general liability, commercial auto, inland marine, builder’s risk, pollution insurance and more for all sectors of the construction industry.

Independent agency Zinc Insurance’s goal is to protect individuals and businesses through their specialty in cyber coverage.

Zinc offers policies from Liberty Mutual, CAN, Titan Insurance and more.

CYBER DATA RISK MANAGERS Princeton, NJ

VENTURE PACIFIC INSURANCE SERVICES Mission Viejo, CA

Venture Pacific Insurance Services [VPIS] has specialized in commercial insurance since 1996, when the agency was formed by two partners who primarily targeted constructionrelated risks. Today, VPIS has grown to offer many different industry-specific insurance programs for construction companies, security guard companies, the pool industry, car dealerships and more.

34

Christine Marciano, president of Cyber Data Risk Managers, first stumbled upon cyber insurance six years ago when the healthcare industry was transitioning to electronic medical records, and decided to focus exclusively on network security and privacy liability insurance. “Cyber risks are constantly evolving, and yesterday’s insurance claim is quite different from today’s – and tomorrow’s,” she says.

Cyber Data Risk Managers offers all types of coverage, including D&O insurance, technology professional liability, intellectual property insurance and data breach insurance. “Cyber insurance has finally received the attention it deserves and has become the hottest insurance topic ever – and certainly the most complex insurance product ever created,” Marciano says.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 34

19/04/2016 10:39:56 PM

US

SPECIALTY BROKERS 2016

CITA INSURANCE SERVICES Orange, CA

CITA Insurance Services is a commercial property & casualty business insurer with various specialty insurance programs, including a cyber liability program.

CITA’s cyber insurance program provides coverage for costs incurred by businesses dealing with a cyber threat or data breach.

NCW INSURANCE Amarillo, TX

R.P. RYAN INSURANCE Phoenix, AZ

Since 1982, R.P. Ryan Insurance has represented several of the nation’s top insurance providers to service Arizona’s insurance needs. The agency’s cyber liability insurance program protects businesses of all sizes against cyber breaches.

NCW Insurance has provided commercial and personal lines of insurance since its founding in 1926. One of the agency’s specialized lines of commercial insurance is its cyber liability program, which provides cyber threat protection to a variety of industries such as healthcare, manufacturing and retail.

BROWNRIGG COMPANIES Troy, MI

Established more than 25 years ago, Brownrigg Companies is an independent commercial insurance agency that offers all lines of commercial insurance to a variety of industries. Their cyber liability insurance program provides data, cyber and security protection to businesses.

DATASURER Sunrise, FL

DataSurer offers businesses and organizations cyber insurance and in-depth technology knowledge. The DataSurer team has more than 20 years of experience in commercial insurance, specializing in data breach insurance. DataSurer offers a comprehensive insurance plan through one of more than 30 carrier partnerships that provide coverage for a company’s current cyber risks and analyzes potential future liabilities. Owner Suhail Nanji is a technology expert and a fully licensed commercial insurance agent who focuses solely on cyber insurance.

HAYES INSURANCE AGENCY El Sobrante, CA

Hayes Insurance Agency is a commercial insurance brokerage that has relationships with more than 200 carriers. Established more than 30 years ago by Galen Hayes, the agency specializes on hard-to-place risks, cyber liability and insurance for the medical marijuana industry. “We saw cyber liability insurance becoming a need, and we discussed the risk with our clients; then we found and developed a program with several insurance companies to manage the risk,” says Galen Hayes, adding that the changing nature of risks in the cyber market presents a challenge. “For instance, cyber liability was not as big deal 20 years ago and was thrown in on a general liability policy,” he says. “These days, it is excluded on the general liability policy and needs its own policy.”

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 35

35

19/04/2016 10:39:59 PM

FEATURES

COVER STORY: THE SPECIALISTS CYBER

AHT INSURANCE

YAVITZ INSURANCE GROUP

AHT began specializing in technology insurance in 1985, and it remains their largest specialty to date – they service more than 2,500 clients. The executives at AHT serve on the boards of major technology associations, and manage the property & casualty and employee benefits program for the Northern Virginia Technology Council. President and CEO David Schaefer is a founding member of TechAssure, a nonprofit for technology-focused risk management professionals.

Established in 1921 by World War I veteran Al Yavitz, Yavitz Insurance Group offers various specialty lines including cyber liability insurance. Yavitz Insurance Group’s range of cyber insurance products includes privacy breach liability, data restoration and more. “The way policies are put together – general liability, for example – it never addressed cyber exposures,” says owner Ken Yavitz, who adds that Yavitz Insurance Group’s goal is to provide ample and tailored cyber risk solutions to clients.

Leesburg, VA

Madison, NY

EMPLOYEE BENEFITS

RUSSELL WARYE

ROSS & YERGER

Russell Warye formed his eponymous agency in 1996 after spending the first six years of his insurance career working for Prudential Financial. With more than 25 years in the financial services industry, Warye is also a certified insurance counselor and professional plan consultant. His agency specializes in employee benefits programs such as group health, ancillary benefits and 401k plans, and focuses on several specialty markets, including townships, fire protection districts, engineering firms and contractors. Warye is a member of the Million Dollar Round Table, where he has achieved Top of the Table honors – the top level of achievement in the life insurance and financial services profession – for nine years in a row.

For more than 150 years, Ross & Yerger has provided risk management and insurance solutions to a wide range of industries.

Today, Ross & Yerger’s employee benefits practice comprises more than 40% of the firm’s total business. In addition, the firm has developed an expertise in the oil & gas, construction, healthcare, nonprofit, lowincome housing and education industries.

Libertyville, IL

36

Jackson, MS

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 36

19/04/2016 10:40:04 PM

US

SPECIALTY BROKERS 2016

ENTERTAINMENT

LA PLAYA New York, NY

Independent brokerage La Playa offers specialized niche insurance for media, fine arts, entertainment, science and technology, and private clients in the US and UK. The company was formed in 1999 when CEO Mark Boon (pictured right), then a partner at a regional insurance company, became frustrated that too many creative organizations were buying insurance policies that were the wrong shape, size and price. Using his expertise as both an insurance professional and a musician, Boon was able to create specialized policies for music and arts organizations, professional musicians, and media companies.

“We target very tightly segmented markets with very specific, tailored messages,” Boon says. “Our teams are genuine experts in their fields, with decades of experience between them. We work closely with sector associations and other advisors who specialize in the same niches, as well as keeping our fingers on the pulse of rapidly developing markets – it generates an excellent stream of referral business.”

ARTS & ENTERTAINMENT INSURANCE BROKERAGE Marblehead, MA

Operated by a father and son for 35 years, Arts & Entertainment Insurance Brokerage provides a variety of insurance packages for film and video production, commercial photography, music/ audio production, special events, touring performers, foreign productions and more. Owner Andrew J. McDonough brings 50 years of experience working in all areas of commercial and personal insurance to the agency.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 37

37

19/04/2016 11:38:53 PM

FEATURES

COVER STORY: THE SPECIALISTS ENTERTAINMENT

TRUMAN VAN DYKE COMPANY Los Angeles, CA

For more than half a century, the Truman Van Dyke Company has been specializing in the field of entertainment insurance. In 1953, Truman Van Dyke Sr., a former silent film actor, and his son, Truman Van Dyke Jr., a former child actor, created the agency to focus on servicing the insurance needs of entertainment professionals. The agency wrote its first insurance policy for film production in 1969, which began their specialty in insuring film and TV productions, and providing errors & omissions and commercial insurance for entertainment businesses.

TAYLOR & TAYLOR ASSOCIATES New York, NY

Taylor & Taylor Associates specializes in providing insurance to entertainment, photography and communications industries, as well as Japanese companies doing business in the US. Taylor & Taylor began operations in 1956 as Shepard-Taylor Associates when co-founder Raymond Taylor placed the initial insurance for New York’s first prominent Japanese restaurant, Saito’s. In 1984, Shepard-Taylor merged into Taylor & Taylor Associates. Entertainment programs at the agency include film, video, postproduction, equipment coverage, still photographers and an American Society of Media Photographers package.

REIFF & ASSOCIATES

KELLY INSURANCE GROUP

New York, NY

Pittsburgh, PA

Reiff & Associates brokers nearly every type of insurance, but their specialty lies in insuring the entertainment industry.

They agency provides coverage for film and TV production, cable networks, theatrical venues, concert promoters, celebrities and more. Formed in 1983 by Dennis Reiff, Reiff & Associates was the first brokerage to focus on the insurance needs of independent films and television producers. Principal Ross J. Miller joined Reiff & Associates in 1997 and expanded their client roster to include music, concert and entertainment support businesses.

For more than 30 years, Kelly Insurance Group has provided insurance products to the entertainment industry. The company’s home base in Pittsburgh is a frequent location for major film shoots due to the area’s financial incentives, and it is also home to the largest and most advanced movie studio in the eastern US and the largest sound stage outside of Los Angeles and New York City. Kelly Insurance Group has specialized in insuring the planning, creating, developing and shooting of media, including pre- and post-production coverage, in Pittsburgh.

MUSICPRO INSURANCE AGENCY Woodbury, NY

MusicPro Insurance Agency was created in 2000 with a single focus – providing affordable insurance to meet the needs of working music professionals. Today, nearly 4,000 musicians, studios and other music professionals rely on MusicPro for coverage.

Insurance lines include instrument and equipment coverage, studio liability, special event liability, and health, renter’s and homeowner’s insurance.

38

FILM EMPORIUM New York, NY

“On time and under budget” summarizes Film Emporium’s business model. Csilla and Laird Criner established the fullservice insurance brokerage in 1995.

“Movies, especially art house films have always fascinated me from early childhood,” Csilla says. “This passion – the need to service filmmakers’ insurance needs – along with my partner, Laird Criner’s, extensive global insurance background, led to forming Film Emporium in 1995.” Specializing in entertainment, production and special event insurance, Film Emporium’s various services include short-term production insurance, errors & omissions, equipment insurance, directors & officers liability, wedding insurance and general business policies. In the film industry, projects are often green-lit at the last minute, and Film Emporium understands the need for quick responses. Their online system allows their filmmaker clients to access what they need, when they need it. Film Emporium is licensed in 48 states and regularly provides temporary short-term liability coverage for foreign filmmakers who are producing films in the US.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 38

19/04/2016 10:40:12 PM

US

SPECIALTY BROKERS 2016

ENVIRONMENTAL

D&M INSURANCE SOLUTIONS Clearwater, FL

D&M Insurance Solutions specializes in insurance consulting for renewable energy assets. The agency has consulted on or placed insurance coverage for more than $2.4 billion on renewable energy accounts. The agency was formed in 2008

by William David Cox and Mike Ryan, who sought to offer creative insurance solutions and consulting services to the alternative energy and financial services industries. Prior to founding D&M, Cox and Ryan worked together on the development, risk management and insurance placement of solar, wind and bio-energy risks at MMA Renewable Ventures.

SOLAR INSURE Costa Mesa, CA

A full-service commercial brokerage, Solar Insure focuses on designing insurance programs for companies geared towards renewable energy, specifically wind and solar energy. Solar Insure offers products for alternative energy risk, solar power contractors, energy producers, power plants and more.

SPECIALIZED PROTECTION. YOUR WOOD ACCOUNTS ARE NOT LIKE OTHERS. THEY HAVE SPECIFIC NEEDS AND RISKS THAT THEY WORRY ABOUT… THINGS LIKE DUST COLLECTION, AUTO FLEET SAFETY AND FIRE PROTECTION. YOU NEED AN INSURANCE COMPANY TO PARTNER WITH THAT UNDERSTANDS THESE UNIQUE NEEDS AND ISSUES.

MEET MICHAEL. Michael Culbreth has been a Loss Control Services Consultant with PLM/ILM for over 13 years. Over these years he has visited thousands of lumberyards, sawmills and wood products manufacturing operations. He lives and breathes the lumber and building material industries. Michael’s specific knowledge allows him to provide your clients with relevant and practical recommendations to protect their businesses. He aims to prevent risks that are avoidable and makes sure your clients are adequately prepared for what may come.

Your clients deserve the best. Partner with an expert in the wood industry. Keep them safe with Michael and PLM/ILM. PENNSYLVANIA LUMBERMENS MUTUAL INSURANCE COMPANY INDIANA LUMBERMENS MUTUAL INSURANCE COMPANY MAIN 800.752.1895

WEB WWW.PLMILM.COM

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 39

39

19/04/2016 10:40:19 PM

FEATURES

COVER STORY: THE SPECIALISTS ENVIRONMENTAL

ENVIRONMENTAL INSURANCE AGENCY Larchmont, NY

Founded in 1997 by Susan Neuman, Environmental Insurance Agency [EIA] was the first boutique brokerage to provide tailored coverage for contaminated property transactions.

EIA offers site pollution liability, cleanup cost cap, contractor’s pollution liability, tank insurance, environmental commercial packages and risk management options.

DCINSURERS MOUNTAIN

ENVIRONMENTAL INSURANCE AGENCY

Denver, CO

Portland, OR

DCInsurers Mountain, formerly Mountain Insurance, has been servicing individuals, businesses and organizations in Denver for the past 17 years. Their specialty in Colorado pollution and environmental liability coverage is key for businesses with operations that may pose a threat to the environment.

Environmental Insurance Agency offers environmental contractor’s pollution liability, storage tank pollution liability, fire and water restoration programs, hazardous materials liability, and other programs tailored to the environmental sector.

CLARKE & SAMPSON Alexandria, VA

Clarke & Sampson was established in 1946 as F.W. Clarke Company and served as a local insurance agency primarily providing home and auto coverage. Today, Clarke & Sampson is licensed in all 50 states and provides specialty environmental site liability coverage that protects commercial operations from potential environmental liabilities. President Tim Geary joined Clarke & Sampson in 1976 and was tasked with growing the commercial real estate side of business.

TRANSPORTATION CONSTRUCTION ENVIRONMENTAL INSURANCE SERVICES Staten Island, NY

Transportation Construction Environmental [TCE] Insurance Services is an independent insurance agency that focuses on reducing risk in the recycling and environmental industries through their offerings of pollution liability, transportation coverage, product pollution coverage, environmental impairment liability and more.

40

LEGENDS ENVIRONMENTAL INSURANCE SERVICES

MILLS ENVIRONMENTAL INSURANCE SERVICES Suwanee, GA

Mills Environmental Insurance Services specializes in insuring commercial contractors and consultants in the highhazard environmental and renewable energy sectors. Mills provides coverage for all phases of renewable energy projects, from development to commercial operations, including builder’s risk, ocean marine transit, mechanical breakdown and more. President Patricia Mills has more than 30 years of insurance industry experience and has held various positions on both the corporate and agency side.

EMPIRE WEST INSURANCE SERVICES

Aliso Viejo, CA

Citrus Heights, CA

Legends Environmental Insurance Services has specialized in environmental insurance and hard-to-place risks since 1986. Legends provides coverage for businesses with any type of environmental exposure – programs include abatement contractors, site pollution, property transfer, landfill operations, closure/post closure, remediation cost cap, recycling facilities, waste transporters and more. “One of the challenges that we find with quite a bit of our book of business is for contractors who specialize in asbestos, lead or mold remediation,” says pollution specialist Jennifer Sterling.

Empire West Insurance Services is a commercial-only specialty brokerage that focuses on serving the insurance needs of the environmental industry.

Their specialty pollution liability program protects environmental, nonenvironmental, farm and transportation firms against the accidental release of pollutants. Empire West is licensed in all 50 states. Jeff Kortan has been president and CEO of Empire West since 2006 and is a designated Construction Risk Insurance Specialist.

ISU ENVIRONMENTAL INSURANCE El Dorado Hills, CA

A commercial and environmental coverage expert for more than 20 years, ISU Environmental Insurance has relationships with more than 400 carriers and is licensed in all 50 states. Their coverage offerings include environmental loss and insurance, commercial general liability, property, mobile equipment, life and disability, and cyber risk.

BONDING AND INSURANCE SPECIALIST AGENCY Orland Park, IL

Bonding and Insurance Specialist Agency [BISA] has more than 27 years of insurance experience in the environmental and restoration industries. BSIA’s specialty lines of insurance include environmental contractor’s insurance, fire and water restoration contractor’s insurance, as well as general liability coverage and surety.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 40

19/04/2016 10:40:23 PM

US

SPECIALTY BROKERS 2016

EQUINE

LAUREL FOWLER INSURANCE BROKER

BLUE BRIDLE INSURANCE AGENCY

Laurel Fowler offers equine insurance products for all breeds of horses, as well as horse farms, stables, trainers’ liability, and club and horse show liability. Fowler has been an insurance broker since 1986 and has extensive experience in the equine industry. As a horse owner, she understands the importance of obtaining appropriate equine insurance coverage.

Blue Bridle has specialized in equine insurance since 1982. When it was founded, medical coverage for horses was very limited. Blue Bridle worked closely with a team of insurance professionals and veterinarians to help develop medical coverage tailored to the needs of the equine industry. Today, Blue Bridle offers policies for horses and horse farms, as well as equine liability coverage. Blue Bridle’s insurance team members all either own horses, compete in horse shows or have obtained degrees in equine studies, making them well-versed in the equine industry.

Arroyo Grande, CA

BROADSTONE EQUINE INSURANCE AGENCY Middleburg, VA

An equine insurance specialist, Broadstone Equine Insurance Agency protects their clients’ equestrian investments through their horse insurance program. Coverage options include full mortality, major medical/surgery coverage, and stallion accident, sickness and disease coverage.

Broadstone also offers equine business programs for horse shows and events, and equestrian clubs and associations, as well as private horse owner’s liability and care, custody and control insurance.

Pittstown, NJ

JACOBI GROUP Cottonwood, AZ

Jacobi Group has offered coverage for horses and all horse-related businesses, as well as outfitters, guides and high-risk recreation, for the past three decades.

Lines of coverage include horse mortality, equine medical and surgical, and equine business liability. Owner Ruth Jacobi grew up competing in Junior Jumpers and continues to raise horses today.

FINE ART/JEWELRY

JEWELERS SPECIALTY INSURANCE SERVICES Los Angeles, CA

Jewelers Specialty Insurance Services [JSIS] was founded in 1995 as a response to consumer demand for fine art and personal and commercial jewelry insurance services. JSIS’ commercial policies cater to jewelers, dealers, auctioneers, art galleries, pawnbrokers, museums, armored car companies and more. JSIS offers exhibition insurance services, high-value transit insurance and prize insurance policies.

Personal policies include coverage for personal collectibles, sports memorabilia, fine art, jewelry and gold bullion.

HUNTINGTON T. BLOCK INSURANCE AGENCY Washington, DC

Established in 1962, Huntington T. Block [HTB] is the nation’s largest and oldest fine art brokerage and is credited with creating the original ‘all risk, wall-to-wall’ fine art insurance policy. HTB offers lines of insurance for museums, commercial galleries, private collectors, consultants, auction houses, artists, antique dealers, shippers and packers, conservators, and more. HTB also provides a specialty a musical instrument insurance program.

The agency has worked closely with organizations such as the American Association of Museums, American Federation of the Arts, the Art Dealers Association and the National Endowment for the Arts for their insurance needs.

Since 1991, HTB has been an operating unit of Aon Corporation. President and CEO Joseph Dunn has led HTB since 2006 and has been with Aon Corporation for almost two decades.

FLATHER & PERKINS Washington, DC

Founded in 1917, Flather & Perkins specializes in both personal and dealers’ fine art insurance for corporate collections, galleries, exhibitions, museums and antiques. They have created programs for the Antique Tribal Art Dealers Association, Antiques Council, Antique Dealers’ Association of America and more. Flather & Perkins works with some of the best-known insurance carriers in the industry, including Progressive, The Hartford, Chubb, AXA Art and AIG.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 41

41

19/04/2016 10:40:29 PM

FEATURES

COVER STORY: THE SPECIALISTS FRANCHISES

AMERICAN FRANCHISE SPECIALIST AGENCY Huntington Station, NY

Franchises have turned to American Franchise Specialist Agency [AFSA] for more than 35 years to get specialty franchise insurance. AFSA first opened its doors in 1989 with an account with McDonald’s. Currently, AFSA is licensed in all 50 states and insures more than 100 different franchises, including Taco Bell, Dunkin’ Donuts, Subway and Burger King.

HEALTHCARE

THE MGIS COMPANIES Salt Lake City, UT

For 45 years, MGIS has focused on building, managing and servicing specialized programs for medical professionals. MGIS partners with A+-rated insurance carriers to provide group disability and life, as well as medical professional liability insurance for medical groups of all sizes and specialties.

MGIS also offers Surgi-Protect, a safety/risk mitigation package designed specifically for bariatric and general surgeons.

SEACREST PARTNERS Savannah, GA

Established in 2006, Seacrest Partners offers insurance products for a wide range of commercial and individual clients, with specialties in key industries, specifically healthcare. “Seacrest Partners has a deep specialty in the world of healthcare, from hospital facilities, surgery centers and large doctor groups to individual practices,” says president David Paddison. “This specialty exists both in the property & casualty space as well as in the world of employee benefit consulting.” Seacrest Partners has relationships with major insurance markets, both in the US and abroad.

SCHAEFER ENTERPRISES New York, NY

Schaefer Enterprises offers specialty lines of insurance for the supermarket, contractor and healthcare industries, specifically urgent care facilities. “We identified a need that was going unfulfilled in the insurance marketplace for healthcare facilities,” explains president Gregory Schaefer. “After thoroughly researching it, we learned that even those few markets that were providing some coverage [for urgent care facilities] were pricing it as if it were an emergency room. We saw an opportunity for excellent coverage at a much lower price that would be attractive to both the insurance companies and urgent care facilities.

This niche has been so successful that we are now the number-one writer of urgent care facilities in New York.”

42

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 42

19/04/2016 10:40:34 PM

US

SPECIALTY BROKERS 2016

HOSPITALITY

BENCHMARK INSURANCE GROUP OF TEXAS

COMMERCIAL INSURANCE SPECIALISTS

Benchmark Insurance Group has served niche insurance markets since 2008, specializing in industries such as oil & gas, real estate, healthcare, transportation, and food & beverage. The agency’s team of producers is spread across offices in Houston, Austin and Clear Lake.

Benchmark Insurance Group represents more than 75 carriers in order to provide industry-specific risk control for all restaurant types. President Jivar Foty has more than 10 years of experience in the insurance industry and previously served as president at Houston-based construction company Rise Construction.

For 25 years, Commercial Insurance Specialists [CIS] has provided property & casualty insurance and risk management solutions to individuals and business throughout Florida. Among its various specialty programs tailored for different industries, CIS offers a comprehensive program for the hospitality industry. CIS works with a group of carriers in order to customize insurance programs for hotels, sports bars, neighborhood delis and more. The insurance team at CIS is led by managing director Tim Salzsieder, who assumed the position in 2011 after a stint at Liberty Mutual.

Lutz, FL

Houston, TX

CBIZ INSURANCE SERVICES Bozeman, MT

CBIZ is the largest insurer of inns and vacation rentals in the US through its hospitality and recreation insurance programs. “We saw a need for a liability and property coverage for vacation rentals and short-term rentals on an annual policy,” says Jim Sattler, president of programs at CBIZ. “Many of these homes were insured for personal use, and they had a business exposure, which is oftentimes excluded.”

This discovery resulted in partnerships with various groups and the creation of CBIZ’s specialty program for vacation rentals. In addition to inns and vacation homes, the program also caters to outdoor recreation companies and wineries.

Saving the Chemical Industry Money on their Insurance Premiums Consumer Specialties Insurance (CSI) is an exclusive Risk Retention Group providing agents with specialized and unique coverage for their chemical specialty industry and chemical distributor clients.

Program Highlights Ø Commercial General Liability & Umbrella (including Products Coverage); Ø Limits Available up to $10,000,000; Ø Minimum Premiums Starting at $5,000; Ø Increased Limited Pollution Coverage (available up to $1,000,000); Ø Increased Product Withdrawal Expense Coverage Limit; and Ø Inclusion of Hired Automobile Physical Damage coverage.

Our recently expanded BROADENING ENDORSEMENT includes blanket waivers of subrogation, blanket additional insureds, product withdrawal expense, and many other exclusive offerings.

View our website (www.csiplus.com) for our PROGRAM APPLICATION, FAQ PAGE, PROGRAM BENEFITS AND E-BROCHURE. CSI is the chemical industry’s leading risk retention group, providing chemical manufacturers and distributors with a financially stable source of liability insurance for over 25 years. We are the exclusive partner of The Consumer Specialty Products Association (CSPA - www.cspa.org), the industry’s leader for education and legislative advocacy. With membership in the CSPA, you can offer your insureds participation in CSPA’s Product Care stewardship and best practices program. CSI Policyholders that participate receive additional premium discounts.

CSI is endorsed by CSPA and administered by Ames & Gough.

Contact Ames & Gough at 703-827-2277 or email us at csiplus@amesgough.com for more information.

8300 Greensboro Drive l Suite 980 l McLean, VA 22102 l www.amesgough.com

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 43

43

19/04/2016 10:40:42 PM

FEATURES

COVER STORY: THE SPECIALISTS HOSPITALITY

MORRIS & REYNOLDS INSURANCE Miami, FL

Morris & Reynolds has been in business since 1950, and the Reynolds family has been in the insurance industry for more than a century. Based in South Florida, one of the nation’s hottest hospitality markets, Morris & Reynolds has specialized in the sector since its inception. The agency offers policies for hotels, bed & breakfasts, gaming, timeshares, catering companies and many more. “Tourism is as vital to Florida as our sandy beaches and abundant sunshine are beautiful,” says president and CEO Robert Reynolds. “The entire team here at Morris & Reynolds takes great pride in insuring hospitality risks all over the state, including some of the world’s most renowned resort destinations, restaurants, important museums, entertainment and amusement complexes, as well as historical landmarks.”

BAR & RESTAURANT INSURANCE Phoenix, AZ

Bar & Restaurant Insurance was founded in 2005 by David DeLorenzo to cater to the insurance needs of bars, pubs, breweries, fast food restaurants, fine dining establishments, coffeehouses, catering businesses and more throughout the Southwest. In 2010, DeLorenzo was a recipient of the Volunteer of the Year Award from the Arizona Hotel & Lodging Association and the Arizona Restaurant Association.

HOSPITALITY INSURANCE AGENCY Las Vegas, NV

Since 1948, Hospitality Insurance Agency has provided business insurance to the hospitality and entertainment industries, including nightclubs, bars, restaurants, hotels and gentleman’s clubs. Pike Barber, the grandson of the agency’s founder, now serves as the agency’s president. Hospitality Insurance Agency specializes in all aspects of the hospitality industry, including limo and valet liability. In addition to providing insurance programs, the agency also offers employee security training, payroll services, alarms and video surveillance.

44

HENRY M. MURRAY AGENCY

THE MALLORY AGENCY

For more than 130 years, Henry M. Murray Agency has offered comprehensive hospitality insurance programs in addition to various lines of commercial and personal coverage. Henry M. Murray works with hotels, motels, inns, bed & breakfasts and other hospitality operations throughout the state of Maryland. President David Kolb has been with the agency for almost four decades and has served in his current role since 2000. Though Kolb handles all forms of insurance, his specialty lies in commercial accounts.

The Mallory Agency is an independent property & casualty insurance broker that has been in business for nearly 110 years. With specialties in various niches including nonprofits, healthcare, real estate, transportation, hospitality and others, Mallory Agency offers risk solutions through partnerships with multiple carriers.

Their hospitality program offers insurance solutions to restaurants, bars, hotels and more, with policies tailored to the hospitality industry such as risk control, liquor liability, guest property coverage, innkeeper liability and property insurance.

Annapolis, MD

TRIGEN INSURANCE SOLUTIONS Boca Raton, FL

LaGrange, GA

WHITE & COMPANY INSURANCE Santa Monica, CA

Trigen Insurance Solutions has offered tailor-made programs to various industries for more than a century. Trigen’s specialty programs include construction, healthcare, real estate and hospitality. The hospitality program offers property & casualty insurance that is designed specifically for restaurants, bars and taverns. CEO Carla Busick was formerly a professional employer organization specialist at Guarantee Insurance Company.

Established in 1952, White & Company specializes in hospitality insurance through their Premier Hospitality Insurance division. Comprehensive custom hospitality programs offered by Premier Hospitality Insurance include event cancellation, liquor liability, cyber liability and environmental liability for hotels, restaurant, bars, social clubs and other hospitality industry operations.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 44

19/04/2016 10:40:48 PM

US

SPECIALTY BROKERS 2016

INTERNATIONAL TRAVEL

LANDSCAPERS

GOOD NEIGHBOR INSURANCE

TANNER INSURANCE AGENCY

Good Neighbor Insurance [GNI] specializes in health insurance and emergency evacuation coverage for international travelers, nonprofits and NGOs. Founded in 1997, GNI also offers a wide variety of insurance products for tourists, businesses operating abroad, newlyweds on honeymoons, parents adopting internationally, missionaries and churchbased short-term teams, and music groups/bands on tour overseas. Currently, the agency provides group insurance for more than 80 international companies and about 100 more that have short-term teams abroad. Founder and president Jeff Gulleson spent 30 years in Indonesia working for an NGO before returning to the US and establishing his agency.

Formed in 1984 by farm insurance specialist Bruce Tanner, Tanner Insurance Agency is an independent agency offering specialty niche products for classic cars, power sports, watercraft, veterinarians, farmers, landscapers and snowplows. The agency’s New Yorkbased landscaping insurance program provides single landscapers and landscaping businesses with coverage for employees, equipment and customer property.

Gilbert, AZ

Madison, NY

LAWYERS

THOMPSON FLANAGAN Chicago, IL

Doug Thompson and Larkin Flanagan formed Thompson Flanagan in 2004 to specialize in lawyer’s professional liability insurance, representing all types of law firms, from midsize regional firms to boutique firms.

MARINE

SMITHWICK & MARINERS INSURANCE Falmouth, ME

BALDWIN KRYSTYN SHERMAN PARTNERS

Smithwick & Mariners Insurance was founded in 1987 by Stephen Smithwick and Howard Clarke to service the marine industry, including marinas, yacht clubs, boat builders, fishing vessels, tug operations and yachts.

With a staff of more than 20 marine insurance experts, Smithwick & Mariners serves individuals and business throughout the US, with offices in Maine, New Hampshire and Massachusetts.

Tampa, FL

Baldwin Krystyn Sherman Partners is one of the largest privately held firms in Florida and offers a variety of specialty industry solutions, including marine insurance. BKS Partners’ various lines of marine coverage include navigation, pollution, war and confiscation, crew liability, and fine art. Founding partners Lowry Baldwin, Elizabeth Krystyn and Laura Sherman combined their experience in commercial insurance, risk management, employee benefits and private risk to create the eponymous firm in 2006.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 45

45

19/04/2016 10:40:56 PM

FEATURES

COVER STORY: THE SPECIALISTS MARINE

46

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 46

19/04/2016 10:41:01 PM

US

SPECIALTY BROKERS 2016

SERVCO PACIFIC INSURANCE Seattle, WA

Servco Pacific Insurance started off as Servco Insurance Services in 1961, primarily serving the Hawaiian insurance market. The agency opened an office in Seattle in 2010 under its current name, focusing on providing insurance products to marine-related businesses. Managing partners Graham Gardner and Trond Bodal both have more than 30 years of experience in insurance and marine-related businesses.

Due to the prominence of commercial marine operations in the Pacific Northwest, Servco’s marine program is able to service a wide range of marine operations both domestically and internationally. According to Gardner and Bodal, “Marine insurance is very international. We routinely deal with markets across the US and Canada, London, Scandinavia, France, Italy, the Netherlands and Japan. With the international aspect comes time zone management. We may call an underwriter at 11 p.m. or at 6 a.m., depending on where they are located.”

WALLACE WELCH & WILLINGHAM St. Petersburg, FL

The marine insurance experts at Wallace Welch & Willingham provide insurance programs for nearly every type of watercraft and to protect businesses from any marine-related risks. The agency also focuses on providing adequate coverage to boat and yacht owners, ensuring that clients are properly covered for hurricanes and other marine threats.

ANCHOR MARINE UNDERWRITERS Mercer, WA

Anchor Marine Underwriters specializes in marine policies for boat owners, commercial vessels and marine-related businesses, as well as personal lines of insurance. Since 1989, Anchor Marine has dedicated their marine insurance expertise to insure everything from cruisers and sailboats to ski boats and mega yachts.

President Dave Kauffman has more than 22 years of insurance experience and has been with Anchor Marine since the early 1990s. Anchor Marine’s ‘fishing expert,’ vice president Peter Ricks, has a background in marine finance, served in the US Navy for 13 years and regularly writes articles for West Coast fishing publications.

KOLISCH MARINE INSURANCE Coral Gables, FL

Miami-based Kolisch Marine Insurance represents several of the major yacht and marine underwriters in the nation, including Progressive, Chartis, Seaworthy Insurance Company, Fir Insurance Co. and more. Owner and president Joe Kolisch has more than 30 years of experience as a yacht insurance broker and founded Kolisch Marine Insurance in 2010.

Previously, he spent 12 years with USI Insurance Services as vice president of marine insurance products. A Miami native, Kolisch grew up sailing in Biscayne Bay, the Atlantic Ocean and Caribbean Sea. Kolisch is on the Marine Council of Miami’s board of directors, is an active member of the Florida Yacht Brokers Association and a member of the Mariners Club, and is a licensed US Coast Guard captain.

STRICKLAND MARINE INSURANCE Charleston, SC

Owned and operated by boat owners, fishermen and marine professionals, Strickland Marine Insurance has navigated the marine insurance market for 28 years and is one of the largest marine-specific insurance agencies in Southeastern US. Currently, Strickland Marine insures more than 70 marinas and thousands of boats and yachts throughout the Southeast.

Former charter boat owner and captain George Strickland opened his first insurance agency in the 1960s after graduating from the Citadel. In 1986, he combined his passion for fishing and his insurance experience to establish Strickland Marine.

NBOA MARINE INSURANCE Sarasota, FL

NBOA Marine Insurance is one of the largest boat insurance agencies in the United States, working closely with an array of A-rated carriers to provide the best marine insurance coverage in partnership with the National Boat Owners Association.

Their lines of coverage range from jet ski and powerboat insurance to inland and Bahamas coverage.

BRUCE V. SCHNEIDER ASSOCIATES Middle Island, NY

Bruce V. Schneider Associates has provided clients throughout the US with marine insurance for all types of personal and commercial marine risks for more than half a century. The agency provides programs for yachts, boat dealers, marinas, family cruisers, special marine events, charter boats, work boats and crews, and personal watercraft.

OCEAN MARINE INSURANCE AGENCY Warwick, RI

For nearly four decades, Ocean Marine Insurance Agency has been servicing marine insurance needs; their specialties consist of coverage for commercial fishing vessels, professional charters, passenger vessels, marinas, yachts, pleasure crafts and marine artisans.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 47

47

19/04/2016 10:41:07 PM

FEATURES

COVER STORY: THE SPECIALISTS MICROBREWERIES

SOUTHERN OAKS INSURANCE BROKERS Alpharetta, GA

Southern Oaks Insurance Brokers offers two specialty niche programs for restaurants and microbreweries, which provide a comprehensive insurance program for the growing microbrewery community in the greater Atlanta area.

Founder Taylor Fleming started Southern Oaks after spending time as an underwriter with Travelers Insurance Company in the commercial/middle market division.

MOTORCYCLES

FERNET INSURANCE BROKERS

NONPROFITS

CHARITY ONE INSURANCE AGENCY Azusa, CA

Charity One Insurance Agency was formed in 1999 and has since specialized in providing insurance programs to nonprofit and social service organizations. The agency offers all types of coverage for the sector, including business auto, property, workers’ compensation, professional liability and umbrella liability. Charity One is the appointed broker of the Nonprofit Insurance Alliance of California [NAIC], and in 2004 received the prestigious NIAC Broker Award for Largest NIAC Percentage Growth.

WALTERRY INSURANCE BROKERS Clinton, MD

Established in 1968 by Walter and Terry Coady, Walterry Insurance Brokers is a full-service brokerage with specialty programs for newspapers, film and TV producers, TV and radio broadcasting stations, and nonprofit organizations. Due to the agency’s proximity to Washington DC, which is home to more than 400 nonprofits, Walterry has been able to establish various insurance programs for nonprofits, offering policies such as D&O, event cancellation, and property & casualty coverage.

Winter Park, FL

Fernet Insurance Brokers was established in 1995 and has been serving the motorcycle and ATV enthusiast community ever since. Fernet also provides insurance for other recreational vehicles such as golf carts, snowmobiles and boats.

International travelers looking to ride a motorcycle during their visit to the US can obtain temporary insurance from Fernet to protect their motorcycles while they are in the country.

R.V. NUCCIO & ASSOCIATES Toluca Lake, CA

Rob Nuccio started R.V. Nuccio & Associates [RVNA] in 1990 with the goal of providing complete insurance services for special events and nonprofits. In the 1980s, Nuccio had created software to remove humans from the underwriting process; by the 1990s, RVNA became the first insurance agency to offer insurance products directly online. Today, RVNA insures more than 25,000 special events and 10,000 weddings annually through their WedSure division.

The agency also insures a variety of chapter-based nonprofit groups and school support groups, such as PTAs, booster clubs, chess clubs, fraternal organizations, kennel clubs and much more.

48

HEFFERNAN INSURANCE BROKERS Walnut Creek, CA

Employee-owned since 1988, Heffernan Insurance Brokers has made a conscious decision to develop formal niche programs, building their business around specialties such as nonprofits. Since writing their first church account in 1988, Heffernan’s nonprofit niche has been the largest at the agency. Currently, the agency services more than 7,000 nonprofit accounts nationwide and contributes 13% of its profits to nonprofit organizations.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 48

19/04/2016 10:41:12 PM

US

SPECIALTY BROKERS 2016

G2 INSURANCE SERVICES San Francisco, CA

Jason and Matthew Goldman and Larry Colton founded G2 Insurance Services in 2012. The Goldman brothers are the grandsons of Robert Goldman, the founder of Goldman Insurance Services, where Colton served as president for more than 15 years prior to forming G2. The brokers at G2 have decades of experience in placing insurance for both new and established nonprofits, providing coverage that includes social service professional liability, employee dishonesty, umbrella liability and volunteer/student accident insurance.

SPRAGUE ISRAEL GILES

GILLMAN INSURANCE PROBLEM SOLVERS

Founded by Dave Sprague and Mike Israel in 1958, Sprague Israel Giles [SIG] offers a full range of products to the Northwest region, but the agency’s top areas of specialty are nonprofits, naturopathic physicians, and medical and recreational marijuana businesses.

SIG regularly attends board and committee meetings to ensure their nonprofit clients are properly protected. Also, SIG’s Natural Insurance program was the nation’s first malpractice insurance plan designed exclusively for naturopathic physicians.

Gillman Insurance has been serving the metro Atlanta area for more than 20 years, specializing in insurance coverage for nonprofits. They currently serve more than 150 nonprofit organizations in Georgia. The agency was started in 1993 by Ed Gillman, a third-generation insurance professional with 30 years of insurance experience under his belt. In addition to their insurance services, Gillman is dedicated to giving back to the community with their six Gillman Giving Back campaigns.

Seattle, WA

Alpharetta, GA

MEEKER SHARKEY & HURLEY Cranford, NJ

The original Meeker Sharkey was formed more than 100 years ago and became Meeker Sharkey & Hurley in 2014 after merging with The James F. Hurley Insurance Agency. For the past 20 years, the firm has specialized in insuring nonprofits, which account for 20% to 25% of their current book of business. The agency’s nonprofit clients range from social service and mental health agencies to halfway houses and YMCA/YWCA programs. Richard Skorupski, senior vice president and lead for the agency’s nonprofit team, explains that his team’s “goes well beyond just purchasing insurance.” Skorupski and his team sit on numerous nonprofit safety committees and are actively involved in the nonprofit community, allowing them to have an in-depth understanding of their clients’ insurance and risk management needs.

HAWLEY & ASSOCIATES Bellevue, WA

Specializing in the social service, human service, nonprofit and child welfare industries, Hawley & Associates was the nation’s first insurance brokerage established with the sole purpose of serving adoption and foster care agencies, including in the sector. Hawley & Associates’ history dates back to the 1940s when founder Phil Hawley’s grandfather established a medical missionary nonprofit to serve the needs of Central America. In 2005, Hawley formed Hawley & Associates after spending 17 years in underwriting, excess & surplus insurance, and international insurance for two insurance companies. Hawley serves on the boards of several nonprofit adoption and child assistance agencies, and his agency contributes roughly $70,000 per year to support charity fundraising events.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 49

49

19/04/2016 10:41:19 PM

FEATURES

COVER STORY: THE SPECIALISTS NONPROFITS

COLORADO NONPROFIT INSURANCE AGENCY Denver, CO

The Colorado Nonprofit Insurance Agency [CNIA] was formed more than 25 years ago by the Colorado Nonprofit Association as a means of providing insurance services to their members. Now a part of HUB International, CNIA serves the nonprofit sector with commercial and benefit insurance. “Despite their diversity, nonprofits are valuable in effecting and enriching our communities every day,” says Robin Medina, CNIA’s CEO. “We view them as an important component of our society, and we take seriously our responsibility in helping them customize their insurance.”

CNIA has an exclusive arrangement with the Alliance of Nonprofits for Insurance, which allows CNIA to offer customized insurance for the sector. Previously, CNIA focused on nonprofits in the Denver metro area, but now the agency has eight offices across Colorado to serve nonprofits in different communities.

OIL & GAS

VAUGHAN INSURANCE GROUP Tulsa, OK

Vaughan Insurance Group has focused on the oil & gas industry for more than 60 years.

With access to all major oil & gas insurance markets, Vaughan can provide coverage to offshore or onshore operations of any size, including chemical suppliers, drilling contractors, pipeline contractors, trucking contractors, well servicing contractors and Tulsa, OK more. Oil & gas clients comprise about 75% of the agency’s total book of business, and most of those clients primarily operate within Texas and Oklahoma. “It is very complex, from an insurance standpoint,” says David Vaughan, principal and CEO of Vaughan Insurance Group. “There are a lot of moving pieces, and that’s what keeps it very interesting.”

The constantly changing oil & gas industry presents one of Vaughan’s biggest challenges. “There are good times and bad times, and when the prices are up and production is going quickly, that’s a challenge to keep up with your customers,” Vaughan says, adding that the oil & gas side of insurance has a “much larger swing in the pricing conditions than just the normal run-of-the-mill market.”

GREENWOOD INSURANCE GROUP Houston, TX

Founded in 1993, Greenwood Insurance Group’s specialty is their oil & gas program, which is specially tailored to meet the unique needs of this high-risk industry.

50

CRAVENS WARREN Houston, TX

Cravens Warren has been serving Texans’ insurance needs since 1946, specializing in risk management and insurance for oil & gas companies in the energy and marine sectors. Cravens Warren also has several exclusive arrangements for oil & gas risks in London. Cravens Warren is partnered with a variety of insurance providers such as Philadelphia, AIG, Chubb and more, and owner and president Mike Schneider has 40 years of experience in property & casualty insurance.

EFGI INSURANCE & BONDS San Antonio, TX

EFGI Insurance & Bonds specializes in insurance products for the energy, construction, agriculture and trucking industries. Based in San Antonio, where oil & gas is a large focus of the city’s economy, EFGI does nearly 60% of its business within that sector. The company also has partnered with the Houston International Insurance Group to create the CAA Engineered Risk Energy Program, which is exclusive to CAA member agencies in Texas.

SISK & CO. Denver, CO

Sisk & Co. has provided client-focused insurance and risk management solutions for the oil & gas industry for more than 30 years in the Rocky Mountain region and beyond. The company’s energy insurance solutions include roustabout insurance, rig insurance and hauling insurance.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 50

19/04/2016 10:41:29 PM

US

SPECIALTY BROKERS 2016

OIL PATCH INSURANCE

RECREATION

Tulsa, OK

Oil Patch Insurance specializes in offering oil & gas insurance for operators, well service contractors, consultants and engineers. A unit of Fred Daniel & Sons insurance, Oil Patch Insurance is partnered with some of the country’s leading insurance carriers, including AIG, Chubb, Travelers and Liberty Mutual. Owner Fred Daniel III is a third-generation owner of the agency and has been with the company for more than 30 years.

ENERGY INSURANCE BROKERS

EMPIRE COMPANY

With operations in more than 25 states, Energy Insurance Brokers [EIB] specializes in providing insurance products to the petroleum and transportation industries.

Some of EIB’s industry partnerships include the Empire State Petroleum Association, the New York Propane Gas Association and the Propane Gas Association of New England.

Empire Company has been around for more than a century and has specialized in insuring the oil & gas industry for the past 10 years, working with operators and contractors throughout the Western US. Many of Empire’s brokers grew up working on oilfields, further adding to their expertise in the industry.

Greenbush, NY

Rancho Cucamonga, CA

TOM C. PICKARD & CO. Hermosa Beach, CA

PUBLIC ENTITIES

ALLIANT INSURANCE SERVICES Newport Beach, CA

Alliant is one of the nation’s largest insurance brokerages. Dating back to its roots in the 1920s, Alliant’s goal was to be a specialty brokerage, offering insurance to various industries including public entities, construction, tribal nations healthcare, energy, law firms and more. CEO Thomas Corbett has been with Alliant since 1977 and launched the firm’s Newport Beach-based public entity division.

PSYCHOANALYSTS

German immigrant Emil Frenkel founded Frenkel & Company in 1878 as a marine insurance brokerage. Today, the agency remains an independent full-service

“Insurance by outdoors people, for outdoors people” is the motto of AdventSure, which offers specialty insurance programs for outdoor businesses, recreation, special events, races, guides, bike shops, ski shops and resorts. President Trevar Bennington left a ski industry job in 1996 to start a career in insurance. After spending time at Bankers Insurance, he decided to combine his insurance experience and passion for the outdoors and formed AdventSure in 2011.

In addition to providing coverage from top carriers such as MetLife, Travelers and Zurich, AdventSure donates 1% of its revenue to nonprofits that support the sustainability of recreational activities.

Sturgis, SD

Tom C. Pickard & Co. has been providing insurance policies since 1974, including specialized policies for photographers, videographers and media production businesses.

Photography and videography insurance includes everything from general liability, equipment insurance and computer coverage to office contents and furniture insurance for production locations. TCP & Co. offers policies from Mercury, Safeco, Travelers and The Hartford, among others.

New York, NY

Lynchburg, VA

LEAVITT RECREATION & HOSPITALITY INSURANCE

PHOTOGRAPHY

FRENKEL & COMPANY

ADVENTSURE

insurance brokerage and specializes in numerous business segments. One of Frenkel & Company’s more specialized areas is their psychoanalysts insurance program, which has provided insurance products to psychoanalysts, psychologists, social workers and other practitioners in the mental health profession for the past 40 years.

Leavitt Recreation and vv (part of the Leavitt Group) has specialized in insurance protection for campgrounds, resorts, hotels, bed & breakfasts, bars, restaurants and more for the past 30 years. Their top specialty is insuring RV parks and campgrounds – they insure more than 2,500 campgrounds and resorts across the country. Some of Leavitt’s unique insurance coverage lines include policies for snowmobile clubs, dude ranches, archery, trampoline parks and nudist resorts.

GLOBAL RECREATIONAL INSURANCE Traverse City, MI

Global Recreational Insurance specializes in offering insurance services to individuals within the recreation community. Their numerous lines of coverage include motorcycle, RV, marine, snowmobile, ATV and private risk insurance. Boasting more than a quarter-century of experience in recreation insurance coverage, Global Recreational Services has locations in Michigan, Washington, Florida, Virginia and Maryland.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 51

51

19/04/2016 10:41:35 PM

FEATURES

COVER STORY: THE SPECIALISTS SMALL BUSINESSES

SANTA CLAUSES

MID USA INSURANCE AGENCY Blue Springs, MO

Mid USA Insurance Agency is dedicated to servicing the greater Kansas City area with offerings for small businesses, entrepreneurs and more. “Every day is an adventure,” says president and founder Paul Smith. “As dry as the insurance business may seem to some, we enjoy the variety of risks and just the reward of taking care of our clients and their insurance needs.”

SPECIAL EVENTS

SPECIAL EVENT INS4U Dallas, TX

SpecialEventIns4U serves only the special event insurance market, covering the entire event industry, ranging from concerts and festivals to conventions, trade shows and private parties. Event insurance can include general liability, property coverage, auto coverage, liquor liability, workers’ compensation and more. The company also offers weather, cancellation, equipment and sports insurance, and all policies come from a range of carriers, from AIG to smaller regional companies.

52

KAERCHER INSURANCE Las Vegas, NV

For more than 60 years, Kaercher Insurance has served the needs of corporations, institutions and individuals, specializing in the gaming and hospitality industry and representing some of the best-known casinos and hotels in the industry. Apart from its hospitality specialty, Kaercher also offers a specially designed program for Santa Clauses.

The program was created five years ago by senior VP Steve Waters, who, after chatting with a neighbor who was a member of the Fraternal Order of Real Bearded Santas, recognized the need for a master insurance program for the national organization. The program partners with Philadelphia Insurance and offers extension options for Mrs. Clauses and assistants.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 52

19/04/2016 10:41:41 PM

US

SPECIALTY BROKERS 2016

SPORTS

WESTPOINT INSURANCE GROUP

PULLEN INSURANCE SERVICES

Chicago Ridge, IL

Ft. Worth, TX

Located in the sprawling Chicago suburbs, Westpoint Insurance Group has found itself a busy niche. The brokerage provides amateur youth and adult sports coverage for a wide range of recreation/sports organizations and special event venues throughout the US. President and CEO Terri Tomasik has been in the insurance field since 1981, starting out with industry giant AIG. She formed Westpoint in 1994 and has since grown the business to offer insurance for a wide range of sports, including dance studios, K-12 and college sports, martial arts, cheerleading and sports camps.

Since 2001, Pullen Insurance Services has placed coverage for amateur sports risks. Their programs include youth soccer, associations and leagues, camps and clinics, tournaments, sports facilities, directors & officers liability, event cancellation, cyber liability and dishonesty bond.

YOGA

YOGI CHUCK Havertown, PA

Searching for a niche more than a decade ago, Yogi Chuck owner and president Chuck Peterson decided to marry his insurance industry experience with his certification as a yoga instructor to create a specialized yoga insurance agency. Peterson’s knowledge of the discipline allowed him meet the specific insurance needs the yoga community was lacking at the time. Yogi Chuck’s studio business and instructor business insurance products offer the full spectrum of commercial general liability, tenants’ improvement, professional liability, property coverage, workers’ compensation, commercial auto and more. Peterson is still an active yoga instructor, teaching classes several times a week.

www.ibamag.com

24-53_Specialist brokers5-SUBBED.indd 53

53

19/04/2016 10:41:48 PM

FEATURES

RISK MANAGEMENT

RISKY BUSINESS The rapidly evolving nature of healthcare is forcing risk management professionals to change the way they think about and approach risk NOWHERE IS risk management more important than in healthcare, where an organization’s approach to risk will not only impact reputation, efficiency and finances, but also patients in need of vital care. In order to optimize efficiency, more and more risk management leaders in the healthcare sector are guiding their organizations through a transition from a traditional risk management strategy to an enterprise risk

54

management approach.

“Traditionally, risk management has been focused on an in-house, compartmentalized perspective around asset preservation,” explains Lisa Ramthun, vice president of risk management for St. Joseph Health. “These traditional risk identification processes are reactive and focused largely on pure risk.”

Ramthun is leading St. Joseph Health in its efforts to move to a more advanced, fully

integrated program where every person in the enterprise in considered a risk manager.

“We all manage risks in our personal lives every day,” Ramthun says. “In healthcare, we need to adopt the mindset that our caregivers are managing risks all of the time.

Healthcare in general needs to develop a risk appetite tolerance position. We want to use risk-based decision analysis for decision-making.”

www.ibamag.com

54-55_St. Joes 2-SUBBED 2.indd 54

19/04/2016 8:41:50 PM

Shifting landscape There are many drivers forcing the country’s healthcare organizations to rethink their approach to risk. The rapidly changing healthcare landscape is one key factor. For example, procedures that would previously have only been conducted in an acute care setting are now routinely being performed in outpatient settings. Also, patients now return home much sooner after procedures than in the past.

Although these changes are positive from both the cost saving and patient satisfaction

Regulatory pressure, which is consistently one of the biggest threats in any industry, is also placing pressure on risk managers to update their strategies.

“Another driver is the demand for transparency in healthcare, both in terms of outcomes and cost,” Ramthun says.

“Transparency is so important, and we truly believe in it, but it really requires risk managers to look at how we manage this type of risk in a very different way.”

Ramthun points to other important risk sets that are driving healthcare providers

“We all manage risks in our personal lives every day. In healthcare, we need to adopt the mindset that our caregivers are managing risks all of the time” Lisa Ramthun, St. Joseph Health perspectives, they create a range of risks that didn’t exist when all major procedures occurred in acute hospital settings.

“Healthcare’s reliance on complex and changing technology is also a key driver,” Ramthun says. “New technology is being developed all the time, and keeping up is expensive and difficult. Managing risks with new technology, which may not initially be known, is of great concern. We have to consider how best to manage the risk of increasingly complex technology.”

The vast array of new systems introduced into the healthcare environment in recent years also has presented risk managers with fresh challenges. Electronic medical records, medication administration records and computerized physician order entry are all examples of systems introduced to increase eff iciency and improve patient care. “All of these have taxed resources and placed added responsibilities on staff,” Ramthun says. “These systems do advance delivery of care, but, as an unintended consequence, they’ve introduced a new set of risks into the care delivery model.”

to transform their approach, including the risk of disruption to medical supply chains, preparation for pandemics, variability in care and how that results in differing patient outcomes, and the devastating effects that can be caused by a damaged reputation.

A new way to look at risk The risk management team at St. Joseph Health is consistently adding new tools and strategies to help them update their approach. A major part of this has been the introduction of a collaborative culture model throughout the enterprise that has taught leadership and management teams how to view risk differently.

“We taught them how to look at our system design and to question whether we have designed a system by default or by design,” Ramthun says. “We’ve examined whether our systems are designed in a way to produce the best results. Have we designed a system that creates a safer environment and allows the care providers to do the best they can as easily as they can?

To obtain the best results from the collaborative model, we look at the behavioral

choices people make within the system design.”

Traditional risk management models tend to place responsibility of a situational outcome on the last person involved in an event. The common maxim under this approach has been: “You were the last person there, so you must be responsible for what happened.” That viewpoint, Ramthun says, has to change. “We want to look at the people involved in events and judge the quality of the behavioral choices they made, not the outcome,” she says. “The question needs to be: ‘What was the quality of the behavioral choice that was made?’”

Ramthun says that if a mistake is caused by human error, the person who made the error should be consoled and supported.

“We provide coaching so that we can help the person better understand why they made an ‘at-risk’ choice and what better choices they could have made,” she says.

“Regardless of a good outcome or a bad outcome, we’re looking at the consequences of behavioral choice. It’s an important tool in our risk management approach.”

The team at St. Joseph Health also has introduced tools to help to standardize processes around critical investigation and root cause analysis. “These tools, and tool kits, decrease variability and increase standardization so that we have better results,” Ramthun says.

For quality of care to increase across the industry as a whole, it’s essential for healthcare organizations to transition to an enterprise risk management model. An industry-wide change in how risk is viewed would play a significant role in helping healthcare professionals deliver the best quality care that they possibly can.

Ramthun believes that, if approached properly, a change in risk management strategy presents a massive opportunity.

But first, the whole industry needs to be prepared to learn new ways of doing things.

“Gaining skills and knowledge in order to be in a position to respond to existing and emerging risks in a holistic manner is what we need to be focusing on as risk managers in healthcare,” she says.

www.ibamag.com

54-55_St. Joes 2-SUBBED 2.indd 55

55

19/04/2016 8:41:55 PM

FEATURES

PROFESSIONAL LIABILITY

Protecting the professionals What’s changing when it comes to exposures confronting directors and officers – and those they employ?

THE WORLD continues to evolve, and so too does the range of exposures that corporate entities and their employees face.

As the pace of change increases, it’s imperative to understand the shifting landscape and the must-have coverages for professionals. Insurance Business America spoke to industry experts about a range of issues impacting a number of key products within the professional liability suite.

Directors & officers liability Reflecting on the regulatory landscape, Alex Jezerski Jr. of RT ProExec says the most worrisome trend facing directors and officers this year is the continued vigilance of the US government in holding those individuals accountable for corporate wrongdoing. Specifically, Jezerski refers to a memo circulated by Deputy Attorney General Sally Quillian Yates to all Department of Justice attorneys last September, commonly referred to as the Yates Memo.

“The US Department of Justice has made it very clear that if a company wishes to

WHAT IS D&O LIABILITY? Directors & officers [D&O] liability insurance protects boards of directors and officers of organizations (which can include companies, nonprofit organizations and educational institutions) against claims of alleged wrongful conduct while acting as directors and officers.

56

qualify for cooperation credit in connection with a DOJ investigation, the company must be forthcoming with all facts related to any individuals involved in the alleged misconduct,” Jerzerski says.

He adds that the US Securities and Exchange Commission also remains sharply focused on targeting individual directors and officers in its enforcement actions.

“In addition to going after fraud and overt misconduct, the SEC is seeking to hold directors and officers accountable for inattention and failure to follow acceptable corporate governance protocols,” Jerzerski says.

Matt Sheehan, senior vice president of financial services for Worldwide Facilities, says the potential impact of the Yates Memo is something he’s discussing with clients.

“I think the burden of proof to go after individual directors and officers and managers of companies is going to be lessened, and it’s going to be a more common strategy for regulators,” Sheehan says. “When regulators go after individuals and their

business decisions, the plaintiff’s bar takes notice. Usually, there’s litigation to follow.”

Sheehan also highlights the rising number of actions under the False Claims Act, targeting companies attempting to defraud the US government.

“If a director is running a business that provides services or products to the US government, the likelihood that an investigation or action [will be] brought against them is certainly heightened,” he says. “Most people think that that’s just in healthcare billing and reimbursement, but we’re seeing

“In addition to going after fraud and overt misconduct, the SEC is seeking to hold directors and officers accountable for inattention and failure to follow acceptable corporate governance protocols” Alex Jezerski Jr., RT ProExec

www.ibamag.com

56-59_Ad Led Professional Liability 2-SUBBED2.indd 56

19/04/2016 9:32:00 PM

WHAT IS E&O INSURANCE? Errors & omissions [E&O ]insurance protects professionals against negligence claims and claims of failing to perform (or making an error) in providing their professional advice and services.

it across private entities that provide services to the government.”

Sheehan says another regulatory shift gaining momentum is the use of the Americans with Disabilities Act to pursue actions against website operators.

Blind or deaf people need reasonable accommodations to a public website, should it be closed captioning or audio descriptions of pictures or help in entering credit card information,” he says. “So companies are spending a lot more money to make their websites accessible to all.

But we are seeing plenty of actions along these lines, and the plaintiff’s bar has taken notice.”

As for what separates the best D&O liability products in the market from the rest, Jezerski emphasizes the importance of structuring the policy to provide appropriate coverage for government actions and investigations.

“Generally speaking, D&O policies have improved steadily in this regard since 2010,” he says. “But there are still significant differences in coverage from policy to policy.”

Sheehan advises watching out for antitrust exclusions. “Claims by competitors in the United States tend to be fertile ground for D&O claims in the private company space, and the absence or addition of an antitrust exclusion is a big differentiator,” he says.

“We saw carriers pull back on that in the past

tremendous luxury to the insured – not only in not having to pay those costs, but also setting a defense strategy that makes sense because they aren’t trying to get out of it for a minimal cost. They have time to actually formulate a strategy that makes sense for the long run for them and their business and their reputation.”

Sheehan believes that, in the coming years, pre-claims assistance will also differentiate D&O products.

“We have a lot of carriers that try to not call a letter or a demand a ‘claim’ so they can avoid providing defense costs, which is the opposite of what we want them to do and the opposite of what they want to do, I think,” he says. “I think it would be better for them to just affirmatively cover pre-claim defense costs where they can get in early, set a strategy, and do some preliminary discovery or fact-finding that’s going to help their case, both helping the insured and the insurer.

“I would expect insurers to come out with affirmative pre-claim assistance and

“As large technology companies move into new areas of services, they often encounter legal issues that are new and untested. This is a trend that will only continue” Mickey Estey, RT ProExec couple of years.

“The defense costs allocation provision in a private company form is also very big,” he adds. “If a portion of a multiple-allegation claim is covered, there still are a vast number of carriers that will pay 100% of defense costs for an individual insured, which is a

really enumerate the services that they will provide. It will encourage insureds to report claims faster, as well as, I think, it’ll just sell in the marketplace, and the insured’s and the carrier’s interests are aligned in this area. So I would expect more robust endorsements to manifest themselves.”

www.ibamag.com

56-59_Ad Led Professional Liability 2-SUBBED2.indd 57

57

19/04/2016 9:32:08 PM

FEATURES

PROFESSIONAL LIABILITY Errors & omissions Which professions should pay extra attention to their E&O exposures in 2016?

“Large technology companies continue to see many unique claims and will be paying extra attention to exposures related to data privacy, cyber attacks, the Telephone Consumer Protection Act, social media content and intellectual property,” says Mickey Estey of RT ProExec.

“We are seeing this ref lected in the increased insurance limits purchased by many technology companies,” he continues.

“With so many technologies being provided on a cloud basis, the exposures are significant for both the large technology companies providing those services, as well as the businesses that are relying on those services on a growing basis for those core functions. As large technology companies move into new areas of service, they often encounter legal issues that are new and untested. This is a trend that will only continue.”

Sheehan cites oil & gas consultants as another category of professionals who should

“There’s stronger language in that fiduciary rule that those individual advisors have to represent the client’s best interests and they really need to show that there’s not a conflict of interest by putting an investor in an investment with a higher cost structure and higher fees in it,” he says. “With that rule coming out, one can only assume that the plaintiff’s bar is going to take notice. They usually follow the regulators and find negligence within those rules and pursue private courses of action. I think a lot of folks in the investment community and the retirement planning benefits community are taking notice and trying to provide proper communication to avoid regulatory action and lawsuits.”

And then there’s contractors’ E&O. “More and more, we’re seeing contractors being required by contract to carry contractors’ E&O,” Sheehan says. “With the way projects are delivered now, and the sophistication of the documentation software while delivering a construction project … there’s always direction and advice coming from contractors back and forth. That advice can easily be construed

“I think it’s common knowledge now that cyber privacy exposures and risk are a boardroom issue, not just the purview of your chief information officer or IT department” Matt Sheehan, Worldwide Facilities contemplate a heightened focus on their E&O exposures. “Any sector that’s had a downturn … generally is going to see a spike in claims activity because people are looking for the deep pocket. The oil & gas industry generally is full of speculators with a healthier risk tolerance, and they’re generally not litigious. But we would figure that, at some point, some of these bankrupt entities may look to point the finger. Even if the business owner that failed is not ready to point the finger, some bankruptcy estates may do so.”

Beyond oil & gas, Sheehan talks about investment advisors, who will be affected by a new Department of Labor fiduciary rule.

58

as advice that requires expertise, and it really can’t be confused with the actual swinging of hammers or the construction means and methods, which would fall under a GL policy. I think we’re just going to keep seeing a spike in claims, and I don’t think contractors are going to be able to avoid buying coverage.”

Finally, Sheehan mentions managed care as another industry with the potential for increased E&O exposures.

“With healthcare distribution changing in our country and public groundswell trying to find ways to cut costs in healthcare, any firm that’s in that chain of managing the cost or distribution of healthcare … [has] to be

WHAT IS FIDELITY INSURANCE? Fidelity insurance is designed to protect an employer against losses directly resulting from an employee’s dishonesty (including theft and embezzlement). concerned that they are going to be under a regulatory microscope and also be subject to antitrust suits from competitors or regulators.”

Fidelity insurance “[Fidelity insurance] provides coverage not only for employee theft, but also for theft committed by a third party, both of which are real risks,” says Rachelle Rebick of RT ProExec. “The importance of this kind of protection is increasing because people are always finding new and creative ways to commit the theft or fraud. Technological advances have also helped provide new ways for individuals – or groups of individuals – to commit theft against their employer or another third party.”

A key example of an emerging risk in the fidelity space is impersonation fraud, also known as social engineering fraud.

“This type of fraud is a scheme to obtain funds of the company by an individual purporting to be a vendor, client or executive of the company,” Rebick explains. “The fraud typically occurs over the phone or in an email. As a result of the significant amount of data about companies and executives on the internet, criminals are easily able to gather information and construct convincing stories, making this type of fraud difficult to prevent, even with the proper controls in place.”

Cyber risk According to Mickey Estey, cyber risk exposure for professional firms is growing rapidly as it relates to data privacy.

“Many classes of professionals have always had a cyber risk exposure. This includes healthcare, attorneys, accountants and other financial professionals,” he says. “The thing that has changed is these types of firms are being targeted at a much higher rate and sophistication because the hackers have

www.ibamag.com

56-59_Ad Led Professional Liability 2-SUBBED2.indd 58

19/04/2016 9:32:16 PM

“Technological advances have helped provide new ways for individuals – or groups of individuals – to commit theft against their employer or another third party” Rachelle Rebick, RT ProExec recognized that many professionals have what they would consider to be a gold mine of confidential information on individuals that can be sold in the criminal underground.”

Estey says there’s been an increase in many types of phishing, ransomware and other social engineering attacks against these firms.

“Recently, during tax season, many firms have been hit with W-2 scams, where the hackers send fraudulent emails to try to induce companies to send the W-2s on employees.”

Today, it’s imperative that cyber risk is on the radars of those charged with running companies. “I think it’s common knowledge now that cyber privacy exposures and risk are a boardroom issue, not just the purview of your chief information officer or IT department,” Sheehan says. “The SEC has supplied guidelines along those lines, which trickle down through the public and private sector.

The risk of cyber and privacy exposures to a company’s balance sheet, their reputation and, ultimately, to losing customers and revenue sources is huge.”

Sheehan says there’s been a disturbing trend among private D&O insurers to add a broad-based cyber network security exclusion to a D&O policy. He says that while the direct costs of a data breach or network security event should be borne by a cyber policy, any subsequent claims by investors, creditors or other stakeholders against management for any failure to manage a company properly – which led to the cyber attack – should be covered under the D&O policy.

“While … it’s okay to have that exclusion, we want to limit its scope,” he says.

On cyber risk and E&O, Sheehan says there’s a perception among professionals that their E&O policy will cover them for any failure to protect confidential information.

“Even if an accountant or an attorney makes the argument that the breach of privacy occurred while providing professional services to that client, there are first-party costs that are expected of that professional firm that don’t meet the definition of a ‘claim’ in an E&O policy,” he says. “So those first-party costs would be borne by the organization. Also, the experts that a cyber policy can put into place, and the speed with which they put them into place, can lessen a lot of reputational damage to that firm, as well as hastening a solution to the problem, which the E&O policy will not respond to.”

In other words, cyber coverage is crucial.

“A breach or a network shutdown is a huge threat to a company’s reputation and, ultimately, their balance sheet,” Sheehan says.

“When a company’s balance sheet and their reputation are harmed, that has a spill-over effect to employee retention, employee hiring and firing – which can hit an employment practices policy – [and] it has spill-over effects for investors, creditors and regulators, which could be the subject of a D&O policy.

“Ultimately,” he continues, “it’s going to affect the organization’s health and risk management practices, which can spill over into any sort of liability exposure that the entity may have. So, the initial problem of a breach or a network interruption can be picked up by a cyber policy, but the follow-on reputational damage and spill-over effects are hard to enumerate.”

Client conversations Given these shifting exposures, brokers need to initiate conversations with their clients to ensure they’re able to organize appropriate insurance for those clients’ exposures. So what shape should that discussion take?

CYBER INSURANCE FAST FACTS

$2 billion

Amount of total annual cyber premiums in 2015

$20 billion

Amount annual cyber premiums are expected to reach by 2025

$350 to $400 million Available cyber limits in the marketplace Source: Willis Marketplace Realities 2016

“Have a casual conversation with your insured about how they actually make money and who they interact with to meet their goals of making money and servicing their clients and, ultimately, providing a good place for their employees to work,” Sheehan advises.

“Once that conversation happens, you can find out who they actually interact with and what problems can arise.”

Estey recommends having an ongoing conversation “as companies change their services, offer new ones or make acquisitions to make sure that the professional coverage is kept up-to-date to contemplate those exposures.”

On the cyber and privacy side, he adds: “Evaluate coverage with respect to the professional policy and take the appropriate steps to add broad cyber coverage on the professional policy or add [a] stand-alone cyber policy to address the risk.”

Sheehan emphasizes the difference that can be made if those conversations begin early.

“I can’t tell you how many times I’ve had to place a policy in 24 hours because of a contractual requirement – which is fine, and that’s what I’m here to do, but if you can start early and tell a clearer story and give multiple underwriters ample time to digest the risk, quote the risk and offer their expertise, without a doubt you’re going to come back with a policy that fits the insured’s needs better and is likely a more cost-effective option.”

www.ibamag.com

56-59_Ad Led Professional Liability 2-SUBBED2.indd 59

59

19/04/2016 9:32:25 PM

PEOPLE

AGENCY INSIGHT

Thriving in a small town Broker Will Sacca chats with IBA about owning a business in a small town, the challenges of going independent and the benefits of having a good network partner at your back IBA: Tell us a little about Sacca Insurance Agency. How did you transition from being an agent for a big insurer to being independent?

Will Sacca: I started back in 2005 under­ neath my dad. We were Nationwide agents, and I was an associate agent under him. I credit everything I’ve learned to him – he had 40 years in the insurance industry.

I was there with Nationwide for about seven years. It just got to the point, four or five years ago, where we were just unable to write any new business. The rates were going through the roof. We were having home­ owner’s policies – and this is literally no joke – we were having them go from $700 or $800 per year to $3,000, $4,000 or even $5,000 a year in premium. So it just got impossible, and I made a huge decision to change over and be an independent agent.

IBA: How was that transition?

WS: I wish I’d done it from the beginning. It was a little bit tough for the first few months, but we had a lot of loyal and faithful customers who stuck by me. I’ve been in the same loca­ tion from day one. When my dad and I bought the office I’m now in, it was an independent agency. We bought it out and converted it from an independent to Nationwide. And once I made that decision seven or eight years later, we went from Nationwide back to inde­

60

pendent. Now I wish we’d never changed it and just stuck to independent.

IBA: But it must have been a bit nervewracking at first.

WS: I was a nervous wreck. It was just one of those things that I felt had to be done.

We just weren’t moving forward. We’d been constantly going backward for the past few years, and I was just tired of it. I was tired of somebody breathing down my neck: “You’ve got to hit this number; you’ve got to write life insurance.” Now that I’m independent, it’s like the reins have been let go. I’m free to do what I want, how much I want – or as little as I want, although that’s not in my vocabulary.

No one’s pushing me – I guess you could say I’m self-motivated. I couldn’t be happier than the way I’m set up now.

IBA: How has your association with Smart Choice helped the transition?

WS: When I left Nationwide, I couldn’t use any of my production, because I had to leave them cold turkey. I had to start over, so I had to go through somebody like that in order to get in the door with some of the bigger, more reputable carriers. But when you get appointed with them, you get your own code – and you only use them when you want to use them. And they’re constantly trying to find new markets. We just got appointed with another big carrier a month ago. They’re constantly trying to make it work for every­ body. So my experience with them from day one has been great.

IBA: Munfordville’s population was just over 1,600 in the 2010 census.

What’s it like being a small-town agent?

WS: My dad had his own office in Lexington, and I worked a few months up there – six months or a year or so. I’ve dealt with both the

SACCA INSURANCE AGENCY Founded in 2005, Sacca Insurance Agency offers property & casualty insurance, as well as life and health coverage, to the residents of Munfordville, a small town in central Kentucky. The Hart County seat, Munfordville had just 1,615 residents as of the 2010 census. But even in a small town, Sacca Insurance has managed to thrive. Started by Will Sacca and his father, the agency operated exclusively with one major carrier for many years. Today, Sacca Insurance Agency is an independent agency, representing more than a dozen insurance companies.

www.ibamag.com

60-61_Broker Insight-SUBBED2.indd 60

19/04/2016 9:34:15 PM

SMART CHOICE FAST FACTS Smart Choice launched in 1994 with a handful of agencies in North Carolina. Today, the network has thousands of member agencies and is supported by top national insurance companies and strong regional carriers in each state.

More than 4,600 independent agents

80 carrier partners

Serves 44 states

Added more agents in 2014 than any other managing agent group in the industry

Added more than 875 new agency partner locations in 2015

Saw nearly 15% growth in gross revenues in 2015

“The word of mouth for doing somebody right spreads a lot faster, and to more people, in a tight-knit community ...”

Plans to add an additional 1,000 locations in 2016

Has been recognized numerous times as a top agency partnership bigger city and the smaller town, and I would much rather have an office in a smaller town.

You could say there’s not as much business, but there’s not near as much competition.

And to me, it’s a different breed of people. The people up there [in the city] need everything laid out perfectly. People down here are just a

lot more laid-back, easier to deal with – and to me, the word of mouth for doing somebody right spreads a lot faster, and to more people, in a tight-knit community than it would in a bigger city. Obviously, it works for some people, but I’d much rather be in a small town.

Winner of the 2010 Managing General Agency of the Year Award from Professional Insurance Agents Arkansas

www.ibamag.com

60-61_Broker Insight-SUBBED2.indd 61

61

19/04/2016 9:34:33 PM

FEATURES

CONSTRUCTION INSURANCE

The business of building What’s the outlook for the US construction industry in 2016, and what issues are front and center for brokers in the space?

THE CONSTRUCTION economy in the US is distinctly improving, according to Aon Risk Solutions’ Surety and Construction Market Outlook for 2016.

According to the report, in September of last year, unemployment in the construction industry had dropped to 5.5%, a level not seen since the 2005–2007 boom. It’s also a stark contrast from a March 2010 low of 24.9%.

Aon’s research also found that total spending on construction has reached $1.1 trillion, up 14% on last year, but rather than indicative of a rise in margins and profits, it demonstrates a recovery of jobs and volume.

Looking forward, Aon expects sustained, moderate growth in construction markets, but for challenges to persist in terms of the level of required talent. The company also predicts international organizations will continue to invest in the US construction market with a view to gaining larger shares in ‘mega projects.’

The American Institute of Architects

62

also has forecast healthy growth levels where construction spending is concerned for 2016 and 2017. And in its 2016 Dodge Construction Outlook released late last October, Dodge Data & Analytics predicted that total US construction starts for 2016 will rise 6% to $712 billion.

As construction activity grows, along with the number of people engaged in construction projects across the country, so too will the need for coverage. According to Brian Billhartz, senior vice president of Wrap Up Insurance Solutions, the wrap-up insurance market is very active.

“We’re seeing it as a good solution to coverage issues in certain states, and we think it will continue to grow,” he says.

“There’s plenty of capacity, [and] new carriers are entering into the wrap-up market. That’s going to be a trend that I think that the construction insurance community will continue to look at.”

The emerging landscape Discussing emerging risks in the heavy

construction space, Billhartz brings up the recent finalization of a new rule from the US Occupational Safety and Health Administration [OSHA] designed to protect workers from exposure to respirable crystalline silica.

“That’s an emerging risk that I think contractors need to be cognizant of,” he says.

The rule is composed of two standards, one for the construction industry and the other for general industry and maritime. The rule mandates that a worker be exposed to no more than 50 micrograms of

www.ibamag.com

62-65_Ad Led Construction-SUBBED (1).indd 62

19/04/2016 9:00:10 PM

respirable crystalline silica per cubic meter of air, averaged over an eight-hour shift.

Previously, the permissible limit was 250 micrograms.

OSHA says 2 million construction workers are exposed to respirable crystalline silica in their workplaces and that, by limiting this exposure, it aims to curb lung cancer, silicosis, chronic obstructive pulmonary disease and kidney disease in workers. It estimates that the rule will save more than 600 lives and prevent more than 900 new cases of silicosis each year. In total, OSHA projects that the final rule will

“We’re seeing wrap-up insurance as a good solution to coverage issues in certain states, and we think it will continue to grow” Brian Billhartz, Wrap Up Insurance Solutions provide net benefits of approximately $7.7 billion annually.

But OSHA’s new rule has received a strong pushback from the construction industry. In early April, eight major

construction industry groups, including the Associated Builders and Contractors, the American Subcontractors Association and the Associated General Contractors of America, filed a petition for the Fifth

www.ibamag.com

62-65_Ad Led Construction-SUBBED (1).indd 63

63

19/04/2016 9:00:16 PM

FEATURES

CONSTRUCTION INSURANCE

DODGE CONSTRUCTION OUTLOOK FOR 2016 Last October, Dodge Data & Analytics released its 2016 Dodge Construction Outlook. In addition to predicting that total US construction starts for 2016 would rise 6% to $712 billion, it also made predictions as to specific sectors:

Commercial building will increase 11%, up from the 4% gain estimated for 2015

Institutional building will increase 9%, up from the 6% rise for 2015

Manufacturing plant construction will recede a further 1% in dollar terms, following the 28% drop in 2015 that reflected the pullback by large petrochemical plant starts

Public works will be flat with the 2015 amount Electric utilities and gas plants will fall 43% after a sharp 159% jump in 2015 – the lift seen last year from new starts for liquefied natural gas export terminals will be substantially less, and new power plant starts will decrease moderately Circuit Court of Appeals to review the rule.

The concerns of those groups are focused on the technological and economic feasibility of reducing the permissible exposure limit as proposed.

Whatever happens next, there’s no question that developments on this front, given potential ramifications for the industry, should command the attention of those in the heavy construction insurance space, along with their clients.

64

“When the market stopped in 2008–2010, when construction basically came to a halt in the United States, a lot of folks chose different careers” Brian Billhartz, Wrap Up Insurance Solutions As for other challenges in the construction space, Billhartz says, “It’s still difficult to stay on top of the different construction defect laws that are happening in some of the states.

Also, statute indemnity laws are changing in a lot of states. There’s a lot to keep up with [in] these states for the contractors working in those specific states.”

Since early 2015, there’s been an abundance of activity in a number of states – including Arizona, Colorado and Nevada – to introduce bills directed at existing construction defect laws. Driving those measures is a desire to prevent instances of allegedly frivolous litigation against builders. It’s argued that some current construction defect laws make insurance for certain construction projects more expensive or difficult to obtain at all.

So far, governors of some of the states in

question (Arizona and Nevada) have signed the relevant bills into law, while efforts to change the law continue in other states (Colorado). The passage of such laws could make insurers and developers willing to take more risks on new construction projects in those states.

Surety, talent and cranes On the subject of surety, Aon Risk Solutions reports that surety capacity commitments now exceed the $1 billion mark, and some are in excess of $2 billion. According to Aon, underwriters are remaining alert for signs of an increase in defaults.

“Subcontractors don’t default when the marketplace is down,” Billhartz says. “They usually default when things are good and they take on too much work, and there’s some rumblings about that throughout the

www.ibamag.com

62-65_Ad Led Construction-SUBBED (1).indd 64

19/04/2016 9:00:22 PM

industry of contractors trying to look at the subcontractors and their balance sheets, and making sure they’re still able to handle the work.”

Another pressing industry issue is a labor shortage. Statistics from the Department of Labor reveal that monthly construction job openings in 2015 increased 300% to 400% to approximately 135,000–170,000, which is a substantial increase from around 38,000– 65,000 in 2009. But Aon Risk Solutions reports that the talent pool is struggling to maintain its pace to meet the number of opportunities on offer. It says finding and retaining suitably skilled people to manage larger and more complex projects is challenging.

“It’s difficult in certain areas to find the skilled labor needed,” Billhartz agrees.

“When the market stopped in 2008–2010, when construction basically came to a halt in the United States, a lot of folks chose different careers.”

According to the Department of Labor’s statistics, from 2009 to 2011, 259,000 young people entered apprenticeship programs.

That figure is down from the 531,000 recorded from 2005 to 2007.

And while the issue is one for the

“It’s still difficult to stay on top of the different construction defect laws that are happening in some of the states” Brian Billhartz, Wrap Up Insurance Solutions construction industry itself, its potential impact for the insurance space is clear.

“It could have an impact because you’ve got unskilled workers out there, and unskilled and untrained usually means something’s going to get broken or someone’s going to get hurt,” Billhartz says. “And that’s where insurance would kick in.”

Another issue that’s plagued the industry for some time now is the safety of cranes, amplified in recent times by a major incident in New York. On the morning of February 5, 2016, a large construction crane came crashing down onto a street in Lower Manhattan while it was being lowered to safety during a snowstorm. Its boom landed across an intersection and stretched for most of a block. As a result of the collapse, one pedestrian was killed, three other people were injured, and the roofs of several parked cars were crushed.

PRICE PREDICTIONS FOR 2016

General liability

Workers’ compensation

Excess liability

Builders risk

Generally flat

Flat to +5%

Flat

Flat to -10%

Controlled insurance program Flat (-5% to -7% for GL only, non-condo risk)

Source: Willis Marketplace Realities 2016 Spring Update

“Obviously, the crane issue has been important,” Billhartz says.

This isn’t the only high-profile crane incident of the past decade. In 2008, crane safety came under scrutiny following the collapse of two tower cranes within the space of 10 weeks, which killed a combined total of nine people. However, the latest incident in New York has sparked a heightened level of conversation around the need to improve crane safety.

Best-in-class coverage Given these significant developments and challenges facing the construction industry in 2016 and beyond, it’s essential to ensure that construction clients have coverage that will offer ample protection in the evolving climate. So what separates the best insurance products in the heavy construction space from the rest?

“When you’re looking at insurance carriers, [it’s] obviously very important to make sure you’ve got coverage that’s appropriate for the projects of the contractors, but as important is the claims handling – how the carriers handle the claims and how they can differentiate themselves from other carriers,” Billhartz says. “That’s one area that I always see general contractors turning to … they get a comfort level with a carrier on the claims handling.”

As is generally the case when it comes to any insurance, the ability to offer adequate coverage is paramount, but the manner of response to a claim is what sets carriers apart from their competitors.

www.ibamag.com

62-65_Ad Led Construction-SUBBED (1).indd 65

65

19/04/2016 9:00:31 PM

FEATURES

TEAMWORK

The reinvention of teamwork Technology gives us the power to communicate, collaborate and learn across great divides – but ultimately, it remains a tool. The real key to 21st-century business success is teamwork, writes Graham Winter DISRUPTION IS the buzzword of business.

And why wouldn’t it be, when tech-centric companies like Amazon, Uber, Netflix and Twitter are transforming the way we shop, travel, play and communicate?

Perhaps your business is trying to disrupt itself. If not, then you can be sure that someone else’s is, and chances are they’re doing it with quite different teamwork practices than what you treat as the norm.

Is it technology that’s making the difference inside these disruptive companies? Yes, to the extent that product technology supports their exponential growth. However, inside the company, everyone has the same access to pretty much the same technology at the same time, everywhere. It’s cheap, easy to use and mobile.

And let’s remember that instant messaging, email, smartphones, video, collaboration software and the like are tools – and tools only.

Where’s the difference?

Share and share alike There’s a clue in the common purpose of many of these new technologies: to facilitate the sharing of information.

Indeed, this is exactly why the Internet was invented in the first place. Social media platforms like Facebook, LinkedIn and Twitter are popular because people like to share. We have social brains, and our evolution has programmed us to connect (because it saved our early ancestors from the disruption of saber-toothed tigers). Even Daniel Goleman,

the acclaimed thought leader in emotional intelligence, now speaks of social intelligence.

We are genetically wired to engage and share with others and, in doing so, to adapt and respond and learn, which is precisely what the disruptive teams in places like Uber and Dropbox are doing so brilliantly. And they’re doing it with the help (and at times hindrance) of new technologies.

Here are six things you can do to lead your team to be disruptors, or at least nimble adaptors.

they use to share information (the tools are very similar), but whom they share it with and what they (collectively) do with it.

Fast disruptors know that technology can be duplicated, but there is one thing that can’t be. In a disruptive world, the secret to success remains what it was thousands of years ago: the ability of people to work together toward a shared purpose. In a word, teamwork – but a more fluid and flexible style that suits a world that has seen its boundaries shatter in the face of globalization.

Technology is the vehicle. It is who you take along for the ride and how you use the technology to share the challenges and opportunities that make the real difference 1

Find the secret

We live in an age of information overload, bombarded with data 24/7.

We are most certainly sharing, and it’s on a global scale that’s faster, more frequent and, some would argue, less meaningful than ever before. The importance of focus can’t be underestimated, as we must navigate through the distraction of always being ‘on.’

The better performers in this digital world derive their focus from the core belief that it’s not so much which collaborative technology

2

Make the secret scalable

While technology and globalization continue to disrupt the business landscape, they are not reinventing teamwork in their wake, but rather scaling it as a capability and culture.

The typical company circa 2016 has people dispersed across multiple locations and issues arising at the speed of light, which is why teamwork makes the business more than the sum of its parts. Great teamwork scaled across the business makes anything possible.

66 www.ibamag.com

66-67_BizStratTeamwork-SUBBED.indd 66

19/04/2016 8:46:56 PM

as one team.

Think of a flock of migrating geese, which always fly in a V formation. Geese innately know the secret to great teamwork. They have a common destination and work in perfect unison. When a goose drops out of the V formation, it quickly discovers that it requires a great deal more effort and energy.

Geese help each other, too. When a goose gets sick or wounded, two geese drop out of the formation and follow their fellow member down to help provide protection.

They stay with this member of the flock until he or she is either able to fly again or dies.

Then they launch out on their own, creating another formation, or they catch up with their own flock.

6

This is why a national 2014 employment survey in the US, as reported by Forbes, found that the skill employers looked for in their new recruits was the ability to work in a team structure. The second most important skill was the ability to communicate verbally with people inside and outside an organization.

3

Accelerate and share the learning

Business has always been a team sport, and there are many good reasons for this; however, one now stands alone as pivotal to organization survival and success.

Business is consumer-driven (or more specifically, customer-experience-driven), which means our teams must be agile, innovative and constantly learning how to optimize that experience for a customer who has abundant choice.

Shared learning is the key, because working alone or in silos of expertise reduces learning, growth and creativity. When there is no one to challenge us, we simply don’t leverage our experience and ideas.

4

Escape the gravity of hierarchy and structure

Daniel Pink, acclaimed business thought leader, argues that we are now in the Conceptual Age, in which right-brain thinking reigns supreme. There is much evidence for this.

Pink talks of the necessity for organizational symphony: through empathy, intuition, play and meaning.

The disruptive companies are enterprises more than organizations, unencumbered by the gravity of organizational hierarchy, process and division.

They play like they’re in the Age of the Entrepreneur: risk-ready, nimble, wellconnected folk who thrive on change.

5

Harness the power of the whole team

The leaders of the most successful disruptive companies share their vision and move others to see it, too. They’re marvelous storytellers, connecting with others, who in turn connect with them. They inspire people to think as one team, to move as one team and to learn

Share the truth

The disruptors share the reality. They are not afraid of the truth. In fact, what they fear most are hidden agendas, silos and the status quo. As in professional sports, they make sure the whole team knows whether they have won or lost and why. The focus is always on what is best for the business, even if getting to the marrow of this takes some tough conversations. The leaders insist that they be challenged. They embrace feedback and tap into the power of their people, because a good idea can come from anywhere.

Make the secret yours Technology gives us the power to communicate, collaborate and learn across great divides. Very few of us do this well. To prosper in today’s markets takes real teamwork, and we are just beginning to harness technology to this end.

Beware those who see technology as an end itself. Technology is the vehicle. It is who you take along for the ride and how you use the technology to share the challenges and opportunities that make the real difference. This is what it’s really all about.

Graham Winter is the bestselling author of Think One Team. Learn more at www. thinkoneteam.com.

www.ibamag.com

66-67_BizStratTeamwork-SUBBED.indd 67

67

19/04/2016 8:47:05 PM

FEATURES

PRODUCTIVITY

Why mono-tasking is the new black

Forget multitasking – we need to narrow our focus to become more efficient and stay mentally fit, according to brain expert Dr. Jenny Brockis

SURVIVING IN the crazy, busy modern workplace has resulted in our adoption of some new strategies designed to save us time.

The problem is that no one appears to have done the necessary checks to see that these actually work. The one strategy most widely adopted has turned out to be the worst performance-enhancing strategy ever, because it requires us to use our brain in ways it wasn’t designed for.

Yes, multitasking is the biggest new brain myth on the block. It’s time to get rid of it and replace it with a far more efficient method of getting more done – mono-tasking.

Multitasking is trying to focus on more than one thing at a time. Sure, you can drink a coffee while walking along and talking to a colleague, crossing the road and taking a selfie, but you‘re not paying focused attention to any one of those things, including your colleague.

One of the reasons multitasking has become so pervasive is because everyone’s doing it, and ticking off items on our to-do lists makes us feel good – which adds to the delusion. We know using our mobile phones while driving is dangerous, yet more than 70% of us admit to doing it. We ignore the risk because multitasking has become the ‘norm’; it’s considered a basic work requirement.

We even post job listings that say that multitasking skills are desired.

Multitasking fragments our attention – a quick email response here, a two-minute conversation there. We skim information and only grab the headlines. The outcome?

The cognitive cost includes poorer memory, mental fatigue, and reduced efficiency, effectiveness– and innovation. We make more mistakes, and we miss opportunities.

Overall, multitasking puts us at increased risk of burnout, damaged relationships and

WHY MULTITASKING FAILS When we attempt to multitask, our obliging brain attempts to help by giving one task to each hemisphere. The trouble is, the brain can still only pay attention to one at a time, so the brain task switches very, very fast, giving us the illusion that we are paying attention to two things simultaneously. This can be made more obvious when we look at optical illusions.

What do you see in this picture, a native chief or an Inuit?

68

poorer performance; it’s hardly the time- and energy-saving solution we thought it would be.

What’s going on in the brain when we multitask?

One of our brain’s primary functions is to keep us safe; we scan our environment every one-fifth of a second on the lookout for changes.

The brain loves patterns and things that are familiar, because the implication is that this is a safe place. Our selective focus has developed so we pay attention to what is most important to us at any given moment while being alert to other things happening on the periphery.

When we direct our focused attention, we use part of our prefrontal cortex, the highly specialized part of our frontal lobes used for higher-order executive thoughts such as planning, organizing and regulating emotion.

This area has what can only be considered a couple of design flaws: It’s small, highly demanding of energy and can only handle a small amount of information at any one time. That’s why the number of thoughts we can hold ‘front of mind’ at any given time is around seven. As the ideas get more complex, the space available reduces. When it comes to focused attention, there is only room for one.

Multitasking is the one brain function that the more we practice, the worse we get. It has been shown that chronic media multitaskers fragment their attention so much that they perform worse even when trying to monotask.

It has been estimated that multitasking causes us to make up to 50% more mistakes and take 50% longer to complete our work, equivalent to roughly a 25% drop in

www.ibamag.com

68-69_Bizstrat Monotasking-SUBBED2.indd 68

19/04/2016 9:35:18 PM

individual productivity over the course of the day. An innocuous two-minute interruption can translate into 24 minutes before you get back to where you were before your train of thought was broken. No wonder some days we can feel we’ve gotten nothing done, yet are exhausted.

Multitasking in an organization reduces performance further – for example, when we are kept waiting for a piece of work by a multitasking colleague or need a decision to be made to move forward on a new project, so we end up starting something else.

We cannot multitask even if we are young, if we are female, if we are Clark Kent or if we like wearing our underpants over our trousers. Multitasking is multi-failing unless you happen to be one of the 2% on the planet who are supertaskers and whose performance gets better the more they multitask. (If you haven’t undergone the cognitive tests to prove it, your belief in your ability to multitask is most likely delusional – research has shown that those who believe they are really good at multitasking perform the worst overall.)

The way to get rid of multitasking is to stop doing it. But just like giving up any habit, such as smoking, it’s not always easy, especially if we are under pressure; the temptation for

the brain is to default to the survival route it thinks works best. Here are four ways to move away from multitasking:

1

Introduce mono-tasking into the workplace

While we can all try to limit our multitasking tendencies individually, the need is to reduce organizational multitasking, which has to come from the top. Making mono-tasking the preferred way of doing things gives everyone permission to follow suit.

2

Prioritize your priorities

3

Communicate your priorities

Take 10 minutes at the end of the working day to determine your top three most important and urgent tasks for the next day, and list them in order of priority. Shove everything else into a holding pen – those items can wait. The next day, start on your top priority first and don’t move to the second item until the first is completed.

In the office, make sure everyone is on the same page and knows which priorities have been agreed on so that there is no temptation to start on something else. This will boost completion rates.

4

Practice mono-tasking

Choose one activity, close the office door, switch your phone to silent, avoid all interruptions and work on just that one activity for a specified amount of time.

Mono-tasking leads to more work being completed more quickly and to a higher standard. Completing our work well feels rewarding, resulting in the brain secreting more dopamine, making us feel good and motivating us to repeat that rewarding activity. Emotions are contagious, so when we are feeling good, others will too, and the working atmosphere becomes more positive and vibrant. Being in a more positive mood opens our mind to more innovative and creative thinking – making it easier to solve more problems and make good decisions.

Working with our brain in the way it was intended is not just a better way of working; it also leads toward creating a high-performance workplace.

Dr. Jenny Brockis is a medical practitioner, specialist in the science of high-performance thinking and author of Future Brain: The 12 Keys to Create Your High-Performance Brain.

www.ibamag.com

68-69_Bizstrat Monotasking-SUBBED2.indd 69

69

19/04/2016 9:35:28 PM

PRODUCERS ON CARRIERS

WHAT DO PRODUCERS WANT? Insurance Business America is asking producers to rate their carrier partners to determine the best in the industry.

This survey will provide insight into aspects of carrier performance such as competitive rates, claims processing times, product range and marketing support. Are carriers exceling or is there still room to improve?

And which carriers are worthy of a five-star rating?

SURVEY OPENS MAY 16TH 2016 Enter online at www.ibamag.com IBAmerica_Producers on Carriers 70-71_Career Path-SUBBED.indd 702016.indd 8

14/04/2016 8:48:12 7:47:57 19/04/2016 PMAM

PEOPLE

CAREER PATH

MARKETING GURU

Russell Findlay’s marketing career has spanned everything from pancakes to Pepsi – and now he’s bringing his expertise to the world of insurance 2013 CALLS HISCOX HOME After years of looking for opportunities in the financial services sector, Findlay landed at Hiscox, where he’s helping the carrier build a consumer brand “I always wanted the challenge of marketing an intangible product. Here at Hiscox, we’re in a great position to cement the brand as a leading specialist insurer in the coming years”

2011 FOLLOWS HIS PASSION TO SOCCER After just two years at Town Sports, the soccer fan got an offer he couldn’t refuse – to become Major League Soccer’s chief marketing officer “I felt honored to play a small part in growing the world’s greatest game in the world’s greatest country. And I’m a US soccer referee and still playing competitive soccer, so it made saying yes to this job really easy!”

2004 WINS CHAIRMAN’S AWARD Findlay’s hard work at Pepsi began to pay off when he collected the PepsiCo Chairman’s Award in March 2004 for launching the $1 billion Sierra Mist brand

“I believe that you should trust your team to execute the overall plan, while remaining open to new concepts and strategies. You have to challenge assumptions and push everyone to ensure excellence” Russell Findlay got his first taste of brand marketing at consumer goods giant Unilever, where he worked in brand marketing and sales for a decade “I started quickly out of the gate, becoming sales Rookie of the Year, and having P&L responsibility across the fabric care market with brands like Snuggle and Final Touch”

2012

LANDS AT IHOP Findlay’s next move was to the popular pancake restaurant chain, where he brought in a plan to develop a new media strategy “I wanted to tackle very complex media issues inside the familiar framework of a multi-step distribution system while ensuring a collective buy-in among all stakeholders along the way. And besides, pancakes are fun”

2009 MOVES INTO SPORTS MARKETING In 2009, Findlay left the global beverage giant behind for the world of sports and fitness, accepting a position as vice president of sales and marketing at Town Sports International, a company that operates fitness centers in the eastern US and Europe “The chance to be the functional head of both sales and marketing and again have P&L responsibility, as well as multi-unit retail experience, was a great opportunity to build new skills and learn a new industry”

2000

GETS HIS BIG BREAK AT PEPSI Findlay’s path as a brand manager was cemented when he accepted a job as Pepsi’s senior marketing manager in 2000. He later became vice president of field marketing for Pepsi Bottling Group, launching brands like Sierra Mist and Pepsi Max “I was eager to share a vision in building a brand that deeply STARTS AT resonates with consumers and also is commercially viable for a UNILEVER multi-tiered distribution system”

1990

www.ibamag.com

71

PEOPLE

OTHER LIFE

TELL US ABOUT YOUR OTHER LIFE E-mail iba@keymedia.com

LIFE ON THE FARM It isn’t quite Green Acres, but Kristen Martin’s move to the country has had some humorous moments WHEN KRISTEN MARTIN, Utica National Insurance Group’s executive vice president and chief operating officer, moved to the country with her family last year, they had three dogs.

“Since then, we’ve acquired two more dogs, two bunnies, two mini pigs, 16 chickens and four ducks,” Martin says.

The family cares for the animals together and has a lot of fun doing it – except when Porky the pig became a social media sensation after escaping and crossing the road to eat the apples in a nearby orchard. Fortunately, he didn’t get into the family’s garden, where they grow snap peas, squash, pumpkins and tomatoes.

“The animals are great and are a lot of fun,” Martin says. “I find that they are a good outlet after a hard day at the office. My kids are so invested in these animals that my oldest son is considering becoming a veterinarian, probably stemming from his part-time job as a farmer.”

MARTIN’S FARM 4

72

2

2

16

4

www.ibamag.com

72-IBC_Other Life-SUBBED.indd 72

19/04/2016 8:49:01 PM

72-IBC_Other Life-SUBBED.indd 73

19/04/2016 8:49:12 PM

Expect big things in workers’ compensation. Expect to save a third of your clients 30% or more. Most classes approved, nationwide.

For information call (877) 234-4450 or visit auw.com/us. Š2016 Applied Underwriters, Inc., a Berkshire Hathaway company. Rated A+ (Superior) by A.M. Best.

Insurance plans protected U.S. Patent No. 7,908,157.

OBC.indd 12

19/04/2016 8:50:40 PM