IBAMAG.COM ISSUE 5.02
SELLING CYBER
How to keep your clients one step ahead of the hackers
FLOOD RELIEF IN SIGHT?
A closer look at the National Flood Insurance Program’s uphill battle
BUILD A NEW SPECIALTY
Why now is the time to focus on insurance for architects and engineers
DRIVING CHANGE Crawford & Co. CEO Ian Muress on what the industry needs to do to innovate
ialist brokers ec sp g in ad le s y’ tr un co e th Find out how 60 of loping a niche ve de by s se es sin bu e bl ta have built profi
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ISSUE 5.02
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CONTENTS
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UPFRONT 04 Editorial
The fight against automation
05 Head to head
FEATURES
48
READY, SET, CYBER
SPECIAL REPORT
24
If your clients aren’t asking about cyber insurance yet, they will be soon. Find out how to be prepared
PEOPLE
INDUSTRY ICON
2
Natural disasters are on the upswing
10 News analysis
What will become of the National Flood Insurance Program?
10 Intelligence
This month’s big movers, shakers and new products
12 Workers’ comp update 14 Technology update
Like it or not, the insurtech revolution is here to stay
FEATURES
52
AGENCY INSIGHT Troxell’s John Eck Jr. looks at the agency’s 130-year history – and reveals what’s ahead for 2017
21 Opinion
The industry is forging ahead with Big Data, and regulators can’t keep up
FEATURES 58 Avoiding burnout
Six tips for keeping stress from taking over your life
60 The power of the tribe
Crawford & Co. international CEO Ian Muress offers his thoughts on how insurance companies can spur innovation
18
06 Statistics
Florida’s workers’ comp battle continues to escalate
TOP SPECIALIST BROKERS
These 60 agencies have managed to thrive in the modern insurance world by specializing in everything from microbreweries to senior living facilities
Is soft P&C pricing bottoming out?
The surprising ways networking can drive business success
PEOPLE
FEATURES
54
ENGINEER A NICHE IN A&E
The ongoing construction boom presents both challenges and opportunities for brokers who serve architects and engineers
63 Career path
A childhood filled with horses and art prepared Sarah Johnson Court for her insurance specialty
64 Other life
In the spotlight with dancer and choreographer Lillian Francis
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Exceptional Partnerships. Extraordinary Solutions. Not many companies are inspired to reach higher and take their business to the next level. Nor are they an industry leader with 35 years of experience in the E&S industry.
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E&S/Specialty nationwideexcessandsurplus.com A.M. Best rating of A+ (Superior), FSC XV Fortune 100 company Nationwide and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. Š2017 Nationwide.
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UPFRONT
EDITORIAL
How to beat the newest threat
R
emember when comparison websites exploded on the scene around a decade ago? At the time, many viewed their arrival as a potential death knell for brokers – not only could consumers now go directly to insurers, but they could also compare the prices of their policies in minutes, no broker necessary. Yet the majority of brokers survived – and thrived. Fast-forward to today, when the entire insurance industry faces a new technological threat in the form of automation. Not only do self-driving cars have the potential to drastically reduce the need for auto insurance, but the arrival of robotic advice services could severely cut down the amount of available jobs in the industry. In January, Japanese firm Fukoku Mutual Life Insurance took a big step into this new world when it installed an artificial intelligence system to calculate insurance payouts – and in the process, let go of 34 of its staff. During the same month, consultancy firm Accenture found huge appetite among global consumers for robo-advice, revealing that 74% of insurance customers worldwide would be
With so many new risks to address, consumers are looking for brokers to prove they are experts willing to exclusively receive automated advice to help them determine which insurance product to purchase. Once again, forecasts of doom loom over the industry – so how do brokers weather this latest storm? The answer, it seems, is specialization. In this month’s edition of Insurance Business America, we look at some of the leading specialist brokerages across the nation. In many cases, these brokerages have managed to carve out a profitable niche by providing enhanced advice and an individualized approach, covering everything from expanded risks in traditional areas (such as aviation specialists that offer drone insurance) to completely new areas of specialty (such as cyber). There, perhaps, is the key. With so many new risks to address, consumers are looking for brokers to prove they are experts in these fields so they can offer the support needed to guide them through them these issues – to be an advisor as well as a broker. They want real experts who can understand and tailor solutions for their problems in a way no robot can. The team at Insurance Business America
www.ibamag.com MARCH 2017 EDITORIAL Managing Editor Paul Lucas Journalists Maryvonne Gray, Jordan Lynn, Lucy Hook, Will Koblensky, Ryan Smith News Writers Lyle Adriano, Louie Bacani, Mina Martin, Gabriel Olano, Allie Sanchez Staff Writers Tim Garratt, Libby McDonald, Joe Rosengarten, Heather Turner Editorial Researcher Hannah Go Copy Editor Clare Alexander
CONTRIBUTORS Peter Kochenburger, Karen Gately, Janine Garner
ART & PRODUCTION Design Manager Daniel Williams Designer Joenel Salvador Production Manager Alicia Chin Traffic Manager Monica Lalisan
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CORPORATE Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil
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17/02/2017 6:55:39 AM
UPFRONT
HEAD TO HEAD
Are soft rates in the P&C market approaching a floor? Ongoing soft conditions in the property & casualty insurance market have many wondering when the cycle will end
Geoffrey Lubert
James Lynch
Keith Wolfe
EVP and managing director Willis Re
Chief actuary and VP of research and information services Insurance Information Institute
President, US P&C, regional and national Swiss Re
“There most certainly is a floor. Liquidity, reliance on reinsurance, spread of risk and many other factors will determine to what extent insurers will lead or chase rates down. No insurer in this current market can rely on investment income to prop up results. Many insurers have elected to concentrate in niche areas where there is little competition in order to achieve sustain able rates. Some insurers are actively buying brokerages as a way to deploy capital and create sustainable premium income. Today’s insurers will determine where their own floor is, much more independently than they did 30 or 40 years ago.”
“We have entered an era in which rates neither harden nor soften in lockstep. At one time, rates would decline if companies felt they could make more in investment income than they lost through reducing premiums. Interest rates are too low for that nowadays and won’t rise enough to spur true soft market activity, meaning market-wide decreases in excess of 10%. Instead, rates respond to underlying loss trends, rising in unprofitable lines like commercial auto but falling in some other lines, notably commercial property and general liability, which have been influenced by the reinsurance market, which is truly in a soft cycle.”
“We believe the current pricing environment is unsustainable, and recent renewals indicate that the market softening is decelerating. The market environment remains difficult, but it’s changing, and the speed of that change is increasing. Technology is changing the way many of our clients refine calculations of risk, provide individualized pricing and services, reach consumers, and reduce operating costs. That’s why, despite pricing pressures, we’re bullish around our own position in the market. At times like this, it’s even more important to be able to rely on a partnership with a stable reinsurer and take advantage of the opportunities change brings.”
HARD TO SOFT AND BACK AGAIN Denizens of the property & casualty insurance industry will be familiar with the traditional market cycle, which is typified by periods of soft market conditions, where premium rates drop as insurance companies up their competitiveness in a bid to increase market share and readily available insurance, alternated with periods of hard market conditions, characterized by rising rates, more difficult-to-find coverage and increasing profits for insurers. According to figures from the Insurance Information Institute, during the last three hard markets, inflation-adjusted net written premiums grew 7.7% (1975 to 1978), 10.0% (1984 to 1987) and 6.3% (2001 to 2004).
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UPFRONT
STATISTICS
The year in catastrophes
US Event: Hailstorm Month: April Approximate total losses: $3.5 billion Insured losses: $3 billion
From earthquakes to wildfires to floods, 2016 saw an increase in natural disasters around the world IN 2016, natural and man-made disasters caused $158 billion worth of losses, a significant uptick from the $94 billion suffered the year before. Unsurprisingly, insured losses were also higher last year – $49 billion versus $37 billion – but the differential between insured and total losses indicates that many disastrous events took place in areas charac-
31%
39%
Percentage of global catastrophe losses that were insured in 2016
terized by low insurance coverage. In no case was this divide more evident than with 2016’s major earthquakes. The year saw quakes in Taiwan, Japan, Ecuador, Italy and New Zealand, but Japan’s Kumamoto quake in April was responsible for the biggest losses worldwide at $20 billion. Only an estimated 25% of this loss was insured.
83%
Percentage of losses that were insured the previous year
Year-over-year rise in the annual cost of natural catastrophes in 2016
10,000
Number of deaths worldwide due to natural disasters in 2016
A WORLD OF TROUBLE The 7.0-magnitude quake that struck Japan in April 2016 takes the dubious honour of being last year’s costliest natural catastrophe – it caused an estimated $20 billion worth of damage, only $5 billion of which was insured. Hurricane Matthew, storms in Europe and the US, and the Fort McMurray wildfire in Canada rounded out the top five.
Source: Swiss Re
MAN-MADE INCIDENTS DROP
DISASTERS GETTING MORE FREQUENT
In 2016, the frequency of man-made catastrophes fell markedly compared to the previous year; a much higher proportion was covered by insurance as well.
300 280 260
Total insured losses
240 Number of events
Total economic losses
The global incidence of both natural and man-made disasters has exhibited a steady increase in frequency over the last two decades, but since 2009, natural catastrophes have outstripped man-made ones.
$12 billion
$8 billion
$9 billion
$7 billion
2015
2016
2015
2016
-33% Change
-23% Source: Swiss Re, December 2016
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220 200 180 160 140 120 100
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Man-made catastrophes
Natural catastrophes Source: Swiss Re, December 2016
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CANADA Event: Wildfires Month: May Approximate total losses: $3.9 billion Insured losses: $2.8 billion
EUROPE Event: Storms and floods Month: May/June Approximate total losses: $3.9 billion Insured losses: $2.9 billion
JAPAN
US AND CARIBBEAN Event: Hurricane Matthew Month: October Approximate total losses: $8 billion Insured losses: Less than $4 billion
Event: Earthquake Month: April Approximate total losses: $20 billion Insured losses: $5 billion
Source: Swiss Re, December 2016
CATASTROPHE COSTS ON THE RISE
A STORM BREWING
The cost of natural catastrophes worldwide is also generally rising, and the growing gap between total losses and insured losses indicates that many disasters are occurring in locations with low levels of coverage.
The cost of weather-related incidents such as hailstorms and floods is also creeping up again after a few years of decreases.
$ billions
500 460 420 380 340 320 280 240 200 160 120 80 40 0
1995 Kobe earthquake, Japan ($100 billion)
2005 Hurricane Katrina, US ($81 billion)
2008 Sichuan earthquake, China ($29 billion)
2011 Earthquake and tsunami, Japan ($235 billion)
2016
US, storm ($4 billion)
2015 US, storm ($2.11 billion)
2014 US, hail ($3 billion)
2013 Germany, floods ($4.3 billion)
2012 US, Hurricane Sandy ($36.6 billion)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Insured losses
Total losses
0 Total losses
Source: Swiss Re, December 2016; World Bank; NOAA
50
100 150 $ billions Insured losses
200 Biggest event
Source: Swiss Re, December 2016
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UPFRONT
NEWS ANALYSIS
The future of flood As the National Flood Insurance Program awaits reauthorization later this year, many in the industry expect a sea change. What lies on the horizon?
THE PAST year was a busy one when it came to flood activity in the US, from Hurricane Matthew, which caused estimated losses of $3 billion, to the Louisiana floods in August, which are thought to have caused more than $10 billion in losses. Flooding, along with wind, was the most damaging natural hazard in 2016. A recent report from CoreLogic revealed that flood losses in 2016 were six times greater than in 2015. According to Terry Black, vice president of claims at Aon National Flood Services, “2016 was the largest year for claims for the National Flood Insurance Program [NFIP] since Superstorm Sandy. “As weather patterns transition from El Niño to La Niña, we are seeing changes in flooding,” he adds, pointing to the heavy rainfall experienced in Louisiana, which
where they could have caused significant and widespread flooding.” Howard Botts, chief hazard scientist for CoreLogic, echoes Black’s sentiments, citing an uptick in the number of flash floods and an increasing propensity for people to build in riskier areas as key factors driving the flood risk. “We believe flood is going to be one of the absolute major risks,” Botts says. “It does, year in and year out, cause more dollar loss than any other hazard in the US, and we see that only increasing.” While the level of risk varies significantly across different areas and properties, the insurance industry’s ability to pinpoint specific areas of risk has greatly improved. “We really have a world in which we’ve moved significantly in our ability to understand flood risk at a very, very local level now
Year in and year out, flood causes more dollar loss than any other hazard in the US, and we see that only increasing Howard Botts, CoreLogic overwhelmed drainage systems, streams and rivers. “While hurricane activity was relatively light this year, we saw a lot of activity and the type of storm patterns that could have hit the Eastern Seaboard shores or moved into the warm waters of the Gulf,
8
in the US,” Botts says. The risk landscape is clearly evolving, and it seems that big changes may be on the horizon in the industry, too. Homeowners can currently purchase private flood insurance that extends beyond what the govern-
ment offers under the NFIP, and it looks as though the tide is increasingly turning toward the private market. “We are seeing private flood players entering the marketplace,” says Black, who describes the current market as “vastly under-penetrated” and adds that there are large reinsurance companies “that want to put their money to work.” The NFIP is set to be reauthorized in September, but according to Black, there appears to be a push from Congress to look at possible changes to the laws. Key issues on the table include how to relieve debt and increase penetration, the proper application of private insurance in the marketplace, the reduction of risk to the federal government and the taxpayer, and the
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US FLOODS: THE STATS
19
Number of floods in the US in 2016, the highest of any year since tracking began in 1980
$23 billion
Amount of debt incurred to the US Treasury by the NFIP after Hurricanes Katrina and Sandy
$17 billion
Overall flood loss in 2016 for the US
$13 billion
affordability of the product. “There’s also a major emphasis on making sure that the policyholders and
Congress today to continue to subsidize the NFIP at the rate that it is now,” he says. However, he adds, the vast scope of the
Amount the Louisiana and North Carolina floods contributed to last year’s flood loss Sources: Munich Re, FEMA, National Climactic Data Center, CoreLogic
There’s a major emphasis on making sure flood victims have improved customer service in the claims process Terry Black, Aon National Flood Services flood victims have improved customer service and transparency in the claims process,” Black adds. Botts agrees that the signals are there for a move toward the private market. “I don’t think there’s the appetite in US
program means any changes will have a major impact. And, he says, despite the likely push toward privatization, there will always be some properties that are so high-risk that private insurers will either not write them,
or will only write them with the backing of a high-risk pool and a federal subsidy. As the NFIP awaits reauthorization, it may be set to face a rising volume of claims, thanks to last year’s record-setting floods. Although 2014 and 2015 were among the lowest claims years in the NFIP’s history, Black believes that has potentially reduced the public’s general awareness of flood risk. However, he adds, “we believe the significant increase in flooding during the last year could bring a higher number of flood claims over the next two to three years.”
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UPFRONT
INTELLIGENCE CORPORATE
PRODUCTS
ACQUIRER
TARGET
COMMENTS
Argo Group
Ariel Re
Former Ariel Re CEO Ryan Mather will join Argo as part of the $235 million deal
HW Kaufman Financial Group
Essential Insurance Services
Essential will become part of US-Reports, Kaufman’s provider of audit, inspection and risk management services
Jardine Lloyd Thompson Group
Construction Risk Partners
Jardine paid $50 million for a 50.1% stake in the construction risk and surety specialty insurance broker
Leavitt Group
Vexis Insurance Solutions
The merger will allow the companies to mutually expand their employee benefits business
Markel
SureTec Financial
SureTec will continue to operate as a separate business unit following the $250 million acquisition, which includes a three-year earn-out
OneDigital Health and Benefits
CT Hellmuth and Associates
CT Hellmuth’s team of 26 will become part of OneDigital as it seeks to expand its middle-market presence
Validus
Archer Daniels Midland Company
Validus purchased Archer's Crop Risk Services for $127.5 million; Archer will continue offering insurance and marketing services to CRS customers
Insureon targets small business market with diagnostic tool
Insureon has developed a software tool that allows users to identify their business insurance requirements based on basic facts relating to their operations, company type, the nature of business, clientele and work location. The tool, available on Insureon’s Policy Buddy page, presents multiple choices to best describe the way a specific business works and provides an insurance needs assessment in a matter of minutes. “Insurance is complex but incredibly important,” said Insureon CEO Ted Devine. “We built Policy Buddy to boil down that complexity.”
Claims software provider considering multibilliondollar sale
Auto insurance claims software provider CCC Information Services is reportedly exploring a sale that could value the company at $3 billion. Sources familiar with the matter told Bloomberg that backers TPG and Leonard Green & Partners are working with an advisor to find a buyer for the Chicago-based company. Leonard Green purchased CCC from Bahrain-based Investcorp in November 2012 in a $550 million deal, then sold a 50% stake in the company to active software acquirer TPG, citing plans to expand in Asia. Founded in 1980, CCC operates the brands DriveFactor and Auto Injury Solutions. Its client base is composed of more than 350 insurance companies and more than 22,000 repair facilities.
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Charity First transitions nonprofit and social services lines
Property & casualty program manager Charity First has announced that it is transitioning its nonprofit and social services business lines to Nova Casualty. Charity First said in a statement that the move will allow it to offer higher limits for umbrella and sexual abuse coverage. “The move is very exciting,” said Charity First executive vice president Riley Binford. “It comes as part of [our] commitment to continuous improvement, and it brings a number of benefits to the program we offer independent agents and brokers, and ultimately the insured.”
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PEOPLE South Carolina car insurers charging extra for ride-hailing coverage
Insurance providers in South Carolina are changing their products to keep up with app-based ride-hailing services. According to a report from The Post and Courier, State Farm and other large insurers have stepped in to fill the gaps left by traditional policies, but are charging drivers extra to cover the risks specific to ride-hailing services. The new policies provide an “extra layer” of coverage for drivers who use their cars to transport passengers, said State Farm spokesperson Roszell Gadson, but the insurers have yet to disclose the amounts they are charging for the new endorsements.
Allstate spins off software subsidiary to facilitate digital transitions
Allstate has spun off Arity, an analytics business that leverages proprietary telematics data the company has gathered over the years. Arity is an application program interface [API] that packages driver risk scores, roadside rescue services and other information into a software development kit, which helps to improve the initial pricing strategy for auto insurance products. Arity vice president Chetan Phadnis noted that such platforms will enable the development of new digital products and the creation of new business models and channels.
Zurich and Deloitte team up to offer resources for cyber resilience
Zurich North America and Deloitte have joined forces to provide cyber risk services and insights to businesses working toward cyber resilience. The firms hope the collaboration will help customers better understand and protect themselves from cyberrelated risks. Initial offerings include risk transfer options provided by Zurich, along with risk mitigation options provided by Deloitte Risk and Financial Advisory Cyber Risk Services. The companies said they expect to work together on additional ventures as the cyber insurance market continues to evolve.
NAME
LEAVING
JOINING
NEW POSITION
Wayne H. Carter
Berkley Program Specialists
US Risk Underwriters
Head of investment, risk and reinsurance
Allen Chaves
N/A
Arbella Insurance Group
Director of data governance and research analytics
Vince Cole
Crawford & Co.
Charles Taylor Adjusting
US CEO
David Dwortz
Liberty Mutual
Helmsman Management Services
President
Alexis Faber
FINEX
Willis Towers Watson
Global head of financial lines
Marc Henstridge
N/A
Atradius
Chief insurance operation officer
Chris Heckman
N/A
CNA Financial Corp.
Vice president for hospitals and captives
Jacob Ingerslav
Symantec
The Navigators Group
Global practice leader, cyber liability
Robert Moussaid
Energy Future Holdings Corp.
JLT Specialty
Senior vice president
Alan F. Short
CNA Financial Corp.
XL Catlin
Senior underwriter
Derek Smith
RT Specialty
SilverStone Group
Account executive, in-home care risk management
Chadwick Willoughby
N/A
Farris Evans Insurance Agency
President
Megan Watt
AIG
Everest Re
Head of claims
Charles Taylor Adjusting appoints new CEO for US market
International loss adjustment firm Charles Taylor Adjusting [CTA] recently announced the appointment of Vince Cole as CEO of its US operations. Cole brings 25 years of expertise in strategy, marketing, product development and operations to the role. “The US insurance market is by far the largest in the world, with considerable opportunity to expand our loss adjusting expertise … particularly in the property & casualty, forensic accounting and engineering space,” said CTA CEO Damian Ely. “Vince has a tremendous track record in driving business growth.”
SilverStone expands in-home care risk management program with new hire
SilverStone Group has announced the appointment of industry veteran Derek Smith as an account executive as the company firms up its presence in the growing in-home care risk management business line. Smith started his career with SilverStone Group in Omaha; his most recent position was as a senior vice president at RT Specialty. “This key appointment shows SilverStone Group’s ongoing commitment to providing risk management solutions to its valued home healthcare clients,” the company said in a statement.
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UPFRONT
WORKERS’ COMP UPDATE NEWS BRIEFS Wisconsin considering self-insurance for state employees
The Wisconsin Group Insurance Board is set to decide which of the seven restructuring options it will adopt to reform workers’ compensation in the state. The board will determine whether the state will move to self-insurance, which some estimates say could save the state $42 million per year and give it greater control over benefits. However, state employees, who are currently enrolled in a $1.5 billion workers’ comp program covered by 17 HMOs, are reportedly worried that the move could disrupt the competitive health insurance marketplace.
Safety National launches new captive services line
In order to boost its product offering and provide clients across the country with a wide range of options, Safety National recently rolled out a new captive services line. “Considering the similar risk-sharing attributes, captives are a natural and logical fit for Safety National and our continued growth,” said Tom Hebson, vice president of large guaranteed cost workers’ compensation and captive services at Safety National. “Our unbundled approach allows our customers to select service providers who are most likely to provide favorable results, and to hold them accountable for those results.”
US businesses shelling out billions for nonfatal accidents
Every week, American businesses pay upwards of $1 billion for non-fatal accidents on the job, according to the 2017 Liberty Mutual Workplace Safety
12
Index. These serious but non-lethal incidents amount to $60 billion in direct workers’ compensation costs to US businesses per year. Overexertion from outside work was the most common cause of the accidents, making up 23% of incidents; the category includes “injuries related to lifting, pushing, pulling, holding, carrying or throwing objects.”
Vermont law seeks to expand mental health coverage
Emergency workers in Vermont may get more help for their mental health needs if a bill recently introduced in the state legislature is passed. A law that calls for parity between traditional healthcare and mental health services is already on the books, but Rep. Sarah Copeland-Hanzas, who sponsored the new bill, said some areas of state policy have not kept up with these developments. According to CopelandHanzas, current Vermont law does not provide mental healthcare for first responders who may be suffering from mental health issues as a result of trauma sustained in the line of duty.
Workers’ comp fraud could become criminal liability in Illinois
The Illinois Senate is set to amend the state’s Criminal Code of 2012 to add workers’ compensation fraud. If the provisions are passed, Senate Bill 12 would add a section to the criminal code that stipulates that “any person, company, corporation, insurance carrier, healthcare provider or other entity” that makes a fraudulent claim to receive workers’ compensation commits, at minimum, a Class A misdemeanor (for $500 or less of stolen benefits), and at maximum, a Class 1 felony (for offenses worth more than $100,000).
Florida’s WC crisis roils on Workers’ compensation regulation in Florida is creating friction between employees’ lawyers and employers’ insurers Few issues divide the legal and insurance communities as much as workers’ compensation does in Florida. It’s a curious conflict between the two sometimes symbiotic professions over who should be responsible for the costs of lawsuits filed by injured workers in pursuit of compensation. In April 2016, the Florida Supreme Court ruled that limits on attorney’s fees were unconstitutional, prompting the National Council on Compensation Insurance [NCCI] to raise the state’s rate by 14.5%. In a retort from the dissatisfied business community on February 14, 2017, the Associated Industries of Florida proposed a bill to the state’s legislature that would expedite lawsuits, breed competition among lawyers and make concessions to employees. Pushing back against the rate hike itself is workers’ compensation lawyer Richard Chait, who has rallied local Florida media to target the NCCI for being “antiquated” and “virtually eliminating competition.” Chait, a partner at Miami-based Touby, Chait & Sicking, advocated for a “transparent rate-making process that allows for meaningful competition.” The NCCI didn’t hesitate to refute Chait’s implications. “We operate in one of the most, if not the most, transparent states in the country for the workers’ comp line,” said Susan Donegan, chief regulatory services officer at the NCCI. “Perhaps he just doesn’t
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understand not only the level of scrutiny the process undergoes, but also the kind of notice, hearing and public examination that happens during the rate process.” However, Chait argues that Florida should join most of America in having a competitive rate-making process. The NCCI sets workers’ compensation rates in four states. Florida requires fully formed rates that include both loss cost and expenses, Donegan said, and because states
“We operate in one of the most, if not the most, transparent states in the country for the workers’ comp line” are at liberty to change their regulations, the current national framework has its variations. The NCCI operates in both loss cost and rate states. When asked if workers’ compensation rates were hurting business or workers in Florida, the NCCI refused to comment. However, an analysis by Mike Helvacian of the National Center for Policy Analysis estimated that the Florida Supreme Court ruling could push premiums $929 million higher for employers. In addition, a study by the Department of Business and Consumer Services ranked Florida 33rd for workers’ compensation affordability after the ruling, compared with 28th in 2014.
Q&A
Joseph Paduda Principal
Workers’ comp 2017 outlook
HEALTH STRATEGY ASSOCIATES
Fast fact Prior to founding consulting firm Health Strategy Associates in 1997, Paduda worked for several insurance companies, including Travelers, Liberty Mutual and AIG
Workers’ compensation did well last year. What are the prospects for medical costs and policy pricing this year? I don’t see medical costs spiking. In fact, medical cost increases have flattened to essentially zero since 2014. While we may see a very small uptick when the NCCI reports initial 2016 results in May, it is equally likely costs will trend down again. In most areas, insurers have control over the price of the policies they sell – the wise ones will not cross the “stupid line,” while others will sprint past it. Where they don’t have tight control, insurers can pull back and just not write bad business.
How do you see the possible repeal of Obamacare affecting workers’ compensation? The Affordable Care Act is not going to be repealed anytime soon. Republicans are learning the hard truth that campaigning and governing are quite different, and the political costs inherent in repealing the ACA without a credible replacement are causing the GOP to try to figure out how to deliver on three directly contradictory campaign promises – preserving coverage for all who’ve gained it under the ACA, reducing cost and repealing the ACA. Couple this with the reality that a replacement requires support of at least a half-dozen Democrats in the Senate, and the path to repeal/replace becomes far steeper.
What impact will the improving job market have on workers’ comp, especially premiums and loss costs? December’s jobs report was quite strong, with wages up over 2%. We are nearing full employment, and barring a trade war or major international crisis, we can expect premiums to grow due to higher wages. Loss costs should remain static to slightly higher, as a strong job market supports employee retention and placement for those looking to get back to work.
How can brokers cope with the contrary conditions in workers’ compensation? The keys are to look up and out, not down and in. Macro factors – employment, trade, healthcare, ACA status – are going to drive workers’ comp. Remember, workers’ comp accounts for just over 1% of total US medical spend. What happens with ACA, which impacts Medicare, Medicaid, hospital reimbursement, provider payments, employer coverage and pharma, will have an enormous impact on the price and availability of workers’ comp insurance.
What needs to change in terms of industry fundamentals to sustain the profitability of workers’ comp? Avoid the “stupid line” – don’t price to market when the market is headed in the wrong direction.
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17/02/2017 6:52:45 AM
UPFRONT
TECHNOLOGY UPDATE
Insurtech deals hit new high in 2016 Insurtech investments reached $1.69 billion last year – so what can the industry do to keep up?
“These startups are leveraging new technology and a better understanding of consumer expectations to increase efficiencies in the insurance industry,” Sarah Kocianski, senior research analyst at BI Intelligence, noted in the report. “Some are helping incumbents deliver better end products, while others are directly competing with legacy players.” The report noted that most insurtech
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“Some startups are helping incumbents deliver better end products, while others are directly competing with legacy players”
New data from CB Insights reveals that insurance technology investments hit $1.69 billion last year, marking the second consecutive year that investments breached the $1 billion mark. Insurtech startups saw a 42% yearover-year increase in the number of deals, which reached a total of 173. However, overall dollar values fell 37% between 2015 and 2016. Notably, CB Insights said that two-thirds of deals in the space went to early-stage or Series A funding. Seed funding activity in the
NEWS BRIEFS
insurtech sector rose 56% year-over-year to reach $508 million. There were more than 100 early-stage insurtech deals in 2016 (an increase of 47% over the previous year) and included startups such as Hippo Analytics, CoverWallet, Embroker, Ladder Life, Shift Technology and Estify. A report from Business Insider posited that the industry’s infamously slow adoption of emerging technologies is costing traditional players business opportunities.
Research firm says IoT market will grow by 66% a year
New data from analyst firm Research and Markets predicts the insurance market for the Internet of Things will grow at an average of 66% annually until 2022, when it’s projected to be worth $43 billion. The firm credits the growth of the insurance market for the IoT to the adoption of IoT products in developed and developing markets, as well as the increasing demand for cloud platforms and value-added services in insurance industries, along with the reduction in the cost of premium policies.
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opportunities reside in the US and Europe, geographies that have large and mature insurance industries – indeed, CB Insights’ analysis confirmed that 59% of insurtech funding went to US-based startups. These startups mostly target retail customers – both individual consumers and small businesses – and primarily serve as enablers for their clients by helping them improve systems and processes. In that regard, they don’t directly compete with the products and services of traditional players. However, as investments in this space continue to grow at an exponential pace, Business Insider warned that brokers are at most risk of becoming redundant if they don’t undertake initiatives to adapt to the changing environment.
New partnership offers streamlined workflows
Insurance Technologies Corporation [ITC] and insurance leads firm Precise Leads have forged a partnership to integrate ITC’s popular TurboRater personal lines comparative rating platform with Precise’s prospecting products to offer agents a more efficient workflow. “Right now insurance agents and agencies nationwide are really trying to navigate the new waters of the current state of insurance,” said ITC president Laird Rixford. “One of the things that they need to start doing is looking outside of their traditional sales funnel.”
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IBA Can
CANNABIS COVER 2017 COLORADO April 27, 2017 SPORTS AUTHORITY FIELD AT MILE HIGH DENVER, CO
The frontier of legalized cannabis, Colorado is the hub of a booming economy that has expanded to 29 states. On April 27, Denver will host a world-first cannabis insurance conference to deliver key insights into this lively industry and its complex coverage needs. Cannabis Cover 2017 will explore commercial exposures and specialized coverage that addresses perilous gaps, the impact of legalization on the insurance market and the challenges of doing business in a cash-only industry. Featuring innovators including Next Wave Insurance, RT Specialty, PPIB, Skytree Partners and the law offices of Wilson Elser, Cannabis Cover 2017 will deliver the latest perspectives on legality, critical coverage needs and best practices for underwriters, brokers and agents. Join Insurance Business in the Mile High City on April 27, 2017 at Sports Authority Field.
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• Join as industry leaders establish a framework for managing cannabis risks and coverage needs • Explore how complex risks are transforming best-practices in underwriting cannabis • Discover how the booming cannabis market is redefining the insurance space • Network with stakeholders and key influencers leading the innovation of cannabis coverage
Visit cannabis.ibamag.com for more information or contact ATHEENA LOPEZ 303 800 5877 Atheena.Lopez@keymedia.com
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16/02/201711:00:27 6:54:47 AM 17/02/2017 AM
UPFRONT
TECHNOLOGY UPDATE Q&A
Laird Rixford President INSURANCE TECHNOLOGIES CORPORATION
Years in the industry 21 Fast fact In addition to leading ITC, Rixford is also a pilot and a technology junkie
Meeting changing consumer preferences What’s happened in the industry since Google shut down its auto insurance comparison tool, Google Compare, one year ago? When Google announced the expansion of its auto insurance comparison website into the US market, it motivated a lot of people to change to keep up. Then with the announcement that they would be shutting down Google Compare, many breathed a sigh of relief. They saw what they thought to be the biggest threat to the industry leaving. However, in the 12 months since Google left, the industry has experienced a burst of investment activity as billions of dollars have gone to insurtech startups that have the same goal Google did: to attract and convert online consumers. There’s been a lot of talk about these insurtech companies and how they’re disrupting the industry. But the true disruptor and real threat to the industry is actually consumers and the change in their buying behavior, including how they research and purchase insurance. Consumers want an easy, frictionless process. They’re looking for answers. Insurtech companies are responding to this trend and starting to take clicks and leads from the traditional pipeline, including agencies and carriers.
What lessons can be learned from Google’s experience? A lot of online providers were purchasing leads from Google, but Google was cannibalizing those pay-perclicks to provide consumers a choice. Also, it is hard to
Insurtech leading other industries in innovation
New research has revealed that insurance is catching up to other industries in the use of technology to enhance products and services. The report, “Insurtech and Customer Services: Lessons for Incumbents,” said 2016 was a banner year for insurtech innovation. “It has taken a while for insurance firms to fully embrace fintech innovation, [but] rapidly changing customer behavior, the availability of smart devices, and innovation ecosystems achieving scale provided the industry with a much-needed push in 2016,” the report said.
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create a full comparison website. Google was trying to go too broadly too quickly, which is a very difficult thing to accomplish.
What should carriers and agents do to adjust to consumers’ changing buying habits? They need to realize that they have the same tools at their disposal to create these interactive and competitive environments online so they can pursue those leads themselves. The technology is out there. It’s just a matter of how you want to invest in that technology, and how you want to use that technology to make a difference in your business. We are seeing more carriers and agencies building out informative online portals where consumers can go to learn, research and get quotes from multiple carriers directly on that website. These portals give carriers and agencies the ability to compete with the online aggregators that are purchasing these leads.
What does ITC offer to help carriers and agents succeed in the comparative insurance space? Access to the same technology the insurtech startups use, including the ability to rate and sell a policy to an online consumer. We also are the largest provider of insurance agency websites in the United States and offer marketing automation and marketing services that help agencies drive quality traffic to their websites that converts into leads and sales.
Rating firm says tech acquisitions could be the future
Now that mergers and acquisitions in life and annuities appear to be entering calmer waters, ratings firm A.M. Best says tech acquisitions are poised to be the next industry M&A trend. In a recent report, the firm said that goaloriented buyouts of, or integrations with, technology companies are emerging as a new M&A direction. “M&A activity can lead to innovation, so we believe going forward we’re more likely to see targeted M&A that’s not necessarily insurance-focused,” said A.M. Best AVP Rosemarie Mirabella.
Advice2Pay launches group insurance service
Consolidated billing service provider Advice2Pay has announced that it will focus on the group insurance market to address the “onerous process” of invoicing and claims calculation. The Iowa-based company uses proprietary technology to simplify carrier premium calculations and improve insurance administration and servicing “We saw a significant pain point within the market and recognized a need for employers, brokers and carriers to have access to a solution,” said Advice2Pay founding partner Don Calahan.
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WHAT’S YOUR COMBINATION FOR SUCCESS?
Websites | Marketing | Rating | Management
Find your agency’s combination at GetITC.com www.ibamag.com
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17/02/2017 11:00:52 AM
PEOPLE
INDUSTRY ICON
GREAT EXPECTATIONS Crawford & Co. CEO Ian Muress considers the change new technologies will bring to the insurance industry, along with the opportunities they will create
IAN MURESS, CEO of international operations at Crawford & Company, is approaching four decades in the claims space – and in the next decade, the industry veteran expects insurance to transform significantly. “I would say the industry could be unrecognizable from what we now know,” he says, “with likely insurer and broker consolidation, the growth of new markets in the rising economies of the East, and markets in Dubai, Singapore, and Hong Kong becoming less reliant on London with local capital and skill sets available.” For the past 15 years, Muress has occupied executive roles at Crawford & Co., the world’s largest publicly listed independent provider of claims management solutions to insurers and self-insured entities. Based in London, today he heads up Crawford’s international businesses outside of the US. As such, he’s attuned to the threats and opportunities currently facing the industry – particularly disruptors. “Disruption is often seen to be driven by technology, and certainly this is right, but it is aligned to, and mostly about, anticipating customer expectations of service,” he says. “Customer expectations have evolved – they want their needs met immediately and available on numerous platforms, reflecting their lifestyles and work patterns. We need to find the insurance solutions that meet those expectations.” He points to the use of artificial intelligence to automate back-office tasks and handle high-volume, rules-based work.
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“Once programmed, AI systems can replicate decision-making processes and apply them more quickly and more efficiently than human operators,” he says. “What is clear is that AI has evolved in the past 18 months and is here to stay, and needs to be factored into future planning in order for companies to remain competitive.” While many in the industry have reacted to technological advances with dismay, Muress describes the recent activity around disruption and change as “very healthy.”
believe the industry is in the midst of a hugely turbulent period in which many of the services and income streams it has relied upon are being questioned and attacked by innovators. This doesn’t necessarily mean all innovation is going to come from outside the industry.”
The insurtech threat Worth nearly $5 trillion, the global insurance industry faces challenges from insurtech firms – businesses with a mission to develop new technologies that will revolutionize the
“Customer expectations have evolved, and they want their needs met immediately and available on numerous platforms, reflecting their lifestyles and work patterns. We need to find the insurance solutions that meet those expectations” “It is forcing the industry to consider entrenched positions and develop new ways of doing business that put the customer at the heart of what we do,” he says. “Comparison websites should really have been called ‘disruptors,’ but their emergence took place in a different business environment, and they weren’t being chased by such a huge cohort of businesses as seems to be the case now. “Don’t get me wrong,” he continues, “I
client service experience for insurance customers across the globe. One insurtech startup that has attracted considerable attention is Lemonade, said to be the world’s first modern peer-to-peer insurance company. It initially provided homeowner’s and renter’s insurance in New York, but the company has for a license in 46 US states and the District of Columbia, hoping to be available to 97% of the US population in 2017.
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PROFILE Name: Ian V. Muress Company: Crawford & Company Title: Executive vice president and CEO, international operations Age: 59 Years in the industry: 36 Fast fact: Muress oversees all of Crawford’s business outside the United States, including the UK, Europe, Canada, Asia-Pacific and Latin America.
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PEOPLE
INDUSTRY ICON
But the burgeoning insurtech space brings with it opportunities for incumbents to form new partnerships. Muress highlights Crawford’s foray into the ‘gig economy’ through its $36 million acquisition of a majority stake in WeGoLook, a business focused on making it easier for consumers to verify information so they can more easily make important decisions. “WeGoLook [is] an online and mobile platform that deploys thousands of people called ‘lookers’ from a nationwide network to inspect and verify information, helping clients make real-time decisions,” Muress explains. “We are
“The industry could choose an entrenched position, given that it faces something of an existential threat once vehicles learn to drive for themselves,” he says, “but where there is change, there is opportunity, and it is pleasing to see insurers put their best foot forward.” Muress believes it is incumbent upon the industry as a whole to embrace advances in technology. “Disruption is happening now, and even if you don’t belong to the millennial age group, you can still be part of the future. Either you want to be part of disruption or you might want to collaborate, but to not work with
“The forward-thinking insurance business should embrace skills like analytics, coding and applied mathematics because these are the types of backgrounds that will drive innovation and allow them to think beyond today’s methodologies” looking to bring the WeGoLook model to the UK, Australia and Canada in 2017. The model is very portable, in that the technology and business architecture readily lends itself to a ‘lift and shift’ model. It’s good to go. We are very ambitious about how quickly we can push this out into the international businesses, and we’re working on a very successful, established model coming out of the US. It is our belief that the demands of both insurers and customers can be met quickly and easily with applications such as this.”
Embracing change Muress says he’s been pleased to see organizations such as the Association of British Insurers taking a positive role in developing the framework for liability insurance, particularly around driverless cars, allowing change in the industry to occur.
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change is not an option.” Illustrating the point, he recalls events that kicked off at Crawford & Co. back in 2009. “We saw the need for more complex skill sets to meet the claims needs of the future, so we developed our complex claims offering, Crawford Global Technical Services,” he says. “It became increasingly clear that dualqualified adjusters were an essential piece of our solution. We needed engineers, forensic accountants, surveyors, cyber experts, all of whom would also be adjusters.” Muress says the days of fixed roles in underwriting, claims or distribution are long gone. “The forward-thinking insurance business should embrace skills like analytics, coding and applied mathematics,” he says, “because these are the types of backgrounds that will drive innovation and allow them to think beyond today’s methodologies.”
CRAWFORD & COMPANY BY THE NUMBERS
1941
Year Crawford & Co. was founded by Jim Crawford, an insurance claims manager
2002
Year Ian Muress joined Crawford & Co. as CEO for UK and Ireland
150
Number of countries where Crawford & Co. serves clients and handles claims
$1.2 billion
Crawford & Co.’s global revenue in 2015
1.6 million
Number of global claims handled by Crawford & Co. in 2015
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UPFRONT
OPINION
GOT AN OPINION THAT COUNTS? Email iba@keymedia.com
The dangers of Big Data Big Data might be the next big thing – but, writes Peter Kochenburger, the industry’s use of it is outstripping the traditional capabilities of regulators BIG DATA gives insurers the ability to collect vast amounts of personalized information, create new predictive models and apply them to a variety of insurance functions, thereby enhancing the marketplace for insurance consumers. Unrestrained, however, Big Data will also negatively disrupt insurance regulation and essential insurance functions. One concern is Big Data’s ability to evaluate consumer behavior. Price optimization – the ability to predict how much a premium can be increased before a particular consumer is motivated to shop around – is the most recent battleground. This practice may well constitute unfair discrimination by differentiating among consumers with the same risk characteristics based on their propensity to comparison shop, and several states have issued bulletins banning the practice. Perhaps building on this theme, several data analytics vendors are promoting claim optimization. This is good news if it means settlements will be quicker, fairer and more efficient. But the ability to ‘optimize’ can also mean establishing settlement offers on the statistical likelihood that the claimant will accept the offer, rather than on the fair value of the claim itself. In this area, the law is clear: Insurers are required to pay claims at their full value and not negotiate them downward based on unrelated factors, such as a policyholder’s need for a quick payout. Neither practice is new, but Big Data allows companies to engage in them in a far more sophisticated manner, to the detriment
of insurance consumers. It also challenges regulators’ ability to fulfill a number of traditional supervisory functions, including evaluating insurer rating and underwriting plans, and enforcing laws against discrimination. There is a growing gap between the industry’s use of Big Data and regulators’ ability to supervise it. These models are increasingly complex, can include more than a thousand rating factors for a single insured, and are
cost of insuring their homes from flood, or continuing the partial subsidization of rates – in essence, spreading some of the risk to all federal taxpayers. An article in the Redwood Times last October about wildfires and insurance rates noted that for some homeowners, rates had more than doubled in five years due to more individualized risk assessments and developments in fire metrics. “Today, insurance companies can zero in on the risk to a specific home and price the policy specific to that address,” said a state insurance regulator quoted in the article. Big Data sharpens the divergence between risk precision and risk spreading. However, there are instances where we as a society want to subsidize policyholder risk; the best example may be forbidding health insurers from using an insured’s health status or pre-existing condition in setting rates. There are also good reasons why individuals who can legally drive (despite a series of accidents) should be able to obtain affordable auto insurance, and assigned risk plans are often subsidized in part by the voluntary market.
“These models are increasingly complex and are often created by third-party vendors over whom regulators have uncertain authority” often created by third-party vendors over whom regulators have uncertain authority. The most difficult challenge presented by Big Data and predictive analytics probably lies in its greatest potential: to align risk more precisely, perhaps down to the individual policyholder level. While this ability enhances actuarial fairness, it also fragments risk pools and reduces risk spreading, another essential insurance function. To use an ‘old’ Big Data example, credit scoring might result in the majority of policyholders paying less than without its use, but since the overall premiums collected are not reduced, it also means a minority is paying more – sometimes a lot more. The political battles over the National Flood Insurance Program’s rates for residential flood coverage illustrate the dilemma between charging homeowners the full
Determining the appropriate risk allocation is neither an actuarial decision nor one to be made by private actors, but a matter of public policy, meaning our elected officials and regulators will be responsible. If our political system is as fragmented as many believe, effective legislative guidance may not be forthcoming, leading to a continuation of de-facto subsidization (the NFIP), or essential insurance products becoming far more expensive and a growing number of policyholders being priced out of the market.
Professor Peter Kochenburger teaches insurance law at the University of Connecticut Law School. He is a NAIC consumer representative, was elected to the American Law Institute in 2013 and graduated from Harvard Law School in 1986.
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FEATURES
SPECIAL REPORT: TOP SPECIALIST BROKERS 2017
TOP SPECIALIST
BROKERS These 60 brokerages have found a competitive edge in today’s rapidly changing marketplace
THE FOUNDATION of a specialty insurance broker’s work is the thorough knowledge of an industry completely separate from their own. Armed with years of education and experience, insurance specialists know the ins and outs of various industry segments, and as such, are able to guide their clients through every risk and exposure. The following agencies have found their niche – and success – in providing specialized coverage solutions for their clients’ unique needs.
After receiving numerous nominations of specialty insurance brokerages from coast to coast, this annual list was narrowed down to 60 agencies with significant business and revenue in a single area of specialty. Working with businesses from microbreweries to innovative tech startups, these specialists are the cream of the crop in their respective areas, giving themselves a competitive edge in the modern insurance world.
INDEX OF US SPECIALTY BROKERS Ahern Insurance Brokerage
32
CiraConnect Insurance Services
34
Greenpoint Insurance Advisors
35
Alliance Insurance Group
25
Daniels-Head Insurance Agency Inc.
46
GS Insurance Solutions Inc.
36
Alliant Insurance Services Inc.
34
Diversified Insurance Group
30
Hall & Company
27
American PEO Insurers
38
Entertainment Insurance Brokers
35
Harpenau Insurance Agency LLC
39
American Risk Management Resources Network LLC
34
Environmental Risk Managers
27
Insurance Associates Inc.
42
Art Insurance Now
42
EPIC Insurance Brokers and Consultants
41
Integrated Insurance Solutions
27
Arthur J. Gallagher & Co.
36
Fenner & Esler
40
Integrity First Insurance
38
Associated Insurance Services
39
Frank H. Furman Inc.
29
JJ Wade & Associates
44
Avatar Brokers LLC
25
Garden State Professional Insurance Agency
40
Levitt-Fuirst Associates Ltd.
31
Bouchard Insurance
44
Gateway Specialty Insurance
37
Mackoul & Associates Inc.
46
Buckman-Mitchell Inc.
42
GDP Advisors LLC
28
Marquee Insurance Group
36
CedarBrew Insurance
26
Global Marine Insurance Agency
42
Maverick Insurance Group
25
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SENIOR LIVING COMMUNITIES
ALLIANCE INSURANCE GROUP Eugene, OR
As the senior age group’s share of the total population rises (according to the latest figures from the Population Reference Bureau, it’s projected to reach more than 98 million by 2060), the LIFE SCIENCES
AVATAR BROKERS Cincinnati, OH
Following tremendous investment in 2016, growth in the biotech and life sciences sector is expected to continue, according to industry news site BioWorld. Segments leading in investment volume include healthcare services, therapeutics, diagnostics and medical devices. As such, Avatar Brokers maintains a strong position in the market, having
presence of senior living communities is sure to rise with it. Alliance Insurance Group has a “devoted team approach to insurance” for senior living communities that relies on its in-house risk management and litigation management staff. Founded by a group of risk management professionals, Alliance Insurance Group places over $70 million in premiums across the nation.
chosen to work exclusively with clients in the life sciences and technology industries across 20 states. Seventy percent of its clients work as technology, life sciences and green energy providers. The company’s principal goal is to continue providing specialist brokering services to companies developing innovative technology and help protect their valuable work by ensuring proper coverage for its many stages, from incubation and trial to product rollout. Avatar is a member of TechAssure, and also has offices in Australia.
Mints Insurance
27
Scout Insurance Group Inc.
40
MJi Specialty
44
Shepherd Insurance
40
Mortgage Banking Insurance Group
30
SIS Wholesale Insurance Services
46
National Risk Management Services
38
Somers Agency
38
Paradigm Insurance Group LLC
34
Sonoran National Insurance Group
30
Powell & Meadows Insurance
38
Spectrum Weather and Specialty Insurance Inc.
26
Preferred Property Program Inc.
28
Tammie Pereira Insurance Services Inc.
32
Professional Program Insurance Brokerage
26
The Insurance Advocates
32
Rainprotection Insurance
43
Tip National LLC
32
RIC Insurance General Agency
33
Tower Services
38
Richard Soo Hoo Insurance Agency
30
TrueNorth Insurance and Financial Strategies
45
Risk Insurance Brokers
40
Vantreo Insurance Brokerage
30
OIL & GAS
MAVERICK INSURANCE GROUP Louisville, KY
After experiencing a rocky 2016, the oil & gas industry is hopeful for what’s to come this year – a recent Deloitte survey found that approximately 59% of oil & gas executives believe 2017 will be a year of recovery for the industry. Maverick Insurance Group specializes in providing insurance solutions to oil & gas operators. With two offices in Kentucky, the agency is strategically located to service the industry – there are more than 1,500 oil- and gas-producing pools throughout Kentucky, and in 2013, more than 2.8 million barrels of oil were produced in the state. “Our oil & gas specialty evolved from our 15 years of experience in the petroleum and propane distribution space,” says president and CEO Duran Hall. “We have developed a growth strategy around our industry partnerships with the Kentucky Oil & Gas Association and the country’s leading carriers. Our carriers are facing increased frequency of underground pollution losses and severity of commercial automobile accidents. This will undoubtedly produce premium increases for our customers in the near future. Our mission is to provide solutions to our clients’ problems when they need us the most.”
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FEATURES
SPECIAL REPORT: TOP SPECIALIST BROKERS 2017 BREWERIES
CEDARBREW INSURANCE Flemington, NJ
At the end of 2015, there were more than 4,200 breweries around the United States, according to the Brewers Association – a record level that surpassed the historical high of 4,131 breweries in the US in 1873. The women-run team at CedarBrew Insurance has been writing specialty brewery insurance for the last five years. From ales to stouts, the team at CedarBrew is passionate about beer and insurance, boasting expertise in designing insurance coverage tailored for the highly specialized brewing industry.
TATTOOS AND BODY PIERCING
PROFESSIONAL PROGRAM INSURANCE BROKERAGE Novato, CA
Tattooing and body piercing require both great skill and a good sense of artistry – and given their permanent effects, the practices face high risks, such as mishaps or customer regrets, that can result in claims. Professional Program Insurance Brokerage was established to help professionals in the body art industry protect their work and businesses, and has been providing
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“This isn’t a hobby for us – this is our life, and we want to live in the industry that we know so well,” says Malena Farrell, VP of operations. As the popularity of craft beer grows nationally, the CedarBrew team carries the knowledge to write insurance for breweries, microbreweries, brew pubs, nanobreweries and homebrew startups nationally. “This is a very fast-moving industry – it’s exploded in the past few years, and that hasn’t slowed down yet,” Farrell says. “The owners are very passionate and very knowledgeable, and they surround themselves with professionals who feel the same. This is our niche that we have worked hard to perfect, and we make sure that every policy we put in place is the right one at the right time for the client.”
tattoo and body piercing insurance for more than 20 years, working with about 1,600 brokers in all 50 states. “We have traditionally been known for our tattoo program,” says company president Susan Preston. “We have been doing it longer than anyone else in America … there was no program until I put it together.” Under its comprehensive tattoo insurance program, PPIB extends coverage for guest artists and supply distributors, as well as for permanent cosmetics and work done in conventions. The brokerage also arranges consent forms and provides loss-control tips to help clients define their limits and exposures, and strives to stay updated on current trends in order to foresee any other needs that might arise.
WEATHER
SPECTRUM WEATHER AND SPECIALTY INSURANCE Liberty, MO
Given the increasing frequency and severity of extreme weather conditions, companies can no longer afford to let their businesses remain exposed. Backed by company president Robert Holmes’ extensive experience in meteorology, Spectrum takes pride in being the “best source for rain insurance, snow insurance and weather promotions,” covering short-term events such as outdoor concerts, as well as long-term exposures, including the winter season and its effects on a business’s bottom line. Spectrum also has a weather promotions program that allows the insured to offer a full or partial refund or rebate for a product or service following a weather event, which encourages event organizers and other service providers to take on more business during slow periods or holiday seasons while maintaining customer satisfaction. “When Spectrum Weather and Specialty Insurance started six years ago, we vowed to be a company that would be laser-focused on customer service,” Holmes says. “While we have embraced certain technologies such as online quoting and binding of coverage, we also make sure that we are available to answer questions or address any client needs. Bottom line – we enjoy the opportunity to meet our insureds and getting to know them.”
www.ibamag.com
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17/02/2017 10:51:35 AM
ORDINARY PEOPLE GETTING THE EXTRAORDINARY DONE COMMERCIAL AUTO
INTEGRATED INSURANCE SOLUTIONS Ashburn, VA
Valen Analytics’ 2017 insurance industry outlook highlighted the importance of brokers’ role in providing quality advice to ensure customer satisfaction, which is particularly important for small auto insurers. Boasting more than 50 years of combined expertise and licensed in more than 40 states, Integrated Insurance Solutions specializes in comprehensive commercial auto programs, providing risk and claims management services, as well as training and education for clients. The company also offers competitive policies for companies with international exposures. POLLUTION LIABILITY
ENVIRONMENTAL RISK MANAGERS Moline, MI
Recent updates from the EPA concerning cleanup plans, damage payments and Risk Management Program amendments mean that more than ever, companies must be proactive in protecting their businesses from potential environmental damages, regardless of the industry they’re in. For 25 years, Environmental Risk Managers has served as an insurance wholesaler and educator on environmental risks, covering issues such as continuing ubiquity of asbestos, illegal disposal of waste, and pollution resulting from renovations and other third-party activities. The company provides environmental impairment and pollution liability for products, contractors and transportation businesses, which make up 95% of its business. It also offers environmental risk assessments and other risk advisory services.
ARCHITECTS AND ENGINEERS
HALL & COMPANY Poulsbo, WA
Apart from the usual risks faced by architects and engineers, naval architects often have to contend with additional conditions and expenses due to the more nuanced nature of their work, such as having to cross jurisdictional lines while visiting shipyards. The high-risk nature of designing and engineering ships is also a challenge, as recent reports of system and structural failures in the Navy’s multibillion-dollar combat ship program demonstrated. Hall & Company specializes in professional liability insurance for naval and other types of architects and engineers, as well as land surveyors and design professionals. The company also handles P&C insurance needs for these professionals, including inland marine, general liability, workers' compensation and combined policy options. The company has a client base of more than 5,000 professionals and is licensed in all 50 states, working with about 50 different carriers.
Industry-Leading Wholesale Broker & Program Manager MEDICAL FACILITIES
MINTS INSURANCE Millville, NJ
Mints Insurance has been around since 1934, and although it now has operations in 25 states, it still strives to maintain a boutique approach by offering specialized products. A prime example is its program for medical facilities, including behavioral health centers, which helps facilites safeguard their practices in order to effectively care for patients. One of the company’s partners is also active in lobbying for recovery reform nationwide.
Let us go to work for you today. Email your next risk to submit@midman.com where you’ll have access to the world’s foremost carriers and programs.
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FEATURES
SPECIAL REPORT: TOP SPECIALIST BROKERS 2017
HIRED AND NON-OWNED AUTO
GDP ADVISORS McKinney, TX
HABITATIONAL INSURANCE
PREFERRED PROPERTY PROGRAM (JGS INSURANCE) Holmdel, NJ
Preferred Property Program is a wholly owned subsidiary of JGS Insurance, specializing in umbrella policies for community associations such as condos, homeowners’ associations, apartments, hotels and motels. “We started writing condominium associations in the late 1970s and recognized that this was very different from any other type of commercial real estate being built,” says Ken Hager, president of Preferred Property Program. “Our office was one of the founding members of the
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New Jersey Chapter of the Community Associations Institute [CAI], a nonprofit dedicated to the betterment of associations. We have remained very active in this organization, as well as a number of others, to keep abreast of the unusual exposures facing community associations. This has allowed us to develop very specific programs for these unique exposures, and as a result, many brokers across the US come to us for our specialty products. In New Jersey, our parent corporation, JGS Insurance, assists hundreds of communities on a retail basis.” As an MGA representing numerous commercial insurance companies, Preferred Property’s primary specialty is umbrella habitational policies from $1 million to $100 million, but the firm also offers policies for environmental impairment liability, workers’ compensation and equipment breakdown.
For more than 20 years, GDP Advisors has insured pizza delivery restaurants such as Papa John’s and Domino’s, providing not only the usual workers’ compensation and employment practices liability, but also coverage for hired and non-owned auto, as well as employee benefit plans for franchises. “GDP Advisors focuses on emerging risks that face our customers, which makes us stay ahead of the marketplace,” says GDP partner John Powter. “Our challenge is identifying gaps or needs in the marketplace and finding a solution and carrier partner that is willing to underwrite those risks at a competitive price and coverage combination. Take our pizza delivery program: 94% of our drivers have zero violations. If you took that same group of 20,000 drivers to an insurance carrier, they would love it, but because it’s pizza delivery, they won’t talk to you. [The challenge] is finding those disconnects in the marketplace that have a long-term strategic vision in regard to managing risk.”
www.ibamag.com
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17/02/2017 10:51:57 AM
ROOFING CONTRACTORS
FRANK H. FURMAN INC. Pompano Beach, FL
In 1992, Robert Foote launched the roofing division at Frank H. Furman Inc. to provide disciplined risk management and insurance solutions to professional roofing contractors. Today, the agency’s roofing division, Roofing Risk Advisors,
is licensed in 50 states, has 68 employees, and is a trusted insurance and risk advisor for 109 roofing professionals. “The challenge in our specialty is the limited insurance providers that are comfortable with the severity risk inherent in the roofing industry,” says Foote, the company’s president. “There are only a few select providers that have significant market share in this class of business, as the insurance providers typically must have substantial premium scale in order to
absorb severe losses.” The agency is also actively involved in local, state and national roofing contractors’ associations in order to keep its advisors on the cutting edge of the roofing industry’s opportunities and threats. “We have the opportunity to keep our finger completely on the pulse of the marketplace,” Foote says. “The market intelligence we gather on a daily basis allows us to communicate robustly with our roofing contractor clients.”
www.ibamag.com
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FEATURES
SPECIAL REPORT: TOP SPECIALIST BROKERS 2017 RENTAL FLEETS
ASIAN RESTAURANTS
WINERIES AND VINEYARDS
SONORAN NATIONAL INSURANCE GROUP
RICHARD SOO HOO INSURANCE AGENCY
VANTREO INSURANCE BROKERAGE
Scottsdale, AZ
Boston, MA
Santa Rosa, CA
The increasing congestion in cities and rising costs of maintaining a personal car are convincing more people to shift to rental and car-sharing options, which has channeled the focus of insurers and brokers into developing more programs for such businesses. As a nationwide insurance provider, Sonoran recognizes the specific needs of rental operators and their customers, and specializes in programs for rental fleet and garage liabilities, dealer open lot and bonds. The company’s exclusive rental counter products program includes supplemental liability insurance and renter’s liability protection, as well as corporate and licensee master programs and product training.
For more than two decades, Richard Soo Hoo Insurance Agency has been part of the South End, Chinatown and Old Dover neighborhoods of Boston, and remains attuned to and deeply invested in the community, which has a sizable Asian population. The company specializes in arranging coverage for Asian restaurants and even offers interpretation and translation services for Chinesespeaking clients to help foster cultural understanding in business exchanges. Richard Soo Hoo Insurance Agency is part of the Independent Insurance Agents & Brokers of America and the Massachusetts Association of Insurance Agents, as well as a member of the Asian American Civic Association.
Recently, a massive storm swept through most of California, causing flooding in various places, particularly the vineyards in Sonoma County. It was a grim reminder for wineries to make sure they have ample coverage to shield them against losses from natural catastrophes. To address this need, Vantreo Insurance Brokerage has developed a comprehensive wine insurance program in partnership with several leading wine industry associations, which includes property & casualty, workers’ compensation and employee benefits coverage. The company also gives its clients access to an online service platform and maintains a service portal for efficient insurance administration.
MORTGAGE BANKERS
MORTGAGE BANKING INSURANCE GROUP Chicago, IL
Mortgage bankers and brokers, like many other professions, can fall victim to claims and lawsuits. Led by Lee Brodsky, a 30-year mortgage banking insurance veteran, Mortgage Banking Insurance Group was formed in 2004 to serve the mortgage banking community. From fidelity bonds and errors & omissions to cyber liability and employment practices liability insurance, MBIG specializes in arranging coverage for mortgage professionals. The firm is also the exclusive partner of The Mortgage Collaborative, an organization formed to empower mortgage lenders with better financial education, reduced costs, improved compliance and more.
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VENTURE CAPITAL-BACKED BUSINESSES
DIVERSIFIED INSURANCE GROUP Salt Lake City, UT
Founded by former Aon executives, Diversified Insurance Group provides
clients with risk management resources and a total cost of risk approach to insuring high-growth, venture capital-backed entities. The firm builds scalable insurance programs that anticipate the coverage needs of venture-backed organizations, and provides online technology tools that simplify the risk management of highgrowth companies.
www.ibamag.com
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17/02/2017 10:52:11 AM
Levitt-Fuirst Associates Construction & Real Estate are Always
Connected...
Work With an Insurance Broker That Understands
Both.
CONSTRUCTION
LEVITT-FUIRST INSURANCE Tarrytown, NY
“Our roots in construction insurance go back to the establishment of Safety Group 458 of the New York State Insurance Fund in 1951,” says Jason Schicano, president of Levitt-Fuirst Associates. Today, that program provides group discounts to 1,000 construction contractors on New York workers’ compensation insurance. Placing policies in New York is not without its challenges. Schicano points to the state’s unique ‘scaffold law,’ which subjects construction in the state to the highest liability in the country – and the largest insurance premiums. “Insurance carriers are constantly looking for ways to reduce exposure to their insureds’ liability, and construction contractors are constantly looking for ways to cut soaring insurance costs,” Schicano says. “Our challenge is to be informed so we can effectively advise our clients. If you’re a construction contractor in New York, buying cheap insurance usually means you’ve bought a policy that will not protect you from liability when a worker gets injured. Levitt-Fuirst understands the complexities of New York construction insurance and takes the time to educate our clients so they can make informed decisions and avoid surprises.”
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Recognized by Insurance Business Magazine as a Top Specialist Broker for Real Estate & Construction
Levitt-Fuirst Associates, LTD Tarrytown, NY 914-457-4200 www.ibamag.com www.levittfuirst.com
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17/02/2017 10:52:23 AM
FEATURES
SPECIAL REPORT: TOP SPECIALIST BROKERS 2017 LAWYERS’ PROFESSIONAL LIABILITY
FLOOD
AHERN INSURANCE BROKERAGE
THE INSURANCE ADVOCATES
San Diego, CA
Amityville, NY
Established by William Brian Ahern in 1997, Ahern Insurance Brokerage has since become one of the nation’s largest full-service brokerages dedicated to providing insurance solutions to law firms. As a law firm insurance specialist with more than 4,000 clients, Ahern is in the unique position of truly understanding the legal industry. The agency offers a variety of comprehensive insurance products tailored for law firms and has access to more than 40 insurance providers, as well as proprietary programs exclusive to Ahern. Valuing employees has been a top priority at Ahern – the company encourages employees to become experts in their fields. To date, 50% of Ahern’s staff has remained with the agency for more than 10 years.
The professionals at The Insurance Advocates work directly with the National Flood Insurance Program and clients to determine adequate flood coverage. The firm’s Flood Direct National Insurance Program was developed specifically to address the complexities and misunderstandings associated with purchasing flood insurance. “The greatest challenge we face is public education regarding how a flood policy is rated, how it works and, in the event of a claim, how to prepare for and navigate the claims process,” says president Scott Primiano. “Over 50% of the flood policies we review are written incorrectly by brokers not familiar with the proper way to rate a policy. Our mission is to simplify, clarify and compassionately advocate.”
LANDSCAPE CONTRACTORS
TAMMIE PEREIRA INSURANCE SERVICES San Mateo, CA MOTOR CARRIERS
TIP NATIONAL Oklahoma City, OK
By developing long-term relationships within the trucking industry and with retail agents, Tip National has built a specialty practice in motor carrier insurance. The company was established in 2007, and its senior staff has a combined 150 years of experience serving the motor carrier industry. “The commercial auto insurance
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industry has received poor press for being unprofitable; however, no one is looking at the specialty writers that are still producing a profit based on strong underwriting and pricing discipline,” says Tip National president Brenda Watson. “We work with excellent transportation attorneys nationwide to be sure we are current on legal issues affecting our specialty. Continuing education for our staff has always been key in making sure everyone is knowledgeable of the insurance issues facing this specialty, and to provide the best customer service available.”
Tammie Pereira set up her insurance agency after 12 years of working for other companies. Tammie Pereira Insurance Services provides general liability insurance for contractors, catering particularly to landscape contractors. The staff is fluent in Spanish and regularly assists landscapers and other contractors with license requirements and other legal documents needed for them to perform their work. The agency is also part of the Latin American Immigration Association.
www.ibamag.com
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17/02/2017 10:52:25 AM
HABITATIONAL INSURANCE
RIC INSURANCE GENERAL AGENCY Santa Rosa, CA
Built on a foundation of “respect, integrity and communication,” RIC Insurance General Agency is a full-service MGA specializing in insurance policies for apartment buildings. According to vice president Alex Silva, insuring the apartment space has plenty
of challenges. “First, the marketplace is always changing, with carriers exiting the space due to profitability issues and an influx of carriers willing to come into the market to ‘buy’ business,” he says. “This creates an unstable market with respect to coverage, underwriter knowledge, rate fluctuation and additional work for the insured, retail agent and wholesaler.” Silva adds that although habitational claims have diminished over the past two years, prior claims are lingering, hindering good accounts from finding favorable
terms and conditions. “[Our other major challenge] is market availability – carriers with existing books of habitational business are conservative, as it is challenging to make a profit with these exposures,” he says. Despite the market challenges, the team at RIC strives to offer independent agents with the best products in the marketplace to service apartment buildings. “We sell service, communication and the best coverage for our clients over everything else,” Silva says.
www.ibamag.com
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FEATURES
SPECIAL REPORT: TOP SPECIALIST BROKERS 2017 FIDUCIARY LIABILITY
PARADIGM INSURANCE GROUP Oak Brook, IL
Founded in 2014, Paradigm Insurance Group provides fiduciary liability insurance for trustees of the Taft Hartley Trust and public funds, as well as other commercial insurance products for large pensions, welfare, and apprenticeship funds and for small and medium-sized plans. In addition, Paradigm offers welfare fund clients value-added services such as voluntary benefits for plan participants, which offset deductibles and co-pays to help keep plan members on a solid financial basis. “The challenge we face in this niche is that there are too few insurers willing to write fiduciary liability for Taft Hartley/ multiple employer funds,” says senior vice president Thomas Davis. “I built the book of business with a strong focus on networking within multiple spheres of influence and client referrals.”
ENVIRONMENTAL INSURANCE
AMERICAN RISK MANAGEMENT RESOURCES NETWORK Middleton, WI
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COMMUNITY ASSOCIATIONS
CIRACONNECT INSURANCE SERVICES Carrollton, TX
American homeowners remain largely reliant on homeowners’ associations for protection and enhancement of property values, according to a 2016 survey from the Foundation for Community Association Research. As such, associations not only have to contend with operational challenges such as increased crowds and noise pollution
CONSTRUCTION
during certain seasons, but they also need to regularly assess risks of accidental loss and property damages, and gauge safety measures in place. CiraConnect was formed in 2013 as a subsidiary of RealManage, prompted by sizable demand from community association management companies for the back-office services it provided. CiraConnect was created to offer community associations cloud-based software and on-demand services that include writing various insurance lines such as package, D&O, crime, workers’ compensation, flood and umbrella policies.
For more than nine decades, Alliant Insurance Services has catered to the risk management needs of industry sectors far and wide, particularly construction – Alliant’s Construction Services Group
boasts 380 specialists working for clients in the construction industry. “Whether it is redefining how wrap-ups are administered or developing a surety program that releases excess collateral, every insurance and surety placement by Alliant Construction Services Group delivers strategic insights, marketing ingenuity and the latest technology through intelligent collaboration with our clients,” the company says on its website.
As a wholesale environmental insurance brokerage and specialist, one of American Risk Management Resources Network’s top priorities is leading the charge to educate insurance professionals on the little-understood variations of pollution exclusions that can result in uninsured losses and professional malpractice claims.
“The biggest challenge in our product line is uneducated buyers and insurance agents,” says president David Dybdahl. “We offer a unique mix of subject matter expertise, developed from over 30 years in the environmental insurance product line and expert witness work in over $1.5 billion of litigated pollution-related damage insurance claims. We combine this expertise with access on a wholesale basis to exceptionally designed insurance placements. There are more new business opportunities in the environmental insurance product line than at any point in the past 35 years. A good quality EIL placement today can erase decades’ worth of pollution exclusions.” A pioneer in the clean commercial property space, ARMR also designed the first and only program that address the consequences of bacteria, legionella, fungi and mold found indoors.
ALLIANT INSURANCE SERVICES Newport Beach, CA
www.ibamag.com
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17/02/2017 10:52:41 AM
CANNABIS
GREENPOINT INSURANCE ADVISORS Parker, CO
Both medical and recreational uses of cannabis are becoming increasingly common, thanks to legalization efforts in a number of states. The legal cannabis market in North America reached $6.7 billion in revenue for 2016 and is projected to exceed $20.2 billion by 2021, according to Arcview Market Research. Greenpoint Insurance Advisors got its start in 2009 by insuring one cannabis operation when the industry was just blossoming. The agency is a founding member of the National Cannabis Industry Association, and president and owner J.B. Woods regularly speaks to insurance executives on a number of industry issues. “Marijuana companies have experienced numerous bad business deals from different industry segments, resulting in lost revenue, time and a certain amount of wariness,” Woods says. “Our priority is to treat the marijuana industry in a professional manner and regard the client as a valid, respected business. Sometimes people don’t take this industry seriously, and marijuana can conjure up a lot of stereotypes. But the truth of the matter is that our clients are astute businesspeople who have prior experience as owners, executives, attorneys, etc. The industry is interesting but complex, and we enjoy its challenges.”
FILM PRODUCTIONS AND SPECIAL EVENTS
ENTERTAINMENT INSURANCE BROKER New York, NY
Film insurance made headlines recently when Disney made a $50 million claim on the insurance policy it took out on the late Carrie Fisher when she signed on to reprise her role in Star Wars. Entertainment Insurance Broker provides insurance coverage and services for productions throughout the US and across the globe, including everything from annual and short-term productions to cast and crew, and even kidnap & ransom. The company was established in 1995 to assure producers that they can remain on time and under budget with their projects and special events. As a one-stop shop, Entertainment Insurance Broker also offers production-related supplies such as film stock, videotape, digital media and hard drives.
There’s strength in our circle. Choose a NAPSLO member to help you deliver cost-effective, innovative solutions for nonstandard insurance risk. So cost-effective, in fact, that a recent Conning analysis of distribution costs concludes that wholesale distribution does not increase the cost of the transaction to the insured. Count on NAPSLO members to create expertly tailored insurance solutions.
www.ibamag.com
Find a NAPSLO member at napslo.org
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FEATURES
SPECIAL REPORT: TOP SPECIALIST BROKERS 2017 CONSTRUCTION
ARTHUR J. GALLAGHER Itasca, IL
APARTMENT AND COMMERCIAL BUILDING OWNERS
GS INSURANCE SOLUTIONS Santa Clara, CA
A multinational and multibillion-dollar insurance brokerage, Arthur J. Gallagher is one of the world’s largest insurance brokerages, offering retail and wholesale property & casualty insurance and alternative risk services. The company’s US construction practice alone amounts to approximately $100 million in broker revenue and in excess of $1 billion of construction-related premium annually. With more than 500 construction specialists under its roof, AJG’s core national construction team has been working together for more than 25 years. Today, the division serves more than 1,500 clients nationwide, including contractors, developers, and owners of construction and real estate projects.
TRANSPORTATION
MARQUEE INSURANCE GROUP Roswell, GA
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The exclusive endorsed brokerage of the Apartment Owners Association of California, GS Insurance Solutions [GSI] offers programs for apartment owners nationwide. In the two years since its inception, the agency has grown its book and footprint with more than 46 affiliated offices up and down the West Coast and more than $21 million in premium volume. “Because we have a strong penetration in the apartment and real estate space, our clout in the marketplace has allowed us to establish carrier partnerships that others do not have,” says founder and principal S. Anthony Miller, who launched GSI in 2014 after leaving HUB International.
Georgia-based Marquee Insurance Group [MIG] has the benefit of being closely related to a freight brokerage, as well as a factoring company. “With these two companies supporting us, we are able
“We have developed exclusive and semi-exclusive programs specifically for apartment owners, commercial building owners and property managers. One major challenge we face in dealing with apartment and building owners is helping them understand the coverage they have in place and the gaps they think they are covered for. Taking the time upfront with our clients to fully understand and gather all their underwriting information is key to providing the comprehensive solutions apartment owners should have.”
to leverage a large internal database of carriers, all of whom require insurance,” says sales manager Brad Lauderdale. As specialists in insurance coverage for the transport industry, MIG is poised to offer all types of coverage, from commercial auto to cyber liability. “Any insurance agency out there can write a trucking policy,” Lauderdale says, “but it takes a trucking specialist to truly be able to advocate on behalf of the truckers in order to secure a policy that will not only insure a trucker’s assets and business, but also set him up for success in the future by providing knowledge and advice throughout the life of the policy. At Marquee, we pride ourselves on keeping our finger on the pulse of the trucking industry, following the winds of change as they arise and advising our clients accordingly.”
www.ibamag.com
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17/02/2017 10:52:58 AM
NONPROFITS
GATEWAY SPECIALTY INSURANCE Wayne, PA
With the new presidential administration and anticipated budget cuts for certain segments, nonprofits are expecting challenges ahead, which will require even
better governance and risk management. A Berkshire Hathaway-owned wholesale broker, Gateway Specialty Insurance caters specifically to foundations, charities, fraternal clubs, human services, religious organizations, social services and youth services. Gateway understands that nonprofits face a major challenge in finding funding to accomplish their missions; as such, the agency works closely with agencies
to better understand each nonprofit’s mission and create a tailored risk management solution suitable to its budget. “Our goal is to make sure our customers know that we are working for them and that we care,” says a Gateway team member. “We promise to maintain a high level of energy, have a great attitude, never share pain and be easy to do business with.”
www.ibamag.com
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FEATURES
SPECIAL REPORT: TOP SPECIALIST BROKERS 2017 TRANSPORTATION
NATIONAL RISK MANAGEMENT SERVICES Cleveland, OH
For more than two decades, the insurance professionals at National Risk Management Services have focused solely on servicing the insurance needs of the trucking industry. To date, the agency has helped more than 500 fleets and 10,000 owner-operators drive losses down by honing in on three areas: eliminating coverage gaps, risk control services on integrating safety and operations, and using transportation-specific markets. PROFESSIONAL EMPLOYER ORGANIZATIONS
FARM AND RANCH
TOWER SERVICES Charleston, SC
UTILITIES
POWELL & MEADOWS INSURANCE AGENCY Carthage, TN
Established in 1997 as the Travelers agribusiness wholesaler for South Carolina, Tower Services now offers agribusiness products and services to independent agencies throughout the Southeast. The region has long been home to cash crops such as peanuts, tobacco, cotton, soybeans and citrus, and is now a hub for growing and harvesting produce and products. Tower Services carries an appetite for a wide range of land uses, from ‘agritainment’ and estate farms to field crops and vineyards.
Utility districts are exposed to an array of risks, from power outages to water main breaks, that require knowledgeable brokers who can arrange adequate coverage for extreme cases. Powell & Meadows caters specifically to these agencies with its property and liability programs, and also has provisions for contractors’ equipment as well as a business umbrella policy. Aside from utilities, the company also looks after the insurance needs of assisted living facilities and construction companies.
COLLECTION AGENCIES
AMERICAN PEO INSURERS
INTEGRITY FIRST INSURANCE
Tampa, FL
Roswell, GA
The US professional employer organization industry is quickly expanding – gross revenues amount to between $136 and $152 billion, and the sector employs around 2.7 to 3.4 million people. The PEO industry has experienced consistent growth in each of the last 30 years, according to the National Association of Professional Employer Organizations. Because PEO and staffing companies are such specialized industries, the number of insurers that will provide policies for them is very limited. Dedicated fully to servicing all of the insurance, risk management and bonding needs of firms that provide human resources and human capital management, from workers’ compensation and general liability to business planning guidance, American PEO Insurers has been insuring PEOs for more than a decade, offering a wide range of insurance options for the staffing industry.
Integrity First Insurance focuses only on the collections industry, including debt buyers, attorneys and collectors. As the in-house insurance agency of Cornerstone Support, an industry license and insurance provider, Integrity First offers errors & omissions, cyber liability, crime insurance, employment practices liability and more to the collections industry.
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SPECIALTY MANUFACTURERS
SOMERS AGENCY Lorain, OH
For more than 115 years, Somers Agency has offered insurance and risk management services to the people and businesses of Northeast Ohio. Handling both small single-coverage and complex multi-coverage policies, the professionals at Somers are equipped to handle specialized risks – especially within the specialty manufacturing industry, one of the agency’s top specialist niches.
www.ibamag.com
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17/02/2017 10:53:12 AM
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Founded in 2005, Associated Insurance Services specializes in the forest products industry, primarily insuring loggers in Idaho and Montana. Comprising 70% of its business, this niche has helped establish the agency’s prominence in the Northwest US. Associated Insurance Services’ logging book continues to grow and remain profitable. Though logging has historically
had a reputation for being a high-risk industry, increased mechanization and improved safety protocols have significantly decreased both claim severity and frequency in recent decades. However, frequently shifting market appetites necessitate vigilance on the agency’s part to secure and maintain the best carriers. Associated Insurance Services is owned by and is the exclusive representative of the Associated Loggers Exchange, a workers’ compensation company founded by Idaho loggers in 1979. It is also affiliated with the Associated Logging Contractors of Idaho and the Montana Logging Association. WOOD INDUSTRY
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Founded in 1965 as a two-person operation, Harpenau Insurance Agency has grown into a staff of 12. One of the agency’s main areas of specialization today is the wood industry, from logging to the final product. “When we first started in the field, we were getting prospects to understand and believe that we understood the problems and risks of the industry,” says Richard J. Harpenau. “It was a matter of proving to each one that we could deliver the package and options they needed to consider. Now, as the wood industry has gone through many changes in how they process and deliver the product, we too need to prove and confirm that we stay in step with industry trends.”
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MARSHBERRY Securities offered through MarshBerry Capital, Inc., Member FINRA and SIPC, and an affiliate of Marsh, Berry & Company, Inc. 28601 Chagrin Blvd., Suite 400, Woodmere, Ohio 44122 (440.354.3230). Marsh, Berry & Co., Inc. and its affiliates are non-affiliated entities with First www.ibamag.com Insurance Funding, Zywave, 39 Westfield Insurance and Insurance Journal.
17/02/2017 10:53:22 AM
FEATURES
SPECIAL REPORT: TOP SPECIALIST BROKERS 2017 TRANSPORTATION
SCOUT INSURANCE GROUP McKinney, TX
A technology-driven MGA specializing in the transportation industry, Scout Insurance Group has designed web-based rating and underwriting solutions to serve the transportation market. “Scout Insurance Group serves the needs of both agents and insurance companies,” says Clinton Alexander, VP of business development. “Recognizing the need for a more effective and efficient way to serve the transportation market, we’ve designed a revolutionary suite of web-based rating and underwriting solutions, putting you in control of the types of risks you want for increased profitability and greater retention. “Because we focus strongly on transportation,” he continues, “it has allowed us to identify and develop specific solutions that continue to challenge the industry. From a faster, more accurate underwriting and rating process to coverage for operations with more challenging risk factors, our proprietary technology puts more power in the hands of agents and insurers, bringing underwriting to a whole new level.”
ARCHITECTS AND ENGINEERS
FENNER & ESLER Oradell, NJ
COMMERCIAL AUTO
SHEPHERD INSURANCE Carmel, IN
Founded in 1977 by David Shepherd, Shepherd Insurance has become a leading insurance advisor for the franchise truck dealership industry. Shepherd Insurance works with the nation’s leading insurance companies to design innovative products tailored to the unique needs of truck dealerships, including innovative loss prevention services designed to reduce long-term insurance costs, along with the award-winning Competitive Edge Program. “Because truck dealerships are such a niche-driven business, insurance carriers aren’t as knowledgeable in this industry,” says president Jeff Kweder. “Shepherd Insurance has assembled a team that specializes in providing, servicing and underwriting customized insurance products for the franchise truck dealership industry. As an independently owned and operated agency, we have the flexibility to put our clients’ truck dealerships first. We create a partnership with each client through earned trust, integrity, knowledge and experience.”
LAWYERS’ PROFESSIONAL LIABILITY
GARDEN STATE PROFESSIONAL INSURANCE AGENCY
CATASTROPHE INSURANCE
RISK INSURANCE BROKERS San Diego, CA
Freehold, NJ
Founded in 1923, Fenner & Esler has become one of the country’s largest providers of professional liability insurance for architects and engineers. From startups to national architectural firms, Fenner & Esler offers comprehensive risk management solutions in 42 states.
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With more than 1,400 New Jersey law firms in its book and more than 20 years of experience in professional liability, Garden State Professional Insurance Agency serves as a one-stop shop for legal malpractice insurance with admitted programs in New York and New Jersey.
The US experienced 19 floods in 2016 – more than any other year on record – the worst of which hit Louisiana in August. With two locations in California and Florida, Risk Insurance Brokers is dedicated to providing catastrophe insurance (earthquake, wind and flood) for multiple classes of property.
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CONSTRUCTION AND DESIGN
EPIC INSURANCE BROKERS AND CONSULTANTS San Francisco, CA
Of EPIC Insurance’s various programs, the company’s top specialization is design professionals such as architects
and engineers, design/builders, construction managers and specialty contractors engaged in trade and environmental remediation. Composed of a team of industry specialists, many of whom have worked in construction and design, EPIC is able to tailor insurance to meet the unique needs and challenges of the industry, such as limited carrier markets, environmental issues, evolving risks, legal issues and more.
“Construction and design is a dynamic, innovative and constantly evolving business,” says Jeff Parkhurst, principal of EPIC Construction & Design Solutions. “To effectively serve and support clients in this specialty area, one has to constantly build knowledge and expertise, stay alert to future trends and opportunities, and move forward with new, unique and creative solutions – or you simply get left behind.”
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FEATURES
SPECIAL REPORT: TOP SPECIALIST BROKERS 2017 MARINE
GLOBAL MARINE INSURANCE AGENCY Traverse City, MI
Located in Northwest Michigan, Global Marine Insurance Agency was formed
in 1989 to serve the marine community. The team at GMIA has a combined 75 years of experience providing boat, yacht, personal watercraft and commercial marine insurance. Licensed in all 50 states, GMIA has also aligned with surplus lines carriers to enable the agency to write insurance off the shores of the US.
AGRIBUSINESS
BUCKMAN-MITCHELL INC. Visalia, CA
Today's agribusinesses find themselves dealing not only with drought and other climate conditions, but also labor issues and the need for new technology to improve farming, storage and distribution. Based in one of the most productive agricultural regions in the world, Buckman-Mitchell provides crop insurance and other commercial programs for agribusinesses, and also has a handful of special programs for members of groups such as the Allied Grape Growers and California Fresh Fruit Association, as well as citrus packing houses and dairy operations. The company is licensed in 43 states, and its clients operate across multiple states. FINE ART
ART INSURANCE NOW New York, NY
MEAT PROCESSING
INSURANCE ASSOCIATES INC. Norfolk, NE
Nebraska is widely considered one of the nation’s leading meat producers, and was also recently tapped by the USDA’s National Institute of Food and Agriculture to lead a project to investigate E. coli strains in beef. Family-owned, Nebraska-based Insurance Associates Inc. provides extensive coverage for meat processors, including retail meat stores and butcher shops, as well as processing plants and wholesale and packing operators. Its
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program covers property, general liability, workers’ compensation and even product recall. The company boasts a national presence in the meat processing industry and has been in business for more than 40 years. Insurance Associates Inc. is also a member of the American Association of Meat Processors, as well as statelevel associations. “The meat industry is among the most highly regulated industries in the country, and with good reason,” says Insurance Associates Inc.’s Cole Williams. “The challenge, however, is that changing regulation often affects the day-to-day operations of our customers, which results in financial pressures that our program seeks to alleviate.”
Art Insurance Now serves artists, collectors, dealers, auctioneers, private exhibits, galleries, museums and other institutions that invest in fine art. The company also provides special coverage for fine art reference libraries, wine collections and musical instruments. Art Insurance Now offers policies for different types of art, jewelry and collectibles, and extends cover not only for art that is permanently placed, but also art in temporary storage and in transit, whether by land, water or air. As the company explains, “insuring art is more than just protecting against damage or theft.” Recognizing the cultural heritage in these pieces that make them invaluable, the company includes options such as waivers of subrogation, host liquor liability, and employment practices and legal liability.
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EXHIBITS, CONFERENCES
7.25X4.75 AND TRADE SHOWS JGS-PPP Umbrella Program ad RAINPROTECTION INSURANCE JOURNAL
INSURANCE SOLUTIONS Dix Hills, NY
Rain or shine, the show must go on – Rainprotection Insurance Solutions offers not only weather-related policies, but also coverage for trade show exhibitors and conference participants. “Engineering good risk management is the key to being successful in our specialty,”
says founder and CEO Robert Weber. “Our clients are national associations, large event management firms, as well as various event organizers. Each one of them relies on our experience and expertise to provide the proper coverage for their events.” Rainprotection Insurance offers three main types of coverage: event cancellation, general liability and exhibitor general liability. In addition, the agency offers attendee registration insurance that covers companies if a certain amount of attendees can't make it, along with prize indemnity insurance, tenant user liability and more. Rainprotection also provides comprehensive service and detailed reports to organizers to help them collect and keep tabs on customers’ COIs and compliance, and arrange for trade show insurance as necessary.
Our Umbrella Programs Give You More Options Preferred Property Program gives you broader, more flexible coverage with a range of limits Fast service and more security are what you get with Preferred Property Program. Our umbrella liability policies are written by XL Insurance with Chubb Insurance Group for excess layer – two of the industry’s most highly rated carriers.
• • • •
A subsidiary of
JGS INSURANCE
Celebrating Our 95th Year
Options of $5 to $50 million in umbrella coverage. Hi-Rise apartments up to 35 stories eligible. Developer-sponsored board eligible. Excess of D & O General Liability, Auto Liability, and more.
Contact us for a quote: www.umbrellaprogram.com
888.548.2465
info@umbrellaprogram.com
Service is our specialty; protecting you is our mission ®
960 Holmdel Road, Holmdel, NJ 07733
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FEATURES
SPECIAL REPORT: TOP SPECIALIST BROKERS 2017 SENIOR LIVING FACILITIES
BOUCHARD INSURANCE Clearwater, FL
Well known as a haven for snowbirds and senior citizens, it’s no surprise that Florida is home to the highest percentage of people over the age of 65 in the US. With locations throughout Western and Central Florida, Bouchard Insurance has carved out a niche serving senior and assisted living facilities and hospices. Today, the agency provides risk management and insurance services to more than 350 facilities nationwide, representing more than 40,000 licensed beds. Despite the challenges in the space,
TECHNOLOGY
JJ WADE & ASSOCIATES Davidson, NC
Insurtech is quickly pushing the insurance industry into greater innovation and technological advancements – and it’s not alone. Many other industries are actively investing in and developing new technology to leverage success in today’s ever-changing marketplace. JJ Wade & Associates’ ability to service its tech clients is heightened by the relationships it has built
such as shrinking reimbursement rates and the lack of a qualified workforce, the specialist senior living team at Bouchard
is committed to understanding the issues facing the senior living industry and focusing on the needs of its clients.
HABITATIONAL INSURANCE
with other agencies as a member of TechAssure, a nonprofit founded in 2001 to provide training and education for risk management professionals who specialize in the technology, life sciences and digital media industries. “Unfortunately, most agents/ brokers do not have the knowledge to properly address the risks associated with technology,” the agency says on its website. “As a member of TechAssure, our capabilities are expanded through the collective efforts of other members, who share best practices, results, and most importantly, benchmarking.”
MJI SPECIALTY PROGRAMS Overland Park, KS
As a division of Med James Inc., MJi Specialty provides commercial property brokerage services and class-specific proprietary programs, specializing in habitational insurance. The firm’s habitational insurance program provides policies to apartments, condos, homeowners’ associations and student housing. MJi Specialty’s program offers property, general liability, equipment breakdown, and even earthquake and flood coverage, with up to $100 million in total insured value.
SERVING INDEPENDENT AGENTS SINCE 1930
(800) 299–9421 WWW.QUIRKCO.COM SERVING INDEPENDENT AGENTS SINCE 1930
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TS
COM
TS
TRANSPORTATION
TRUENORTH INSURANCE AND FINANCIAL STRATEGIES Cedar Rapids, IA
Formed 16 years ago by a merger of Davis Jones Lamb Insurance, Insurance Service
Corporation and Verhille & Associates, TrueNorth is the largest financial services firm of its kind in Eastern Iowa. Offering a wide range of insurance solutions to various industries, TrueNorth’s primary focus is the transportation industry, which comprises more than 40% of its book of business. TrueNorth offers risk management strategies and solutions for transport companies, as well as individual driver solutions. “TrueNorth clients face great risk and big
opportunities,” says TrueNorth president and CEO Duane Smith. “They seek leadership, integrity and real results. For over a decade, TrueNorth has met and surpassed our clients’ needs by providing innovative strategies and a personal connection to those we serve. TrueNorth has earned the opportunity to work alongside some of the highest-quality transportation companies in the nation to architect, advise and administer enterprise risk management strategies.”
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FEATURES
SPECIAL REPORT: TOP SPECIALIST BROKERS 2017
LAWYERS’ PROFESSIONAL LIABILITY
DANIELS-HEAD INSURANCE AGENCY Austin, TX HABITATIONAL INSURANCE
MACKOUL & ASSOCIATES Island Park, NY
Long Island-based Mackoul & Associates has provided custom insurance coverage for more than 25 years to property owners and managers of condos, cooperatives and more in New York and New Jersey. “Initially we developed relationships with property management firms,” says
CONSTRUCTION
SIS WHOLESALE INSURANCE SERVICES Carlsbad, CA
Since launching the Preferred Contractors Insurance Company Risk Retention Group [PCIC] in 2006, SIS Insurance Services’ program has grown exponentially. Today, the program has expanded into 33 states and has more than 50,000 members. SIS
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president Edward Mackoul. “If a firm manages 50 buildings, then that gives us an opportunity to possibly provide quotes to 50 community associations. “A few ways that we have been able to differentiate ourselves from our competition is that we inspect every risk before providing a quote,” he adds. “Every insurance company has life safety requirements, so if we know what a building contains prior to working on it, we can submit it to companies who shouldn’t have many issues once coverage is written.”
also offers a California contractors’ licensing bond, home inspection and property preservation general liability/E&O packages, and an inland marine program. “We try to leverage challenges as opportunities for growth,” says Matt Roselle, who oversees the corporate development and wholesale division at SIS. “We have chosen to focus our attention on the smaller contractor marketplace, which minimizes undulations within the construction and housing markets, while also mitigating our overall exposure to claims severity.”
In December, rapper 50 Cent was awarded $14.5 million in a malpractice lawsuit he filed against the law firm that represented him in a 2014 lawsuit – a high-profile reminder of the reality that even lawyers need lawyers sometimes. Since the 1970s, Texas-based Daniels-Head Insurance Agency has focused on protecting lawyers against the possibility of malpractice claims. “I think one of the more outstanding challenges in our specialty is educating our clientele with respect to the coverages,” says Maureen Levy, who handles corporate communications for the firm. “Claims-made policies are not cookiecutter policies … it is important for law firms to not only consider the bottom-line premium, but also take time to analyze the coverages, or lack thereof, to assure that the firm will have the coverage it needs at the time of a claim.” Underwritten by Zurich, Daniels-Head offers coverage in 23 states for sole proprietors and law firms with one to 99 attorneys, attorneys who practice law part-time, and even for law professionals who moonlight as attorneys.
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OUR MISSION STATEMENT IS QUITE SIMPLE. OUT-EXECUTE.
If your client has a complex risk situation, you don’t have to go it alone. Our specialty risk professionals have deep experience with the toughest risk placements. We not only design creative solutions for all size accounts but repeatedly out-execute the competition. Contact your RT Specialist at www.rtspecialty.com.
r tspecialty.com R-T Specialty, LLC (RT), a subsidiary of Ryan Specialty Group, LLC, provides wholesale brokerage and other services to agents and brokers. RT is a Delaware limited liability company based in Illinois. As a wholesale broker, RT does not solicit insurance from the public. Some products may only be available in certain states, and some products may only be available from surplus lines insurers. In California: R-T Specialty Insurance Services, LLC License #0G97516. Š 2017 Ryan Specialty Group, LLC
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17/02/2017 10:54:16 AM
FEATURES
SECTOR FOCUS: CYBER
Ready, set, cyber The cyber insurance space is growing exponentially as criminals adopt more sophisticated methods. For brokers and agents, it’s time to step up
IT’S LITTLE wonder that cyber insurance is the fastest-growing type of coverage in the insurance industry. Not only are cyberattacks and breaches occurring with alarming regularity, but the nature of cyber threats is also changing. Just a few years ago, the main targets were corporate giants, banks and healthcare organizations, but in 2017, organizations of all sizes across all industries are just as likely to be hit with a cyberattack that targets their data, affects their IT systems or steals funds.
HOW DO CYBER CRIMINALS STRIKE?
Cybercrime 68% Hack/activism 15% Cyber espionage 12% Cyber warfare 9%
Source: Deloitte
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In response to the increased threat, more organizations are recognizing the value of a cyber policy. Overall market penetration is estimated at around 20% to 40%, although that figure drops to around 15% to 20% for small and mid-sized companies. “Smaller companies are recognizing they have a much larger risk because the sophistication of their IT departments and their budgets are typically lower than a large company, which can effectively protect against and respond to a breach,” explains Elissa Doroff, vice president of underwriting and product manager for cyber and technology at XL Catlin. Five years ago, the companies buying cyber coverage were typically in data-rich industries like healthcare, retail, hospitality and gaming, and education. But as cyber breaches become more common, different types of organizations are now investing in cyber coverage. Doroff has noticed a particular increase in the number of manufacturing and utility companies buying coverage. “These companies are now realizing that, although they don’t have a lot of data, they’re facing a denial-of-service attack risk or disruption that could cause them significant financial harm,” she explains. “As far
as industries go, we have seen a big change. Although professional services firms have been buying cyber coverage for a while, we’re now seeing an increase in their purchases.”
The facts on cybercrime According to PwC’s 2016 Global State of Information Security Survey, cyberattacks on organizations increased by 38% last year. Software and tools designed to prevent cyber breaches are struggling to keep up with the increasingly sophisticated methods used by cybercriminals. And increasingly, smaller organizations are finding themselves in criminals’ crosshairs: Net Diligence’s sixth annual Cyber Claims Study found that 87% of claims were submitted by organizations with revenues of less than $2 billion. The Net Diligence report also found that the average number of records lost in an attack was 2.04 million, but it’s not just the amount of records compromised that leads to loss. The firm highlighted one event that involved a single business record being stolen, which resulted in estimated costs of between $1.5 and $2 million. Net Diligence revealed that hackers were the most common cause of cyber-related loss (23% of cases), followed by malware/ virus (21%), staff mistakes (9%) and rogue employees (7%). The latter is a fairly new addition to the cybercrime equation, although Net Diligence reported that there was some form of insider involvement in 30% of all claims submitted. Healthcare was the sector most commonly breached (19%), followed by professional services (13%). “Ransomware is the fastest-growing type of cyber risk,” Doroff adds. “Typically, the extortion demands are quite small, but they still present a threat to core operations and can lead to a sustained network outage.” The rise in ‘rogue employee’ claims is a worrying trend. In many cases, these employees have recognized the value of the data the company owns and have instigated
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an internal hack or breach. In some cases, these employees use the threat of spreading the data as a way of negotiating a better severance package. “We’re seeing an increase in claims where employees who are on disciplinary action, or have been terminated or are leaving to go to a competitor, are either wiping or stealing data,” says Kari Stern, claims manager at NAS Insurance Services. “Ransomware has now progressed to the point that certain strains of the virus are also exfiltrating data.”
Inside a cyber policy A typical cyber policy provides two types of coverage. First-party coverage responds to the immediate crisis management of the breach
Ransomware is the fastest-growing type of cyber risk. Typically, the extortion demands are quite small, but they still present a threat to core operations Elissa Doroff, XL Catlin response, while third-party liability protects against class action litigation. The first-party portion of the coverage includes the cost of conducting a forensic investigation to figure out what type of information was compromised and how. It also covers the notification costs associated with informing individual
clients or vendors whose information may have been compromised. The first-party policy also covers costs associated with public relations, which are often required for larger companies, as well as business interruption, which is crucial for manufacturers and other industries that deal with a
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FEATURES
SECTOR FOCUS: CYBER
CYBERCRIME: A GROWING PROBLEM WORLDWIDE Incidents per year
3,500 3,000 2,500 2,000 1,500 1,000 500 0
2010
2011
2012
2013
2014
potential risk of disruption to supply chains. “The most important part of first-party coverage is the cost to retain a law firm – often referred to as breach coaches – who will inform the insured of all of their obligations,” Doloff says. “The breach coach will also quarterback the operations with the forensics, public relations and credit monitoring consultants.” Carriers are adapting their policies to the ever-changing cyber landscape, and increasing numbers of carriers and their partners are also starting to roll out risk management services focused on education and prevention. “The services that come with an insurance policy are more valued than they were in the
tational or brand damage, macroeconomic developments, and even changes in legislation and regulation. As a result, carriers that weren’t previously in the space are rushing to start a cyber insurance practice. This influx of carriers is leading to two outcomes, according to Pascal Millaire, vice president and general manager of cyber insurance at Symantec. “Firstly, the market is getting more competitive, and therefore pricing is getting is also more competitive,” he says. “Secondly, there is real demand for cyber insurance talent in the industry, and insurers are struggling to recruit the appropriate number of product managers and underwriters to meet the demand.” The role of the insurance industry is inte-
Records breached per year
The services that come with an insurance policy are more valued than they were in the past. The idea of cyber risk management is now an important part of strategic decision-making for a company
1.2bn 1bn 800m 600m 400m 200m 0
2010
2011
2012
2013
2014
Cost per record breached
$160 $140 $120 $100 $80 $60 $40 $20 $0
past,” says Jeremy Barnett, SVP of marketing at NAS Insurance Services. “The idea of cyber risk management is now an important part of strategic decision-making for a company.”
Capitalizing on the cyber boom
2010
2011
2012
2013
2014 Source: Deloitte
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Jeremy Barnett, NAS Insurance Services
It’s fair to say that the cyber insurance space is booming in 2017. New insurance carriers are entering the market every month for one simple reason: demand. The recently released Allianz Risk Barometer 2017 revealed that cyber risk is third biggest concern amongst corporate clients in today’s market. In fact, cyber risk is now perceived to be more perilous than traditional insured risks like fire, natural catastrophes, repu-
gral in the battle against cybercrime, and brokers play an important part in ensuring their clients are properly covered. In recent years, awareness around cyber risks has grown exponentially throughout the broker community, but in order to really differentiate themselves, it’s crucial for brokers to get fully educated on the cyber products on offer. This market is young, and policy wordings differ, so brokers must possess detailed expertise to successfully serve their clients. “The idea that one cyber insurance solution fits all does not exist,” says Dan Burke, cyber and technology product head at Hiscox USA. “Knowing what’s available is incredibly important.
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BE BOLD. BE STRONG.
PRE-BREACH RISK MANAGEMENT
EXPERT CLAIMS HANDLING
RECOVERY & RESTORATION
It’s more than just a great cyber policy. As the number of cyber threats continues to grow, a cyber insurance policy is only one part of the solution. NAS’ state-of-the-art cyber liability solution also includes robust risk management and expert breach response services. With over 20 years of experience developing cyber liability programs and deep expertise resolving thousands of cyber claims, we are the cyber risk experts, proficient in every facet of cyber support. We help you understand known cyber risks…and anticipate what’s coming next. With NAS you’re more than insured, you’re prepared.
nasinsurance.com/cyber
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17/02/2017 10:15:03 AM
FEATURES
AGENCY INSIGHT
Troxell Partner John Eck Jr. explains how Troxell has maintained strong client partnerships and an impressive 90% client retention rate as it celebrates its 130th year in business
IBA: Tell us about Troxell. John Eck Jr.: This is our 130th year in the business. We were a single-location business in Springfield, Illinois, until 2005. Now we have seven different locations and over 130 employees. Today, we have six shareholders, and in January of last year, we added our first female shareholder. Through the years, we have expanded our geographical footprint and brand, and we continue to bring on many good partnership agencies and agents into Troxell.
IBA: What has been the key to the growth and success of your employees? JE: We always make sure we have a place where our people can grow professionally and personally. Developing an HR team and employee development program has been a key factor to our agency’s growth. Insurance is a partnership in someone’s success, whether it is with a business or individual. We want our employees to be knowledgeable, involved and collaborative with our clients while bringing expertise about the industries where our clients operate. The more we can train and educate our people, and allow them to better themselves, the better job we do. In the insurance industry, there are a lot of places that try to commoditize what we sell. We know the role of an agent is to make sure that our clients know and understand
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what they are purchasing.
IBA: What’s the secret behind your impressive 90% client retention rate? JE: Our agency firmly believes we have a role for our clients. People’s lives change, companies grow and shrink, and every step of the way, they have different needs. If we are not actively serving our clients and strengthening our relationships, then we are not doing our job. I think that’s where we have done a better job for our partners – and it all ties back to retention. In addition, our key carrier partnerships bring strength and stability to our clients that they can rely on. This rounds out the whole relationship and makes it a true partnership that is impenetrable.
IBA: How has Troxell prepared for the new presidential administration?
JE: On top of most people’s minds is healthcare. The Affordable Care Act was a major piece of legislation that affected a third of our revenue base in terms of the clients we serve, whether it is group or individual health. The ACA totally changed our role, bringing us into more of a business relationship with our clients. I think as any administration comes and goes, regulations and the business environment are affected. Our customer relationship model makes sure our people are talking to our clients proactively about the changes that a new administration might bring – and those conversations are already in full swing. We don’t know what will happen with legislation such as the Affordable Care Act, but we do know that we will play a part in trying to assist our clients to make sure they comply with any new regulations that are put in place. Any time a new administration comes in, there is some apprehension and
TROXELL GIVES BACK Community involvement runs deep throughout Troxell’s organization. Of its 138 employees, members of Troxell’s staff sit on more than 45 boards in Sangamon County, where the agency is headquartered. As donors to the United Way, Troxell employees welcome the friendly competition among departments that fundraising brings. In addition, Troxell supports different charities monthly with funds raised from casual jean days as well as numerous donations and sponsorships throughout the year. “Our people truly care for our community,” says John Eck Jr. “I think that if they are interested in our community and the people who live around us, that ultimately carries through to how they care for our clients on a day-to-day basis.”
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“If we are not actively serving our clients and strengthening our relationships, then we are not doing our job” excitement, but we will be here along the way to figure it out for our clients and stay ahead of any new changes or updates.
IBA: What are Troxell’s plans for 2017? JE: In 2017, we are looking to expand the products and services we offer. At the start of this year, we began marketing human resource products that we knew our clients truly needed. A majority of our clients have fewer than 100 employees with no full-time HR team. Our team developed a solution that will help our clients with compliance, training, healthcare and benefits. We are also developing other products and services, such as safety and business programs, so we can assist clients in areas where they need help, and where it will be an extension of the insurance plan we’ve already put in place. Additionally, one of our biggest changes in 2016 was to separate the roles of key leadership so they have a focus in different areas of our business. Working each of these pieces independent of each other helps us make sure that we will have a successful 2017. We are confident that it will be a big year for us.
FAST FACTS: TROXELL
Commercial and group benefit specialty expert programs Education
Hospitality
Construction
Healthcare
Financial services
Automotive
Municipalities
Agriculture
Nonprofits
Year founded: 1887
Number of offices: 7
Number of employees: 138
Leadership: Michael Aiello, president; Jennifer Call, John Eck Jr., Christopher A. Leming, Todd R. Sowle and David A. White, senior vice presidents
Headquarters: Springfield, Illinois
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FEATURES
SECTOR FOCUS: ARCHITECTS & ENGINEERS
Engineer a niche in A&E The design and construction of new projects continues to increase after the Great Recession, giving insurance agents a good opportunity to target a growing niche
INSURANCE FOR architects and engineers covers a multitude of professions that provide advice, design and consulting services. The architect’s side of the space encompasses a wide range of classes that include landscape architects, interior
at different stages of a construction project. “Architects & engineers classes also spread to the designing of roads, bridges and other infrastructure,” says Scott Kenny, SVP and architects & engineers program manager at Freberg Environmental. “We tend to stay on
“Now that revenues are picking up for architects and engineering firms, we’re expecting to see an uptick in claims in the next couple of years” Jim Bechter, Tokio Marine HCC designers and design/build organizations. On the engineering side, coverage is designed for firms and professionals who provide electrical engineering, mechanical engineering, civil engineering, HVAC engineering, environmental consultancy, construction management and geotechnical land surveying, just to name a few. Put simply, the space involves a broad group of professionals who come together
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the construction side of the space and not get involved with covering a firm that does things like nuclear engineering – that’s a different classification.” As America has continued its recovery from the economic meltdown of 2008, the number of new construction and infrastructure projects has steadily risen. The increased activity is not going unnoticed by carriers: As construction levels have
increased in the past five to 10 years, carriers have flocked to the A&E professional liability marketplace in an attempt to cash in. As a result, the space is now very competitive – there are more than 60 markets underwriting A&E insurance across the country. Although the sector is dominated by the big players, many other carriers have entered the space to specialize in certain subsets and types of accounts as the economy grows and opportunities arise. “The number of carriers has grown faster than the pool of professional exposures, so that’s created a classic supply-and-demand curve that’s made it a very competitive market from an insurer’s standpoint and put pressure on pricing,” says Jim Bechter, SVP of Tokio Marine HCC’s professional lines group. “Carriers jumped into the market after the recession, and now that revenues are picking up for architects and engineering firms, we’re expecting to see an uptick in claims in the next couple of years.”
What’s covered All firms and individual professionals who provide services under the architects & engineers umbrella have a liability risk exposure that could have devastating financial and reputational consequences. If not properly managed with comprehensive insurance coverage, an organization working in the A&E space could face a claim that forces them to shut down. “A standard policy provides professional liability coverage, covering claims that the insured was negligent in the performance of their professional services,” Bechter says. “That’s the main type of coverage, and it also includes bodily injury, property damage and economic loss.” In other words, if an engineer or designer creates or builds something that fails because of their actions or decisions, the A&E policy provides coverage.
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IBA 1/3 Page 1.12.2017B.qxp_Layout 1 1/12/17 11:40 AM Page 1
It’s also becoming increasingly common for A&E policies to include some type of pollution liability coverage. This adjunct feature provides coverage for a designer or builder who is alleged to have negligently caused pollution or environmental damage during the course of performing their professional services. In the past few years, many A&E policies have also added coverage related to network security and privacy exposures. These policies cover an insured who has been the victim of an IT breach that resulted in the loss of data that led to allegations of negligence. Increasing numbers of claims are being made by organizations that have been made vulnerable when another firm or indi-
consultation space, A&E insurance plays an integral role in day-to-day operations. Many contracts now require a firm or individual to have a policy in place before they can even be considered for a project. Also, without comprehensive coverage, a firm’s directors or proprietors risk putting their personal assets on the line if they are deemed to have been negligent. Brokers have an important role to play in ensuring clients in the space are properly covered. Architects and engineers often work in pressurized environments under tight deadlines and need a broker or agent who understands their exposures and needs. Brokers should build strong ties with clients and then work closely
“A&E clients look for value-added services, and brokers should have the expertise to help them with contracts and continuing education credits” Scott Kenny, Freberg Environmental vidual has had their computer system, email or private information breached or stolen. “It mirrors what has been happening within the businesses of A&E insureds, where everything is moving to computers,” Kenny says. “Firms are now hosting websites to put plans online in order to share and edit project data, which makes things a little riskier when you have people trying to access the data. An A&E policy is not really built for someone designing software and websites, but policies should protect the professional services of the insured as they use those sites.”
Building relationships For clients working in the design, build and
Freberg Environmental A&E Architects & Engineers
EIL Environmental Impairment Liability
HMT Hazardous Materials Trucking
O&G Oil & Gas
FFX Follow Form Excess
A&E Architects & Engineers ECC Engineers, Consultants & Contractors HMT Hazardous Materials Trucking O&G Oil & Gas FFX Follow Form Excess ECC Engineers Consultants & Contractors EIL Environmental Impairment Liability
with them on the project-specific policies and contractual and insurance issues that are fundamental to business success and security in the modern market. By taking the time to understand the challenges architects and engineers face in their relationships with clients, contractors, and other professional and government bodies, brokers have a good opportunity to become trusted leaders in a growing and lucrative space. “Brokers should try to offer services outside just the policy and the price of the policy,” Kenny says. “A&E clients look for value-added services, and brokers should have the expertise to help them with contracts and continuing education credits.”
Need environmental coverage? At Freberg Environmental all you have to do is pick your program. From Architects & Engineers, to Environmental Contractors, and Products Pollution, we have the environmental insurance program you need. For over 25 years, Freberg Environmental has become the “go-to” environmental market for innovative solutions to all kinds of environmental risk. We have earned our reputation by providing the fast, friendly and knowledgeable service you have come to expect.
Freberg Environmental Insurance
(800) 377-4152 www.feiinsurance.com In CA dba: FEI, Insurance Services www.ibamag.com
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F
FEATURES
SECTOR FOCUS: ARCHITECTS & ENGINEERS
2 CONSTRUCTION BOOMING Growth in construction spending
Nonresidential Total Commercial Total Office Retai & Other Commerciall Hotel
E d e a
Industrial Total Institutional Total
O p c m
Health Education Religious
WHAT A&E INSUREDS NEED FROM THEIR BROKERS Architects and engineers need brokers who have the ability to identify and address the unique circumstances they face, including:
Public Safety Amusement & Recreation -4% 0%
4%
2016 % Change
8%
12%
16% 18%
2017 % Change
lack of prudent risk management principles and procedures the risk of negligent acts, errors and omissions risks arising from contractual undertakings claims made many years after a project has been completed failure of the policy to cover prior acts without any time limitation frivolous claims and countersuits arising from fee disputes
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J
R t
V
Source: American Institute of Architects
The A&E space is just as competitive for brokers as it is for carriers. Although a couple of groups of brokers dominate the A&E market, there is space for others to grow their businesses on both the retail and the wholesale side. In order to differentiate themselves from the crowd, Bechter suggests that brokers become familiar with the professionals operating in the
F to n
A&E space by joining a local chapter of the American Council of Engineering Companies or the American Institute of Architects – it’s a surefire way to get direct contact with prospective insureds. Brokers should also take care to submit thoroughly completed, updated applications when submitting claims, including a project list, which shows what the firm is
working on, as well as claims history and resumes of the key professionals in the firm. “An underwriter always wants that sort of detail,” Bechter says. “Any unique information about the firm that a broker or agent can add in a cover letter that adds value will also be appreciated by an underwriter. It lets them know a broker has done his or her due diligence.”
www.ibamag.com
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IBA Floo
FLOOD RISK 2017 TEXAS
MAY 11, 2017 DOWNTOWN CLUB AT HOUSTON CENTER HOUSTON, TX
Each year, Texas experiences cases of severe flooding that result in devastation and costly losses. With the frequency of these catastrophes expected to rise, it's critical to stay informed to better position clients ahead of risk. On May 11, Flood Risk Texas comes to Houston, and will bring together key perspectives on the state of the strained NFIP, forecasts for private market coverage options and insight into leading innovations in risk modelling and management tools to position insureds ahead of perils. Flooding poses a critical risk to Texas—don’t miss this unique opportunity to access the latest developments in flood risk and insurance, and to network with key stakeholders. Join us at the Downtown Club at Houston Center on May 11.
Register before March 1 to save $300!
• Network with like-minded insurance professionals • Gain insight to the NFIP, upcoming flood legislation and the impact on you • Learn how to better explain and sell flood insurance to your clients • Understand different types and causes of flood • Get the latest updates on flood mitigation strategies
Visit floodrisk.ibamag.com/texas for more information or contact ATHEENA LOPEZ 303 800 5877 Atheena.Lopez@keymedia.com
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IN PARTNERSHIP WITH
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FEATURES
BURNOUT
Avoiding burnout Leadership expert Karen Gately explains the six typical drivers of burnout in business leaders and offers practical tips to help you avoid them
HAVE YOU ever reached the point where you felt like you simply couldn’t go on? Have you found yourself losing concentration and lacking the motivation to do the things necessary to drive the performance of your business? It’s common for CEOs and senior leaders to experience periods of disengagement from their roles and teams due to the extreme exhaustion they feel, and many fail to recognize the state of burnout they have reached. Burnout is a state of emotional, mental and physical exhaustion caused by excessive and prolonged stress. Typically reflected in our energy and behaviors, burnout unquestionably undermines any CEO’s ability to lead a thriving organization. Despite its devastating impacts not only on job performance but also on quality of life, many of the senior leaders I work with fail to take the necessary steps to avoid reaching this state of exhaustion and disengagement. The following are six typical drivers of burnout in business leaders and some tips for how to avoid them.
1
Overcommitting
There are always more things you could do in any given day. But the reality is that it isn’t possible to explore, plan and execute all of the ideas and even priorities you are likely to have. Your ability to invest energy and resources wisely depends on your ability to know what matters most. While deciding what you will do is important, arguably more so is deciding what you won’t.
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TIP Create a business plan on one page. Identify the priorities that will have the greatest influence on your success, and anchor your focus, and that of your team, to them. Review progress regularly, and identify ways in which you need to bring focus back to these critical objectives. Strike things off your to-do list that add little value and distract you from your main mission. Learn to say no.
2
Avoiding
The need to make tough decisions and have difficult conversations is inevitable when leading a team or organization. And yet so many of the leaders I work with avoid them.
Strike things off your to-do list that add little value and distract you from your main mission. Learn to say no The consequence of failing to address issues is continuing to live with the stressful impacts of underperformance and uncertainty. Fear of having the conversations or implementing the actions necessary to drive change is common among leaders who experience burnout.
TIP Work with someone who is able to guide you in shifting the thoughts and feelings that cause you to hesitate to do what is necessary. Find a mentor or coach you trust to challenge your thinking and hold you accountable for dealing with issues that arise.
3
Executing poorly
Even when decisions have been made, executing them can be difficult. Most often what I observe are senior leaders who recognize what needs to be done but fail to act decisively. These leaders fail to apply disciplined approaches that ensure priorities are achieved. Commonly, a lack of planning, review, and deliberate decision-making about priorities and resource allocation leads to costly mistakes and wasted resources. The pressure and workload demands on leaders and teams when things go wrong can be immense.
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and the desire to be with our friends and family. We’re likely to reach burnout if we fail to give our mind, body and spirit the nurturing needed to thrive.
TIP Establish routines that ensure you take time out for you. Switch off the technology that allows you to stay connected with your work world, and spend time with the people you love and doing the things that energize your spirit. Maintain a level of activity and diet that allows your mind and body to be healthy.
6
Worry and regret
Reflect for a moment on how much time and energy you waste worrying about things that are outside of your control. How often do you worry about things that haven’t yet happened and may never happen? Do you expend vital energy on concerns that can’t be resolved? Feeling helpless and regretful drains our energy and is likely to erode our resolve to keep striving.
TIP Develop your organization’s ability to manage projects well. Develop your own ability to set a clear vision, establish priorities and drive change. Also develop the capabilities of leaders at all levels of your organization to drive strategic priorities through to successful implementation.
4
Aiming for perfection
Let’s face it – worrying about being perfect all the time is stressful. Many of the perfectionists I have worked with have recognized this tendency in themselves but have failed too see the seriousness of its consequences soon enough. The simple truth is that none of us or our businesses are perfect. Investing unnecessary time, energy and resources in striving for standards beyond what our staff or customers expect is a
common reason CEOs are overworked.
TIP Understand the 80/20 rule and apply it. The rule states that 80% of your outcomes come from 20% of your inputs. The important thing to understand is that in your life, 20% of the activities you do account for the majority (80%) of your happiness and success.
5
TIP Recognize when you are worrying. Start by asking yourself whether the problem is something that can be solved, and whether it can be solved by you. For example, is the problem something you’re actually facing, or is it just a ‘what if ’? Is your concern realistic? Can you do something about it or prepare, or is it really out of your control? If it’s an unsolvable worry, recognize that fact, put it out of your mind and move on. Avoiding burnout comes down to making necessary and balanced choices – those that allow you to deliberately invest time, energy and resources in achieving what matters most. Know when to let things go, choose to focus on today, and keep an eye on the future.
Work-life imbalance
We all need time away from work to slow down, unwind and recharge. No matter how much we love our work, if the time we spend doing it disproportionately consumes our focus and energy, our health and relationships are likely to be impacted. It’s difficult to avoid feeling stressed when conflicted between the demands of our job
Karen Gately is a leadership and people management specialist and the founder of Ryan Gately. She works with leaders and HR teams to drive business results through the talent and energy of people. Gately is also the author of The People Manager’s Toolkit: A Practical Guide to Getting the Best from People and The Corporate Dojo: Driving Extraordinary Results Through Spirited People.
www.ibamag.com
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17/02/2017 10:29:06 AM
FEATURES
NETWORKING
The power of the tribe Recognizing and realizing the value of business networks is crucial, writes entrepreneur and networker Janine Garner
IN THIS incredibly fast-paced business and economic landscape, we can no longer do it alone – realistically, we never could; we just thought we could. Building a powerful and diverse network, your own personal tribe, is a critical must-have within the new operating system of commercial collaboration. Moving from the isolated ‘me’ space to the collaborative ‘we’ space will future-proof careers, leadership and your own personal success. A powerful and diverse network drives your success by: creating new opportunity for growth stretching, pushing, driving and inspiring you enabling you to contribute and influence more and leverage your position further This ‘we’ space of commercial collabora-
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tion requires courage, confidence and bravery, and is one in which networks of connected individuals, communities and businesses work together to drive success. We can bring our skills, strengths and talents to the table and together amplify and share expertise to create progressive, results-oriented solutions. Collective intelligence means we work smarter and quicker together. In fact, diversity and difference of opinion are actually the new competitive advantage. Networking, connecting, meeting, doing coffee, lunch dates and even speed-connecting – all these terms are synonymous with meeting others to drive skill sets, contacts and ongoing business and personal growth. And however much you might want to hide under
the white tablecloths of a corporate breakfast, powerful and effective networking has evolved and is now a business must for all who want to forge ahead. It’s not simply about building up a Rolodex of business cards (or, more accurately, a smartphone full of virtual ones), a mass of LinkedIn contacts or a significant number of social media followers. It’s about a true meeting of minds and skill sets, and skilfully parlaying said meetings into successful long-range relationships. Networking is a must-have for successful collaboration, and the diversity of that network is the tipping point between average connections and those that collaborate to create magic. The cross-fertilization of connections, skills and brainpower, and the ideas that are
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openly discussed and shared through network creation, in their turn create new opportunities, innovation and new solutions to existing problems. It’s a domino effect – the way your initial networks interact provides a guideline for the subsequent networks that spring up from these collaborations. They will only benefit from your experience and way of working together.
Building your network The most innovative businesses and organizations are finding that effective and powerful networking is giving them an edge. So how do you find, build and manage a diverse network? How do you gain entry to a true circle of excellence that will work with you and not against you? The critical element of a powerful network that can become your lifeline, and an absolute must-have for successful collaboration, is diversity. Building an effective and powerful network is so much more than finding a safe, like-minded tribe. It requires diversity, a width and breadth of contacts, a willingness to embrace the opportunity that exists in differences, and finally, an understanding that you may not always agree with or understand certain points of view, but that through the connection, you will build awareness and knowledge. An effective network is a diverse network that consists of people who differ in expertise, age, gender and experience. Powerful networks are those that are cross-functional and cross-industry. Think about it: a like-minded network limits the breadth of conversation. Lawyers sit in a room with lawyers, sharing their legal experience. CEOs play golf with CEOs; fashion industry PR experts mingle with other fashion industry PR experts. Now imagine the color of the conversation if instead you had lawyers, accountants, creatives, athletes, marketers and business owners discussing the various solutions to a problem. Imagine the different perspectives shared, the varying insights, the depth of conversation that would stretch thinking and push perspectives wider. Diverse connections challenge thinking, drive further questions, push boundaries, increase awareness and open our eyes to another way. They also bring to the forefront
opportunities that were previously not in your direct line of vision, present solutions that weren’t on your radar and create innovations that you once thought were not possible. Who do you need to surround yourself with to inspire you and your business to achieve more? As Jim Rohn said, “You are the average of the five people you spend the most time with”. A powerful network is one that consists of people who have similar mindsets but diverse experience and will stretch thinking and push boundaries. Furthermore, those within a powerful network realize the power of sharing
ness similarities or ethical focus, or a desire to advance the same cause – and expecting nothing in return – this creates a fantastic opportunity for collaborative relationships, and also for a true value exchange, where ‘What’s in it for me?’ turns into ‘What can I do for you?’. The ‘we’ space is not a pipe dream. There are businesses and leaders who are clearly succeeding by operating within this framework. It is the center of discussion among academics, thought leaders and consulting groups. Those corporations and entrepreneurs who are using the space well are seeing procedures streamlined, the bottom line coming up,
Building an effective and powerful network is so much more than finding a safe, like-minded tribe. It requires a willingness to embrace the opportunity that exists in differences ideas and of coming together, and value-add to each other’s businesses through the power of plural perspectives. Those who are willing to be a part of a collaborative working environment are doing so because they want to be challenged. They want the opportunity to constantly learn from others and to share what they’ve learned, to engage on an intellectually challenging level with like-minded thinkers, to see their own business benefit from the knowledge of specialists, and to be happy knowing that they are on the edge of technological advancement, constantly pushing the ‘what if ’ button – because, as a team, they feel secure enough to take risks.
Harnessing the network’s power The concept of commercial collaboration is not for the faint-hearted; it’s for those who can see the far-reaching benefits of what the ‘we’ space is about – and yes, it is a gradual move that involves challenging thinking. But it is not something that one has to contemplate in solitude. Understanding the power of your network and using its potential is intrinsic to the ‘we’ mentality. To care about the well-being of those who are connected to you through busi-
and employees becoming more engaged and happier. Their ‘communities’ are becoming communities without the quotation marks. It is not enough, in the words of Sheryl Sandberg, to ‘lean in’ to future-proof our success, our businesses and our careers. For leaders who are taking teams into an uncertain future, it’s now about leaning out and collaborating with others. Because to lean out means to embrace and engage on an unforeseen aggregated level – where thinking bigger than ever before will bring rewards to a collective commercial mind. The barriers between genders, between generations, between cultures, between the inventors and the investors, between the change-makers, the visionaries and those that make it happen – these all have to be broken down. This is all a part of the evolution of ‘me to ‘we.’ This is all a part of collaborative business. This is not about a revolution; it’s about evolution.
Janine Garner is the founder and CEO of LBDGroup and works with senior leaders to build high-performing teams. She is also the author of It’s Who You Know .
www.ibamag.com
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ARE YOU A TOP PERFORMING MGA? Don’t miss your opportunity to be featured in Insurance Business America’s annual Five Star MGA issue coming in May.
IBAMAG.COM ISSUE 4.05 | $12.95
RANCE BU SI SU N
2016 As G
VE STAR S FI M ES N
MGAs MGA I
Producers gave us the scoop on what they're looking for in an MGA – and which MGAs are meeting their expectations THE BUSINESS OF AGRICULTURE
What coverages do farmers need that brokers might be missing?
AN INDUSTRY IN CRISIS
THE LATEST CYBER SHOCK
How uncertainty in the oil & gas industry is affecting producers in the sector
The importance of cyber insurance in the wake of the Panama Papers
producers in the sector oil & gas industry is affecting How uncertainty in the
the Panama Papers insurance in the wake of The importance of cyber
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might be missing? farmers need that brokers What coverages do
OF AGRICULTURE THE BUSINESS
13/05/2016 5:08:20 AM
IN CRISIS AN INDUSTRY
CYBER SHOCK THE LATEST
SURVEY OPENS MARCH 8, 2017 For more information, contact Heather Turner at heather.turner@keymedia.com
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PEOPLE
CAREER PATH
PERFECT TIMING
Sarah Johnson Court ascribes much of her success to being in the right place at the right time – with the right background A horse rider from the age of 9, Court started teaching younger riders when she was 13. Between traveling up and down the East Coast during her showing career to coaching the collegiate team at Harvard when she herself was still a teen, Court credits this beginning for giving her an advantage in her later career “Crossing into high-net-worth was a natural fit – if they have horses, they will have collectibles”
1990
GETS INTO THE SADDLE
2001 2004
MOVES TO LONDON; FINDS INSURANCE After relocating to London to get a master’s degree in art history, Court made an unexpected leap into insurance when her search for a part-time job led to an opportunity with a renowned fine art group
“They said, ‘You’re overqualified, but we’d love to have you.’ I wanted art to be very central to my career, and that job allowed it”
PURSUES HER LOVE OF THE ARTS Having also pursued her passion for art from a young age – in disciplines as varied as drawing, painting, ceramics and glassblowing – Court decided to pursue an art history degree at the University of Massachusetts “Once I took an art history class, it all came together: the contextualization of art and history. [After college], I decided to focus on art 100% and started working at a gallery, so I saw a bit of the other side”
2007 JOINS AON A move to Aon had Court servicing clients in Edinburgh, Cambridge and Paris, thanks to the ‘amazing’ client book she inherited. She went on to work with some of the world’s top private and commercial collections “They had been looking for someone to hit the ground running; I was very, very lucky. I continued to build on the existing clients and traveled to a lot of our offices”
2010 COMES HOME A desire to return Stateside led Court to the position of senior associate with Frank Crystal & Company. Later, after Aon made numerous attempts to win her over, she rejoined the firm as director of its global fine art practice. There, Court worked with ultra-highnet-worth individuals, including celebrities, athletes and their families, to provide services such as kidnap & ransom policies and key person cover
2016 WINS, WINS, WINS Last year, Court made the move to Alliant and earned a triumvirate of prestigious accolades, including a place on IBA’s Elite Women in Insurance list and as one Business Insurance’s “40 under 40” Rising Stars. However, her recognition as a Fine Art Power Broker by Risk & Insurance was Court’s fondest achievement “I was so humbled by each of them. [The Fine Art title] is dear to my heart – seeing client testimonials, that was amazing”
2015
BEGINS NUTRITION CERTIFICATION A vegetarian for 20 years, Court eventually committed her nights and weekends to the pursuit of an online nutrition course “I did it for myself and to understand health and holistic living. If you’re not taking care of yourself, you’re not going to be a whole person. It’s connected with everything I do”
www.ibamag.com
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PEOPLE
OTHER LIFE
SONG AND DANCE A dancer since childhood, Lillian Francis now devotes her spare time to putting on musicals with the smallest of casts WHEN LILLIAN FRANCIS’ mom made her choose between Girl Scouts and dance lessons at the age of 7, the future commercial insurance account manager had no way of knowing that opting for ballet and jazz classes over badge-earning would end up making such a big difference in her life. Francis studied ballet and jazz in high school and
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TELL US ABOUT YOUR OTHER LIFE Email iba@keymedia.com
college, and her first job after graduation was teaching an adult ballet class. It’s a sideline she has maintained over the years, and one she says provides a welcome balance to her work at Haas & Wilkerson Insurance. “It’s all about movement and being free, when my main job is sitting at a desk all day.” In addition to the hours she spends teaching at City in Motion – a school built on the principle that everyone is a dancer – and the performances she gives onstage for the Kansas City Fringe Festival, Francis devotes much of her time and talent to Act One, an outreach based in a local church that stages musicals with a cast of children aged 8 to 19. With the company, Francis has choreographed up to a hundred children in productions that include Charlie Brown, Beauty and the Beast, Peter Pan, The Wizard of Oz, Shrek, and Joseph and the Amazing Technicolor Dreamcoat. “It’s a lot of fun,” she says. “Act One is very special; we don’t turn any kids away. They want to do the show, make friends and have fun.”
11
Musicals Francis has helped stage with Act One
27
Number of years Francis has been teaching dance
5,000
Estimated number of hours Francis has spent teaching
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TI_CPCU
Funny how the most successful people in the industry tend to share the same initials. Renee R. Scott, CPCU Member of The Institutes CPCU Society
The Chartered Property Casualty Underwriter (CPCU®) designation is more than fancy letters that dress up your business card. It’s the premier designation in the risk management and property casualty world. The industry standard for knowledge, ethics, and experience. And there’s only one place you can get it.
Know more. Do more. TheInstitutes.org
Copyright © 2017 American Institute For Chartered Property Casualty Underwriters. All rights reserved.
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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. Follow us at bigdoghq.com. Š2017 Applied Underwriters, Inc., a Berkshire Hathaway company. Rated A+ (Superior) by A.M. Best. Insurance plans protected U.S. Patent No. 7,908,157.
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