The CHART Exchange May-June 2017 by The CHART Exchange

IN THIS ISSUE 6

COMING SOON TO AN INSURANCE MARKETPLACE NEAR YOU: CHART MGA CHART MGA is a new facility fully licensed to handle lines insurance transactions within every state – on both an admitted and surplus lines basis.

THE BENEFITS OF PLACING BUSINESS ON A SURPLUS LINES BASIS Frank Huver, SVP at Rockwood Programs, dispels 4 Common Myths about surplus lines business believed by agents.

LLOYD’S OF LONDON CEO INGA BEALE SPEAKS ON SETTING UP POST-BREXIT FINANCIAL CENTER The new offices will require some migration of jobs from the London Lloyd’s mega-center where 700 people now work for the iconic insurance operation.

THINKING OF CAPITALIZING A CARRIER? SOME IMPORTANT POINTS TO CONSIDER Whether forming a company via application or buying an existing shell carrier, an agent should expect to need approximately $5 million for capital and surplus.

M&A SERVICES, INC. EARNED THE #1 RANK BY DEAL VOLUME FOR INSURANCE UNDERWRITING TRANSACTIONS IN 2016 Merger & Acquisition Services, Inc. earned the #1 rank by deal volume for insurance underwriting transactions in the United States and Canada.

REFUSAL TO ALLOW EMPLOYEE TO RESCIND HER VOLUNTARY RESIGNATION NOT AN ADVERSE EMPLOYMENT ACTION An interesting case study of an action brought by an employee in California. Alexandra Aurisch of Wilson Elser analyzes...

CHART MGA is a new facility fully licensed to handle lines insurance transactions within every state – on both an admitted and surplus lines basis.”

ENGAGING DIGITAL NATIVE AGENTS, CUSTOMERS AND EMPLOYEES The next generation of digital natives has arrived, with profound impacts on insurance distribution channels.

GLOBAL CYBERATTACK READINESS - A SPECIAL REPORT SPECIAL REPORT BY CHART PARTNER WILSON ELSER: In May 2017, the world experienced an unprecedented global cyberattack that targeted the public and private sectors...

Cover Image Credit: CC0 Public Domain

CHART EXCHANGE

LLOYD’S SUPPORTS ARCTIC SHIPPING BEST PRACTICE Lloyd’s has welcomed the Arctic Council Ministerial Declaration establishing the Arctic Shipping Best Practices Information Forum, which will hold its first meeting in London on June 5-6.

VENTURE INSURANCE PROGRAMS NETRATE SUCCESS STORY Venture Insurance Programs implemented NetRate System’s technology platform with outstanding results:

CHART 3RD ANNUAL CONFERENCE SCHEDULED FOR OCTOBER 8-11! Attending this conference may be the most important event on your calendar this year to advance your business to the next level.

SPECIAL REPORT: GLOBAL CYBER-ATTACK READINESS

MAY-JUNE 2017 VOLUME 2 - ISSUE 5 Publisher: CHART Exchange Glenn W. Clark, CPCU Membership Services Kate Boyle Advertising: Kate Boyle Managing Editor: Kate Boyle Contributing Editor: Frank Huver Layout, Design & Circulation: Ron Manera AdMax Corp., Inc.

CHART Exchange

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MESSAGE FROM THE EARLIEST ADOPTER COMING SOON TO AN INSURANCE MARKETPLACE NEAR YOU:

CHART MGA by Glenn W. Clark, CPCU

to both the free exchange of ideas and frank discussions about the Glenn W. Clark, CPCU e are a little over five business challenges faced by the Publisher & Earliest Adopter months away from the membership. One topic we’ve Third Annual CHART heard addressed on numerous Exchange Event. It will be held occasions has been that of product offerings that were developed October 8-11 at the Four Seasons distribution. Agency members have for the domestic U.S. market. Hotel in Baltimore MD. We selected secured delegated underwriting Their advantages of an excellent form, automated this elegant venue because of authorities for a program, but lack coverage underwriting, London expertise, its spacious meeting facilities, the technical sophistication or wonderful waterfront views, and back-office capabilities to expand etc. are somewhat mitigated by an inability to fully execute efficiently convenient location. Every room their efforts on a national scale. in the U.S. available in the hotel has been reserved for the event; this CHART MGA is a new It is both time-consuming and step will allow us to provide facility fully licensed expensive to find just the right an intimate and CHART-centric wholesaler partners willing to to handle lines insurance setting for our attendees. fully invest in a new product transactions within every launch. It requires surplus lines Over the past several months, state – on both an admitted licenses in order to “perfect” a we have been using this column and surplus lines basis. Lloyd’s-underwritten sale in as a forum for discussing new almost every state in the U.S. initiatives the organization Our tribunalized CHART hopes to fill a current will be launching in 2017. administrative team gap for syndicates who wish to The topic of the last issue was possesses the necessary have a dedicated entity to help CHART Markets – a virtual them bring innovative new expertise in a variety “shopping mall” designed products to market. to supplement the existing of disciplines, including distribution channels of our underwriting, premium The CHART-Exchange has member agencies and Vendor collection/remittance, formulated a strategy to Partners. In this edition, we will answer this need: CHART be reviewing the concept of marketing, and compliance.” MGA. This new facility is CHART MGA. fully licensed to handle lines Similar concerns have been insurance transactions within every Our annual meetings offer an raised by Risk Takers. Some of our informal environment conducive Syndicate Partners have insurance state – on both an admitted and

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CHART EXCHANGE product-specific initiatives to generate submission flow from specific target niches. Retail agents wishing to place business through a CHART MGA-administered program do not have to be surplus lines licensed. The facility will handle the collection/remittance of surplus lines basis. Our tribunalized a number of offerings that would premium taxes as well as all and reporting administrative team possesses the be an ideal fit for the CHART MGA compliance functions. necessary expertise in a variety of platform. disciplines, including underwriting, premium collection/remittance, Examples include Cyber Liability, A CHART MGA-themed workshop marketing, and compliance. Wind Deductible Buy-Back, and will be part of the agenda at the Event Cancellation. Many of these upcoming meeting in Baltimore. Technology will play a key role potential products already have Interested members can attend within the new operation (on both a highly automated processing this session to learn more about ends). Whenever possible we will system to support them. We hope the process, review system feed the existing technology of to identify a core product suite functionality, and meet the the London partner yet utilize a of ten offerings before year end. administrative staff. CHART branding on the U.S. end. A Syndicates that are developing high level of automation will allow products for the domestic U. S. No agency in the U.S. has more CHART MGA to administer a number market should consider CHART comprehensive databases of U.S. of diverse product lines efficiently MGA as an essential tool in their producers or more experience and effectively. We will collaborate efforts to get clear, consistent and in electronic marketing than the with one of our Preferred Vendor essential feedback from experts team behind CHART MGA. The Partners to develop a web-based who have been in the U.S. market ability to offer multiple products inside a single London-centric system that handles all submission, their entire insurance careers. theme will give us a cost and quote, bind, and billing functions. Each product line administered efficiency “edge” unlike anyone The application will also possess by CHART MGA will have its else in the industry. a robust reporting feature. own unique storefront in CHART Participating members can Markets. Promotional campaigns utilize this capability to monitor targeting retail insurance agencies key performance statistics like will be implemented in an effort to submission activity, quote-to-bind drive traffic to this unique Internet ratios, premium production, and platform. We will utilize media more. We’ll capture all submission advertisement, direct response data to enable us to build marketing mail, broadcast e-mail, and other Glenn W. Clark , CPCU databases for future solicitations. CHART’S Earliest Adopter methods to raise awareness. Our team has already identified CHART Markets can also develop

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CHART - NEWS

THE BENEFITS OF PLACING BUSINESS ON A SURPLUS LINES BASIS by Frank Huver, SVP Rockwood Programs

•

ockwood Programs has been a Lloyd’s Coverholder for more than fifteen years and is proud to be an “Early Adopter” of the CHART Exchange. The agency specializes in professional and management liability products. Our • preferred target audiences tend to be either unique or under-served niches within the marketplace. Placing business through London means we write on a non-admitted (or surplus lines) basis. By using this type of “paper”, we are afforded the flexibility to react quickly to the dynamic needs of non-traditional markets. Instituting similar changes on an admitted form – with the requirement of individual state filings and approvals – often proves to be much more of a timeconsuming process.

Freedom of rate gives the group the ability to offer debits and credits unique to the specific audience the program is designed for (example: slot rating via premium production vs. state based rates that penalize certain geographic locations) Facilitates the adding of risk management tools unique to the program group.

Rockwood Programs has plenty of experience placing business through the Excess & Surplus (E&S) market. During our tenure, we have encountered a number of misconceptions about the business. Some of the more prevalent false impressions are “debunked” below: MYTH #1

Non-admitted insurance carriers are unregulated. Every insurance company must receive the Here are some other benefits of approval of the individual state placing business on a surplus lines insurance departments before they can write business in that basis: jurisdiction. Admitted carriers • Have freedom of form, are licensed by the states; nonenabling the administrator to add admitted insurers are “whitepolicy enhancements that are listed”. In order to be included on unique to the specific audience a the “white list”, carriers must meet certain financial and regulatory program is designed for. criteria mandated by each 8

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A state’s Guarantee Fund is established to serve as a “safety net” in the event of carrier insolvency. Rockwood’s primary non-admitted insurance carrier – Lloyds of London – maintains an “A” (Excellent) rating from A.M. Best and an “A+” (Strong) rating from Standard & Poors.”

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jurisdiction. These requirements usually include the establishment of substantial premium reserves and/or demonstration of adequate reinsurance. MYTH #2

Non-admitted insurance is only for “bad” risks. Non-admitted carriers can often provide coverage that their admitted counterparts can’t, through freedom of form and rate. www.chart-exchange.com

CHART - NEWS As a result, E&S markets can tailor insurance terms, conditions, and premiums to meet the specific needs of their clients. This feature makes non-admitted coverage ideal for many professional and management liability exposures. MYTH #3

Business written on a non-admitted basis is not protected by a state’s Insurance Guarantee Fund. This is technically true. With that said, the protections provided through a Guarantee Fund are extremely limited. Funds may not be available to insureds that exceed certain revenue thresholds. Further, the coverage afforded is usually a fraction of the limits provided on the insured’s actual policy.

Fund is established to serve as a “safety net” in the event of carrier insolvency. Rockwood’s primary non-admitted insurance carrier – Lloyds of London – maintains an “A” (Excellent) rating from A.M. Best and an “A+” (Strong) rating from Standard & Poors. These rankings are a testament to the company’s financial strength.

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Myth #4. Non-admitted carriers are inferior. All insurance companies are not the same. Rockwood’s preferred carrier partner – Lloyds of London – with a pedigree unmatched in the industry. Since their start in 1688, they have grown to become the world’s leading market for specialist insurance. The carrier wrote nearly $15 billion of total premiums within the United Remember that a state’s Guarantee States in 2015 alone.

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Lloyds of London – maintains an “A” (Excellent) rating from A.M. Best and an “A+” (Strong) rating from Standard & Poors. These rankings are a testament to the company’s financial strength.

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NEWS

LLOYD’S OF LONDON CEO INGA BEALE SPEAKS ON SETTING UP POST-BREXIT FINANCIAL CENTER Up To 100 London Jobs May Move to Brussels As Well As 5% Of Current Operations by Staff Reporter

ondon, UK - Lloyd’s of London, like many financial services companies in the UK have been struggling to adjust to the realities of Brexit as it applies to their business model. When Lloyd’s failed to secure “passporting” rights for it’s London operation, which would have allowed it to continue doing business with EU countries, it had to do something quickly in order to maintain it’s 329-year-old tradition of serving these markets. For Lloyd’s, the answer was a new financial center located in Brussels, Belgium. Speaking in an interview with Bloomberg, Lloyd’s CEO, Inga Beale said, “Brussels will always allow us to operate with the changes that will come with Brexit,” Beale said. “We can secure www.chart-exchange.com

continuous investment from our European partners, seamlessly.”

Although Britain’s withdrawal from the EU is still two years away, financial operations such as The new offices will require Lloyd’s feel there is little time to some migration of jobs from waste in planning for the change. the London Lloyd’s mega-center Besides Lloyd’s, XL Catlin, where 700 people now work for Standard Life, Royal London, the iconic insurance operation. MS Amlin, Markel, Hiscox, Lloyd’s reportedly plans to move Chesnara, FM Mutual, Beazley, about 100 people and 5% of it’s AIG, and Admiral all doing operations to the Brussels center, insurance business in the EU via once it is up and running at full a UK connection have plans to speed. establish a EU base as well, either by moving a portion of their current operation “Inga Beale, or by capitalizing new Lloyd’s 1st female subsidiaries.

CEO, said, “I am excited about the opportunities this venture will offer the market by providing that important European access efficiently.”

Lloyds had considered Paris and other locations before deciding on Brussels, but felt, according to Beale, that Brussels had a “robust reputation for regulation and multilingual talent,” and would be more likely than Paris to stick with the EU for the “long term.” TABLE OF CONTENTS

As an example, Hiscox, a specialist insurer will be establishing an EU subsidiary in Luxembourg. A company spokesperson remarked that, “Our existing European business, which comprises over 350 people across seven of the EU 27 countries, will continue to operate without interruption. In Luxembourg a team covering core functions such as compliance, risk and internal audit will be recruited to complement our existing structure.” MAY-JUNE 2017

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Merger & Acquisition Services

serving the insurance industry Merger & Acquisition Services is a

specialist advisory and financial services

firm specifically to participants within the insurance industry. Our mission is to provide

concierge-level services and expertise

within the insurance industry by assisting firms with their corporate development and acquisition/divestiture objectives. M&A Services is

solely focused on the insurance industry.

This allows our advisors to obtain critical industry knowledge and subsequently, provide clients with sound advice.

Our Services Agency M&A Transactions Carrier M&A Transactions Agency Financing Capital Raising Strategic Advisory Valuation Services Program Business Renewal Rights Fronting

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more than 100 transactions in 10 years and has earned continuous placement within the "Top 5 Financial Advisors in Insurance Underwriting" according to SNL Financial. . Investment banking services and securities transactions are provided through and completed by Merger & Acquisition Capital Services, LLC., a brokerdealer registered with the U.S. Securities and Exchange Commission and member of FINRA and SIPC.

ANALYSIS

THINKING OF CAPITALIZING A CARRIER? SOME IMPORTANT POINTS TO CONSIDER by Paul Procops, VP Merger & Acquisition Services

forming a company via application PREMIUM LEVELS: or buying an existing shell carrier, Another common misconception is an agent should expect to need what a level of meaningful premium approximately $5 for a carrier million for capital Whether looks like. and surplus to Many agents forming maintain the will reach out a company via license in good to our firm standing. There application or buying explaining that are funds that can they have a $1 an existing shell provide some of million book carrier, an agent the upfront capital of profitable required, however should expect to need homeowner’s they will often approximately $5 business in take a significant million for capital and Texas and want equity interest in to buy a shell surplus to maintain the new venture. carrier. Due to

s a firm, we get a call almost every day from an agency owner fed up with their current carrier. Whether its restrictive underwriting guidelines, or a coverage that just misses what their potential clients are looking for, these agency owners are looking to get into the risk bearing business themselves. While the grass may seem greener on the other carrier side, there are several hurdles in getting there. In this article, we address a few of those hurdles and the most common the license in good high capital misconceptions agency owners An important and surplus standing.” have when they’re looking to item to remember requirements acquire a statutory entity. is that once an in the state ($5 insurance carrier is capitalized million), it’s hard to justify having CAPITAL AND SURPLUS REQUIREMENTS: and is actively writing business $5 million of capital and surplus in Most agents we speak with think with policyholder obligations, it an entity that is writing $1 million that an insurance carrier can be becomes very difficult to remove in premium. capitalized with a few hundred that capital outside of selling the thousand dollars. However, whether entity. See Capitalizing A Carrier Pg 19

bout The Author: Mr. Procops serves as a Vice President for Merger & Acquisition Services. His responsibilities include financial analysis, research, client support and deal management. Mr. Procops has worked on over 25 M&A transactions since joining the firm in 2009, including assisting Kemper in the sale of Response Indemnity of CA and Response Indemnity Company of NY, working with Cottage Advisors in the acquisition of Pacific Indemnity Company from Chubb and representing Guggenheim Partners in reviewing buy side acquisition targets. cpprocops@maservices. com Prior to joining Merger & Acquisition Services, Mr. Procops worked for Citigroup, Merrill Lynch and Tradition Financial Services, earning his B.A. Degree in Managerial Economics from Union College. He holds the Series 7, 79, and 63 licenses.

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NEWS

M&A SERVICES, INC. EARNED THE #1 RANK BY DEAL VOLUME FOR INSURANCE UNDERWRITING TRANSACTIONS IN 2016

ew York, NY - S&P Global Market Intelligence & SNL Financial, the premier provider of breaking news, financial data and expert analysis on Insurance & Financial Services has published their 2016 Year End Financial Adviser Rankings and

Merger & Acquisition Services, Inc. earned the #1 rank by deal volume for insurance underwriting transactions in the United States and Canada.

“We are pleased to once again sit atop the SNL rankings as the number one advisor for insurance carrier transactions based upon completed deals in 2016,” said Jason C. Murgio, M&A was credited with CEO of M&A. “We are closing 7 underwriting carrier in on serving the insurance transactions through 2016. industry for almost 20 years and

Transactions which SNL credited to M&A include 1 buy-side assignment and 6 sell side assignments:

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NEWS

as the advisor on both of those services globally, including; transactions. merger & acquisition advisory, capital raising, valuations, ABOUT MERGER & program placement/fronting, ACQUISITION SERVICES, INC. and reinsurance advisory. Merger & Acquisition Services, Merger & Acquisition Capital Inc. is a specialist advisory Services, LLC., a registered and financial services Firm to broker-dealer and member the insurance and reinsurance FINRA / SIPC, is an affiliate of industry, with offices in New Merger & Acquisition Services, York, Connecticut, Georgia & Inc. Jason Murgio, President, CEO of Merger & Acquisition Services, Inc. Email: jmurgio@maservices.com

Cayman Islands. Founded in 1999, the Firm and its affiliates To learn more about Merger provides investment banking & Acquisition Services, visit and insurance consulting http://www.maservices.com.

to be the top advisor based on deal volume is a noteworthy accomplishment for the firm and our team.â&#x20AC;? In addition to the insurance carrier transactions completed by the firm, M&A also completed 2 insurance distribution transactions in 2016. The firm acted as the sell side advisor to NSM Insurance Group in the sale of ELM Insurance Brokers and Pat Moore Insurance Services to Assured Partners, Inc. Chris Hughes, M&Aâ&#x20AC;&#x2122;s Managing Director of Insurance Distribution served www.chart-exchange.com

M&A Services Ranked #1 in Volume in Insurance Underwriting Transactions

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ANALYSIS - WILSON ELSER

REFUSAL TO ALLOW EMPLOYEE TO RESCIND HER VOLUNTARY RESIGNATION NOT AN ADVERSE EMPLOYMENT ACTION Can an Employee Rescind a Voluntary Resignation?

In its recent decision in Featherstone v. Southern California Permanente Medical Group, the California Court of Appeal for the Second District By Alexandra Aurisch held that refusing to allow an he California Court of Appeal employee to rescind her voluntary for the Second District held resignation does not constitute an that refusal to allow an adverse employment action. employee to rescind her voluntary resignation was not an adverse Plaintiff Ruth Featherstone alleged employment action. The Court that during her employment with determined that the employee Southern California Permanente had failed to raise a triable issue Medical Group, she suffered from of fact as to whether the company a temporary disability when a employees who accepted and prescription drug she was taking processed her resignation were altered her mental state. In this aware of any alleged disability at altered mental state, she first orally resigned during a phone call with the time of the resignation. her supervisor and subsequently confirmed her resignation in an email.

The employer immediately processed the termination paperwork to provide Featherstone with her final paycheck, in compliance with state law. A few days later, Featherstone asked the employer to allow her to rescind her resignation, explaining that she had been in an altered mental state when she resigned. The company declined her request. Featherstone sued on the basis that the company had acted with a discriminatory motive in refusing to allow her to rescind. The Court affirmed summary judgment in favor of the employer on two grounds â&#x2C6;&#x2019; the first

bout the author: Alexandra Aurisch practices in the areas of employment law and professional liability. Alexandra represents employers in a wide range of employment and labor matters, including workplace discrimination and harassment, wage-and-hour violations, wrongful termination and defamation. Additionally, her practice involves assisting employers in developing strategies to avoid litigation. This includes working with employers to modify employment policies and practices and advising on employee handbooks. Alexandra also handles cases involving professional liability, including malpractice claims, fee disputes and fiduciary obligations.

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ANALYSIS - WILSON ELSER

having the most significance for The Court’s decision also serves as employers; the Court held that a reminder for employers that: the refusal to allow Featherstone to rescind her resignation was not • An adverse employment an adverse employment action. action is evaluated by taking into consideration the particular circumstances of the employee and The Court held that the refusal to allow the workplace. Adverse actions are not limited Featherstone to rescind her resignation to a clear list of specific was not an adverse employment action. The Court actions – they include noted, however, that a forced resignation by coercion those that materially or duress or by misrepresentation could lead to a affect job performance or opportunity for different result, as could a contract governing the advancement. employment relationship.” • In certain situations, the employer has a duty to investigate an employee’s The Court noted, however, that a request for altering her forced resignation by coercion or employment – for example, duress or by misrepresentation if an employee indicates the could lead to a different result, need for a leave as opposed to as could a contract governing a clear resignation. the employment relationship. The second basis for the Court’s Wilson Elser’s national decision was that Featherstone Employment & Labor practice had failed to raise a triable lawyers are experienced in helping issue of fact as to whether organizations deal with voluntary the company employees who and involuntary changes in accepted and processed her employment status and would be resignation were aware of any happy to respond to questions alleged disability at the time of you may have about these and the resignation. other human resources matters.

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Bringing U.S. Entrepreneurship to the London Market The CHART/Wilson Elser strategic partnership combines the innovative underwriting philosophy of the worldâ&#x20AC;&#x2122;s oldest insurance brand with the entrepreneurial mindset of U.S. agencies. For close to 40 years, Wilson Elser has helped organizations to better navigate challenging markets and realize improved combined ratios. We provide London- and Europebased insurers with ready access to more than 60 discrete legal services delivered by nearly 800 attorneys in 31 strategic locations throughout the United States. Guided by a proprietary, systematic legal project management program, we help clients define strategies and achieve outcomes that align with agreed business requirements. We also implement dedicated Program Claim/Litigation Management services, creating value and driving efficiencies with respect to legal spend and indemnity. Wilson Elser is especially proud of its strategic partnership with CHART Exchange and our shared commitment to strengthening relationships between cover holders and risk takers on either side of the Atlantic.

wilsonelser.com 18

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ANALYSIS Continued from Page 13

CAPITALIZING A CARRIER As an example, for every dollar of Progressive’s capital and surplus, they’re writing three dollars in premium. Now we wouldn’t necessarily suggest you need to be leveraged similarly to Progressive’s 3 to 1 to justify becoming an insurance carrier, but a little scale helps. MANAGEMENT / FORM A:

Other than plentiful capital and surplus, an agency owner is going to need a full c-suite of insurance executives that have expertise running and managing an insurance carrier to get through the Form A filing with the state.

acquire a statutory entity. If you have any questions on the process or anything contained herein, please contact one of our advisors.

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ABOUT M&A SERVICES

Merger & Acquisition Services, Inc. is a specialist advisory and financial services firm specifically to participants within the insurance industry. For nearly 20 years, Merger & Acquisition Services has been helping our clients achieve their strategic and financial goals Focused - Some boutique firms try to be all things to all people. Merger & Acquisition Services is focused solely on the insurance industry. This allows our advisors to obtain critical industry knowledge and subsequently, provide clients with sound advice.

EXPENSES:

The final item often over looked by agency owners is expense. As a regulated statutory entity, you’re requited to submit quarterly statutory financials to the NAIC. The preparation of these documents often carries a significant cost of a few hundred thousand dollars a year. The items above are some of the common misconceptions that most of our agency owner clients face when acquiring a carrier. They are in no ways insurmountable as we’ve helped many agency owners achieve their goals and www.chart-exchange.com

Unbiased - Our firm is independent in the sense we are not affiliated with reinsurance brokerage companies or public equity research organizations, enabling us to provide objective analysis. Value-Added - Our advisors have a unique blend of insurance and investment banking experience which allows us to look at the big picture while still paying attention to detail. We treat every assignment with equal importance and every transaction like it was our own. TABLE OF CONTENTS

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ANALYSIS - VALUE MOMENTUM

ENGAGING DIGITAL NATIVE AGENTS, CUSTOMERS AND EMPLOYEES Make no mistake, meeting new expectations is critical to your firm’s success by Abhijeet Jhaveri

I A

BOUT THE AUTHOR: Abhijeet Jhaveri is Chief Marketing Officer at ValueMomentum and leads ValueMomentum’s softwareas-a-service business targeted at the MGA, Program Administrator and Coverholder markets. Abhijeet and his team works with MGAs, Program Administrators and Coverholders to deploy ValueMomentum’s iFoundry rating software with support for ISO, NCCI, AAIS and proprietary rate plans and extend these to agents, customers and employees with ValueMomentum’s BizDynamics Digital Experience Solution and App2Data ACORD forms processing Solution.

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Let’s consider what you need to know, why it matters and how to respond successfully. Here’s what digital natives want Of the various characteristics of digital natives, six traits stand out.

t’s no secret that workforce demographics are changing as Always Connected. Tethered to Baby Boomers retire by the tens their mobile devices, digital natives of thousands every year and are expect to be reached anytime, replace by Millennials. Also, with anywhere, by their colleagues or by the oldest Millennials reaching their agent. their mid-30’s, age The next Always Networked. and maturity bring new responsibilities generation Beyond connectivity, – making this natives of digital natives digital consumer cohort are perpetual a growth segment has arrived, with networkers, meaning for the insurance profound impacts they’re more likely industry. to be influenced on insurance through their peers distribution Add into the mix – the manifestations channels.” the seismic shift to of which range from ubiquitous mobility job board reviews and there’s one thing few dispute: to social media postings about The next generation of digital interacting with your firm. natives has arrived, with profound impacts on insurance distribution Multi-Taskers. As consummate channels. parallel-processors and multitaskers, digital natives expect Although Millennial digital nativism workplace and purchasing is already well documented, what’s applications to provide simplified less well understood is how the traits ways to act – from preferring visuals and expectations of such digital to ubiquitous hyperlinks. natives impact their decisions to work for your company, agency or See Millennial Expectations Pg 22 purchase products from your firm. TABLE OF CONTENTS

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ANALYSIS - VALUE MOMENTUM Continued From Page 20

Reach me anytime, anywhere: A single monthly customer communication, such as a bill, or workplace interactions between agents during business hours just aren’t enough. While touch frequency will vary depending upon Seek Instant Gratification. As a side the person and the situation, what effect of connectivity, networking matters is adopting mechanisms to and multi-tasking, digital natives ensure customers can interact with expect to be empowered to take you, and employees can collaborate control to complete tasks quickly with each other, anytime and in any way they choose, day or night. and efficiently.

MILLENIAL EXPECTATIONS

Value Personal and Relevant Interactions. Customized experiences are so important to digital natives they expect interactions to guide them personally. Associate With Brands That Care About Their Causes. The most cause-driven generation to date, Millennials make purchases and accept jobs that align with their interests.

industry’s traditional one-way communications approach.

Simplify ways for me to act: The implications of this expectation are vast. On the customer side, it requires increasingly complex technology capabilities, such as extracting information from a driver’s license – or a competitor’s policy – to pre-populate form fields. For employees, it’s about context-aware help systems that mature as information is gathered Influence me through my peers: to enable agents to deliver valueWhether reading reviews online or added advice. posting one of their own, agents, customers and employees want Empower me to take control: Like to see the opinions of others and simplification, empowerment can contribute to the dialog. This take many forms. Just a few examples requires mechanisms to establish, include advanced customer help moderate and maintain your options, like video chats, and robust firm’s online presence, which agent collaboration spaces, such as is a major departure from the discussion walls. Regardless, the key

Despite considerable conversation around industry benefits from the larger pool of prospective employees and customers in history, it’s our experience that few agencies completely grasp the effects of Millennial expectations. Yet we’re already seeing how the expectations of this cohort – and their digital immigrant cousins – are fundamentally altering the ways agencies need to do business.

MAY-JUNE 2017

Millenials: Aim For Their Expectations - or Lose Them To A Competitor

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Image Credit: Creative Commons 2.0 License Here

HERE’S WHY IT MATTERS TO YOUR COMPANY

ANALYSIS - VALUE MOMENTUM Despite considerable conversation around industry benefits from the larger pool of prospective employees and customers in history, it’s our experience that few agencies completely grasp the effects of Millennial expectations.” is providing assistance in context, which goes considerably beyond static “FAQ” lists.

Image Credit: Creative Commons

Guide me personally: From shopping sites offering suggestions based on past behaviors to calendar apps sending automatic reminders, the expectation for personal guidance is pervasive. For agencies, this can manifest as providing customers with proactive suggestions to review a particular insurance posture when their life circumstances change. For employees, it means access to more sophisticated analysis tools, such as presenting multiple coverage options based on other insureds with similar circumstances.

without resorting to scolding and admonishments, such as ‘don’t text and drive.’ Instead, you need datadriven ways to deliver content about how people can improve safety in common situations that relate directly to the products you offer. HERE’S WHAT COMPETITIVE

STAY

It’s a necessity to have the ability to extend transaction capability deeper into the value chain (e.g. rate-quotebind-service) from the MGA to its channels in a way that digital natives expect.

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The right approach requires the following: •

• •

Engage customers, partners and employees wherever and whenever they choose Enrich these engagements with uniform and rich experiences Leverage core applications and data

HERE’S THE NEXT STEP TO TAKE

It’s not just a portal anymore – it needs to be a digital platform with access to current and future platforms. You have to have access to core legacy functions from the digital platform. You need to enable simple access to multiple core systems. The front end systems Align with my interests: The most (digital platform) innovations need basic way to address this expectation to be separate from core system is prominently articulating your challenges. existing charitable and pro-bono initiatives. More sophisticated Remember, the ultimate goal is to approaches re-engineer what you’re enable ease of doing business to already good at – mitigating risk – write and service insurance. www.chart-exchange.com

CHART DEFENDER

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Mark Lann Phone:

305-248-9495 Email: chart.eo@rockwoodinsurance.com

MAY-JUNE 2017

GLOBAL CYBER-AT SPECIAL REPORT BY CHART PARTNER WILSON ELSER

in the United Kingdom, gas stations in China and banks in Russia. This is just the tip of the iceberg and more attacks are certain to follow. As this experience Weapons in the Cyber shows, companies of all sizes, Defense Arsenal across all industries, in every by Anjali C. Das, Kevin Scott and country are vulnerable to cyber-attacks that can have John Busch devastating consequences he world recently for their businesses and experienced an operations. unprecedented global cyber-attack that targeted The Malware Families the public and private Exploiting vulnerabilities in sectors, encrypting and Microsoft® software, hackers a widespread locking electronic files. So far, launched it is estimated that hundreds ransomware attack targeting of thousands of entities hundreds of thousands of worldwide were victims of companies worldwide. The WannaCry ransomware; and vector, “WannaCry” malware, just as WannaCry is subsiding, encrypts electronic files and a new attack, Adylkuzz, is locks them until released by taking its place, crippling the hacker after a ransom is computers by diverting their paid in untraceable Bitcoin. processing power. Now the The malware also has the world needs to begin building ability to spread to all other computer systems on a a Cyber Defense Arsenal. network. On the heels of In May 2017, the WannaCry, a new attack world experienced an called “Adylkuzz” is crippling unprecedented global cyber- computers by diverting their attack that targeted the processing power. public and private sectors, including an auto factory in The most prevalent types of France, dozens of hospitals ransomware found in 2016 and health care facilities were Cerber and Locky.

Image Credit: Creative Commons LinK HERE

TTACK READINESS Microsoft detected Cerber, used in spam campaigns, in more than 600,000 computers and observed that it was one of the most profitable of 2016. Spread via malicious spam emails that have an executable virus file, Cerber has gained increasing popularity due to its Ransomware-as-a-Service (“Raas”) business model which enables less sophisticated hackers to lease the malware. Check Point Software indicated that Locky was the second most prevalent piece of malware worldwide in November 2016. Microsoft detected Locky in more than 500,000 computers in 2016. First discovered in February 2016, Locky is typically delivered via an email attachment (including Mocrosoft Office documents and compressed attachments) in phishing campaigns designed to entice unsuspecting individuals to click on the attachment. Of course, as the most recent global attacks demonstrate, hackers are devising and deploying new variants of ransomware with different capabilities all the time.

The Rise of Ransomware Attacks The rise in ransomware attacks is directly related to the ease with which it is deployed and the quick return for the attackers. The U.S. Department of Justice has reported that there was an average of more than 4,000 ransomware attacks daily in 2016, a 300 percent increase over the prior year. Some experts believe that ransomware may be one of the most profitable cybercrime tactics in history, earning approximately $1 billion in 2016. Worse yet, even with the ransom paid, some data already may have been compromised or may never be recovered. The risk is even greater if your ransom-encrypted data contains protected health information (PHI). In July 2016, the U.S. Department of Health and Human Services, Office of Civil Rights (HHS/ OCR) advised that the encryption or permanent loss of PHI would trigger HIPAA’s Breach Notification Rule for the affected population, unless a low probability See Cyber-Attack Pag 25

ANALYSIS - WILSON ELSER Continued From Page 25

CYBERATTACK READINESS

•

The biggest event of 2016 was the beginning of RaaS, or the development of malware packages that can be sold to attackers in return for a percentage of the profits. Since January 1, 2016 , more than 4,000 ransomware attacks have occurred − a 300 percent increase over the 1,000 daily attacks seen in 2015. In the second half of 2016, the percentage of recognized ransomware attacks from all malware attacks globally doubled from 5.5 percent to 10.5 percent.

that the recovered PHI had been compromised could be • demonstrated. This means a mandated investigation to confirm the likelihood that the PHI was not accessed or otherwise compromised. to confirm the likelihood that the PHI was not accessed or otherwise THE BEST DEFENSE IS A GOOD OFFENSE compromised. While no perfectly secure computer system exists, companies can take RANSOMWARE STATISTICS According to security products precautionary measures to increase and solutions provider Symantec their preparedness and reduce their Corporation, ransomware was the exposure to potentially crippling most dangerous cyber-crime threat cyber-attacks. While Microsoft facing consumers and businesses in no longer supports Windows XP operating systems, which was hit 2016: the hardest by WannaCry, The majority of 2016 ransomware infections happened in consumer Microsoft has made an emergency computers, at 69 percent, with patch available to protect against enterprises at 31 percent. WannaCry. However, those still using Windows XP should upgrade • The average ransom demanded all devices to a more current in 2016 rose to $1,077, up from operating system that is still fully $294 in 2015. supported by Microsoft to ensure • There was a 36 percent increase protection against emerging in ransomware infections from threats. Currently, that means 340,665 in 2015 to 463,841 in upgrading to Windows 7, Windows 2016. 8 or Windows 10. • The number of ransomware “families” found totaled 101 Even current, supported software in 2016, triple the 30 found in needs to be updated when 2015. prompted by the computer. Those 26

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who delay installing updates may find themselves at risk. Microsoft issued a patch for supported operating systems in March of this year to protect against the vulnerability that WannaCry exploited. Needless to say, many companies did not bother to patch their systems in a timely manner. Ransomware creates even greater business disruption when a company does not have secure backups of files that are critical to key business functions and operations. It also is important for companies to back up files frequently, because a stale backup that is several months old or older may not be particularly useful. Companies also should make certain that their antivirus and anti-malware software is current to protect against emerging threats. In addition, companies need to train their employees on detecting and mitigating potential cyber threats. Employees are frequently a company’s first line of defense against many forms of routine cyber-attacks that originate from seemingly innocuous emails, attachments and links from unknown sources. Indeed, many cyber-attacks can be avoided if employees are simply trained not to click on suspicious links or attachments that could surreptitiously install malware. Last but not least, companies should consider purchasing cyber liability insurance coverage, which www.chart-exchange.com

ANALYSIS - WILSON ELSER is readily available. While cyber policies are still evolving and there are no standardized policy forms, coverage can be purchased at varying price points with different levels of coverage. Some of the more comprehensive forms of coverage provide additional “bells and whistles” such as immediate access to preapproved professionals that can guide companies through the legal and technical web of cybersecurity events and incident response. Other cyber policies afford bundled coverages that may include: • The costs of a forensics investigation to identify the source and scope of an incident • Notification to affected individuals • Remediation in the form of credit monitoring and identity theft restoration services • Costs to restore lost, stolen or corrupted data and computer equipment • Defense of third-party claims and regulatory investigations arising out of a cyber-attack. For additional information about the rise of ransomware and other cyber threats, and what companies can do to mitigate their risk, contact Partner Anjali Das, CoChair of Wilson Elser’s national Cybersecurity & Data Privacy practice, or Of Counsel Kevin Scott.

www.chart-exchange.com

About the Authors:

njali Das, Partner, Chicago, is co-chair of Wilson Elser’s Cybersecurity & Data Privacy practice and a member of the Information Governance Leadership Committee. In addition, she serves as a coordinating partner for the firm’s Directors & Officers Liability practice and a member of the Diversity Committee. Anjali has nearly two decades of experience representing insurers in connection with professional liability insurance coverage matters and claims involving accounting, finance and other complex business issues. Anjali represents the interests of U.S., London and Bermuda-based primary and excess insurers in high-exposure claims against directors and officers of public and private companies, nonprofit boards, financial institutions, investment banks, insurance companies, mortgage brokers, bank and custodial trustees, and ERISA plan fiduciaries. 312.821.6164 anjali.das@wilsonelser.com

evin Scott, Of Counsel, Chicago, focuses his practice on data security, privacy breach response (pre- and post-event), payment card industry (PCI) standards and investigations; GLBA, FERPA, COPPA, CalOPPA, and HIPAA/HITECH compliance; and advising clients in identifying, evaluating and managing first- and third-party data privacy and security risks. Kevin frequently advises clients on compliance with state, federal and international laws and regulations. He is an integral member of Wilson Elser’s breach response team, quickly bringing lawyers, clients, and forensic and breach response vendors together to optimize response time and effectiveness. Kevin has handled numerous breaches for small and large entities, including merchants, financial institutions, medical providers and educational institutions, successfully reducing public and regulatory scrutiny and protecting clients’ reputations. 312.821.6131 kevin.scott@wilsonelser.com

ohn Busch, Associate, Houstan, assists clients and firm practices in all areas of insurance litigation, including general liability and casualty, premises liability, product liability, toxic tort and data security. John has litigation experience in state and federal court, and he has provided counsel at all phases of litigation and trial. John regularly represents corporations and individuals in a wide range of personal injury litigation from initial case development to trial. John has assisted clients from product manufacturers to premises owners in defense of all types of personal injury claims. 713.353.2023 john.busch@wilsonelser.com

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NEWS

Lloyd’s Controller of Agencies, David Lawrence, added: “Polar waters remain an extreme environment for vessel operations and therefore establishing a framework for sharing information on risks and experiences is a very positive development for the Lloyd’s market and the wider marine insurance community. We look forward to welcoming all participants to the inaugural Arctic Shipping Best Practice Information Form next month in London.”

he Declaration was made at a Ministerial Summit yesterday in Fairbanks, Alaska, attended by According to the Declaration, the eight Arctic States the foreign ministers of the eight Arctic states, all welcomed “the entry into force of the Polar Code including US Secretary of State, Rex Tillerson. to ensure safe and environmentally sound shipping in the harsh Arctic marine environment.” The Council The Forum has been established to help raise also noted “with appreciation” the establishment of awareness and implementation of the International the Forum. Code for Ships Operating in Polar Waters (Polar Code), a binding international framework that seeks to protect Lloyd’s market practitioners will take part in the first the pristine Arctic and Antarctic regions from maritime meeting, along with many industry representative risks. It came into force in January. bodies and Arctic Council Delegations, at the Forum The Lloyd’s market has played a key role in both finalising the Polar Code and creating the Arctic Council’s Forum. Speaking in Fairbanks yesterday, Michael Kingston, representative of the International Union of Marine Insurance (IUMI) on the finalisation of the Polar Code and legal advisor to the Joint-Hull Committee on polar issues, said: “This Declaration by the Arctic Council is historic. The Forum will help implement international regulation for the protection of seafarers, the environment and the indigenous peoples of the Polar Regions. It is an example of what we can achieve when we work together in industry and with governments and international regulators.” www.chart-exchange.com

on June 5-6. WHAT IS THE POLAR CODE?

A key element of the Polar Code is the requirement for any ship operating in polar waters to have a Polar Waters Operational Manual (PWOM) which sets out how the crew will respond in a worst-case scenario. If the PWOM is appropriate, only then should the operator receive a Polar Ship Certificate from their Flag State. T he Code also requires ship owners to have in place contingency plans for all aspects of marine operations including safety of navigation, pollution incidents, ship structure requirements, and search and rescue plans. In parallel, Lloyd’s and Lloyd’s Register have been actively involved in an industry-led approach to help create standards that will mitigate risk and support marine risk underwriters in polar waters.

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OUR TEAM IS THERE FROM THE START TO THE FINISH NSM Insurance Group Comprehensive Insurance Coverage for: Social Services I Addiction Treatment I Professional Liability Staffing Firms I Workers' Compensation I Collectible Vehicles Coastal Condo Associations I Breweries and Wineries Sports and Wellness I Specialty Aviation

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NEWS

MANY U.S. AGENTS UNAWARE OF LLOYD’S VERSATILITY

ith a history going back nearly 328 years, Lloyd’s of London is widely recognized as one of the oldest insurance brands in the world. Unfortunately, a number of U.S.-domiciled agents operate under the misconception that Lloyd’s is only a market for unique, specialty risks (more about that later). In reality, the insurer has been a major force in this country for well over a century. Almost 40% of Lloyd’s global annual premium comes from the U.S. In 2015, that was $15 billion! On April 18, 1906, an earthquake registering 8.25 on the Richter scale devastated San Francisco, CA. The phenomenon triggered uncontrollable fires lasting three days. Over 3,000 people perished; nearly half of the city’s population was homeless. Direct quake losses totaled $24 million and fires constituted $500 million, akin to over $10 billion in today’s dollars. British insurers paid out more than onefifth of these total claims. One of the leading Lloyd’s underwriters famously instructed his San Francisco agent to “pay all of our policyholders in full, irrespective of the terms of their policies”.

option to purchase insurance from Lloyd’s to mitigate the loss of key personnel due to such a fortuitous event. 3. Politically Incorrect HO-2 Policy Form. A Householder’s Comprehensive policy form written in 1914 covered damages from such named perils as aeroplanes, airships, riots, strikes… and suffragists. 4. Alien Abduction Insurance. Concerned about the possibility of having an uncomfortably “close encounter” with an extra-terrestrial? Lloyd’s is willing to underwrite the exposure. 5. Werewolf/Vampire Attack Insurance. The success of the Twilight series had one unfortunate consequence: people began to get concerned about turning into creatures of the night. Fortunately, there is an insurance policy for that.

In August 2005, Hurricane Katrina devastated the Gulf Coast. It was one of our costliest national disasters, as well as one of the five deadliest hurricanes, in the history of the United States. Lloyd’s responded quickly to the catastrophe, sending thousands of loss adjusters to the region, paying billions of dollars in claims, and donating millions of dollars in relief funds. Lloyd’s reputation as an innovative and forward-thinking insurer has resulted in its covering many unusual risks including: 1. Celebrity Body Parts. Most of us have heard the story about the 1940’s pin-up/movie star Betty Grable having her legs insured. Lloyd’s has also provided coverage for Jimmy Durante’s nose, Bette Davis’ waistline, and Bob Dylan’s vocal cords. More recently, the star of the Ugly Betty TV show (America Ferrera) had her teeth insured for $10 million. 2. Lottery Winners’ Insurance. Ask most people what they’d do if they won big in a lottery and they’d respond with “quit my job”. Fortunately, employers have the www.chart-exchange.com

Proud supporters of CHART

Serving coverholders’ needs since the 1930s … and into the future Bespoke solutions Packaged lines Enhanced commissions Web-based platforms US domiciled marketing office Access us through 170 Lloyd’s brokers

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Simplify your workflow! Give your team a clear path to winning new policies!

For over 18 years the NetRate Systems team has been tailoring insurance processing solutions to meet the unique requirements of each of our MGA, Program Administrator, Carrier, and Lloyd’s clients in the P&C marketplace. From submission portal through rating to policy issuance, our solutions will help you minimize key strokes, simplify workflow, and reduce systems maintenance.

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NEWS-ANALYSIS

VENTURE INSURANCE PROGRAMS NETRATE SUCCESS STORY

enture Insurance Programs implemented NetRate System’s technology platform with outstanding results: COMPANY CLOSE-UP

Venture Insurance Programs is a full-service program administrator providing specialty coverage for Golf Clubs, Social Clubs, City Clubs, Resorts, Boutique Hotels, 4/5 Star Franchise Hotels, Hunting & Fishing Lodges, Plantations, and Golf or Hotel Management Companies. The programs are distributed on an open market basis through insurance agents and brokers. One of Venture’s key strengths in addition to its expertise, insurance products and risk management, is its technology platform, enabling the program administrator to offer speed to market with accurate rating, quoting, binding and policy issuance. OUTCOMES & RESULTS

• • •

Reduced policy issuance time from over an hour to 20 minutes Overall IT savings of at least 20% for the year Facilitation of future program additions on platform with minimal training involved www.chart-exchange.com

The success behind Venture NetRate Systems provides us with Insurance Programs, a national the solution to accomplish all of this.” specialty programs manager specializing in specific niche THE PARTNERSHIP GROWS markets for 25 years, is its ability Venture first partnered with NetRate to bring competitive solutions in 2009, utilizing the vendor’s to the market with speed, commercial rating system for its agility, accuracy flagship Golf We need and efficiency. & Country This capability the ability Club program. c o m b i n e d to rate and deliver “We had the with its strong opportunity to proposals to our carrier partners, partner with a customized brokers in a timely major carrier,” programs and explains Tina, fashion. We also products, and need to bind and “who wanted broker distribution us to invest in network allow issue policies quickly a platform that Venture to deliver while providing gave us complete responsive control over our carriers with underwriting, rating, quoting, reports for better rating and policy p r o p o s a l issuance supported business decision- creation, policy by unparalleled making. NetRate issuance and client servicing. statistical

Systems provides us with the solution to accomplish all of this.”

“Our platform is instrumental in helping us deliver the service that both our carrier and broker partners have come to expect from us,” said Tina Land, Venture’s Chief Operating Officer. “We need the ability to rate and deliver proposals to our brokers in a timely fashion. We also need to bind and issue policies quickly while providing our carriers with reports for better business decision-making. TABLE OF CONTENTS

reporting. NetRate’s ISO® rating engine is active in all 50 states, which met the criteria for our national program. We contracted with NetRate for our rating needs and with another vendor to provide us with the forms we required for policy issuance and endorsements. We bridged the

See Venture A NetRate Success Pg 34 MAY-JUNE 2017

ANALYSIS Continued From Page 33

VENTURE PROGRAM A NETRATE SUCCESS two systems together to obtain the results we needed.” Since that time, NetRate developed its own policy issuance system with NetPPS, Policy Printing System. When Venture brought on another carrier that wrote in selected states for its Golf & Country Club program, the program administrator looked to NetRate for a complete solution. “We used NetRate’s rating and forms platforms for this secondary program in the six or seven states in which it was available,” notes Tina. “This worked out extremely well; we gained efficiency by eliminating the systems bridge and manual data entry in certain areas.” In fact, due to the smooth workflow process and improved efficiencies in utilizing one platform to handle all transactions, Venture decided to move its principal program in 50 states to NetRate’s NetPPS system as well. “We began working with NetRate to make the transition for our 50-state program to their PPS 34

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system in October 2014. We had a hard deadline of May 2015, which was the expiration date of our contract with our forms vendor. NetRate made it happen, meeting our deadline. This was a huge undertaking and has been well worth it,” comments Tina. “Working with NetRate on this project has been an excellent experience.” INSURANCE PROGRAMS

the underwriter can check and confirm the information, and the proposal can be created. You are entering data one time, in one place,” Tina stresses. What’s more, Tina explains, “after the proposal is presented you can easily make changes to further reflect the best product fit for the client. The proposal gets populated using revised data from the rating changes made. Our brokers can then present the revised proposal and easily bind coverage as most of the information is already there.”

In moving the forms to NetRate’s PPS system, Venture was also able to implement The time its proprietary proposal. “Our it takes client proposal to issue a policy includes our has been reduced expertise,program by over 65% with highlights and differentials and NetRate. We went benefits. Prior to from spending an using NetRate, hour-plus to issue we produced our proposals in Word one policy to 20 by combining minutes. This is various documents. Now we have one extremely critical for source from which us, as quality service to pull data from is our policy. We the rating, quoting promise to deliver in and coverage forms into our proposals,” a timely fashion, and explains Tina. that is exactly what

Additionally, the NetRate System gives Venture the ability to provide carriers with requested reports through either its NetStat or NetData Warehouse products.

“We are able to extract, from the system’s warehousing of data, relevant reports with information to help us and our carriers make we are doing.” strategic business Having this decisions about capability enables our programs,” Venture to get to market more quickly while also eliminating the explains Tina. “We review rate opportunity for human error. “A monitor reports for each line rater can enter the information, of business to analyze the endorsements we have added TABLE OF CONTENTS

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ANALYSIS picture view for each of our programs and the potential for new opportunities.” In fact, NetRate provides clients the ability to produce several key reports, including a summary of changes on renewal quotes along with the rate change percentage, and a summary of property coverages and values for selected quotes and policies, which is also available in a carrier-specific modeling format. SMOOTH WORKFLOW, REDUCING COSTS

Tina also expects to see a huge savings this year. “Last year we incurred the cost of implementing the new forms system but we expect to see at least a 20% savings overall the following year, which is huge.”

In addition, when Venture adds another carrier or program that is ISO®-based, the forms are already in their NetRate System’s library. All they have to do is add Venture’s carrier’s proprietary form. “Our users are familiar with “The time it takes to issue a the NetRate System and all the policy has been reduced by over data is set up in a similar format, 65% with NetRate. We went from therefore minimal training is spending an hour-plus to issue involved,” This is another value one policy to 20 minutes,” Tina driver for us,” she says. “It’s a huge says. “This is extremely critical for asset to have everything in one us, as quality service is our policy. place.” We promise to deliver in a timely fashion, and that is exactly what ABOUT NETRATE SYSTEMS we are doing.” NetRate Systems, Inc. supplies In just the six months or so that Venture has utilized the NetRate System for its rating, quoting, proposals and policy issuance, workflow has improved significantly.

Other benefits include the cost savings from eliminating the need for two vendor licensing contracts, and for Venture’s IT department to maintain two backend systems, including two databases, the servers involved and communication time with the respective vendors. www.chart-exchange.com

Commercial Lines Rating and Policy Issuance Systems to the Property and Casualty insurance marketplace, primarily to MGAs, Program Administrators, Carriers, and Lloyds Coverholders and Risk Takers. Its systems are designed to automate submission workflow and processing, underwriting, rating, document generation, TABLE OF CONTENTS

policy issuance, and reporting through the full policy life cycle. The rating and policy issuance solutions includes support for all major ISO® lines of business, nationwide. NetRate also offers custom development of all lines of business, including custom Professional Liability. NetRate solutions are deployed in the cloud, which minimizes the need for hardware and IT staff maintenance requirements. NetRate Systems also provides integration of third-party data sources and services to speed up the quoting and subsequent reporting processes. The firm also has strong partnerships and integrations with third-party policy administration systems.

NETRATE PRODUCTS & SERVICES

• NetRate ISO Commercial Lines Rating • NetRate Custom Rating • NetPPS Policy Issuance • NetSynergy Web Services • NetStat Statistical Code Generation • NetExport Integration Service • NetData Warehouse

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Dedicated Binding Authority Adjusting Team Dedicated E&S/Specialty Lines Open Market Adjusters Back office team for banking, bordereau production, MI reporting Customized Physical Risk Assessments (Risk Control) Virtual Risk Evaluation Services To learn more, contact Aubrey Fountain, at 850.650.2380 or Aubrey.Fountain@yorkrsg.com.

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LLOYDâ&#x20AC;&#x2122;S OF LONDON

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