The CHART Exchange August 2019

TABLE OF CONTENTS

6 Glenn W. Clark, CPCU, Publisher CHART Exchange Earliest Adopter

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Chart Regional Meetings Proving Very Productive

9

Breaking Down The Dutch Child Labor Due Diligence Act

15

Insurtechs: Who Made The Cut To Help Support The Future At Lloyd’s

16

Parametric Insurance And Smart Contracts To Improve Customer Experience

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Understanding Digital Engagement Necessities In Property/Casualty Insurance

25

Innovation Station, Cleveland, OH & Technological Advances

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I Love To Talk! - By Cooper Wallach

31

Workplace Discrimination A Critical Issue In Employment Practices

35

Women Who Lead: Women In Cyber Leadership Corp.

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Opportunities Abound Organize And Embrace Change

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Lloyd’s Confirms Targets For Electronic Placement For Remainder of 2019

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M&A Services’ Paul Procops Winner Of 10th Annual Emerging Leaders Award

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Lloyd’s Launches New Tool To Improve Insurance Contracts For Customers

SPECIAL REPORT:

AUGUST 2019 VOLUME 4 - ISSUE 8

Understanding Digital Engagement Necessities In Property/Casualty Insurance

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

info@chart-exchange.com 3001 Philadelphia Pike Claymont, Delaware 19703 www.chart-exchange.com 302-765-6001 Last Issue:

PREFER TO READ IN PDF FORMAT? DOWNLOAD THE PDF VERSION HERE

ADVERTISING IN THE CHART EXCHANGE MAKES SENSE: CALL KATE: 302.765.6056

“WHEN YOU’RE FINISHED CHANGING,

YOU’RE FINISHED” - Benjamin Franklin

Benjamin Franklin: Scientist, philosopher, Founding Father … and business strategist?

Mr. Franklin’s advice about adapting to thrive is especially appropriate in the highly fluid insurance industry.

The CHART Exchange began with a good idea back in 2015: become the catalyst for growth in the U.S./London marketplace by facilitating interaction between domestic wholesalers/agency specialists and Syndicate underwriters. Large-scale networking events were held annually in elegant venues. While this approach produced results, feedback from the meeting participants indicated we could do much more to achieve our goal.

As a direct result of this feedback, CHART 2.0 adopted a more proactive operating model intended to provide advocacy-level support to U.S.-based agencies seeking to place business within the London market. The expertise of our various Vendor Partners — when combined with new brokerage placement capabilities — gives CHART 2.0 clients access to a broad array of services they need to be successful.

Interested in learning more? Visit our website at www.chart-exchange.com. We are also available via e-mail (info@chart-exchange.com) or by phone at the number below.

www.chart-exchange.com

The CHART Exchange, 3001 Philadelphia Pike Claymont, DE 19703

Phone: (855) 716-3660

•

Fax: (302) 334-0325

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MESSAGE FROM THE EARLIEST ADOPTER

CHART REGIONAL MEETINGS PROVING VERY PRODUCTIVE Glenn W. Clark, CPCU Publisher & Earliest Adopter

If you are interested in attending the next CHART meeting in New York, we suggest you act quickly! In order to give everyone the attention they deserve, participation will be limited to 50 agency attendees.”

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I

n the previous edition of CHART Magazine, we discussed the new approach being taken with regard to our meetings. Originally, CHART had followed the traditional game plan of many other association groups within the insurance industry – opulent venue sites, agendas spread over multiple days, guest speakers, and registration fees assessed to all attendees.

While most would consider the dozen new binding authority agreements with Lloyd’s a testament to the success of this meeting formula, we weren’t satisfied. Post-event feedback from a number of wholesale/specialty agent participants suggested that the sheer size of the events had actually hindered their ability to accomplish their business objectives.

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Last year, the team took a step back to re-evaluate our entire business model.

We entered 2019 with an entirely new philosophy, one intended to deliver optimal benefit from those who seek our assistance in doing business with the London market. We called this new attitude “CHART 2.0”. One of the changes implemented was a move away from a single annual event in favor of several smaller, regional sessions held throughout the year.

The meetings themselves are hosted at one of Wilson Elser’s 37 branch offices. The meetings are limited to a single day and there are no registration fee assessed for insurance agent attendees.

Our inaugural regional meeting was held in Dallas TX this past February.

The smaller, more intimate venue

www.chart-exchange.com

allowed our team to better assisting the agency attendees to achieve their goals. Three new program ideas presented that day are well on their way to launch.

You’ll recall the recent announcement that the next regional CHART meeting has been scheduled for September 30, 2019 in New York, NY. We have been hard at work in the development of a business-driven agenda that will inure to the benefit of all attendees.

Consider some of the highlights: •

•

A “virtual” presentation by Hank Watkins (Regional Director & President, Americas Lloyd’s) regarding plans to perpetuate the market’s success over the coming years. Hank will be participating via video conference directly from London; we’ll be among the first to learn of Lloyd’s new strategies.

A testimonial on the success of the “incubator” initiative available through CHART. Learn how Rockwood Programs – in collaboration with Wilson Elser and a London Broker – was able to expedite the launch of a new program surfaced during the February meeting in Dallas.

www.chart-exchange.com

•

•

A presentation about the steps involved in obtaining Delegated Underwriting Authorities from Lloyd’s (Tribunalization) – told from the perspective of the agency that secured it.

A lesson in the value and opportunities available through fronting (offering a Londonunderwritten product to the domestic market on admitted paper).

If you are interested in attending the next CHART meeting in New York, we suggest you act quickly! In order to give everyone the attention they deserve, participation will be limited to 50 agency attendees. Write to us at info@chart-exchange.com to reserve your spot for the next event.

There is still one more opportunity to participate in a CHART meeting this year if your schedule prevents you from joining us in September. Our team has recently finalized the timing of the west coast meeting; it will be held on November 18 in Los Angeles CA. More information on that event will be available shortly.

If you would like our team start work on a new business idea prior to any of our meetings, let us know. Simply complete the program questionnaire so we can begin the evaluation process.

Glenn W. Clark , CPCU CHART’S Earliest Adopter

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7

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BREAKING DOWN THE DUTCH CHILD LABOR DUE DILIGENCE ACT

By John Arvanitis and Kevin Braine

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ew legislation adopted by the Dutch Senate will make it a legal obligation for companies to perform supply chain due diligence. The aim of the legislation (available here in Dutch) is to compel organizations to prohibit their goods and services from being produced utilizing child labor and to institute swift corrective actions if such activity is discovered.

This compliance obligation goes beyond just Dutch companies, it also includes foreign companies doing business in the Netherlands, and as such they may face potentially serious penalties for their actions.

Who is Impacted by the Dutch Child Labor Due Diligence Act? The Dutch Child Labor Due Diligence Act (the Act) applies to all companies that sell or supply goods or services to Dutch consumers, no matter where the company is based or registered, with no exemptions for legal form or size. The Act defines consumers as the natural person or legal entity using, consuming, or purchasing goods or services. Companies that fail to exercise child labor due diligence are subject to potential financial and legal enforcement actions, including multiple years of imprisonment.

The Act has a tentative enforcement date of January 1, 2020. However, members of the Dutch Parliament indicated during their May 14 vote that they do not anticipate the Act will go into effect until 2022. In the meantime, the government is preparing a General Administrative Order (GAO) to identify the regulating body that will enforce the Act and detail companies’ specific obligations to adhere to the statute.

While the effective date is set for 2020, the Act contains a transitional See Dutch Child Labor Page 27

J

ohn Arvanitis is a managing director in the Compliance Risk and Diligence practice of Kroll based in the Boston Office. John advises clients worldwide on anti-money laundering matters and other aspects of compliance programs, bringing impactful and valuable insight to their challenges via his extensive international and domestic financial investigative experience. He has significant experience across a broad range of compliance-related programs, including anti-money laundering, know your customer, global AML processes, and program and policy formation.

K

evin Braine is managing director and head of Kroll’s Compliance Risk and Diligence practice in EMEA for Kroll based in the London office. Kevin has extensive experience assisting clients in areas such as pre-transaction due diligence, hostile M&A support activities, third party agent screening, and market and competitor intelligence gathering. He has managed numerous outsourced anti-bribery and anti-corruption programs for a wide range of financial and corporate clients.

www.chart-exchange.com

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9

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ANALYSIS - SIAA

OPPORTUNITIES ABOUND ORGANIZE AND EMBRACE CHANGE REPRINTED WITH PERMISSION FROM PIA MANAGEMENT SERVICES, INC.

By Matt Masiello, CEO, SIAA

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bout the author: Matt Masiello is executive vice president and COO of SIAA. Matt is responsible for operational management of the largest alliance of independent insurance agencies in the United States and its related companies, providing leadership to over 50 direct employees, 49 Master Agencies and more than 6,500 independent insurance agents across the United States. Matt is also president and CEO of SAN Group and Strategic Independent Insurance Agency Solutions.

www.chart-exchange.com

ndependent agents who remain static and focus only on servicing their current books of business are not positioning themselves for the future. With direct writers and new technology eating away at standard agency offerings—price-sensitive auto and some home insurance— professional insurance agents need to keep an eye on the competitive landscape. That means finding time in their busy schedules to develop a strategic plan—and giving themselves the products, tactics and tools they need for success.

The planning process begins by examining where you are now: Where is your agency growth coming from?

What differentiates your agency in today’s crowded insurance market?

And, do you have a strong and sustainable industry or operating niche? It’s also important to look at what your competitors are doing; how technology is affecting your business; and how you can use it in your favor. Also, look at whether you have the markets, internal resources and community presence to TABLE OF CONTENTS

implement new strategies effectively.

EVALUATE YOUR AGENCY If you don’t know how to start when evaluating your agency, a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a good place to start. This technique can help you carve out a sustainable niche in your market, and a simple web search will give you plenty of guidelines to help you along.

Don’t forget to include your staff in the SWOT analysis, get their input, buy-in and have them be part of the solution.

This analysis makes you examine how to build on your strengths. Maybe you have a strong industry niche; a recognizable brand; or impressive community presence. It also asks you to consider your weaknesses. Maybe your investment in technology has lagged behind other agencies, or you rely on home and auto policies rather than expanding into commercial lines or life insurance. Perhaps your staff lacks training to sell these other policies.

Then, find opportunities upon which you can capitalize. These may include

See Opportunities Abound Page 22 AUGUST 2019

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NEWS - M&A SERVICES

M&A SERVICES’ PAUL PROCOPS WINNER OF 10TH ANNUAL EMERGING LEADERS AWARD BY THE M&A ADVISOR

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ew York, NY, May 31st, 2019 – The M&A Advisor announced this year’s winners of the 10th Annual Emerging Leaders Awards.

Renowned globally for its recognition of leading M&A, financing, and turnaround professionals, The M&A Advisor created this awards program to honor the emerging leaders of our industry, and to promote mentorship and professional development of the talented young professionals in our midst.

MR. PAUL PROCOPS, M&A SERVICES’ VICE PRESIDENT – WINNER IN THE EMERGING DEALMAKER CATEGORY. “The Emerging Leaders Awards program—originally known as the ‘40 Under 40 Awards’—were created in 2010 to recognize and celebrate the achievements of the outstanding young professionals who have reached a significant level of success while still under the age of 40. These impressive young professionals have

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made notable contributions to our industry and to their communities.

Truly, the Emerging Leaders Awardees we are honoring are the best and the brightest. They are the future of the M&A, finance, and turnaround industry” said Roger Aguinaldo, Founder of The M&A Advisor.

The 2019 award winners were chosen from a pool of prominent nominees identified for their notable accomplishments in business and in service to the community. Evaluation of the nominees and selection of the winners was completed by an independent judging panel made up of prominent members and experts in the M&A, finance, and turnaround community.

“It’s an honor to be recognized by the M&A Advisor as an Emerging Leader in the Dealmaker category.” said Mr. Procops.

“Mr. Procops’ determination and hard work has led him to become not only a leader and asset to the firm, but also a recognized and trusted contact TABLE OF CONTENTS

throughout the industry” said M&A Services’ CEO, Jason Murgio. “He has a strong moral compass and can always be counted on to do right by his clients. His ability to deliver the best solutions to his clients and work his way through complex finance deals truly denotes him as an emerging leader and respected investment banker.”

Within his nine years at the firm, Mr. Procops has grown to be one of the top three dealmakers, completing in excess of $500MM in transaction value. He has also been instrumental at mentoring and grooming younger members of the Firm as they learn and grow within the business. His ability to work with “C” level executives at a young age, successfully acting as the deal leader on large insurance company transactions, has set him apart from his peers. Mr. Procops is trusted amongst the senior members of the firm to handle the most important and high-profile transactions due See Paul Procops Winner Pg 48

www.chart-exchange.com

NEWS

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within the insurance industry by assisting firms with their corporate development and acquisition/divestiture objectives.

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NEWS - LLOYD’S OF LONDON

INSURTECHS: WHO MADE THE CUT TO HELP SUPPORT THE FUTURE AT LLOYD’S Lloyd’s today welcomed eleven new teams of InsurTech disruptors to join the global (re)insurance market’s innovation accelerator

M

ore than 130 applications were received from across the world for the third cohort of the Lloyd’s Lab. The eleven successful teams were selected as part of a competitive process involving twenty-four shortlisted applicants who presented their ideas to experts across the market during pitch day.

Lloyd’s has recently committed to expanding the scope of the Lloyd’s Lab, as part of its bold new strategy for the future. The eleven successful teams are aligned with this strategy. They will begin working in the Lab as part of a ten-week programme that kicks off on September 2.

The full list of teams that will be working with Lloyd’s innovation accelerator as part of Cohort three is below. The start-ups are focused fully on finding solutions with the potential to contribute to the ecosystem of services as part of the future at Lloyd’s vision, including ways to enhance data sharing and provide new sources of risk insight; pricing and risk models to help Lloyd’s market participants better www.chart-exchange.com

Lloyd’s has recently committed to expanding the scope of the Lloyd’s Lab, as part of its bold new strategy for the future.

The eleven successful teams are aligned with this strategy. They will begin working in the Lab as part of a tenweek programme that kicks off on Sept. 2.”

this bold new strategy. We see a huge opportunity to partner with the brightest and best talent from the technology sector to develop new ideas, new ways of working and of serving our customers. Nowhere is this more keenly felt than in the Lloyd’s Lab, where talent, technology and capital intersect so creatively. We want to harness this creative spirit to help us build a new Lloyd’s, which is nimbler, more customer focused, faster and more efficient than ever.”

Congratulations to the following for becoming part of the Lloyd's Lab cohort three: •

understand threat scenarios; and ways to reduce the cost of processing claims as well as the burden of compliance and regulation.

Bruce Carnegie-Brown, Lloyd’s Chairman, said: “Times are changing, and we are building a new vision for the future at Lloyd’s. The third cohort of the Lloyd’s Lab will be fully aligned with TABLE OF CONTENTS

ClimaCell is the first microweather™ technology company, finding and forecasting weather that others can’t see.

By taking an internet-of-things approach to collect millions of weather observations, ClimaCell forecasts at the street (not city) level.

See Insurtechs Who Made The Cut Pg 26 AUGUST 2019

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NEWS - LLOYD’S OF LONDON

PARAMETRIC INSURANCE AND SMART CONTRACTS TO IMPROVE CUSTOMER EXPERIENCE Parametric insurance and smart contracts could help insurers offer customers better products and services, according to two new reports published by Lloyd’s today.

T

he smart contracts report, Triggering Innovation – How smart contracts bring insurance to life, has found they could be used to increase efficiency and add value for customers.

Smart contracts are contracts that are either totally or partially automated by computer code, reducing the time taken to get a policy to the customer and a claim paid. carry out various insurance processes such as risk placement, premium payment, warranty enforcement, and claims assessment and settlement.

The report describes four practical applications for smart contracts in

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the cargo, contingency/aviation, agriculture and property catastrophe classes, and shows how full claims and/or workflow automation could be applied to further classes in the Lloyd’s market.

The parametric report, Triggering Innovation – Parametric insurance (only available to Lloyd’s market participants) identifies similar benefits. Parametric policies trigger a pre-defined level of claims payment quickly after pre-agreed parameters have been exceeded, such as an earthquake over a certain size.

As policies are based information such as previous loss events and independently verified data, insurers have more scope to design products for risks that could otherwise be uninsurable or underinsured. The report also contains three case studies (available to everyone) that demonstrate how Lloyd’s parametric policies are helping agricultural producers in Europe, the UK and the US manage the risks to their businesses.

Trevor Maynard, Lloyd’s Head of Innovation, said: “The Lloyd’s TABLE OF CONTENTS

parametric products highlighted in the report demonstrate the value of combining the best underwriting and broking expertise in the Lloyd’s market with the latest technology to deliver outstanding products and services to our customers.

While smart contracts are a nascent technology, they offer exciting potential to transform the customer experience and it’s something we are looking to develop at Lloyd’s.

These reports offer in-depth analysis of how insurers can use new technology and products to benefit their customers, and ultimately generate new business.”

Caroline Dunn on definitive, Lloyd’s Head of Class of Business, said: “Lloyd’s welcomes the underwriting of risks on a parametric basis for a diverse range of classes of business for a variety of customers, including re-insureds, as well as personal and commercial lines’ customers.

We have worked to provide Lloyd’s market participants with a thorough insight into the parametric insurance market, including legal considerations, design features and the applicability of parametric products within Lloyd’s.” www.chart-exchange.com

NOW HERE’S A REAL SHOCK… The first firearm liability product that can be sold by independent insurance agents!

It is estimated that nearly 80 million Americans own at least one firearm. But what happens if a law-abiding citizen is actually forced to use that weapon to protect themselves, a loved one, or their personal property? Many homeowner policies specifically exclude firearm use — even in self defense — as a covered exposure, deeming it to be an intentional act. That leaves the gun owner personally liable for legal expenses, bail bond costs, and any judgments awarded through a civil action.

As an insurance agent, you are in the best position to explain the significant personal liability exposure faced by your gun-owning clients. Unfortunately, you haven’t been able to help your clients by offering a product to address this need — until now.

Rockwood Programs now offers a firearm liability policy designed to protect insureds against civil or criminal actions resulting from the use of a gun in self-defense. It is the only one available in the industry that can be sold through insurance agents. A wide variety of limit options are available, ranging from $50,000 to $5 million. Annual premiums start at just $135.

Best of all, we make it easy for you to present the firearm liability product to your clients. An inventory of customizable sales aids is available, including marketing brochures, simplified self-rating applications, and more. Our team can even help provide product-specific content for your website!

Visit us at www.rockwoodinsurance.com to learn more We can also accommodate group accounts (police, security, gun clubs, etc.).

E-mail: president@rockwoodinsurance.com

Rockwood Programs, Inc., 3001 Philadelphia Pike, Claymont, DE 19703 p: 800-558-8808 • f: 302-764-5477 • e: sales@rockwoodinsurance.com

SPECIAL REPORT - VALUE MOMENTUM

UNDERSTANDING DIGITAL ENGAGEMENT NECESSITIES IN PROPERTY/CASUALTY INSURANCE

By Abhijeet Jhaveri

A A

BOUT THE AUTHOR: Abhijeet Jhaveri is

Chief Marketing Officer at ValueMomentum and leads ValueMomentum’s

Celent report on distribution management reports that insurance companies are expanding channels, adding distributors, moving into new territories, and working to optimize their existing channel in order to improve customer acquisition and retention. How can an insurer retain insureds in the digital age? The question can be attributed to big tectonic shifts occurring in virtually all industries, and particularly in the P/C insurance industry.

emerging on the scene. Technology is also paving the way for new business models. The Internet of Things (IoT), Peer-to-peer insurance, Ondemand insurance are fueling new business models with new Insuretech companies emerging on the scene such as Metromile, Bunker, Slice Labs, Lemonade, Notion, amongst others.

While not all of these are assured of success, massive funding in this space is driven by inefficiencies to be eliminated in the distribution process and new markets to win. And all of these ventures are adopting a “digital first” approach.

software-as-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

Understanding Digital Engagement – Step One in The Property & Casualty Insurer’s Journey to Navigate in the Digital Age.jpegDistribution channels are changing and new innovative business models are emerging – evidenced by billions of dollars of funding from not only traditional venture funds, but also by the venture arms of large global insurance carriers.

Digital agencies such as The Zebra, Hippo, Bold Penguin, EverQuote, Coverhound, Coverwallet, Embroker, Insureon amonst a host of others are

The impact of digital is getting bigger and consequently, there are major shifts underway that make it necessary for insurers to adapt.

Failing to embrace the opportunities presented by digital and not moving fast enough, is a risky proposition.

Take for example, Blockbuster Video – which failed to heed the challenge from Netflix with streaming video – and filed for bankruptcy. There are other cautionary tales such as See Digital Engagement Page 20

processing Solution.

www.chart-exchange.com

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SPECIAL REPORT- VALUE MOMENTUM Continued From Page 19

DIGITAL ENGAGEMENT IN THE P&C INSURANCE INDUSTRY Blockbuster, who became irrelevant even though they commanded dominating positions in the marketplace.

CREATING VALUE AT THE NEW FRONTIERS OF BUSINESS

Insurers can help their end customers benefit from preventive maintenance – for example smart buildings are expected to bring down risk of loss.

Sensors in jet engines are jumping from 250 to 5000 resulting in the ability to benefit from predictive maintenance. Similarly, monitoring weather, animal health, changes in soil, can help in taking timely action and reducing losses.

However, to view these digital enablers, with a lens of cost saving or loss prevention, would be shortsighted. There are many other So how are property & casualty benefits including the ability to insurance carriers positioned to respond to these business To survive and thrive in the digital increase “stickiness” with your insureds and even generating drivers, and survive and age, property & casualty insurance new revenue streams. Such thrive as they have done in carriers must embrace the opportunities opportunities include: the face of similar tectonic fueled by digital. Responding to this shifts over the past decades changing landscape requires thinking • Better risk management and and centuries? The first about adding value in the frontiers of incentivizing insureds for the step is to understand your business, in designing your systems same what digital truly means. and processes to deliver delightful agent • Better customer segmentation According to McKinsey, for and customer experiences and instituting made possible by availing of some, it’s about technology. foundational capabilities. There are many rich behavioral data For others, digital is a new choices available for the latter – ranging • Better customer engagement way of engaging with by shifting from a “grudge buy” customers. And for others from vended solutions to do-it-yourself still, it represents an entirely approaches. Time is of essence, though as to enabling them to helping new way of doing business. the pace of change is rapid and presents protect their assets Consumers are making digital part of their daily lives and their daily experiences – accessing almost infinite information in their palms via

McKinsey helps define both – tremendous opportunities and also These examples suggest that digital as encompassing significant risk to becoming obsolete!” insurers can embrace digital three attributes: creating to provide higher value to value at the new frontiers of mobile phones or in their cars, homes their customers. Property & Casualty the business world, creating value in and places of work. Smart devices or insurance carriers already have some the processes that execute a vision of apps on your phone help individuals of this data and when combined with customer experiences, and building and businesses monitor their assets new digital capabilities such as IoT foundational capabilities that support – for example the NEST device which and data analytics, they are uniquely the entire structure. Let’s take a look can control your home temperature positioned to achieve their growth at each. remotely and also alert you in case of and retention goals. hazards like fires.

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www.chart-exchange.com

BUILDING FOUNDATIONAL DIGITAL CAPABILITIES According to McKinsey, the final attribute of digital involves the technological and organizational processes that allow you to be agile and fast. Such a foundation, according to McKinsey, involves two elements - mindsets and systems architecture.

McKinsey advises that digital is all about making better and faster decisions, and developing iterative and rapid ways of doing things.

For instance, insurers may minimize manual processes by enabling agents and/ The visual above shows the big picture on how today's complex digital landscape or customers to engage fits together for product development, marketing, sales, CRM, and line of business. throughout their buying and CREATING VALUE IN CORE journeys and demand the same servicing journey through an agent BUSINESSES from the insurers they partner with. portal or customer portal that enable No longer is it sufficient to provide them to fulfill their work in as few According to McKinsey, embracing prompt quotes during business keystrokes as possible by pre-filling digital also involves rethinking hours. data from third party providers, while how to use new capabilities to guiding them every step of the way. improve how customers are served.

The agents today, are always In another iteration, insurers may roll This is grounded in an obsession connected and may research where out capabilities that help their end with understanding each step of a to place their business at anytime customers manage their risks and customer’s purchasing journey— from any device.

And they want to be assets through new data capabilities. regardless of channel—and thinking guided on the products you offer, not about how digital capabilities can be knowledgeable on these products Establishing foundational capabilities design and deliver the best possible by reading your marketing literature also involves putting in place a experience, across all parts of the in a static website!

They expect you systems and data architecture. Such business. Let’s juxtapose this to the to support the process for winning an architecture, involves creating desire to attract and retain not just new business and servicing existing a two-part environment that top producers, but also the new business in the most efficient way, decouples systems which support generation of producers. These without having to spend their time critical functions and run at a slower constituents simply won’t stand for keying in data in multiple systems. pace, from those that support fastthe challenges presented by manual And this applies to the end insureds processes. They are accustomed to, moving, often customer-facing as well as insurers’ own employees! in their daily lives, getting instant gratification throughout their See Digital Engagement Page 42 www.chart-exchange.com

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ANALYSIS - SIAA Continued From Page 11

OPPORTUNITIES ABOUND expanding into other product lines; developing a specialty; or expanding your access to admitted or specialty/ program markets. Finally, identify threats to your business. These may include direct sellers or competitors that have invested in technology and are using it to grab additional market share.

When finished with this analysis, you should have a good picture of where your agency stands in today’s market, including what policies you’re selling; to whom you are selling; the tools you are using to sell them; and whether you have the systems and resources needed to make necessary changes.

Now, let’s look at some of the key considerations in planning today.

EXPAND YOUR BOOK OF BUSINESS If your analysis finds you are continuing to rely on price sensitive auto and home insurance, and you have not invested in sales and marketing technology, it is likely your market share is eroding. Direct sellers have made significant inroads in these traditional mainstays of the independent agent, with online selling, mobile apps and other technology leading the way.

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Planning strategies should include moving into commercial lines, which are strong and present growth opportunities for agents. In fact, independent agents are selling the majority of these policies. When you get into commercial lines, consider starting with a focused approach that targets one or two industries or specific types of products, become the expert and build on that expertise with expanding coverages and adding new classes of targeted business.

When you have analyzed where you want to go and what it will take to get there, then prioritize your goals and establish short- and long-term strategies to eet them.

Some planning, such as a major investment in technology, will be longer term.”

Cyberrisk and databreach coverage is a fast-growing niche in commercial lines, and not just for big business.

Nearly half (43 percent) of cyberbreaches affected small businesses.1 Plus, another report found that nearly half of U.S. small businesses suffered a cyberattack in the past year, with 44 percent of them experiencing two, three or four attacks.2 There is an opportunity to TABLE OF CONTENTS

educate small businesses about the cost of not covering themselves with this insurance.

Where else do you look for a niche?

Look at market trends about industries that are growing faster than the economy, learn where they are and what propels them. Then, you can learn and understand their lines of business and market to them.

By specializing in one or two fields, you will be able to meet your clients’ needs; create consistency within your business; and build trust with your clients and potential clients.

Life insurance is another underserved market. It was never a popular line among property/casualty insurance agents, often because, historically, selling life insurance involved collecting extremely personal information from the client, as well as conducting medical testing.

Agents now can look to develop life insurance sales without the need for invasive questioning. A recent study reported that 30 percent of households remain without this important coverage,3 which presents a great opportunity for independent agents to fill an underserved market, increase revenue and add more policies per client.

Another growing market to consider is the mass affluent market (not high net worth), which presents a significant opportunity for insurers, according to a new study: “Affluent households—those with more than www.chart-exchange.com

$100,000 income—grew by 30 percent between 2012 and 2016,” said Mary Pat Campbell, vice president, insurance research at Conning.

“While still the smallest income segment in number of households, the Affluent Market has significantly more financial resources than the Middle Market and is able to purchase a wide variety of financial products.”4

EMBRACE TECHNOLOGY Today, technology is integral to every independent agent’s success.

Agency principals must set a course to embrace and implement today’s technologies, including their agency management systems. If you don’t maximize on today’s technologies, how will you implement new ones coming our way? When planning, ask yourself this: Do you know the five or six key performance indicators for your agency to monitor weekly or monthly to manage progress?

Can your clients reach out and get questions answered whenever it is convenient to them (e.g., 24/7, access policies or make changes on the go)?

Can they reach you via phone, text, website or mobile app? Do you use data analytics to better understand your clients and target prospects?

Today insurance agents must provide clients with service through seamless omnichannel experiences.

Technology enables insurance agents to understand client needs at a deeper level, and serves as the bridge www.chart-exchange.com

to engaging all clients and prospects; beating the competition; and bringing insurance into modern day.

Any independent agent’s strategic plan in 2019 and beyond should consider an investment in innovative tools and technology that can streamline operations, sales and data collection. These include agency management and development systems, comparative raters, websites, mobile apps and social edia. These tools are essential to keep pace with current and potential clients. Remember, your competitors are taking advantage of these new tools, and it is working for them.

STAYING LOCAL In a tech-focused age, building and maintaining a local identity may seem like a challenge, but it remains important. Sam Friedman, insurance research leader for Deloitte Services LP, said he believes the independent agent can thrive in the new InsurTech ecosystem. “Customers’ connections to a professional agent remain strong, especially in commercial lines,” he said. “In the end, agents will likely continue to thrive if they leverage their experience and interpersonal skills effectively.”5 Technology doesn’t remove the need for human interaction; it enhances the interaction. I believe most people still want to buy locally and connect with their local agent, they just want the ability to use technology for the more mundane processes. Today, building your local brand is about TABLE OF CONTENTS

evolving and combining your physical presence in the community—select community and networking events— with building a digital footprint in your community. The goal is to raise awareness of your brand among local business owners and other members of your community, making sure they know you offer more choices than other local agents and the personal touch the direct writers can’t duplicate. Building a strategy around this goal should be a priority in your longterm planning.

DO YOU HAVE WHAT IT TAKES When developing a plan for growth, you must evaluate whether you have the tools and resources you need to accomplish your goals. Here are some questions to ask: Do you have access to the markets you need to diversify your book of business? Do you and your staff have the training needed to sell new products? Do you have the agency management systems and technology needed to compete effectively in today’s digital world? If you’re answering “no” to some or all of these questions, then you need to address these in your planning.

When it comes to training, carriers often offer courses for independent agents to further their understanding of commercial lines. Most carriers offer producer schools (e.g., Travelers, Nationwide, State Auto, Merchants, Liberty Mutual and The Hartford).

See Opportunities Abound Page 43 AUGUST 2019

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NEWS - VANTAGE AGORA

INNOVATION STATION, CLEVELAND, OHIO AND TECHNOLOGICAL ADVANCEMENTS

V

antage Agora’s 4th Annual Inspire Innovation conference brings together Cleveland’s greatest attractions, innovations and minds to inspire innovation across “The Land”.

Cleveland is up-and-coming as far as technology is concerned. Have you heard about the “Blockchain” conference that our city hosted in 2018? Vantage Agora, along with hundreds of other companies from around the country participated in Blockland, where a strong foundation was built to secure Cleveland’s welldeserved position as a prominent technology hub for groundbreaking advancement. Vantage Agora plans to stay at the forefront with their own Enterprise Operating Software.

Speaking of inventive technology, Cleveland’s own Museum of Art, recently won the 2019 OHTec award for “Best Community Collaboration & Innovation”. The museum offers an experience unlike any other, through its unique integration of stunning art, beautiful designs and interactive technology exhibits.

www.chart-exchange.com

Besides the new technological advancements, Cleveland has numerous other inventive and inspirational elements woven throughout its history. For starters, this year marks the 50th anniversary of the last time the Cuyahoga River combusted into flames. One positive outcome of the horrific event back in 1969, was Cleveland becoming a shining example of inspiration for the nation; creating the EPA (Environmental Protection Agency) and passing the Clean Water Act. With their city standing behind them, Cleveland turned a disastrous event into something that continues to do good for the entire nation. If that’s not inspirational, we don’t know what is!

By now it should be clear that Cleveland is dedicated to continuous improvement and inventive solutions, making it the perfect destination for Vantage Agora’s 2019 Inspire Innovation Conference.

WHAT IS THE INSPIRE INNOVATION CONFERENCE ALL ABOUT? TABLE OF CONTENTS

The event is one of a kind, with a unique mix of innovators and creators all in one beautiful venue with 360-degree views of the city, the Cleveland Hilton Downtown. Get ready to expand your mind, get your creative juices flowing and network with an abundance of industry leaders.

Hear from a distinguished group of trailblazers, including executives in the manufacturing industry, founders of a successful branding & ideation strategy firm, and even get the chance to be front row for a riveting fireside chat with Cleveland’s own, Bernie Moreno, Jon Pinney and “Mr. Cleveland” himself, Larry Morrow. Hear from experts on what has been the driving force and motivation behind their success.

The diverse topics, entrepreneurs and experiences you will be among is sure to help you generate new ideas to implement into your own practices, helping you shine as bright as Playhouse Square’s ‘largest outdoor chandelier’!

What are you waiting for? Come join us and the brilliant minds of so many on the exciting path to inspiration and innovation in technology and beyond!

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NEWS - LLOYD’S OF LONDON Continued From Page 15

INSURTECHS: WHO MADE THE CUT TO HELP SUPPORT THE FUTURE AT LLOYD’S •

•

•

•

26

Digital Fineprint (DFP) is an Insurtech that helps insurers and brokers improve their reach and profitability in the SME market.

DFP provides data insights that can be used for risk selection, underwriting, pricing and new business generation.

Flock is a big data start-up that helps underwriters unlock the power of risk intelligence.

FloodFlash says it enables fairlypriced, no-exclusions, instantsettlement flood insurance.

Customers receive a pre-agreed settlement as soon as FloodFlash sensor detect that waters have exceeded a critical depth.

Hyperexponential is building practical, impactful pricing software for speciality insurance.

It claims to be the first platform of its kind to be built by insurance

AUGUST 2019

•

•

•

•

•

•

professionals “at the coal-face of the market, for the needs of our actuaries and underwriters”.

INARI is an advanced ecosystem in a box that digitises insurance operations through the entire risk lifecycle. INARI says it combines “process automation, data ingestion processing, distributed ledger auditability, machine learning and data lake”.

The Insurdata platform creates high resolution, building level, peril specific exposure data globally.

Oasis provides an open source catastrophe modelling platform, free to use by anyone. It is also a community that seeks to unlock and change the world around catastrophe modelling to better understand risk in insurance and beyond.

Phinsys has built a platform of intelligent finance automation tools to deliver systematic controls to optimise financial close and reporting processes.

Praedicat reads, curates and quantifies data from science to identify emerging and emerged risks to humans and the environment. They quantify the loss to economy and liability insurers from litigation allowing risk management and product development.

Tautona is a “cognitive automation” company that automates processes once reserved for human judgement. It says: “Our cloud based, managed service approach provides insurers with a frictionless approach to automating claims and ancillary processes.”

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WOULD YOU LIKE TO HAVE YOUR MESSAGE DELIVERED TO 100,000+ FOCUSED INSURANCE INDUSTRY EMAIL ADDRESSES EVERY MONTH?

I’m Kate Boyle Managing Editor. I handle CHART Exchange Advertising. Call me at 302 765-6056 and let’s have a conversation.

www.chart-exchange.com

ANALYSIS - KROLL Continued From Page 9

BREAKING DOWN THE DUTCH CHILDLABOR DUE DILIGENCE ACT provision which gives companies five years to reduce or remedy any potential offending supply commitments entered into prior to the effective date of the Act. This provision seeks to ensure that companies avoid supply chain child labor risks at all costs, while balancing the obvious inherent reputational risks associated with poor or nonexistent child labor due diligence practices.

HOW DOES THE ACT DEFINE CHILD LABOR? This new legislation defines child labor as any form of work conducted by persons under the age of 18. The Act takes into account Article 3 of the Worst Forms of Child Labour Convention, of 1999, and its references to the exploitation of children involvement in slavery, trafficking, and prostitution. The statute also

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takes into consideration The Minimum Age Convention, of 1973, and the its specific details relating to “what kind of light work “ is permitted, as long as it does not interfere with school or vocational training attendance, or with the health, safety, or morals of a child.

WHAT ARE THE EXPECTATIONS FOR DUE DILIGENCE? The legislation includes a due diligence mandate for companies, which exceeds the scope of other corporate modern slavery legislation.

Companies must determine if there is a reasonable suspicion that the goods or services supplied have been produced using child labor. The statute calls for companies to perform due diligence via reasonably known and accessible sources to determine if child labor is being used, along with a plan of action to prohibit the activity.

As of this moment, there are no explicit definitions for terms such as “reasonable suspicion” or specifications for the quality of a company’s vetting process. As previously mentioned, the Dutch Parliament is preparing a GAO that outlines the requisite details associated with these elements of the legislation. In sum, the law appears to require companies to take a risk-based approach to child labor due diligence and subsequent remediation that results in the cessation of child labor within the supply chain.

WHAT ARE THE REPORTING REQUIREMENTS? Companies impacted by the Act as currently defined must submit a declaration statement to the to-

See Dutch Child Labor Page 32 TABLE OF CONTENTS

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27

ANALYSIS - FORTEGRA

I LOVE TO TALK!

by Cooper Wallach

I

love to talk. I am not much of a writer as my brother got all that talent. He has authored a book, blogs, websites, written for many well-known national publications, and

documented his numerous global travels. To make this a little more personal, his name is Van and he is my big brother by 20 months. I am Cooper and the baby of the family. We were raised by a single mom with five years of military service.

What does this have to do with you today? Let Van and Cooper paint a picture for you. After you have read this article, we are very interested in what picture you see.

See I Love To Talk Page 39

A

bout the author: Cooper Wallach is Vice President of Specialty Products and Programs at Fortegra where he manages the promotion and execution of property and casualty programs with the company’s MGA partners. A graduate of the University of Texas with degrees in business management and business administration, Cooper calls upon more than 30 years of underwriting expertise to help Fortegra partners Experience More.

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www.chart-exchange.com

YO U R PA RT N E R F O R A D M I T T E D M A R K E T C A PAC I T Y PROGRAM CARRIER WITH

1.1 BILLION

$

IN TOTAL SALES

A- RATING A.M. BEST

S P E C I A LT Y P RO G R A M S

PREMIUM FINANCE

7

ADMITTED

INSURANCE COMPANIES

CAPTIVES & RETRO COMMISSION STRUCTURES RISK PARTICIPANT SUPPORTING COVERHOLDERS, MGA S & MGU S

CREDIT P RO G R A M S

WA R R A N T Y P RO G R A M S

As a CHART vendor partner, Fortegra’s admitted paper helps coverholders and MGAs gain access to premier markets.

Learn how Fortegra’s admitted program can help you Experience More at fortegra.com/programs, or via email at programs@fortegra.com.

Fortegra® is the marketing name for the specialty underwriting operations of Fortegra Financial Corporation and its subsidiaries. Specialty underwriting program availability varies by jurisdiction. Where available, the programs are underwritten by admitted insurance companies.

CHART 2.0 — FASTER CONNECTIONS TO LONDON!

Has your agency ever considered placing business with Lloyd’s of London — the oldest and most recognized insurance brand in the world? Then make plans to attend the upcoming CHART Exchange regional meeting. Our next event will be held in New York City on September 30, 2019.

CHART was established in 2015 with one ambitious goal in mind: becoming the catalyst for sustained, organic new business growth within the U.S./London marketplace. Our organization has been instrumental in launching over a dozen new binding authority agreements to date, with more on the way! This success is attributable to the advocacy-level support we offer to domestic agencies seeking to place business within this exclusive market niche.

The meeting will be filled with workshops, presentations, and networking opportunities for every agency attendee in a more focused atmosphere. There is no registration fee required to attend this unique one-day event. A detailed agenda will be sent to every registered attendee.

Act quickly, as participation will be limited to 50 agency attendees.

Interested in reserving your spot or learning more? Visit our website at www.chart-exchange.com.

We are also available via e-mail (info@chart-exchange.com) or by phone at the number below.

www.chart-exchange.com

The CHART Exchange, 3001 Philadelphia Pike Claymont, DE 19703

Phone: (855) 716-3660

•

Fax: (302) 334-0325

ANALYSIS - LAURDAN ASSOCIATES

WORKPLACE DISCRIMINATION: A CRITICAL ISSUE IN EMPLOYMENT PRACTICES

By Ron Adler

N

umerous federal, state, and local laws prohibit employment discrimination. Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Rehabilitation Act of 1973, the Equal Pay Act, the Pregnancy Discrimination Act, the Americans With Disabilities Act of 1990 and the ADA Amendments Act, the Genetic Information Nondiscrimination Act and prohibit employment discrimination

based on race, color, religion, national origin, sex, pregnancy, age, disability, the use genetic information, and LGBT status in all facets of the employment relationship. Many state and local laws expand the scope of Title VII and prohibit employment discrimination based upon such additional categories as marital and familial status. Executive Order 11246 prohibits employment discrimination by federal contractors and subcontractors and the Immigration Reform and Control Act of 1986 prohibits

employment discrimination based on citizenship.

The number of discrimination charges filed for fiscal year 2018 decreased to 76,418 from 84,254 in fiscal year 2017. Retaliation charges from all statutes were again the most numerous charges in fiscal year 2018. The percent of charges based on sex, disability, age, color, the Equal Pay Act, and GINA also increased. The Table below shows F/Y 2014-2018 EEOC charge data.

(See Chart Page 44) See Workplace Discrimination Page 44

A

bout the author: Ronald Adler is the president-CEO of Laurdan Associates, Inc., a veteran owned, human resources management consulting. Ronald Adler is the president-CEO of Laurdan Associates, Inc., a veteran owned, human resources management consulting firm specializing in HR audits, employment practices liability risk management, HR metrics and benchmarking, strategic HR, and unemployment insurance cost management. Mr. Adler has more than 45 years of HR consulting experience working with U.S. and international firms, small businesses and non-profits, insurance companies and brokers, and employer organizations. Mr. Adler is the developer the Employment-Labor Law Audit™ (ELLA®), the nation’s leading HR auditing and employment practices liability risk assessment tool — now in the tenth edition. g firm specializing in HR audits, employment practices liability risk management, HR metrics and benchmarking, strategic HR, and unemployment insurance cost management. Mr. Adler has more than 45 years of HR consulting experience working with U.S. and international firms, small businesses and non-profits, insurance companies and brokers, and employer organizations.

www.chart-exchange.com

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AUGUST 2019

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ANALYSIS - KROLL Continued From Page 27

BREAKING DOWN THE DUTCH CHILD LABOR DUE DILIGENCE ACT be-determined regulatory body affirming that they have exercised an appropriate level of supply chain due diligence in order to prevent child labor. As of this time, there are no specific requirements or details as it relates to the declaration statements and specifically its form and content as described in the GAO. Dutch and “permanent establishment companies”, as defined by the Act and registered with the Netherlands trade register, will be mandated to submit their due diligence declaration to the regulator within six months of the effective date of the legislation.

Unregistered companies–defined as foreign companies that do not have a permanent establishment in the Netherlands–will also be given six

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months from the Act’s effective date compliance. to submit the required documentation demonstrating compliance with the For the regulatory authority to statute. An exception for these foreign become aware and involved, tangible entities is that they are not required evidence that a company’s products to conduct child labor due diligence or services were produced using if they sold goods or services to child labor must be presented Dutch consumers less than twice in a by an individual or legal entity. calendar year. This This law Subsequently, a rule implies that the complaint will further Act will focus on be filed with the enforces the global foreign companies offending company doing business with trend of governments first, mandating Dutch consumers requiring companies that the company consistently must resolve the to conduct third over time–not issue presented. party and, more infrequently or a The regulator would specifically, supply single business then mediate this transaction. chain due diligence. matter after a While on its face Therefore—whether company responds it is seemingly you have dealings to the complaint, inconsequential, or if the company in the Netherlands this biannual chooses to not or not—you should requirement could address the issue present a significant consider how this, within six months of loophole for and similar legislation the initial complaint companies seeking in other countries, being presented. to do business in the may impact your Netherlands.

If the designated compliance program regulator HOW WILL and its regulatory determines that THE ACT BE a company is in requirements.”

ENFORCED? violation of the Dutch Child Labor The complete Due Diligence Act, the regulator will Act will include the assignment provide the company with a legally of a regulator to oversee its binding course of action. Failure to implementation and compliance. As follow the instructions or complete the Act currently stands, violations them within the allotted timeline or non-compliance will be brought may result in fines - or additional to the attention of the designated penalties for the offending company. regulator; the regulator will not proactively assess companies for TABLE OF CONTENTS

www.chart-exchange.com

Fines for failing to file a declaration start at €4,100 and penalties increase exponentially for companies found to have inadequate due diligence or lack of an appropriate plan of action to detect and prevent the use of child labor. Companies failing to comply can be subject to fines of up to €750,000, or 10 percent of its total worldwide revenue (whichever is the greatest) and if two fines for breaches of this act are levied on a company within five years, the responsible company director is liable for up to two years of imprisonment.

BUSINESS IMPLICATIONS OF CHILD LABOR DUE DILIGENCE LAWS Upon the Act coming into force, multinationals doing business in the Netherlands will need to be focused on supply chain child labor violations, as well as next steps associated with this illicit conduct. Aside from the enforcement actions imposed by the new due diligence law, companies seen using child labor within their supply chain face legal and reputational risks that will be much more damaging.

The Dutch Child Labor Due Diligence Act is a first-of-its-kind legislation that has incredible potential to be an effective means of combating child labor in the supply chains of global organizations. As a result of this statute, it will be interesting to see how the Dutch Government will raise awareness and educate the public on the impact and requirements of this anti-child labor initiative. www.chart-exchange.com

Awareness and education are especially important because the “supplier chain whistle blowing” system in place serves as the first line of defense for child labor violations.

This raises the question: without the availability of relevant supplier chain information or an active Dutch public, does the Act risk becoming unused and forgotten? Another consequence of the Act will revolve around what the regulators corrective actions will entail–will companies whose supply chains use child labor be allowed to simply cut ties with the third party, or will they be required to help the children involved in this prohibited conduct?

This law further enforces the global trend of governments requiring companies to conduct third party and, more specifically, supply chain due diligence. Therefore— whether you have dealings in the Netherlands or not—you should consider how this, and similar legislation in other countries, may impact your compliance program and its regulatory requirements. At a minimum, your organization should ensure that they monitor the Dutch Child Labor Due Diligence Act, as it moves toward implementation in order to assess your supply chain for potential risk, violations and/or deficiencies.

NEVER MISS AN ISSUE OF THE CHART EXCHANGE!

SUBSCRIBE NOW!

Contact Kroll to learn more about how our Compliance Risk and Diligence services can assist you.

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33

Bringing U.S. Entrepreneurship to the London Market The CHART/Wilson Elser strategic partnership combines the innovative underwriting philosophy of the world’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 Europe-based insurers with ready access to more than 60 discrete legal services delivered by nearly 800 attorneys in 34 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 Š 2017 Wilson Elser. All rights reserved. 567-17

NEWS - WOMEN IN CYBER LEADERSHIP

WOMEN WHO LEAD: WOMEN IN CYBER LEADERSHIP CORP.

By Jennifer Rothstein

C

yber security risk did not exist in Ancient Greece. Other types of catastrophic risks caused by environmental elements did, but other than the significant damage caused by both triggers, it is difficult to find historical similarities.

However, a comparison can be made between the women who led during ancient times and the women who lead in our modern, cyber-dependent society.

The women to whom I am referring are exalted representations of the strength, wisdom and respect the Greek Goddesses are known for. For example, Athena was the goddess of wisdom, reasoning and intelligence and always believed in fighting for justice and righteousness.

Parallels can be drawn between the characteristics of a figure like Athena

As women look back to our past leaders – even back to the myths of Ancient Greece – we learn lessons about courage, confidence and aptitude. We know that we are part of the cyber security workforce and together, we will succeed.” and the women who defend our nation against cyber attacks. Another important figure was Soteria - the goddess of safety and recovery who protected with compassion. Again, given that in any cyber attack the goal is to recover and maintain a safe environment, history suggests that at

least conceptually, women have been thought of as exceptionally capable to handle such severe battles.

When cyber security risk and the subsequent attacks on our businesses, governments and infrastructure infiltrated our daily lives, men were the majority contributors to the front lines of defense. While women were included, statistics show there is an under-representation of women in the field. And the field – by necessity – is expansive. Cyber risk grows with such severity and frequency, that every individual with every skill set may, and should, participate in the mitigation of these attacks. Risk managers, underwriters, claims professionals, brokers, law enforcement, and lawyers are just a few representative career paths anyone can pursue.

See Women Who Lead Page 36

About the Author: Jennifer Rothstein co-founded and serves as the President of Women in Cyber Leadership Corp. As the cyber security industry has been rooted in STEM and the military, she recognized that it can be intimidating for women to start and thrive within the space, and has dedicated her efforts to providing everyone with the tools, opportunity, knowledge and confidence to succeed in cyber. Throughout her career at companies such as Kroll and AIG, she has lead the effort in combining cyber expertise with her deep knowledge in insurance.

She is driven by a resolve to demystify two complex categories allowing access and understanding to both cybersecurity and insurance in our increasingly interdisciplinary and interconnected world. www.chart-exchange.com

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NEWS - WOMEN IN CYBER LEADERSHIP Continued From Page 35

WOMEN WHO LEAD: CYBER LEADERSHIP CORP. The recognition of the absence of women in the workforce, coupled with the confidence that women are uniquely talented to help solve the cyber security problem, provided the impetus to start the Women in Cyber Leadership Corp., a New York not-for profit. The mission is: To bring together women who are established thought leaders, as well as new additions to the cybersecurity industry to share their knowledge, experiences, and insights to help each other develop a more comprehensive understanding of current and upcoming cybersecurity issues, and to increase each other’s confidence when addressing technology related-challenges.

We have grown to over 400 members and we celebrate each others’ accomplishments, as well as mentor and educate each other through

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panel discussions, networking events and LinkedIn Group Discussions and thought leadership. We are proud of our inclusive composition, as we appreciate the men who support us and become members.

Our Board of Directors is diverse, and we are fortunate to have the participation of the law firm Wilson Elser on our Board, specifically represented by Alicia Santocki.

Wilson Elser has taken a deep interest in the success of our not-for-profit and has dedicated many hours to our incorporation as well as being a sponsor of our events. As our mission evolves, we have developed synergistic strategic partnerships with organizations who are like-minded.

Most recently, we formed a strategic alliance with iQ4 Corp., which developed a centralized learning platform to allow every student the opportunity to study cyber security.

The curriculum is developed by industry experts, can be offered as a college course for credit, and is hosted in a virtual environment.

Their goal is to fill the cyber security workforce gap as these students are prepped to be hired by organizations building cyber teams. Women in Cyber Leadership Corp. is excited and committed to support our future generation of women in cyber leaders.

CHART DEFENDER COVERHOLDER E&O AVAILABLE NOW!

Mark Lann Phone:

302-765-6070 Email: chart.eo@rockwoodinsurance.com

As women look back to our past leaders – even back to the myths of Ancient Greece – we learn lessons about courage, confidence and aptitude. We know that we are part of the cyber security TABLE OF CONTENTS

www.chart-exchange.com

NEWS - LLOYD’S OF LONDON

LLOYD’S HAS CONFIRMED THE TARGETS FOR ELECTRONIC PLACEMENT FOR THE REMAINDER OF 2019

L

loyd’s has confirmed the targets for electronic placement for the remainder of 2019.

driven impressive adoption across the Lloyd’s market.

By the end of the Q1 2019, 45% For Q3 2019 each of ‘in scope’ syndicate will contracts be required to were placed have written no electronically less than 60% in the Lloyd’s of its risks using market. The a recognised target for this electronic quarter was to placement system have placed with the target 40% of in scope increasing to 70% risks through in Q4.

Lloyd’s Chief Operating Officer, Jennifer Rigby electronic placement.

Further detail on Eighty percent of syndicates met or the updated electronic placement exceeded the target and therefore mandate is available here.

The mandate is designed to accelerate qualified for a rebate on their annual digital transformation and has already subscriptions. www.chart-exchange.com

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Lloyd’s Chief Operating Officer, Jennifer Rigby, said, “Electronic placement allows Lloyd’s to simplify access and lower the costs of doing business, two objectives that are central to our strategy to build the future at Lloyd’s. We have exceeded our targets every quarter so far, which is excellent news and provides further evidence that we are already reshaping the market into a more future-focused platform.”

The mandate was first issued in the first quarter of 2018 following discussions with members of the Lloyd’s market, the Lloyd’s Market Association (LMA), the London & International Brokers’ Association (LIIBA) and the International Underwriting Association (IUA).

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37

EVERYBODY KNOWS ONE Meet Mr. Inappropriate. He is the King of unfiltered commentary. There is no remark too crass or topic too sensitive for this guy. Worse still, he may be working for one of your clients.

The recent Hollywood scandals and resulting rise of the “#MeToo” Movement has made people more sensitive to the prevalence of harassment and other wrongful acts in the workplace. There was a time when otherwise harmless comments from someone like Mr. Inappropriate would have either been brushed off or ignored. Now they may be interpreted to have a more nefarious meaning. This perception can quickly turn into legal action. The cost of defending against such a lawsuit – even a groundless one – could be financially devastating.

Let Rockwood Programs help protect your clients. Our Employment Practices Liability Insurance (EPLI) product protects companies from allegations of discrimination, wrongful termination, harassment, and workplace bullying. Coverage can be further enhanced to protect your client against alleged violations of the Immigration Reform Control Act, Wage & Hour disputes, and Third Party Wrongful Acts.

Visit us at www.rockwoodinsurance.com to learn more

Rockwood Programs, Inc., 3001 Philadelphia Pike, Claymont, DE 19703 p: 800-558-8808 • f: 302-764-5477 • e: sales@rockwoodinsurance.com

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www.chart-exchange.com

ANALYSIS - FORTEGRA Continued From Page 28

I LOVE TO TALK

story but does not need to speak or write down his thoughts. His art and clothing lines speak volumes about the thoughts in his mind, without a single utterance.

I have another son who lives in Texas, Travis Wallach. He lives on the ranch with longhorns, chickens, dogs, barn cats, fish in the pond, a beautiful wife, and twins, River and Sawyer.

Why are we interested? Neither one Travis can’t paint, he’s not much of us knows how to paint, we don’t on writing and does not like public like to paint, and we don’t want to speaking. Travis communicates paint. Yet, we have each developed a through his ability to be liked. He is different style of convincing potential genuine, polite, comfortable to be customers that they should purchase with, and he will look you in the eyes, the products and services we are making you feel like you are the only selling. one on the earth with him.

Van and I had a great childhood.

Shirley was an amazing single mom. We grew up in a converted garage with a gas stove, window unit air conditioner, and a small black and white television.

Van and I from the beginning had different views of the world, and we still do today. A graduate of Princeton, Van was a scholar, extremely well-read, and had a quest for knowledge.

I played baseball, golfed, and fished. School was not all that interesting, and I was a terrible speller. Somehow, I graduated from the University of Texas.

Did I mention I have a son in NYC who is an artist? Tyler Wallach communicates through his art also. He has real paint brushes and different paints. His art is bright and colorful, full of life. He can tell you a www.chart-exchange.com

“When you have an opportunity to paint a picture, you also have the power to paint an image that leaves a lasting impression. That thought bears repeating because we often don’t realize or maybe don’t care that the picture we paint leaves a lasting impression.”

As we began our professional careers, we each took a different path again.

Van put a pen on paper, and I talked.

Tyler speaks through pictures, and I talked. Travis let his actions speak for him, while I talked. We all do the same thing, and we were effective at

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it. We each were able to communicate and sell through different styles.

As we move in and out of people’s lives, whether business or personal, we have an opportunity to share with them our pictures. Some meetings may last a second and others a lifetime, but they all start with a single opportunity and a single drop of paint. Sometimes the picture emerges slowly and other times it flashes before us. Unfortunately, we fail when the picture is blank despite our best effort.

When you have an opportunity to paint a picture, you also have the power to paint an image that leaves a lasting impression. That thought bears repeating because we often don’t realize or maybe don’t care that the picture we paint leaves a lasting impression.

When is the last time you asked yourself what picture you painted and what impression it left on your clients?

People are more likely to do business with you if they like your picture. Never underestimate your ability to make a difference by painting a picture that has a lasting impression. You have the power to do it through writing, speaking, painting, and through action.

Success can be difficult, based on your measurement, but you can achieve it. Why not work on your painting and let the art speak for its self?

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39

FORESTRY WORLDWIDE FORESTRY (RE)INSURANCE FACILITY Pardus was established in 2013 by Keith Thompson, formally CEO of Advent capital Holdings Ltd and Darren Stockman Active Underwriter of Syndicate 780 and Director of Advent Underwriting Ltd. Pardus are an independent Managing General Underwriter, a Lloyd’s approved Coverholder, and an appointed representative of Capita Commercial Insurances Limited.

Cover

Maximum line of USD 8.5M any one risk, any one location. Capacity provided by Lloyd’s of London and “A-” rated company paper. Perils covered mainly Fire and Windstorm, but we can offer additional coverage for hail, ice, snow, frost.

We cannot cover Pest and Disease, although we can offer cover under a small sublimit for Pest and Disease treatment costs.

Sublimits available for fire-fighting costs, aerial photography, debris removal, claims preparation costs etc.

Frost

Hail

Snow & Ice Storm

Flood

PERILS COVERED Rainfall Deficiency

Fire

Malicious Damage

Windstorm

Business Interruption is offered when fruiting trees are destroyed by covered physical damage perils, leading to a loss of yield while the new trees develop •

We have specialist Pardus facilities in place to cover Public Liability (in Europe) and associated forestry Plant and Machinery risks

OUR TAILORED PRODUCTS

Full Value and Value at Risk

Full Value works in the traditional way with insurer retaining any salvageable value from the insured property.

Value at Risk leaves an agreed salvage (based on salvage scales developed by Pardus using age and species data) in the ownership of the client.

Pardus then only insure the non-salvage element meaning the final rate will be applied to a fraction of the TSI generating a lower overall cost to the client.

Target business: •

We are keen to see any enquiry for standing timber commercial planation forestry

• •

Information requirements for quote: •

Perils to be insured against

•

Schedule of forest locations by values, age, species

Forestry risks with accreditation from the Forestry Stewardship

Locational information needs to be provided in either

Council (or similar)

shape file format (.kmz) or the latitude/longitude

Forest Owners comprise:

coordinates of the centre point of each location

-

Individual investors

•

5-10-year ground-up loss experience by peril

-

Commercial Plantation Companies

•

Desired policy structure:

-

Individual Forest Owners

-

Timberland and Investment Management Organisations

-

(TIMO’s)

•

Additional features: -

-

Forest Management Organisations (FMO’s)

-

Real Estate Investment Trusts (REIT’s)

-

Banks loans made to forest owners or fruit tree owners

-

Forest Owner Associations

Deductibles, limit etc Firefighting costs, claims preparation, aerial photography, plantation infrastructure

To download our full forestry questionnaire, please visit our website https://pardusunderwriting.com/products/forestry/

Exclusions

Property

Buildings

Terrorism

Pest and Disease

Drought

Crop

Fruits, Nuts etc

Phil Cottle - Senior Agricultural Underwriter Direct +44 (0)203 735 1608 Mobile +44 (0)7769 895048 phil.cottle@pardusunderwriting.com Dan Longden Cert CII - Underwriting Assistant

Direct +44 (0)203 735 1610 Mobile +44 (0)7756 961500 daniel.longden@pardusunderwriting.com

Pardus Underwriting Ltd. 1st Floor, 3 Lloyd’s Avenue, London, EC3N 3DS www.pardusunderwriting.com

“We have access to a worldwide forestry binding authority covering the physical damage to commercial forestry. There is a maximum line of USD 8,500,000 any one risk, any one location and the covered perils can be found on this flyer. This is written 100% Lloyd’s/company market and Prospect are the Insurance broker”

SPECIAL REPORT - VALUE MOMENTUM Continued From Page 42

DIGITAL ENGAGEMENT IN THE P&C INSURANCE INDUSTRY interactions. Agent portals, customer portals and related apps that engage customers, agents and other stakeholders accomplish the fastmoving customer facing interactions, while administration systems – or systems of record, address the more critical functions that require rigor in evolving them.

According to a Celent report, digital engagement facilitated by agent portals and/or customer portals are a top priority for insurers in their quest for growth and operational efficiency. Although portals are not a new concept, the requirements have changed. Here are some of the reasons: •

•

•

•

42

Attract and retain top producers and a new generation of producers who will not stand for legacy operational inefficiencies Have a slick user interface that is intuitive, easy to use and requires little or no training Have self service capabilities for agents and insureds for policy life cycle transactions Integrates easily to multiple backAUGUST 2019

• • •

end systems Connects real time between agents and insurers Provides an omni-channel experience Creates value that is compelling such that the insurer becomes a market of choice by providing significantly higher value

In summary, to survive and thrive in the digital age, property & casualty insurance carriers must embrace the opportunities fueled by digital.

Responding to this changing landscape requires thinking about adding value in the frontiers of your business, in designing your systems and processes to deliver delightful agent and customer experiences and instituting foundational capabilities.

There are many choices available for the latter – ranging from vended solutions to do-it-yourself approaches.

Time is of essence, though as the pace of change is rapid and presents both – tremendous opportunities and also significant risk to becoming obsolete!

CHART DEFENDER COVERHOLDER E&O AVAILABLE NOW!

Mark Lann Phone:

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

Originally published in the PULSE digital magazine, [October], 2017

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ANALYSIS - SIAA Continued From Page 23

OPPORTUNITIES ABOUND Generally, classes are available online or run from two weeks to six months at a carrier’s location. These types of courses also are available in the Training and Learning Center, which all SIAA members can access. [Editor’s note: For your employees who are new to the industry, PIA offers its New Employee Orientation Series, which offers courses on personal lines and commercial lines coverage basics, agency personnel orientation and delivering quality service to the customer and employer.]

For example, a businessowners policy course may highlight key coverage, optional endorsements, target markets and how small-commercial accounts benefit from a BOP. In addition, the Hartford School of Insurance has classes for commercial-lines producers, account managers, virtual commercial lines and small-business coverage specialists, among others.

—Reprinted with permission from PIA Management Services Inc.—20 Professional Insurance Agents magazine To reach your goals, it also may be necessary to invest further in technology: innovative tools and technology that can streamline sales and data collection, an agency management and development system and comparative raters. www.chart-exchange.com

Time savers may include having a live chatbot on your website to answer frequent questions, or a mobile app to increase 24/7 access, which clients are now expecting from most businesses.

When diversifying into life and commercial lines, it may be necessary to expand your markets by working with new carriers. Lack of market access can be a real barrier for some independent agents, but there are options. Consider attending industry conferences where you can meet new carriers or joining a good agency network—one that can provide not only access to new markets, but commercial-lines education, marketing support and other tools to help achieve your goals. Make sure your choice of agency network does not just solve your immediate needs, but can support you throughout the lifecycle of your agency.

NEVER MISS AN ISSUE OF THE CHART EXCHANGE!

When you have analyzed where you want to go and what it will take to get there, then prioritize your goals and establish short- and long-term strategies to meet them. Some planning, such as a major investment in technology, will be longer term.

Others, such as building a local brand, expanding into new lines of business and embracing social media may be attainable in the short term.

Most importantly, get started now.

The industry is changing rapidly and independent agents who are ready to move forward with an eye to the future can position themselves for many years of success.

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SUBSCRIBE NOW!

AUGUST 2019

43

ANALYSIS - LAURDAN ASSOCIATES Continued From Page 31

WORKPLACE DISCRIMINATION: A CRITICAL ISSUE IN EMPLOYMENT PRACTICES LIABILITY MANAGEMENT

The cost of employment discrimination can be substantial. For fiscal year 2018, the EEOC announced that it secured more than $300 million in monetary relief through its private sector administrative enforcement, which includes mediation, settlements, and withdrawals with benefits. Of this amount, more than $35 million came from investigations and conciliations of systemic charges of discrimination.

Non-complying employers face discrimination charges that include remedies of reinstatement, back pay, injunctions, and, in some cases, fines and attorneys’ fees. The 1991 amendments to Title VII included the right to a jury trial in cases of intentional discrimination and for awards of compensatory and punitive damages up to $300,000 — depending on the size of the employer —in addition to the

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equitable remedies mentioned above.

Equally important, court decisions and settlement agreements frequently result in the loss of managerial prerogatives to make hiring, firing, and other employment decisions, require the organization to conduct specified training programs, and impose a third-party observer to monitor compliance.

More importantly, employment discrimination is bad business. Global markets and the increasing diversity in the composition of workers, customers, and suppliers require organizations to make EEO, diversity, and inclusion an organizational imperative. Organizations must incorporate diversity and inclusion into their business strategies and standard

In addition to the substantive claims brought by their employees under the civil rights laws mentioned above, employers may also be exposed to serious liability for retaliating against employees who have asserted rights under the various employment discrimination laws. As noted above, since fiscal year 2012, retaliation claims have been the most numerous of all charges. The EEOC’s Guidelines on Retaliation define retaliation as an adverse employer action in response to an activity protected under Title VII, the Equal Pay Act, the ADEA, or the ADA.

operating procedures and inculcate equal employment opportunity into their culture, values, and a workplace ethic.

Additionally, employment discrimination negatively impacts organizations’ employment brand, reputation, employee morale, and productivity and diminishes employee and consumer trust. From a bottomline perspective, for each discrimination claim costing $100,000, organizations with a profit margin of 6% must generate $1,667,000 is new sales to cover the cost.

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NEWS - LLOYD’S OF LONDON

LLOYD'S LAUNCHES NEW TOOL WOULD YOU TO IMPROVE INSURANCE CONTRACTS FOR CUSTOMERS LIKE TO HAVE

L

loyd’s has launched a new software tool to improve the quality of insurance contract review across the world.

by reducing administration and claims costs, thereby improving profitability.

The tool was developed by Lloyd’s in partnership with the Lloyd’s Market Association and four Lloyd’s managing agents, including Brit, Liberty Specialty Markets and Sirius International.

The tool, Contract Confidence, uses advanced search techniques to scan contracts and check for errors and discrepancies. For example, the tool runs Contract Confidence is scalable and has checks against 1,400 open market rules been developed to accommodate the (regulatory, tax and changing risk appetites of Lloyd’s advisory) We wanted to the Lloyd’s market. and highlights build a tool that The tool is available for where the contract delivered precisely subscription from today. has failed or may have failed a check.

Please visit our contract to the unique requirements of confidence webpage for It also offers the further details. the Lloyd’s market. functionality for underwriters to set Jon Hancock, Lloyd’s What we have their own rules, so that ended up with is Director of Performance risks with exposures Management and the a solution that will outside of appetite can executive sponsor of greatly improve the Contract Confidence, said: be identified quickly and comes precontract certainty populated with the full for customers and “We wanted to build set of clauses from the a tool that delivered reduce costs for precisely to the unique new Lloyd’s Wordings underwriters.“ Repository. requirements of the Lloyd’s market. That’s why The tool benefits we’ve worked with four customers by creating more right-first Lloyd’s managing agents throughout the time contracts, which means fewer build process of Contract Confidence. disputes, faster claims resolution and What we have ended up with is a lower policy costs solution that will greatly improve the contract certainty for customers and It benefits insurers in the Lloyd’s market reduce costs for underwriters. “ www.chart-exchange.com

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YOUR MESSAGE DELIVERED TO 100,000+ FOCUSED INSURANCE INDUSTRY EMAIL ADDRESSES EVERY MONTH?

I’m Kate Boyle Managing Editor. I handle CHART Exchange Advertising. Call me at 302 765-6056 and let’s have a conversation.

AUGUST 2019

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NEWS - M&A SERVICES Continued From Page 12

PAUL PROCOPS WINNER OF 10TH ANNUAL EMERGING LEADERS AWARD to his ability not only to understand the complexity of such deals, but to collaborate with executives and effectively manage expectations.

On Tuesday, September 17, 2019 The M&A Advisor will host a black tie Awards Gala at the New York Athletic Club in Manhattan to introduce the 2019 Emerging Leaders Award Winners to the business community and to celebrate their achievements.

The Awards Gala is a feature of the 2019 Emerging Leaders Summit—an exclusive event bringing current and past Emerging Leaders Awards winners together with their peers and industry stalwarts.

ABOUT MR. PAUL PROCOPS Mr. Procops serves as a Vice President

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AUGUST 2019

for Merger & Acquisition Services (M&A). His responsibilities include deal origination and process management, financial analysis, research, and client support. Mr. Procops has worked on over 75 transactions since joining the firm in 2009, including assisting Aquarian LP in the acquisition of Investors Heritage Capital Corporation, Progressive in the acquisition of Blue Hill Specialty, and Allianz Life in the divestiture of Allianz Life and Annuity Company to Munich Re. Prior to joining M&A, Mr. Procops interned for Citigroup, Merrill Lynch and Tradition Financial Services. Mr. Procops earned his B.A. Degree in Managerial Economics from Union College. He holds the FINRA Series 7, 79, and 63 licenses.

ABOUT THE M&A ADVISOR The M&A Advisor was founded in 1998 to offer insights and intelligence on M&A activities. Over the past nineteen years we have established the premier global network of M&A, Turnaround and Finance professionals. Today, we have theprivilege of presenting, recognizing the achievements of, and facilitating connections between the TABLE OF CONTENTS

industry’s topperformers throughout the world with a comprehensive range of services. To learn more visit www.maadvisor.com.

For more information about The 10th Annual Emerging Leaders Awards Program and Summit, please contact The M&A Advisor at 212-951-1550.

ABOUT MERGER & ACQUISITION SERVICES, INC. Merger & Acquisition Services, Inc. is a specialist advisory and financial services Firm to the insurance and reinsurance industry, with offices in New York, Connecticut, Georgia & Cayman Islands.

Founded in 1999, the Firm and its affiliates provides investment banking and insurance consulting services globally, including; merger & acquisition advisory capital raising, valuations, program placement/ fronting, and reinsurance advisory.

Merger & Acquisition Capital Services, LLC., a registered broker-dealer and member FINRA / SIPC, is an affiliate of Merger & Acquisition Services, Inc. To learn more about Merger & Acquisition Services, visit https:// maservices.com.

www.chart-exchange.com

2018 IN REVIEW $8.1 billion

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

total in-force premium

$690 million

9.3%

total in-force premium growth

growth in total in-force premium

465

independent strategic members signed

36

1 983

13%

4,487

signed of independent agents in U.S.

national strategic partner companies

2 0 19

new agencies created

28

48

strategic master agencies

The Total Solution for the Independent Agent The Proven Distribution System for Strategic Partner Companies

www.chart-exchange.com

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LLOYD’S OF LONDON

48

phogel from germany [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)] AUGUST 2019

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Credit: Loco Steve Attribution-ShareAlike 2.0 Generic (CC BY-SA