The CHART Exchange January 2019 by The CHART Exchange

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

CHART’S Glenn Clark: Join With Us In Dallas, Texas!

CHART Hasn’t Finished... We’ve Only Just Begun!

11 12

Merger & Acquisition Services, Inc. Awarded Corporate/Strategic Deal Of The Year NSM Insurance Group Acquires Assets Of KBK Insurance Group

Cover Photo -

CHART Exchange: Becoming A Lloyd’s Coverholder: A Primer

Agency Automation And Technology For Today’s Independent Agent

Electric Scooters: Manufacturers Should Prepare For An Influx Of New Claims

Special Report: CHART Markets Exchange

Once Upon A Time Freight Bill Audit Made Sense...

Sonja Rottiers Appointed As Lloyd’s Brussels CEO

Wilson Elser’s Angela Russell Among Most Influential Black Lawyers

Lloyd’s Confirms 2019 Targets For Electronic Placement Mandate

3 Master Agencies Mark Up To 20 Years With SIAA

Why Sports Insurance Is A Growth Market

SPECIAL REPORT: PG 20

CHART MARKETS A SHOPPING CENTER FOR INSURANCE PRODUCTS UNDERWRITTEN THROUGH THE LLOYDâ&#x20AC;&#x2122;S MARKET

JANUARY 2019 VOLUME 4 - ISSUE 1 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: 302.765.6056

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.

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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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MESSAGE FROM THE EARLIEST ADOPTER

JOIN WITH US IN DALLAS TEXAS!

f you have followed our e-magazine and our organization – The CHART Exchange – for any length of time, you will readily recognize several themes: 1. The core purpose of our group is to facilitate more organic new business growth between the U.S. and London markets. 2. Our primary strategy is the concept of Exchange: “Ex’change: to give something of value in order to gain something of greater value” 3. Face-to-face contact, while logistically difficult, is essential to building new partnerships.

Our team spent much of 2018 engineering new strategies to help specialist agency partners to establish and grow programs within the London market. CHART 2.0 will reflect much of what we learned: •

•

• In 2015, 2016, and 2017 we hosted annual meetings averaging 300 attendees. These participants came from four different groups: Existing London Coverholders, Prospective Coverholders, London Syndicate decision makers, and vendor partners with distinct London strategies. While the sessions were productive and many new connections were made, three years’ worth of feedback told us we could improve.

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•

A regional meeting format that will enable us to concentrate on 25-50 specialist agencies at a time. Less time away from home yet a more intense one-day agenda. Key input from Lloyd’s U.S., Wilson Elser (legal, regulatory environment), and a dedicated CHART resource to strengthen our brokerage services. New services to help you grow your London business: CHART Markets, CHART MGA, CHART Magazine, etc. Incubation programs to shepherd smaller or newer programs in a quicker timeframe as specialists.

Glenn W. Clark, CPCU Publisher & Earliest Adopter

If you have any questions about the CHART Exchange or our upcoming event, send an e-mail to glenn.clark@chart-exchange.com and we’ll reply directly.

Glenn W. Clark , CPCU CHART’S Earliest Adopter

Thinking about a new program (or improving an existing one) with Lloyd’s of London? Why not join us in Dallas TX on February 25, 2019 for our first “reveal” of CHART 2.0?

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www.chart-exchange.com

Join Us in Dallas and Become Part of CHART 2.0! The first regional meeting of the “re-imagined” CHART Exchange will take place in Dallas TX on February 25, 2019. Save the date! The business-driven agenda will address such topics as:      

Review of all the new benefits and services available through the “re-imagined” CHART – including business placement capabilities through an in-house London brokerage operation. Analysis of the London marketplace, presented by a senior executive of Lloyd’s America Discussion of the process required to secure Delegated Underwriting Authorities (“Tribunalization”) from Lloyd’s markets Strategies for implementing Lloyd’s-underwritten programs when admitted paper is required or preferable. Addition/expansion of existing product distribution channels through CHART facilities (CHART Markets, CHART Magazine, etc). CHART will help you to GROW your program Available alternatives for those seeking to fast-track the launch of new programs via CHART’s Incubator initiative

The meeting will be filled with a workshops, presentations, and networking opportunities for every agency attendee in a more focused atmosphere. The forum we provide will allow for you discuss your program ideas with partners who only succeed when you do. Come in the night before and enjoy a welcome reception with all of the presenters. A detailed agenda will be sent to every registered attendee. In order to give everyone the attention they deserve, participation will be limited to 50 agency attendees. Can’t make the February meeting but are interested in getting started now? No problem! CHART will be holding two more regional events in 2019 - one on the east coast, the other on the west. To reserve your spot, contact us for details. For More Information, Contact: Glenn W. Clark, CPCU Glenn.clark@chart-exchange.com

www.chart-exchange.com

Meeting Location: Bank of America Plaza 901 Main Street, Suite 4800 Dallas TX, 75202

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NEWS - CHART EXCHANGE

CHART HASN’T FINISHED… WE’VE ONLY JUST BEGUN! “When you’re finished changing, you’re finished.”

enjamin Franklin was one our most prolific Founding Fathers. He is recognized not only for his contributions to politics, but also to science, art, music, and other disciplines. Many famous and inspirational quotes have been attributed to Mr. Franklin. One particularly interesting remark made over two and one-half centuries ago still resonates today: “When you’re finished changing, you’re finished.”

CHART will enter the New Year better positioned to deliver optimal benefit for those wholesale and specialty agencies seeking access to Lloyd’s. This edition of CHART Magazine will focus on some of the features that will be introduced over the course of the year.” The CHART Exchange has taken Mr. Franklin’s advice to heart. From the outset, we have been somewhat of an outlier in the industry. CHART focused its attention on a unique segment within a niche: domestic wholesale and specialty insurance agencies interested in establishing a business relationship with the world’s oldest and most recognized insurance brand – Lloyd’s of London. Our goal was to organically grow this target marketplace through

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the identification and pursuit of new business opportunities. Our team believed there was fertile room for growth in this arena. There are currently a little more than 1,000 U.S.-based agencies holding Delegated Underwriting Authorities from Lloyd’s (referred to as “Coverholders”). The production these entities generate contributes to the $15 billion the market writes in the United States. Over 41% of Lloyd’s global premiums are held by domestic customers. These facts serve to illustrate both the diversity of London’s risk appetites and the level of opportunity available for new producers.

We launched CHART in 2015. The culmination of each year’s efforts was an elegant three-day event. These meetings offered Ben Fr “When you’re finished ch workshops, presentations, and networking opportunities – all with a Lloyd’s-centric theme. Our team strived to create an atmosphere that would foster open dialogue between domestic agencies and Syndicate underwriters. CHART partnered with several London brokers to provide assistance in ascertaining the most compatible Risk Takers for each prospective program, setting up

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www.chart-exchange.com

appointments, and shepherding interested parties through the evaluation process. A look at the results posted over our relatively brief history demonstrates our impact within the U.S./London marketplace. Since inception, a number of new business opportunities representing $173 million in premium have been presented to various Lloyd’s Syndicates. Twelve new Coverholders have been appointed as a direct result of CHART’s efforts. As entrepreneurs we never take too much time to sit on our laurels. After each meeting, attendee feedback indicated that while our events were first class, we could make improvements to actually generate more deals. Among the criticisms we received: Parties don’t business get done. Opulent venues, cocktail receptions, notable key note speakers, etc. are the common hallmarks of any industry event. As entertaining as these activities may be, they may actually detract from the core reason of being a participant – to further the business interests of the firm.

Where’s the service after (or even before) the sale? Many domestic insurance agencies became involved with CHART because they were unfamiliar ranklin: hanging, you’re finished.” with the Lloyd’s marketplace. Our London Broker partners admirably performed their role as guides: identifying potential partners, negotiating binder contracts, etc. As excellent as this service was, many firms expected much more of a “cradle-to-grave” commitment from us. There was a perceived need for assistance in the front

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end (business proposal development, actuarial analysis, legal, compliance, etc.) as well as after the agreements had been executed (expansion of existing distribution channels, exploration of cross-sell opportunities, and more). Following up on 300 attendees overwhelms any partnership. When a task gets too large, some prospects get left behind. Separation anxiety. A number of agency principals wanted to attend our CHART events, but did not feel comfortable being away from their office for three or more days. The cost of travel and meeting registration fee requirement were other factors that prevented a number of potential attendees from participating. We took a brief step back in 2018 in order to critically evaluate every aspect of the CHART Exchange operating model. Our team asked members and meeting attendees for assistance in determining the answer to a couple of important questions. Is a collegial organizational structure the best way to generate growth within the U.S./London Marketplace? Will a more business-centric approach allow us to achieve our goals and objectives? CHART will enter the New Year better positioned to deliver optimal benefit for those wholesale and specialty agencies seeking access to Lloyd’s. This edition of CHART Magazine will focus on some of the features that will be introduced over the course of the year. This article began with a quote from Benjamin Franklin. If we could respond to his sound counsel, we’d simply say: CHART hasn’t finished…we’ve only just begun.

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JANUARY 2019

Merger & Acquisition Services

serving the insurance industry

Merger & Acquisition Services is a

SPECIALIST ADVISORY AND FINANCIAL SERVICES FIRM firm specifically to participants within the insurance industry. Our mission is to provide

CONCIERGE-LEVEL SERVICES AND EXPERTISE

PROUD SPONSOR OF

SOLELY FOCUSED ON THE INSURANCE INDUSTRY. This allows our advisors to obtain critical industry knowledge and subsequently, provide clients with sound advice.

M&A Services has closed

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

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

info@maservices.com http://maservices.com

NEW YORK, NY - ATLANTA, GA - MYSTIC, CT - CAYMAN ISLANDS

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

NEWS - M&A SERVICES

MERGER & ACQUISITION SERVICES, INC. AWARDED CORPORATE/STRATEGIC DEAL OF THE YEAR AT THE 17TH ANNUAL M&A ADVISOR AWARD

ew York, NY, November 7, 2018 – The M&A Advisor has announced the Winners of The M&A Advisor Awards on November 6th, 2018 during the 17th Annual M&A Advisor Awards Gala at the New York Athletic Club. Merger & Acquisition Services, Inc. was awarded • CORPORATE/STRATEGIC DEAL OF THE YEAR ($250MM-$500MM) – Acquisition of majority equity stake in NSM Insurance Group by White Mountains The 17thAnnual M&A Advisor Awards Gala – the premier celebration of the year for firms and professionals in M&A “dealmaking” – brought together the industry’s leaders, vying for the 2018 Awards, to celebrate the Finalists and Winners. The ceremony also honored 2018 Lifetime Achievement and Leadership Award Winners with their induction into The M&A Advisor Hall of Fame. In addition to winning the Corporate/ Strategic Deal of the Year Award, the www.chart-exchange.com

Firm was also among 8 Finalists nationwide covering all industry segments in the following categories: • BOUTIQUE INVESTMENT BANKING FIRM OF THE YEAR – Merger & Acquisition Services, Inc. • INVESTMENT BANKER OF THE YEAR – Jason C. Murgio, CEO, Merger & Acquisition Services Inc. “Since the inception of the M&A

Advisor Awards in 2002, we have been recognizing the leading dealmakers, firms and transactions. And each year we celebrate the creativity, perseverance and ingenuity of our industry’s TABLE OF CONTENTS

professionals”, says David Fergusson, President and Co-Chief Executive Officer of The M&A Advisor. “While our industry has undergone significant transformation since our first awards were presented 16 years ago, we are convinced, more than ever before, that M&A is a driving force of the economy. It is truly an honor for our firm to be able to recognize the contribution that the 2018 award finalists have made.” “It was a tremendous honor to be the recipient of last night’s Corporate/Strategic Deal of the Year Award,” said Jason C. Murgio, CEO of Merger & Acquisition Services. “Both White Mountains and NSM have been two of our firm’s longest standing clients and to have that transaction selected was truly meaningful. I am very proud of our entire team, not only to be named a winner, but also to be acknowledged among eight finalists for Boutique Investment Banking Firm of the Year. I personally would like to thank our entire staff and all of our clients.” JANUARY 2019

NEWS - NSM

NSM INSURANCE GROUP ACQUIRES ASSETS OF KBK INSURANCE GROUP

ONSHOHOCKEN, Pa., Dec. 3, 2018 — NSM Insurance Group has acquired the assets of KBK Insurance Group. Based in Harahan, LA, KBK is a highly specialized program manager in the towing and transportation space with over 25 years of experience. Geof McKernan, CEO of NSM Insurance Group, said, “We are excited to continue our expansion in North America with KBK. The Murray brothers have a strong track record of providing excellent service and expertise to the niche industries they serve. They are a perfect fit for our portfolio of dynamic, specialized businesses. We welcome the KBK team to the NSM family.” Ken Murray, President of KBK, added, “I am thrilled to be working with Geof and the team at NSM. Our cultures are a natural fit with each other. I truly believe we can offer both our clients and our insurer partners something unique. We look forward to working with NSM to deliver on our objectives in years to come.” NSM Insurance Group is continuing to grow organically and through strategic M&A. NSM’s ambition is to be the leading provider of niche insurance programs in North America and the UK.

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NSM MGA HOLDINGS LTD LAUNCH SECOND UNDERWRITING BRAND, FIRST SPECIALTY

ollowing their recent acquisition of Xpekt Ltd, NSM MGA Holdings Ltd have today announced that they will be launching a second underwriting brand to the market. Mark Bacon, Managing Director of Xpekt Ltd, commented, “We are delighted to be bringing First Specialty to the market to sit alongside our Xpekt brand. First Specialty will offer a broad range of highly specialised and niche motor insurance products to the market whilst Xpekt will continue to focus on local community business.” “Our two brands will work side by side in the market, serving the needs of a carefully selected panel of specialist and community brokers. We will have a relentless focus on delivering exceptional service to brokers and customers whilst providing the assurance of A rated underwriting capacity and the backing of NSM.” “We will be releasing our first products to the market on the 12th TABLE OF CONTENTS

November and will follow this up with further product releases over the subsequent weeks.” “Andrew Dodd, Head of Underwriting for First Specialty will work closely with Colin Hart and the Xpekt team to ensure that we meet the needs of our chosen broker panel and their customers.” ABOUT NSM INSURANCE GROUP For more than 27 years, NSM Insurance Group has been an industry leader in the development, implementation, marketing and underwriting of industry-specific insurance programs. The company’s insurance programs include social services and behavioral health; CAT driven property; collector cars; workers’ compensation; staffing; sports and fitness; breweries and wineries; professional liability for architects and engineers; and pet insurance. NSM Insurance Group is a subsidiary of White Mountains Insurance Group, Ltd. (NYSE: WTM) and is aggressively seeking to acquire additional program managers and niche specific insurance businesses. For more information, contact Bill McKernan at 610-808-9561. www.chart-exchange.com

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

888-235-3525 www.nsminc.com

ANALYSIS - CHART EXCHANGE

BECOMING A LLOYD’S COVERHOLDER: A PRIMER CHART’s advice is take advantage of all available help. Use industry experts to resolve any deficiencies in the plan. The CHART Exchange has a network of specialists from a diverse array of disciplines to help agencies in this regard. Services offered through our Vendor Partners include actuarial, claims administration, marketing, systems, legal, and more.”

www.chart-exchange.com

n the United States, insurance companies sometimes delegate underwriting authorities to insurance agencies through a PA (Program Administrator) Agreement. Entities possessing these authorities are referred to as Managing General Agencies (MGAs) or Managing General Underwriters (MGUs). Similar arrangements can be made through the London market, but the terminology is different. Agents given the power to bind business on behalf of Lloyd’s are called Coverholders. To become a Coverholder, an agency must first find a sponsoring broker and managing agent willing to support the application. A Managing Agent is a company set up to manage one or more Syndicates on behalf of the members. These firms have the responsibility for employing staff, overseeing results, and supervising day-to-day operations. Writing business through Lloyd’s is usually done with the assistance of a Broker. This entity becomes the main point of contact for an agency interested in securing underwriting authorities from London. One of the duties of the Broker is to find a managing agent willing to support the application.

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One of the most important elements of an agency submission to London is a business plan. Components should include: •

•

Overview of the prospect universe. Talk about the preferred risk characteristics of this target audience. How many of them are there? Are there any points of aggregation (associations, organizations, regulatory/oversight agencies, etc.) that you can access to improve your reach? What is the level of competition in the marketplace? Marketing strategies. Demonstrate your expertise by articulating how you intend to solicit business. Provide mockups of promotional materials if possible. Model policy wording and underwriting guidelines. No one knows the potential exposures and coverage “hot buttons” of this niche market better than you. Outline the product features and pricing structure needed to make the program successful. See Becoming A Coverholder Pg 38

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ANALYSIS - SIAA

THE STANDARD AGENCY AUTOMATION AND TECHNOLOGY FOR TODAY’S INDEPENDENT AGENCY by Jeff Holmes, Senior Vice President, Agency Operations & Development, SIAA

ndependent agents are struggling to keep up with significant and on-going changes in the technology space, but knowledge and assimilation of this tech are integral to their agencies’ survival. Let’s take a look at today’s independent agency and the technology that can be a key to growth. Agency Management Systems Embracing technology in your agency starts with having a quality agency management system (AMS) in place. This is a critical investment for superior productivity and long-

term success. While AMS has been a fixture within the industry for 30 years, it is not often used to its fullest potential. AMS is a vehicle to create efficiency and automation within your agency and agents should not be intimidated by it. AMS gives independent agencies: more access, provides better errors and omissions documentation, policy and commission downloads, email and text communication management, and enables agency staff to focus on revenue-generating activities.

systems. A good AMS training program should explore all parts of these systems – and the principal owner should be sure their licensed agents are using the system to its full potential. According to insurance industry writer Steve Anderson, CIC, several key features are commonly overlooked by agents, including:

Despite their significant value to independent agents, it has not traditionally been a priority for principals to understand the many facets of agency management

•

Proposals and templates – An AMS offers templates that can be customized for use in an independent agency without extensive editing, which can eat up valuable time. Carrier marketing – An AMS tracks the account submissions See Agency Automation Page 32

s Senior Vice President and Chief Operating Officer for SIAA, Mr. Holmes is responsible for operational management of the largest alliance of independent insurance agencies in the United States, ensuring processes and procedures are sound in supporting 49 Master Agencies and thousands of Independent Insurance Agencies across the continental United States. As Senior Vice President of Agency Operations and Development for SAN Group, Mr. Holmes is responsible for the overall management and operations of SAN’s AccessPlus group and Agency Development Services, as well as agency development on a national scale with SIAA.

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www.chart-exchange.com

Be Cyber Resilient From cyber risk assessments and penetration testing to incident response and investigations, Kroll's global cyber experts are ready to help you and your insureds along the path to cyber resilience.

kroll.com/cyber

Bringing U.S. Entrepreneurship to the London Market The CHART/Wilson Elser strategic partnership combines the innovative underwriting philosophy of the worldâ&#x20AC;&#x2122;s oldest insurance brand with the entrepreneurial mindset of U.S. agencies. For close to 40 years, Wilson Elser has helped organizations to better navigate challenging markets and realize improved combined ratios. We provide London- and 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.

ANALYSIS - WILSON ELSER

AS ELECTRIC SCOOTERS BARREL THEIR WAY INTO THE SHARING ECONOMY, MANUFACTURERS AND THEIR INSURERS SHOULD PREPARE FOR AN INFLUX OF NEW CLAIMS Electric Scooters And The Shared Economy by Michael P. Manfredi

f you have spent any time in Los Angeles or New York City recently, you may have noticed adults riding two-wheeled electric scooters − the type we are more accustomed to seeing kids ride. These scooters are the latest transportation tools in the everevolving sharing economy.

The sharing economy, a term used to describe the growth of an economy based on sharing goods and services, just witnessed the newest heavyweight enter the ring – motorized electric scooter companies. All you have to do is download an app on your smartphone, enter your credit card information, find an electric scooter using the app, and scan a barcode. Typically, rental scooters cost $1 to start and 15 cents a minute thereafter. When you reach your

destination, simply leave the scooter in a public space and tap your screen to end the ride. The scooters can reach speeds of up to 15 miles per hour, and there are almost no regulations in place to ensure their safe use. Additionally, it is not always clear whether the scooters should be driven on sidewalks, in bike lanes, or on

See Electric Scooters Page 40

bout the author: Michael Manfredi focuses his practice on litigation of matters for a range of clients, including construction entities and municipalities. His services include employment and labor, insurance defense and appellate follow-through. While he focuses on effectively managing the entire litigation process, Michael understands the value of quick and cost-effective resolutions to complex and potentially protracted liability cases. He seeks to accelerate turnaround through procedural dismissals, substantive dismissals, successful tenders and negotiated settlements. Prior to joining Wilson Elser, Michael worked at a highly respected civil litigation firm in Atlanta, Georgia, and gained significant experience while serving as an assistant attorney general at the State’s Office of the Attorney General, where he represented state officers and officials sued for alleged constitutional violations and tort claims and appeared before federal and state judges for trials, oral argument and pretrial conferences.

www.chart-exchange.com

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SPECIAL REPORT - CHART MARKETS

CHART MARKETS EXCHANGE

or many of us, the recent holiday season included trips to the local mall in search of presents for family and friends. This imagery is very familiar for those of us at the CHART Exchange, because it serves as the basis for our newest venture â&#x20AC;&#x201C; CHART Markets.

he new facility was designed to give retail insurance agents access to Lloydâ&#x20AC;&#x2122;s-underwritten products. Our portfolio consists of the coverage offerings available through participating member Coverholders (entities possessing Delegated Underwriting Authorities through London) of the CHART Exchange. Each participant maintains their own customized storefront. These dedicated pages offer product information, submission

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instructions, and descriptions of preferred risk characteristics. MiniCo Insurance Agency is one of the first storefront owners of CHART Markets. They are a managing general agency offering multiple specialty property and casualty insurance products for a variety of unique industries and exposures. Their current national programs include commercial self-storage, fine art and collectibles, agribusiness, sports and activity, and

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lawyers professional liability. They also offer monoline programs for commercial risks such as equipment breakdown and cyber liability. MiniCo offers three products via the CHART Markets facility. The specialty property insurance program is designed to provide coverage solutions for self-storage risks that may be challenging to insure due to highrisk geographic location or marginal underwriting characteristics.

www.chart-exchange.com

SPECIAL REPORT - CHART MARKETS The monoline wind/hail deductible buy-back program is available to commercial risks and can be written in conjunction with any other company's primary property policy. The miscellaneous professional liability program provides errors and omissions coverage for a wide array of professional service providers, which can be customized to fit the policyholder's unique needs. Mike Schofield – President and CEO of MiniCo Insurance Agency – offered these insights as to why his firm decided to become a part of CHART Markets:

“MiniCo's status as a Lloyd's coverholder has yielded enhanced opportunities to expand our range of insurance products. Marketing these programs via CHART Markets will help MiniCo reach a much wider audience.. We have come to rely on the platform to communicate with agents seeking unique insurance solutions.” KEY FEATURES OF THE CHART MARKET SITE ARE PROVIDED BELOW: •

Product Search Functionality. Retail agents will be given the opportunity to search through the portfolios of our storeowners through a unique search portal. Entering keywords related to product or coverage type will generate a roster of members with compatible offerings. Each listing will include highlights, contact information, and links to websites. More importantly, the member is notified each time an agent views their offerings – allowing them to conduct their own follow-up.

•

Vendor Services. CHART Markets is not limited to insurance products. Our Vendor Partners will also have the opportunity to use platform as a way of promoting their areas of specialization to this unique business niche. Services include legal, loss control, M&A, promotional items, consulting services, web-development, systems, compliance, licensing, fronting, captive management, marketing assistance, etc

We have launched the CHART Markets platform with 15 unique storefronts. A number of new sites are scheduled to be added before year-end. Visit us at www.chartmarkets.com for a first-hand look at the facility. Entities interested in promoting their London-underwritten products here are invited to contact us via e-mail at info@chart-exchange.com. www.chart-exchange.com

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ANALYSIS - VANTAGE AGORA

ONCE UPON A TIME FREIGHT BILL AUDIT MADE SENSEâ&#x20AC;Ś. By Nishan Kumar, Assistant Trainer

nce upon a time manufacturers, shippers, and other supply chain companies entered in contracts with transportation companies for guaranteed rates for specific lanes that carry specific cargo at a specific weight for specific miles. Despite the carefully negotiated contracts by logistics engineers, experienced logistics professionals and buyers, the accuracy of the invoices were horribly inaccurate. A 2015 U.S. Bank report showed that only 1 in 10 freight bills are accurate. With a 90% failure rate to invoice correctly, the 2015 report advocated that shippers engage with Freight Bill

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Audit and Payment (FBAP) to capture lost revenue by literally auditing the invoices for accuracy. Freight bill audit and payment was not a new concept to the logistics industry in 2015. Most FBAP functions were handled internally by the shippers for decades. The 2015 report, advocated to outsource the FBAP to third-party firms to reduce overhead and improve efficiency. In this tale, many shippers moved their FBAP functions to third-parties with the impact of saving between 2% and 15% of their in-house costs. For most, a 15% cost saving is significant. The moral of the story for shippers appears to be to outsource FBAP to a third-party who have economies of scale and drive

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down your costs to audit invoices and ensure overpayment of incorrect invoices is eliminated. The end. But, what if this story was reimagined? What if the moral of the story was NOT to engage in third-party to complete FBAP? What if the whole concept of FBAP was as quaint and antiquated of a concept as using leeches for medicinal purposes? Vantage Agora works through a process of Operational Excellence. See Freight Bill Audit Pg 24

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1. Gartner, Understanding the Gartner Blockchain Spectrum and the Evolution Technology Solutions, Davind Furloger, Rajesh Kandaswamy, 26 October 2018. 2. Gartner Logo - GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and is used herein with permission. All rights reserved. 3. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartnerdisclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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ANALYSIS - VANTAGE AGORA Continued From Page 22

ONCE UPON A TIME FREIGHT BILL AUDIT MADE SENSEâ&#x20AC;Ś. As we considered entering the thirdparty FBAP process we began to realize this is an incredibly flawed process. Saving 2% to 15% of FBAP costs is hardly a boon to shippers. In what other industries do two parties enter into a carefully negotiated contract and then the buyer of services carries 100% of the cost to audit 100% of the invoices issued by the provider? Vantage Agora recommends shippers completely eliminate the process of FBAP, both internally and with

third-parties. In our analysis, we have discovered the most efficient way to proceed is to simply focus on the PAYMENT part of the FABP process. Vantage Agora recommends shippers simply pay the CONTRACTED rates within the contract payment terms (next day, within 30-days, etc.) of the confirmation of delivery. We suggest the burden be switched to the transportation provider to prove the contracted payments are not accurate rather than the shipper auditing the invoices. We recommend the shipper pay the contracted rates and have the transportation provider prove the shipment violated the terms of the contract (weight, cargo, distance, expedited shipments, etc.). Once the transportation provider supplies the shipper with the documentation of the shipment details that deviated from the contract terms then the shipper can pay the unpaid amount. By changing the paradigm to this model, it would save shippers 100% of the FBAP costs. Why save up to 15% of wasted money when you can save 100% of the wasted money. Now thatâ&#x20AC;&#x2122;s how you get to happily ever after!

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bout the author: Nishan Kumar is an Assitant Trainer who A joined Vantage Agora in 2016, worked as a Team Lead/Trainer in the Logistics and Insurance domain. Marketing and PR division

at Zuese Fitness (2016), Co-founder of 3iology.com (2011-2013) and former content writer at BookSpar.com (2011) Nishan graduated MBA from SDM college of Business Studies and PG Centre, and a Bachelors in Engineering from Visvesvaraya Technological University.

JANUARY 2019

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NEWS - LLOYD’S OF LONDON

SONJA ROTTIERS APPOINTED AS LLOYD’S BRUSSELS CEO Sonja Rottiers has been appointed as the Chief Executive Officer (CEO) of Lloyd’s Brussels. She will also be Lloyd’s Regional Director for Europe, Middle East and Africa, and will take up her position in February.

onja’s career spans over 30 years in the Belgian financial services industry, including senior leadership positions in insurance and banking. Most recently she was a non-executive board member for ING Belgium, and member of the board of directors for Kinepolis NV Group and Leasinvest Real Estate. Previously, she was Chief Finance and Data Officer and Executive Member of the Board of Directors of AXA Belgium. John Neal, Lloyd’s CEO, said: “I am delighted to welcome Sonja to Lloyd’s. Her wealth of experience across the financial services industry and in leading companies ensures she is well positioned to drive our business forward in Europe. “Lloyd’s Brussels marks a major www.chart-exchange.com

milestone for Lloyd’s. Now that it is already placing and processing European business, Sonja will focus on ensuring that it is also well positioned to grow as a customer-focused European insurance company.”

Lloyd’s Brussels has also announced two new additions to its Board of Directors, with Michel Flamée appointed as Chairman of the Company and Christian Noyer joining as Non-Executive Director.

Commenting on her appointment, Sonja added:

Michel was a member of the Board of Directors of National Bank of Belgium, and Chairman of the Belgian Centre for Arbitration and Mediation (CEPANI). Throughout his career he sat in the boards of various regulatory bodies, including the European Insurance and Occupational Pensions Authority (EIOPA).

“I am thrilled to have the opportunity to join Lloyd’s at this exciting time in its history. The European risk landscape is changing, and there is increased demand for the specialist risk solutions that Lloyd’s excels at.

Christian has been Honorary Governor of the Bank of France since 2015 following a ten year period as the Governor. He is also a member of the French Fiscal Council and an advisor to the French Government on issues related to Brexit.

Delphine Marchessaux also joins Lloyd’s Brussels in the new year as Chief Underwriting Officer. Delphine will take up her post in January and joins from Axa Corporate Solutions in Sonja Rottiers appointed as Lloyd’s Brussels CEO France, where she was Head of Underwriting Cargo. I am looking forward to the new opportunities that Lloyd’s Brussels will All appointments are subject to bring to the market, and to help grow approval from the National Bank of our business in the continent.” Belgium.

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JANUARY 2019

NEWS - WILSON ELSER

WILSON ELSER’S ANGELA RUSSELL AMONG SAVOY MAGAZINE’S 2018 MOST INFLUENTIAL BLACK LAWYERS

ngela Russell (Partner-Baltimore) has been named by Savoy Magazine as one of 2018’s Most Influential Black Lawyers. The list comprises the “best of the best” of Black lawyers who are partners with leading national law firms and corporate and general counsel from Fortune 1000 corporations. Angela was first honored in 2015 by this national publication, which covers the power, substance and style of African American life among a cross-section of legal professionals representing a diverse range of expertise with national and global responsibilities. Angela Russell is the regional managing partner of the Baltimore office and chair of the firm’s Diversity Committee. She has significant trial experience and has tried cases in the District of Columbia and across the state of Maryland. Her practice encompasses the defense of professional liability matters, including medical

JANUARY 2019

defense claims. Angela is also frequently called on to handle toxic tort matters. Angela possesses an innate ability to connect with her clients, identify their needs and communicate effectively throughout the litigation cycle. Her rapport in the courtroom is equally impressive. An aggressive litigator, Angela is adept at tapping the persistence, preparation and training she gained early on in a variety of public speaking engagements and tackling two marathons. Angela worked at prominent defense firms in Minnesota and Washington, DC, prior to joining Wilson Elser. malpractice and legal malpractice actions in addition to claims against agents, brokers and other professionals. Angela regularly handles and supervises general casualty matters for insurers and self-insured entities on premises liability claims, security matters, hospitality cases and recreational TABLE OF CONTENTS

PROFESSIONAL DISTINCTIONS Angela is the former co-chairperson of the Civil Jury Instructions Committee for the Bar Association for the District of Columbia as well as a former adjunct professor at William Mitchell College of Law in St. Paul, MN.

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NEWS - LLOYD’S OF LONDON

LLOYD’S CONFIRMS 2019 TARGETS FOR ELECTRONIC PLACEMENT MANDATE Today the Corporation of Lloyd’s confirmed the H1 2019 targets for electronic placement, following approval from Lloyd’s Board and Council.

or Q1 next year (2019), each syndicate will be required to have written no less than 40% of its risks using a recognised electronic placement system with the target increasing to 50% in Q2. A quote target will also be introduced in Q2 2019, and all targets will now apply to both lead and follow business. To support electronic risk placement adoption across the market, Lloyd’s brokers will be required to connect to a recognised electronic placement platform by 1 June 2019. Lloyd’s will be working closely with LIIBA to achieve this. Lloyd’s Chief Operating Officer, Shirine Khoury-Haq, said: “Since we implemented this mandate across the Lloyd’s market, we’ve seen a marked increase in the adoption of electronic trading, which is fasttracking our transformation. The

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latest developments, including quote targets and the Lloyd’s broker requirement, are essential next steps in our journey to digitise our market and to provide the best possible service to our clients. I am thankful to have so much support across the broking community and LIIBA in these efforts.”

The electronic placing platform provided by PPL was launched in July 2016, initially for standalone Terrorism business. Today, all classes of business are available on the platform, with 58 brokers and 124 carriers signed up.” London & International Insurance Brokers’ Association Chief Executive, Chris Croft, said: “LIIBA welcomes this development and the leadership shown by Lloyd’s. Overall the broking community is fully committed to electronic placement and the number of brokers on the platform has risen

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sharply in the last year. The Association and our board members will continue to reach out to all sections of the market to help them to achieve both the mandate and the benefits of operating digitally.” The mandate was 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). It is designed to accelerate the market’s digital transformation to ensure the market realises the benefits of electronic placement and has already driven impressive adoption across the Lloyd’s market. By the end of the Q3 2018, 29.8% of ‘in scope’ contracts were placed electronically in the Lloyd’s market and almost reaching the Q4 target of 30%. Syndicates meeting and exceeding the targets will receive a rebate on their annual subscriptions. The electronic placing platform provided by PPL was launched in July 2016, initially for standalone Terrorism business. Today, all classes of business are available on the platform, with 58 brokers and 124 carriers signed up.

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ANALYSIS - SIAA Continued From Page 16

AGENCY AUTOMATION AND TECHNOLOGY

•

made to carriers, and provides agency management with key information to enhance relationships with each carrier. Accurate data – The AMS encourages accurate data collection. Entering accurate data in an AMS is key to tracking important information about clients and prospects. Incomplete or inaccurate data will impact an agency’s productivity. Reports - Reports can provide significant data, such as monthly production, track new business and monthly commissions directly from your AMS system and eliminate redundant data entry.

Although an AMS is viewed as a general database for clients in some cases, it offers much more to ensure your agency excels in efficiency. A quality AMS system provides critical metrics on the health of an independent agency. The principal’s ability to understand metrics and how they may relate back to training staff on upselling and cross-selling are key contributors to client retention. According to Chuck Blondino of Safeco Insurance, “Your marketing efforts should be the result of knowing where your new business comes from, and how much revenue you make from the new business, so you can focus on how to drive in more and keep more.” Blondino went further to break this down into three categories, including new business, average revenue per client, and retention – each of which can be tracked within your AMS.

JANUARY 2019

Having access to a quality AMS system and using it correctly enables your agency to measure and take action efficiently, as it centralizes all client and prospect information. WEBSITES Another key to growth for the independent agent is a good website. Independent agencies’ websites must make an impact for those clients who don’t call or walk into their offices. Your website is the central communication point for your agency for people on the go, as well as those who simply prefer that delivery channel. A website should be considered an online “hub” for any agency - and its branding and messaging should be extended to your social media accounts, such as LinkedIn, Twitter, and Facebook. Study your traffic and analytics to see what ‘s working, which pages are visited most, and which may be less compelling to your viewers. If your pages are not effective, refresh the content and look into adding forms to pages that will, at a minimum, get permission from potential clients for you to send them more information. If your users take the time to give you their names and email addresses, they likely want to hear from you. COMPARATIVE RATERS Do you use a comparative rater that is integrated with your website? A comparative rater is another key piece of technology that will make it easier for potential clients to get a quote. A quality rating system can also refer a client instantly to a producer in your agency who can then close the sale. Laird Rixford of IIABA points out that, “With a comparative rater, you learn and become an expert at a single interface. You enter the information into this familiar workflow to rate one or more carriers at once. The single interface improves a producer’s ability to handle quotes efficiently and consistently. On average, our rating users can complete a quote in five minutes or less. It does not matter if they are rating one or 30 companies.”

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See Agency Automation Page 35

www.chart-exchange.com

NEWS - SIAA

3 MASTER AGENCIES MARK UP TO 20 YEARS WITH SIAA

ecember 14, 2018 – Hampton, N.H. – SIAA (Strategic Insurance Agency Alliance) today announced that three master agencies are celebrating notable anniversaries with its alliance.

“We are thrilled with the three master agencies who are celebrating anniversaries in the second half of 2018. The people behind each master agency are critical to the success of the SIAA organization,” said Matt Masiello, SIAA’s Chief Executive Officer.

ABOUT SIAA SIAA (Strategic Insurance Agency Alliance) is a national alliance of independent insurance agency members generating hundreds of millions in new premium business annually. SIAA is dedicated to the creation, retention and growth of the independent insurance agency distribution system. To learn more about SIAA, visit siaa.net. SIAA, 234 Lafayette Road, Hampton, NH 03842 siaa.net 603-601-1223

Hudson Valley Agency Alliance of New York is celebrating 20 years with SIAA and has 81 members. Tague Alliance Insurance Services of California is celebrating 15 years with SIAA and has 110 members. Mountain Empire Agency Alliance of Tennessee is celebrating 10 years and has 131 members. SIAA now has a total of 48 master agencies, which have signed more than 13% of the independent agency market as member agencies across the continental United States. The SIAA master agency model was created in 1983. Today, SIAA is the largest alliance of independent insurance agencies in the country. In 2017, SIAA’s master agencies generated $810 million in new business for more than 20 strategic partner companies. SIAA projects $8 Billion of total in-force premium at the end of 2018. “We started with one master agency, SAN Group, to strengthen the independent insurance agent’s business by providing access to some of the best insurance companies,” said Masiello. “We’ve evolved into so much more, and our master agencies are dedicated to their independent agency members and to SIAA, which has paved the way for profitable premium growth, greater access to strategic partner carriers, and quality relationship integration.”

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Proud supporters of CHART

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JANUARY 2019

ANALYSIS - PARDUS

WHY SPORTS INSURANCE IS A GROWTH MARKET

018 has been an exceptionally good and memorable year for sports. The most memorable was a World Cup that lived far beyond its usual promise, certainly for England fans. There’ve been more sports championships on offer and, more sports to watch. Witness cycling’s ‘halo’ effect in the UK. As well as, higher profile coverage of women’s team sports, like football and rugby. It’s no wonder that the market for insurance for sports professionals, is increasing.

University of Calgary revealed that concussion rates amongst youth athletes was about 18 times higher than average for rugby, five times greater for hockey, and roughly double for American football. Basketball is classed differently but injury rates are still notoriously high. The speed of action and nearly-all players being around 7 feet tall, play their part. Knee and Achilles injuries are particularly prevalent. According to ManGamesLost. com until February 2018, 3,798 games were missed due to injury, up 42 percent from the same portion of games last season.

THE RISKS FACED Sports injuries are more common than we like to acknowledge. Sometimes, even in training they happen, or during everyday matches, not just at championships. From a simple sprained ankle, to a tackle requiring time off. Even tragically, to a heart attack on the pitch.

THE INJURY TALLIES According to research by broker JLT Specialty, England’s premier League clubs paid out £217m in wages to injured players in the 2017-18 season. The cost of insurance increased 21 percent from £176.6m in 2016-17 even ‘though injuries actually fell from 735 to 663.

paid out the least in wages (£3.01m) to injured players. Of course, as you’d expect, insurance costs rise in relation to the number of injury pay outs. According to JLT one injury will cost a club an average £323,000 in wages. WHAT DOES INSURANCE COVER Coming within the specialty class accident and health, our underwriting provides cover for individual or group personal accident. It includes permanent or temporary disability through accident or sickness, as well as dismemberment or accidental death. High profile matches or tournaments require specialist contingency cover, another area that Pardus specialises in. If an event is cancelled, relocated, or postponed, monies can be recouped against tickets sales and other losses. THE INCREASED COST OF INSURANCE

According to The Professional Footballers Association (PFA) on average 30 players a year across the UK’s football leagues have shortened careers due to injury. With such high odds, it’s baffling why any individual athlete or club would not have this type of insurance cover. SPORTS WITH HIGH INJURY RATES As you’d expect, contact sports tend to see more injuries. Research by the

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The most injuries suffered in the premier league was to the Arsenal team, which recorded 54 separate injuries. The most common type of injury was hamstring, with knee injuries having the highest average cost of £613,402 per injury. League champions Manchester City suffered the second fewest number of injuries in the season – 24 along with Newcastle. Brighton had the fewest injuries (15) of any top-flight club but also TABLE OF CONTENTS

Club tournaments are increasingly complex affairs, with more partners and third-party organisations getting in on the act. High revenues can be lost, potentially, by any party. Eye-watering transfer fees and clubs’ keenness to retain and protect against career-ending injuries, are definite drivers in escalating insurance costs. National newspapers claimed Lionel www.chart-exchange.com

ANALYSIS - SIAA Messi and Cristiano Ronaldo’s insurance was over £150 million each during this year’s World Cup. Beyond this, clubs would have paid fees to guard against extortion and kidnap and cyberterrorism during the event. Cover against tournament cancellation, including the subsequent loss of TV rights and sponsorship opportunities, were reported to be in the region of £1 billion.

Continued From Page 32

AGENCY AUTOMATION AND TECHNOLOGY

•

WAKING UP TO THE REALITY OF TODAY’S WORLD Sports clubs the world over are waking up to the new realities of protecting their main assets, their star players. In May of this year the England and Wales Cricket Board announced it was in talks with the players union to tighten its outdated insurance policies after the heart failure that almost killed batsman James Taylor, nearly terminating his career. It was hastened by Taylor’s failure to qualify for critical illness care, forced to retire in 2016, aged 26. Receiving a pay out of £300,000 was nowhere near the millions he might have earned during his career. His trajectory certainly boasted ten more years, including international test series. THE BOTTOM LINE Whether it’s high profile international tennis players, like Monica Seles or Ralph Sampson, US basketball player of the 80s who finally retired due to knee and back problems, every sports person is vulnerable to injury. No one likes to imagine the worst will happen. But, if it does, at least insurance can provide a safety net. Pardusunderwriting.com www.chart-exchange.com

In brief, a quality comparative rater system will make your business more efficient and increase accessibility for your clients.

•

Enhanced and direct accessibility to clients (push notifications are a significant component of this access) Empowerment of your clients – they can easily reach and engage you as needed, as well as access information relative to their policies Higher service levels – a good insurance mobile app contains just about everything your client will need if and when they are in a position to place a claim The consistent presence of your brand with your clients – your agency will “own” a piece of the real estate on clients’ mobile devices

MOBILE APPS Another element of technology that can fuel growth and retention is the mobile app (application). Mobile apps make it easier for policyholders or potential policyholders to access your agency, while at the same time giving you, the agent, a direct channel to those clients and potential clients. Further, with a mobile app, you can ensure messages sent to policyholders and prospects are displayed clearly for mobile phone readability. This technology is typically adopted by your existing clients rather than prospects – but is available for all once placed in the online stores for Apple and Google (Android). A good insurance mobile app designed for consumers and small businesses provides for:

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CONCLUSION Effective technology provides independent insurance agents with the time and resources to examine how much opportunity may exist within their own client bases. In many cases, the opportunity will be significant. It’s a widely accepted axiom that it is far less expensive to cross-sell to existing clients than it is to obtain new ones. The bottom-line? Greater efficiency in your agency can result in a stronger, more profitable book of business. Also, keep in contact with your clients through all channels using the best technology, and network within your community so you can become known as a vital resource. Finally, beware: if you are not embracing technology, chances are your competition has done so already – or will be doing so soon.

JANUARY 2019

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”

ANALYSIS - CHART EXCHANGE Continued From Page 15

BECOMING A LLOYD’S COVERHOLDER

Be prepared to invest a significant amount of time and effort in the process process. In reviewing the application Lloyd’s will pay particular attention to the following areas: • • •

•

Administrative strategies. Explain how you envision handling incoming submissions. Tout the internal controls and workflows that have been implemented within the agency. Now would also be a good time to talk about any systems enhancements you plan on incorporating to make processing more efficient. Projections. Estimate production growth over the next five years. Also include forecasts regarding claim activities.

There’s an old saying that goes “too many cooks spoil the broth”. But when it comes to writing a London submission, our advice is take advantage of all available help. Use industry experts to resolve any deficiencies in the plan. The CHART Exchange has a network of specialists from a diverse array of disciplines to help agencies in this regard. Services offered through our Vendor Partners include actuarial, claims administration, marketing, systems, legal, and more.

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• •

Suitability and experience of the individuals Applicant financials Soundness/feasibility of the submitted business plan Licensure (authority to operate in the states/territories targeted) Operations (systems, workflows, adequacy of quality assurance procedures, etc.)

During our time working on CHART, we have met a fair share of specialist clients who have expressed concerns over the length of time it takes to secure Delegated Underwriting Authorities from London. While they understand the need for due diligence, there is a frustration over the delays in getting a potentially great new program idea to market. CHART can provide a solution to this problem via the Incubation initiative. Under this facility, we can team the new client with a firm already possessing the necessary Underwriting Authorities, state licenses, back-office administrative capabilities, etc. to transact business on behalf of the Lloyd’s. Agreements made between the two parties prior to launch govern such issues as contract duration, duty segregation, revenue sharing, and expiration ownership. This solution inures to everyone’s benefit. TABLE OF CONTENTS

CHART DEFENDER COVERHOLDER E&O AVAILABLE NOW!

Mark Lann Phone:

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

www.chart-exchange.com

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JANUARY 2019

ANALYSIS - WILSON ELSER Continued From Page 19

ELECTRIC SCOOTERS AND AN INFLUX OF NEW CLAIMS

SCOOTER AND PARTS DEFECTS Scooter manufacturers may soon face a number of product defect claims. While not an exhaustive list, these claims could include the following: •

roadways. In fact, some cities do not require riders to wear helmets. Finally, few riders are clear on whether they are subject to traffic laws (they are in most, if not all, cities). Recently, scooter-sharing companies have drawn the ire of plaintiffs’ lawyers across the country. Both riders and pedestrians injured on or by scooters are making waves in courthouses and the media, calling for increased regulation or, in some cases, prohibition of the scooters altogether. Complaints have been filed against scooter-sharing companies based on allegations of gross negligence, aiding and abetting assault, and creating a public nuisance. These companies are not alone, however, in facing potential liability for injured riders and pedestrians. Scooter manufacturers also have been named for any number of alleged defects with the scooters.

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•

• • • •

• •

of astute product liability insurers. WHY ELECTRIC SCOOTERS?

An array of products are used as part of the sharing There is economy – cars, an array of houses, bicycles, cameras, kitchenware, issues, legal and factual, that must musical instruments, be scrutinized upon boats, construction equipment, outdoor receiving notice gear, and more. So of a claim or suit. why should insurance And, it is not simply companies pay the electric scooter particularly close companies that attention to scooters?

Failed brakes – At 15 miles per hour, functioning brakes are essential to riders and pedestrians. And, the 15 mile-per-hour maximum speed does not account need to brace for for scooters an influx of claims The answer is going downhill. – scooter and parts because the The scooters can manufacturers are popularity of electric reach even higher scooters is growing being sued right speeds and, at an unprecedented consequently, along with them.” pace. Adoption rates create a higher in metro areas across risk of serious injury or death. the United States are accelerating Stuck throttles – Likewise, faster than other players in the riders and pedestrians face an ride-sharing economy (i.e., cars). increased risk of injury when In addition to the incredible throttles get stuck, making the adoption rates, public support is rider unable to slow down. high among people from anywhere Exploding batteries on the socioeconomic spectrum, Flat tires with the greatest support from Inoperative lights low-income groups, presumably Broken tubes – If the tubes because scooters require much that transmit power within the fewer infrastructure investments. vehicle suddenly break, riders And, scooter-sharing companies are risk being thrown off. not going away. On the contrary, Defective handlebars major scooter-sharing companies Failure to warn of hidden such as Bird and Lime have begun dangers associated with the use expanding internationally. So, what of this unique electric vehicle. should risk advisors expect with

The potential of such claims should be enough to capture the attention

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regard to claims and lawsuits? WHAT TO EXPECT www.chart-exchange.com

ANALYSIS - WILSON ELSER

Khaosaming, Govecs Electric Scooter Delivery Box, CC BY-SA 3.0

The leading electric scooter company, Bird Rides, Inc.’s robust liability waiver has so far limited the number of cases plaintiffs’ lawyers are willing to take. The waiver provides that all riders, in exchange for the use of “Bird Services, [v] ehicles, and other equipment… [,] agree[ ] to fully release, indemnify, and hold harmless Bird…from liability for all ‘Claims’ arising out of or in any way related to … use of the Bird Services, [v]ehicles, or related equipment…[,] except for [c] laims based on … gross negligence or willful misconduct.” Nonetheless, the class-action lawsuit filed in Los Angeles County Superior Court on October 19, 2018 – case number 18STCV-01416 – has garnered enough attention from the public and media that an influx of claims should be expected. The Los Angeles County lawsuit names, in addition to Bird, leading competitor Lime (formerly LimeBike), and manufacturers Xiaomi USA, Inc. and Segway, Inc. The plaintiffs’ claims include Strict Products Liability, Negligence, Negligence Per Se, Gross Negligence, Breach of Implied Warranty of Fitness for a Particular and/or Intended Purpose, and Breach of Implied Warranty of Merchantability. The blanket of negligence theories cast against the manufacturers is broad. They allege manufacturing defects, design defects, and a charge of inadequate user warnings. It is to be determined how much protection, if any, manufacturers will receive under Bird’s liability waiver. It is very likely, though, that the plaintiffs will be www.chart-exchange.com

allowed to pursue lawsuits under a theory of, at least, gross negligence. Another big question is whether and how many of these suits will get to a jury. The comprehensive waiver in Bird’s user agreement includes an administrative dispute resolution process, followed by a binding arbitration provision in the event the parties are unable to settle a claim. It also includes a class action waiver. However, the opt-out provision in the same section of the agreement provides: “You have the right to opt-out and not be bound by the arbitration and class action waiver provisions … by sending written notice of your decision to opt-out to the [Bird] address…. The notice must be sent within 30 days of the effective date or your first use of the Service, whichever is later….” Whether claims are brought in court TABLE OF CONTENTS

or moved into arbitration, a rigorous defense is called for on behalf of the manufacturers. Because scooters are often left at the scene of an incident wherein injuries were suffered, there may be no physical evidence of a defect in the scooter and/or parts. Even if there were some malfunction, mechanical or otherwise, plaintiffs must prove that any injuries were the direct and proximate result of the scooter, rather than user error. These factual hurdles also have served to limit the number of lawsuits brought thus far. There is an array of issues, legal and factual, that must be scrutinized upon receiving notice of a claim or suit. And, it is not simply the electric scooter companies that need to brace for an influx of claims – scooter and parts manufacturers are being sued right along with them. JANUARY 2019

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

4215 E. McDowell Road, Suite 115 | Mesa, Arizona 85215 Phone 602.904.7687 | Fax 602.734.5759 | eriskstrategies.com

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JANUARY 2019

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