Insurance Journal West 2018-03-05 by Insurance Journal

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Contents March 5, 2018 • Vol. 96 No. 5 • West

West W1 Las Vegas Homeowners Association Ordered to Pay $20M for Faulty Swing Set

W12 BIPARTISAN MOMENTUM

BUILDING IN CONGRESS FOR CRYPTOCURRENCY REGULATIONS

W2 U.S. Supreme Rules Against Insurer’s Appeal Challenging Profits in Rate Setting

16 How 2017’s Disasters Will Help People Start Viewing Mitigation as an Investment 18 Special Report: 5 Strategies for Success in Small Business Market

W4 Family of Actor Bill Paxton Sues Hospital in California for Wrongful Death

23 Bans on Hand-Held Calls More Effective than Texting Bans with Teen Drivers: Study

W10 SEC Updates Guidance on Cyber Disclosure by Companies

24 2018 Hospitality Risks Directory

W12 Bipartisan Momentum Building in Congress for Cryptocurrency Regulations

40 The Competitive Advantage: The Death of Underwriting and Underwriters

8 Independent Agents Post Gains in Organic Growth: Reagan Consulting 10 Up, Down & Flat: Workers’ Compensation Pricing in 2018

W2 First Surety Bond Program for California Cannabis Industry OK’d

Idea Exchange

National

38 Small, Medium-Sized Firms Underestimate Cyber Risks: Allianz Report

INDEPENDENT AGENCIES POST GAINS IN ORGANIC GROWTH, PROFITABILITY IN Q4: REAGAN CONSULTING

44 The Wedge: Overcoming Fear in 18 Minutes or Less 46 Closing Quote: Speak Up! New Talent Prospects Will Listen

Departments W6 People 11 Declarations

23 BANS ON HAND-HELD CALLS MORE

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EFFECTIVE THAN TEXTING BANS WITH TEEN DRIVERS: STUDY

11 Figures 12 Business Moves 42 MyNewMarkets INSURANCEJOURNAL.COM

LETTER TO THE EDITOR

Write the Editor: awells@insurancejournal.com

Bigger Is Not Always Better

A wholesaler must add value for the insured, the retail agent, and the carrier.

Publisher Mark Wells mwells@wellsmedia.com

EDITORIAL

SALES

Editor-in-Chief Andrea Wells awells@insurancejournal.com

West Sales Dena Kaplan (800) 897-9965 X115 dkaplan@insurancejournal.com

East Editor Elizabeth Blosfield eblosfield@insurancejournal.com

Romeo Valdez (800) 897-9965 X172 rvaldez@insurancejournal.com

Chief Content Officer Andrew Simpson asimpson@insurancejournal.com

Southeast Editor/MyNewMarkets Amy O’Connor aoconnor@insurancejournal.com South Central Editor/ Midwest Editor Stephanie K. Jones sjones@insurancejournal.com West Editor Don Jergler djergler@insurancejournal.com International Editor L.S. Howard lhoward@insurancejournal.com Columnists Chris Burand, Randy Schwantz Contributing Writers

Jon Loftin, Mark Sherman IJ ACADEMY OF INSURANCE Director Patrick Wraight pwraight@ijacademy.com Associate Director Barbara Whiffen bwhiffen@ijacademy.com

ADMINISTRATION

Chief Financial Officer Mark Wooster mwooster@wellsmedia.com

MARKETING

Marketing Director Derence Walk dwalk@insurancejournal.com Marketing Administrator Gayle Wells gwells@insurancejournal.com

NEW MEDIA

New Media Producer Bobbie Dodge bdodge@insurancejournal.com Videographer/Editor Ashley Waldrop awaldrop@insurancejournal.com

CIRCULATION

hile Andrea Wells’ Feb. 13 article on consolidation in the wholesale space was well researched and written, some conclusions were drawn about the viability of independent wholesalers with which I disagree. As anyone who has tried to schedule a cable TV service can tell you, bigger isn't always better. There will always be room for a small, responsive intermediary in any link in the insurance distribution chain, as long value is added. A wholesaler must add value for the insured, the retail agent and the carrier. For the insured, the wholesaler must take the time to understand their unique exposures and craft cost-effective solutions for coverage. For the retail agent, the wholesaler needs to be sensitive to the busy CSR’s need to get coverage placed quickly and correctly, and giving great upfront advice on the best approach to a risk, even if it means a referral elsewhere. For the underwriter, the wholesaler needs to provide a good submission and understanding of the account, a targeted approach to marketing to keep quote-to-bind ratios acceptable, and realistic expectations of appropriate premiums to assure acceptable loss ratios. To refute the four points raised in the article regarding the importance of size, I offer the following observations:

Chief Marketing Officer Julie Tinney (800) 897-9965 X148 jtinney@insurancejournal.com

South Central Sales Mindy Trammell (800) 897-9965 X149 mtrammell@insurancejournal.com Southeast and East Sales (except for NY, PA and CT) Howard Simkin (800) 897-9965 X162 hsimkin@insurancejournal.com Midwest Sales Lisa Whalen (800) 897-9965 X180 lwhalen@insurancejournal.com East Sales (NY, PA and CT only) Dave Molchan (800) 897-9965 X145 dmolchan@insurancejournal.com Advertising Coordinator Erin Burns (619) 584-1100 X120 eburns@insurancejournal.com Insurance Markets Manager Kristine Honey (619) 584-1100 X132 khoney@insurancejournal.com Social Media Manager Ly Short (619) 890-7735 Lshort@insurancejournal.com Classifieds, Jobs, Agencies Wanted/For Sale Sr. Sales & Marketing Coordinator Kelly De La Mora (800) 897-9965 X125 kdelamora@insurancejournal.com

DESIGN/WEB

Chief Technology Officer/ Chief Innovation Officer Joshua Carlson jcarlson@insurancejournal.com V.P. of Design Guy Boccia gboccia@insurancejournal.com Senior Web Developer Chris Thompson cthompson@insurancejournal.com Web Developer Jeff Cardrant jcardrant@insurancejournal.com Web Developer Terrance Woest twoest@wellsmedia.com

Circulation Manager Elizabeth Duffy eduffy@wellsmedia.com

6 | INSURANCE JOURNAL | NATIONAL MARCH 5, 2018

1. Carriers want volume, but to be profitable, they also want acceptable loss ratios and good hit ratios. Astute underwriters are putting submissions from good wholesale partners on the top of the pile, regardless of the size the wholesaler. 2. State-of-the-art systems are important, but the cost of computing power has been droppin. You don’t need to be huge to afford a great system. 3. Retailers are paring down their distribution outlets, but many are choosing to keep a small, responsive independent wholesaler in their line-up because this not only makes good business sense, but also makes life easier for staff. 4. Talent is expensive, but there are many people who are keen to build a long-term reputation for talent and integrity. They want to provide extraordinary service and build relationships without the intense commission production pressure often prevalent FOR QUESTIONS at national wholesalers. REGARDING SUBSCRIPTIONS: Call: 855-814-9547 Running a small business has never been Outside the U.S., call 847-400-5951 or you may subscribe or change your address online at: easy and the rewards are not always moneinsurancejournal.com/subscribe tary. Great insureds will seek great retailers, Insurance Journal, The National Property/Casualty Magazine (ISSN: 00204714) is published semi-monthly by Wells Media and great retailers will seek great wholesalers. Group, Inc., 3570 Camino del Rio North, Suite 200, San Diego, CA 92108-1747. Periodicals Postage Paid at San Diego, CA and at additional mailing offices. SUBSCRIPTION RATES: $7.95 per copy, $12.95 Whether the market is hard or soft, whether per special issue copy, $195 per year in the U.S., $295 per year all other countries. DISCLAIMER: While the information in this pubmergers are in vogue or not, those who make lication is derived from sources believed reliable and is subject to reasonable care in preparation and editing, it is not intended an unwavering commitment to add value will to be legal, accounting, tax, technical or other professional advice. Readers are advised to consult competent professionals for application to their particular situation. Copyright 2016 Wells always thrive and prosper. Media Group, Inc. All Rights Reserved. Content may not be photocopied, reproduced or redistributed without written permission. Insurance Journal is a publication of Wells Media Group, Inc.

Christopher Gaddis President, Donald Gaddis Co. Inc.

POSTMASTER: Send change of address form to Insurance Journal, Circulation Department, PO Box 708, Northbrook, IL 60065-9967 ARTICLE REPRINTS: For reprints of articles in this issue, contact: Kelly De La Mora at 1-800-897-9965 ext. 125 or kdelamora@wellsmedia.com Visit insurancejournal.com/reprints/ for more information.

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Independent Agencies Post Gains in Organic Growth, Profitability in Q4: Reagan Consulting

nsurance agencies and brokerage firms ended 2017 with gains in organic growth and profitability in the fourth quarter. The 175 midsize and large agencies and brokerages participating in Reagan Consulting’s Organic Growth and Profitability (OGP) Survey reported overall growth. Agency organic growth in 2017 rose to 4.5 percent from 4.2 percent a year earlier, while the margin of earnings before interest, taxes, depreciation and amortization (EBITDA) went up to 20.4 percent from 20.0 percent. 8 | INSURANCE JOURNAL | NATIONAL MARCH 5, 2018

Commercial lines property/casualty rates and growth in U.S. gross domestic product reversed slides in 2016, increasing in the fourth quarter of 2017 and driving brokers’ organic growth higher, according to Brian Deitz, partner at Reagan Consulting, a merger and acquisition advisory firm. Group benefits decelerated modestly, to an average growth rate of 5.2 percent, but still remained the fastest-growing line of business for OGP participants. Merger and acquisition (M&A) transactions surged in 2017 to a record 558, according to the report.

Going forward, Reagan expects that M&A pricing will not decline and might even increase for strategically valuable targets. Deitz said the Tax Cuts and Jobs Act (TCJA), which will enhance tax cash flows for C-corporations, is likely to provide some lift to valuation. “Reagan Consulting believes that the improving economy, beneficial impacts of the tax act and relatively flat property/ casualty pricing are likely to continue improvements in organic growth and EBITDA,” Deitz said. INSURANCEJOURNAL.COM

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NATIONAL | News & Markets

Up, Down & Flat: Workers’ Compensation Pricing in 2018

orkers’ compensation rates in 2018 will be mixed, with some programs seeing pricing flat to down and others seeing spikes, according to a market prediction from the broker USI. In other words, market trends should continue as they did in 2017, according to the USI report. “In 2017, we saw a continued downward trend in workers’ compensation, including a reduction in premium rates overall, particularly in the loss-sensitive marketplace. Given the lack of deterioration in many larger carriers’ combined loss ratios, we expect similar aggressive targeting to grow market share in 2018,” the USI report predicted. USI said that returns for lowrisk investment opportunities

are still limited. On the one hand, there is both aggressive and prudent pricing coming from carriers seeking to grow premium. On the other, clients with “poor loss results, declining financials” and businesses in states such as Florida, California and New York are facing underwriting discipline (as are insureds in more volatile industry classes). For 2018, USI predicts pricing will stem from a desire to maintain or increase market share, with a goal of profitable market share driving those strategies. Other USI predictions for workers’ compensation: • Loss-sensitive programs will either see flat rates or hikes as high as 5 percent, assuming clients have clean or improving loss experience. For those

10 | INSURANCE JOURNAL | NATIONAL MARCH 5, 2018

that are seeing worsening loss experience, rates in this category will increase more than 5 percent, and carriers will likely adjust their retention levels. • For guaranteed-cost programs, USI sees rates ranging between 10 percent decreases to 10 percent jumps. Clients with very clean loss experience would escape changes, and pricing would also vary due to a client’s “specific state payroll distribution due to states’ legislative pressure on adequacy of rates,” according to the report. • Medical cost inflation is expected to rise 6 percent yearover-year, and this upward trend will continue to affect workers’ compensation and loss liability totals. • The industry can expect more increases in cost shifting from healthcare plans to

workers’ compensation, due in part to problems with the Affordable Care Act. • While self-insurance remains an alternative to insured workers’ compensation, USI says some states are becoming more conservative on their collateral position for many qualified self-insureds and more employers are “looking more closely at their existing self-insured status because of onerous associated administrative costs.” USI’s full report is the 2018 USI Insurance Market Outlook report. The report also forecast trends in commercial market areas including property, general liability, umbrella liability, international, environmental, aviation, crime, cyber, medical malpractice; and kidnap, ransom and extortion. INSURANCEJOURNAL.COM

West

Las Vegas Homeowners Association Ordered to Pay $20M for Faulty Swing Set

jury says a Las Vegas, Nevada, homeowners association must pay a man $20 million after a swing set collapsed on him as a teen and left him with brain damage. A Clark County District Court jury returned the verdict in February in a civil case filed by a teenager who suffered a traumatic brain injury in the playground INSURANCEJOURNAL.COM

accident. According to the lawsuit, 15-year-old Carl Thompson sat down on a swing set at Lamplight Village at Centennial Springs in 2013 to send a text message. The lawsuit says the set’s 42-pound metal crossbar broke, landed on his head and crushed the left side of his skull.

A jury found that Lamplight Village at Centennial Springs Homeowners Association was responsible for Thompson’s injuries. The $20 million verdict exceeds the homeowners association’s insurance policy. Copyright 2018 Associated Press

MARCH 5, 2018 INSURANCE JOURNAL | WEST | W1

WEST | News & Markets First Surety Bond Program for California Cannabis Industry OK’d

U.S. Supreme Rules Against Insurer’s Appeal Challenging Profits in Rate Setting

he U.S. Supreme Court in late February declined to hear Mercury Insurance Co.’s appeal to overturn a February 2017 California Court of Appeal ruling that held Insurance Commissioner Dave Jones’ 2013 order requiring the insurer to reduce its homeowner insurance rates by 5.4 percent did not infringe on the insurer’s constitutional rights. This case is the latest in a number of efforts by Mercury and other insurers to address limits on insurance rates in the state’s Proposition 103. Mercury lawyers said the carrier should be allowed to disregard a state-mandated 30-year-old rate formula, and argued the company should be allowed to argue over how to calculate the fair rate of return in every case. The court of appeal agreed with Jones that Mercury was bound by the formula. The court also agreed with the commissioner that Mercury could seek a variance from the formula if Mercury established the rate would cause deep financial hardship, which Mercury did not attempt to do. W2 | INSURANCE JOURNAL | WEST MARCH 5, 2018

Mercury also argued unsuccessfully to the court of appeal it had a constitutional right under the first amendment to charge ratepayers for brand advertising. After Mercury’s petition challenging the February 2017 decision was denied by the California Supreme Court in May 2017, Mercury petitioned to the U.S. Supreme Court arguing that Jones’ ruling violated the company’s Fifth and 14th Amendment rights. Mercury argued that the company had a right to determine its own profit with each rate filing proceeding versus using the commissioner’s rate formula, which was approved by the California Supreme Court in 1994. The commissioner’s original order that Mercury lower its homeowner rates by 5.4 percent in 2013, saved policyholders $11,745,102, according to the California Department of Insurance. “After Mercury’s repeated assaults on Proposition 103, we have prevailed once again in protecting consumers from excessive and unjustified insurance rates,” Jones said in a statement.

alifornia Insurance Commissioner Dave Jones has approved the first surety bond program for the cannabis industry in the California. Continental Heritage Insurance Co. is the first insurer in the state to be approved to offer surety bonds for the cannabis industry, according to the California Department of Insurance. Cannabis Surety Bonds are needed for various entities seeking licensure under the Medicinal and Adult-Use Cannabis Regulation and Safety Act. The state requires a surety bond of $5,000 for most licensing categories. The new program from Continental Heritage is the first-of-its-kind for California’s new and evolving cannabis industry, according to Jones. “Cannabis businesses should have insurance coverage available to them just like any other California business,” said Insurance Commissioner Dave Jones. “As Insurance Commissioner, my mission is insurance protection for all Californians, which includes insurance for California’s legalized cannabis businesses. I encourage more insurance companies to file cannabis business insurance products with the department to meet the needs of this emerging market.” Jones launched an initiative last year to encourage commercial insurance companies to write insurance to fill coverage gaps for the cannabis industry. This first filing and approval of commercial insurance for the cannabis industry was announced in November 2017. Jones has convened meetings between commercial insurance company executives and cannabis business owners to educate the insurance industry about the cannabis industry. INSURANCEJOURNAL.COM

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WEST | News & Markets

Family of Actor Bill Paxton Sues Hospital in California for Wrongful Death

he family of Bill Paxton has filed a wrongful death lawsuit against a Los Angeles hospital and the

surgeon who performed the actor’s heart surgery shortly before he died. The suit filed against Cedars-Sinai

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Medical Center alleges the surgeon, used a “high risk and unconventional surgical approach” that was unnecessary and that he lacked the experience to perform, and that he downplayed Bill Paxton the procedure’s risks. And it alleges the hospital knew the surgeon, Dr. Ali Khoynezhad, tended to “engage in maverick surgeries and show suboptimal judgment.” The misguided treatment caused Paxton to suffer excessive bleeding, cardiogenic shock and a compromised coronary artery, the suit alleges. Paxton’s death certificate says he died Feb. 25, 2017, from a stroke, 11 days after surgery to replace a heart valve and repair aorta damage. He was 61. Paxton’s widow, Louise, and children, James and Lydia, brought the lawsuit. It seeks unspecified damages and reserves the right to add more defendants who work for the hospital as their roles and names become clear. Cedars-Sinai said it could not offer public comment about Paxton’s case. Khoynezhad has since left Cedars-Sinai for another hospital. The lawsuit comes just before the first anniversary of the death of Paxton. Paxton played major supporting roles in the films “Apollo 13,” “Titanic,” and “Aliens,” and starred in the HBO series “Big Love.” Paxton, who was born and raised in Fort Worth, Texas, was among the industry’s busiest actors. He had nearly 100 credits, and was starring in the CBS drama “Training Day” when he died. Copyright 2018 Associated Press

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WEST | PEOPLE Integro Insurance Brokers has named Jacquelyn Neal as a principal in the marine practice. Neal is

Jacquelyn Neal

Drew Johnston

Tim Tokuda

Aletha Coffey

Rosie Esper

based in the San Francisco, Calif., office. She will manage a book of existing marine clients and develop new cargo and marine liability business. Neal has more than 30 years of industry experience, most recently as senior account manager at Woodruff Sawyer & Co. She was previously with Lockton Insurance Brokers, and Marsh Risk & Insurance Services. Integro is an international insurance brokerage and risk management firm.

San Francisco, Calif.-based Woodruff-Sawyer & Co. has named Drew Johnston vice president of aviation. Johnston will steer the growth of the newly formed aviation practice, which will focus on insurance and risk management solutions for the aviation industry and provide risk consulting to clients who face aviation exposures from emerging technologies such as drones. He has more 20 years of experience in the aviation industry. He began his career in the U.S. Navy in 1994, before entering the insurance business in 1999. Prior to joining Woodruff-Sawyer, he was aviation practice leader for IMA Financial Group. He was an aviation insurance broker for Aon Risk Services before that. Woodruff-Sawyer has offices throughout California, and in Oregon, Washington, Colorado, Hawaii and New England. Atlantic Casualty Insurance Co. has named Tim Tokuda assistant vice president in business develop-

ment and marketing. Tokuda will work to develop marketing strategies and distribution channels for multiple states within the company. He will work out of the Scottsdale, Ariz., office. In his most recent role, Tokuda was head of the marketing department at Century Insurance Group. During his time at Century, he served in both an underwriting and marketing capacity holding several different positions within the organization. He was also part of the Berkley organization in Scottsdale at Berkley Regional Specialty Insurance Group (now Berkley Aspire), where he oversaw field operations. Tokuda began his insurance career as a multi-line underwriter for Selective Insurance in 2000. Atlantic Casualty is a provider of excess and surplus lines property/casualty insurance. The firm has

W6 | INSURANCE JOURNAL | WEST MARCH 5, 2018

offices in Goldsboro, N.C., Glastonbury, Conn., And Scottsdale. CAL Insurance & Associates Inc. has named Aletha Coffey an account manager on its commercial lines team. Coffey was previously a commercial account executive with GS Insurance Solutions. She was a marketing representative for BizInsure before that. CAL Insurance is an independent insurance agency based in San Francisco. Leavitt Group of Boise, Idaho, has named Rosie Esper as a personal insurance agent. Esper focuses on home and auto insurance for families and individuals. Esper has been in the insurance industry since 2012 and has 12 years of experience in sales and management. She was previously with Field Waldo Insurance Agencies. Leavitt Group of Boise is part of Leavitt Group, a privately held insurance brokerage. The Buckner Co. has named Lance Butler president of Colorado operations. Butler will be responsible for managing the top line growth and operations in the state. Butler has more than 25 years of experience in large commercial accounts. Buckner reports placing more than $200 million of insurance premiums through its five offices in Utah, Idaho and Colorado. Marsh & McLennan Insurance Agency has promoted eight executives to principals of the firm. In San Diego, the new principals are Donna DeBolt,

Wayne Pages, Greg Pendergast, Erin Quigley, Jeff Simpson, Ryan Stover, and Chris Wilson. In MMA’s Anchorage office, Jennifer Meyhoff was also named

principal. DeBolt joined the firm in 2003 and works in MMA’s commercial property/casualty division. She has more than 40 years of industry experience and works primarily with technology and life science companies. DeBolt is also a member of MMA’s multinational practice and serves as the Western region coordinator. Meyhoff joined the firm in 2004 and leads the employee benefits division in MMA’s Anchorage, Alaska office. She has more than 25 years of industry experience and works with companies on health and welfare, compensation and retirement services.

continued on page W8

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Pages joined the firm in 2007 and is director of actuarial and underwriting services. He has 22 years of employee benefits experience and works with clients to analyze claims trends and forecast healthcare costs. Pendergast joined the firm in 2003 and is a client executive in MMA’s commercial property/casualty division. He works with companies to develop risk management solutions and has extensive experience working with firms of all sizes. Quigley joined the firm in 2007 and is director of corporate communications. Quigley directs the firm’s corporate communications and marketing strategy for MMA’s West region. She is also responsible for media relations, branding strategy and special projects for the Barney & Barney Foundation. Quigley has more than 12 years of industry experience. Simpson joined the firm in 2008 and is a client executive in the property/casualty division. He has more than 13 years of experience. Stover joined the firm in 2009 and is a client executive in retirement services. He has more than 20 years of experience and helps lead the retirement services division. Wilson joined the firm in 2012 and is a Client executive in the employee benefits division. He develops employee benefit solutions for middle market companies and has more than 12 years of industry experience. MMA is an insurance brokerage offering a risk management and employee benefit solutions. Vital Insurance Partners has named Meg Matlach vice president of product develop-

ment. Matlach, who will be based in Phoenix, Ariz., will be responsible for product development and program enhancement within the specialty insurance marketplace. She will work with program administrators, managing general agents/underwriters, and insurance carriers to bring new product to market. Matlach has held a variety of positions throughout her 35-year career. Prior positions include executive level and senior

W8 | INSURANCE JOURNAL | WEST MARCH 5, 2018

underwriting and product positions with QBE North America, Allianz/Fireman’s Fund, Arrowhead General Insurance Agency, CNA Excess & Select, F.B. Beattie/ Safeco and Sentry Insurance. Vital Insurance Partners is a privately held insurance intermediary and consulting firm. HUB International of California has named Lynn Greene vice president of the employee benefits practice. Greene’s primary role will be the design, placement, and maintenance of healthcare programs and human resource solutions for mid-market and large companies. Greene has more than 25 years of experience working with employer group clients. Greene was most recently an assistant vice president and employee benefits consultant and client advocate for WoodruffSawyer. Prior industry experience includes positions with Athens Benefits Insurance Services and Putnam, Knudsen and Weiking. Chicago, Ill.-based Hub is an insurance brokerage that provides property/casualty, life and health, employee benefits, investment, and risk management products and services. Worldwide Facilities has opened a new location in Palm Springs, Calif., and has added David Senescu in the office as senior vice president. Senescu’s area of expertise includes construction, environmental, hospitality, product liability and real estate. Senescu was previously with Keating. He began his insurance career as a retail agent before transitioning to the wholesale market. Senescu is a U.S. Navy veteran and was a commercial pilot with Comair Airlines before his insurance career. Worldwide Facilities is a national wholesale insurance broker and managing general agent. PEMCO Insurance has added Curt Simonson to the carrier’s people and brand team as the department’s learning and development manager. Simonson’s responsibilities include

managing employee training programs and leadership development strategies. He has more than 30 years of training and development experience. Prior to joining PEMCO, Simonson was a strategy consultant at Spider Strategies, a software company. PEMCO is a Washington-based carrier providing auto, home and boat insurance. The Oregon State Senate has confirmed Cameron Smith as director for the Department of Consumer and Business Services. Smith has served as acting director for the department since Gov. Kate Brown nominated him in December 2017. Smith previously was director of the Oregon Department of Veterans’ Affairs, and a senior policy advisor to both Gov. John Kitzhaber and Gov. Ted Kulongoski. In one of his first official decisions as director, Smith appointed Andrew Stolfi as the state’s insurance commissioner. Stolfi joined the department in February to serve as the administrator for the Division of Financial Regulation. Stolfi spent six years in Switzerland at the International Association of Insurance Supervisors, most recently serving as chief operating officer and chief counsel. Before joining the association, Stolfi served in senior management roles at the Illinois Department of Insurance. Cannasure Insurance Services has hired Kieran O’Rourke to lead its managing general agency underwriting platform. O’Rourke has more than 20 years property/casualty underwriting and senior management experience. Prior to joining Cannasure, O’Rourke was assistant vice president of property underwriting of AmTrust Financial Services Inc. Cannasure is a Cleveland, Ohio-based managing general agent and wholesale broker specializing in cannabis insurance. The firm offers products including general liability, product liability, auto, workers’ compensation, inland marine, directors and officers, employment liability and professional liability. INSURANCEJOURNAL.COM

WEST | News & Markets

SEC Updates Guidance on Cyber Disclosure by Companies By Jim Finkle and Pete Schroeder

he U.S. Securities and Exchange Commission updated guidance to public companies on how and when they should disclose cyber security risks and breaches, including potential weaknesses that have not yet been targeted by hackers. The guidance also said company executives must not trade in a firm’s securities while possessing nonpublic information on cyber security attacks. The SEC encouraged companies to consider adopting specific policies restricting executive trading in shares while a hack is being investigated and before it is disclosed. The SEC, in unanimously approving the additional guidance, said it would promote “clearer and more robust disclosure” by companies facing cyber security issues, according to SEC Chairman Jay Clayton, a Republican. Democrats on the commission reluctantly supported the guidance, describing it as a paltry step taken in the wake of a raft of high-profile hacks at major companies that exposed millions of Americans’ personal information. They called for more rigorous

rulemaking to police disclosure around cyber security issues, or requiring certain cyber security policies at public companies. Commissioner Robert Jackson said the new document “essentially reiterates years-old staff-level views on this issue,” and pointed to analysis from the White House Council of Economic Advisers that finds companies frequently under-report cyber security events to investors. “It may provide investors a false sense of comfort that we, at the Commission, have done something more than we have,” Commissioner Kara Stein, a Democrat, said in a statement. The SEC first issued guidance on cyber disclosures in 2011. There has since been a surge in breaches, including one at the SEC itself. The agency announced in September its EDGAR corporate filing system had been hacked in 2016 and may have been used for insider trading. The matter is under review. The new guidance will mean an increase

in information disclosed on cyber attacks and risks, several attorneys said. “This essentially creates a mandatory new disclosure category — cyber security risks and incidents,” said Spencer Feldman, an attorney with Olshan Frome Wolosky LLP. The guidance addresses concerns about insider trading that emerged last year after Equifax Inc., the credit monitoring firm, revealed several executives had sold shares in the days between the company’s discovery of a breach and its disclosure. An Equifax board review found no wrongdoing. Craig A. Newman, a partner with Patterson Belknap Webb & Tyler LLP said the SEC guidance “makes clear that it doesn’t want a repeat of the Equifax situation.” (Reporting by Schroeder and Finkle; Editing by Grant McCool) Copyright 2018 Reuters

Law Enforcement Officers 3 Times More Likely to Be Injured Than Other Workers

n estimated 669,100 law enforcement officers were treated in emergency departments across the nation for nonfatal injuries between 2003 and 2014, according to a new study. Researchers at the National Institute for Occupational Safety and Health found law enforcement officers have historically high rates of fatal and nonfatal injuries. The research shows that officers are three times more likely to sustain a nonfatal injury than all other U.S. workers. The study, Nonfatal Injuries to Law W10 | INSURANCE JOURNAL | WEST MARCH 5, 2018

Enforcement Officers: A Rise in Assaults, which is the first to examine nonfatal injuries among officers on a national scale, was published online in the American Journal of Preventive Medicine. It is also the first to capture nonfatal injuries sustained from assaults and unintentional injuries such as accidental falls or motor vehicle crashes. The researchers, whose aim was to provide national estimates and trends of nonfatal injuries to law enforcement officers from 2003 to 2014, found the following: The law enforcement officer nonfatal

injury trend increased across the 12-year period studied; this is in contrast with the trend for all other U.S. workers, which significantly decreased; assault-related injury rates increased almost 10 percent annually from 2003 to 2011. The three leading reasons for on-duty injuries were assaults and violent acts (36 percent), bodily reactions and exertion from running or other repetitive motions (15 percent), and transportation incidents (14 percent). The study used data from the National Electronic Injury Surveillance System – Occupational Supplement obtained for injuries treated in U.S. emergency departments from 2003 to 2014. INSURANCEJOURNAL.COM

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WEST | News & Markets

Bipartisan Momentum Building in Congress for Cryptocurrency Regulations By David Morgan

olted by the global investment craze over bitcoin and other cryptocurrencies, U.S. lawmakers are moving to consider new rules that could impose stricter federal oversight on the emerging asset class, several top lawmakers said. Bipartisan momentum is growing in the Senate and House of Representatives for action to address the risks posed by virtual currencies to investors and the financial system, they said. Even free-market Republican conservatives said regulation could be needed if cryptocurrencies threaten the U.S. economy. “There’s no question about the fact that there is a need for a regulatory framework,” said Republican Senator Mike Rounds, a Senate Banking Committee member. Digital assets currently fall

into a jurisdictional gray area between the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Treasury Department, the Federal Reserve and individual states. Much of the concern on Capitol Hill is focused on speculative trading and investing in cryptocurrencies, leading some lawmakers to push for digital assets to be regulated as securities and subject to the SEC’s investor protection rules. “The SEC is properly the lead on the issue,” said Republican Representative Bill Huizenga, chairman of the House Financial Services Subcommittee on Capital Markets. Huizenga said the recent growth of the virtual currency market had made him more comfortable with more oversight. “Six months ago, we didn’t see this explosion. The marketplace has changed,” he said.

W12 | INSURANCE JOURNAL | WEST MARCH 5, 2018

Carolyn Maloney, a Democratic senior member of the House Financial Services Committee, is another lawmaker advocating for direct oversight of digital assets by the SEC. “A lot of people don’t realize there’s nothing backing these virtual currencies,” she said. Virtual currencies have existed for years but speculation in them has recently ballooned, along with scams promising investors returns of over 1,000 percent. In a time of volatile markets, hackers are also active in the sector, stealing $530 million of digital currency from Japanese exchange Coincheck in January. Bitcoin lost over half its value earlier this year after surging more than 1,300 percent. “We have to look carefully at all of the cryptocurrencies and make sure individuals don’t get taken advantage of,” said Representative Tom MacArthur, a House Financial Services Committee Republican. Regulators globally have raised the alarm over cryptocurrencies, saying they may aid money laundering and terrorist financing, hurt consumers and undermine trust in the global financial system. France and Germany want cryptocurrencies on the agenda for the upcoming G20 meeting of the largest advanced and developing economies. Conservative Republicans also recognize the potential for broader risks. “I’m a total free-marketer, so I don’t want to regulate,” said Republican Representative Dave Brat, a member of the conservative House Freedom Caucus.

“But if it’s a currency that could destabilize the whole economy, you’re going to have that conversation,” he said. The SEC and CFTC chairmen recently called for greater scrutiny of digital assets before the Senate Banking Committee. While many lawmakers agree tighter oversight is needed, there is no consensus yet in Congress on how to proceed. While some lawmakers say speculative investments should be classed as securities, others want digital currency transactions regulated as commodities. The SEC is already cracking down on transactions known as initial coin offerings, while the CFTC has identified digital assets as a commodity subject to its anti-fraud rules. Peter Van Valkenburgh, director of research at the Coin Center, a member of the cryptocurrency lobby, said lawmakers need to distinguish between ICOs that operate like securities and other virtual currencies including bitcoin, which he described as a commodity like gold. Rounds said there was an opportunity to regulate cryptocurrencies as both a security and a commodity. But are also mindful of the need to protect innovation, including the underlying distributed ledger technology, said Democratic Senator Chris Van Hollen, a member of the Senate Banking Committee. “The goal here is to have rules of the road that protect consumers without trying to squash innovation.” (Editing by Michelle Price and Phil Berlowitz) Copyright 2018 Associated Press. INSURANCEJOURNAL.COM

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Figures

That’s how much prison time drivers who caused a deadly wreck while texting on their phones could have gotten under a bill in the Wyoming House. But the bill failed with two-thirds of the House voting no.

$8 MILLION

The number of states, along with the U.S. Chamber of Commerce, national coal industry interests and groups representing manufacturing and chemical industries, that oppose a federal judge’s order to cleanup coal ash at a federal Tennessee plant. The states say the cleanup order for the Tennessee Valley Authority’s Gallatin Fossil Plant would “broadly expand federal oversight into groundwater pollution historically regulated by states.”

The number of workers who died in New York in construction-related accidents in 2016, the last year for which full data was available, according to a study issued by the union-backed New York Committee for Occupational Safety and Health. That’s up from 55 deaths in 2015 and the highest number of such fatalities since 2002.

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Declarations Reassurance

“I want to reassure every single Texan impacted by Harvey that we will never let up until your homes and businesses are restored, until your communities are fully protected from future potential storm damage.” — Gov. Greg Abbott announced during a luncheon in

Rockport that Hurricane Harvey-damaged Texas communities will be able to apply for more than $1 billion in federal funds that can be used on projects to help prevent or lessen damage from future storms.

Failed System

“We’re here in front of you today at the Legislature because the regulatory system has failed … Their mission (at the Kansas Corporation Commission) calls for them to regulate the oil and gas industry to protect the public safety. They’re not doing it.” — Cindy Hoedel, of Matfield Green, Kansas, at a House

committee hearing in support of a bill that aimed to prevent earthquakes caused by oil and gas production wastewater disposal methods by limiting the amount of water that could be injected into wells. Hoedel said there were no earthquakes five years ago in the area where she lives but now they occur on a regular basis. The committee rejected the bill.

Clandestine Pot Shops

The amount a jury awarded Sharlotte and Timothy Mott after finding that MPII Inc., which does business as Mission Park Funeral Chapels and Cemeteries funeral home in San Antonio, Texas, was negligent in losing their daughter’s body before she was to be cremated on Aug. 15, 2015. Their daughter died at age 25 of complications from cystic fibrosis.

$850 MILLION

The amount of a settlement between 3M Co. and Minnesota’s Attorney General Lori Swanson in a lawsuit over a former Scotchgard ingredient that got into the state’s drinking water. The suit has dragged on for eight years and involves perfluorinated compounds (PFCs). Minnesota alleged that the chemicals harmed citizens. The original suit demanded $5 billion, including punitive damages.

“We do have ongoing challenges with unauthorized establishments, unlawful and illegal clandestine operations, that are out operating either under the guise of medical marijuana or operating as unlawful and illegal cannabis sales (shops) throughout the city.”

— Los Angeles Deputy Chief John Sherman says the city has issued licenses to nearly 100 marijuana retailers, but police estimate there are at least two times that number operating illegally in the city and undercutting those who are playing by the rules.

Drone Collisions

“The likelihood that a drone will collide with an airline aircraft is increasing.”

— Airlines for America, a trade group representing large

carriers, and the Air Line Pilots Association and the National Air Traffic Controllers Association said in a letter to U.S. lawmakers. A helicopter’s crash landing in South Carolina is believed to have been caused by a civilian drone, which would make it the first drone-related crash of an aircraft in the United States.

Opioid’s Impact

“One in four has been directly impacted by opioids, but we all can play a role in saving lives.” — National Safety Council (NSC) President and CEO

Deborah A.P. Hersman said analysis of federal data showed that 1,086 Pennsylvanians died accidentally in 2016 — an increase of 15 percent over 2015. Opioid overdose led to 78 percent of those deaths. The NSC made Pittsburgh its first stop on a nationwide tour of its exhibit: Prescribed to Death: A Memorial to the Victims of the Opioid Crisis.

MARCH 5, 2018 INSURANCE JOURNAL | NATIONAL | 11

NATIONAL | Business Moves Hub International Limited, Susoreny & Associates, IPS Advisors

Paragon Insurance Holdings, Edgewood Partners Insurance Center, Oak Hill Capital Partners

Avon, Conn.-based Paragon Insurance Holdings LLC announced that Edgewood Partners Insurance Center and Oak Hill Capital Partners have taken an equity stake in the firm. Terms of the deal were not disclosed. The investment from EPIC and Oak Hill will further propel Paragon’s organic and mergers and acquisitions growth strategies and create greater opportunity for Paragon’s agency, carrier and reinsurance trading partners, according to a statement announcing the deal. Paragon is a national, multiline specialty managing general agency with offices in San Francisco, Calif., and Seattle, Wash.

Arthur J. Gallagher & Co., Market Financial Group, Austin Consulting Group

Arthur J. Gallagher & Co. has acquired Crystal Lake, Ill.based Market Financial Group

Ltd. and its affiliate, Austin Consulting Group Inc. Terms of the transaction were not disclosed. Market Financial Group is a risk management and human resources consultant and broker providing property/casualty and human resources products and services for public entities, businesses and individuals primarily in Illinois. Austin Consulting Group is an insurance consultant, finance and insurance advocate and claims advocate serving automobile dealerships throughout the United States. Richard J. Waters Jr., W. Robert Messer and Kenneth Riemen will continue to operate from their Crystal Lake location under the direction of Patrick M. Gallagher, head of Gallagher’s Midwest retail P/C brokerage operations, and John Neumaier, head of Gallagher’s Great Lakes employee benefits operations. Arthur J. Gallagher & Co. is an international insurance brokerage and risk management services firm, headquartered in Rolling Meadows, Illinois.

12 | INSURANCE JOURNAL | NATIONAL MARCH 5, 2018

Global insurance brokerage Hub International Limited (Hub) has acquired the assets of Susoreny & Associates Inc. Headquartered in Crown Point, Indiana, Susoreny & Associates is a fully accredited independent insurance agency. Focused on the unique needs of commercial and industrial fleet trucking firms, it provides a comprehensive offering of coverages to help protect owner-operators, fleet managers, and related freight transportation companies. Joseph Susoreny, president of Susoreny & Associates, will join Hub Transportation and report to Karl Klus, COO of HUB Transportation. In a separate deal, Hub also acquired the assets of IPS Advisors LLP and IPS RIA LLC (IPS Advisors). IPS is headquartered in Dallas, Texas, with offices in Houston, Austin and Fort Worth. IPS Advisors is an independent life and health benefits brokerage and consulting firm. IPS Advisors’ leadership team and staff will join Hub Texas. Randall R. Martell, co-managing partner of IPS Advisors, will lead the employee benefits practice for Hub Texas and Rod Sager, co-managing partner of IPS Advisors, will lead the life operation. Terms of the acquisitions were not disclosed.

XPT Group, W.E. Love

XPT Group has partnered with W.E. Love & Associates (WEL), a 36-year old MGA with expertise in trucking risks. Led by John H. Love and

based in Burlington, N.C., WEL offers select retail agencies direct access to trucking insurance underwriters. WEL is currently operating in 30 states. WEL was established in 1982 by W.E. “Dub” Love, Jr. John Love has worked with WEL, which continues to be a family run business, for 36 years. He has served as WEL’s president since 1992 and will continue to do so in WEL’s partnership with XPT. The transaction closed on Jan. 25, 2018, and WEL will continue to operate under its established brand name. XPT is a new specialty insurance distribution company formed by Tom Ruggieri, the former CEO of Swett & Crawford along with Jeff Heath, founder of Heath XS - now owned by Hallmark Insurance - and Mark Smith, who was an executive with RT Specialty, AmWINS and Stewart Smith.

Worley Claims Services, Audit Services Inc.

Worley Claims Services LLC, a provider of claims services in North America, acquired Audit Services Inc. (ASI), a claim estimate writing and review supplier for the property and auto insurance markets based in Atlanta. Financial terms of the transaction were not disclosed. StoneRidge Advisors, LLC advised Worley on the transaction. Founded in 1998, ASI provides estimate writing and review services for its property and auto clients throughout the United States. Through its workforce of approximately 350 employees, the company specializes in desk estimate

continued on page 14

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Ryan Specialty Group, Irwin Siegel Agency

Ryan Specialty Group LLC has completed its acquisition of the assets and operations of the Irwin Siegel Agency Inc. This transaction was previously announced on January 24, 2018. Ryan Specialty Group is a Chicago, Ill.headquartered international specialty insurance organization. ISA is a human and social service managing general underwriter and is based in Rock Hill, N.Y. Its specialties include developmental disability organizations, addiction treatment and behavioral/mental healthcare, youth programs and more. ISA’s operations are a part of RSG Underwriting Managers LLC, the managing general underwriting division of Ryan Specialty Group. In 1985, ISA developed the first property and casualty insurance package specifically designed for non-profit organizations serving individuals with disabilities. The agency is led by Howard Siegel, who has been with the agency for nearly 40 years. He will continue as head of the Irwin Siegel Agency going forward.

NSM, TranSpec

NSM Insurance Group has acquired TranSpec, a specialized transportation insurance broker located in Nashville. TranSpec specializes in designing and implementing insurance programs for trucking firms that utilize owner-operators. The program coverages include non-trucking liability, physical damage and occupational accident for owner-operators. NSM has provided motor carriers and owner-operators insurance programs for more than 20 years, and the addition of TranSpec and its team will bring NSM growth opportunities in the business. NSM Insurance Group focuses on development, implementation, marketing and underwriting industry-specific insurance programs with more than $500 million in annual premium. NSM Insurance Group is aggressively seeking to acquire additional niche specific insurance businesses and program managers. INSURANCEJOURNAL.COM

NATIONAL | News & Markets

How 2017’s Disasters Will Help People Start Viewing Mitigation as an Investment By Elizabeth Blosfield

lthough clear challenges can come with the increasing cost and frequency of global natural disasters, there could also be untapped opportunity for insurers to tackle coverage gaps, according to industry experts. “One of the lessons coming out of 2017 is that there’s still a tremendous amount of opportunity in the insurance industry,” said Bill Churney, president of AIR Worldwide, during a panel discussion at the Insurance Information Institute’s 2018 P/C Joint Industry Forum, held in January at New York City’s Marriott Marquis. The cost of natural disasters has almost quadrupled over the last decade, with 2017 being the costliest year on record, according to research from the U.S. Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA). Much of this increase has to do with changes in exposure and frequency and severity of events, said panelist Alex Kaplan, head of North America at Swiss Re Global Partnerships. However grim it sounds, this increase

in natural disaster cost could lead to untapped market share for the insurance industry, according to Kaplan, who presented research by Swiss Re during the panel discussion. Although 2017 preliminary numbers show there were approximately $300 billion in natural catastrophe losses across all perils, Kaplan added that only approximately $130 billion of that was insured. “The other $270 billion is on the back of taxpayers and not on the balance sheets of insurance companies,” he said. As an example, Churney pointed out that most of the risk seen in Hurricane Harvey was uninsured. Losses from Hurricane Harvey exceeded $125 billion, ranking second only to Hurricane Katrina – the costliest storm in the 38-year period of record, the NOAA reported. “One of the things that I think the industry will have to come to grips with is this whole idea of the one-in-100-year flood zone FEMA (Federal Emergency Management Agency) map,” Churney said. “It’s not a very good proxy for the risk, given that 40-50 percent of the loss in Harvey was outside of those areas. So, that’s the

16 | INSURANCE JOURNAL | NATIONAL MARCH 5, 2018

opportunity that’s out there. How does the industry insure the exposure there?” A tool that could assist the insurance industry in harnessing that opportunity is technology, according to Churney. “With a lot of the risks that we’ve talked about this year – wildfires and flood in particular – the common refrain [among insurers] has always been, ‘Well, we can’t insure that. There’s not the technology to do that,’” he said. “We obviously would argue against that.” As natural catastrophe models continue to evolve to better assess risk, and clearer aerial imagery allows companies to gather data without bothering the policyholder, the insurance gap can begin to close, Churney said. “I think companies are pushing forward on that front,” he said. “There’s a good distance to go, but I think it’s the collection of better data about the risk coupled with the ever-improving models that will help give people more certainty to hopefully take on more of that gap.” Kaplan added that another important aspect of closing the coverage gap is data collection and the ability to merge publicly available data with private market technical expertise. “[That] actually changes, I believe, the value proposition our industry can have in terms of getting money in the hands of the people that need it before the disaster occurs,” he said. According to Swiss Re’s research, 32.5 percent of Americans today said they couldn’t pull together at least $2,000 in the event of a disaster. With 8 percent of the U.S. population affected by natural disasters in 2017, this means 8.5 million people not only were affected by disasters, but also didn’t have cash on hand and likely didn’t have flood insurance, Kaplan said. “We have to figure out as an industry how are we going to get money in the hands of the people that need it in a much faster way,” he stated. “I think technology and data are absolutely critical to that.”

Rise in Presidentially Declared Disasters

Beyond an increase in natural catastrophe costs, presidentially declared disasters INSURANCEJOURNAL.COM

have also increased in frequency. Swiss Re’s research shows that while Ronald Reagan averaged 28 presidentially declared disasters per year during his presidency, and Bill Clinton averaged 90 per year, 2011 saw 242 disasters during Barack Obama’s presidency, and the first year of Donald Trump’s presidency brought 137 presidentially declared disasters. With this in mind, panelists speculated the federal government could soon shift the burden of owning natural disaster risk to states and municipalities, giving insurers another opportunity to do more. “If there’s any clear policy that’s coming out of Washington holistically, I would call it a reallocation of burden,” Kaplan said. “We are finally beginning to come to a point where the federal government is going to say, ‘You know what? This is not financially sustainable. We are not going to continue to provide bailouts to communities that are otherwise making bad decisions about land use, planning or building codes. You have to own your risk.’ Part of the solution is inevitably going to be insurance.” Panelists also predicted that U.S. states and municipalities may begin to realize the need for taking control of their own risk. “I also suspect that there are a lot of states and municipalities in our country who are going to start realizing, ‘Wow. It’s a huge burden, and it is fairly uncertain as to whether and how and when the federal government is going to respond,’” Kaplan said.

Challenges and Lessons

However, one challenge for insurers in this environment is that there can be a perception that bailouts are bigger than they are, which can discourage assuming personal responsibility for natural catastrophe risk, Kaplan stated. “The largest check FEMA will write an individual family is $33,000,” he said. “And I think most people don’t know that. I’ve known risk manINSURANCEJOURNAL.COM

agers of public entities across the United States that always say, ‘Why would I pay for something I know I’m going to get for free?’ So, there’s this perception that the federal government is going to come and save the day.” Indeed, Julie Rochman, president and CEO at the Insurance Institute for Business & Home Safety (IBHS), told Insurance Journal that she sees a lack of incentive to own risk with the current system of “safety nets” in place. “There are safety nets below safety nets below safety nets, so if you fall through one – the primary one, which is private insurance – you land in a federal agency’s lap,” she said. “If you fall through that, you might land in another federal agency’s lap, and if you fall below that, you might land in some sort of state safety net,” she said. “If you fall below that, you’ve got Red Cross and all of the NGO’s. So we have set up this system of like nine safety nets, which allows people to say, ‘I don’t have to take any personal responsibility. I don’t have to own any of my own risk.’” Rochman also pointed to another problem – one she said she sees as “a bit naïve.” “People also do not believe that bad things will happen to them,” she said. “You hear it all the time after a catastrophe: ‘We never thought it would happen

here or to us.’” As insurers work to harness the challenges and opportunities the current natural disaster environment presents, Rochman said it’s important insurers send “honest market-based signals and information to people, so that they truly understand the risk they face.” “Insurers are strong proponents of honest conversations about relative risk,” she said. “Those signals essentially tell the property owner that they have choices about the buildings in which they live and work, but they should not fool themselves about their risk of flooding, or wildfire, or earthquake, or tornadoes or hurricanes. If the home or business owner ignores the relative pricing and availability signals, that is their choice, but it’s just not a good thing.” Kaplan said he believes learning from the events of last year is a good place to start in working toward change. “I think there are a lot of lessons in the last year,” he said. “I think it’s promising that we have so many governments around the world focusing on risk, the cost of risk and how to engage the private sector to shift more of the burden off of the back of taxpayers onto the balance sheet of the private market.” Rochman agreed, adding that she believes change is in the pipeline for 2018. “I do believe that people’s ears and eyes are now open to the concept of mitigation, and they’re open to having a conversation that would end in not repeating the same type of losses,” she said. “You’ve got institutional investors, government agencies, academics, meteorologists and all of these people focused on resilience. Hopefully, 2018 will be the year when the switch flips, and people start seeing that mitigation is an investment; Share it’s not an expense.”

this article with a colleague. III Joint Industry Forum 2018 Natural Disaster Panel: (l to r): Julie Rochman (IBHS), Alex Kaplan (Swiss Re), Bill Churney (AIR Worldwide), Philip Klotzbach IJMAG.COM/35DI (Colorado State University), and Erwann Michel-Kerjan (McKinsey & Co.). MARCH 5, 2018 INSURANCE JOURNAL | NATIONAL | 17

NATIONAL | Special Report | Small Business

By Andrea Wells

18 | INSURANCE JOURNAL | NATIONAL MARCH 5, 2018

he small business market is big. The U.S. small commercial market represents about one-third of the total commercial lines market and generates between $99 billion and $103 billion in direct written premium, according to a 2016 McKinsey & Co. report. It could be a much bigger market as more businesses are being started. Since 1994, the United States has had an average of 400,000 business startups a year. Business startup activity was up again in 2016, continuing a three-year ascension and reaching pre-recession levels, according to the 2017 Kauffman Index of Startup Activity, from the Ewing Marion Kauffman Foundation. “A three-year upward trend in new business formation is a promising sign for the economy,” said Victor Hwang, vice president of Entrepreneurship at the Kauffman Foundation. “Recent research demonstrates that more startups lead to higher productivity, wage growth and quality of life. Growing startups not only support individual entrepreneurs but lift surrounding communities.” In 2015, new startup firms that created 2.5 million jobs.

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The number of startup firms — firms one year old or newer — rose to 415,226 in the year ended March 2017, according to the Bureau of Labor Statistics. Also, there is an insurance gap. Many small businesses have been caught without flood or business interruption insurance and many more report that they are not buying cyber insurance. But the gap is even bigger than that. The McKinsey report found that almost 40 percent of U.S. sole proprietorships don’t carry any commercial coverage. Digital small business insurer Next Insurance surveyed 30,000 small businesses and learned that 44 percent who have been in business for at least a year have never had insurance. The market is also very competitive. Again, according to McKinsey, the U.S. small commercial segment is divided among many carriers, with the largest accounting for only 6 percent of total premiums. Market share is particularly fragmented at the smaller end of the market (businesses with one to 29 employees). However, the largest carriers are moving quickly to secure their positions, McKinsey said. In the past six years, the market share of large carriers with more than $2.5 billion in direct written premiums for U.S. small commercial has increased by 12 percentage points from 2009, suggesting that scale is an important driver of growth, McKinsey said. Large carriers now represent 51 percent of premiums in the one to 29 full-time employee group of small businesses. For every incumbent insurer committing to agents and the small business marINSURANCEJOURNAL.COM

ket like Travelers, Chubb, CNA and The Hartford, there is one investing in or partnering with online platforms that bypass agents and brokers. In addition, there is a growing number of tech-oriented online brokers focused on small commercial lines including Embroker, Next, Bunker and CoverWallet to name a few. Carrier positions vary within the small business segment because small business accounts range widely in size and scope, says Craig Welsh, distribution leader at Westfield Insurance Co., an Ohio-based independent agency property/ casualty carrier, ranked No. 13 on Insurance Journal’s Super Regional P/C Insurers™ list developed by Demotech. “When you look at market size, small business is really the largest segment of commercial entities, mostly state-by-state, and overall, so there’s huge potential,” Welsh said. “It’s also an industry that’s fairly fragmented. When you look at market share by carrier, there’s no single carrier, or I should say group of carriers that tend to dominate the market. That’s because a lot of it is still handled through local agents.” Welsh sees plenty of opportunity for agents and their carrier partners in small business given the evolving definition of a small business account, a better economy, and the fragmentation of the insurance market serving small business. Steve Tombarelli, vice

president of SIAA’s Business Insurance Advantage, sees opportunity for agents in the many new small businesses being opened. SIAA’s insurance carriers are loving small business opportunity, too. “It’s an area they want to grow and expand,” says Tombarelli. “They all want to grow small commercial business.” The Hartford, which just bought the small business accounts of Foremost, has been committed to the market for a long time. “It is a critical business for us,” says Matt Kirk, head of sales and distribution for small commercial at The Hartford. “It’s very important that we support our agency partners in this space.” Kirk says from an agency perspective small business is an area with real opportunity. “When you look at the economic data, and who drives a local economy, small businesses tend to be the ones hiring and buying equipment,” he said. Plus, small businesses sometimes turn into large businesses. “It’s a great space

but it’s very important from an agent’s perspective to ensure that their carriers bring product and capabilities that are going to be responsive to their agency and the small business owners.”

Five Strategies for Small Business Success

Insurance Journal discussions with agents and carriers unearthed five strategies for succeeding in the small commercial lines segment today: rearrange and redefine; utilize service centers; specialize; upgrade technology and stay committed.

1. Rearrange and Redefine

McKinsey’s definition of small business includes businesses with up to 100 employees and $100,000 in annual premiums. But not everyone follows that formula. “Both agencies and carriers tend to define small business a little bit differently and there’s some interesting aspects to that,” according to Westfield’s

continued on page 20

MARCH 5, 2018 INSURANCE JOURNAL | NATIONAL | 19

NATIONAL | Special Report | Small Business continued from page 19

Welsh. “For a long time, small business implied smaller premiums, and oftentimes I think in our industry small premiums mean small service.” However, small business can be larger premium accounts, too, he said. Minneapolis, Minn.-based Hays Companies has managed to grow its small business book by reorganizing its overall book to create a dedicated small business unit. Erin Keys, Hays Companies’ Premier Programs practice leader, says the process began last year, and so far, it has improved the agency’s profitability as well as its relationships with key carrier partners. “It’s very transactional business,” said Keys, noting that the agency understood it needed a better way to handle the many accounts it had on the books for small business. Prior to the transition, Hays had about 14 marketers on the property/casualty team, and everyone was handling a book that included both small to large national accounts even though small business is handled a little differently. “We wanted to get the proper procedures in place to handle small business and just keep everything together, get organized,” she said. Daily, transactional processing is now handled under the Premier Programs department. Keys says it helps to quickly turn around certificates of insurance and other endorsements, as well as answer any underwriting questions. They could immediately get ahold of someone to help in that front. Producers and account servicers still interact with the clients to some extent, but the

regular transactions are now concentrated within the new unit. To make the change, Hays looked at its overall book of business and pulled out those accounts with $10,000 in revenue or less. “Then we looked at how many different carriers we were using and who was receiving the bulk of the business,” Keys said. “We vetted each carrier, starting at the zero to $2,500 (range) in revenue.” Keys said that process made it clear that the agency could get by with fewer carriers to successfully run its small business and programs.

‘When you look at market size, small business is really the largest segment of commercial entities, mostly state-bystate, and overall, so there’s huge potential.’

20 | INSURANCE JOURNAL | NATIONAL MARCH 5, 2018

“We went from utilizing about 35 carriers and excess and surplus lines brokers to consolidating to just three. We are now up to about five,” she said. Keys says there are still a few “outlier” partners in small business, but now the agency tends to push the bulk of the business to its five partner carriers. “It’s been great,” she said. “They’re all national providers, with strong Hays relationships on the small business side as well as the middle market, large/national account side.” The move has helped profitability all-around, including growth in contingency income as well as improved loss ratios. Carriers welcomed the change, Keys said. “We said to them, ‘Here’s what our book looks like. We need to partner with you guys, and we need you to think a little bit outside the box, and not just write your typical, four-walls, in-office exposure. We might need you to help us on an account with a little meat on it.’”

Keys has seen additional benefits of the move. The agency’s carriers have been writing some accounts they may not have written without the consolidation. Hays is now well-positioned as more “big name carriers” are making the move to build their small business books. New carriers to small business, such as Chubb and Liberty Mutual, as well as traditional legacy small business carriers, like The Hartford and Travelers, are investing in online rating systems and expanding appetite, she said. Keys advises other agencies to find the right partner that has a large breath of appetite and is willing to think outside the box. “Then consolidate your book,” she said. “It’s been successful for us, on the frontend and on the back-end.” Redefining the small business segment has worked for others as well. Herman S. Peery, senior vice president, at Insurance Office of America Inc. (IOA) based in Longwood, Fla., has selected a different

INSURANCEJOURNAL.COM

way to refer to its “small” business. “Small business is a very broad term,” Peery said. “In fact, we’ve eliminated the term ‘small’ in our definition of the clientele that would be identified for this group. We refer to them as ‘select’ because it is a select group of clients that would fit into this category.” Rather than size of revenue, number of employees or even size of premium, IOA uses other criteria to define its “select” business. “We look at it as a service need,” he says. Once the account has secured coverage, and marketing is complete, “select” clients operate autonomously until the next renewal cycle comes up. “We would consider that a candidate for our select division.” Deseriee Wanson, IOA’s director of commercial sales and development, says “select” accounts range anywhere from $500 in premium all the way up to several hundred thousand dollars in premium. “We have a team here locally of 23 employees that are set up to support and provide a frictionless delivery of the policies to our clients, while maintaining our core coverages, and the high service levels that IOA as an organization displays to our clients,” she said.

2. Utilize Service Centers

Agencies have also found success in the small premium segment by utilizing insurance carrier service centers. Lou Mitchell, chief operating officer, at Sihle Insurance Group, an independent agency based in Altamonte Springs, Fla., says that over the past five years, Sihle has grown its small business book about 10 INSURANCEJOURNAL.COM

percent to 15 percent per year. According to Mitchell, the growth has been purely organic due more small companies starting up in Florida. As a general rule, Sihle defines small business accounts as any account less than $15,000 in premium. If an account is on the smaller end of that, say less than $2,500 in premium, Sihle requires that the business go to a carrier service center. Typically, small commercial would generate 15 percent commission, but using a carrier service center costs the agency one to two percentage points of commission. In Mitchell’s view, the cut in commission is well worth the cost to the agency. “That eliminates us handling the $500, $600, or $1,000 policies that would put us in the ‘red’ as soon as we do a certificate of insurance,” he figures. The service center handles all servicing needs and renewal activity. Plus, the carrier then assumes any errors and omissions exposure for that account, he said. “If that carrier decides they no longer want to write that type of business then they would give us proper notice at the agency level that it’s going to be non-renewed for whatever reason and then we get involved again and find another carrier to place it with,” he said. Sihle remains the agent of record. Mitchell admits some carriers are much better at service centers than others. “But I think the overall key is that when a client is first written it has to go to the service center then. It’s very difficult to write a client and give it the personal service that we deliver to our

clients from an agency standpoint and then the next year say, ‘Oh, well, you’re going to a service center,’” he said. “The ones who do it best offer extended hours, can handle changes efficiently, and have the know-how to determine how changes will affect policies of the client,” added SIAA’s Tombarelli. Mitchell maintains that service centers are one reason Sihle has increased its small business book. “Because of the volumes that we write we have with some carriers assign people and direct lines that all of our clients call to,” he said. “We even have one service center that answers the phone as Sihle Insurance and they have Sihle Insurance stationary and business cards. People have no idea that they’re actually being serviced by a carrier service center.” Mitchell particularly likes Westfield’s approach. “I’ve dealt with tons of them but they’re by far the most unique in the way they’re set up and how they execute day to day business,” he said. Sihle doesn’t discriminate on the type of small business

account, which has helped the agency grow its small business, too, Mitchell says. “We don’t market the size as much as we market the general community itself,” he said. “We don’t turn people away and we very seldom ever refer to somebody else. That’s why we use the service centers on the mini-accounts as we call them, so we don’t have to turn somebody away.”

3. Specialize

SIAA’s Tombarelli says one of the most important things about succeeding in small business is to have a diverse book. “We encourage agents to have a diverse book,” he said. “Each year, different segments of the economy go well or slow down. For instance, when the economy is strong, construction thrives and when the economy is weak, construction is one of the first industries to have cuts.” Connecticut, home state to Smith Brothers Insurance in Glastonbury, lags behind the nation in job creation and drumming up new small business accounts has taken a

continued on page 22

MARCH 5, 2018 INSURANCE JOURNAL | NATIONAL | 21

NATIONAL | Special Report | Small Business continued from page 21 bit more planning, according to Jared Carillo, director of foundation accounts at Smith Brothers, a core agency partner for BroadStreet Partners Inc. “Connecticut is a challenging place to be attractive to bring new people in the door,” Carillo said. “In our world, where we’re growing is really by seeking out those clients that require the services of an advisor. To a degree, we are profiling those business that rely more heavily on the advice that we give them — businesses with a little bit more complexity than just vanilla.” Smith Brothers defines small business clients as those generating commission income of $5,000 or less. Carillo estimates that roughly 90 percent of new small commercial business is organic, new business. “Most is being generated strictly through word of mouth via referrals,” he said. Carillo says that while a lot of new business stems from typical “general insurance” in the small commercial space, the agency has found some areas where specialization has helped drive growth. “We have three different spaces in our agency that we specialize in for small commercial — lawyers, trucking and transportation exposed risks, and jewelers,” he said. For Smith Brothers, the ideal small business client is one that will really listen and understand the risks that they face, as well as the valued advice of an independent agent. “That’s the level of client that we desire and seek,” he said. According to the Connecticut agent, success in this market comes with being deliberate in profiling the type of client that

the agency wants to interact with, as well as having a variety of specialties. “It’s not just the size of the revenue,” he said. Carillo says that it’s “pretty easy to start throwing more money at advertising, go door to door, distributing pamphlets” to get any client. “But we are finding the best success by getting solicitations and networking within our current satisfied group of clients.”

4. Upgrade Technology

Both carriers and agencies believe it is important to stay on the cutting edge of technology to make it in the small business market. “As we move into the future in small business, a real key component to being successful is to stay on the forefront of the technology that’s available to us to deliver both product and service to our small business customer,” says Chris Rooker, managing director of commercial property/casualty at Higginbotham, headquartered in Fort Worth, Texas.

‘You’ve got to be committed to it. It’s not something you can just jump into and jump out of.’ Rooker believes the industry lags at times in its delivery mechanisms for small commercial policies, which is a threat to agents. “We’re going to have to be able to utilize the technology that’s becoming available both in our agencies and as we interact with our customers, and partner insurance carriers.” In his view, the industry isn’t quite there.

22 | INSURANCE JOURNAL | NATIONAL MARCH 5, 2018

Today, most people like to do business on their iPhone, he says. But most small businesses right now, from an insurance perspective can’t do their business off their iPhone. Rooker says that needs to change. “I think if an agent is going be successful five years from now, or maybe less, they’re going to have to develop the technologies that allow these small business owners to access their insurance policies — their auto ID cards, their certificates of insurance, and other service related matters in an easy fashion,” he said. Some small business carriers and agency management systems provide some sort of mobile technology to meet customer needs, but most do not, according to Rooker. “There’s a true gap in the ability to service customers via an iPhone or mobile device,” he said.

5. Stay Committed

Whatever agencies do when it comes to being successful in small business they must be committed to the market, says Andy Wood, Insureon’s executive vice president of retail operations. Headquartered in Chicago, Insureon provides online capabilities that connect small business owners with insurance providers. Insureon has made small business its only business by delivering fast, online insurance to micro-small businesses, or those typically with less than 10 employees. Most agencies cannot invest in the type of technology it takes to write more than 200,000 micro-small business customers, like Insureon, but Wood says independent agents can still find success.

“You’ve got to be committed to it,” he said. “It’s not something you can just jump into and jump out of.” Insureon is a high-volume agency that emphasizes efficiency. “For us, that translates into imagining a funnel when somebody comes to our website and being able to drive them through the application process very quickly without a lot of people falling off, having processes in place to pick up those people who have dropped off to save them. Then once you get them in through the application process, get them quotes quickly and then bind quickly,” he said. “You’re not wasting lot of energy. You’re not wasting a lot of space. Obviously, there is money to be made, if you can do it efficiently and effectively.” Woods says some agencies struggle in small commercial because they don’t have the economic mindset to invest in small business. “By necessity, they will jump to where the opportunities are, so they work on some health. They might work on some personal lines. They might run across a small commercial account here and there,” he said. “But if you really want to be successful at it, you’ve got to have resources that are dedicated to it, and you’ve got to have a very well-defined, clearly articulated marketing plan on how you’re going to go after that small commercial space.” Economics drive success in small business, he added. “You’ve got to be super-efficient and super-effective.”

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News & Markets | NATIONAL

Bans on Hand-Held Calls More Effective than Texting Bans with Teen Drivers: Study

tate laws banning handheld cellphone calls while driving can be effective in reducing teens’ hand-held conversations while driving, but texting bans are not effective in reducing texting while driving, according to a new study. The study, led by the Center for Injury Research and Policy at Nationwide Children’s Hospital, examined the effectiveness of state-level cellphone laws in decreasing teens’ use of cellphones while driving. The study found differences in the effectiveness of the laws for teen drivers’ cellphone use based on the type of ban – hand-held phone conversations or texting – as well as whether the ban applied to young drivers or all drivers (universal). Teen drivers reported 55 percent fewer hand-held phone conversations when universal INSURANCEJOURNAL.COM

hand-held calling bans were in place compared to states with no bans. Universal texting bans did not fully discourage teens from texting while driving. Bans limited to just young drivers were not effective in reducing either hand-held conversations or texting. Even with laws in place, about one-third of teen drivers are still talking on the phone and texting while driving. “Our study shows that universal bans of hand-held cellphone calls while driving can be effective in reducing teens’ hand-held conversations while driving, but texting bans are not effective in reducing texting while driving,” said Motao Zhu, MD, MS, PhD, the study’s lead author and principal investigator in the Center for Injury Research and Policy at Nationwide Children’s Hospital.

“Nearly all states ban texting while driving, however, these bans are not effective. More states should implement handheld cellphone bans, which have been proven to discourage hand-held cellphone conversations while driving.” The study, done in conjunction with researchers from West Virginia University and the University of Minnesota, was published in the Journal of Adolescent Health. While the causes for the differences in laws and behavior are unknown, the authors suggest these relationships may be attributed to actual or perceived enforcement of these laws. For example, it may be easier for police to enforce universal hand-held bans because they don’t need to judge a driver’s age from afar and can more easily identify a driver holding a phone to his ear than using a phone in his lap. Drivers may also feel an officer would be able to identify them holding a phone to their ear but not texting in their lap.

‘More states should implement handheld cellphone bans, which have been proven to discourage hand-held cellphone conversations while driving.’ While enacting and enforcing cellphone laws is one way to curtail these behaviors, it may not be the only solution. Cellphone use while driving is a complex social phenomenon, especially for teens and young adults. The study says more work needs to be done not only to develop and enforce effective laws but also to develop and implement best practices for preventing cellphone-related driving injuries, which may include behavior change programs, education, and/or interventions. Data from this study was gathered from the 2011-2014 Traffic Safety Culture Index Surveys and individual states’ legislative archives.

MARCH 5, 2018 INSURANCE JOURNAL | NATIONAL | 23

2018

Hospitality Risks Directory

earching for the right market for a hard-to-place hospitality risk? Look no further than Insurance Journal’s Hospitality Risks Directory — a comprehensive listing of excess and surplus lines intermediaries and carriers offering hospitality risks coverage nationwide. The information listed in this directory has been compiled to serve as a resource guide for independent agents and brokers looking for superior markets for everything from nightclubs to special events, hotels to motels, spas, resorts and restaurants too. All markets profiled in this directory have been updated with the most current information available provided directly by the intermediaries and carriers writing the coverage. IJ has made every attempt to ensure the accuracy of all information listed in this directory. To submit a listing for future Hospitality Risks directories, e-mail Kristine Honey at: khoney@insurancejournal.com. We hope you find IJ’s 2018 Hospitality Risks Directory to be a useful tool when searching for quality markets. To comment on this directory, or any other Insurance Journal resource, please e-mail: editorial@insurancejournal.com.

Banquet Halls Market Advanced E&S Group AFC Insurance All Risks, Ltd. AmWINS Program Udr, ResortGuard Ins. Program Arlington/Roe & Co. Ashley General Agency Atlas General Insurance Services, LLC Berkley Select Brecht & Associates Burns & Wilcox CITA Insurance Services

States Available View website for state info Most States Has Pen, All States All States IL IN KY MI MN MO OH TN WI TX Many States All States TX All States All States

Cochrane & Company Crusader Insurance Company Erickson-Larsen, Inc. Evolution Insurance Brokers Executive Insurance Professionals, PLLC

ID MT OR WA CA MN MT ND NE SD WI WY All States CA GA OK TX

N24 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2018

Banquet Halls Market First Choice Ins. Intermediaries (Liq. Liab only) Founders Insurance Company G.J. Sullivan Company Gabor Insurance Services, Inc. Gorst & Compass Insurance Innovative Coverage Concepts Izzo Insurance Services, Inc. J.M. Wilson James River Insurance Company Jimcor Agencies Joseph Krar & Associates Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. M.J. Kelly Company MacNeill Group McClelland and Hine, Inc. N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Quirk & Company RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. RMIS Roush Insurance Services, Inc. SCU - Middletown Seguros Underwriters, LLC Southern Insurance Underwriters, Inc. CMGA Specialty Insurance SUITELIFE by Venture Insurance Programs TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies Topa Insurance Company Unifax Insurance Systems, Inc. USG Insurance Services, Inc. USX/S Walter General Agency (WGA) Western Surplus Lines Agency, Inc. Wilson Smith Group

States Available Most States AL CO CT FL IA IL IN KS LA MD MI MN MT NC NH NV NY OH OR TN VA WI CA NV OR WA FL CA All States except VT All States Most States All States All states except AK HI IA ID KS MT ND NM CT MA ME NH RI AZ CA CO HI ID NM NV OK TX UT WA WY AK AZ CA HI NV AR FL IA LA MO MS NC TN TX FL NC SC TX VA TX AL FL GA LA NC SC TN All States AZ CA NV CT MA MD ME NH NJ NY OH PA RI VT All States MA Most States AR KS LA MS OK TX All except CA NH NY RI All States LA NM OK OR TX WA CA CT MA ME NH NY RI VT All States IL IN OH CT MA ME NH NJ RI PA FL GA MO TN TX AL FL GA SC TN CA CT DE FL GA IL MA MD MI MN MO NC NJ NY OH PA RI SC TN TX All States Most States TX All States CA CA All States All States AR IA IL IN KS KY MO OK TN

LA ND NM OK TX

AZ LA MD MI MS NJ NV NY OK PA TX

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2018 Hospitality Risks Directory Bars/Night Clubs

Bars/Night Clubs

Bars / Night Clubs coverage category sponsored by: M.J. Hall & Company, Inc. - for more info, check out our ad on pages 4 & 13 (West).

Market Abram Interstate Insurance Services, Inc. Advanced E&S Group All Risks, Ltd. American Team Managers Insurance Services AmWINS Group, Inc. AmWINS Program Udr, ResortGuard Ins. Program Anderson & Murison, Inc. Appalachian Underwriters Arlington/Roe & Co. Ashley General Agency Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox CID Insurance Programs, Inc. Combined Group Crusader Insurance Company Empire Underwriters Entertainment Risk Evolution Insurance Brokers First Choice Ins. Intermediaries (Liq. Liab only) Founders Insurance Company Gabor Insurance Services, Inc. Gorst & Compass Insurance Heritage Specialty Insurance IBI - Insurance Brokers Incorporated Indemnity Excess & Surplus Agency Innovative Coverage Concepts International Excess Companies IPC Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies (and Taverns) Joseph Krar & Associates Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. M.J. Kelly Company

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States Available CA View website for state info Has Pen, All States CA All States All States All States All States IL IN KY MI MN MO OH TN WI TX All States TX All States AZ CA CO ID NE NM NV OR TN TX UT WA Most States CA All except monopolistic AZ CA CO FL GA IL LA MA MD MI NJ NV NY TN TX UT VA All States Most States AL CO CT FL IA IL IN KS LA MD MI MN MT NC NH NV NY OH OR TN VA WI FL CA AR OK TX IL IN MI AZ CA CO ID MT NV OR TX WA All States except VT All States AZ CA ID NV OR WA All States Most States OH All States All states except AK HI IA ID KS MT ND NM CT MA ME NH RI AZ CA CO HI ID NM NV OK TX UT WA WY AK AZ CA HI NV AR FL IA LA MO MS NC TN TX

Market MacNeill Group Market Finders Insurance Corp. MAXIMUM McClelland and Hine, Inc. McLeckie Insurance Group MexiPass International Insurance Services, LLC Midlands Management Corp. Morstan General Agency, a div of Hull & Co., LLC N-Surance Outlets, Inc. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing Partners Specialty Group, LLC Patriot National Underwriters, Inc. Philadelphia Insurance Companies Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Promont Ins. Advisors (and Taverns - no clubs) Quaker Special Risk Quirk & Company Regency Insurance Brokerage Services RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. Risk Placement Services, Inc. RMIS RMS Hospitality Group Roush Insurance Services, Inc. SCU - Middletown Seguros Underwriters, LLC Southern Insurance Underwriters, Inc. CMGA Specialty Insurance (and Taverns) Tejas American General Agency Topa Insurance Company U.S. Risk Insurance Group, Inc. UFG Insurance/Specialty Division Unifax Insurance Systems, Inc. USASIA Insurance Services USG Insurance Services, Inc. USX/S Walter General Agency (WGA) Western Security Surplus Insurance Brokers LLC Western Special Risks, Inc, a JenCap Holdings Co. Western Surplus Lines Agency, Inc. Worldwide Facilities, LLC

States Available FL NC SC TX VA All States All States TX AR AZ CO NC OK TN TX All States Most States All States AL FL GA LA NC SC TN AZ CA NV CT MA MD ME NH NJ NY OH PA RI VT All States MA Most States All States AR KS LA MS OK TX All States except LA All except CA NH NY RI All States All States Most States LA NM OK OR TX WA

State availability varies - call us!

CA CT MA ME NH NY RI VT All States All States All except AK VT WV IL IN OH CT MA ME NH NJ RI PA FL GA MO TN TX AL FL GA SC TN CA CT DE FL GA IL MA MD MI MN MO NC NJ NY OH PA RI SC TN TX TX CA All States AZ CA CO ID NM NV OR UT WA CA CA NV All States All States AR IA IL IN KS KY MO OK TN

CA FL GA LA MO NC NJ SC TX VA AZ NV LA ND NM OK TX All States

March 5, 2018 INSURANCE JOURNAL-NATIONAL REGION | N25

2018 Hospitality Risks Directory Breweries/Micro

Bed & Breakfasts Market All Risks, Ltd. AmWINS Program Udr, ResortGuard Ins. Program Appleby & Sterling Arlington/Roe & Co. Ashley General Agency Aspera Insurance Services, Inc. Atlas General Insurance Services, LLC Berkley Select Burns & Wilcox CITA Insurance Services Cochrane & Company Combined Group Crusader Insurance Company Empire Underwriters Erickson-Larsen, Inc. Evolution Insurance Brokers Executive Insurance Professionals, PLLC G.J. Sullivan Company Gorst & Compass Insurance IPC J.M. Wilson James River Insurance Company Joseph Krar & Associates M.J. Hall & Company, Inc. McClelland and Hine, Inc. McLeckie Insurance Group MexiPass International Insurance Services, LLC Midlands Management Corp. NeitClem Wholesale Insurance Brokerage, Inc. NIF Group Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Philadelphia Insurance Companies Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Promont Insurance Advisors Quaker Special Risk Quirk & Company RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. Risk Placement Services, Inc. TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies Topa Insurance Company UFG Insurance/Specialty Division Unifax Insurance Systems, Inc. Walter General Agency (WGA) Western Special Risks, Inc, a JenCap Holdings Co. Western Surplus Lines Agency, Inc. Wilson Smith Group

States Available Has Pen, All States All States AZ CA NV IL IN KY MI MN MO OH TN WI TX CA FL Many States All States All States All States ID MT OR WA Most States CA All except monopolistic MN MT ND NE SD WI WY All States CA GA OK TX CA NV OR WA CA AZ CA ID NV OR WA Most States All States CT MA ME NH RI AK AZ CA HI NV TX AR AZ CO NC OK TN TX All States Most States AZ CA NV All States Most States AR KS LA MS OK TX All States except LA All except CA NH NY RI All States All States Most States LA NM OK OR TX WA CA CT MA ME NH NY RI VT All States Most States TX All States CA AZ CA CO ID NM NV OR UT WA CA

AR IA IL IN KS KY MO OK TN

AZ NV LA ND NM OK TX

AZ LA MD MI MS NJ NV NY OK PA TX

N26 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2018

Breweries/Micro coverage category sponsored by: Anderson & Murison - for more info, check out our ad on page 41 (National Section).

Market Advanced E&S Group All Risks, Ltd. Appleby & Sterling Arlington/Roe & Co. Aspera Insurance Services, Inc. Braishfield Associates, Inc. CID Insurance Programs, Inc. Cochrane & Company Combined Group Crusader Insurance Company Delta General Agency Corp. Elite Underwriters Entertainment Risk Erickson-Larsen, Inc. Evolution Insurance Brokers Founders Insurance Company G.J. Sullivan Company Gorst & Compass Insurance Indemnity Excess & Surplus Agency International Excess Companies IPC Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies M.J. Hall & Company, Inc. Market Finders Insurance Corp. McLeckie Insurance Group Midlands Management Corp. Morstan General Agency, a div of Hull & Co., LLC N-Surance Outlets, Inc. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing Partners Specialty Group, LLC Philadelphia Insurance Companies Prime Insurance Company

States Available View website for state info Has Pen, All States AZ CA NV IL IN KY MI MN MO OH TN WI CA FL All States AZ CA CO ID NE NM NV OR TN TX UT WA ID MT OR WA Most States CA TX CA FL GA NY AZ CA CO FL GA IL LA MA MD MI NJ NV NY TN TX UT VA MN MT ND NE SD WI WY All States AL CO CT FL IA IL IN KS LA MD MI MN MT NC NH NV NY OH OR TN VA WI CA NV OR WA CA AZ CA CO ID MT NV OR TX WA All States AZ CA ID NV OR WA All States Most States OH All States All states except AK HI IA ID KS MT ND NM AK AZ CA HI NV All States AR AZ CO NC OK TN TX Most States All States AL FL GA LA NC SC TN AZ CA NV CT MA MD ME NH NJ NY OH PA RI VT All States MA Most States All States All States except LA All except CA NH NY RI

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2018 Hospitality Risks Directory Caterers

Breweries/Micro Market Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Quaker Special Risk Quirk & Company RISCO Insurance Brokerage, Inc. Roush Insurance Services, Inc. SCU - Middletown Specialty Insurance Tejas American General Agency Topa Insurance Company U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. Walter General Agency (WGA) Worldwide Facilities, LLC

States Available All States Most States LA NM OK OR TX WA CT MA ME NH NY RI VT IL IN OH CT MA ME NH NJ RI PA CA CT DE FL GA IL MA MD MI MN MO NC NJ NY OH PA RI SC TN TX TX CA All States CA AR IA IL IN KS KY MO OK TN

All States

Casinos Market All Risks, Ltd. Alliant Insurance Services American Specialty Ins. & Risk Services, Inc. AmWINS Group, Inc. Anderson & Murison, Inc. Distinguished Specialty Empire Underwriters Entertainment Risk Evolution Insurance Brokers Izzo Insurance Services, Inc. James River Insurance Company Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. MAXIMUM NIF Group Pacific Excess Insurance Marketing Partners Specialty Group, LLC Prime Insurance Company U.S. Risk Insurance Group, Inc. Walter General Agency (WGA) Worldwide Facilities, LLC

www.insurancejournal.com

States Available Has Pen, All States All States All States All States All States All States All except monopolistic AZ CA CO FL GA IL LA MA MD MI NJ NV NY TN TX UT VA All States All States All States AZ CA CO HI ID NM NV OK TX UT WA WY AK AZ CA HI NV All States All States Most States All States All except CA NH NY RI All States

AR IA IL IN KS KY MO OK TN

All States

Market Abram Interstate Insurance Services, Inc. All Risks, Ltd. Anderson & Murison, Inc. Arlington/Roe & Co. Ashley General Agency Aspera Insurance Services, Inc. Atlas General Insurance Services, LLC Berkley Select Braishfield Associates, Inc. Brecht & Associates CID Insurance Programs, Inc. Cochrane & Company Delta General Agency Corp. Erickson-Larsen, Inc. Evolution Insurance Brokers Executive Insurance Professionals, PLLC First Choice Insurance Intermediaries, Inc. Founders Insurance Company Gabor Insurance Services, Inc. Gorst & Compass Insurance Indemnity Excess & Surplus Agency International Excess Companies Jacobs & Associates James River Insurance Company Jimcor Agencies Joseph Krar & Associates Lionheart Insurance Services, Inc. (Large Caterers) M.J. Hall & Company, Inc. M.J. Kelly Company MacNeill Group Market Finders Insurance Corp. McClelland and Hine, Inc. McLeckie Insurance Group Midlands Management Corp. Morstan General Agency, a div of Hull & Co., LLC Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing Partners Specialty Group, LLC Patriot National Underwriters, Inc.

States Available CA Has Pen, All States All States IL IN KY MI MN MO OH TN WI TX CA FL Many States All States All States TX AZ CA CO ID NE NM NV OR TN TX UT WA ID MT OR WA TX MN MT ND NE SD WI WY All States CA GA OK TX Most States AL CO CT FL IA IL IN KS LA MD MI MN MT NC NH NV NY OH OR TN VA WI FL CA AZ CA CO ID MT NV OR TX WA All States OH All States All states except AK HI IA ID KS MT ND NM CT MA ME NH RI AZ CA CO HI ID NM NV OK TX UT WA WY AK AZ CA HI NV AR FL IA LA MO MS NC TN TX FL NC SC TX VA All States TX AR AZ CO NC OK TN TX Most States All States All States AZ CA NV CT MA MD ME NH NJ NY OH PA RI VT All States MA Most States All States AR KS LA MS OK TX

March 5, 2018 INSURANCE JOURNAL-NATIONAL REGION | N27

2018 Hospitality Risks Directory Caterers Market Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities ProHost USA Quirk & Company Regency Insurance Brokerage Services RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. RMIS Roush Insurance Services, Inc. SCU - Middletown Specialty Insurance (and Delis) TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies Topa Insurance Company U.S. Risk Insurance Group, Inc. UFG Insurance/Specialty Division USX/S Walter General Agency (WGA) Western Security Surplus Insurance Brokers LLC Western Special Risks, Inc, a JenCap Holdings Co. Western Surplus Lines Agency, Inc. Wilson Smith Group

Dinner Theaters States Available All except CA NH NY RI All States All States except AK LA NM OK OR TX WA

State availability varies - call us!

CA CT MA ME NH NY RI VT All States IL IN OH CT MA ME NH NJ RI PA CA CT DE FL GA IL MA MD MI MN MO NC NJ NY OH PA RI SC TN TX Most States TX All States CA All States AZ CA CO ID NM NV OR UT WA All States AR IA IL IN KS KY MO OK TN

CA FL GA LA MO NC NJ SC TX VA AZ NV LA ND NM OK TX

AZ LA MD MI MS NJ NV NY OK PA TX

Market Entertainment Risk Evolution Insurance Brokers Executive Insurance Professionals, PLLC Founders Insurance Company Innovative Coverage Concepts James River Insurance Company Jimcor Agencies Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. McClelland and Hine, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Quirk & Company Seguros Underwriters, LLC U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. Walter General Agency (WGA) Wilson Smith Group (includes Comedy Clubs)

All States LA NM OK OR TX WA FL GA MO TN TX All States CA

AR IA IL IN KS KY MO OK TN AZ LA MD MI MS NJ NV NY OK PA TX

Gentlemanâ&#x20AC;&#x2122;s Clubs

Dinner Theaters Market AmWINS Program Udr, ResortGuard Ins. Program All Risks, Ltd. Appalachian Underwriters Arlington/Roe & Co. Aspera Insurance Services, Inc. Berkley Select Brecht & Associates Crusader Insurance Company Delta General Agency Corp. Elite Underwriters Empire Underwriters

States Available AZ CA CO FL GA IL LA MA MD MI NJ NV NY TN TX UT VA All States CA GA OK TX AL CO CT FL IA IL IN KS LA MD MI MN MT NC NH NV NY OH OR TN VA WI All States except VT All States All states except AK HI IA ID KS MT ND NM AZ CA CO HI ID NM NV OK TX UT WA WY AK AZ CA HI NV TX All States AZ CA NV All States MA Most States All except CA NH NY RI

States Available All States Has Pen, All States All States IL IN KY MI MN MO OH TN WI CA FL All States TX CA TX CA FL GA NY All except monopolistic

N28 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2018

Market Abram Interstate Insurance Services, Inc. All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. Appalachian Underwriters Arlington/Roe & Co. Crusader Insurance Company Entertainment Risk Evolution Insurance Brokers

States Available CA Has Pen, All States All States All States All States IL IN KY MI MN MO OH TN WI CA AZ CA CO FL GA IL LA MA MD MI NJ NV NY TN TX UT VA All States

www.insurancejournal.com

2018 Hospitality Risks Directory Gentlemen’s Clubs Market First Choice Ins. Intermediaries (Liq. Liab only) Founders Insurance Company G.J. Sullivan Company Gorst & Compass Insurance Heritage Specialty Insurance Innovative Coverage Concepts Jacobs & Associates James River Insurance Company Jimcor Agencies Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Market Finders Insurance Corp. MAXIMUM McClelland and Hine, Inc. Midlands Management Corp. Morstan General Agency, a div of Hull & Co., LLC N-Surance Outlets, Inc. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc.

Pacific Excess Insurance Marketing

Partners Specialty Group, LLC Prime Insurance Company Quaker Special Risk Quirk & Company Regency Insurance Brokerage Services Risk Placement Services, Inc. RMIS RMS Hospitality Group Seguros Underwriters, LLC Southern Insurance Underwriters, Inc. CMGA Tejas American General Agency U.S. Risk Insurance Group, Inc. UFG Insurance/Specialty Division Unifax Insurance Systems, Inc. USG Insurance Services, Inc. Walter General Agency (WGA) Worldwide Facilities, LLC

www.insurancejournal.com

Hotels/Motels States Available Most States AL CO CT FL IA IL IN KS LA MD MI MN MT NC NH NV NY OH OR TN VA WI CA NV OR WA CA AR OK TX All States except VT OH All States All states except AK HI IA ID KS MT ND NM AZ CA CO HI ID NM NV OK TX UT WA WY AK AZ CA HI NV All States All States TX Most States All States AL FL GA LA NC SC TN AZ CA NV CT MA MD ME NH NJ NY OH PA RI VT All States MA

Most States

All States All except CA NH NY RI Most States LA NM OK OR TX WA

State availability varies - call us!

All States All States All except AK VT WV FL GA MO TN TX AL FL GA SC TN TX All States AZ CA CO ID NM NV OR UT WA CA All States

AR IA IL IN KS KY MO OK TN

All States

Hotels/Motels coverage category sponsored by: Gorst & Compass Insurance - for more info, check out our ad on page 11 (West).

Market Abram Interstate Insurance Services, Inc. Advanced E&S Group AFC Insurance All Risks, Ltd. Alliant Insurance Services American Union Risk Associates, LLC AmWINS Group, Inc. AmWINS Program Udr, ResortGuard Ins. Program Anderson & Murison, Inc. Appalachian Underwriters Appleby & Sterling Arlington/Roe & Co. Ashley General Agency Aspera Insurance Services, Inc. Atlas General Insurance Services, LLC Berkley Select Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox CITA Insurance Services CID Insurance Programs, Inc. Cochrane & Company Combined Group Crusader Insurance Company Delta General Agency Corp. Distinguished Specialty Elite Underwriters Empire Underwriters Evolution Insurance Brokers Executive Insurance Professionals, PLLC G.J. Sullivan Company Gabor Insurance Services, Inc. Gorst & Compass Insurance Hotels & Resorts Insurance Program – CITA Ins. Services (3, 4 & 5 Star Rated based on Amenities) Indemnity Excess & Surplus Agency International Excess Companies IPC Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies KZ Insurance Brokerage, LLC

States Available CA View website for state info Most States Has Pen, All States All States All States All States All States All States All States AZ CA NV IL IN KY MI MN MO OH TN WI TX CA FL Many States All States All States TX All States All States AZ CA CO ID NE NM NV OR TN TX UT WA ID MT OR WA Most States CA TX All States CA FL GA NY All except monopolistic All States CA GA OK TX CA NV OR WA FL CA All States AZ CA CO ID MT NV OR TX WA All States AZ CA ID NV OR WA All States Most States OH All States All states except AK HI IA ID KS MT ND NM AZ CA CO LA NV TN

March 5, 2018 INSURANCE JOURNAL-NATIONAL REGION | N29

2018 Hospitality Risks Directory Hotels/Motels

Resorts

Market M.J. Hall & Company, Inc. M.J. Kelly Company MacNeill Group Market Finders Insurance Corp. MAXIMUM McClelland and Hine, Inc. McLeckie Insurance Group MexiPass International Insurance Services, LLC Midlands Management Corp. Morstan General Agency, a div of Hull & Co., LLC N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc.

States Available AK AZ CA HI NV AR FL IA LA MO MS NC TN TX FL NC SC TX VA All States All States TX AR AZ CO NC OK TN TX All States Most States All States AL FL GA LA NC SC TN All States AZ CA NV

NIF Group Partners Specialty Group, LLC Patriot National Underwriters, Inc. Philadelphia Insurance Companies Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Promont Insurance Advisors Quaker Special Risk Quirk & Company Regency Insurance Brokerage Services RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. Risk Placement Services, Inc. RMIS Roush Insurance Services, Inc. Sangamon Associates/Hotel Excess SCU - Middletown Seguros Underwriters, LLC Southern Insurance Underwriters, Inc. CMGA SUITELIFE by Venture Insurance Programs TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies Topa Insurance Company U.S. Risk Insurance Group, Inc.

All States All States AR KS LA MS OK TX All States except LA All except CA NH NY RI

UCA General Insurance Services, Inc. UmbrellaPro by Great Point Insurance

All States All States Most States LA NM OK OR TX WA

State availability varies - call us!

CA CT MA ME NH NY RI VT All States All States IL IN OH All States CT MA ME NH NJ RI PA FL GA MO TN TX AL FL GA SC TN All States Most States TX All States CA All States

AZ CA ID IL NV OR UT WA WI All States

ONLINE QUOTE, BIND & ISSUE. Admitted / “A” Rated Paper

Unifax Insurance Systems, Inc. USG Insurance Services, Inc. USX/S Walter General Agency (WGA) Western Special Risks, Inc, a JenCap Holdings Co. Western Surplus Lines Agency, Inc. Wilson Smith Group

AR IA IL IN KS KY MO OK TN

Worldwide Facilities, LLC Zurich Programs

All States Nationwide

CA All States All States

AZ NV LA ND NM OK TX

AZ LA MD MI MS NJ NV NY OK PA TX

N30 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2018

Market Advanced E&S Group All Risks, Ltd. Alliant Insurance Services AmWINS Group, Inc. AmWINS Program Udr, ResortGuard Ins. Program Anderson & Murison, Inc. Appalachian Underwriters Arlington/Roe & Co. Atlas General Insurance Services, LLC Berkley Select Burns & Wilcox CITA Insurance Services Cochrane & Company Delta General Agency Corp. Distinguished Specialty Elite Underwriters Empire Underwriters Entertainment Risk Erickson-Larsen, Inc. Evolution Insurance Brokers Gorst & Compass Insurance Hotels & Resorts Insurance Program – CITA Ins. Services (3, 4 & 5 Star Rated based on Amenities) Izzo Insurance Services, Inc. James River Insurance Company Jimcor Agencies

K & K Insurance Group, Inc.

M.J. Hall & Company, Inc. MAXIMUM MexiPass International Insurance Services, LLC NIF Group Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Philadelphia Insurance Companies Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Promont Insurance Advisors Quirk & Company Risk Placement Services, Inc. SUITELIFE by Venture Insurance Programs Tejas American General Agency The McGowan Companies USG Insurance Services, Inc. Walter General Agency (WGA) Wilson Smith Group

Worldwide Facilities, LLC Zurich Programs

States Available View website for state info Has Pen, All States All States All States All States All States All States IL IN KY MI MN MO OH TN WI Many States All States All States All States ID MT OR WA TX All States CA FL GA NY All except monopolistic AZ CA CO FL GA IL LA MA MD MI NJ NV NY TN TX UT VA MN MT ND NE SD WI WY All States CA All States All States All States All states except AK HI IA ID KS MT ND NM

All States

AK AZ CA HI NV All States All States All States Most States AR KS LA MS OK TX All States except LA All except CA NH NY RI All States All States LA NM OK OR TX WA All States All States TX All States All States

AR IA IL IN KS KY MO OK TN AZ LA MD MI MS NJ NV NY OK PA TX

All States Nationwide

www.insurancejournal.com

2018 Hospitality Risks Directory Restaurants

Restaurants

Restaurants coverage category sponsored by:

Berkley Fine Dining Specialists - for more info, check out our ad on page 2 (East) and page 4 (Midwest). Market Abram Interstate Insurance Services, Inc. Advanced E&S Group AFC Insurance All Risks, Ltd. Alliant Insurance Services American Team Managers Insurance Services AmWINS Group, Inc. Anderson & Murison, Inc. Appalachian Underwriters Appleby & Sterling Arlington/Roe & Co. Ashley General Agency Aspera Insurance Services, Inc. Atlas General Insurance Services, LLC Berkley Fine Dining Specialists Berkley Select Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox CID Insurance Programs, Inc. CITA Insurance Services Combined Group Crusader Insurance Company Delta General Agency Corp. Distinguished Specialty Elite Underwriters Empire Underwriters Entertainment Risk Erickson-Larsen, Inc. Evolution Insurance Brokers Executive Insurance Professionals, PLLC First Choice Insurance Intermediaries, Inc. Founders Insurance Company G.J. Sullivan Company Gabor Insurance Services, Inc. Gorst & Compass Insurance Heritage Specialty Insurance Hotels & Resorts Insurance Program â&#x20AC;&#x201C; CITA Ins. Services (in Hotels & Resorts only) IBI - Insurance Brokers Incorporated Indemnity Excess & Surplus Agency Innovative Coverage Concepts International Excess Companies

www.insurancejournal.com

States Available CA View website for state info Most States Has Pen, All States All States CA All States All States All States AZ CA NV IL IN KY MI MN MO OH TN WI TX CA FL Many States CA CT DC IL MA MD MN MO NJ NV NY PA VA All States All States TX All States AZ CA CO ID NE NM NV OR TN TX UT WA All States Most States CA TX All States CA FL GA NY All except monopolistic AZ CA CO FL GA IL LA MA MD MI NJ NV NY TN TX UT VA MN MT ND NE SD WI WY All States CA GA OK TX Most States AL CO CT FL IA IL IN KS LA MD MI MN MT NC NH NV NY OH OR TN VA WI CA NV OR WA FL CA AR OK TX All States IL IN MI AZ CA CO ID MT NV OR TX WA All States except VT All States

Market IPC (includes Food Delivery) Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies Joseph Krar & Associates KZ Insurance Brokerage, LLC Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. M.J. Kelly Company MacNeill Group Market Finders Insurance Corp. MAXIMUM McClelland and Hine, Inc. McLeckie Insurance Group MexiPass International Insurance Services, LLC Midlands Management Corp. Morstan General Agency, a div of Hull & Co., LLC N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc.

Origin Specialty Underwriters

Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities ProHost USA Promont Insurance Advisors (and Diners) Quaker Special Risk Quirk & Company Regency Insurance Brokerage Services RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. Risk Placement Services, Inc. RMIS RMS Hospitality Group (+ Franchise & Fast Food) Roush Insurance Services, Inc. SCU - Middletown Seguros Underwriters, LLC Southern Insurance Underwriters, Inc. CMGA Specialty Insurance (and Delis)

States Available AZ CA ID NV OR WA All States Most States OH All States All states except AK HI IA ID KS MT ND NM CT MA ME NH RI AZ CA CO LA NV TN AZ CA CO HI ID NM NV OK TX UT WA WY AK AZ CA HI NV AR FL IA LA MO MS NC TN TX FL NC SC TX VA All States All States TX AR AZ CO NC OK TN TX All States Most States All States AL FL GA LA NC SC TN All States AZ CA NV CT MA MD ME NH NJ NY OH PA RI VT All States MA

AL AR DC GA IA IL IN KS KY LA MI MO MS NC NJ OH PA SC TN TX VA Most States AR KS LA MS OK TX All except CA NH NY RI

All States All States except AK All States Most States LA NM OK OR TX WA

State availability varies - call us!

CA CT MA ME NH NY RI VT All States All States All except AK VT WV IL IN OH CT MA ME NH NJ RI PA FL GA MO TN TX AL FL GA SC TN CA CT DE FL GA IL MA MD MI MN MO NC NJ NY OH PA RI SC TN TX

March 5, 2018 INSURANCE JOURNAL-NATIONAL REGION | N31

2018 Hospitality Risks Directory Restaurants Market TAPCO Underwriters, Inc. Target Market Specialists Tejas American General Agency The McGowan Companies Topa Insurance Company U.S. Risk Insurance Group, Inc. UCA General Insurance Services, Inc. UFG Insurance/Specialty Division

UmbrellaPro by Great Point Insurance

Spas States Available Most States All States TX All States CA All States AZ CA ID IL NV OR UT WA WI AZ CA CO ID NM NV OR UT WA

All States

ONLINE QUOTE, BIND & ISSUE. Admitted / “A” Rated Paper

Unifax Insurance Systems, Inc. USASIA Insurance Services USG Insurance Services, Inc. USX/S Walter General Agency (WGA) Western Security Surplus Insurance Brokers LLC Western Special Risks, Inc, a JenCap Holdings Co. Western Surplus Lines Agency, Inc. Wilson Smith Group

Worldwide Facilities, LLC

CA CA NV All States All States

AR IA IL IN KS KY MO OK TN

CA FL GA LA MO NC NJ SC TX VA AZ NV LA ND NM OK TX

AZ LA MD MI MS NJ NV NY OK PA TX

All States

Spas Market Abram Interstate Insurance Services, Inc. All Risks, Ltd. Anderson & Murison, Inc. Appleby & Sterling Arlington/Roe & Co. Ashley General Agency Atlas General Insurance Services, LLC Braishfield Associates, Inc. Burns & Wilcox CID Insurance Programs, Inc. CITA Insurance Services Combined Group

States Available CA Has Pen, All States All States AZ CA NV IL IN KY MI MN MO OH TN WI TX Many States All States All States AZ CA CO ID NE NM NV OR TN TX UT WA All States Most States

N32 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2018

Market Elite Underwriters Evolution Insurance Brokers First Choice Insurance Intermediaries, Inc. G.J. Sullivan Company Gabor Insurance Services, Inc. Gateway Specialty Insurance Gorst & Compass Insurance Hotels & Resorts Insurance Program – CITA Ins. Services (in Hotels & Resorts only) Indemnity Excess & Surplus Agency International Excess Companies Izzo Insurance Services, Inc. James River Insurance Company Jimcor Agencies Joseph Krar & Associates M.J. Hall & Company, Inc. M.J. Kelly Company MexiPass International Insurance Services, LLC NeitClem Wholesale Insurance Brokerage, Inc. NIF Group Pacific Excess Insurance Marketing Philadelphia Insurance Companies Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Professional Program Insurance Brokerage Quirk & Company Regency Insurance Brokerage Services SASSI - Salon & Spa Specialty Insurance Seguros Underwriters, LLC Southern Insurance Underwriters, Inc. CMGA SUITELIFE by Venture Insurance Programs TAPCO Underwriters, Inc. Tejas American General Agency U.S. Risk Insurance Group, Inc. UFG Insurance/Specialty Division USX/S Walter General Agency (WGA) Western Special Risks, Inc, a JenCap Holdings Co. Western Surplus Lines Agency, Inc. Zurich Programs

States Available CA FL GA NY All States Most States CA NV OR WA FL All States CA All States AZ CA CO ID MT NV OR TX WA All States All States All States All states except AK HI IA ID KS MT ND NM CT MA ME NH RI AK AZ CA HI NV AR FL IA LA MO MS NC TN TX All States AZ CA NV All States Most States All States except LA All except CA NH NY RI All States Most States LA NM OK OR TX WA

State availability varies - call us!

Most States FL GA MO TN TX AL FL GA SC TN All States Most States TX All States AZ CA CO ID NM NV OR UT WA All States

AR IA IL IN KS KY MO OK TN

AZ NV LA ND NM OK TX Nationwide

www.insurancejournal.com

2018 Hospitality Risks Directory Special Events

Special Events Special Events coverage category sponsored by: K & K Insurance Group, Inc. - for more info, check out our ad on page 5 (National Section).

Market Abram Interstate Insurance Services, Inc. Advanced E&S Group All Risks, Ltd. Alliant Insurance Services American Specialty Ins. & Risk Services, Inc. AmRisk Insurance Services AmWINS Group, Inc. AmWINS Program Udr, ResortGuard Ins. Program Anderson & Murison, Inc. Appalachian Underwriters Arlington/Roe & Co. Ashley General Agency Aspera Insurance Services, Inc. Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox CID Insurance Programs, Inc. CITA Insurance Services Cochrane & Company Combined Group Delta General Agency Corp. Elite Underwriters Erickson-Larsen, Inc. Evolution Insurance Brokers Executive Insurance Professionals, PLLC First Choice Insurance Intermediaries, Inc. Founders Insurance Company Gabor Insurance Services, Inc. Gateway Specialty Insurance Gorst & Compass Insurance Heritage Specialty Insurance IBI - Insurance Brokers Incorporated Indemnity Excess & Surplus Agency International Excess Companies J.M. Wilson Jacobs & Associates James River Insurance Company Joseph Krar & Associates

K & K Insurance Group, Inc. M.J. Hall & Company, Inc.

States Available CA View website for state info Has Pen, All States All States All States All States All States All States All States All States IL IN KY MI MN MO OH TN WI TX CA FL All States TX All States AZ CA CO ID NE NM NV OR TN TX UT WA All States ID MT OR WA Most States TX CA FL GA NY MN MT ND NE SD WI WY All States CA GA OK TX Most States AL CO CT FL IA IL IN KS LA MD MI MN MT NC NH NV NY OH OR TN VA WI FL All States CA AR OK TX IL IN MI AZ CA CO ID MT NV OR TX WA All States Most States OH All States CT MA ME NH RI

All States

AK AZ CA HI NV

Market Lionheart Insurance Services, Inc. (Large Events) M.J. Kelly Company MacNeill Group Market Finders Insurance Corp. MAXIMUM McClelland and Hine, Inc. McLeckie Insurance Group MexiPass International Insurance Services, LLC Midlands Management Corp. Morstan General Agency, a div of Hull & Co., LLC N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Pacific Excess Insurance Marketing Partners Specialty Group, LLC Philadelphia Insurance Companies Prime Insurance Company Professional Program Insurance Brokerage Quaker Special Risk Quirk & Company Regency Insurance Brokerage Services RIC Insurance General Agency, Inc. Risk Placement Services, Inc. RMIS RMS Hospitality Group Roush Insurance Services, Inc. SCU - Middletown Seguros Underwriters, LLC Southern Insurance Underwriters, Inc. CMGA TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies U.S. Risk Insurance Group, Inc. UFG Insurance/Specialty Division USASIA Insurance Services USG Insurance Services, Inc. USX/S Walter General Agency (WGA) Western Security Surplus Insurance Brokers LLC Western Special Risks, Inc, a JenCap Holdings Co. Western Surplus Lines Agency, Inc. Wilson Smith Group

www.insurancejournal.com

States Available AZ CA CO HI ID NM NV OK TX UT WA WY AR FL IA LA MO MS NC TN TX FL NC SC TX VA All States All States TX AR AZ CO NC OK TN TX All States Most States All States AL FL GA LA NC SC TN All States AZ CA NV CT MA MD ME NH NJ NY OH PA RI VT All States Most States All States All States except LA All except CA NH NY RI Most States Most States LA NM OK OR TX WA

State availability varies - call us!

CA All States All States All except AK VT WV IL IN OH CT MA ME NH NJ RI PA FL GA MO TN TX AL FL GA SC TN Most States TX All States All States AZ CA CO ID NM NV OR UT WA CA NV All States All States

AR IA IL IN KS KY MO OK TN

CA FL GA LA MO NC NJ SC TX VA AZ NV LA ND NM OK TX

AZ LA MD MI MS NJ NV NY OK PA TX

March 5, 2018 INSURANCE JOURNAL-NATIONAL REGION | N33

2018 Hospitality Risks Directory - Alphabetical Directory of Markets Abram Interstate Ins. Services, Inc. 2211 Plaza Dr., Ste. 100, Rocklin, CA 95765 Phone: 916-780-7000, Fax: 916-780-7181 Email: media@abraminterstate.com www.abraminterstate.com

AmWINS Program Underwriters, ResortGuard Ins. Program One New Hampshire Ave., Ste. 200, Portsmouth, NH 03801 Phone: 603-334-3029, Fax: 603-334-3090 Email: Jeffrey.benjamin@amwins.com www.resortguard.com

Braishfield Associates, Inc.

2966 Commerce Park Dr., Ste. 350, Orlando, FL 32819 Phone: 407-825-9911, Fax: 407-825-9737 Email: info@braishfield.com www.braishfield.com

Anderson & Murison, Inc.

Advanced E&S Group

3250 N. 29th Ave., Hollywood, FL 33020 Phone: 954-461-9567, Fax: 855-289-3945 Email: sswanson@advancedesgroup.com www.advancedesgroup.com

AFC Insurance

3101 Emrick Blvd., Ste. 100, Bethlehem, PA 18020 Phone: 877-456-5323 ext. 1838, Fax: 610-974-8574 Email: dina.tristani@afcins.com www.afcins.com

All Risks, Ltd.

10150 York Rd., 5th Fl, Hunt Valley, MD 21030 Phone: 866-234-0955, Fax: 410-828-8179 Email: allrisksij@allrisks.com http://info.allrisks.com/insurance-journal-directory-hospitalityrisks-coverage

Alliant Insurance Services

1301 Dove St., Ste. 200, Newport Beach, CA 92660 Phone: 949-756-0271, Fax: 619-699-0937 Email: marcomm@alliant.com www.alliant.com

American Specialty Insurance & Risk Services 7609 W. Jefferson Blvd., Ste. 100, Fort Wayne, IN 46804 Phone: 260-969-5203, Fax: 260-969-4729 Email: sbatt@amerspec.com for Casinos Email: zachm@amerspec.com for Special Events www.amerspec.com

American Team Managers Insurance Services 1030 N. Armando St., Anaheim, CA 92806 Phone: 714-414-1200, Fax: 714-414-1255 Email: mmartino@atminsurance.com www.atminsurance.com

800 W. Colorado Blvd., Los Angeles, CA 90041 Phone: 323-255-2333, Fax: 323-255-0957 Email: jmccarthy@amqts.com www.andersonmurison.com

Appalachian Underwriters

Brecht &â&#x20AC;&#x2C6;Associates

Appleby & Sterling

Burns & Wilcox - All Offices

800 Oak Ridge Turnpike, Ste. A-1000, Oak Ridge, TN 37830 Phone: 888-376-9633 , Fax: 866-409-3367 Email: marketing@appund.com www.appund.com 2290 Agate Ct., Ste. D, Simi Valley, CA 93065 Phone: 805-583-9828, Fax: 805-583-9832 Email: mike@applebyandsterling.com www.applebyandsterling.com

Arlington/Roe & Co.

AmRisk Insurance Services

P.O. Box 6230, Scottsdale, AZ 85261 Phone: 833-267-4757 Email: mpallante@eventinsurancequote.com www.eventinsurancequote.com

AmWINS Group, Inc.

See Website for Locations - HQ - Charlotte, NC 28210 Phone: 704-973-3489, Fax: 704-943-9000 Email: marketing@amwins.com www.amwins.com

See Website for Locations HQ - Detroit/Farmington Hills Phone: 248-932-9000, Fax: 248-932-9046 Email: quote@burns-wilcox.com www.burnsandwilcox.com

8900 Keystone Crossing, 8th Fl Indianapolis, IN 46240 Phone: 800-878-9891, Fax: 888-552-9891 Email: news@arlingtonroe.com www.arlingtonroe.com

CID Insurance Programs, Inc.

Ashley General Agency

CITA Insurance Services

Aspera Insurance Services, Inc.

Cochrane & Company

Atlas General Insurance Services, LLC

Combined Group

2040 N. Loop 336 W, Ste. 200, Conroe, TX 77304 Phone: 936-441-5959, Fax: 936-521-5922 Email: hnelson@ashleyga.com www.ashleyga.com 2221 Edward Holland Dr., Ste. 600, Richmond, VA 23230 Phone: 804-774-2101, Fax: 804-673-5697 Email: marketing@asperains.com www.asperains.com 4365 Executive Dr., Ste. 400, San Diego, CA 92121 Phone: 877-66-ATLAS, Fax: 619-814-8914 Email: marketing@atlas.us.com www.atlas.us.com

American Union Risk Associates, LLC 1250 E. Hallandale Beach Blvd., Ste. 1003 Hallandale Beach, FL 33009 Phone: 954-362-1520, Fax: 954-362-1527 Email: Thomas.Clementi@aurains.com www.aurains.com

1450 Hughes Rd., Ste. 109, Grapevine, TX 76051 Phone: 817-424-5335, Fax: 817-424-3772 Email: jbrecht@brechtassoc.com www.brechtassoc.com

7125 El Cajon Blvd. Ste 3, San Diego, CA 92115 Phone: 800-922-7283, Fax: 619-593-2008 Email: Teresa@cidinsurance.com www.cidinsurance.com 681 S. Parker St., Orange, CA 92868 Phone: 714-939-7420, Fax: 714-939-7437 Email: hotels@citainsurance.com www.citainsurance.com P.O. Box 19150, Spokane, WA 99219 Phone: 509-838-0655, Fax: 509-838-1710 Email: marketing@cochraneco.com www.cochraneco.com P.O. Box 819045, Dallas, TX 75381-9045 Phone: 214-295-1600, Fax: 800-275-3194 Email: marketing@combinedgroup.com www.combinedgroup.com

Crusader Insurance Company

26050 Mureau Rd., Calabasas, CA 91302 Phone: 800-669-9800, Fax: 818-591-9856 Email: dklayman@crusaderinsurance.com www.crusaderinsurance.com

Berkley Fine Dining Specialists

Delta General Agency Corp.

Berkley Fine Dining Specialists is a division of Berkley Luxury Group. The name is designed to clearly identify the company as an operating unit of Berkley, one of Americaâ&#x20AC;&#x2122;s largest commercial line writers, and what Berkley Fine Dining Specialists offers: tailored, all-inclusive insurance solutions for fine dining restaurants.

Distinguished Specialty

Berkley Select

Elite Underwriters

301 Route 17 North, Ste. 900, Rutherford, NJ 07070 Phone: 201-518-2545 Email: dmerlo@berkleyluxurygroup.com www.berkleyluxurygroup.com

233 S. Wacker Dr., Ste. 3900, Chicago, IL 60606 Phone: 312-800-6200, Fax: 312-207-1839 Email: info@berkleyselect.com www.monitorliability.com

N34 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2018

P.O. Box 2045, Houston, TX 77252 Phone: 713-570-2700, Fax: 713-570-2800 Email: billf@deltains.com www.deltains.com 11245 SE 6th St., Ste. 100, Bellevue, WA 98004 Phone: 425-213-5130, Fax: 212-297-3130 Email: thughes@distinguished.com www.distinguished.com 395 Alhambra Cir., Coral Gables, FL 33134 Phone: 786-999-1350, Fax: 786-522-9046 Email: info@eliteunderwriters.com www.eliteunderwriters.com

www.insurancejournal.com

2018 Hospitality Risks Directory - Alphabetical Directory of Markets Empire Underwriters

12300 Race Track Rd., Tampa, FL 33626 Phone: 813-448-9300, Fax: 813-448-9310 Email: quotes@empireunderwriters.com www.empireunderwriters.com

Gorst & Compass Insurance

J.M. Wilson

9310 Topanga Canyon Blvd., Chatsworth, CA 91311 Phone: 818-507-0900, Fax: 818-507-1133 Email: mail@gorstcompass.com www.gorstcompass.com

8036 Moorsbridge Rd., Portage, MI 49024 Phone: 800-282-8113, Fax: 269-327-2620 Email: cbaldwin@jmwilson.com www.jmwilson.com

Entertainment Risk

Jacobs & Associates

11350 McCormick Rd., Ste. 1002, Hunt Valley, MD 21031 Phone: 844-368-7475 Email: info@entertainmentrisk.com www.entertainmentrisk.com

Erickson-Larsen, Inc.

6425 Sycamore Ct. N, Maple Grove, MN 55369 Phone: 763-535-0055 Email: pbloch@ericksonlarseninc.com www.ericksonlarseninc.com

Evolution Insurance Brokers 8722 S. Harrison St., Salt Lake City, UT 84070

Phone: 877-678-7342, Fax: 877-678-7342 Email: quotes@eibdirect.com www.eibdirect.com

Executive Insurance Professionals, PLLC 6001 W. Interstate 20, Ste. 214, Arlington, TX 76017 Phone: 800-779-4095, Fax: 866-779-4331 Email: cheryl@execins.com www.execins.com

First Choice Insurance Intermediaries, Inc. 814 A1A North, Ste. 206, Ponte Vedra Beach, FL 60173 Phone: 866-821-9572, Fax: 904-543-4501 Email: info@firstchoiceii.com www.firstchoiceii.com

12782 Prospect Rd., Strongsville, OH 44149 Phone: 440-625-2690, Fax: 440-625-2731 Email: jim@jacobsnow.com www.jacobsnow.com

Great Point Insurance

500 W. Putnam Ave., Ste. 400, Greenwich, CT 06831 Phone: 203-763-4953, Fax: 732-761-9905 Email: roneill@greatpointins.com www.UmbrellaPro.com

UmbrellaPro® is the fastest and most user friendly online platform for insurance professionals to submit, quote, bind, and issue Umbrella coverage in 6 EXCLUSIVE COMMERCIAL UMBRELLA PROGRAMS. Brought to you by Great Point Insurance, the nation’s leading Umbrella Program Administrator, UmbrellaPro puts you in control from start to finish.

Heritage Specialty Insurance

609 Cheek Sparger Rd., Stes. 110-114, Colleyville, TX 76034 Phone: 866-544-1900, Fax: 866-832-0984 Email: submissions@heritagespecialty.com www.heritagespecialty.com

Hotels & Resorts Insurance Program – CITA Insurance Services 681 S. Parker St., Ste. 300, Orange, CA 92868 Phone: 714-939-7420, Fax: 714-939-7437 Email: sbaxter@citainsurance.com www.citainsurance.com

James River Insurance Company 6641 W. Broad St., Ste. 300, Richmond, VA 23230 Phone: 804-289-2700, Fax: 804-549-5087 Email: info@jamesriverins.com www.jamesriverins.com

Jimcor Agencies

60 Craig Rd., Montvale, NJ 07645 Phone: 201-573-8200, Fax: 201-573-8820 Email: marketing@jimcor.com www.jimcor.com

Joseph Krar & Associates, Inc.

1676 West St., Southington, CT 06489 Phone: 860-628-3967, Fax: 860-628-3967 Email: submissions@jkrar.com www.jkrar.com

IBI - Insurance Brokers Incorporated

Founders Insurance Company 1111 E. Touhy Ave., Des Plaines, IL 60018 Contact: Pat Vaulman Phone: 800-768-0040 ext 2562, Fax: 847-296-3362 Email: pvaulman@foundersinsurance.com www.foundersinsurance.com

Founders is a multi-state specialty carrier, serving the insurance needs of independent agents for over 100 years. Founders specializes in writing Liquor Liability and Special Events (liquor & GL*) coverages for the hospitality industry. Founders is rated “A-” or “Excellent” by A.M. Best, and is a member of the Utica National Insurance Group. * (excludes AL, FL)

G.J. Sullivan Company

2400 E. Katella Ave., Ste. 500, Anaheim, CA 92806 Phone: 714-221-9500, Fax: 714-876-2252 Email: MeskoD@gjs.com www.gjsullivan.com

Gabor Insurance Services, Inc.

7270 NW 12 St., Ste. 700, Miami, FL 33126 Phone: 786-924-7055, Fax: 786-924-7065 Email: Mgabor@gaborinsurance.com www.gaborinsurance.com

Gateway Specialty Insurance

1170 Devon Park Dr., Wayne, PA 19087 Phone: 877-977-4474, Fax: 610-254-1855 Email: info@gatewayspecialty.com www.gatewayspecialty.com www.insurancejournal.com

400 Camby Ct., Greenwood, IN 46142 Phone: 800-536-4783, Fax: 317-885-7011 Email: bcollins@goibi.com www.goibi.com

K & K Insurance Group, Inc.

Indemnity Excess & Surplus Agency

1712 Magnavox Way, Ft. Wayne, IN 46804 Special Events Ph: 800-553-8368, Fx: 260-459-56243 Resorts Ph: 877-355-0315, Fx: 260-459-5990 Email: kk.general@kandkinsurance.com www.kandkinsurance.com

Innovative Coverage Concepts

With over 60 years of experience, K&K is a leading provider of specialty coverage for the sports, leisure, recreation, entertainment and motorsports industries. Over 5,000 agents across the U.S. choose K&K for competitive rates and admitted coverage—visit kandkinsurance.com for applications and underwriting guidelines.

1915 NE Stucki Ave., Ste. 450, Hillsboro, OR 97006 Phone: 503-526-9700, Fax: 503-626-2260 Email: submissions@ies-xs.com www.ies-xs.com 8 Wood Hollow Rd., Parsippany, NJ 07054 Phone: 877-615-5488 Email: robertc@innocov.com www.innocov.com

International Excess Companies

3700 Park East Dr., Ste. 250, Beachwood, OH 44122 Phone: 216-797-9700, Fax: 216-797-9970 Email: kennethkukral@intlxs.com www.intlxs.com

Lionheart Insurance Services, Inc. 2742 Kingclaven Dr., Henderson, NV 89044 Phone: 702-834-8140 Fax: 702-834-8140 Email: lionheartins@msn.com

IPC

P.O. Box 1150, Gardnerville, NV 89410 Phone: 775-782-6655, Fax: 775-782-6654 Email: tammy@ipc-nv.com www.ipc-nv.com

Izzo Insurance Services, Inc.

150 S. Bloomingdale Rd., Bloomingdale, IL 60108 Phone: 800-800-1704, Fax: 630-582-2803 Email: MJones@IzzoInsurance.com www.IzzoInsurance.com

M.J. Hall & Company, Inc. P.O. Box 192, Stockton, CA 95201 Phone: 209-948-8108, Fax: 209-465-3843 Email: staceys@mjhallandcompany.com www.mjhallandcompany.com

March 5, 2018 INSURANCE JOURNAL-NATIONAL REGION | N35

2018 Hospitality Risks Directory - Alphabetical Directory of Markets M.J. Kelly Company

4415 E. Sunshine, Springfield, MO 65809 Phone: 800-725-7211, Fax: 800-678-7211 Email: khampton@mjkelly.com www.mjkelly.com

MacNeill Group

P.O. Box 45-9003, Sunrise, FL 33345-9003 Phone: 954-331-4800 ext. 2031, Fax: 954-331-4848 Email: mgmarketing@macneillgroup.com www.macneillgroup.com

Market Finders Insurance Corp P.O. Box 6549, Louisville, KY 40206 Phone: 800-626-5660, Fax: 502-426-7970 Email: sdavis@mfic.com www.mfic.com

NeitClem Wholesale Insurance Brokerage, Inc. 7442 N. Figueroa St., Los Angeles, CA 90041 Phone: 323-258-2600, Fax: 323-258-2676 Email: jcenteno@neitclem.com www.neitclem.com

New England Excess Exchange, Ltd. P.O. Box 650, Barre, VT 05641 Phone: 800-548-4301, Fax: 800-347-4935 Email: achase@neee.com www.neee.com

NIF Group

30 Park Ave., Manhasset, NY 11030 Phone: 516-365-7440, Fax: 516-365-7392 Email: marketing@nifgroup.com www.nifgroup.com

Number One Insurance Agency, Inc. 91 Cedar St., Milford, MA 01757 Phone: 508-634-2902, Fax: 508-634-2930 Email: atobin@massagent.com www.massagent.com

MAXIMUM

222 S. Riverside Plaza, Ste. 2340, Chicago, IL 60606 Phone: 312-559-9348, Fax: 312-559-0930 Email: joem@maxib.com www.maxib.com

McClelland and Hine, Inc.

P.O. Box 700930, San Antonio, TX 78270 Phone: 800-333-2017, Fax: 210-366-2407 Email: deniser@mhi-mga.com www.mhi-mga.com

MexiPass International Insurance Services, LLC P.O. Box 60727, Pasadena, CA 91116 Phone: 800-639-4727, Fax: 800-639-4727 Email: jorge@mexipass.com www.mexipass.com

Midlands Management Corp.

3817 NW Expy, Ste. 1000, Oklahoma City, OK 73112 Phone: 800-800-4007, Fax: 800-800-4007 Email: marketing@midman.com www.midlandsmgt.com

Morstan General Agency of Florida II, Inc. 1835 Banks Rd., Margate, FL 33063 Phone: 800-261-5177, Fax: 516-302-8951 Email: pwoodard@morstan.com www.morstan.com

N-Surance Outlets, Inc.

Origin Specialty Underwriters

1701 Golf Rd., Ste. 3-615, Rolling Meadows, IL 60008 Phone: 847-278-0506 Email: ddjordjevic@origin-specialty.com www.origin-specialty.com

7233 E. Butherus Dr., Scottsdale, AZ 85260 Phone: 480-951-0905, Fax: 480-951-9730 Email: tpytel@nautilus-ins.com www.nautilusinsgroup.com

Professional Liability Insurance Svcs, Inc. - Underwriting Facilities 5802 Thunderbird, Ste. 100, Lago Vista, TX 78645 Phone: 800-761-7547, Fax: 512-327-5834 Email: underwriting@plisinc.com www.plisinc.com

Professional Program Insurance Brokerage 371 Bel Marin Keys Blvd., Novato, CA 94949 Phone: 415-475-4300, Fax: 415-475-4303 Email: info@ppibcorp.com www.ppibcorp.com

ProHost USA

4500 Park Glen Rd., Ste. 410, Minneapolis, MN 55416 Phone: 952-922-2404, Fax: 952-925-0631 Email: info@prohostusa.com www.prohostusa.com 1 E. Wacker Dr., Ste. 1920, Chicago, IL 60601 Phone: 312-262-3334, Fax: 312-262-3301 Email: zelbert@promontadvisors.com www.promontadvisors.com

Quaker Special Risk

See Website for Locations in NJ, NY, FL, MA Headquarters - Eatontown, NJ 07724 Phone: 800-447-4180, Fax: 732-223-9072 Email: creid@qsr-insurance.com www.quakerspecialrisk.com

Quirk & Company

Pacific Excess Insurance Marketing 6363 Katella Ave., Cypress, CA 90630 Phone: 800-222-5582, Fax: 714-228-7838 Email: marketing@pacificexcess.com www.pacificexcess.com

P.O. Box 792030, San Antonio, TX 78279 Phone: 800-299-9421, Fax: 210-340-4075 Email: lvazquez@quirkco.com www.quirkco.com

Regency Insurance Brokerage Services

Pacific Excess Insurance Marketing is a Wholesaler/General Agent with access to many Standard, Surplus Lines and Workers’ Compensation Markets in 19 states.

P.O. Box 190, Hallandale Beach, FL 33008-0190 Phone: 800-982-1895, Fax: 954-454-5862 Email: Submissions@RegencyBrokerage.com www.RegencyInsuranceBrokerage.com

Partners Specialty Group, LLC

RIC Insurance General Agency, Inc.

100 Tournament Dr., Ste. 214, Horsham PA 19044 Phone: 484-322-0400, Fax: 484-322-0401 Email: mcaviston@psgins.com www.www.psgins.com

Patriot National Underwriters, Inc. P.O. Box 803143, Dallas, TX 75380 Phone: 972-239-1458, Fax: 972-233-3487 Email: corky.ellis@patriotnational.com www.patriotnational.com

1792 Woodstock Rd., Bldg. 200, Roswell, GA 30075 Phone: 770-971-9975, Fax: 770-971-7608 Email: jmurrey@nsoins.com www.nsoins.com

Nautilus Insurance Co. & Great Divide Ins. Co.

303 W. Madison St., Ste. 2075, Chicago, IL 60606 Phone: 800-257-5590, Fax: 877-452-6910 Email: RJL@primeis.com www.primeis.com

Promont Insurance Advisors

McLeckie Insurance Group

P.O. Box 770, Naples, TX 75568 Phone: 903-897-9090, Fax: 760-462-1696 Email: bill@mcleckie.com www.mcleckie.com

Prime Insurance Company

1330 N. Dutton Avenue., Ste. 200, Santa Rosa, CA 95401 Phone: 888-693-7892, Fax: 866-577-7595 Email: ricins@ric-ins.com www.ric-ins.com

RISCO Insurance Brokerage, Inc.

60 Catamore Blvd., East Providence, RI 02914 Phone: 401-435-5400 Email: info@risco-inc.com www.risco-inc.com

Risk Placement Services, Inc.

50+ Locations, Headquarters - Itasca, IL 60143-3141 Phone: 866-595-8413 Email: Contact_Us@RPSins.com www.rpsins.com

Philadelphia Insurance Companies One Bala Plaza, Bala Cynwyd, PA 19004 Phone: 800-873-4552, Fax: 610-617-7940 Email: phlysales@phlyins.com www.phly.com

N36 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2018

RMIS

P.O. Box 87023, Yorba Linda, CA 92887 Phone: 714-738-1383, Fax: 714-921-1160 Email: bbailey@rmismga.com www.RMISmga.com

www.insurancejournal.com

2018 Hospitality Risks Directory - Alphabetical Directory of Markets Tejas American General Agency

RMS Hospitality Group

Unifax Insurance Systems, Inc.

1620 La Jaita Dr., Ste. 300, Cedar Park, TX 78613 Phone: 512-346-0030, Fax: 512-342-2803 Email: submissions@taga1.com www.taga1.com

26050 Mureau Rd., Calabasas, CA 91302 Phone: 800-669-9800, Fax: 818-591-9856 Email: dklayman@crusaderinsurance.com www.crusaderinsurance.com

USASIA Insurance Services

100 Ring Rd. West, Ste. 202, Garden City, NY 11530 Phone: 516-742-8585 ext. 204, Fax: 516-742-5678 Email: info@rmshg.com www.rmshg.com

RMS HG presents an exclusive insurance program for your Hospitality Industry clientele with “A” rated carriers. A platform like no other in the Hospitality Industry, RMS HG provides a solution to the insurance agent/broker community for hospitality risks with a program that offers comprehensive and flexible coverage forms at competitive premiums.

Roush Insurance Services, Inc. P.O. Box 1060, Noblesville, IN 46061 Phone: 800-752-8402, Fax: 317-776-6891 Email: info@roushins.com www.roushins.com

Sangamon Associates/Hotel Excess

65 S. Main St., Ste. AC-200, Pennington, NJ 08534 Phone: 609-818-9534, Fax: 609-818-9535 Email: bcleave@sangamonassociates.com www.hotelexcess.com

SASSI - Salon & Spa Specialty Insurance 21 Maple Ave., Bay Shore, NY 11706 Phone: 888-823-9380, Fax: 631-666-7646 Email: info@brownyard.com www.sassiagency.com

319 Union Ave., Pomona, CA 91768 Phone: 909-618-0288, Fax: 909-618-0289 Email: shirley@usasia-ins.com www.usasia-ins.com

USG Insurance Services, Inc.

The McGowan Companies

1000 Town Center Wy, Ste. 300, Canonsburg, PA 15317 Phone: 800-886-3897, Fax: 724-265-5751 Email: jkessel@usgins.com www.usgins.com

Old Forge Ctr, 20595 Lorain Rd. Fairview Park, OH 44126 Phone: 440-333-6300, Fax: 440-333-3214 Email: syoung@mcgowaninsurance.com www.mcgowaninsurance.com

USX/S

6929 W. 130th St., Ste. 100, Cleveland, OH 44130 Phone: 440-888-7300, Fax: 440-888-7380 Email: brokers@usxs.net www.USXS.net

Topa Insurance Company

24025 Park Sorrento, Ste. 300, Calabasas, CA 91302 Phone: 818-466-5900 Email: topa-marketing@topa-ins.com www.topa-ins.com

Walter General Agency (WGA)

273 Clarkson Rd., Ste. 102, Ellisville, MO 63011 Phone: 636-391-4841, Fax: 636-391-2115 Email: newquotes@wgamo.com www.wgamo.com

U.S. Risk Insurance Group, Inc.

8401 N. Central Expressway, Ste. 1000, Dallas, TX 75225 Phone: 800-232-5830, Fax: 214-647-5035 Email: shannon.davis@usrisk.com www.usrisk.com

Western Security Surplus Insurance Brokers, Inc. 5800 Granite Pkwy, Ste. 300, Plano, TX 75024 Phone: 972-702-0500, Fax: 972-702-0504 Email: kstevens@wssib.com www.wssib.com

SCU - Middletown

421 Wadsworth St., Middletown, CT 06457 Phone: 860-347-9600, Fax: 860-347-9611 Email: Ctapps@scui.com www.scui.com/offices/middletown/

Seguros Underwriters, LLC

800 Oak Ridge Turnpike, Ste A-1000, Oak Ridge, TN 37830 Phone: 888-981-1701, Fax: 877-834-3882 Email: marketing@segurosuw.com www.segurosuw.com

Southern Insurance Underwriters, Inc. CMGA 4500 Mansell Rd., Alpharetta, GA 30022 Phone: 800-568-1700, Fax: 678-498-4610 Email: marketing@siuins.com www.siuins.com

Specialty Insurance

UCA General Insurance Services, Inc. 6363 Katella Ave., Cypress, CA 90630 Phone: 800-222-5582, Fax: 714-228-7855 Email: marketing@ucageneral.com www.ucageneral.com

UCA General Insurance is a Managing General Agent writing Program Business in 9 states. Our primary focus is on Property & Casualty Business, specializing in Restaurants, Hotels & Motels, Condos & HOAs, Shopping Centers and more.

UFG Insurance/Specialty Division

1301 Wrights Lane East, West Chester, PA 19380 Phone: 800-282-6247 ext. 276, Fax: 610-692-5977 Email: marketing@suitelifeins.com www.suitelifeins.com

TAPCO Underwriters, Inc.

3060 S. Church St., Burlington, NC 27216 Phone: 800-334-5579, Fax: 336-584-8880 Email: kallred@gotapco.com www.gotapco.com

www.insurancejournal.com

9059 W. Lake Pleasant Pkwy, Ste. 340, Peoria, AZ 85382 Phone: 888-317-5575, Fax: 623-977-4622 Email: rwilliams@westernspecialrisks.com www.westernspecialrisks.com

Western Surplus Lines Agency, LLC P.O. Box 6609, Abilene, TX 79608 Phone: 800-592-4408, Fax: 325-695-0371 Email: fpeck@westernsurplus.com www.westernsruplus.com

Wilson Smith Group

725 S. Figueroa St., Ste. 1870, Los Angeles, CA 90017 Phone: 213-634-6421 Email: gbohan@unitedfiregroup.com www.ufginsurance.com

1001 S. Dairy Ashford, Ste. 110, Houston, TX 77077 Phone: 713-808-9770, Fax: 713-808-9717 Email: info@wilsonsmithgroup.com www.wilsonsmithgroup.com

1610 Route 88 Ste. 102, Brick, NJ 08724 Phone: 732-701-8900, Fax: 732-458-3728 Email: mwatters@specialtyagency.com www.specialtyagency.com

SUITELIFE by Venture Insurance Programs

Western Special Risks, Inc., a JenCap Holdings Company

Worldwide Facilities, LLC

See Website for Locations Headquarters - Los Angeles, CA 90017 Phone: 213-236-4500, Fax: 213-244-9655 Email: info@wwfi.com www.wwfi.com

UmbrellaPro by Great Point Insurance

Zurich Programs

13810 FNB Pkwy, Omaha, NE 68154 Phone: 866-873-0782 Email: usz.zpm@zurichna.com www.zprogramsmatch.com

500 W. Putnam Ave., Ste. 400, Greenwich, CT 06831 Phone: 203-763-4953, Fax: 732-761-9905 Email: roneill@greatpointins.com www.UmbrellaPro.com

NATIONAL | News & Markets

SMEs Underestimate Cyber Risks Which Could Prove ‘Fatal’: Allianz Report By L.S. Howard

mall- and medium-sized enterprises are waking up to the realities of cyber risks but still underestimate their exposures, according to a report published by Allianz Global Corporate & Specialty (AGCS). For medium-sized companies with annual revenues between €250 million ($308.9 million) and €500 million ($617.8

million), cyber incidents rank as the top risk for the first time (39 percent of responses), while for small-sized companies with annual revenues less than €250 million, it ranks as the second major business risk (30 percent of responses), said the seventh annual Allianz Risk Barometer 2018, which surveys global risk experts to discover what risks keep them awake at night. See tables below to view the report’s top

five risks for small enterprise companies and mid-sized companies. The report surveyed 1,911 respondents in 80 countries, including Allianz’ customers, brokers, risk consultants, underwriters, senior managers and claims experts. (See related article published on Feb. 5). Allianz noted that SME business experts collectively account for almost half of the Risk Barometer’s responses, or 47 percent. “The jump that cyber incidents have taken in the past year – from third to first for medium-sized companies and from sixth to second for small-sized companies – is significant and reflects an uptick in the attention paid to data breaches both by SME companies and their insurance brokers,” said Vinko Markovina, global head of MidCorp, AGCS, who was quoted in the report. “Awareness is growing, as the Risk Barometer results show, but many SMEs still underestimate their exposure and are not prepared for, or are able to respond to, an incident. This can be a fatal mistake,” he added.

Business interruption ranks as the top risk for small enterprises and as the second most important peril for medium-sized companies.

Source: Allianz Global Corporate & Specialty figures represent how often a risk was selected as a percentage of all responses for that company size. Responses equaled 603; figures don’t add up to 100% as up to 3 risks could be selected. 38 | INSURANCE JOURNAL | NATIONAL MARCH 5, 2018

The impact of cyber attacks “can be catastrophic,” the report affirmed, noting that the average cost of a data breach for SMEs in North America was $117,000, according to a study from Kaspersky Lab. A separate study from Ponemon Institute, titled “State of Cybersecurity in Small and Medium-Sized Businesses,” revealed that hackers have breached over 50 percent of small businesses, with these numbers continuing to increase. Fighting back against cyber threats poses a different set of challenges compared with larger companies, warned the report. SMEs can be vulnerable as many do not have enough revenue to afford their own IT departments, employ a chief information security officer (CISO) or access the knowledge and resources to protect themINSURANCEJOURNAL.COM

selves against evolving cyber threats, AGCS

continued. However, there are solutions available for SMEs, including one offered by AGCS. AGCS said it has partnered with SiliconValley based software company Zeguro

INSURANCEJOURNAL.COM

to implement a “virtual CISO” platform as part of its insurance coverage. The platform enables SMEs to access tailored security recommendations and training for employees, AGCS said. “Cyber insurance used to be a confusing and relatively expensive cover for SMEsized businesses. However, as coverage has become more available, affordable and easier to understand, we are seeing more demand,” says Markovina. “Activity around cyber will only accelerate in the SME space through 2018.” SMEs also weighed in about their concerns over business interruption (BI) risks. BI ranks as the top risk for small enterprises (33 percent of responses), up from second place (27 percent) in last year’s report. BI was listed as the second most important peril for medium-sized compa-

nies, although this has been displaced by cyber incidents as the most important risk in 2018. “It’s no surprise that BI ranks prominently in the SME risk rankings, as threats are multiplying and the consequences cannot be underestimated,” said Markovina, explaining that supply chain disruption is just one element of BI risk that can affect SMEs. “Maintaining sufficient on-hand inventory levels, avoiding geographic concentrations of suppliers, monitoring mergers and acquisitions among suppliers and avoiding production specialization that leads to outsourcing can all be crucial mitigation strategies in event of an interruption." According to the wider conclusions of the survey’s 1,911 respondents, BI and cyber incidents interlink as the major threat facing companies. (An article on this aspect of the report was published on Feb. 5 on InsuranceJournal.com)

MARCH 5, 2018 INSURANCE JOURNAL | NATIONAL | 39

Idea Exchange

The Competitive Advantage

The Death of Underwriting and Underwriters

By Chris Burand

ness, is dead in this underwriting world. All that is missing is getting enough people to take these tests, and then they buy or forgo buying life insurance. Disability and long-term care (LTC) are close second and third lines likely affected. If the odds of disease impairing one’s ability to make a living are high, one should buy disability and LTC. Otherwise, maybe an accident policy is a better investment. On the other hand, at least one life company is offering life insurance based

on an algorithm that uses downloads of patient medical data. The data is used to determine who should get offers. What are the odds that those unfortunate people are likely to die too early to get offers? Prospects offered low rates probably do not really need life insurance, at least not term. Those offered high rates probably need a policy soon, but may not be able to afford one.

nderwriting is not dying. It is just being automated into digital algorithms versus analog human

beings. Technology’s effect on life insurance underwriting is easiest to show by example. It is also further advanced in many ways. For example, what if consumers could take a test (which they can) that shows their probability of dying by age X? Or having results that showed the probability by which their odds of dying by age X were better or worse than average? More specifically, let’s assume the odds of a 25-year-old dying by age 60 is 5 percent. Person A’s test shows their odds are 15 percent or 300 percent higher than normal. This makes buying life insurance for person A, a much better investment. Alternatively, person B’s odds are 1 percent. This makes life insurance a much worse investment. If enough “As” take the test and buy life insurance while enough “Bs” take the test and forgo life insurance, and life insurance companies do not know the test results, then sometime in the next 30 years, some life insurance companies will likely incur financial stability issues, even insolvencies. This is because they will be adversely selected against by well-informed insureds. The law of large numbers, which includes an important element of random40 | INSURANCE JOURNAL | NATIONAL MARCH 5, 2018

INSURANCEJOURNAL.COM

Insurance Is Not Insurance

The randomness essential to insurance operating well, affordably, and as a social good, is being quietly diminished. Without randomness, insurance is not insurance. Instead, people are purchasing options, puts and calls. The only difference between stock puts and calls is who has the best data (company or client) and the best predictive model. Insurance commissioners will have much to consider regarding where these lines are drawn. With property/casualty, consumers generally cannot take tests that give them an advantage over companies because auto, home, workers’ compensation, surety, and general liability, to name some major coverages, are mandatory purchases. But companies do have tools to specifically underwrite and rate risks that go far beyond credit scoring.

When a 250-year-old industry is changing this fundamentally, adaptation will be challenging Definitive tests exist to determine a person’s tendency toward risk, risky behavior, and even ethics/crime. If I am insuring a large fleet and mandate drivers take such a test (I do not know the practicality of this, it is just a hypothetical), my pricing algo-C rithm will be far more accurate (assumingM the program is solid). The company has Y significantly minimized risk and the more CM risk is minimized, the less important insurance becomes. Companies not using the MY tests will be adversely selected against and CY will go out of business. CMY The ones using the tests will write such perfect accounts they will barely be able K to charge enough to cover expenses unless the insureds do not know they are pristine risks. At that point, actuarial pricing is not being used, which is an issue in and of itself from a regulatory perspective. Insurance by the law of large numbers created a more level field for society. The normal curve, known as the bell curve, plays such an important role whereby only those on the far extremes (the tails) do not

have insurance — either horrible accounts that cannot get insurance or perfect accounts that do not need insurance. About 97 percent of accounts are in the middle. The change that is happening or may happen, depending on regulators, is a hollowing out of the middle. So rather than being a bell curve, it may look more like an “M.” In commercial lines, another example involves captives and alternative risk management organizations. I understand that 52 percent of all commercial premiums are already being written in these entities. Another example is where a device becomes so safe that insurance is not necessary. Mercedes and Volvo have determined their driverless cars are so safe they do not need product liability coverage. On the other end of the spectrum, if insurance becomes too unaffordable for a A&M helps 1 1/5/16 12:36 large percentage of BIG.pdf drivers, then those that can afford auto insurance will likely need

Fundamental Changes

When a 250-year-old industry is changing this fundamentally, adaptation will be challenging. I see and hear people talking about the future of insurance all the time. Insurance will change, and it may change so much that it ceases to be insurance. If you are an agent, what will you then sell? If you are an insurance company, will you exist, and if so, what will you be Share this article with a colselling?

league. IJMAG.COM/35UN Burand is the founder and owner of Burand & AssociPM LLC based in Pueblo, Colo. Phone: 719-485-3868. ates E-mail: chris@burand-associates.com.

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to purchase more uninsured motorist coverage, and uninsured motorist premiums will likely cost more. The industry is moving towards extremes.

2/21/18 10:36 AM

MARCH 5, 2018 INSURANCE JOURNAL | NATIONAL | 41

NATIONAL | MyNewMarkets authority and highly competitive markets available. Available limits: Minimum $1 million, maximum $2 million Carrier: Various, non-admitted States: All states except Alaska and Fla. Contact: Commercial Underwriting at 800-234-6977, ext. 220 or e-mail: commercial@amqts.com

Short Haul Trucking

Insurance Broker / Large Retail Agent Errors & Omissions

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Brokerage (www.rockwoodbrokerage.com) serves as the exclusive national administrator of an errors & omissions (E&O) product designed to address the unique professional liability exposures faced by insurance agents and brokers generating gross written premiums of $2 million or more. Program highlights include: broad definition of professional services; includes notary, premium financing, and risk management/loss control activities; B+/government guaranteed insolvency exclusion; automatic coverage for independent contractors; punitive damages covered where allowable by law. Additional coverages included and outside of the policy limit. Wholesaler, MGA, and program administrators considered. Available limits: Minimum $1 million, maximum $5 million Carrier: Western World Insurance Group States: All states Contact: Mark Lann at 786404-4444 or e-mail: mark. lann@rockwoodinsurance.com

Auto - Mexico

Market Detail: American

Border Insurance Services, Inc.’s (www.abis-group.com) cruceSeguro coverage offers auto liability coverage for Mexican registered vehicles crossing the border into the USA. Policy includes roadside assistance. Available limits: Minimum $15,000, maximum $300,000 Carrier: CHARTIS Seguros Mexico States: Ariz., Calif., N.M., and Texas Contact: Customer service at 800-554-2247

Difference in Conditions (DIC)

Market Detail: Southwest Risk, LP (www.swrisk.com) can provide various coverages including ground-up flood, excess flood, Cal quake, New Madrid quake, stand alone wind/ hail/hurricane or even stand alone excess debris removal. DIC placements in critical or non-critical zones are like a jigsaw puzzle and rarely will any one carrier provide a large limit ground up. Southwest Risk can help piece that puzzle together and provide the terms the insured needs.

42 | INSURANCE JOURNAL | NATIONAL MARCH 5, 2018

Available limits: As needed Carrier: Unable to disclose States: All states Contact: Customer service at

214-206-4900

Medi-Spas

Market Detail: Arlington/Roe & Co. (www.arlingtonroe.com) offers coverage for medi-spa facilities specializing in laser hair removal, botox and microderm abrasion. Call to inquire on specific state information. Available limits: Minimum $1 million, maximum $3 million Carrier: Unable to disclose, non-admitted States: Ill., Ind., Ky., Mich., Ohio, and Tenn. Contact: Jim Eades at 800878-9891, ext. 8626 or e-mail: jreades@arlingtonroe.com

A&M Commercial Contractors Market

Market Detail: Anderson & Murison, Inc. (www.andersonmurison.com) offers coverage for most commercial contractors including apartments, artisan contractors, contractors equipment rental, roofing, sprinkler/fire protection systems, and structural steel. Many more classes listed online. In-house binding

Market Detail: Insurance Marketing Corporation of Oregon (IMCO) (www.imcoinsurance.com) has binding and quoting authority with a number of “A+ Rated” admitted and non-admitted carriers, including Lloyd’s. All policies and e ndorsements are issued in-house, including cancellations and reinstatements. All claims are reported direct to the office and then assigned to either company or independent adjusters for service. Wholesale insurance products include: motor truck cargo up to $1 million; physical damage; commercial auto liability; general liability; business auto; non-trucking liability; and miscellaneous equipment. Available limits: As needed Carrier: Unable to disclose States: Calif., Ore., and Wash. Contact: Customer service at 800-944-3128

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Idea Exchange

The Wedge

Overcoming Fear in 18 Minutes or Less me. But your skepticism could be costing you millions.

Prospecting: The First Step

By Randy Schwantz

ear is the No. 1 killer of sales performance. There are a lot of salespeople that avoid making cold calls because of fear. They avoid asking clients for introductions. They avoid setting meaningful and powerful goals. They avoid asking their prospects difficult questions. As a result, they grossly underperform in relationship to their perceived talent, and that underperformance is expensive.

Do the Math on Fear

Compare a high performer to an average performer over a 10-year period. An average performer might grow a book of business in the range of $300,000 annualized revenue. A high performer would grow a book of business in the range of $600,000 to $1 million in revenue. Over a 10-year period, that’s $3 million to $6 million in revenue in the door. Multiply that times two, three or four average producers and you’ve got a high 10-figure problem, anywhere from $12 million to $24 million in very real dollars. If you operate at a 20 percent margin, that’s $2.5 million to $5 million in lost bottom line profits to your agency, and that’s just for a typical agency with only six to 10 producers. There is no doubt that your “skeptic” meter is pegging out as you read this, maybe even causing you to want to call B.S. on

Yesterday, I had an afternoon session with five newer producers: three were male, two were female and all were in the 22- to 26-year-old age range. I started our session by asking a few basic questions: • “How long have you been doing this job?” • “What kind of progress have you made?” • “Suppose it’s a year from now and we are meeting. You’re telling me things are great. What would have had to happen for you to tell me that?” They were open, vulnerable and spoke from their hearts. After that, I asked: “What’s your biggest challenge to accomplishing that one-year vision?” They answered with things like: • “I have to prospect more.” • “I have to get on the phone more.” • “I need to work the relationships I have for introductions.” • • •

I followed up with: “Why aren’t you prospecting more?” “Why aren’t you on the phone more?” “Why aren’t you working your relationships for introductions?”

That’s when they responded with the big sales killer: “I’m kind of afraid of making those calls.” Frankly, it happens this way every time. Fundamentally, people know what they have to do to be successful. They have to prospect and set appointments. They have to convert those prospects into clients. They have to retain those clients, hopefully for a lifetime. But, many have a difficult time with the first step — prospecting. The source of the problem is not finding names to call. It’s not having a telephone that works. The problem is fear, and fear comes in different packages.

44 | INSURANCE JOURNAL | NATIONAL MARCH 5, 2018

Sometimes it’s disguised, but nevertheless it’s fear.

Solving the Fear Problem

How do you solve the fear problem in 18 minutes or less? Let me admit, it will be difficult to explain this in the space I have left. If you want to dig deeper, you can go to iTunes or Stitcher, find my podcast entitled: “Agency Growth Machine” and look for the episode, “Overcoming Fear in 18 Minutes.” I’ll go much deeper there. Let me ask you this question: “Do you think your producer knows what they are afraid of?” The answer is no. Have they thought about it in specific terms? No. Are they afraid someone is going to hurt them, beat them, cut them, stab them, shoot them, insult them, hang up on them or cuss them out? Is someone going to tell them to get lost, go to hell or eat scum? INSURANCEJOURNAL.COM

To assist you in this process, you need a dictionary. It will become your best friend. Have your producer look up the word “fear.” “Fear: An unpleasant emotion caused by the belief that someone or something is dangerous, likely to cause pain, or a threat.” Make them write the definition down exactly as it appears in the dictionary. Next, ask them to read it to you a couple of times out loud. Then, ask them what’s the most potent word in that definition? Whatever they say, ask them what that means. In most cases, they won’t know precisely, so ask them to look that up, too.

solve. We use language in a peculiar way. When we say “fear,” we bundle up a lot into that one word. As we do, that word starts to carry almost a super power, something producers can’t overcome unless they deconstruct it. By making them look it up, and looking up the definition of every single word in the definition, they deconstruct fear from a general feeling to a bunch of individual and factual things they can deal with. Let me give you an example using two words in the definition of fear: “someone” and “threat.” Someone: “An unknown or unspecified person.” Threat: “An intention to inflict pain, injury, damage or other hostile action on someone in retribution for something done or not done.” With that I ask: “Who is the unspecified person that is going to intentionally inflict pain on you?” They don’t know. They always look at me bewildered and respond: “I don’t know, no one I guess.” Then I ask them to look up the word “belief,” because it’s in the definition. Belief is “an acceptance that a statement is true or that something exists.” I’ll then say, “So you’ve accepted this as true, that someone, an unspecified person is trying to intentionally inflict pain on you, and that’s why you fear cold calling someone.” It’s at about this point that the light starts shining and the big epiphany starts. They say something like, “I get it. This is stupid. I’m not afraid someone is going to hurt me. I’m afraid because I don’t know what to say.” With that, I would question, “Are you afraid because you don’t know what to say or do you just need to be trained?” With that realization, we go to work on the real problem — it’s not fear, it’s training. So, we moved from a fear issue to a training issue. It’s at that point we start working on cold call scripting with bold statements to gain a prospect’s attention, ways to keep the prospect from hanging up the phone and how to close for the appointment.

The Problem

18 Minutes

What is going to happen that they are afraid of, or that causes this fear? They do not know, and that is where you can help, using the process below.

Your Friend

Here is the problem we are trying to INSURANCEJOURNAL.COM

I’ve found that in 18 minutes, a dictio-

nary and a few well-formed questions on my part will help them explode their unwanted and unwarranted fear. This probably sounds too simple. If that’s the case, leave your producers to their own devices. Let them continue to suffer in fear and you can sacrifice all the revenue and profit right along with them. Or, you can train and develop your producers, transforming their potential into growth and profit for them and your firm. Get in the movement — turn your agency into a growth machine. Schwantz is founder of The Wedge Group. Phone: 214-446-3209. Website: www.thewedge.net. Email: randy@thewedge.net.

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MARCH 5, 2018 INSURANCE JOURNAL | NATIONAL | 45

Closing Quote Speak Up! New Talent Prospects Will Listen experience. The other was to share our story.

Engagement Matters

By Jon Loftin

he insurance industry needs help, lots of help. By 2020, it’s predicted that we’ll have 400,000 open positions. Of course, we’ve been talking about the talent shortage for years, but we’ve primarily limited our worried conversations to industry events and within our individual agencies. At MJ Insurance, it’s been our goal for years to target young professionals and highlight the incredible career opportunities we can offer. We started by first considering the industry from an outsider’s perspective. Why weren’t young people interested, not even a little? Simply put, insurance seemed like a boring, dead-end job. Not a career. Not a consideration for anyone enthusiastic about their future. Ouch, that hurt. We knew that perception didn’t have to be our reality — and with a little work, more community engagement and focused efforts, we could right the ship. We had two tasks. One was to create an engaging employee

Focusing on employee needs has improved nearly everything about the MJ experience. It’s a simple equation — happy employees provide better customer service. This boosts retention rates and long-term success and profitability. We let our employees determine our direction. We put our purpose in writing and made a commitment to delivering. MJ exists to inspire the success, fulfillment and wellbeing of each person we serve: our associates and their families, business partners, clients and our community. It’s a promise we repeat often and share with talent prospects. To support our pledge, we emphasize five key passions: personal development; systems for success (giving people the technology and processes they need to succeed); inspiring leaders; exponential effect (or positive collaboration); and fun. Fun carries just as much weight as the other passions. After all, “Happiness is a choice. Bring your sense of humor and desire to have fun to work with you every day.”

46 | INSURANCE JOURNAL | NATIONAL MARCH 5, 2018

Results Worth Believing

We didn’t treat the development of our purpose and five passions as just an exercise. We actively work every day to follow through; it’s important. We offer education opportunities to every client and employee to help them stay up-to-date with trends and emerging risks. This includes InspireYOU, a client education series designed to engage and support discussion, and MJ YOUniversity, our employee personal and professional development program. MJ employees select the community organizations that we support financially

spaces that support collaboration and different work styles.

The Industry Sell

When selling your agency as a great place to work, don’t forget to discuss the industry, too. Only 2 percent of college grads admit any “interest” in entering insurance. So what should we say to change their perception? For starters, we need be loud and proud that college risk management majors traditionally enjoy 100 percent employment rates following graduation. We have positions for a remarkable range of interests and talent sets, for every personality, whether competitive, nurturing, analytical or creative. Perhaps our greatest selling point is that we take care of our neighbors. Never underestimate the appeal of this. It’s an important consideration for today’s job seekers.

Turn Up the Volume

and with volunteers. We don’t consider our agency a traditional top-down model. Instead, we encourage collaboration on every level, so everyone feels they have, and are appreciated for their voice. We believe a more engaging employee experience results from offering workplace flexibility, current technology and

It’s been heartening to learn that many people have overlooked our industry, not because we have a poor story to tell, but because we simply haven’t been telling it. It turns out they’re intrigued by the opportunity once they hear it. If your agency has already done the hard work and created that engaging employee experience, it’s no longer the message itself that’s holding you back. It’s time to turn up the volume. Our industry’s future is at stake. Loftin is president and COO of Indianapolis-based MJ Insurance. INSURANCEJOURNAL.COM

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