WEST REGION Microsoft Must Stop Using Captive Uber’s Ariz. Self-Driving Program Calif. Workers’ Comp D&O Law
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Contents June 4, 2018 • Vol. 96 No. 11 • West
West W1 California Woman Hit by Bat at Minor League Game Revives Safety Debate
W7 UBER ENDS SELF-DRIVING PROGRAM
IN ARIZONA FOLLOWING FATALITY
W4 California Jury Delivers $25M Decision in Johnson & Johnson Suit
National 8 Cyber Market Grew by 32% But Small-Medium Firms Opted Out 11 Spotlight: Cornell University Risk Manager on Active Shooter Preparedness on Campus
W4 Oregon Recreational Marijuana Growers to Scale Back
16 Special Report: Workers’ Comp Check-Up
W6 Washington Orders Microsoft to Stop Using Captive Insurer
18 Special Report: Insider Views on Workers’ Compensation
W7 Uber Ends Self-Driving Program in Arizona Following Fatality
22 2018 Workers’ Compensation Directory
W8 California Workers’ Comp Directors and Officers Cleanup Law Takes Effect July 1
Idea Exchange 20 Don’t Let Time Run Out on Your Employer Clients
11
U.S. CYBER MARKET GREW 32% IN 2017 BUT MOST SMALL-MEDIUM FIRMS OPTED OUT
33 The Competitive Advantage: Carrier Profits 38 Closing Quote: Policymakers Take On Distracted Driving Nationwide
Departments W2 People 10 Declarations 10 Figures
33 I USED TO WALK TO SCHOOL AND
4 | INSURANCE JOURNAL | WEST JUNE 4, 2018
HOME UPHILL BOTH WAYS
14 Business Moves 35 MyNewMarkets
INSURANCEJOURNAL.COM
72 happy children playing during recess. 24 busloads of students dropped off. 7 drinks spilled at lunchtime. 1 energy-packed elementary school day.
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*Based on 2018 survey of business insurance buyers on preference of national carriers sold via independent agents. Š 2018 Liberty Mutual Insurance. Insurance underwritten by Liberty Mutual Insurance Co., Boston, MA, or its affiliates or subsidiaries.
OPENING NOTE
Write the Editor: awells@insurancejournal.com
Workers’ Comp Superior Performers
T
Superior Performers displayed a higher agent commission ratio than their competitors.
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 Burandl
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
Contributing Writers
Dustin Boss, Jonathan Drew, Robert Passmore
Insurance Markets Manager Kristine Honey (619) 584-1100 X132 khoney@insurancejournal.com
IJ ACADEMY OF INSURANCE Director Patrick Wraight pwraight@ijacademy.com
Social Media Manager Ly Short (619) 890-7735 Lshort@insurancejournal.com
Associate Director Nathan Granitz ngranitz@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
he best workers’ compensation insurers have similar characteristics. A new study released by ACORD identified a few of those similarities, including that they pay their agency partners more than their rivals do as a way to attract better customers and achieve better results. To find out what a “superior performer” looks like in workers’ comp, ACORD asked three questions: How should success be measured across workers’ compensation insurers? What strategies and tactics lead to superior performance? What are the implications for carriers? To answer these key questions, ACORD’s 2018 U.S. Workers’ Compensation Performance Study, which examined the top 50 workers’ comp writers in the U.S., used five years of data. The 50 largest workers’ comp carriers account for 85 percent of workers’ compensation premium. The top 50 carriers were screened which ultimately led to narrowing the field to only five “Superior Performers.” Together, the Superior Performer carriers account for 11 percent of the U.S. workers’ compensation market. ACORD then analyzed the Superior Performers using non-financial factors, including regulatory complaints, social media visibility and sentiment, attractiveness to current and potential employees, digital capabilities and leadership competency. The study found that Superior Performers held these common characteristics: • Superior Performers had a higher agent commission ratio than competitors. Their willingness to spend more on commissions enabled them to leverage expertise, attract and retain high-lifetime-value customers, and achieve lower overall underwriting expense and loss ratios. • Superior Performers had better-than-average combined ratios in all lines of business, with workers’ compensation accretive to overall performance. • For Superior Performers, workers’ compensation was a strategic and tactical complement to other lines of coverage. • Superior Performers had a greater proportion of premiums concentrated in their top five states than lesser performing FOR QUESTIONS carriers, with nearly 70 percent of their REGARDING SUBSCRIPTIONS: Call: 855-814-9547 workers’ compensation business focused in Outside the U.S., call 847-400-5951 or you may subscribe or change your address online at: each carrier’s five key markets. insurancejournal.com/subscribe • Superior Performers ceded more of their Insurance Journal, The National Property/Casualty Magazine (ISSN: 00204714) is published semi-monthly by Wells Media premiums to reinsurers. 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 • Superior Performers leveraged reinsurance per special issue copy, $195 per year in the U.S., $295 per year all other countries. DISCLAIMER: While the information in this pub relationships more than their competitors. lication is derived from sources believed reliable and is subject to reasonable care in preparation and editing, it is not intended • Superior Performers also maintained a 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 lower premium-to-surplus ratio than their Media Group, Inc. All Rights Reserved. Content may not be photocopied, reproduced or redistributed without written permission. competitors. Insurance Journal is a publication of Wells Media Group, Inc.
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
New Media Producer Bobbie Dodge bdodge@insurancejournal.com
Web Developer Jeff Cardrant jcardrant@insurancejournal.com
Videographer/Editor Ashley Waldrop awaldrop@insurancejournal.com
Web Developer Terrance Woest twoest@wellsmedia.com
CIRCULATION
Circulation Manager Elizabeth Duffy eduffy@wellsmedia.com
Andrea Wells Editor-in-Chief
6 | INSURANCE JOURNAL | NATIONAL JUNE 4, 2018
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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National
Cyber Market Grew 32% But Small-Medium Firms Opted Out
T
he U.S. market for cyber insurance grew significantly in 2017, as direct premiums written rose nearly 32 percent year-over-year to $1.8 billion, and policies in force jumped 24 percent to 2.6 million, according to an A.M. Best special report. However, despite the growth, the cyber insurance take-up rate remains low, particularly among small to medium-sized enterprises. The new Best’s Special Report, “Cyber Insurance Market Sees Steady Growth but Still Awaiting a Real Growth Spurt,” states that the cyber insurance market represents a meaningful growth opportunity for insurers, given that the take-up rate for small to medium-sized companies remains in 8 | INSURANCE JOURNAL | NATIONAL JUNE 4, 2018
the low teens. These companies generally remain complacent about their exposure to cyber-related events, such as data breaches and system failures, and underestimate the potential for business interruption, A.M. Best says. On the other hand, national accounts and Fortune 500 companies, particularly companies at greater risk, such as financial institutions and health care companies, are increasing cyber coverage, according to the rating agency. In 2017, cyber packaged policies in force increased 28 percent for the U.S. property/ casualty industry (excluding non-U.S. and alien surplus lines insurers that do not have to file), following a year when standalone cyber insurance policies grew signifi-
cantly. A.M. Best believes the rise in packaged policies is partly due to the addition of affirmative cyber coverage (i.e., when perils are explicitly included or excluded) to commercial policies, as well as insurers reclassifying policies for financial reporting purposes. Standalone policies in this population declined 32 percent in 2017, as businesses likely migrated to less expensive packaged policies. The total number of cyber claims increased in 2017 to 9,017 from 5,955 in 2016, with packaged policies constituting 56.3 percent of the claims and standalone policies making up the remaining 43.7 percent. According to A.M. Best’s report, a lack
continued on page 36
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• • • • •
Workers’ Compensation: – Excess – Large Deductible – Large Guaranteed Cost Commercial Auto Commercial General Liability Public Entity Liability: – Law Enforcement Liability – Public Officials Liability – Educators Legal Liability Cyber Risk Reinsurance Loss Portfolio Transfers Captive Services Self-Insurance Bonds
Figures
$60 MILLION
The amount a lead paint manufacturer will pay to remove the toxic material from homes around California under a settlement announced by Santa Clara County. The settlement ends 18 years of litigation.
Declarations Communication Breakdown
“We communicated effectively to our staff and to our residents, and certainly to the family members of each resident that was exhibiting signs and symptoms of pneumonia.” — Illinois Veterans’ Affairs Director Erica Jeffries commenting
after Illinois workplace safety officials reprimanded state veterans’ officials for how the agency told staffers about a deadly Legionnaires’ disease outbreak at a Quincy veterans’ home in 2015. Jeffries, who has since resigned, said employees were informed about the outbreak through emails, meetings and informational material posted at nursing stations.
Tornado Targets
“The more we grow and the more targets we give the storms, the more targets they can hit.”
— Mark Fox, meteorologist at the National Weather Service’s
$100 The cost of a speeding ticket issued for driving 1 to 10 mph over the speed limit in Oklahoma under a new law that goes into effect in early August. Currently, the same type of speeding ticket costs around $225.
2 YEARS
The amount of time it took crews to fill a giant sinkhole that opened up beneath the Mosaic phosphate fertilizer waste pond in Mulberry, Fla. Workers first noticed the hole in August 2016. The sinkhole caused millions of gallons of polluted water to leak into Florida’s main drinking water aquifer but no contaminants from the spill have been detected in drinking water.
10 | INSURANCE JOURNAL | NATIONAL JUNE 4, 2018
$2 MILLION
Dallas-Fort Worth office, told The Texas Tribune that growth in Texas’ urban corridors is exposing more people to tornadoes. More than 8.8 million people live in the 46 counties that Fox oversees, all of which are located within “Tornado Alley.”
Lack of Uniformity
“… the law governing employment relations in this state remains far from uniform.”
— Massachusetts Supreme Judicial Court Chief Justice Ralph
Gants wrote in his concurring opinion regarding a case in which the court ruled the state’s independent contractor statute does not determine whether a claimant is an employee eligible for workers’ compensation benefits. In the wake of the case, Gants called for greater uniformity among the state’s legislation concerning employment status.
Hurricane Recovery
The number of rounds of ammunition stored in a South Dakota ammunition plant that caught fire on May 8. The facility owned by the Ultramax Ammunition company in Box Elder was destroyed. The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating the fire because the building is an ATF-licensed facility.
$2.3 MILLION The amount for which a New Jersey man who was struck by a bus and dragged for nearly 2 miles has settled his lawsuit with New Jersey Transit. Sixty-three-year-old Seres Arpad was walking his dog in an intersection in December 2014 when he was struck by a bus making a left turn. The dog was killed, and Arpad was trapped under the bus’ rear axle as it continued to drop off passengers.
“We know that we’ve got some work to do. We know that we want to streamline the process. We are going to make it a better process.” — North Carolina Emergency Management Director Mike
Sprayberry to a state House committee monitoring relief for Hurricane Matthew, which caused extensive flood damage to the state in 2016. Sprayberry acknowledged before the panel that homeowners and businesses seeking federal assistance for repairs due to the storm have faced a laborious process, including delays in receiving recovery funds.
Inverse Condemnation Doctrine
“We continue to believe that inverse condemnation, as applied to a privately owned utility, is a flawed legal doctrine that is bad for all Californians.”
— PG&E, which suffered another legal setback in late May with
a judge saying he won’t release the company from a legal claim over the most destructive wildfires in California history, has been challenging a state law allowing private property owners to hold the utility responsible for losses caused by its equipment, even if it didn’t act negligently.
Making a Change
“Until now, we have been operating as an MGA, which was a step on our path toward becoming a carrier.” — Guy Goldstein, co-founder and CEO of Next Insurance, told Carrier Management in a series of questions-and-answers about the move to reposition itself in the industry by becoming a licensed insurance carrier. Next Insurance launched in 2016 as a digital insurance agency for small to medium-size businesses.
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West
California Woman Hit by Bat at Minor League Game Revives Safety Debate
A
Southern California woman’s recent injury by a baseball bat has renewed attention to fan safety at games. Twenty-seven-year-old Cloey Heckendorn was hit in the head during the Rancho Cucamonga Quakes’ game on Mother’s Day. The Chino Hills resident was looking at INSURANCEJOURNAL.COM
her phone from her seat behind the thirdbase dugout when a bat from Los Angeles Dodgers’ third baseman Justin Turner slipped and flew toward her. She was taken to the hospital where she got 10 staples. Quakes general manager Grant Riddle says Heckendorn later got a bat signed by Turner.
Heckendorn says she plans to consult an attorney about suing. Minor-league teams have not incorporated recent changes in netting that the majors have. A Minor League Baseball spokesman declined to comment. Copyright 2018 Associated Press. All rights reserved. JUNE 4, 2018 INSURANCE JOURNAL | WEST | W1
WEST | PEOPLE
Mitchell Jawitz
Anderson & Murison Inc. has named Mitchell Jawitz executive vice president. Jawitz will be located in the Pasadena, Calif., office and will focus on national business development with independent agents and brokers. He was most recently senior vice president, product operations at National Lloyds Insurance Co. A&M is a wholesale insurance operation offering admitted and non-admitted property/casualty products in all states. Woodland Hills, Calif.-based Farmers Group Inc. has named Keith Daly president of personal lines. Daly, who is currently Farmers’ chief claims officer, joined Farmers in 2009 through the acquisition of 21st Century Insurance. Before becoming chief claims officer at Farmers, Daly was vice president of field claims operations at 21st Century. He earlier served as vice president and claims process leader. He started in the insurance industry in 1993 in claims at Progressive Casualty Insurance Co. Farmers Insurance and Farmers are tradenames
for a group of affiliated insurers.
G2 Insurance Services has named Matt Frykman vice president in employee benefits. He is located in in San Francisco, Calif., office. Frykman was previously global benefits manager at Glassdoor Inc. He was an account executive and senior client manager at Willis Towers Watson, and a benefits analyst at Little-Mendelson. G2 Insurance Services is a property/casualty and employee benefits brokerage. HUB International of California has named Mark Dobbs vice president of and producer for the national real estate specialty practice. Dobbs has experience in global commercial real estate business. He was most recently vice president of the construction and real estate group for Marsh & McLennan and Alliant. Chicago, Ill.-based Hub International Ltd. provides property/casualty, life and health, employee benefits, investment, and risk management products and services.
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WEST | News & Markets
California Jury Delivers $25M Decision in Johnson & Johnson Suit
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California jury delivered a $25.7 million verdict against Johnson & Johnson in a lawsuit brought by a woman who claimed she developed cancer by using the company’s talc-based baby powder. Jurors in Los Angeles recommended $4 million in punitive damages in May after finding the company acted with malice, oppression or fraud. Just before the decision, the panel called for $21.7 million in compensatory damages for plaintiff Joanne Anderson, who suffers from mesothelioma, a lung cancer linked to asbestos exposure. Johnson & Johnson was assigned 67 percent of the compensation payout, with the rest distributed among
other defendants. Johnson & Johnson said it’s disappointed in the decision and will appeal. “We will continue to defend the safety of our product because it does not contain asbestos or cause mesothelioma,” Johnson & Johnson said in statement. Anderson, 66, claimed Johnson & Johnson failed to adequately warn consumers that its powder contains asbestos and could cause cancer. Johnson & Johnson “engaged in a multi-decade campaign wherein they hid testing data” from regulators, altered reports to make them more favorable and lied to consum-
ers, said Chris Panatier, one of Anderson’s trial attorneys. Similar allegations have led to hundreds of lawsuits against the New Jersey-based company. Jury awards have totaled hundreds of millions of dollars. Last year, a judge in Los Angeles tossed out a $417 million jury award to a woman who claimed she developed ovarian cancer by
using Johnson & Johnson baby powder for feminine hygiene. The judge granted the company’s motion for a new trial, saying there wasn’t convincing evidence that Johnson & Johnson acted with malice and the award for damages was excessive. “Over the past 50 years, multiple independent, non-litigation driven scientific evaluations have been conducted by respected academic institutions and government bodies, including the U.S. Food and Drug Administration, and none have found that the talc in Johnson’s Baby Powder contains asbestos,” the company said. Copyright 2018 Associated Press. All rights reserved.
Army Officer in Alaska Charged with Making Fraudulent Claims
Oregon Recreational Marijuana Growers to Scale Back
40-year-old Army officer assigned to Alaska has been charged with making false insurance claims and pocketing nearly $400,000. Lt. Col. Christopher James DeMure is charged with mail fraud, wire fraud and money laundering. He was arrested in late May. Prosecutors say DeMure starting in September 2014 filed fraudulent claims for insurance payments from USAA Federal
regon produced enough recreational cannabis last year to supply every adult resident with more than 5 ounces of legal marijuana. There were more than 1 million pounds in the state’s supply chain. Data provided by the Oregon Liquor Control Commission says only 108,330 pounds of usable recreational marijuana were sold last year at the retail level, leaving 891,670 pounds in the pipeline to be stored for later sales or used in the manufacture of concentrates and edibles.
A
Savings Bank and American Express. Prosecutors say he bought jewelry, performance bicycles, clothing, and electronics, returned them for a refund and later claimed they were lost or stolen. In one claim, Demure during a move from Fort Benning, Georgia, to Alaska’s Joint Base Elmendorf-Richardson, said his rented trailer was burglarized in Kentucky. He claimed a loss of more than $215,000. Copyright 2018 Associated Press. All rights reserved.
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O
With more cannabis being grown than consumed, growers have dropped wholesale prices and some are scaling back production or getting out of the market. The Oregon Liquor Control Commission will evaluate the supply and demand from July 2017 to June 2018 in a report for state lawmakers. INSURANCEJOURNAL.COM
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WEST | News & Markets
Former Uber Engineer Files Suit for Harassment, Retaliation By Jonathan Stempel
A
former software engineer at Uber Technologies Inc. has filed a lawsuit against the ridesharing service, claiming she was subjected to sexual harassment and subjected to retaliation for complaining about it. The lawsuit by Ingrid Avendano provides a test of Uber’s new policy allowing people claiming sexual harassment and sexual assault to pursue their claims in court, rather than be forced into arbitration. “Uber is moving in a new direction,” including by implementing a new salary and equity structure, overhauling performance reviews, publishing “diversity and inclusion” reports and improving training for thousands of employees, the San Francisco-based company said in a statement. In her complaint filed in late May, Avendano said that
while working for Uber from 2014 to 2017, she experienced a “male-dominated work culture, permeated with degrading, marginalizing, discriminatory, and sexually harassing conduct toward women.” Avendano said men would openly discuss who they wanted to have sex with and share explicit content in instant messaging, while some made inappropriate comments about her appearance. But she said Uber displayed an “entrenched disregard” for female employees, including by ignoring one incident at a Las Vegas retreat when a drunken male colleague inappropriately touched her on the thigh. Avendano said Uber retaliated against her for complaining by denying promotions and pay raises, and subjecting her to a tough work schedule. She said her health worsened, lead-
ing to her resignation. “For years, she wanted to help make Uber a safe and just place to work for herself and other female employees,” Avendano’s lawyer Jennifer Schwartz, with Outten & Golden, said.
Uber changed its forced-arbitration policy in May, and rival Lyft Inc. announced a similar change. The U.S. Supreme Court said last month companies can in employment contracts require workers to arbitrate rather than pursue class-action claims over workplace matters.
In March, Uber reached a $10 million settlement of a proposed class-action suit alleging discrimination against more than 400 women and minorities. Uber Chief Executive Dara Khosrowshahi has since his August appointment tried to improve the company’s image, including by stamping out its reputation as tolerant of chauvinism. Avendano is seeking compensatory and punitive damages for gender bias, racial bias and harassment claims. She filed her suit with the California Superior Court in San Francisco. The case is Avendano v. Uber Technologies Inc., California Superior Court. (Reporting by Stempel in New York; Editing by Cynthia Osterman) Copyright 2018 Reuters. All rights reserved.
Washington Orders Microsoft to Stop Using Captive Insurer
W
ashington’s insurance commissioner issued a cease and desist order against Microsoft Corp. to stop using its Arizona-domiciled captive, Cypress Insurance Co. Insurance Commissioner Mike Kreidler’s cease and desist order issued in late May was for not holding a certificate of authority, placing unauthorized insurance with a Washington domiciled insured without holding a Washington State surplus line broker license, and
failing to timely remit a 2 percent premium tax to the state of Washington on premiums earned. The order states that Microsoft and its officers, directors, trustees, employees, agents, and affiliates to immediately cease and desist from: • Engaging in or transacting the unauthorized business of insurance in Washington; • Seeking, pursuing and obtaining any insurance business in Washington; • Soliciting Washington
W6 | INSURANCE JOURNAL | WEST JUNE 4, 2018
residents to purchase any insurance lo be issued by an unauthorized insurer; • Soliciting Washington residents to induce them to purchase any insurance contract. Cypress is an Arizona domiciled captive insurance company that was admitted as a captive insurance company on July 1, 2008, according to the commissioner’s order. Cypress has collected approximately $71.1 million in premium from Microsoft
between 2013 and 2018, according to the order. But the captive apparently didn’t pay premium taxes for that period. “Cypress has not paid premium lax to the state of Washington for the years 2013, 2014, 2015, 2016, 2017, and 2018, while insuring Microsoft Corporation, representing approximately S1,423,898.70 in unpaid premium tax,” the order states. Microsoft has 90 days from receipt of the order to demand a hearing. INSURANCEJOURNAL.COM
News & Markets | WEST
Uber Ends Self-Driving Program in Arizona Following Fatality By Heather Somerville
U
ber has shut down its self-driving car operation in Arizona two months after a fatal crash involving one of its vehicles, the company said last month. Uber Technologies Inc. is not shuttering its entire autonomous vehicle program and will focus on limited testing in Pittsburgh, Pennsylvania, and two cities in California, a spokeswoman said. The ridesharing company aims to resume self-driving operations this summer, likely with smaller routes and fewer cars, she said. “We’re committed to self-driving technology, and we look forward to returning to public roads in the near future,” the spokeswoman said. Arizona’s wide, flat roads, good weather and corporation-friendly regulations are INSURANCEJOURNAL.COM
considered ideal to test autonomous vehicles. Uber now faces the challenge of testing in congested, urban cities with rain, fog, snow and ice. It must also repair its relationship with regulators in California, where it lacks a testing permit, and in Pittsburgh. Uber has said it considers self-driving technology important to the future of its ride services, although it is not clear how it fits into the plans of new Chief Executive Dara Khosrowshahi. He has revamped the company structure and cut certain expenses as Uber prepares for an initial public offering next year. Uber suspended its program in Arizona and elsewhere immediately after one of its SUVs operating in autonomous mode hit and killed a woman crossing the street on a March night in Tempe, marking the first fatality involving a self-driving vehicle.
Arizona Governor Doug Ducey suspended Uber’s self-driving testing — a little more than a year after giving the company a warm reception and poking fun at California’s stricter regulations. “The governor’s focus has always been on what’s best for Arizonans and for public safety, not for any one company,” Daniel Scarpinato, a spokesman for Ducey, said. Elaine Herzberg, 49, was walking her bicycle outside the crosswalk on a four-lane road when she was struck by the Uber vehicle traveling at about 40 miles per hour. A safety operator behind the wheel appeared to be looking down, and not at the road, moments before the crash, according to video from inside the car released by police. The crash is under investigation by the National Transportation Safety Board. Uber will wait until the agency issues its preliminary report on the crash, expected within the next couple of weeks, before it puts its self-driving cars back on the road. The company is also undergoing a review of its autonomous car program and has hired former NTSB Chair Christopher Hart to advise on safety. Uber’s self-driving Volvo SUVs in Arizona will be moved to other cities and employees will be offered assistance in finding another job, the company spokeswoman said. Pittsburgh was Uber’s first city for autonomous car testing, starting in 2016. However, Pittsburgh Mayor William Peduto said in a statement that Uber had not told him its plans to resume testing. “I made it clear to Uber offi-
cials after the Arizona crash that a full federal investigation had to be completed, with strong rules for keeping streets safe, before I would agree with the company to begin testing on Pittsburgh streets again,” Peduto said. The Uber spokeswoman said the company was in discussions with California regulators, the governor and city officials to operate in San Francisco and Sacramento, although it does not have a timeline. “Sacramento stands as a willing partner,” said Louis Stewart, the city’s chief innovation officer. Sacramento has held conversations with many autonomous vehicle developers, and is not deterred by Uber’s crash in Arizona. The city wants to work with Uber to make sure its technology is safe, but sees no need “to jump right in and regulate even more how these cars operate,” Stewart said. Uber briefly had an autonomous car program in California in late 2016, but the state Department of Motor Vehicles shut it down after about a week because Uber had failed to obtain the necessary permits. The company had argued that state laws did not apply to its self-driving program, but its defiance was met with threats of legal action from the DMV and the state attorney general. Uber moved its cars to Arizona. (Reporting by Somerville; additional reporting by David Schwartz in Phoenix and Jim Finkle in Toronto; Editing by Tom Brown and Grant McCool) Copyright 2018 Reuters. All rights reserved.
JUNE 4, 2018 INSURANCE JOURNAL | WEST | W7
WEST | News & Markets
California Workers’ Comp Directors and Officers Cleanup Law Takes Effect July 1 By Don Jergler
A
new law that enables corporate directors and officers owning at least 10 percent of a business to opt out of workers’ compensation coverage goes into effect on July 1. The law is intended to reduce the threshold of ownership, and is part of an effort to help eliminate workers’ comp fraud. Under the new law, directors and officers who want to opt out of workers’ comp must sign a waiver stating they are covered by a health insurance plan. Senate Bill 189, authored state Sen. Steven Bradford, D-Gardena, changes the 10 percent threshold from the 15 percent threshold previously established by Assembly Bill 2883. AB 2883 raised a stir when it passed in 2016, but not so much because of the 15 percent threshold, although some brokers did believe that mark would hurt some middle-market business. When it passed it prompted California Insurance Commissioner Dave Jones to issue a special notification to insurers, because it had the unintended consequence of exempting in-force policies. “AB 2883 is going to cause significant disruption for workers’ compensation insurers and employers,” Jones said at the time. “We have issued a notice today to workers’ compensation insurers so that they know what the new law requires of them and we directed insurers to provide notice to employers so they are made aware of the new law. Unfortunately, AB 2883 did not include any language exempting in-force policies or delaying its effective date so as not to impact in-force policies.” AB 2883 provided that all workers’ comp policies were required to cover certain officers and directors of private corporations and working members of partnerships and limited liability companies that may have been previously excluded from coverage. That law took effect on Jan. 1, 2017, but
since then some businesses have had issues with the 15 percent threshold. After SB 189 passed Bradford said the new law will ease the burden on businesses placed on them by AB 2883, which was intended to curb fraud from companies that were wrongly reporting workers as directors and officers to reduce or eliminate their premiums. He said the law balances the goals of eas-
‘States typically allow directors and officers of companies to be exempt from workers’ compensation coverage.’
W8 | INSURANCE JOURNAL | WEST JUNE 4, 2018
ing “the regulatory burdens on small businesses, while preserving safeguards against workers’ compensation insurance premium fraud.” Mark Walls, vice president of communications and strategic analysis for carrier Safety National, said the two laws help close loopholes being exploited by bad actors trying to game the worker’s comp system. “States typically allow directors and officers of companies to be exempt from workers’ compensation coverage,” Walls said. “Unfortunately, some businesses looked to take advantage of that exception
and designated most of their employees as ‘directors or officers,’ even though they had no ownership interest in the company.” However, Walls believes SB 189 should have a minimal impact on the industry as a whole as these changes will only impact a small number of companies, he said. Under the new law, corporate officers can also be eligible for exclusion if they own at least 1 percent of the stock and if their parent, grandparent, sibling, spouse, or child owns at least 10 percent of stock. The law would also expand the scope of the exception to apply to an owner of a professional corporation who is a practitioner rendering the professional services for which the corporation is organized, and who waives their rights under the laws governing workers’ comp and stating they are covered by a health insurance policy. The law provides that an insurance carrier, agent or broker is not required to investigate, verify or confirm the accuracy of the facts contained in the waiver. The bill would make other changes relating to the execution and acceptance of waivers. Sole shareholders of corporations (private or professional) are automatically excluded. No waiver is necessary, but they can be included for coverage. INSURANCEJOURNAL.COM
Public Entities/Schools | Spotlight | NATIONAL
Cornell University Risk Manager on Active Shooter Preparedness on Campus By Andrea Wells
H
ow to manage active shooter risks on campuses is a top concern for risk managers. Craig McAllister, director of risk management, Cornell University, told attendees at the recent RIMS Annual Conference in San Antonio, Texas, there are ways that facilities can plan the design and construction of buildings to mitigate risk but often those techniques might be less effective in a higher education setting where open space is plentiful. “However, if you look at how our courthouses, federal buildings, how things have changed since the bombing in Oklahoma City, since 9/11, they are different facilities today,” he said. “There are often barriers around the outside of buildings now.” The same design and construction techniques are happening in newly constructed K-12 schools, he added. But for older campuses, retrofitting with tools like bullet-proof glass or secured doors is expensive and not always possible. “And again, with higher education, we have open campuses with many buildings and people passing between buildings on a regular basis. To really lock that down doesn’t work well.” Another step in a campus active shooter risk management plan is crisis commuINSURANCEJOURNAL.COM
nication. McAllister emphasized ensuring proper connections and contracts are in place ahead of any incident. Institutions should have partnerships with crisis communication teams, counseling services for students and employees and even the general community in place. “One of the things that we’ve done at Cornell is we’ve worked with other educational institutions locally and have a mutual aid agreement in place. So, other institutions that are similar in our size, maybe an hour-anda-half away, can help provide additional support to us if necessary.” Another part of active shooter preparation is proper training. “People need to understand what their roles are, what their duties are and what they will have to do during an incident,” McAllister said. “At Cornell, we use the National Incident Management System and Incident Command Control System. Just really having these in place so people understand their duties and their roles has been helpful.” Training isn’t only for top executives and leaders. “It’s training for all individuals, so they understand how they should respond during an incident,” he said. There is also a growing responsibility for duty of care when it comes to education
institutions and active shooter risk, especially in higher-ed settings.
‘People need to understand what their roles are, what their duties are and what they will have to do during an incident.’ “This is something that continues to evolve with the expectations of our students and their parents, but also society at large,” he said. What obligation do administrators have to the people on campus? “Understand your moral obligation,” he said. “Ultimately, we want to do the right thing and how that can be defined by others, so we need to be prepared.” The definition of what campuses owe students is evolving, too, he said. “In most situations, we consider our students
as invitees to our campus, meaning that we have a higher standard for community of care. Certainly, we couldn’t entrap them, we couldn’t injure them, but we have to make sure that they were appropriately protected.” Then there’s the recovery portion of a risk management plan. “This ultimately includes providing the appropriate level of services and support to the campus community after the incident,” McAllister said. This is done through communications during the incident and after, as well as during any litigation process, he said. “When you look at litigation, we have a duty and as the duty is evolving, what duty do we owe to our students, our employees, but also how did we reach that duty? Did we fail to fulfill or warn our community?” As those duties continue to evolve, risk managers must watch and change to meet that duty of care.
JUNE 4, 2018 INSURANCE JOURNAL | NATIONAL | 11
HOW AGENTS CAN THRIVE IN THE DIGITAL AGE.
AN INTERVIEW WITH THE HARTFORD’S MATT KIRK Chief Sales & Distribution Officer, Small Commercial
Like most consumers, small business owners have big expectations for what they can accomplish online. Agents who want to succeed in a changing market need to help deliver on those expectations. We sat down with Matt Kirk, Chief Sales & Distribution Officer of Small Commercial Insurance at The Hartford, to discuss emerging trends he’s seeing in the industry and ways agents can ensure they’re meeting customer demands and keeping pace with the digital revolution.
GIVEN THE RAPID EVOLUTION OF TECHNOLOGY, WHAT’S ONE OF THE BIGGEST CHALLENGES THE INSURANCE INDUSTRY IS FACING? The way customers want to do business with agents and insurance carriers today has dramatically evolved. What was acceptable even just three-to-five years ago no longer meets customer expectations. Patiently waiting on 1-800 numbers or sending paper and snail mail on simple transactions won’t be acceptable to customers. Fast, frictionless and tailored digital experiences will become the norm for insurance. WHAT WOULD YOU TELL AGENTS THEY NEED TO DO IN ORDER TO BE SUCCESSFUL IN THESE CHANGING TIMES? It has never been a better time to be an agent serving the business community. An agent should demand and expect a carrier to provide a consultative, intuitive, fast and easy quote, rate issue capability, full digital service capabilities and multiple billing options – whether on a payroll platform for workers’ comp or with a credit card. And that’s just the start. A handful of carriers today are meeting the coverage, capability and digital needs of the agent and business owner to varying degrees. Agents need to understand and embrace them. Free up the agency team to provide personalized insurance and risk advice and consultation to their customers. Every survey of business owners reinforces that paradigm: they want advice and counsel tailored to their business from an independent agent; they want everything else – all the other transactions that make up the insurance experience – in a manner that is respectful of their time and money, and meets their digital expectations.
WHAT CAN AGENTS DO DIFFERENTLY TODAY TO SET THEMSELVES APART FROM THE COMPETITION? Know the business owner’s environment and expectations. For example, exactly zero business owners enjoy making a down payment on their workers’ comp. All of our agents can provide workers’ comp on payroll billing, eliminating the down payment which is the human capital management (HCM) environment business owners operate in. Know the HCM trend and get the business owner on payroll billed workers’ comp and eliminate the down payment. Another example is certificates of insurance, which are our second-highest service request. A cert can be issued to the customer digitally, allowing them to get it when they want it and from a medium that meets customer expectations. In small commercial, we issued over 100,000 certs digitally directly to the customer in 2017 and that number is growing on a hockey stick trajectory.
“
Fast, frictionless and tailored digital experiences will become the norm for insurance.
”
75% of workers will be from the millennial generation by 2025.¹
WHAT’S THE BIGGEST DANGER YOU SEE FOR AGENTS IN TODAY’S RAPIDLY CHANGING MARKET? Fighting for yesterday’s processes and capabilities. Seventyfive percent of workers will be from the millennial generation by 2025.¹ Most consumers today use a mobile device to complete all kinds of transactions. Why would we believe insurance should be any different? Agents need to be able to flex carrier solutions and capabilities to the different needs and demands of the business. They need to work with carriers who see the future and are building solutions for it.
90% of customers expect an organization to offer a self-service customer support portal.²
Don’t accept carrier solutions and capabilities that work for yesterday’s economy. Embrace the changing demographics, environment and expectations of business owners. Focus on providing tailored advice and counsel on how to protect them from risk. That combination will bring a bright future for agents, business owners and their carrier partners.
DISCOVER HOW OUR DIGITAL CAPABILITIES CAN HELP YOUR AGENCY THRIVE.
Contact your sales representative at The Hartford today.
Together We PrevailTM
Property Liability Workers’ Comp Business Auto
1
Governance Studies at Brookings, “How Millennials Could Upend Wall Street and Corporate America,” May 2014.
2
Parature, “13 Shocking Customer Service Statistics,” October 9, 2015.
Insurance coverages mentioned in this interview are underwritten by Hartford Fire Insurance Company and its property and casualty insurance company affiliates. This statement contains only a general description of coverages which may be provided and does not include all of the features, exclusions, and conditions of these policies. Certain coverages, features and credits vary by state and may not be available to all insureds. All information and representations herein are as of May 2018. 18-0407 © May 2018 The Hartford
NATIONAL | Business Moves
Ascot US, Greyhawk Insurance
Ascot US Holding Corp. has acquired Greyhawk Insurance Co. and its subsidiary, Greyhawk Specialty Insurance Co. Greyhawk is a Colorado domiciled admitted lines insurer that has been in runoff since 2006. Greyhawk Specialty is a dormant Rhode Island domiciled excess and surplus lines insurer. The acquisitions are subject to regulatory approvals. The Greyhawk companies will expand Ascot’s U.S. platform and increase access to the U.S. insurance markets. Ascot Group Ltd. is a Bermuda domiciled global specialist in insurance and reinsurance. The group compromises three divisions: Ascot Underwriting, a managing agent for Syndicate 1414 at Lloyd’s; Ascot Reinsurance Co., a Bermuda based specialty reinsurer; and Ethos Specialty Insurance Services, a New York based managing general agent.
Mark Edward Partners, Kaplow Insurance Agency
Mark Edward Partners, an
independent, full-service, international insurance brokerage firm, has acquired the Kaplow Insurance Agency, a Chappaqua, N.Y.-based firm. The Kaplow team brings understanding of the equine industry to Mark Edward Partners as its newest specialty unit, Mark Edward Equine. Evan Kaplow will lead the unit. Mark Edward Equine’s expertise includes the risk management issues associated with performance, racing and breeding horses, the management of farms, ranches and other sport horse and bloodstock training facilities. It also extends to the rodeo and bucking sports industry, providing coverage on both equine and bovine athletes.
USI, Key Insurance & Benefits Services, CHS Insurance
USI Insurance Services has closed its acquisition of Key Insurance & Benefits Services Inc., formerly part of KeyBank. Terms of the transaction were not disclosed. USI is a Valhalla, N.Y.-based insurance brokerage and con-
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sulting firm delivering property and casualty, employee benefits, personal risk, program and retirement solutions to large risk management clients, middle market companies, smaller firms and individuals. Headquartered in Buffalo, N.Y., Key Insurance & Benefits Services Inc. is a regional provider of risk management and employee benefit solutions with 350 teammates working in eight offices in upstate New York, Pennsylvania and Connecticut. Together, USI and Key Insurance & Benefits Services are investing and expanding in communities including Buffalo, Rochester, Pittsburgh, Norwalk and cities across New York, Connecticut, Pennsylvania and across the country. USI also has closed the acquisition of CHS Insurance, formerly part of Minnesota-based CHS Inc. CHS Insurance is one of the nation’s largest agribusiness insurance brokers and a nationwide insurance provider. It has provided insurance and risk management solutions to agribusiness, food processing, petroleum and agricultural cooperatives for 80 years. Terms of the transaction were not disclosed.
Prime Risk Partners, Roblin Insurance
Prime Risk Partners Inc. has finalized its acquisition of Roblin Insurance, an independent insurance agency in the Boston area providing commercial, personal, and employee benefits risk management. Roblin Insurance will maintain its name and will continue operating at its existing loca-
tion in Needham, Mass. The Roblin leadership team and employees will remain in their current roles. The partnership with Roblin signifies PRP’s entrance into the New England market, with Roblin serving as PRP’s regional platform. PRP and Roblin will work to grow Roblin’s operation through investing in insurance professionals and finding complementary agency acquisitions. Prime Risk Partners, headquartered in Atlanta, is building a national platform founded with regional agencies. Roblin Insurance offers business and personal insurance such as property and casualty, as well as employee benefit programs, including review, design, and administration of programs and workers’ compensation.
G.M. Abodeely Insurance Agency, Smith Brothers
G.M. Abodeely Insurance Agency has merged its business with Smith Brothers Insurance of Glastonbury, Conn. This combination allows the Abodeely Agency to maintain its presence as an independent local agent and use the resources of Smith Brothers, a national Top 100 independent broker. Bill Abodeely and Elaine Saliba, principals of Abodeely Agency, and Shelley Zicolella, director of operations, together with the account management team, will operate out of the agency’s Massachusetts locations in Milford, Westborough, Webster, West Springfield and Fitchburg under the name G.M. Abodeely Insurance Agency, an affiliate of Smith Brothers Insurance. INSURANCEJOURNAL.COM
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NATIONAL | Special Report | Workers' Compensation
Healthy Underwriting Gain, Premium Growth Blockage By Andrea Wells
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orkers’ compensation insurers are managing their premiums dollars better than they have in years, but those premium dollars are stagnating even as employment and wages are rising. In 2017, for the fourth consecutive year they posted an underwriting gain — including an unprecedented combined ratio of 89 that is the lowest in the industry’s history, according to the National Council on Compensation Insurance’s (NCCI) annual State of the Line Report released in May 2018. At the same time, total market workers’ compensation net written premium volume, which includes both state workers’ comp funds and private carriers, declined slightly in 2017 to $45 billion from $45.6 billion in 2016. In 2017, net written premium for just private carriers also dropped slightly to $39.8 billion from $40.1 billion in 2016. The workers’ compensation underwriting gain for private carriers is approximately $4.1 billion for calendar year 2017. According to NCCI, the good news in payroll growth has been offset by loss cost decreases and the inability of carriers to raise their rates. NCCI Chief Actuary Kathy Antonello said the best news was a historically low loss ratio of 49 that was the major contributor to the good underwriting performance. “It’s clear that pri-
vate carriers are supporting conscientious underwriting while interest rates remain low,” she said. On an accident-year basis, the industry reported the 2017 workers’ compensation combined ratio at 99 percent, and NCCI expects this to develop favorably as well. Antonello stated in the report that analysts would have to look back decades — as early as the 1940s and 1950s — to find a sub-90 combined ratio for workers’ compensation.
Stagnant Premiums
Workers’ compensation was the only line of property/casualty insurance to experience a decrease in total net written premium for 2017, which fell 0.7 percent overall. According to NCCI’s Antonello, there have been four main forces behind the stagnation in premiums: more premium ceded to the reinsurance marketplace; continued use of offshore cessions; payroll growth that’s been offset by loss cost decreases; and little to no change in carriers’ pricing levels. Payroll increased by 4.4 percent in NCCI states from 2016 to 2017 but that change was almost completely offset by a 4.2 percent decrease in loss cost and the change in mix of business, Antonello said. This trend was found in every NCCI state. One of the four forces behind little movement in premium — the offshore picture — may be changing. The use of offshore cessions, which decreases net written premium in statutory accounting, could change as the corporate tax rate drops from 35 percent to about 21 percent and the new Base Erosion and Anti-Abuse Tax, known as BEAT, significantly reduces the longstanding tax advantage that offshore entities held over those in the U.S., she said. “Transferring to offshore isn’t going to look as attractive in the future and that may put an end to some of this trend,” Antonello said. Therefore, if less premium is ceded to offshore reinsurers in the future that is going to have an impact on net written premium for the line, she added. For now, it’s a substantial portion of the
overall premium. Antonello explained that in 2011, workers’ compensation premium ceded to offshore reinsurers stood at about 24 percent. However, by 2017 that portion of the market stood at 32 percent. Ceded increased on average about 11 percent per year while direct written premium and assumed [premium] increased at only about 6 percent per year, she said.
Not All States
Between 2016 and 2017, nationwide private carrier direct written premium showed a slight increase of 0.1 percent. However, Antonello said there was considerable variation in direct written premium growth across states. The standout state was Florida, where direct written premium (DWP) increased by about 15 percent in 2017, Antonello said. That was a result of the 14.5 percent increase in Florida in October 2016 that addressed the projected impact of the two court decisions, Castellanos v. Next Door Company, et al., and Westphal v. City of St. Petersburg. (Since the October 2016 increase, Florida has approved two decreases of 9.5 percent and 1.8 percent.) Despite nationwide premiums remaining flat overall, 19 states showed increases in workers’ comp direct written premium in 2017 ranging from less than 1 percent growth in Maryland (0.3 percent), California (0.5 percent), Utah (0.6 percent), Virginia (0.8 percent) and Oregon (0.9 percent), to increases of more than 5 percent in Rhode Island (5.1 percent), Georgia (5.2 percent), South Carolina (5.7 percent), New York (6.3 percent), Delaware (7.5 percent), Idaho (10.7 percent), the District of Columbia (11.4 percent), and Florida (15 percent). However, the drop in direct written premium for the remaining 28 states (not including monopolistic states) led to the overall national stagnancy for workers’ comp premiums in 2017. States with the largest declines in premium included Oklahoma (-6.6 percent); Minnesota (-6.4 percent); and New Hampshire, Connecticut and Arkansas (all -6.3 percent). But if the premium results are translated
continued on page 18 JUNE 4, 2018 INSURANCE JOURNAL | NATIONAL | 17
NATIONAL | Special Report | Workers' Compensation continued from page 17 into a proportion of states’ workers’ comp premium, it’s quite a different picture, said Antonello. Premiums in California’s quite large workers’ comp market remained even. According to the WCIRB of California, payroll increases have been offset by decreases in pure premiums over the last couple of years. New York, where an October 2016 rate increase contributed to growth in the market, just filed for an 11.7 percent decrease in May 2018.
2018 Rates
While it remains to be seen how payroll and other factors will ultimately affect workers’ compensation premiums in 2018,
NCCI filings approved this year, as of May 10, 2018, call for rate decreases to continue. Antonello said that as of May, premium levels under filings in 2018 will drop the premium level by 9.6 percent overall due to significant and anticipated decreases prevalent across almost all NCCI states. “The pattern is clear and it’s consistent with what we saw last year,” she said. “Continued decreases in claim frequency along with a moderation in severity are putting downward pressure on medical and indemnity trends and that’s contributing to the decreases.” According to the latest CIAB pricing survey, the percentage of respondents seeing
pricing increases at renewal for workers’ comp is pretty stable — it was 13 percent in Q4 2016 to 12 percent in Q4 2017, Antonello noted. “As of the fourth quarter of 2017 agents are reporting seeing mostly decreases or no change in prices at renewal.”
Residual Markets
The residual workers’ compensation market has also been holding steady, hovering around $1 billion since 2103. “Assigned risk rates are seeing the same significant decreases as is the voluntary workers’ comp market and that’s one reason why premium is down,” she said. One premium range category in the
Insider Views on Workers’ Compensation By Andrea Wells
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here is a lot to like about how the workers’ compensation market is doing. A robust economy is generally favorable for workers' comp, as growing payroll and investments in workplace safety are helping, says Andrea Gardner, workers’ compensation lead for The Hartford. “The workers’ compensation line has not experienced any material or disruptive changes for several years, including the absence of material regulatory change and only modest trends in medical costs,” Gardner said. “In addition, the long-term decrease in the frequency of losses related to improved safety measures continued through 2017.” Justin Boardman, workers’ compensation manager at Chubb, sees several factors at work in the generally positive results. “For example, several states have implemented meaningful reform and established formularies to address escalating costs and abuses in the system,” he said. Boardman believes that the stronger economy has also meant more skilled and experienced employees returning to work, which has helped workers’ comp results. “In addition, skilled and expe-
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rienced employees are staying in the workforce longer, both of which have contributed to lower frequency trends.” Gardner is a bit more cautious about labor. “A very low unemployment rate as we have today can be a concern – if inexperienced workers are hired into complex jobs, the risk of injury is increased,” she said. Underwriters should be pleased with the 2017 results, according to Matt Zender, vice president and workers' compensation product manager at AmTrust. Zender is focused on one metric in particular that he suggests shows there is room for improvement. “My eyes go to the accident year results versus the calendar year results, and right now, there’s about a 10-point spread between those two,” he said, citing the 89 percent calendar year combined ratio vs. the 99 percent accident year 2017 net combined ratio for 2017. “I tend to think that the accident year is a better match for results because the accident year loss ratio takes current and future losses divided by current and future premiums, whereas calendar year takes current and past losses divided by current and future premiums,” Zender said. “I would then hope that the 99 will improve as we look at it in subsequent
years,” he added. Predictive analytics have also played a key role in case management and fraud prevention, according to Boardman. Zender agreed that predictive modeling and data analytics are strengthening the workers’ compensation line. “Carriers are getting better and better at working with analytics and getting a better sense as to who we are, and how those risks that we’re writing will perform,” he said. “As we use those analytics and better match up premium and exposure across a portfolio, it’s leading to carriers that I think, rightly, are more emboldened and confident about the state of their individual books. That’s absolutely a good thing.” Todd Pollock, senior vice president of workers’ compensation for Worldwide Facilities, says there’s no question workers’ compensation is in a soft market cycle, which he says is a trend to keep an eye on when it comes to profitability. “The competition in the market is as fierce as I’ve ever seen it,” he said. “State rate decreases combined with increasing competition has driven down pricing.” Traditionally low-hazard workers’ comp carriers are venturing into higher risk classes, he added. “Carriers are getting more aggressive
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residual market has grown — the $0 to $2,499 premium range experienced a 9 percent growth in 2017. All other premium categories declined from Q1 2017 to Q1 2018, NCCI reported. Premiums over $100,000 fell by about 24 percent during this time in the residual market. Overall, the residual market share of the total workers’ comp market has been stable at about 9 percent since 2013. Antonello noted that even in the most volatile class codes that might not find coverage through the voluntary market are stable in workers’ comp. These include carpentry, roofing, local trucking, painting and long-haul trucking, which together
made up 24 percent of the workers’ comp residual market in 2017. Other trends highlighted in NCCI’s 2018 State of the Line were: • Average lost-time claim frequency across NCCI states declined by 6 percent in 2017, on a preliminary basis.
•
In NCCI states, the preliminary 2017 average indemnity and medical accident-year claim severities both increased by 4 percent.
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with their pricing on accounts where they wouldn’t have [underwritten] in the past,” he said. Pollock attributes the current profitability to a coordinated effort among all players involved. The medical community and the insurance industry have figured out ways to handle claims better and keep claims costs a little bit lower, despite the high rate of inflation in health care, he said. “So, the cost of health care has been going up and up and up, yet the cost of claims has not. …There’s been some adjustment in the way injured workers are handled, which doctors to send them to, in providing light duty or a modified duty programs to get people back to work quicker - to get them proper rehab as opposed to just sending them home,” he said. Going forward, Gardner sees technology changes in the workplace playing a role in the profitability of workers’ comp over the long term. “Technology will change the makeup of the workforce, as robotics replace workers in high hazard roles and create employment in technology-related fields,” she said. “This is likely to contribute to the ongoing decrease in the frequency of workers’ comp losses.”
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Idea Exchange
Workers' Compensation
Don’t Let Time Run Out on Your Employer Clients
By Dustin Boss
“Time is on my side. Yes it is.” — The Rolling Stones
T
ime might be on Mick Jagger’s side. But if your client is an employer with 10 or more employees, then the question as to whether time is on its side comes with a very simple answer: “No, it isn’t.” At least as far as the Occupational Safety and Health Administration (OSHA) is concerned.
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By July 1, 2018, OSHA is requiring employers to electronically submit injury and illness data (Form 300A) that they are already required to record on their onsite OSHA Injury and Illness forms and that they should already have posted at each job site in a conspicuous area where notices to employees are customarily placed. Copies of the 300A summary should be provided to any employees who may not see the posted summary because they do not regularly report to a fixed location. OSHA states that the analysis of this data will enable it to use its enforcement and compliance assistance resources more efficiently. Some of the data may possibly be posted to the OSHA website. The amount of data submitted will vary depending on company size and industry type. OSHA requires employers to keep a backlog of injuries from the past five years. It’s important to let your employer clients know that only the 300A form needs to be submitted prior to July 1, 2018. Form 300A reports an employer’s total number of deaths, missed workdays, job transfers or restrictions, and injuries and illnesses
as recorded on Form 300. It also includes the number of workers and the hours they worked for the year. So how did this change come about? And why? On Thursday, May 12, 2016, OSHA changed the way workplace injuries need to be reported because it believed that it was able to access only 1 percent of all workplace injury reports, mostly through audits and surprise inspections. To gain access to the remaining 99 percent, OSHA came up with a plan where, instead of trying to track down the infractions on its own, OSHA would now require employers to report all incidents directly to the Administration “voluntarily.” It’s a classic example of if you aren’t catching enough fish on your next trip out on the lake, come up with a way to have all of the fish in the lake actually jump into the boat “voluntarily.” The good news is the new rules will benefit employers who have already committed to engraining a safety culture for their organization and provide a “nudge” (which may feel like a push to some) to those employers who put safety on the back burner. No longer will a “strong safety culture” be a plus or a bonus for an organization. The new rules require employers to take safety seriously by further reinforcing the need and importance of establishing a strong safety culture; one that trickles down from the C-suite to the workers on the floor. Now more than ever, it’s extremely important that a company puts safety above all other concerns. Your clients need to also be aware that any reported incidents can also act as breadcrumbs for OSHA to find its way back to incidents that may not have been reported. Let me make this crystal clear: OSHA does not have a “get out of jail free” card it’s waiting to play. If your clients INSURANCEJOURNAL.COM
are found to be negligent in reporting workplace injuries, the penalties can be extremely harsh. Remember, only serious injuries that are the result of workplace activity need be reported. Everyone involved should analyze the activity to determine whether the injury was due to work duties. Businesses are not required to report injuries resulting from activities merely incidental to work responsibilities. As defined by OSHA, a serious injury is one that results in a fatality, loss of consciousness, days away from work, a restricted work schedule or job transfer, or a significant-injury or illness diagnosis by a healthcare provider that requires medical treatment beyond basic first aid. Employers are not required to report incidents that require only basic first aid. It’s equally important that all reporting be accurate and that perhaps the best
shades of doubt and should be avoided at all costs. The key is timely and accurate reporting. The obligation you have to keep your employer client in the loop on this important OSHA reporting date cannot be understated. But it also opens up the door to secure new clients who may not have been brought up to speed on what is expected of them by their current agent, and thus are seeking a change. Share this article with a col-
course of action is to enlist the services of someone primed to handle the task. Any report generated should show that the company advocates having healthy
The new rules now require employers to take safety seriously by further reinforcing the need and importance of establishing a strong safety culture; one that trickles down from the C-suite to the workers on the floor.
league. IJMAG.COM/64RU
and safety-conscious employees, because once that misinformation is out there, it’s a bell that can’t be unrung. An errant report has the potential to paint any company in
Boss is a Certified Risk Architect with Ottawa Kent Insurance in Jenison, Mich. He is also the creator of OSHALogs.com, a software designed to assist employers and agents in dealing with the new OSHA regulations. Email: dboss@ ottawakent.com. Phone: 616-457-1320.
WORKERS’ COMPENSATION COMMERCIAL
EXCELLENCE IN THE INSURANCE WORLD
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JUNE 4, 2018 INSURANCE JOURNAL | NATIONAL | 21
Searching for a workers’ compensation market? Look no further than Insurance Journal’s 2018 Workers’ Comp Directory, a comprehensive listing of intermediaries and carriers offering workers’ compensation coverage throughout the country. The information listed in this directory serves as a resource guide for independent agents and brokers looking for workers’ compensation markets. Intermediaries and carriers writing workers’ compensation coverage and profiled in this directory submit updated information directly to Insurance Journal.
AAU, A division of USG Insurance Services Contact: Curtis Kochman Phone: 724-754-9052 ; Fax: 724-754-9011 Email: ckochman@aauins.com Website: www.aauins.com ■ Markets Offered: Standard, Hazardous & Excess Workers’ Comp, USL&H, Staffing Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: Varies ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: 20+ carriers
Agency Resources Contact: MaryEllen Mazzo Phone: 973-315-0716 ; Fax: 770-836-8563 Email: maryellen.mazzo@agencyresources.com Website: www.agencyresources.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted
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We make every attempt to ensure the accuracy of all information listed in this directory. You may also view Insurance Journal’s Workers’ Comp Directory online at: www.insurancejournal.com/directories. Also visit that link to submit a listing for future workers’ compensation directories, or e-mail Kristine Honey at: khoney@insurancejournal.com. We hope you find the 2018 Workers’ Comp Directory to be a useful tool when searching for markets. To comment on this directory, or any other Insurance Journal resource, please e-mail: editorial@insurancejournal. com.
Align General Insurance Agency, LLC Contact: Mike Tudman Phone: 619-333-2500 Email: info@aligngeneral.com Website: www.aligngeneral.com ■ Markets Offered: Workers’ Comp - MODS above 1.10 ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $40,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: CA ■ Admitted Status: Admitted ■ Carriers Represented: Call For Details AllComp Solutions Contact: Jim Gara Phone: 610-808-9586; Fax: 610-941-9889 Email: workerscomp@nsminc.com Website: www.allcompsolutions.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: 10 National Carriers
All Risks, Ltd. Contact: Hollie Degutis Phone: 866-234-0955 ; Fax: 410-828-8179 Email: allrisksij@allrisks.com Website: www.allrisks.com ■ Markets Offered: Workers’ Comp, USL&H, DBA & MEL ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by class ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States excluding Monopolistic states (ND, OH, WA, WY) ■ Admitted Status: Admitted ■ Carriers Represented: Over 17 carriers represented American Team Managers Contact: Jennifer Truong Phone: 714-414-1238 ; Fax: 714-414-1299 Email: jennifer@atminsurance.com Website: www.atminsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $500 ■ Limits: $1,000,000/$2,000,000 ■ Brokered Business: Accepted ■ States Entered in: CA CO ID NM NV OR TX UT WY ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust, Republic Indemnity, Travelers, AIG, Employers, Markel, Cornerstone, Applied, BBSI
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2018 Workers’ Compensation Directory AMERISAFE Contact: Customer Service Phone: 800-897-9719 ; Fax: 800-450-1091 Email: aiic-mktg@amerisafe.com Website: www.amerisafe.com ■ Markets Offered: Hazardous Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: Most States AMIS/Alliance Marketing & Insurance Services, LLC Contact: Sean Nowell Phone: 800-843-8550 ; Fax: 800-573-8550 Email: snowell@amiscorp.com Website: www.amisinsurance.com ■ Markets Offered: Workers’ Comp for Private Investigators Ins. Adjusters, Security Guards & Alarm Co’s ■ Phone Inquiries: Accepted ■ Minimum Premium: $297 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Employers AmTrust North America Contact: Customer Service Phone: 877-528-7878 ; Fax: 800-487-9654 Email: marketing@amtrustgroup.com Website: www.amtrustnorthamerica.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 (autopay option requires a $600 minimum premium) ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Alliances With: Multiple regional alliances AmWINS Group, Inc. - 100 Offices Nationwide See Website for Locations, HQ - Charlotte, NC Contact: Marketing Department Phone: 704-973-3489 ; Fax: 704-943-9000 Email: allison.crisafulli@amwins.com Website: www.amwins.com ■ Markets Offered: Workers’ Comp, Excess Workers’ Comp, Non-Subscriber Programs for Texas Employers, DBA & MEL ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: Various ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: We have strategic partner- ships with many carriers. Inquire for details. AmWINS Program Underwriters Contact: Matt McCue or Eric Langlois Phone: 717-214-7622 (Matt) ; 802-264-9525 (Eric) Email: matt.mccue@amwins.com Email: eric.langlois@amwins.com Website: www.amwins.com/apu ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by state ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Various AM Best A- Rated or Higher 24 | INSURANCE JOURNAL | NATIONAL JUNE 4, 2018
AmWINS Specialty Casualty Solutions Contact: Terrence Butler Phone: 312-601-9295 Email: terrence.butler@amwins.com Website: www.amwins.com ■ Markets Offered: Workers’ Comp, Excess WC, Buffer Workers’ Comp, Healthcare, PEO/ Alternative Staffing Workers’ Comp, Guaranteed Cost, Loss Sensitive, Rating Plans, Multiple Classes ■ Phone Inquiries: Accepted ■ Minimum Premium: Various ■ Limits: Various ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Various AM Best A- Rated or Higher Apex Insurance Contact: Robert Hughes Phone: 210-812-5658 ; Fax: 210-340-8986 Email: hughes@apexinsurance.com Website: www.apexinsurance.com ■ Markets Offered: Excess WC, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Statutory and high excess ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Various National & Regional Carriers Appalachian Underwriters, Inc. Contact: Marketing Phone: 888-376-9633 ; Fax: 888-871-7644 Email: marketing@appund.com Website: www.appund.com ■ Markets Offered: Exclusive WC Programs for Construction, Healthcare, Temp Staffing, Trucking, USL&H, and Aviation Risks. New Ventures/No Prior Eligible. ■ Phone Inquiries: Accepted ■ On-line portal accessible ■ Minimum Premium: $1,000 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers Represented: Multiple A.M. Best ‘A’ Rated Carriers.
Applied Underwriters
Applied Underwriters, Inc. Insurance Journal Cover Tip
Live 7.875” x 7.5” Phone: 877-234-4450 ; Fax: 877-234-4452 Trim 8.125” x 7.75” Email: sales@auw.com Bleed 8.375”x 8” Website: www.auw.com ■ Markets Offered: Workers’ Comp, EPLI, E&O, D&O, Payroll ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 annual ■ Limits: none ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Alliances With: Applied Underwriters is a Berkshire Hathaway company For more info, check out our ad on pages 2 & 3 (National) & on the Back Cover. Applied Underwriters
AU Golf IJ Cover Tip
Contact: Sheila Gallagher
P: 707-395-0645
Email: sgallagher@auw.com
Arrowhead General Insurance Agency, Inc.
Contact: Marketing Dept. Phone: 800-669-1889 ; Fax: 619-881-8695 Email: MarketingInfo@ArrowheadGrp.com Website: www.ArrowheadGrp.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by Carrier ■ Brokered Business: Accepted ■ States Entered in: AZ CA NV ■ Admitted Status: Admitted ■ Carriers Represented: Multiple “A” rated carriers Artex Risk Solutions, Inc. Contact: Christine Mikel Phone: 630-438-1560 Email: Christine_Mikel@artexrisk.com Website: www.artexrisk.com ■ Markets Offered: Excess WC, Workers’ Comp, Guaranteed Cost & Alternative Risk (Captives) ■ Phone Inquiries: Accepted ■ Minimum Premium: $100,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Several All “A” rated or higher
Atlantic Risk Specialists, Inc. Contact: Kim Weisse Phone: 201-661-2303 ; Fax: 201-661-7822 Email: kweisse@arspecialists.com Website: www.arspecialists.com ■ Markets Offered: Excess Workers’ Comp, USL&H, Workers’ Comp and supporting lines. ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: Unlimited ■ Brokered Business: Accepted ■ States Entered in: All States except AK, HI, monopolistic states ■ Admitted Status: Admitted ■ Carriers Represented: Our team of WC experts have strong relationships with various carriers to assist you with simple or difficult, small or large, guaranteed cost or loss sensitive accounts.
Atlas General Insurance Services
Contact: Chuck Holdren, Executive Director of Programs and Marketing Phone: 858-529-6700 Email: chuck@atlas.us.com Website: atlas.us.com ■ Markets Offered: Workers’ Comp with broad underwriting appetite including healthcare, construction, transportation & agriculture (new ventures not eligible for these classes). ■ Phone Inquiries: Accepted ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple exclusive and wholesale “A” rated carriers For more info, see our ad on page 21 (National). INSURANCEJOURNAL.COM
2018 Workers’ Compensation Directory Benchmark Insurance Company Contact: Stuart Worthington Phone: 801-854-1330 ; Fax: 801-226-8022 Email: Sworthington@treancorp.com Website: www.benchmarkinsco.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Brokered Business: Not Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted
Berkshire Hathaway GUARD Insurance Companies Phone: 570- 825-9900 ; Fax: 570- 823-5930 Email: csr@guard.com Website: www.guard.com ■ Markets Offered: Workers’ Comp & related P&C lines. ■ Phone Inquiries: Accepted ■ Minimum Premium: No Standard Minimum ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: Nationwide ■ Alliances With: An internal affiliate and some other vendors that vary by state. Berkshire Hathaway Homestate Companies Contact: Customer Service Phone: 888-495-8949 ; Fax: 415-675-5482 Email: marketing-wc@bhhc.com Website: www.bhhc.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted BreckComp Program of Blue River Underwriters West Contact: Vicky Williams - Phone: 559-326-5775 Email: vwilliams@blueriveruw.com East Contact: Michael Mahoney - Cell: 561-254-9852 Email: mmahoney@blueriveruw.com Website: www.blueriveruw.com ■ Markets Offered: Monoline Workers’ Compensation - close to 400 eligible class codes ■ Phone Inquiries: Accepted ■ Limits: Statutory ■ Brokered Business: Accepted ■ Program Available in: Most States (excluding monopolistic and DE) ■ Admitted Status: Admitted ■ Carriers Represented: AM Best A Rated Carriers Breckenridge Insurance Services Email: partner@breckis.com Website: www.breckis.com ■ Markets: Guaranteed cost, excess for self-insureds, large deductible, alternative markets and more. ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: AIG, Amerisafe, AmTrust, BerkleyNet, Berkshire Hathaway, First Comp, Guard, Hartford, ICW, RTW, Safety National, Sentry, StarStone National, V3 Insurance Partners and more.
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Brownyard Group Contact: Jennifer Brownyard Phone: 800-645-5820 ; Fax: 631-666-5723 Email: info@brownyard.com Website: www.brownyard.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: EL up to $1M ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers: Arch Insurance Company, Employers Builders & Tradesmen’s Ins. Services, Inc. Contact: Jeremiah Azevedo Phone: 916-772-9200 ; Fax: 916-772-9292 Email: jazevedo@btisinc.com Website: www.btisinc.com ■ Markets Offered: Victory® Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Not Accepted ■ States Entered in: All States except AK, ND, OH, WA, WY ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust, ICW, CNA, Travelers, Zenith Care Providers Insurance Services, LLC Contact: Rich Meuret Phone: 972-427-4547 ; Fax: 800-224-7145 Email: cps-submissions@nsminc.com Website: www.ins-cps.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: None ■ Limits: EL $1M ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Texas - Open Safety Group accessed through Texas Mutual Charity First Insurance Services, Inc. Contact: Frank Tarantino Phone: 800-352-2761 ; Fax: 415-536-4033 Email: frank_tarantino@charityfirst.com Website: www.charityfirst.com ■ Markets Offered: Workers’ Comp, Nonprofits and Social Services ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted in most states ■ Carriers Represented: Nova, Berkshire Hathaway, ICW (California Only) CID Insurance Programs, Inc. Contact: Caesar Serrano Phone: 800-922-7283 ; Fax: 619-593-2008 Email: caesar@cidinsurance.com Website: www.cidinsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: AZ CA CO ID MD NE NM NV OR PA TN TX UT ■ Admitted Status: Admitted ■ Carriers Represented: Over 25 insurance companies
Commercial Sector Insurance Brokers
Contact: Carl Thompson Phone: 205-776-2625 ; Fax: 205-776-1619 Email: cthompson@comsectorins.com Website: www.comsectorins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: $1M/$1M/$1M ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Chartis, Am Trust, Crum & Forester, Guarantee Insurance Co., Munich, Zurich Commercial Sector is a National Wholesaler. We specialize in assisting retail agents solve P & C problems, including Workers’ Comp. Community Association Insurance Solutions, LLC Contact: Gary J. Deck, VP Sales and Distribution Phone: 888-833-4158 ; Fax: 888-833-4159 Email: gary@mgalive.com Website: www.caislive.com ■ Markets Offered: Workers’ Comp/Crime/D&O ■ Phone Inquiries: Accepted ■ Minimum Premium: $280 and up – Depending on the state ■ Limits: Statutory/$750K/Up to $5Mil ■ Brokered Business: Not Accepted ■ States Entered in: All States except ND,WY,OH,WA/ All States/All States except NV,LA,VT,CA(HOA Only) ■ Admitted Status: Admitted ■ Carriers Represented: PMA Companies/Various Comp Solutions Network, Inc. Contact: Dianne Favro Phone: 713-690-3500 Ext. 41 ; Fax: 713-690-8484 Email: diannef@compsolutionsnetwork.com Website: www.compsolutionsnetwork.com ■ Markets Offered: Monoline Workers’ Comp, Non- Subscriber Programs for Texas Employers ■ Phone Inquiries: Accepted ■ Minimum Premium: $250 ■ Limits: $500K to $10M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers (WC:) Accident Fund, American International, Amerisafe, AmTrust, Berkshire Hathaway, Service Lloyds, State National, Markel (First Comp), Texas Mutual, Worth Casualty Insurance. CompWest Insurance Company Contact: Kristi Houston Phone: 714-641-9570 Email: khouston@compwestinsurance.com Website: www.compwestinsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $1,500 ■ Limits: $1.5M ■ Brokered Business: Not Accepted ■ States Entered in: AZ CA CO ID NV OR UT ■ Admitted Status: Admitted
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2018 Workers’ Compensation Directory Continental Brokers, Inc. Contact: Collier Simpson Phone: 866-386-4136 ; Fax: 601-898-4793 Email: cs@continentalbrokers.biz Website: www.continentalbrokers.biz ■ Markets Offered: Health Insurance, Managed Care, HMO, Short Term Medical, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: CNA, Hartford, Assurant, BCBS (some states) United HealthCare, Colonial Continental Underwriters, Inc. Contact: C. Preston Herrington, III Phone: 804-643-7800 ; Fax: 804-643-5800 Email: preston@contund.com Website: www.contund.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: 500/500/500 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple Costanza Insurance Agency, Inc. Contact: Brian Costanza Phone: 800-346-0942 ; Fax: 972-991-2139 Email: b.costanza@cia-tx.com Website: www.costanzainsurance.com ■ Markets Offered: Workers’ Comp, GL, Comm Auto, Crime, EPL, EBL, Umbrella ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Carriers Represented: Zurich Insurance Co. Don R. Jensen & Company Contact: Don R. Jensen & Company Phone: 630-734-3240 ; Fax: 630-734-3250 Email: apps@drjco.com Website: www.drjco.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: None ■ Brokered Business: Not Accepted ■ States Entered in: All States except Monopolistic & AK, HI ■ Admitted Status: Admitted ■ Carriers Represented: Multiple AM Best “A” Rated Carriers Empire Pacific Sovereign, LLC Contact: Rosemary Rich ; Adam Wooten Phone: 925-300-1007 or 925-300-1001 Email: rosemary.rich@epsinsurance.com Email: adam.wooten@epsinsurance.com Website: www.epsinsurance.com ■ Markets Offered: Workers’ Comp (Guaranteed Cost, Deductible Programs, Foreign), Property & Casualty Lines ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by Class ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple Carriers 26 | INSURANCE JOURNAL | NATIONAL JUNE 4, 2018
Empire Underwriters, LLC
Contact: Underwriting Toll Free: 800-758-8113 Phone: 813-448-9300 ; Fax: 813-448-9310 Email: quotes@empireunderwriters.com Website: www.empireunderwriters.com ■ Markets Offered: Standalone Workers’ Comp, Staffing Workers’ Comp, Alternative Risk, PEO ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Not Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted & Non-admitted ■ Carriers: ACE/Chubb, AIG, Century Surety, Employers, Benchmark, Berkshire Hathaway Guard, ICW, Kinsale, Lloyds of London, RLI, RTW, Seneca Specialty, Sompo, Starstone, and many others. Empire Underwriters is National MGA, Insurance Wholesaler, and Excess & Surplus Lines facility. Our organization is dedicated to the success of agents and brokers nationwide and featuring Online Indications and Quotes for several products.
Flow Insurance Services Contact: Abbe Sultan Phone: 855-368-5502 Email: abbe@flowinsurance.com Website: www.flowinsurance.com ■ Markets Offered: Excess WC, Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $750 ■ Limits: $1MM ■ Brokered Business: Accepted ■ States Entered in: CA HI OR TX WA ■ Carriers Represented: National Liability & Fire, CNA, Amtrust Friedlander Group, Inc. Contact: Cosmo Preaito Phone: 914-694-6000 Ext. 203 ; Fax: 914-694-6004 Email: cosmop@friedlandergroup.com Website: www.friedlandergroup.com ■ Markets Offered: Workers’ Comp & Multiple Classes ■ Phone Inquiries: Accepted ■ Minimum Premium: $3,500 / $2,500 Restaurants ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Alliances With: AmTrust, Employers, New York State Insurance Fund
FUBA Workers’ Comp
Employers Assurance Company (EAC) Contact: Customer Service Phone: 800-700-9113 ; Fax: 888-527-3422 Email: customersupport@employers.com Website: www.employers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: Most States
Contact: Alicia Hamilton Phone: 888-262-4483 ; Fax: 888-871-7474 Email: fubawc@fubaworks.com Website: www.fubaworkerscomp.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Brokered Business: Accepted provisionally ■ States Entered in: FL For more info, see our ad on pg 3 (FL supplement)
Employers Compensation Insurance Co. (ECIC) Contact: Customer Service Phone: 800-700-9113 ; Fax: 888-527-3422 Email: customersupport@employers.com Website: www.employers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: Most States
G.J. Sullivan Company Contact: Debbie Mesko Phone: 714-221-9500 ; Fax: 714-876-2252 Email: MeskoD@gjs.com Website: www.gjsullivan.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Not Accepted ■ States Entered in: All States except NJ & NY ■ Admitted Status: Admitted
Employers Insurance Company of Nevada (EICN) Contact: Customer Service Phone: 800-700-9113 ; Fax: 888-527-3422 Email: customersupport@employers.com Website: www.employers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: NV Employers Preferred Insurance Company (EPIC) Contact: Customer Service Phone: 800-700-9113 ; Fax: 888-527-3422 Email: customersupport@employers.com Website: www.employers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: Most States
Gorst & Compass Insurance Contact: Paul Laufer Phone: 818-507-1980 ; Fax: 818-545-3818 Email: plaufer@gorstcompass.com Website: www.gorstcompass.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: AZ CA NV OR ■ Admitted Status: Admitted ■ Carriers Represented: 20+ Markets
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2018 Workers’ Compensation Directory Grand General Agency Contact: Drew Viersen or Dan Carter Phone: 800-869-2022 ; Fax: 888-767-0826 Email: commercial@thehelpfulpeople.com Website: www.thehelpfulpeople.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by class ■ Limits: $1,000,000/1,000,000/1,000,000 ■ Brokered Business: Not Accepted ■ States Entered in: All States except Monopolistic & AK, AL, HI ■ Admitted Status: Admitted ■ Carriers Represented: Various Hamond Safety Management, LLC Contact: Robert A. Stamm Phone: 516-762-4219 ; Fax: 516-488-2167 Email: rstamm@hamondgroup.com Website: www.hamondgroup.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $15,000 ■ Limits: Unlimited by state statute ■ Brokered Business: Accepted ■ States Entered in: NY ■ Admitted Status: Admitted ■ Carriers Represented: NYSIF Houston International Insurance Group Contact: Cooper Wallach Phone: 713-935-7414 ; Fax: 713-467-8238 Email: cwallach@hiig.com Website: www.hiig.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $100 ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: TX, OK, NM, and most other states ■ Admitted Status: Admitted ■ Carriers Represented: Great Midwest Insurance Company ICW Group Insurance Companies Contact: Trisha Rule Phone: 800-877-1111 Email: enterprisemarketingteam@icwgroup.com Website: www.icwgroup.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $2,500; $1,500 for Instant Quote ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: CA FL GA IA IL IN KY MD MI MN MO NC NJ NV OK PA SC TN TX VA WI ■ Admitted Status: Admitted Insurance Center Special Risks, Ltd. Contact: Ludmila Koval Phone: 888-773-7475 ; Fax: 413-781-0050 Email: lkoval@specilarisksltd.com Website: www.specialrisksltd.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted | 413-750-7349 ■ Minimum Premium: $350 ■ Brokered Business: Not Accepted ■ States Entered: CT MA ME NH NY PA RI VT ■ Admitted Status: Admitted ■ Carriers Represented: The Hartford, Guard Insurance Group, AmTrust, Employers
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International Excess Companies Contact: Kenneth Kukral, CIC Phone: 800-937-3497 Ext. 2079 ; Fax: 216-342-7442 Email: kennethkukral@intlxs.com Website: www.intlxs.com ■ Markets Offered: Excess Workers’ Comp, PEOs, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Statutory + increased limits & excess limits ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic (monoline OH stop gap available) ■ Admitted Status: Admitted ■ Carriers Represented: Various IPA Risk Management, LLC Contact: Greg or Chase Phone: 201-797-1084 Ext. 201 or 202 ; Fax: 201-797-1076 Email: g. or c.heitmann@ipariskmanagement.com Website: www.ipariskmanagement.com ■ Markets Offered: Health Insurance, HMO, Managed Care, PEO, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $25,000 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: Most States & Multiple states on one account. ■ Admitted Status: Admitted & Non-admitted ■ Alliances With: Yes - health benefits are integrated with workers’ comp benefits Irving Weber Associates, Inc. Contact: Christine Brazier Phone: 800-243-1811 Ext. 8207 ; Fax: 631-913-6035 Email: Info@iwains.com Website: www.iwains.com ■ Markets Offered: All Lines including Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Various
Izzo Insurance Services, Inc.
Contact: Mike Jones Phone: 800-800-1704 ; Fax: 630-582-2803 Email: MJones@IzzoInsurance.com Website: www.IzzoInsurance.com ■ Markets Offered: Workers’ Compensation, Exclusive Security Guard Workers’ Compensation ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: Varies ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmTrust Companies, BerkleyNet, Chubb, CNA, Crum & Forster, Employers Ins. Group, Hartford Ins. Group, ICW Group, Meadowbrook, State Auto, Travelers Ins. Co., Zenith Insurance
Jimcor Agencies Contact: Christopher Hudson Phone: 201-573-8200 Ext. 1204 ; Fax: 201-573-8820 Email: chudson@jimcor.com Website: www.jimcor.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: All Nonmonopolistic States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmTrust, Applied, Employers, Hanover, National Liability & Fire, Travelers, Crum & Forster, Zurich, Falls Lake, OneBeacon, SouthEast Personnel Leasing Keating Brokerage Contact: Marketing Phone: 602-325-5582 ; Fax: 602-325-5591 Email: info@tkgins.com Website: www.keating.insurance ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Many King Insurance Support Systems Contact: Laura Fondarella Phone: 800-488-4096 ; Fax: 949-488-2259 Email: Marketing@kinginsuranceca.com Website: www.kinginsuranceca.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: Varies ■ Brokered Business: Accepted ■ States Entered in: Western States ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust, Travelers, Berkshire Hathaway KZ Insurance Brokerage, LLC Contact: Kathy Zeanah Phone: 530-926-6030 ; Fax: 530-926-6040 Email: info@kzib.com Website: www.kzib.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: BHHC- Oak River, Cypress, Redwood, Travelers and Others. Libertate Insurance, LLC Contact: Sharlie Reynolds Phone: 305-495-5173 ; Fax: 407-613-5477 Email: sreynolds@libertateins.com Website: www.libertateins.com ■ Markets Offered: EPLI, PL/GL, Workers’ Comp, Employee Benefits, Commercial Auto/Fleet ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by program ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Multiple
JUNE 4, 2018 INSURANCE JOURNAL | NATIONAL | 27
2018 Workers’ Compensation Directory LIG Marine Managers Contact: Karen Tischler Phone: 727-578-2800 ; Fax: 727-578-9977 Email: KLT@LIGMarine.com Website: www.LIGMarine.com ■ Markets Offered: USL&H (Longshore), Workers’ Comp, MEL ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Various LowRateWorkComp Contact: Paul Farhood Phone: 850-625-5190 ; Fax: 888-625-2628 Email: LowRateWorkComp@gmail.com Website: www.LowRateWorkComp.com ■ Markets Offered: Health Insurance, Payroll, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $4,000 ■ Brokered Business: Accepted ■ States Entered in: All States except WA ■ Alliances With: ASO payroll model in Califorina 4 PEOs – Writing All classes depending on state.
LUBA Workers’ Comp
Contact: Trent Bondy Phone: 888-884-5822 ; Fax: 225-389-5822 Email: lubasales@lubawc.com Website: www.lubawc.com ■ Markets Offered: USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,000 ■ Limits: $1M/1M/1M ■ Brokered Business: Not Accepted ■ States Entered in: AR LA MS TX ■ Admitted Status: Admitted For more info, see our ad on page 9 (S. Central). Markel Specialty Contact: Dan Kennedy Phone: 804-217-8820 Email: customerservice2@markelcorp.com Website: www.markelinsurance.com/smallbusiness ■ Markets Offered: Workers’ Comp, BOP and specialty package policies ■ Phone Inquiries: Accepted ■ Minimum Premium: N/A ■ Brokered Business: Limited ■ States Entered in: Most. See website for details. ■ Admitted Status: Admitted MarketScout Chris Kerr - 972-934-4206 ; Dan Fouts - 972-934-4231 Jon Maloney - 770-262-0383 ; John McGee -570-554-4506 Patricia Haas - 972-934-4216 ; Amber Hunter - 972-934-4209
Email: workcomp@msunderwriters.com ■ Markets: USL&H, Workers’ Comp, Oil & Gas, Social Svcs, Transportation, Construction, Healthcare & Manufacturing, debit experience mod accounts ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers: Over 20 national, regional & specialty carriers
28 | INSURANCE JOURNAL | NATIONAL JUNE 4, 2018
MartinoWest Business & Insurance Solutions Phone: 844-464-2667 ; Fax: 916-751-5911 Email: info@martinowest.com Website: www.martinowestprograms.com ■ Markets Offered: PEO, Workers’ Comp, PayGo ■ Phone Inquiries: Accepted ■ Minimum Premium: N/A ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: All Carriers
Maverick Commercial Insurance Services Contact: Rick Bass or Mario Gomez Phone: 818-223-0011 ; Fax: 818-223-0012 Email: info@maverickinsure.com Website: www.maverickinsure.com ■ Markets: Workers Comp, Construction Program, Large Deductible & Retro Programs, Excess WC, USL&H, PEO & Aviation ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: $1mil/$1mil/1mil ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: See website for full list
Maxim Insurance Group Contact: Scott Carde Phone: 813-689-5105 ; Fax: 813-354-2336 Email: mail@maximinsurancegroup.com Website: www.maximinsurancegroup.com ■ Markets Offered: Workers’ Compensation, DBA, Repatriation & Foreign Coverage, USL&H ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,500 ■ Limits: Statutory and up to $2M ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers: AmTrust, Associated Industries, Bridgefield Casualty, Bridgefield Employers, Business First, AIG, OptaComp, Retail First, Rochdale, Security National, Technology, Wesco McClelland and Hine, Inc. Contact: Amicia Hine Phone: 210-293-6240 ; Fax: 210-293-6318 Email: amicia@mhi-mga.com Website: www.mhi-mga.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: AL GA TX ■ Admitted Status: Admitted & Non-admitted ■ Carriers: Travelers, AIG, First Comp, Redpoint McLeckie Insurance Group Contact: Bill McLeckie Phone: 903-897-9090 ; Fax: 760-462-1696 Email: bill@mcleckie.com Website: www.mcleckie.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Brokered Business: Accepted ■ States Entered in: AR FL LA OK TN TX ■ Admitted Status: Admitted ■ Carriers Represented: Travelers and various others.
Meadowbrook Insurance Group Contact: Archie McIntyre - 800-482-2726 Email: programs@meadowbrook.com Website: www.meadowbrook.com ■ Markets Offered: Excess Workers’ Compensation, Specialty/Niche Programs, Workers’ Compensation ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000,000 ■ Limits: Varies by Program ■ Brokered Business: Yes; Varies by Program ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers: Star Ins. Co, Williamsburg National Ins. Co, Ameritrust Ins. Corp, ProCentury Ins. Co. Method Insurance Services Contact: Rob Hynek - Phone: 888-981-1702 Email: submissions@methodinsurance.com Website: www.methodinsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ General Min Premium: $1k ; Contractor Min: $5k ; Tucking & Staffing: $10k ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: Agency Appointments in AZ CA CO IA IL KS MO NE NV OK ■ Admitted Status: Admitted carriers only ■ Carriers Represented: AIG, AmTrust, Amerisafe, BerkelyNet, BHHC, Employers, Guard, Meadowbrook, National Liability & Fire, QBE, Risk Administration Services, RTW, StoneTrust, V3
Midlands Management Corp.
Oklahoma City, OK & Dallas, TX Phone: 800-800-4007 ; Fax: 405-840-5432 Email: marketing@midman.com Website: www.midlandsmgt.com ■ Markets Offered: Excess Workers’ Comp, Primary Workers’ Comp, Texas Non-Subscriber, Public Entity, Occupational Accident, Property & Casualty Lines ■ Phone Inquiries: Accepted ■ Minimum Premium: As low as NCCI Minimums ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: AM Best “A” Rated Carriers Midwest Employers Casualty Contact: Renée Lunceford Phone: 636-449-7022 ; Fax: 636-449-7199 Email: rlunceford@mwecc.com Website: www.mwecc.com ■ Markets Offered: Workers’ Compensation: Excess Workers’ Compensation, Assumed Reinsurance, Group Captives, Large Deductible ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by risk ■ Limits: Up to Statutory ■ Brokered Business: Accepted ■ States Entered in: All States, District of Columbia ■ Admitted Status: Admitted
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2018 Workers’ Compensation Directory
Midwestern Insurance Alliance, LLC Contact: Theresa Bailey Phone: 619-450-1739 ; Fax: 502-426-7067 Email: tbailey@mwiainsurance.com Website: www.midwesterninsurance.com ■ Markets Offered: Workers’ Comp, Trucking, Milk Haulers, Fuel Haulers, Consumer Recycling, Charter Bus, Limousine, Parcel Delivery, Wood Products ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple “A” rated carriers MMA Programs, a div. of Marsh & McLennan Contact: Craig Moore Phone: 858-875-3067 ; Fax: 858-768-5237 Email: craigm@bandbprograms.com Website: www.mma-programs.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $800 ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted NBIS Contact: Chris Fiorentino Phone: 770-257-1502 ; Fax: 770-257-1500 Email: cfiorentino@nbis.com Website: www.NBIS.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: 100/500/100 500/500/500 1mm/1mm/1mm ■ Brokered Business: Accepted ■ States Entered in: All States except NY ■ Admitted Status: Admitted all states Networked Insurance Agents Contact: Tam Duong Phone: 800-682-8476 ; Fax: 888-843-2535 Email: tam.duong@networkedins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $250 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: AmTrust, Applied Underwriters, ICW, The Hartford, Travelers, Preferred Employers, Guard, Everest, CNA, First Comp, Employers, Fireman’s Fund, Liberty Mutual, ACE, AIG, Chubb, Zenith, PacificComp
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New Age Underwriters Agency, Inc. Contact: Ed Sharples Phone: 516-488-2312 ; Fax: 516-488-2508 Email: ESharples@NewAgeIns.com Website: www.newageins.com ■ Markets Offered: Excess Workers’ Comp, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: Varies by State ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Amtrust, Employers, Guard, Ameisafe,GuideOne, National Liability, others
Number One Insurance Agency, Inc. Contact: Michelle St. Angelo Phone: 508-634-7364 ; Fax: 508-634-2930 Email: mstangelo@massagent.com Website: www.massagent.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $100 ■ Limits: 100 / 500 / 100 + ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust Group, Norfolk & Dedham Group, The Hartford
Norman-Spencer Agency, Inc. Contact: David George Phone: 937-432-3513 ; Fax: 937-432-1635 Email: davidgeorge@norman-spencer.com Website: www.norman-spencer.com ■ Markets Offered: Excess Workers’ Comp, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmTrust, Crum & Forster, Everest
Omega Insurance Solutions Contact: Keith Steverson Phone: 866-997-0711 ; Fax: 888-611-9598 Email: wc@omega4agents.com Website: www.Omega4agents.com ■ Markets Offered: USL&H, Workers’ Comp, Hard- to-Place WC, GL, Commercial Auto, Small BOPs ■ BOP available in all states including Florida. ■ Exclusive Domestic Employees Workers Comp program ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: WC standard limits or increased to $1M ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: 17 WC carriers/4 PEOs – Writing most classes depending on state.
Normandy Insurance Company
Oryx Insurance Brokerage, Inc. Contact: Tom Pasquale Phone: 607-724-0173 ; Fax: 607-724-7266 Email: marketing@oryxinsurance.com Website: www.oryxinsurance.com ■ Markets Offered: Workers’ Compensation, GL, BA ■ Phone Inquiries: Accepted ■ Minimum Premium: $15,000 ■ Brokered Business: Not Accepted ■ States Entered in: NY – Other States Eligible: CT DE IL MD NJ PA VA VT ■ Admitted Status: Admitted ■ Carriers Represented: Various A rated Carriers
Contact: Laura Lieberman, Marketing Phone: 866-688-6448 ; Fax: 866-688-6448 Email: applications@normandyins.com Website: www.normandyins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Standard ■ Brokered Business: Accepted ■ States Entered in: FL GA PA VA ■ Admitted Status: Admitted ■ Alliances With: Various Brokers / Direct appointment may be available For more info, see our ad on page 9 (Southeast) ; page 6 (East). NSM Insurance Group Contact: Natalie Miele Phone: 610-941-9514 ; Fax: 610-941-9889 Email: nmmiele@nsminc.com Website: www.nsminc.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: 10 National Carriers
Pacific Excess Insurance Marketing
Contact: Barry Colburn Phone: 800-222-5582 ; Fax: 714-228-7899 Email: Marketing@pacificexcess.com Website: www.pacificexcess.com ■ Markets Offered: Workers’ Comp, All Property & Casualty Risks ■ Phone Inquiries: Accepted ■ Minimum Premium: As Low As $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: CA AZ NV ■ Admitted Status: Admitted ■ Carriers: Multiple Carriers Represented Pacific Excess Insurance Marketing is a Wholesaler/General Agent with access to many Standard, Surplus Lines and Workers’ Compensation Markets.
JUNE 4, 2018 INSURANCE JOURNAL | NATIONAL | 29
2018 Workers’ Compensation Directory PEO Brokers Group
Contact: Steve Brown Phone: 877-810-9355 Email: swbrown@peobrokersgroup.com Website: www.peobrokersgroup.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple Plimsoll Specialty Markets, LLC Contact: Michael Clark Phone: 770 933-6925 Email: mclark@plimsollspecialty.com Website: www.plimsollspecialty.com ■ Markets Offered: Workers’ Comp, Aircraft Hull and Liability, Aviation General Liability and Aviation/Aerospace Products Liability ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: $2,000,000,000 ■ Brokered Business: Accepted ■ States Entered in: All Major North American Aviation/ Aerospace Underwriters Plimsoll Specialty Markets is an aviation specialty wholesale brokerage staffed by a seasoned group of Aviation and Aerospace Insurance executives. We have access to workers’ compensation markets for any aviation or aerospace related businesses from flight crews to aircraft repair and service to aerospace manufacturing and airport and airline service contractors.
PMC Insurance Group
Contact: David Malloy Phone: 877-762-2667 ; Fax: 781-449-7889 Email: dmalloy@pmcinsurance.com Website: www.pmcinsurance.com ■ Markets Offered: Workers’ Comp (General Industry), Workers’ Comp for Temp Staffing and Home Healthcare ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Carriers: AIG, Amtrust, BerkleyNet, Hartford, Guard, Guarantee, Berkshire Hathaway, others For more info, see our ad on page 19 (National).
Program Brokerage Corporation Contact: Cynthia O’Brien, President - Wholesale Div. Phone: 866-607-8370 ; Fax: 212-338-2910 Email: info@programbrokerage.com Website: www.programbrokerage.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmTrust, C&F, CNA, Everest, Guard, Hanover, Hartford, Star, Travelers, Zurich Red Rock Financial Group, Inc. DBA: The Workers Compensation Insurance Place Contact: Lawrence Levine Phone: 520-975-2505 Email: info@redrockfg.com Website: www.redrockfg.com ■ Markets Offered: Workers’ Comp (High Risk) (High mode 1.75+): Roofers, Framers, Excavators, Truckers and many other class codes. ■ Phone Inquiries: Accepted ■ Minimum Premium: $7,500 ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: Majority of states 42 ■ Admitted Status: Admitted & Non-admitted ■ Alliances With: PEOs
RIC Insurance General Agency, Inc.
Contact: WC Underwriter Phone: 888-693-7892 Ext.10 ; Fax: 707-335-8651 Email: workcomp@ric-ins.com Website: www.ric-ins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Brokered Business: Not Accepted ■ States Entered in: All States except HI, ND, OH, WA, WY ■ Admitted Status: Admitted ■ Carriers Represented: CA State Compensation Insurance Fund, AmTrust, Employers, Everest, Guard, Hartford, ICW, Markel, Travelers and Zenith.
Risk Innovations, LLC Preferred Property Programs
Contact: Carmen Suarez Phone: 888-548-2465 ; Fax: 732-946-0547 Email: info@ppp-quotes.com Website: www.ppp-quotes.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $300 ■ Limits: 100/500/100 ; 500/500/500 ; 1,000/1,000/1,000 ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers Represented: A- X rating by AM Best Specializing in the commercial real estate marketplace. We offer Umbrellas, EIL & WC for Condos, HOA’S, PUD’S, Apartments and Timeshare Associations. We also offer umbrellas and B&M policies for commercial lessors risk only (LRO). 30 | INSURANCE JOURNAL | NATIONAL JUNE 4, 2018
Contact: Jeff Sandy Phone: 816-251-1608 ; Fax: 866-262-5802 Email: jeff@wc.guru Website: www.riskinnovationsllc.com ■ Markets Offered: Excess Workers’ Comp, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: State min. ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Over 20 Risk Innovations is a National Wholesaler that specializes in Workers’ Compensation and Personal Lines Insurance. They offer custom solutions for your clients by providing unparalleled underwriting expertise and carrier exclusive partnerships with 20 WC markets available for most risks. They specialize in hard to place accounts with competitive pricing.
Risk Placement Services, Inc. Phone: 866-595-8413 Email: Contact_Us @RPSins.com Website: www.rpsins.com ■ Markets Offered: Excess WC, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: ACE, AIG, CNA, Hartford, Safeco & Zurich RMIS Contact: Ben Bailey Phone: 714-738-1383 ; Fax: 714-921-1160 Email: WC@RMISmga.com Website: www.RMISmga.com ■ Markets: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: All ■ Brokered Business: Accepted ■ States Entered in: AZ CA IA IL IN MN MO NE NM NV TX WI ■ Admitted Status: Admitted ■ Carriers Represented: Employers, AmTrust, Travelers, FirstComp/Markel, National Fire Russell Bond & Co., Inc. Contact: Rick Smith Phone: 800-333-7226 ; Fax: 800-677-6779 Email: rsmith@russellbond.com Website: www.russellbond.com ■ Markets Offered: 24 Hour Policy, Excess EL Public Entities (NY Only), Excess Workers’ Comp, Health Ins, HMO, Managed Care, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M EL - Statutory WC ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmTrust, Crum & Forster, Lion, and Starr. RWISI Group Contact: Randy White Phone: 813-220-9220 ; Fax: 305-436-3786 Email: randy@rwisi.com Website: www.rwisi.com ■ Markets Offered: USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $25,000 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted
Safety National Casualty Corporation
Contact: Karla Antrobus Phone: 888-995-5300 ; Fax: 314-995-3843 Email: karla.antrobus@safetynational.com Website: www.safetynational.com ■ Markets Offered: Excess WC, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by state ■ Limits: Varies by state ■ Brokered Business: Accepted ■ States Entered in: All States & Canada ■ Admitted Status: Admitted For more info, see our ad on page 9 (National).
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2018 Workers’ Compensation Directory SDS General Insurance Services, Inc. Contact: Richard Luna Phone: 714-525-0036 ; Fax: 714-525-0397 Email: richard@sdsins.com Website: www.sdsins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $1,000 ■ Limits: $1,000,000 ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Oakriver/Cypress/Redwood, Republic Indemnity, First Comp, Employers Compensation, AmTrust North America SouthEast Personnel Leasing Inc Contact: Emanuel Molina Phone: 727-692-8801 ; Fax: 727-682-0182 Email: emanuel.m@spli.com Website: www.mynewmarkets.com/companies/spli ■ Markets Offered: Workers’ Comp, USL&H ■ Phone Inquiries: Accepted ■ Minimum Premium: ■ Limits: $ 1,000,000 ■ Brokered Business: Accepted ■ States Entered in: AL AZ CA CO FL GA IL LA MD MS NC NJ NM NV NY OK PA SC TN TX VA SFA-5Star Specialty Programs Contact: Dee Dee Bloom Phone: 702-740-8470 ; Fax: 702-740-8472 Email: dd.bloom@5starsp.com Website: www.5starsp.com/SFA/default.aspx ■ Markets Offered: Excess Workers’ Comp, Large Deductibles, Buy-Down/Layer Coverage, Self- Insurance Bonds, Cash Flow Only Policies ■ Phone Inquiries: Accepted ■ Minimum Premium: $15,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: All Excess WC Carriers Sports & Fitness Insurance Corporation (SFIC) Contact: Kim Tucker Phone: 800-844-0536 ; Fax: 601-853-6141 Email: askus@sportsfitness.com Website: www.sportsfitness.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Liberty Mutual, Hartford
State Compensation Insurance Fund of California Contact: Customer Service Phone: 888-STATEFUND (888-782-8338) Email: webmaster@scif.com Website: www.statefundca.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Depends on class ■ Brokered Business: Accepted ■ States Entered in: CA ■ Alliances With: State Fund Medical Provider Network For more info, check out our ad on page 3 (West).
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Texas Mutual Insurance Company
StateFund First Contact: Frank Tarantino Phone: 415-536-8438 ; Fax: 415-536-6003 Email: frank_tarantino@statefundfirst.com Website: www.statefundfirst.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: CA ■ Admitted Status: Admitted ■ Carriers Represented: California State Compensation Insurance Fund, ICW, Berkshire Hathaway Stonehenge Insurance Solutions, Inc. Contact: Troy Reynolds Phone: 561-746-5027 ; Fax: 561-746-5028 Email: treynolds@stonehengeis.com Website: www.stonehengeis.com ■ Markets Offered: Most Commercial Lines & Workers’ Comp for PEO and Staffing Companies ■ Phone Inquiries: Accepted ■ Minimum Premium: $150,000 ■ Limits: Varies based on product ■ Brokered Business: Accepted ■ States: All States except Monopolistic and Alaska
Contact: Customer Service Phone: 800-859-5995 ; Fax: 512-224-8585 Email: information@texasmutual.com Website: www.texasmutual.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Competitive premiums ■ Brokered Business: Accepted ■ States Entered in: TX For more info, see our ad on pg 5 & 12 (S. Central). Texas Oil & Gas Association Workers’ Comp Safety Group Contact: Jim Sierra Phone: 512-478-6631 ; Fax: 512-472-3859 Email: jsierra@txoga.org Website: www.txogainsurance.com ■ Markets Offered: Oil & Gas Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $0 ■ Brokered Business: Accepted ■ States Entered in: TX ■ Admitted Status: Admitted ■ Carriers Represented: Texas Mutual Ins. Company The American Equity Underwriters, Inc. Contact: Marketing Department Phone: 251-690-4230 Email: aeu.marketing@amequity.com Website: www.amequity.com ■ Markets Offered: USL&H ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: Federal Acts - Statutory, EL - $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: N/A, U.S. Dept. of Labor Approved ■ Carriers Represented: American Longshore Mutual Association (ALMA) a U.S. Department of Labor approved group mutual association
SWBC Contact: Lisa Pinto Phone: 210-525-1241 ; Fax: 210-321-7530 Email: swbcinfo@swbc.com Website: www.swbc.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: No minimum ■ Limits: 100/100/500 minimum ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: All Major Carriers Target Managers Insurance Services, Inc. Contact: Michael Kiger Phone: 702-588-5300 ; Fax: 702-588-5310 Email: Submissions@targetmanagers.com Website: www.targetmanagers.com ■ Markets Offered: USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, Amerisafe, AmTrust, California Insurance Company, Continental Indemnity, Employers Compensation, National Liability, Zurich & many others.
Tejas American General Agency
The Mechanic Group, Inc.
Contact: Bart Koch Phone: 888-999-8242 ; Fax: 512-342-2803 Email: marketing@taga1.com Website: www.taga1.com ■ Markets: USL&H, Workers’ Comp, Non-Subscription ■ Phone Inquiries: Accepted ■ Minimum Premium: $250 ■ Limits: $1M/$1M/$1M ■ Brokered Business: Not Accepted ■ States Entered in: TX AZ AR CA CO FL KS LA MI MO NV NM NC OK SD TN WA ■ Admitted Status: Admitted ■ Carriers: Accident Fund, ACE USA, AIG, Amerisafe, AmTrust, Employers, Essex Ins Co, First Comp, Great American, Hanover, ICW Group, Redpoint, Travelers, Service Lloyds, Scottsdale For more info, see our ad on page 7 (S. Central) & page 5 (Southeast).
Contact: Marc Katz Phone: 845-735-0700 ; Fax: 845-735-8383 Email: mkatz@mechanicgroup.com Website: www.mechanicgroup.com ■ Markets Offered: Workers’ Comp and all other lines for Security Guards, Alarms and Investigators. ■ Phone Inquiries: Accepted ■ Minimum Manual Premium: $3,500 ■ Limits: All ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: The Hartford, Berkshire Hathaway, AIG
JUNE 4, 2018 INSURANCE JOURNAL | NATIONAL | 31
2018 Workers’ Compensation Directory The MEMIC Group Contact: Marcia Hartt Phone: 207-791-3370 Email: mhartt@memic.com Website: www.memic.com/thechoice ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Not Accepted ■ States Entered in: All Non-monopolistic States ■ Admitted Status: Admitted theWCmarketplace.com Phone: 704-574-1422 ; Fax: 800-603-1702 Email: service@theWCmarketplace.com Website: theWCmarketplace.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: NC & SC ■ Admitted Status: Admitted ■ Carriers Represented: 3 dozen - One-stop shopping Total Program Management Contact: Matt Blake Phone: 631-676-1531 ; Fax: 888-773-2239 Email: matthew.blake@tpmrisk.com Website: www.tpmrisk.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Limits: Varies ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust, Berkshire Hathaway Homestate, Pharmacists Mutual, Guard, American Mining U.S. Risk Contact: Ralph Tribendis Phone: 804-441-6126 Email: ralph.tribendis@usrisk.com Website: www.usrisk.com ■ Markets Offered: Workers’ Comp (All Lines), Monoline Workers’ Comp, Excess Workers’ Comp, USL&H, Occupational Accident, Non-Subscriber ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Limits: Varies ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: We access Work Comp from 25+ Carriers
32 | INSURANCE JOURNAL | NATIONAL JUNE 4, 2018
Universal Insurance Programs Contact: Jenny Bortman Phone: 800-844-2101 ; Fax: 866-512-2272 Email: info@uiprograms.com Website: www.uiprograms.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted
V3 Insurance Partners, LLC Contact: Pam Wagner Phone: 215-600-0749 ; Fax: 215-475-3959 Email: Pam.Wagner@v3ins.com Website: www.V3ins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: Standard statutory limits ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted
Work First Casualty Company Contact: Bruce Winterrowd; VP of Underwriting/Mktg Phone: 630-416-7954 Email: bwinterrowd@workfirstcasualty.com Website: www.workfirstcasualty.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $100,000 ■ Limits: $1,000,000 Employer’s Liability ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic or ME, NH and VT ■ Admitted Status: Admitted ■ Alliances With: American Staffing Association, Broadspire
World Wide Specialty Programs
Contact: Dorothy Taylor ; Robert Thompson Phone: 800-245-9653 or 631-390-0900 Fax: 631-390-0922 Email: dtaylor@wwspi.com ; rthompson@wwspi.com Website: www.wwspi.com ■ Markets Offered: Workers’ Comp, All other Staffing Lines ■ Phone Inquiries: Accepted ■ Minimum Premium: Call to discuss ■ Limits: State Mandated ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Zurich World Wide Specialty Programs has lead the market with the most comprehensive program for the staffing industry for over 50 years. Our partnership & understanding of how the staffing industry works allows us to be the premier source for all Staffing insurance lines including Staffing Workers’ Comp.
Wrap Up Insurance Solutions Contact: Brian Billhartz Phone: 636-489-0185 ; Fax: 636-536-7473 Email: bbillhartz@wrapupsolutions.com Website: www.wrapupsolutions.com ■ Markets Offered: Excess Workers’ Comp, Workers’ Comp, Wrap Ups ■ Phone Inquiries: Accepted ■ Minimum Premium: N/A ■ Limits: $100MM ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Zurich, AIG, ACE, Liberty Mutual, ARCH, Old Republic, Travelers
Worldwide Facilities, LLC
Contact: Todd Pollock Phone: 401-500-5911 Email: tpollock@wwfi.com Website: www.wwfi.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Starting at $1,000 ■ Limits: No maximum ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple carriers For more info, see our ad on page 23 (National).
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Idea Exchange
The Competitive Advantage
I Used to Walk to School and Home Uphill Both Ways Carrier Profits
By Chris Burand
A
n interview was recently published in a major industry publication with a notable ex-CEO of a prominent insurance company. Throughout the article, the ex-CEO bemoaned how power and profit has shifted to brokers from companies. In some ways, the specific brokers he listed (and certain of their peers he did not list) definitely have gained specific powers rarely historically held by distributors. I agree completely, and I am with him that I am not sure this is good for anyone but those few, and maybe not even them in the long run. However, what really sharpened my attention was his claim that 50 years ago, two-thirds of the profits went to the underwriter/carrier, 20 percent to 25 percent to the distributor and the remaining 5 percent to 15 percent to miscellaneous vendors. By comparison, he advised that today carriers only get 40 percent of the profit or 20 percent to 25 percent less than they used to get. He claims distributors now get 40 percent of the profits. To be fair, the article did not define profit, and insurance companies use many definitions of profit — including underwriting profit, pretax profit, operating profit, net profit, so on and so forth. So maybe his assertions are more applicable to one definition than others. INSURANCEJOURNAL.COM
His statements sounded like parents who claim to have walked to school and back home uphill both ways and usually in 2 feet of snow. So, I checked with A.M. Best for its carrier profitability data throughout the past 50 years. In 1967, the P/C carriers combined ratio was 100.2. It did not exceed 103 until 1981. The 50-year average combined ratio (unweighted) is 104.2. Since 2003, the average combined ratio has been 100.0. Somehow, someway, insurance companies have better underwriting results now than virtually ever. Here are some more numbers. In 1967, the carriers made a profit of $1.056 billion. In 2016, their profit was $44.276 billion. Since 2003, the companies have made $699.153 billion on a pretax basis. That is just shy of three-quarters of a trillion dollars. So maybe the complaint/observation is that while profits are good (and insurance company profits have been very, very good during the past 15 years), the profits could
be better if distributors were not being paid more now than they used to be paid. I admit that I have only been in the industry for 30 years, so I have no first-hand knowledge of what agents/brokers were paid 50 years ago. I have met many, many old-time brokers who told stories about how their commission rates used to be far higher. Unfortunately, A.M. Best does not have the detailed breakdown of carrier expense ratios from 50 years ago, but it has total underwriting expenses. One might expect, although it is not guaranteed, that underwriting expenses would have increased if distributors were being paid so much more today. In 1967, the average underwriting expense ratio was 29.5 percent. In 2016, it was 27.8 percent. The low point was in the mid-1980s, when it was just above 25 percent. The percentage has held relatively stable between 27 percent and 28 percent for the past 10 years. So, the combined ratio has improved, profits have skyrocketed and underwrit-
continued on page 34
JUNE 4, 2018 INSURANCE JOURNAL | NATIONAL | 33
Idea Exchange
The Competitive Advantage
continued from page 33 ing expenses have decreased. I do not Even if it is true, I am not sure it yet matsee broker profitability increasing. Based ters. Another reason is to enlighten readers on various stock market websites over that the industry has been immensely profthe years, I have tracked publicly traded itable for the past 15 years. Any companies brokers’ results. Their five-year average having profitability problems are having (non-weighted) pretax profit margin for personal profitability problems. Their peers the years 1999-2003 was 14.9 percent. The are doing just fine. Don’t believe people five-year average ending in 2017 was 14.2 who are crying wolf — that is just a tell, as percent. Maybe they are taking more of they say in poker — that a particular comthe insurance dollar and just spending it, pany has problems but wants its agents to which might be why their profit margin believe the problems are indicative of the hasn’t materially changed in all these industry. years. Or maybe they are not getting more of the insurance dollar (the former might Power Shift just be more accurate, but the companies My last point is that power is shifting, are not suffering as a result). without a doubt. Companies are going to My point in writing this article is not as a complete many mergers in the next few refutation. My point is that words matter. I think the former executive has an excellent years, partially to bulk up and regain the advantage or just to sustain their positions point relative to the power shift, but to to distributors. One reason some suggest that profits injured A&Mcompanies’ helps BIG.pdf 1 are 1/5/16 12:36 relative PM companies are buying or investing in insuras a result, that is a tough case to make.
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5/16/18 12:08 PM
ance agencies, particularly new insurtech agencies, is to regain and gain more control over distributors. A reason companies want agents to use service centers is to gain some control over clients, and therefore distributors. Companies are acutely aware of their stress point, and they are working hard to protect themselves. Agents who are unaware of these forces may get caught in the middle. They are not getting the benefit of the power shift, but they are feeling the pain of the companies’ defensive measures. That is a dangerous position (and many awesome methods exist for making this situation work to your benefit if an awareness and willingness to proactively manage your organization differently exists, along with the understanding of these market forces versus just keeping to the old ways). What I wish the interview and the interviewee would have expounded upon were these market forces and how these changes affect other distributors, consumers and carriers beyond the false premise that carriers as a whole are suffering. Going forward, every agency needs a strategy for how it will deal with these forces. This strategy needs to be extremely specific. I have never before been a big proponent of strategic planning for regular agencies because mostly, if those agencies just did a solid job of blocking and tackling, they would excel. Going forward though, a strategy is critical not only for survival, but for the opportunity to thrive. For more information, check out my recent webinar on Insurance Journal’s Academy of Insurance about the future of insurance distribution and the power struggle occurring behind the scenes at: https://www.ijacademy.com/state-of-theShare this artip-c-insurance-industry.
cle with a colleague. IJMAG.COM/64WA Burand is the founder and owner of Burand & Associates LLC based in Pueblo, Colo. Phone: 719-485-3868. Email: chris@burand-associates.com. INSURANCEJOURNAL.COM
MyNewMarkets | NATIONAL tation program in Florida, Louisiana and Texas. There are no maximum or minimum number of units. QEO writes auto liability, physical damage, cargo and truckers general liability. Available limits: Minimum $100,000, maximum $1 million Carrier: Unable to disclose, nonadmitted States: Fla., La., and Texas Contact: Appointments QEO Marketing at 844-736-0008 or email: appointment@ qeo.com
Scuba Dive Charter Boat Insurance
Contractor Equipment Floater Coverage
Market Detail: International Transportation & Marine Agency’s (www. itmagency.com) inland marine form covers contractors’ equipment on an all-risk or specified perils basis. This coverage is designed to cover mobile equipment while it is stored on premises, in transit or at temporary locations or jobsites. Available limits: As needed Carrier: Unable to disclose States: All states Contact: Horrace Greene at 480-556-0200 or email: info@itmagency.com
Sports Camps and Clinics
Market Detail: K&K Insurance Group Inc. (www.kandkinsurance.com) offers online quoting and binding capabilities for sports camps and clinics. The website is simple to use, provides an option to purchase coverage immediately using a credit card and can be found online. The program insures U.S.-based youth sports camp operations or clinics that are held at premises not owned or maintained by the sports camp operator. Sports operations conducted on a clinic, day camp, or overnight camp basis for attendees ages 19 and under are eligible. Classroom clinics for coaches or officials are also eligible. The program offers commercial general liability; legal liability to participants; medical payments for participants; and hired auto and employers’ nonownership liability. Available limits: As needed INSURANCEJOURNAL.COM
Carrier: Nationwide States: All states Contact: Stacie Helton at 800-426-2889 or
email: stacie_helton@kandkinsurance.com
Local & Intermediate Trucking
Market Detail: QEO Group’s (www.QEO. com) monoline commercial auto offers a local and intermediate trucking/transpor-
Advertisers Index
Read, browse, contact, or do product searches on any of our full page advertisers at: www.insurancejournal.com/adshowcase/
ACORD www.acord.org N36 Anderson & Murison www.andersonmurison.com 34 Aon Affinity www.aon.com 7 Applied Underwriters www.auw.com 2, 3, 40 Aspera Insurance Services www.asperains.com W2 Atlas General Ins. Services www.atlas.us.com 21 Brecht & Associates www.brechtassoc.com SC2 Clearwater Underwriters, Inc. www.cuifla.com FL6, FL7 Cypress P&C www.cypressig.com FL15 Cypress Texas Insurance Company www.cypressig.com SC8 Foremost Insurance Group www.foremoststar.com 15 FSLSO www.fslso.com FL5 FUBA Workers' Comp www.fubaworkerscomp.com FL3 GeoVera Insurance Company www.geovera.com SC3, S3 GIC Underwriters, Inc. www.gicunderwriters.com FL1 LAAIA - Latin Amer Assoc of Ins Agencies www.laaia.com FL19
Market Detail: Casey Insurance Group (www.caseyinsurancegroup.com) insures scuba dive charter companies with competitive rates. Available limits: As needed Carrier: Unable to disclose, admitted States: All states Contact: Casey Heer at 888-537-1412 or email: casey@caseyinsurancegroup. com
Liberty Mutual www.libertymutualgroup.com 5 Louisiana Commerce & Trade Assoc. www.lctacomp.com SC13, S9 LP Risk SC6 LUBA Workers' Comp www.lubawc.com SC9 Monarch E&S Insurance Services www.monarchexcess.com W5 Normandy Insurance Company www.normandyins.com S9, E6 Omaha National Underwriters www.omahanational.com CA1 PersonalUmbrella.Com www.personalumbrella.com 39 PMC Insurance Group www.pmcinsurance.com 19 Safety National www.safetynational.com 9 St. James Insurance Group www.stjamesinsurance.com FL2 St. Johns Insurance Company www.stjohnsinsurance.com FL20, S9 State Compensation Insurance Fund www.statefundca.com W3 Summit www.summitholdings.com SC11, S7, M5 Tejas American General Agency www.taga1.com SC7, S5 Texas Mutual www.texasmutual.com SC5, SC12 The Hartford Insurance Group 12, 13 www.thehartford.com United Fire Group www.ufgsolutions.com E5 Worldwide Facilities www.wwfi.com 23
JUNE 4, 2018 INSURANCE JOURNAL | NATIONAL | 35
NATIONAL | News & Markets | Cyber continued from page 8 of historical experience and tested cyber exposure models continue to foster uncertainty of underwriting cyber insurance. Insurers vary significantly in their cyber pricing sophistication, with some using simplistic pricing based on expected loss-
es, while others have much more sophisticated algorithms. Although a systemic event remains the top threat for cyber insurers, underpricing from new market entrants also should remain a concern, the report warns.
A lack of historical experience and tested cyber exposure models continue to foster uncertainty of underwriting cyber insurance.
OCTOBER 10-11 | NEW ORLEANS, LA
Chubb INA Group was the top cyber insurer in 2017, rising past American International Group and XL Catlin America Group, with $284.4 million in cyber direct premiums written - the majority of which were for packaged policies. For a thirdstraight year, Hartford Insurance Group held the most cyber policies in force at year-end, with more than half a million. Although the premium and policy increases in 2017 are material, A.M. Best believes they do very little to close the protection gap. A.M. Best expects that demand for cyber insurance will continue to grow and capacity, which is currently ample, is likely to increase over the next few years as the line’s current reported profitability should attract new market entrants. The authors of the report issued a caution to insurers in the market. “Cyber events are difficult to see, predict or detect — companies may not even be aware that an event has taken place — and once one has occurred. It is difficult to ascertain how far and wide they will spread,” said Fred Eslami, an associate director. “They are becoming increasingly more frequent and more severe, and as insurers expand their cyber offerings, they will need to be prudent in exercising appropriate risk management and mitigation measures to ensure that these exposures remain aligned with the company’s stated goals and objectives.”
Join us as we show our appreciation to the ACORD community, provide attendees the opportunity to learn, network with key influencers, and elevate their skills. Attendees will explore important strategic issues facing the global insurance industry, enhance their expertise with ACORD Standards and Architecture, and earn continuing education credits through professional development sessions. Business & IT Strategy Customer Experience Data, Analytics, and BI Emerging Technology Product Development and Innovation acord.org/acordevent @ACORD_Standards
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“At this point, underwriting and pricing are driven more by market forces than by loss experience and models,” said Bobby Skrabal, an A.M. Best industry analyst. “As insurers develop more experience they’ll improve their pricing models, but due to the constantly changing nature of cyber threats, pricing will most likely continue to rely on the judgment of underwriters.”
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Closing Quote Policymakers Take On Distracted Driving Nationwide
By Robert Passmore
O
ver the course of several decades, auto crash rates and fatalities had been on the decline. This reduction offset slightly increased crash severity and helped to moderate the cost of auto insurance. However, starting in 2014, there were sharp increases in crashes and deaths on our nation’s roads. Auto crash deaths rose by 13 percent between 2014 and 2017, according to preliminary estimates from the National Safety Council. If the estimate for 2017 holds, it will be the second consecutive year that motor vehicle deaths topped 40,000. It isn’t just drivers getting injured. The number of pedestrians and bicyclists killed has increased as well. Studies by the Governors Highway Safety Association show that while pedestrian deaths may have leveled off in 2017, there was an alarming rise in fatalities during 2015 and 2016. Many believe that one of the reasons for the increase may be that too many people think
they can multitask and effectively drive a 3,000-pound car. A recent study by True Motion, a smartphone usagebased insurance technology firm, found that 92 percent of drivers using their UBI application interacted with their smartphone while driving, and 71 percent interacted with their phone manually — using it to text or use apps like YouTube, Facebook, and Gmail. Distracted driving is not the only problem linked to the recent spike in auto crashes. The Property Casualty Insurers Association of America analyzed recent auto accident claim trends and found an increase in overall miles driven, bad roads, higher speed limits, and marijuana-impaired driving are all contributing factors. But the factor most strongly linked to increases in auto accident claims is urban congestion. More vehicles on increasingly congested roads means more temptation to multitask. The problem of distracted driving must be addressed on multiple fronts. The good news is that state legislatures across the country are doing what they can to cast light on this critical subject and strengthen distracted driving laws. During the 2017-2018 legislative sessions, at least 20 states considered legislation to deter distracted driving. While many of the measures were not approved, their introduction spurred important debate and examination of ways to curb this dangerous habit.
38 | INSURANCE JOURNAL | NATIONAL JUNE 4, 2018
The pervasiveness of mobile devices has changed consumer expectations. Arizona, Florida and South Dakota considered legislation to ban texting while driving or make it a primary offense, which enables law enforcement to pull drivers over for talking on their hand-held phone without observing another violation. Colorado, Hawaii and New York looked at providing law enforcement with software tools that allow them to detect how many times a driver in a car crash touched their cell phone while driving. New definitions of distracted driving are needed in statute to include posting to social media and streaming video. Insurers and highway safety advocates will continue educating the public about the need for these new laws and urging lawmakers to consider them again in future legislative sessions. Highway safety laws were improved in a variety of states during the 2017 and 2018 legislative sessions. In 2017, 12 states approved legislation to combat distracted driving by
strengthening law enforcement, increasing penalties and fines, and focusing on education and awareness efforts. In 2017, Texas banned texting while driving and made it a primary offense in traffic stops. Montana remains the only state with no ban on texting of any kind. Washington has one of the strongest laws, banning a wide variety of uses of a handheld phone and requiring the violation to be reported to a driver’s insurer. Having the right distracted driving laws is important, but enforcing those laws is also essential. It will take a coordinated strategy combining strong laws, enforcement, public education, and personal responsibility to change drivers’ behavior behind the wheel. Passmore is assistant vice president of personal lines policy with the Property Casualty Insurers Association of America. Phone: 847-297-7800; Email: robert.passmore@pciaa.net. INSURANCEJOURNAL.COM
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