Insurance Journal West 2023-03-06

Overvalued Homes and Flood Risk

The increasing cost of flooding due to climate change has led to growing concerns that housing markets are mispricing these risks, thus causing a real estate bubble to develop, according to a study published recently in the journal Nature Climate Change. The study examined the potential cost of unrealized flood risk in the U.S. real estate market and found that flood zone property prices are overvalued by $121 billion to $237 billion.

“There is a significant amount of ‘unknown’ flood risk across the country based solely on the differences in the publicly available federal flood maps and the reality of actual flood risk. As that unknown risk is realized, there are significant implications for both individual property values and the health of the larger housing market,” said Dr. Jeremy Porter, a senior research fellow for First Street Foundation and one of the co-authors of the study.

Currently, more than 14.6 million properties in the United States face at least a 1% annual probability of flooding, with expected annual damages to residential properties exceeding $32 billion. Increasing frequency and severity of flooding under climate change is predicted to increase the number of properties exposed to flooding by 11% and average annual losses by at least 26% by 2050.

Low-income households are at greater risk of losing home equity from price deflation due to factoring in anticipated flood risk. The study found that low-income households stand to lose as much as 10% of their market value.

In general, the study found that highly overvalued properties are concentrated in counties along the coast with no flood risk disclosure laws and where there is less concern about climate change. In particular, properties in Florida are overvalued by more than $50 billion.

Aside from the impacts to homeowners, municipalities that are heavily reliant on property taxes for revenue are also highly vulnerable to budgetary shortfalls. These municipalities are concentrated in coastal counties, as well as inland areas in northern New England, eastern Tennessee, central Texas, Wisconsin, Idaho and Montana.

“This isn’t just a problem for anyone who experiences a flood. This is a problem for cities and towns who could struggle financially if property values — and therefore property taxes — take a dive,” said Penny Liao, a fellow at Resources for the Future and co-author of the study. “We need to think about flood risk not as a homeowner’s problem, but as a problem for our entire community, city and housing market.”

A large portion of overvaluation is driven by properties located outside of the Special Flood Hazard Area (SFHA), identified by the United States Federal Emergency Management Agency as having 1% chance of being flooded per year. Properties located outside the SFHA comprised 83% of all properties at risk of flooding and contribute 69% of total overvaluation in dollar terms.

The study was authored by researchers from Environmental Defense Fund, First Street Foundation, Resources for the Future, the Federal Reserve, and several academic institutions. To read the full report, visit firststreet.org.

Chairman of the Board Mark Wells | mwells@wellsmedia.com

Chief Executive Officer Joshua Carlson | jcarlson@insurancejournal.com

ADMINISTRATION / CIRCULATION

Chief Financial Officer Mark Wooster | mwooster@wellsmedia.com

Circulation Manager Elizabeth Duffy | eduffy@wellsmedia.com

Staff Accountant Sarah Kersbergen | skersbergen@wellsmedia.com

EDITORIAL

V.P. of Content Andrea Wells | awells@insurancejournal.com

Executive Editor Emeritus Andrew Simpson | asimpson@wellsmedia.com

National Editor Chad Hemenway | chemenway@insurancejournal.com

Southeast Editor William Rabb | wrabb@insurancejournal.com

South Central Editor/Midwest Editor Ezra Amacher | eamacher@insurancejournal.com

West Editor Don Jergler | djergler@insurancejournal.com

International Editor L.S. Howard | lhoward@insurancejournal.com

Content Editor Allen Laman | alaman@wellsmedia.com

Assistant Editor Jahna Jacobson | jjacobson@insurancejournal.com

Copy Editor Stephanie Jones | sjones@insurancejournal.com

Columnists & Contributors

Contributors: Matt Shannahan, Chris Schramm, Susanne Sclafane, Tal Sharon

Columnists: Catherine Oak, Mary Newgard

SALES / MARKETING

Chief Marketing Officer

Julie Tinney | jtinney@insurancejournal.com

West Sales

Dena Kaplan | dkaplan@insurancejournal.com

Romeo Valdez | rvaldez@insurancejournal.com

Kelly DeLaMora | kdelamora@wellsmedia.com

South Central Sales

Mindy Trammell | mtrammell@insurancejournal.com

Southeast and East Sales (except for NY, PA, CT)

Howard Simkin | hsimkin@insurancejournal.com

Midwest Sales

Lisa Whalen | (800) 897-9965 x180

East Sales (NY, PA and CT only)

Dave Molchan | (800) 897-9965 x145

Advertising Coordinator Erin Burns | eburns@insurancejournal.com

Insurance Markets Manager

Kristine Honey | khoney@insurancejournal.com

Sr. Sales & Marketing Coordinator

Laura Roy | lroy@insurancejournal.com

Marketing Administrator Alberto Vazquez | avazquez@insurancejournal.com

Marketing Director Derence Walk | dwalk@insurancejournal.com

DESIGN / WEB / VIDEO

V.P. of Design

Guy Boccia | gboccia@insurancejournal.com

Web Team Lead Josh Whitlow | jwhitlow@insurancejournal.com

Ad Ops Specialist Jeff Cardrant | jcardrant@insurancejournal.com

Web Developer Terrance Woest | twoest@wellsmedia.com

Web Developer Jason Chipp | jchipp@wellsmedia.com

V.P. of New Media

Bobbie Dodge | bdodge@insurancejournal.com

Videographer/Editor Ashley Waldrop | awaldrop@insurancejournal.com

ACADEMY OF INSURANCE

Director Patrick Wraight | pwraight@ijacademy.com

Online Training Coordinator

Andrea Wells Vice President, Content

News & Markets

Insurer Faces Class Action for Depreciating Labor in Actual Cash Value Payments

By Andrew G. Simpson

Two Trumbull Insurance customers who believe they were shortchanged on claims payments have filed a proposed class action suit against the insurer, alleging Trumbull has been incorrectly calculating some property claim payments by deducting labor depreciation.

The complaint (Grawe v Trumbull) estimates there are “hundreds of thousands” of claimants in 15 states who have potentially been underpaid more than $5 million because of what the plaintiffs allege is an error in actual cash value (ACV) payments.

Property owners from Carylyle, Illinois — Betty and Daniel Grawe — filed the proposed class action in federal court in Connecticut against Trumbull, a subsidiary of The Hartford.

The Hartford declined to comment on the lawsuit when contacted by Insurance Journal.

The complaint notes that 15 states by court decision, statute or regulatory order preclude property insurers from depreciating labor in calculating ACV when using the replacement cost value methodology, unless the property insurance forms expressly state that labor is to be depreciated. The states are Arizona, California, Connecticut, Illinois, Kentucky, Maryland, Mississippi, Missouri, Ohio, Tennessee, Texas, Utah, Vermont, Washington and Wisconsin, according to the lawsuit.

The Grawe policy did not have a “labor depreciation permissive” form. Thus, the complaint maintains, Trumbull should depreciate only material costs, not labor, for purposes of determining ACV.

The suit claims “it is reasonable to assume” there are “hundreds of thousands” of other insureds who have been underpaid and that the total amount underpaid likely tops $5 million.

The Grawes submitted a property damage claim in May 2021, one that Trumbull agreed was covered by its policy. Trumbull

calculated a replacement cost value of $11,307.51, which included the cost of new materials and labor to repair the damage. To arrive at the ACV, it then deduced the $1,000 deductible plus an additional amount of $1,504.70 for depreciation, resulting in a net payment of $8,802.81, according to the complaint.

The Grawes contend that the $1,504.70 depreciation included labor as well as materials but they cannot tell the exact amount of the labor depreciation without access to the software Trumbull uses.

According to the complaint, Trumbull uses a software, Xactimate (a Verisk product) which allows for the depreciation of materials only, or the depreciation of both materials and labor.

The case is similar to one decided by the Arizona Supreme Court last September in Walker v. Auto Owners. That court held that under the Walker’s’ homeowners policy from Auto Owners, the insurer

could not depreciate the cost of labor in determining the ACV because of the ambiguity in the policy language over labor depreciation and the reasonable expectations of the insured.

The Arizona court noted that courts have differed on this issue, with some courts ruling labor can be depreciated when determining actual cash value and others saying labor may not be depreciated for various reasons.

Commenting on that Arizona ruling, Patrick Gorman, a partner with Jones Skelton & Hochuli, suggested that an insurer is unlikely to be able to depreciate labor if the policy language is ambiguous but exactly what language would suffice is unclear. “The language necessary to inform an insured that the insurer may depreciate labor with an ACV payment is still an open question. Future cases might need to answer that question,” Gorman wrote of the Arizona situation.

Figures

$629,000

The amount an Illinois grain cooperative will pay due to the partial amputation of a 27-year-old worker’s right leg that occurred when a paddle conveyor was left running as he and two other employees entered a soybean bin for cleaning. OSHA’s investigation into the Aug. 15, 2022, injury found that Topflight Grain Cooperative in Atlanta, Illinois, had violated the federal agency’s grain-handling safety and lockout/tagout regulations that require powered devices be de-energized before workers enter bins. Topflight Grain Cooperative received OSHA citations for similar violations at a different facility in 2021.

$43.5 Million

The amount in damages a Philadelphia jury awarded to former Philadelphia Eagles team captain Christopher Maragos in a medical malpractice case over a knee injury that ended his National Football League career in 2019. The civil case revolved around a meniscus tear that safety Maragos suffered in a game in 2017. The suit was brought against orthopedic surgeon Dr. James Bradley and the rehabilitation institute Rothman Orthopaedics.

That’s how many felony counts of grand theft, insurance fraud and forgery Robert Meseer, 69, of Westminster, California, pled guilty to recently. Meseer was sentenced to three years of supervised formal probation and ordered to pay $92,140 plus 10% interest following an investigation that showed he acted as an insurance agent to steal more than $140,000 from several business owners.

$35 Million

The amount Santa Monica, California-based Activision Blizzard Inc. has agreed to pay to settle U.S. Securities and Exchange Commission charges that it failed to have systems in place to properly handle disclosures of employee complaints and violated whistleblower protection rules. The SEC said the video game developer and publishing company, which makes the popular “Call of Duty” game, knew employee retention issues were “a particularly important risk in its business” but did not have adequate measures in place to manage workplace misconduct complaints across business units between 2018 and 2021.

Declarations

Utility and Wildfire

“Our thoughts remain with the people affected by the Fairview fire. We are reviewing this action and will respond to it through the proper legal channels.”

— Southern California Edison spokesperson Reggie Kumar commented on a lawsuit filed on behalf of the city of Hemet that claims the utility did not manage its electrical power lines and failed to keep landscape trimmed, resulting in a damaging wildfire.

Safe Choices

“He’s the safe choice. But Altmaier was the safe choice, too.”

— Former Florida state Sen. Jeff Brandes, speaks about the state’s new insurance commissioner, Michael Yaworsky, who was named to the post in February. Yaworksy is seen as a “safe choice” because he was chief of staff at the department for several years and is familiar with Florida’s unique property insurance market problems. But Brandes said that like David Altmaier, the previous commissioner who stepped down in December, Yaworsky is not expected to make many sweeping changes to help struggling insurers avoid insolvency this year.

Cannabis Rules

“Marijuana legalization in New York came with rules, and those rules must be respected. … Instead of respect for the law, we have seen … the proliferation of storefronts across New York City selling unlicensed, unregulated, untaxed cannabis products.”

— Manhattan District Attorney Alvin Bragg said during a news conference with Mayor Eric Adams, announcing a renewed push to snuff out New York City’s thriving illegal cannabis market. Bragg said his office sent notices to more than 400 smoke shops that illegally sell cannabis, warning them of potential eviction proceedings. If shop owners do not cease operation, his office would seek to force property owners to evict the shops.

BSA Abuse Claims

“We’re just asking for fairness.”

— Ted Boutros, an attorney for some non-settling insurers that could be liable for child sexual abuse claims against the Boy Scouts of America, urged U.S. District Court Judge Richard Andrews to reverse the organization's bankruptcy plan. Boutros said the plan was not proposed in good faith and strips non-settling insurers of their rights to challenge the claims. The $2.46 billion reorganization plan would allow the Irving, Texas-based organization to continue operating while compensating tens of thousands of men who say they were sexually abused as children while involved in Scouting. Boutros alleged that “huge swaths” of the claims are “not legitimate.”

Law Enforcement Liability

“I gotta have car insurance, otherwise I can’t drive. Police officers can be more dangerous than a car — the police officer has a gun and that weapon is designed to kill people.”

— Texas Rep. Jolanda Jones, D-Houston, sponsor of a bill that would require law enforcement officers in the state to carry liability insurance as a condition of employment. HB 1808 states a law enforcement agency may not employ a law enforcement officer unless the officer obtains and continuously maintains liability insurance to cover damages resulting from any misconduct. Under the bill, the insurance commissioner would set a minimum coverage amount for a policy that allows for a reasonable number of victims to be compensated.

Illinois Auto Reform

“Now is not the time to enact legislation that could result in increased premiums for consumers.”

— The American Property Casualty Insurance Association (APCIA) criticized a proposed Illinois bill that would prohibit auto insurers from setting rates based on credit score, among other criteria. HB 2203, introduced by Rep. Will Guzzardi, D-Chicago, would also give the state insurance department more control in rejecting or modifying rate hikes. APCIA says the proposed legislation will lead to a one-sizefits-all approach to pricing, which would eliminate marketplace competition and ultimately drive up auto prices.

Actions vs. Talk: Is the Insurance Industry Coming Through on DEI Commitments?

By Chad Hemenway

Though the last five years have included events – specifically the murder of George Floyd – that prompted many company leaders to make commitments to diversity, equity, and inclusion (DEI), respondents of a recent survey tell a story of a lack of progress.

Commissioned by Marsh and the National African American Insurance Association (NAAIA), “The Next Step on the Journey” outlines findings from a recent survey to follow up on one conducted in 2017 and published in a 2018 report, “The Journey of African American Insurance Professionals.”

According to the results of the survey of Black/African-American risk and insurance professionals, it appears George Floyd’s death had a “remarkable effect on corporate [DEI] commitments” in comparison to the time prior to Floyd’s death, but some organizations appear to have “struggled with how to address the issue publicly, especially given their public

profiles and possible reactions from customers and stakeholders.” While internal employee resource groups were formed to help come up with DEI goals and initiatives, “the hiring, promotions, and board membership for Black/African-Americans were far less prevalent,” the report said.

“Some individuals noted that while their organizations continue to espouse diversity as a core value, there is slow, little or no progress in terms of representation in management or leadership positions,” read a commentary on results of the survey conducted by Dr. Leroy Nunery II, president of Evolution Advisors. One respondent added: “My company would like to appear they are committed to advancing diversity but does not take the appropriate actions internally for future diversity growth.”

In a NAAIA webinar to discuss the survey’s findings, Nunery said Floyd’s death was a “wake-up call across the globe” but at the same time it is “hard to pin down who is responsible and accountable” for

progression. “We still have issues getting in the door and sitting at the table,” he said. “Are we moving the needle or ‘checking the box’? It’s more than saying, ‘We want to be engaged.’”

Respondents classified company efforts toward inclusion as “underwhelming,” with many believing that lack of exposure to the risk and insurance industry is the primary barrier to inclusion. On career advancement, 84% said they “encounter obstacles compared to other minorities or under-represented groups because of either conscious or unconscious racial bias.”

Fraudulent Instruction, Data Theft Trends to Continue in 2023: Beazley Cyber Services Snapshot

Incidents of fraudulent instruction scams were up 13% in 2022, according to specialist insurer Beazley’s new Cyber Services Snapshot report.

Under fraudulent instruction scams, criminals use hacking and phishing techniques to accumulate information that allows them to send plausible-looking requests to transfer funds to bogus accounts.

In addition to losing money, organizations may also have to conduct extensive systems analysis to ensure that individuals’ personal and private data have not been compromised.

“Current trends indicate that threat actors will continue to pursue fraudulent instruction as a profitable tactic in 2023,”

Beazley said.

Loss of data, according to the report, is another point of concern. In 2022, data exfiltration became “solidly a part of the threat actor’s playbook,” with all but one cyber extortion incident in Q4 2022 involving a threat of data exfiltration, said Beazley.

“Extortion techniques are evolving. Today, multiple threat actors can be involved in an attack,” the insurer said. “Even with proof of deletion, your data may still be out there in other threat actors’ hands, exposing your organization to legal and reputational risks.”

Legal risks were also highlighted in the report, with cyber extortion with data exfiltration driving class-action lawsuits in

2023, Beazley predicted. The insurer has noticed that plaintiffs are filing more class actions with a smaller potential class size.

“We are seeing class actions based on notified populations of as few as 1,500, when a year ago, 50,000 notified individuals would be considered small. Thus far, the smaller classes seem to involve impacted SSNs, but not necessarily protected health information,” noted Amanda Thai, a cyber claims product specialist in New York.

Multiple class actions filed for the same breach is another trend to watch since it affects attorneys’ fees and settlements.

Beazley also warned corporations to keep an eye on third-party litigation in the United States.

People

National Longwood, Florida-based Insurance Office of America (IOA) appointed Jeff Lagos as CEO and Rob Motley as president in addition to their continuing roles on the IOA board of directors.

Lagos has been president since 2003 of IOA; he joined the independent, privately owned insurance brokerage in 2000.

Motley is also an IOA vet, having joined in 2003, getting appointed to the board in 2008. In 2013, he was named a region president, and in 2022 he was named East Coast division president.

Boston-based Liberty Mutual Insurance appointed Paul Larson president, financial lines for its Global Risk Solutions (GRS) North America division.

Before joining Liberty Mutual, Larson led financial lines at CNA Financial and served as executive vice president, North America commercial insurance at Chubb.

Markel Corp. named Teri Gendron chief financial officer effective March 20, 2023, succeeding Jeremy Noble, who became president of Markel’s insurance operations earlier this year.

Most recently, Gendron was CFO of Jefferies Financial Group Inc., and she has also held senior finance positions at Gannett Co. and NII Holdings.

Danielle Chaplick joined Risk Strategies Consulting as managing director.

Before joining Risk Strategies Consulting, Chaplick served as vice president and northeast regional director – public sector for Gallagher Benefit Services.

Chaplick has also worked in employee health and benefits at Marsh & McLennan Agency in addition to roles in government healthcare administration, program development and product management.

Risk Strategies is based in Boston.

RYZE Claim Solutions promoted Alisshia Isaacs to executive vice president/chief people officer.

Isaacs joined RYZE in 2021 as senior vice president of human resources. In her new role, Isaacs continues to oversee human resources and joins the company’s senior leadership team.

Teresa Beavers has been promoted to vice president of client solutions at RYZE.

Beavers, who has 33 years of experience in the claims industry, joined RYZE in 2001 as a file reviewer. Most recently, Beavers served as the company’s associate vice president of client services.

Ryze has headquarters offices in Tampa, Florida, and Noblesville, Indiana.

QBE North America, based

in New York, New York, announced two key executive appointments.

Rachel Pollack has been appointed chief people officer.

Pollack joined QBE in 2008 and has held various roles in change management, human resources (now people), culture and business transformation, most recently serving as group people director, global corporate functions, and before that, group head of enterprise culture. Pollack also served as vice president, head of HR change North America in 2014 and 2015.

David Mulligan has been named chief operating officer.

Mulligan leads QBE NA’s business delivery teams, including digital transformation, business process reengineering, automation and robotics and the offshore transition team. He also oversees underwriting operations, program onboarding and services, billing, collections, accounts payable, production automation support, procurement and real estate.

East

Jane Callanan has been appointed general counsel at the Connecticut Insurance Department.

Callanan previously was in private practice with Willkie Farr & Gallagher as special insurance counsel, representing insurtech companies and other insurance licensees. She started her career in the insurance industry in 1995 with the Connecticut department as a staff attorney providing legal

counsel in financial regulation and consumer affairs. Callanan also previously worked at The Hartford.

The Hanover Insurance Group Inc appointed Kate B. Williams as president of excess and surplus (E&S). Williams will oversee the Worcester, Massachusetts-based company’s full range of E&S for the property/casualty needs of small to mid-size customers.

Williams has nearly 21 years of experience, having served in a variety of underwriting and producer roles at James River Insurance Co., Chas. Lunsford Sons & Associates and Colony Insurance Co. Most recently, Williams spent 12 years at Markel as managing director and product line leader of Markel’s primary casualty portfolio.

Midwest

Alera Group appointed Richard “Ricky” Levitz as Midwest regional managing director. Levitz will work with 16 offices throughout Illinois, Minnesota, Iowa, Colorado, Wisconsin, Indiana, Michigan and Ohio.

Levitz has held several senior leadership roles within Alera Group and Alera Group Midwest (formerly GCG Financial), including 30 years at GCG with the last six years as managing partner.

Alera Group is headquartered in Deerfield, Illinois.

South Central Workers’ compensation insurance provider, Texas

Jeff Lagos

Rob Motley

Alisshia Isaacs

Teresa Beavers

Jane Callanan

Kate B. Williams

Mutual Insurance Co. named longtime employee and chief operating officer Jeanette Ward president and chief executive officer by a unanimous board vote.

Ward joined Austin, Texas-based Texas Mutual in 1993. In her 29 years with the company, she has served in various roles across the organization, beginning as a receptionist.

Ward assumed her new role on March 1, following the retirement of Rich Gergasko, who has served as president and chief executive officer for the last 10 years.

Ashley Scott has been named director of the Oklahoma Insurance Department Pharmacy Benefit Manager Compliance and Enforcement Division.

Scott has been with the department since 2020 and serves as the agency’s government and community affairs director. She has over 15 years of state service focused on policy development and implementation.

Molly Clinkscales was appointed as lead attorney for the program. Clinkscales joined the legal team of OID as an assistant general counsel in 2021 with the primary focus areas of life and health insurance, including PBM regulation.

Southeast Kids’ Chance, a charity organization established by the workers’ compensation industry, has named new board members for its Florida

operation.

Bill Rogner, a workers’ compensation defense and appellate attorney, was named president.

Kimberly Helwig, the strategy and risk management director of the National Council on Compensation Insurance, was named vice president. Tammy Boyd, an industry veteran and advisor to Rehabilitation Advisors, is treasurer. David Langham, deputy chief judge who oversees the Florida Office of Judges of Compensation Claims, is secretary.

The all-volunteer Kids’ Chance of Florida provides scholarships to educate children of workers who have been killed or seriously injured in work-related accidents.

Florida’s Citizens Property Insurance Corp. named Tim Cerio to replace longtime CEO and director Barry Gilway, who announced his retirement in December

Cerio, who has served as Citizens’ general counsel for a few years, was named the corporation’s interim CEO in December.

Cerio has been practicing law for more than 25 years. He served as general counsel to Rick Scott in 2015 and 2016, when Scott was governor of Florida. Cerio serves on the Florida Supreme Court Judicial Nominating Commission and is a member of the board of governors of the State University System of Florida.

Citizens was created by the Legislature 21 years ago to serve as an insurer of last

resort.

Cerio’s appointment will be reviewed by the Florida Senate.

Brendan Swift has been named vice president for payer partnerships and marketing with ATF Medical, a national provider of rehabilitation equipment and housing solutions for the workers’ compensation industry.

ATF, also known as After The Fall Inc., supplies mobility and accessibility solutions for payers and injured workers. It is based in Newman, Georgia.

Swift started his career in group health with Oxford, United Healthcare, and Coventry. Most recently, he was with Elevance Health, formerly Anthem Inc.

The Tennessee Department of Commerce and Insurance named Mark Wiedeman, a Utah native, as director of its captive insurance section.

Wiedeman joined the Utah Insurance Department in 2012 as an auditor, then was senior examiner and assistant division director. He left the department in 2022 to start a business in contract insurance examinations and captive insurance consulting.

West

The California Insurance Wholesalers Association named four new members of the board of directors and promoted two current members to

top leadership roles.

John Donahue, president of M.J. Hall & Co., was promoted to president. Yana Connors, principal at Ck Specialty, was promoted to vice president. Garett Kaneko, executive vice president of client relationship management at Amwins, was appointed treasurer. Sarah Sloan, senior vice president of commercial at Atlas General Insurance Services, an RPS company, is secretary.

The association also added two new board members: Mike Louderback, second vice president of sales and marketing at USLI; and Zach Hernandez, assistant vice president at XPT Specialty, who is also a committee chair for CIWA Future.

CIWA is a nonprofit trade association supporting California excess and surplus insurance wholesalers, carriers and supporting entities.

Aura Risk Management & Insurance Services, a member of The Liberty Company Network of Insurance Brokers, added Eric Morrison as senior vice president. Morrison will lead efforts to develop Aura’s new cannabis program, as well as other specialized, niche programs.

Morrison began his career in 1998 in underwriting employee benefits and moved to the property/casualty space in 2003. He has 20 years of experience in the P/C and workers’ compensation arena. Morrison has primarily focused on managing and producing underwriting profits in specialized, hard-to-place property/ casualty, workers’ comp and excess markets.

Aura is headquartered in San Clemente, California.

Jeanette Ward Bill Rogner

Brendan Swift Mark Wiedeman

Business Moves

Minneapolis, Minnesota-based embedded insurance program.

Vertical Insure addresses distribution inefficiencies by embedding insurance vertical Software as a Service platforms. Vertical Insure works with managing general agents and carriers to provide additional distribution streams while providing its SaaS partners with a new source of revenue.

National

Granada Financial, Topa Insurance Group

Granada Financial Group entered into a definitive agreement to acquire the controlling interest in Topa Insurance Group from long-time owner, Anderson Holdings.

The transaction is subject to customary closing conditions, including regulatory approvals. While Granada will assume majority control, Anderson Holdings will retain a minority equity stake in the business following the closing.

Topa is the parent company of Topa Insurance Co., a property/casualty insurance carrier, and Dorchester Insurance Co., a P/C carrier located in the U.S. Virgin Islands. The strategy for the business will remain largely unchanged in terms of a focus on specialty P/C lines, but with significant support from Granada.

Granada is the parent company of Granada Insurance Co., a Florida-based specialty commercial insurance company. Its principals also own and manage Granada Indemnity Co., a New York domestic insurer writing multi-peril coverages in the Northeast U.S.

AIG, Stone Point Capital

American International Group has entered into a binding memorandum of understanding with Stone Point Capital LLC to form an independent managing general agency. AIG’s Private Client Group (PCG) business will move to this new independent platform, rebranded as Private Client Select Insurance Services (PCS). PCG personnel, including the leadership

team led by PCG President and CEO Kathleen Zortman, will transfer to the MGA once it is formed.

Completion of the proposed transactions between AIG and Stone Point is subject to negotiation of definitive agreements, obtaining required permits and regulatory approvals. The terms of the transaction have not been disclosed.

East

Risk Strategies, Broker Bullen Group

National specialty insurance broker Risk Strategies acquired Bullen Insurance Group, a national specialist focused on high net worth families, individuals and their businesses. Bullen operates five offices in New York and Florida and it has clients in all 50 states.

Founded by George V. Bullen in 1897 on Long Island, New York, the firm is now run by Matthew C. Fox, current president and chief executive officer who is a son-in-law of the late George H. Bullen, who ran the firm for 40 years.

Boston-based Risk Strategies has more than 100 offices including in New York City, Chicago, Toronto, Montreal, Grand Cayman, Miami, Atlanta, Dallas, Nashville, Washington D.C., Los Angeles, and San Francisco.

Midwest

Greenlight Re, Vertical Insure

Greenlight Capital Re, through its Greenlight Re Innovations, announced an investment in Vertical Insure Inc., a

Greenlight Re CEO Simon Burton said Vertical Insure will generate unique underwriting opportunities by tailoring embedded insurance products for industry-specific SaaS platforms and their clients.

South Central

Holman, Park Wood Managers

Holman, a global automotive services organization, acquired Plano, Texas-based Park Wood Managers, a leading underwriter and insurance provider for commercial trucking fleets. The addition of Park Wood Managers and the company’s portfolio of business assets allows Holman to expand the scope of its commercial underwriting and alternative risk services to offer automotive liability insurance coverage for high-hazard medium-duty, heavy-duty, and extra heavy-duty commercial vehicles.

Holman also is now the program manager of the Park Wood Risk Retention Group (RRG), which will be rebranded as Holman Transportation Risk Retention Group. Holman is now able to provide comprehensive automotive insurance coverage and commercial risk mitigation services for the entire range of commercial fleet vehicles, regardless of fleet size, industry, or asset type.

Additionally, through this acquisition, Holman is now able to offer its customers the added protection of an A-minus rated cut-through endorsement backed by one of the industry’s leading carriers.

Southeast

Curi Holdings, Constellation

Curi Holdings, a Raleigh-headquartered medical liability insurance company, plans to merge with Minnesota-based

Constellation Inc., creating a company with more than $2 billion in assets.

Curi provides malpractice insurance for physicians by physicians and was known as Medical Mutual Holdings Inc. until 2019, when it rebranded. It was established in 1975 when other carriers stopped offering malpractice insurance to many physicians in North Carolina.

Constellation already includes Midwest Medical Insurance Co., Arkansas Mutual and Utah Medical Insurance Association.

Ryan Crawford is president and CEO. Curi CEO Jason Sandner will remain head of Curi Holdings.

Hilb Group, Nowell Agency

The Hilb Group has expanded into Mississippi with the acquisition of The Nowell Agency.

The Nowell Agency has offices in Brandon, Greenwood, Tupelo, Byram and Hattiesburg, Mississippi, and specializes in coverage for fuel distribution operations,

dwellings, agribusiness and more.

Mike Nowell and team will now be part of Hilb Group’s Southeast operations, the company said in a news release.

Hilb is part of the Carlyle Group investment firm.

Alkeme, PEO Exchange

Alkeme acquired PEO Exchange, a Tampa-based professional employer organization that specializes in finding workers’ compensation coverage for tough-to-place industries.

PEO Exchange works with PEOs, employer-of-record organizations and administrative-services-only firms through an automated web portal, serving employers in roofing, staffing, transportation, solar and other areas.

Alkeme, based in Ladera Ranch, California, is backed by GCP Capital Partners. The company provides property/ casualty insurance, benefits, surety, and risk management services and works with

agencies on consolidation of services.

West Krause, USA-LTCI

Krause Brokerage Services LLC acquired USA-LTCI in California. LTCI is a brokerage firm that specializes in long-term care insurance, including employer-sponsored worksite LTCI for businesses offering LTCI as a benefit to their staff.

Don Levin, the former president and CEO of USA-LTCI, will serve as strategic relations director at Krause. Krause is also adding Paula Pike, a senior account manager with more than 25 years of experience, whose primary role will be processing applications for businesses offering LTCI as a benefit to employees.

De Pere, Wisconsin-based Krause Brokerage Services specializes in asset preservation solutions, resources, and education for long-term care and the senior market.

Spotlight: Home & Auto

Allstate

CEO

Sees Untapped Opportunity in Direct-to-Consumer

Homeowners Market

By Susanne Sclafane

When Allstate’s chief executive officer looks at potential growth opportunities for personal lines insurers, he sees an untapped part of the homeowners insurance market — customers that will buy home insurance online.

Speaking at the Bank of America U.S. Insurance Conference last month, Allstate Chair and CEO Thomas Wilson, who spends a lot of time talking about repricing and underwriting actions in auto insurance at investor conferences these days, devoted some of his remarks to homeowners instead.

“In the direct space, very few people sell homeowners,” Wilson said, referring to carriers using direct distribution channels to acquire customers

rather than through agency channels. “It doesn’t make any sense to me. People buy houses on the Internet, right? They buy cars on the Internet. There’s really no reason why they shouldn’t buy homeowners on the Internet. Yet, right now very few people buy homeowners insurance on the Internet.”

Wilson made his remarks in response to a question from Bank of America Securities Analyst Joshua Shanker, who prefaced a question about Allstate’s lack of growth over the years with the analyst’s own summary of actions Allstate had taken to radically reduce catastrophe exposures after major events since the 1990s.

Direct homeowners sales, Wilson said, give carriers the ability to geographically target customers. “With direct, you

can zoom right into a ZIP code,” he said.

In spite of Shanker’s review of Allstate’s past moves to cordon off or move away from cat-prone business, Wilson set his company apart from personal lines competitors who are wary of catastrophe risk. “I think homeowners is a growth business…Yes, we do have a lot of reinsurance in place. Yes, we might take a big hit someday. But we know the size and the probability of our risks to the extent you can know them,” he said, going on to offer two key reasons to support his contention that homeowners is a growth business.

“Homes are getting more expensive, and the weather’s changing. So, with more severe weather, there’s more catastrophes. More catastrophes [mean] more insurance needed. And so you can charge

more,” Wilson said.

During introductory remarks at the conference, Wilson asserted that Allstate’s homeowners combined ratio between 2017 and 2021 averaged 12 points better than the industry. Translating that to dollars, he said, his company has made $4.9 billion more than if profit margins had been at the same level as the industry average.

While Allstate’s homeowners policy unit counts grew 1.4% in 2022, he suggested that Allstate aims to grow much more going forward — with boosts from both the Allstate agent channel and the independent agents channel. “There are plenty of places where you can grow in independent agents in the middle part of the country that aren’t Florida or California,” he said.

Countering the idea of mid-

dle-America growth, Shanker interjected that he imagined Allstate already had a lot of customers in Peoria, Ill.

“Yes, but there’s a bunch of independent agents [we don’t have]. Independent agents sell half the business in homeowners, and we should be able to capture some of that,” Wilson said. “And there’s nobody really that good in that space,” he said. “If you look at Progressive, they’ve still got some work to do,” he said, adding that Travelers, however, does do pretty well in homeowners.

It’s All About Price Shanker’s overarching growth question leading up to the discussion of homeowners insurance was a broader

one, which also dealt with challenges Allstate has faced in growing its auto insurance business. When Allstate nonrenewed homeowners business in cat-exposed areas after tornadoes and hailstorms in 2009-2011, “a lot of auto policies were lost as well” in the process, the analyst suggested. Going on to describe distracted driving spikes in 2014-2016 and the inflationary challenges of the last year, Shanker said, “Allstate has never really had the opportunity to show that it can grow” in auto.

Wilson set forth the specifics of a “transformative growth strategy” at the start of the session, outlining—as he has done at many recent investor conferences—a multipart plan launched in 2019. Still, Shanker

voiced investor concerns about continued obstacles to progress. “Is there a multiyear period of growth that comes into play following this [current] repricing initiative? Or are we always in a competitive industry where the next thing is going to happen that’s going to make it difficult for Allstate to really stretch out its wings and become bigger?”

Replied Wilson, “It is true that as we had to reshape the company, we had to give up some policies. And I was good [with us] doing that. You should make money in every line, every year, every state. You shouldn’t be trying to subsidize stuff.” But, he added, there was more to the story of why Allstate hasn’t grown market share as fast as

others. Essentially, he said, the “old Allstate” in the pre-2019 period had a different model, something he personally didn’t appreciate until later.

Specifically, he said, in 2010-2011, after the financial crisis, leadership viewed the company as a “premium price, high-quality business…We thought we had good margin and we made high returns. And that basically enabled us to hold share,” he said, contrasting the new Allstate.“This new strategy is basically — it’s about the price.”

This is an edited version of an article originally published in Carrier Management, an award-winning publication of Wells Media Group. Sclafane is the executive editor of CM.

Used-Vehicle Prices May Be Cresting but Insurers Still Underwater

By Marty Ellingsworth

It was the best of times, it was the worst of times” would be an apt description of the last few years for auto insurers. Immediately after a nationwide, months-long driving hiatus caused collisions to plummet and profits to surge, a toxic cocktail of supply chain disruptions, increases in the frequency and severity of collisions and a complete dislocation in used-vehicle prices drove loss ratios into the red for many auto insurance companies. Through the end of 2022, auto insurer losses and expenses continued to outpace premium growth for major industry players. While some of those trends have now started to change course, the myriad challenges facing the industry are far from solved.

Chief among these is the issue of frothy used-vehicle pricing. Prices for used cars surged roughly 50% through February of 2022 while auto insurance contract pricing systems predicted car values would continue to go down with a constant depreciation — a generally accepted trend for the last several decades of experience in retail used car valuation.

Used-vehicle prices continued to stay elevated throughout 2022 and, just in the past two months, they have begun to recede. However, as the auto industry continues to be transformed by the introduction of EVs and volatile swings in supply and demand become the norm, these once-in-a-lifetime anomalies

are likely to happen a lot more frequently.

Depreciation Curves Missed the Mark

To illustrate the trend, take the recent replacement cost pricing data on a Toyota RAV4. In January 2017, the estimated cash value of a 2017 model-year RAV4 was about $30,000.

Under historical conditions (omitting the recent three years), the predicted retail price of that car today would be about $10,000. In reality, however, if someone wanted to replace a used 2017 RAV4 today, the real market value would be more like $23,000.

Predicting a pay-out of $10,000 with an actual payout

of $23,000 makes an implicit 230% “uh-oh” for insurers. That gap — the $13,000 difference between what insurers using historical pricing models had anticipated and the reality they encountered during the past few years — tells you everything you need to know about threats to P/C insurer profitability in today’s unpredictable economy. It also helps quantify the scale of financial loss insurers are absorbing, beyond what was projected, especially when one factors in a record number of collisions, rising costs of replacement parts and more total losses than ever before.

Rising Premiums, Bleeding Customer Loyalty

Insurers have responded to this phenomenon with the only tool they’ve had readily available: higher premiums.

In fact, the average auto insurance premium rose 9% in 2022, and is projected to rise another 8.4% this year, as insurers scramble to make up for the shortfall. Raising premiums in this manner does not come without consequences, however. Across all of our auto insurance studies during the past two years, we’ve seen steady declines in customer satisfaction, growing consumer frustration with the auto claims process and a surge in value shopping as consumers hunt for alternatives.

All three of these trends run counter to the P/C playbook of maximizing profitability by building lifetime customer value. It doesn’t matter how compelling an insurer’s bundling offers are or how well they are targeting the high value “Robinsons” segment; if they cannot get their premium

formulas in line with a more realistic vehicle valuation strategy, insurers will bleed customer loyalty.

Building a Predictive Premium Strategy

The solution to all of this comes in the form of more accurate pricing models that are based not only on historical trends, but on a deeper understanding of individual vehicle attributes and values, along with continuous underwriting and risk pricing using observational data like mileage, routes traveled and driver behavior. These new, tailored valuation methods can create the in-market values per vehicle based on an individual vehicle identification number (VIN), which outperforms a one-size-fits-all depreciation curve, because that curve has now been shown to be

woefully unreliable.

The data and the sophisticated analytics needed to crunch it are all readily available today. It is possible, for example, to construct a dynamic RAV4 pricing model that includes individual features and packages, driver behavior and real-time replacement cost and to factor that cost into the premium offered to the customer.

Maybe RAV4 prices will start trending up again.

Maybe they’ll go down. Maybe the driver is a super-cautious backroad cruiser with three other auto policies and a home policy with the same carrier. Maybe that driver is a speed demon delivering Uber Eats in a densely populated city. With today’s advanced, dynamic pricing models, these variables can be factored into a highly customized, person- and vehicle-specific premium offer.

The craziest risks with the most unfactored variables tend to find a home at those insurance companies with lagging analytics and weaker risk-based technology where an inadequate rate slowly boils higher with broad brushed rate hikes. The stronger, more resilient companies in this space offer personalized risk rating at better prices and select away the most favorable risks. This is a tale as old as time with some companies hitting the century mark and others ceasing to exist.

Before insurers can reap the benefits of these technological advances, however, they are going to have to abandon the decades-old practice of using a one-size-fits-all decreasing factor model for all vehicles. Instead, they must adopt instead an actual cash value approach for today’s-and-tomorrow’s risk exposures. Now that used-vehicle prices may have crested, insurers need to ask themselves: Can we afford to keep operating on a business-as-usual level, or is there a large gap between our actual costs of doing business and what we charge customers for making those promises?

Ellingsworth is executive managing director, P&C Insurance Intelligence Group at J.D. Power. A seasoned insurance professional in the insurance space with expertise in applied advanced analytics, data, AI, and cloud technologies, he’s also worked at Celent, USAA, Verisk, and Allianz (Fireman’s Fund) and has worked in healthcare and as a scientific analyst while an officer in the U.S. Air Force. Ellingsworth has a Bachelor of Science in operations research from the U.S. Air Force Academy and a Master of Science in operations research from the Air Force Institute of Technology.

Special Report: Small Business

From Cyber To Lease Protection

Many Small Businesses and Agencies Are Woefully Unprepared

By William Rabb

Lisa Parry Becker, vice president of an independent insurance agency in Langhorne, Pennsylvania, recounted a computer hacking incident a longtime client suffered recently. It sounds almost like a thriller novel, with a race against time and a little bit of nail-biting.

The client had purchased a cyber liability policy, but just before renewal, the carrier required the small business to beef up its computer security with multi-factor authentication log-in for all employees. But the employees were pushing back on the extra tedium, and the company kept putting off the upgrade.

Then, with just days to go before the policy would have been non-renewed, one employee’s email was breached and the associate was hit with a ransomware attack.

Fortunately for the client, the intrusion was limited to the one worker, and the business immediately (finally) instituted multi-factor authentication for everyone associated with the firm. “Things really came to a head,” Becker said. “But we got it done. We got it renewed.”

Small Biz Cyber Gap

Other clients have not been so lucky. Without cyber insurance, another local business was hacked and it took the services of two attorneys, weeks of anguish and negotiation, and, in the end, thousands of dollars down the cyber drain, said Ryan Parry, treasurer of the 120-year-old Parry Insurance agency.

The Parry agency may be ahead of the curve on cyber issues. When the COVID

pandemic forced employees to work from home, using their home computers, the firm purchased new laptops within six weeks and set up heightened security protocols. But other agencies and small businesses across the country have not taken similar steps, despite the growing threat of cyberattacks on small to medium-sized companies.

Ransomware attacks against industrial organizations worldwide jumped by 87% in 2022, the cybersecurity firm Dragos Inc. reported. For small businesses, cyberattacks were up 40% in a year, according to a 2022 cyber report from Coalition, a cyber insurance provider.

And ransom demands to unlock a company’s data have escalated to $1.8 million, on average. Overall, the average cost of a data breach is about $151 per record, said a report from Big I, the national association of independent agents. With just a few thousand records at risk, the cost could easily climb above $1 million.

But a 2022 survey by Big I found that only about twothirds of agencies see a need for having cyber protection for their own firms. Just 33% — a smaller percentage than was reported two years earlier — have a written data security plan.

“If a commercial customer’s agent doesn’t even believe it’s that important, odds are the customer doesn’t have cyber protection,” said Chris Cline, executive director of

Big I’s Agents Council for Technology.

Leasehold Coverage Gap

Cyberattacks are not the only potentially devastating coverage gap facing businesses and agencies as employees return to the office in a changing economy. One area that has been greatly overlooked is leasehold interest coverage, which protects against the loss of favorable office lease terms, said Chris Boggs, vice president of agent development, research and education at Big I.

“Few people seem to know about how important leasehold interest coverage really is,” Boggs said.

The expensive scenario now facing companies all over the United States is this: As COVID-19 forced many firms to abandon their brick-and-mortar office buildings, landlords were stuck with empty spaces and few rent checks coming in. In the last year, as businesses thought about returning to the office, some landlords and property managers offered favorable lease terms to lure more firms and their workers back to the physical realm.

But lease contracts often contain an escape clause that allows building owners to raise prices if the building is damaged in a fire, storm or other event that forces tenants out while repairs are made, Boggs explained. When the lease is renewed, it’s often at a much higher rate. And with rising U.S. interest rates, buying or building an office may be more expensive than at any time in the last two decades.

The costs of losing a favorable lease can be quite painful. If a business was enjoying a lease at $10 a square foot on a

20,000-square-foot building, for example, then sees the rent jump to $15, that’s an extra $100,000 a year in operating costs, Boggs explained in a recent white paper.

Leasehold interest coverage protects the business in that type of scenario and will cover the difference between the old lease and the new one. But few businesses and insurance agents know it’s available.

“I don’t think there is [another] coverage that is not only not understood by really good insurance people, but they don’t even know it exists,” said Virginia Bates, a producer, insurance educator and advisor, and head of VMB Associates in Melrose, Massachusetts.

“When I bring this up, I get a lot of deer-in-the-headlights looks,” she said.

Carriers, which have largely moved agent interactions to an online interface, don’t often mention leasehold interest coverage, she said. And some agents report that in hard or distressed markets like Florida, carriers don’t want to touch it.

“The issue we are running into is finding a carrier willing to offer it,” said Karyn Roeling, with the Seibert Insurance Agency, in Tampa, Florida. “Which seems silly because you’d think carriers would want to protect clients adequately.”

In Tampa and other parts continued on page 24

Lisa Parry Becker and Ryan Parry

Virginia Bates

continued from page 23 of Florida, where a hyperactive litigation environment has been blamed for 10 carrier insolvencies in the last two years, many commercial customers have been forced to go with excess and surplus lines carriers.

“The majority, if not all, of those mar-

Small Business

kets do not offer this coverage as an option to even quote,” Roeling said.

In some parts of the country, commercial and industrial rents have soared in recent months — by 40% in the Tampa Bay area — as the economy clicks along and more space fills up, especially in warehouse and industrial sites, Roeling said. So,

Discover Victor for Agents

when businesses are faced with losing a favorable lease, they’ll really feel the pain if they don’t carry leasehold coverage.

When LHI coverage is available, selling it to clients does require some understanding of economic trends, the commercial rental market, and some math, Bates said. Premiums depend on the type of business, size of the commercial space, and more.

By most measures, the coverage is considered a bargain for companies, she noted. Premiums are usually front-loaded, based on the exposure at the beginning of the lease, which requires some explaining to the insured, she said. The Insurance Services Office, a subsidiary of Verisk, has produced guidelines on premiums.

On the other hand, agents who don’t offer LHI policies aren’t often blamed: Failure to offer the coverage is rarely part of a claim against an agent’s errors and omissions policy, Bates said. “The insureds and lawyers must be just as unaware of it.”

An evolving economy and a changing climate are creating other challenges for small businesses, along with opportunities for agents and insurance brokers. As affluent homeowners have moved to the suburbs, many U.S. cities are finding they don’t have the tax base to maintain aging infrastructure, including water systems with sections that can be well over 100 years old.

That means that water-dependent businesses, such as restaurants, bistros, hair salons, and others, must shut down or lose customers when water is shut off. Jackson, Mississippi, and Memphis, Tennessee, are two recent examples of municipalities with struggling water-supply systems where small companies have been impacted.

Many small and mid-sized businesses’ business interruption policies don’t cover lost revenue that results from a city’s water maintenance issues, however. That has created a chance for more agents and brokers to offer endorsements that will cover a wider variety of business interruptions.

But only if they’re aware of the coverage and its availability.

‘The insureds and lawyers must be just as unaware of it.’

News & Markets

inflation, growing 13% compared with 6.5% in December 2022, according to Bureau of Labor Statistics’ data compiled by APCIA.

The group said dozens of rate filings with the CDI are still sitting unreviewed.

The CDI said that in 2022 there were seven total rate filings approved. There have been six approvals in 2023, and there are currently 75 rate filings under review.

A statement from the CDI notes the department continues to follow Proposition 103 guidelines, the state’s primary insurance law which is designed to protect consumers and limit the way rates are determined.

Insurers View New Car Sales Rise in California as More Evidence for Rate Filings

By Don Jergler

New figures show car sales in California continue to slowly return to pre-pandemic levels, which the state’s auto insurers believe is another indication the state’s insurance regulator needs to approve more rate filings.

The California New Car Dealers Association last month released its 2022 California Auto Outlook report for the fourth quarter, which covers 2022 vehicle registration data and gives a projection for 2023 sales.

Sales were still down last year from figures before the pandemic, but the report shows a gradual increase in sales in 2022 culminating in a 13.6% increase in new light vehicle registrations versus the same period in 2021. This rise occurred despite persistent supply chain issues forcing continued vehicle production cutbacks.

The association’s report echoes data auto insurance carriers have been reporting to the California Department of Insurance as drivers returned to the road following COVID lockdowns, with reported spikes in crashes, fatalities and claims.

Inflation and supply-chain pressures are compounding the increase in claims by driving up repair and replacement costs for damaged vehicles, according to the American Property Casualty Insurance

Association.

APCIA has railed against California Insurance Commissioner Ricardo Lara for declining to approve rate filings for two years. Instead, Lara fought to compensate consumers he says were overcharged as traffic virtually disappeared when the state imposed the nation’s first stay-home order.

Lara seems to have recently eased off his rate approval moratorium. APCIA said it has seen the CDI has once again begin reviewing rate filings, with a few recently issued rate increases.

However, the group is pushing for the CDI to make more rate approvals because insurers are paying more in claims than they are getting in premium, according to the group.

It’s part of a nationwide trend that occurred during the pandemic. U.S. private passenger auto insurance losses spiked 25% from 2020 to 2021, while premiums increased 4.6%, an APCIA assessment of NAIC annual statement data showed.

Auto repair and maintenance outlays increased at double the rate of overall

“While insurance companies are focused on increasing rates, the Department of Insurance is focused on protecting drivers and helping them get the most value from the premiums they pay,” the statement reads. “Our staff continues to review pending auto insurance rate filings with a goal of giving consumers the best value, the most choices, and to make it right for consumers who were and continue to overcharged on premiums during the pandemic.”

Car sales are expected to continue to pick back up. The California New Car Dealers Association forecast for 2023 calls for new vehicle registrations to rise 5.5% to nearly 1.76 million. According to the association, pent-up demand and low inventory since the pandemic resulted in 43% of sales being delayed.

The demand combined with prices falling to match supply levels is expected to result in increased registrations for 2023. That increase, however, is expected to be dampened by inflation, lingering supply chain issues, and increasing interest rates, the report shows.

Toyota was the top seller in California in 2022 with a market share of 17.3%, followed by Tesla (11.2%), Ford (8.4%), Honda (7.9%) and Chevrolet (6.8 percent), the association’s report shows.

‘Our staff continues to review pending auto insurance rate filings with a goal of giving consumers the best value, the most choices, and to make it right for consumers who were and continue to overcharged on premiums during the pandemic.’

WAY TO GO!

Congratulations to Barbara Trumbly for her recent promotion to senior vice president, and welcome to the team, Yusuf Mayet! Yusuf joins as our new VP of Compliance.

BARBARA TRUMBLY

Barbara recently passed the California Bar Exam, one of the toughest in the country! She exemplifies our core values of collaborative, motivated and “knowledge-able.”

YUSUF MAYET

Yusuf brings tremendous knowledge, expertise, and business perspective to our compliance services group. This will benefit us, our members, and the industry at large.

What the Future Holds for Insurance

By Jahna Jacobson

What changes lie ahead for the rest of 2023?

That’s a question that Insurance Journal’s “On Point” podcast host Peter van Aartrijk discussed with David Smith, founder and chief executive of Global Futures and Foresight, late last year. Smith is a leading futurologist and strategic thinker, and together they examined what the insurance industry and other businesses can expect in 2023, from artificial intelligence (AI ) to the post-pandemic workplace.

Technology and its impacts are always at the top of mind, Smith said, who is making his third guest visit to the “On Point” podcast.

“Social attitudes are changing, which is a good thing in many ways, although it’s challenging for boomers,” Smith said. “But how we think about our privacy, how we think about engaging, and who we’re prepared to engage with is changing quite substantially.”

The older generation of workers have grown their careers in an era of rapidly changing tech and consider themselves “vanguards,” Smith said. Today, we have gone beyond simply using tech and into a new era in which the processes themselves have become digital, more automated, and more reliant

on artificial intelligence.

“So we’ve got to move away from, if you like, the processes of being an insurance business on one end or the other to the cognitive end of what it is to be a human engaging with human beings,” he said. That means focusing on the things humans do best, such as creativity, relationship building and communications, while letting tech manage the rote processes, he said.

Using AI to prevent and predict loss is of particular benefit to the insurance industry, according to Smith.

“A predictive and preventative approach, as opposed to a compensation approach, is what the insurance industry is ultimately going to be about,” Smith said. He said that if it’s all about risk management, it

can’t be about compensation for loss. The industry has to be able to articulate the benefit, he added.

Articulating the benefit is a big challenge on the selling end.

“Oh, if something didn’t happen, do you want to pay [premium] if in fact something didn’t happen? Whereas if something did happen, and you’ve got to pay or compensate for it, at least you recognize there was some value in that relationship and in the contract.”

Smith said it could come down to predicting very specific, individual risks in real-time based on behaviors.

“So maybe we could say we can prevent you going around the back of that lorry (truck) and running that child over

because there are cameras in the street connected to the car, connected to our behaviors,” he said. “We know we won’t brake in time, so we warn you. How do we prevent that? Do we start braking the car early? Do we take it over from you? So, the interesting challenge is where do we leave off and where do we allow technology to take over?”

AI could also help brokers provide other more proactive added benefits for their clients.

“Quite frankly, it’s probably beyond the width of many of us to know how to blend well-being, health and life, P&C and travel insurance in the right mix, almost on a real-time basis for a client. But technology can,” Smith said. “So why don’t we focus on continued on page 26

Spotlight: On Point

continued from page 25

how to be increasingly knowledgeable and valuable for the client by using technology to help us predict what they want to achieve, to augment what we already know about what they’ve said they want to achieve, and therefore be seen as a more valuable person.”

If the industry can focus on the client in terms of what their aspirations are, then their insurance partners can think about how to help them be more successful in that space, he said.

“It’s a bit like, if you define yourself as in railroads, you went bust. So then you define yourself in transport, (and then) you went into airlines and other areas of movement, and you didn’t go bust,” Smith added. So, it’s about defining what it is to be a broker going forward. “I think it’s probably one of the most important things, and you could probably argue that for the whole industry.”

Looking at the progress and innovation of certain technology just in the past decade shows that almost anything is possible in the very near future, he said.

“If you’re walking down the street and three minutes ago there was a call to the police for a mugging, do you flag that through to someone who’s your client — who’s just about to walk down that street — and say, ‘Don’t do that, turn around, go the other way.’ I mean, that’s the level at which you can introduce technology,” Smith predicted.

In the past, people have viewed technology and automation as a potential threat to jobs, but that’s not how the

evolution of technology has played out. Instead, people are free to pursue those particular human skills to the benefit of clients and businesses.

“We’re not very good at doing things in straight lines. It’s boring and repetitive,” Smith said. But there are some things that technology is better at than humans. “So, stop fighting it and become better at what humans do,” he said.

That means focusing on what humans do best — relationships and building trust with other humans.

“It’s heartening to hear you say that the role of the human being in the insurance world will still be highly relevant despite all this or in light of all the new technologies,” said van Aartrijk.

Part of the challenge is building and retaining ongoing relationships, Smith added. Rather than only seeing clients to make a sale or address a catastrophe, their insurance partners should aim for more.

“It’d be hard for you to tell me that they’re not able to generate more revenue as a

consequence of that relationship, especially when you’re bringing value to your client, their family and their business on a very regular basis.”

Technology and AI will only get better at making predictions and connecting people, Smith added. The shift to working from home during the pandemic is just one example of how technology allowed companies to reimagine the way they do business.

Even before the pandemic, there was a shift toward more work-from-home and hybrid operations, but the necessities of the pandemic accelerated that trend. Hybrid work has become “the norm,” Smith said. Now, we appreciate that work can be carried out anywhere that’s appropriate and that collaboration doesn’t have to be limited to the people in a room, he said.

“The obvious thing is the death of distance. We don’t see remoteness as being an issue anymore,” he said. “We come together when we need to come together. We’re remote when we need to be remote,”

But the pandemic also made people more aware of the need to prepare for massive events and potential risks, he added.

“There’s so much knowledge and data that we’ll have about someone’s circumstance, therefore the risk and the increasing and decreasing amount of that risk can be updated in real-time,” Smith said. “That’s quite exciting.”

Listen to the full discussion and learn more about what the future may hold with van Aartrijk and Smith at https://www.insurancejournal.tv/videos/21068/.

Spotlight: Auto 10 Things to Know About Auto Insurance

1. The national combined average premium increased by 10.31%, and average liability premiums increased by 10.36% over the 2016–2020 period. The national combined average premium per insured vehicle was $1,176, a 2.4% decrease from 2019 to 2020. - 2019–2020 Auto Insurance Database Report, NAIC

2.

Auto enthusiast Gilbert J. Loomis paid $7.50 for $1,000 of liability protection in the first instance of an auto insurance policy in 1897. - International Risk Management Institute

3.

A distracted driving ticket can hike insurance rates by 22% and one at-fault accident can result in rate increase of 32%. –Insurance.com

4.

In 2020, there were 3,142 people killed and an

estimated additional 324,652 people injured in motor vehicle crashes involving distracted drivers. – U.S. Department of Transportation, National Highway Safety Administration.

5.

The national total liability incurred losses was $105.4 billion in 2019, a 6.79% increase from 2017. The average incurred loss per collision claim increased 9.56% from $4,400 per claim in 2017 to over $4,821 per claim in 2019. - 2019–2020 Auto Insurance Database Report, NAIC

6.

In 1898, Travelers wrote one of the first auto policies covering a car owner against damages to persons or property caused by the car. Liability limits were $5,000 for one person and

$10,000 when more than one person was hurt.International Risk Management Institute

7.

About 1 in 5 of the people who died in crashes involving a distracted driver in 2019 were not in vehicles they were walking, riding their bikes, or otherwise outside a vehicle. – Centers for Disease Control and Prevention

8.

In 2018, there were 1,298 catalytic converter thefts for which a claim was filed. In 2019, it was 3,389 thefts with a claim. In 2020, theft claims jumped to 14,433, a 325% increase. Thieves can pocket around $250 for a catalytic converter, but insurance claims for a stolen catalytic converter in 2020 ranged from $500 to $3,000 - National Insurance Crime Bureau

9.

22% of drivers admit to lying to their auto insurer. 8% lied about their address to lower their premium, and another 8% lied about the drivers in their household. However, 9% of those who admitted to “lying” to their insurer said they made claims for damages and then pocketed the money after receiving a claims check for damages. This isn’t fraud.

Policyholders can keep the money intended for repairs as long as their policy doesn’t prohibit it and they own the car outright. - Value Penguin

10.

About 23 roadside workers (one every two weeks) are killed each year and hundreds more sustain injuries while assisting motorists and nearly 350 motorists are struck and killed each year while outside their vehicle on the roadside.

- National Highway Traffic Safety Administration

Idea Exchange: Ask the Insurance Recruiter

Women Insurance Pros on Balance, Community and the Future

For March’s column I wanted to celebrate Women’s History Month, but beyond that I didn’t know what the message would be. Thankfully, I know amazing women. Their answers to “What’s happening for women in the insurance industry?” revealed consistent themes on gender equality and everyone’s role in Diversity, Equity, and Inclusion initiatives.

Emphasizing Work/Life Balance

2022 was a good year for Elizabeth (Biz) Fineman, executive recruiting manager at Sterling Seacrest Pritchard. She leads talent acquisition at a Top 50 Insurance Broker, her Tennessee Volunteers had a great football season, and she’s a new mom.

“It’s a crazy time for me and, frankly, a lot of women. We want to do everything — family + career — but finding balance is hard. That’s why I appreciate what SSP does to care for me and others.” Citing the

agency’s Unlimited PTO, she’s grateful not to worry about PTO like other friends, men and women, who are caregivers without the same support from their employer.

“Covid made it even harder to connect with colleagues,” which is why SSP’s Mom’s Group is important for women from all partner groups, in different stages of the “mom career track”, to come together. Fineman said, “It’s comforting to know I’m not alone. I ask others for personal and professional advice who have been down the same road.”

Investing in Future Generations

Ann-Marie Rollo, senior vice president of the Private Client Division at Eastern Insurance Group, and Joanne Szymaszek, president of Johnson Insurance Services, say change happens when people (over processes) genuinely commit to career advancement initiatives for women. Rollo and Szymaszek share similar

career tracks. Both joined the industry straight out of school, benefited from early career mentors, and today, in leadership roles, make an intentional effort to do the same for the next generation.

“I was fortunate to have someone recognize my potential and give me an opportunity to grow,” said Rollo. Combined with Eastern Insurance Group’s “concerted and conscious effort to advance women and diverse professionals into leadership,” she strives to recreate success for other women including college grads, converts from other business sectors and tenured insurance professionals. “We have leaders who first joined Eastern in temporary roles,” she said. “It’s about creating positions for people to fit their strengths and diverse points of view.”

Szymaszek sees a shift in the number of women in leadership, but she also acknowledged, “There’s more work to be done. Women in insurance thins as we get

Elizabeth (Biz) Fineman

Ann-Marie Rollo

Joanne Szymaszek

into executive ranks.”

That’s why she serves as the leader of the agency’s Women’s Executive Resource Group. Szymaszek’s involvement beyond her job responsibilities energizes and connects her to the needs and challenges of women throughout the company. “Diversity and inclusion can start small. It doesn’t have to be a grand plan or based on metrics. For me, the goal is simple. To be my authentic self, go ‘all-in’, and connect one person to another.”

Building Community

How do you connect women and raise up their voices when everyone’s running in a thousand directions? For Michelle Trueblood, chief human resources officer and Sarah Michels-Newell, director of

talent acquisition and employee engagement at The Horton Group, the answer came in the formation of HER HORTON.

“Over the past couple of years, post-Covid, the women at Horton juggled a lot and asked, ‘What’s my future?’ We wanted them to find a group, a safe space to talk about things, and most importantly, solutions for what they needed,” Trueblood said. “HER HORTON cracked the code. Now women have a greater opportunity to be seen and heard as well as to advocate for themselves.”

The program has grown to 80-plus members, of all ages and tenure, who regularly meet to discuss women’s issues. Last year’s theme, Health and Wellness, spurred an in-house conference and enhancements to the company’s benefits

for female specific health needs. HER HORTON’s success has gained attention from carriers who want to participate in future events.

By

Trueblood said, “We are excited about the movement. We are learning about the strengths everyone brings to the table. We are reestablishing the care the company has for its people and its people have for one another. Most importantly, we’re finding common points of light that often have nothing to do with work.”

Newgard is partner and senior search consultant for Capstone Search Group, a national recruiting firm dedicated to the insurance industry. Email: asktherecruiter@ csgrecruiting.com.

Mary Newgard Michelle Trueblood Sarah MichelsNewell

Hospitality Risks

earching for the right market for a hard-to-place hospitality risk? Look no further than Insurance Journal’s Hospitality Risks Directory — a comprehensive listing of excess and surplus lines intermediaries and carriers offering hospitality risks coverage nationwide.

The information listed in this directory has been compiled to serve as a resource guide for independent agents and brokers looking for superior markets for everything from nightclubs to special events, hotels to motels, spas, resorts and restaurants too.

All markets profiled in this directory have been updated with the most current information available provided directly by the intermediaries and carriers writing the coverage. IJ has made every attempt to ensure the accuracy of all information listed in this directory.

To submit a listing for future Hospitality Risks directories, e-mail Kristine Honey at: khoney@insurancejournal.com. We hope you find IJ’s 2023 Hospitality Risks Directory to be a useful tool when searching for quality markets.

To comment on this directory, or any other Insurance Journal resource, please e-mail: editorial@insurancejournal.com.

Banquet Halls

Banquet Halls coverage category sponsored by: Nautilus Insurance Co. & Great Divide Ins. Co. - for more info, check out our ad on page 27 (National).

Banquet Halls

Bars/Night Clubs

Bars / Night Clubs coverage category sponsored by: M.J. Hall & Company, Inc. - for more info, check out our ad on page 3 (West).

Bars/Night Clubs

Ins. Svcs, Inc.

- Underwriting Facilities All States

Quaker Special Risk Most States

Quirk & Company LA NM OK OR TX WA

Risk Placement Services, Inc. All States

Risk Placement Services Sacramento CA

RMS Hospitality Group (+ Pubs/Taverns) All States

Roush Insurance Services, Inc. IL IN OH

RT Specialty All States

SIS Wholesale Insurance Svcs (and Taverns) All States except AK FL NM

Southern Insurance Underwriters (SIU)AL FL GA SC TN

Specialty Insurance (and Taverns) AZ CA CT DE FL GA IL MA MD MI MN MO NC NJ NY OH PA RI SC TN TX

Tejas American General Agency TX

The McGowan Companies All States

U.S. Risk, LLC All States

UFG Specialty Excess P&C coverages in All States

USASIA Insurance Services CA NV

USG Insurance Services, Inc. All States

W.A. Schickedanz Agency, Inc. AR IL MO

Walter General Agency (WGA) AR IA IL IN KS KY MO OK TN

XPT All States

XPT:IBI IL IN MI

2022 Hospitality Risks Directory

Bed & Breakfasts

Breweries/Micro

Caterers

Caterers coverage category sponsored by: Golden Bear - for more info, check out our ad on page 13 (National).

2022 Hospitality Risks Directory

Caterers

Dinner Theaters

Gentlemen’s Clubs

Hotels / Motels coverage category sponsored by: Applied Underwriters - for more info, check out our ad on pages 2 & 3 (National) as well as the Back Cover.

2023 Hospitality Risks Directory

Hotels/Motels

Resorts

Restaurants coverage category sponsored by: Southern Insurance Underwriters (SIU) – for more info, check out our ad on page 1 (Southeast).

2023 Hospitality Risks Directory

Spas

SASSI

Tejas

2023 Hospitality Risks Directory

Special Events

Special Events coverage category sponsored by: Philadelphia Insurance Companies - for more info, check out our ad on page 9 (National).

Special Events

2023 Hospitality Risks Directory - Alphabetical Directory of Markets

AllComp Solutions

555 North Lane, Ste. 6060, Conshohocken, PA 19428

Phone: 610-808-9586, Fax: 610-941-9889

Email: nsmmarketing@nsminc.com

allcompsolutions.com

Alliant Insurance Services

18100 Von Karman Ave., 10th Fl, Irvine, CA 92612

Phone: 949-756-0271

Email: marcomm@alliant.com www.alliant.com

Amalgamated Insurance Underwriters

1 Paragon Dr., Ste. 265, Montvale, NJ 07645

Phone: 845-426-0400

Email: hello@aui-usa.com

www.aui-usa.com

American Specialty Insurance & Risk Services

7609 W. Jefferson Blvd., Ste. 100

Fort Wayne, IN 46804

Phone: 260-969-5203, Fax: 260-969-4729

Email: sbatt@americanspecialty.com

www.americanspecialty.com

American Union Risk Associates, LLC

100 N. Federal Hwy, Ste. 203

Hallandale Beach, FL 33009

Phone: 877-506-1430, Fax: 954-362-1527

Email: Thomas.Clementi@aurains.com www.aurains.com

Ashley General Agency

2040 N. Loop 336 W, Ste. 200, Conroe, TX 77304

Phone: 936-441-5959, Fax: 936-521-5922

Email: hnelson@ashleyga.com

www.ashleyga.com

Aspera Insurance Services, Inc.

2035 Maywill St., Ste. 100, Richmond, VA 23230

Phone: 804-774-2101, Fax: 804-673-5697

Email: marketing@asperains.com

www.asperains.com

Atlas General Insurance Services, LLC

6165 Greenwich Dr., Ste. 200, San Diego, CA 92122

Phone: 800-952-1494, Fax: 858-724-5280

Email: marketing@atlas.us.com

www.atlas.us.com

Bass Underwriters

6951 W. Sunrise Blvd., Plantation, FL 33313

Phone: 954-473-4488, Fax: 954-316-3100

Email: businessdevelopment@bassuw.com

www.bassuw.com

Berkley Fine Dining Specialists

301 Route 17 North, Ste. 900, Rutherford, NJ 07070

Phone: 201-518-2500

Email: mail@berkleyluxurygroup.com

www.berkleyluxurygroup.com

Berkley Select

550 W. Jackson St., Ste. 500, Chicago, IL 60661

Phone: 312-800-6200, Fax: 312-207-1839

Email: info@berkleyselect.com

www.berkleyselect.com

Braishfield Associates, a division of Hull & Company, LLC

5750 Major Blvd., Ste. 200, Orlando, FL 32819

Amwins

See Website for Locations - HQ - Charlotte, NC 28210

Phone: 704-973-3489, Fax: 704-943-9000

Email: marketing@amwins.com

www.amwins.com

Amwins Underwriting

4725 Piedmont Row Dr., Ste. 600, Charlotte, NC 28210

Phone: 704-749-2700

Email: marketing.uw@amwins.com

www.amwins.com/underwriting

Anderson & Murison, Inc.

800 W. Colorado Blvd., Los Angeles, CA 90041

Phone: 323-255-2333, Fax: 323-255-0957

Email: dena.martin@monarchexcess.com

www.andersonmurison.com

Applied Underwriters, Inc.

P.O. Box 3804 Omaha, NE 68103

Phone: 877-234-4450, Fax: 877-234-4452

Email: info@auw.com

auw.com

Ascendant Insurance Solutions

2199 Ponce de Leon Blvd., Ste. 500

Coral Gables, FL 33134

Phone: 305-820-4360, Fax: 305-820-4360

Email: marketing@ascendantgroup.com www.ascendantgroup.com

Phone: 888-335-6616, Fax: 888-335-6615

Email: solutions@braishfield.com

www.braishfield.com

CID Insurance Programs, Inc.

7125 El Cajon Blvd. Ste 3, San Diego, CA 92115

Phone: 800-922-7283, Fax: 619-593-2008

Email: Teresa@cidinsurance.com

www.cidinsurance.com

Cochrane & Company

P.O. Box 19150, Spokane, WA 99219

Phone: 509-838-0655, Fax: 509-838-1710

Email: marketing@cochraneco.com

www.cochraneco.com

Concorde General Agency

720 28th St. S, Fargo, ND 58103

Phone: 701-726-1611

Email: scott@cgains.com

www.cgains.com

Coterie Insurance

4455 Carver Woods Dr., Ste. 100 Cincinnati, OH 45242

Phone: 855-566-1011

Email: john.poucher@coterieinsurance.com

www.coterieinsurance.com

Covenant Underwriters

e-commerce insurance programs

1221 McKinney St., Ste. 3110, Houston, TX 77010

Phone: 346-330-3777

Email: broker@covenantunderwriters.com

https://covenantunderwriters.com/

Covenant builds specialty programs that make it easier for retail brokers to write E+S package policies. E-commerce platform, multiline policy, and automated billing take paperwork off your desk so you can focus on your next prospect!

CRC - Middletown

421 Wadsworth St., Middletown, CT 06457

Phone: 860-347-9600, Fax: 860-347-9611

Email: ctapps@crcgroup.com

www.crcgroup.com

DeCotis Insurance Associates

Brecht & Associates

1450 Hughes Rd., Ste. 109, Grapevine, TX 76051

Phone: 817-424-5335, Fax: 817-424-3772

Email: jbrecht@brechtassoc.com

www.brechtassoc.com

Business Alliance Insurance Company

400 Oyster Point Blvd., Ste. 327 South San Francisco, CA 94080

Phone: 650-866-3999, Fax: 650-866-3996

Email: sbarsotti@ebaic.com

www.ebaic.com

Centrex Underwriters

7508 Capital Dr., Germantown, TN 38138

Phone: 901-201-6076, Fax: 901-767-0153

Email: jcooper@centrexuw.com

www.centrexuw.com

245 Waterman St., Ste. 501, Providence, RI 02906

Phone: 401-351-0066

Email: tdecotis@decotis.com

www.decotis.com

Distinguished Programs

1180 Avenue of the Americas, 16th Fl New York, NY 10036

Toll-Free: 888-355-4626 ; Main: 212-297-3100

Email: jsafer@distinguished.com

www.distinguished.com

Eastern Underwriting Managers

300 N. Forest Park Blvd., Ste. 103, Knoxville, TN 37919

Phone: 865-347-2220, Fax: 865-312-9610

Email: garland@easternunderwriting.com

www.easternunderwritingmanagers.com

2023 Hospitality Risks Directory - Alphabetical Directory of Markets

Element22 Insurance Services

3000 Gulf to Bay Blvd., Ste. 600, Clearwater, FL 33759

Phone: 877-591-8283

Email: dapplebaum@element22ins.com

www.element22ins.com

Entertainment Risk

6300 N. Sagewood Dr., Ste. H251, Park City, UT 84098

Phone: 844-368-7475

Email: info@entertainmentrisk.com

www.entertainmentrisk.com

Erickson-Larsen, Inc.

6425 Sycamore Ct. N, Maple Grove, MN 55369

Phone: 763-535-0055

Email: pbloch@ericksonlarseninc.com

www.ericksonlarseninc.com

Executive Insurance Professionals, PLLC

6031 W. Interstate 20, Ste. 249, Arlington, TX 76017

Phone: 800-779-4095, Fax: 866-779-4331

Email: cheryl@execins.com

www.execins.com

First Choice Insurance Intermediaries, Inc.

814 A1A North, Ste. 206, Ponte Vedra Beach, FL 60173

Phone: 866-821-9572, Fax: 904-543-4501

Email: info@firstchoiceii.com

www.firstchoiceii.com

Gorst & Compass Insurance

9310 Topanga Canyon Blvd., Chatsworth, CA 91311

Phone: 818-507-0900, Fax: 818-507-1133

Email: mail@gorstcompass.com

www.gorstcompass.com

Halcyon Underwriters

555 Winderley Place, Ste. 420, Maitland, FL 32751

Phone: 800-393-9090, Fax: 407-660-0525

Email: marketing@halcyonuw.com

www.halcyonuw.com

Hospitality Insurance Group

106 Southville Rd., Southborough, MA 01772

Phone: 877-366-1140, Fax: 508-836-4940

Email: MTrombly@hmic.com

www.HMIC.com

Indemnity Excess & Surplus Agency

1915 NE Stucki Ave., Ste. 450, Hillsboro, OR 97006

Phone: 503-526-9700, Fax: 503-626-2260

Email: submissions@ies-xs.com

www.ies-xs.com

Insurance Program Managers Group

225 Smith Rd., St. Charles, IL 60174

Phone: 888-377-5845, Fax: 888-377-5875

Email: Kate.Peterson@ipmg.com

www.ipmg.com

Integrated Specialty Coverages (ISC)

500 Mamaroneck Ave., Ste. 320, Harrison, NY 10528

Phone: 908-723-8559

Email: contact@iscmga.com

www.iscmga.com

IPC

P.O. Box 1150, Gardnerville, NV 89410

Phone: 775-782-6655, Fax: 775-782-6654

James River Insurance Company

6641 W. Broad St., Ste. 300, Richmond, VA 23230

Phone: 804-289-2700, Fax: 804-549-5087

Email: info@jamesriverins.com

www.jamesriverins.com

Founders Insurance Company

1350 E. Touhy Ave., Ste. 200W, Des Plaines, IL 60018

Contact: Pat Vaulman

Phone: 800-768-0040 ext 2562, Fax: 847-296-3362

Email: pvaulman@foundersinsurance.com www.foundersinsurance.com

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

FTP of California

P.O. Box 120747, San Diego, CA 92112

Phone: 314-496-7077

Email: lglaser@FTPins.com

www.ftpins.com/california

Gateway Specialty Insurance

1170 Devon Park Dr., Wayne, PA 19087

Phone: 877-977-4474, Fax: 610-254-1855

Email: info@gatewayspecialty.com

www.gatewayspecialty.com

Golden Bear

1550 W. Fremont St., Stockton, CA 95203

Phone: 209-948-8191, Fax: 209-948-4624

Email: support@goldenbear.com

www.goldenbear.com

Email: tammy@ipc-nv.com

www.ipc-nv.com

Irving Weber Associates, Inc. (IWA)

10801 Mastin Blvd., Ste. 950, Overland Park, KS 66210

Phone: 800-243-1811, Fax: 888-622-0414

Email: info@iwains.com

www. iwains.com

Izzo Insurance Services, A div of Hull & Co.

150 S. Bloomingdale Rd., Bloomingdale, IL 60108

Phone: 800-800-1704, Fax: 630-582-2803

Email: MJones@IzzoInsurance.com

www.IzzoInsurance.com

J.M. Wilson

8036 Moorsbridge Rd., Portage, MI 49024

Phone: 800-282-8113, Fax: 269-327-2620

Email: cbaldwin@jmwilson.com

www.jmwilson.com

Jacobs & Associates

12782 Prospect Rd., Strongsville, OH 44149

Phone: 440-625-2690, Fax: 440-625-2731

Email: beth.jacobs@towerstonecorp.com

www.jacobsnow.com

Jimcor Agencies

60 Craig Rd., Montvale, NJ 07645

Phone: 201-573-8200, Fax: 201-573-8820

Email: marketing@jimcor.com

www.jimcor.com

Joseph Krar & Associates, Inc.

1676 West St., Southington, CT 06489

Phone: 860-628-3967, Fax: 860-628-3967

Email: emailrec@jkrar.com

www.jkrar.com

K & K Insurance Group, Inc.

1712 Magnavox Way, Ft. Wayne, IN 46804

Special Events Ph: 800-553-8368, Fx: 260-459-56243

Resorts Ph: 877-355-0315, Fx: 260-459-5990

Email: kk.general@kandkinsurance.com www.kandkinsurance.com

Legacy Employer Concepts, LLC

7901 4th St. North Ste. 300, St. Petersburg, FL 33702 Phone: 813-460-9166

Email: brett@legacyemployerconcepts.com

www.legacyemployerconcepts.com

London Underwriters, LLC

18851 NE 29th Ave., Ste. 406, Aventura, FL 33180 Phone: 866-245-5197, Fax: 866-251-3030

Email: df@londonuw.com ; jg@londonuw.com www.londonuw.com

M.J. Hall & Company, Inc.

P.O. Box 192, Stockton, CA 95201

Phone: 209-948-8108, Fax: 209-465-3843

Email: Alyssa.Lahti@mjhall.com

www.mjhallandcompany.com

Hospitality Risks Directory - Alphabetical Directory of Markets

MacNeill Group

P.O. Box 45-9003, Sunrise, FL 33345-9003

Phone: 954-331-4800 ext. 2031, Fax: 954-331-4848

Email: mgmarketing@macneillgroup.com

www.macneillgroup.com

Market Finders Insurance Corp

P.O. Box 6549, Louisville, KY 40206

Phone: 800-626-5660, Fax: 502-426-7970

Email: kelliwharton@mfic.com

www.mfic.com

Number One Insurance Agency, Inc.

91 Cedar St., Milford, MA 01757

Phone: 508-634-2900, Fax: 508-634-2930

Email: atobin@massagent.com

www.massagent.com

One80 Intermediaries

3250 N. 29th Ave., Hollywood, FL 33020

Phone: 561-459-2881 - Scott Cook

Email: scook@one80intermediaries.com

www.one80intermediaries.com

Osprey Underwriters

777 W. Putnam Ave., Greenwich, CT 06830

Phone: 203-489-3400

Email: quotes@ospreyuw.com

www.ospreyuw.com

Pacific Excess Insurance Marketing

6363 Katella Ave., Cypress, CA 90630

Phone: 800-222-5582, Fax: 714-228-7838

Email: marketing@pacificexcess.com

Professional Liability Insurance Svcs, Inc.Underwriting Facilities

5802 Thunderbird, Ste. 100, Lago Vista, TX 78645

Phone: 800-761-7547, Fax: 512-327-5834

Email: underwriting@plisinc.com

www.plisinc.com

Professional Program Insurance

Brokerage, A division of SPG Insurance Solutions, LLC

371 Bel Marin Keys Blvd., Novato, CA 94949

Phone: 415-475-4300, Fax: 415-475-4303

Email: info@ppibcorp.com

www.ppibcorp.com

ProHost USA

4500 Park Glen Rd., Ste. 410, Minneapolis, MN 55416

Phone: 952-922-2404

Email: info@prohostusa.com

www.prohostusa.com

Quaker Special Risk

MAXIMUM

222 S. Riverside Plaza, Ste. 2340, Chicago, IL 60606

Phone: 312-559-9348

Email: joem@maxib.com

www.maxib.com

McLeckie Insurance Group

P.O. Box 770, Naples, TX 75568

Phone: 903-897-9090, Fax: 760-462-1696

Email: bill@mcleckie.com

www.mcleckie.com

Monarch E&S Insurance Services

2550 N Hollywood Way, Ste. 501, Burbank, CA 91505

Phone: 818-249-0100, Fax: 818-249-1166

Email: clarac@monarchexcess.com

www.monarchexcess.com

Nautilus Insurance Co. & Great Divide Ins. Co.

7233 E. Butherus Dr., Scottsdale, AZ 85260

Phone: 480-951-0905, Fax: 480-951-9730

Email: mmccormick@nautilus-ins.com

www.nautilusinsgroup.com

NeitClem Wholesale Insurance Brokerage, Inc.

7442 N. Figueroa St., Los Angeles, CA 90041

Phone: 323-258-2600, Fax: 323-258-2676

Email: jcenteno@neitclem.com

www.neitclem.com

New Age Underwriters Agency, Inc.

1981 Marcus Ave., Ste. C108, Lake Success, NY 11042

Phone: 516-488-2500, Fax: 516-488-2508

Email: m.ascher@newageins.com

www.newageins.com

New England Excess Exchange, Ltd.

P.O. Box 650, Barre, VT 05641

Phone: 800-548-4301, Fax: 800-347-4935

Email: achase@neee.com

www.neee.com

NEXT Insurance

975 S. California Ave., Palo Alto, CA 94304

Phone: 855-222-5919

Email: agents@nextinsurance.com

agents.nextinsurance.com

www.pacificexcess.com

Pacific Gateway Insurance Agency

28470 Ave Stanford, Ste. 325, Valencia, CA 91355

Phone: 800-354-4844, Fax: 661-257-5988

Email: mark_thorne@pgiainsurance.com

www.pgiainsurance.com

Patriot National Underwriters, Inc.

P.O. Box 803143, Dallas, TX 75380

Phone: 972-239-1458, Fax: 972-233-3487

Email: corky.ellis@patriotnational.com

www.patriotnational.com

Philadelphia Insurance Companies

One Bala Plaza, Bala Cynwyd, PA 19004

Phone: 800-873-4552, Fax: 610-617-7940

Email: phlysales@phlyins.com

www.phly.com

Philadelphia Insurance Companies, a Member of the Tokio Marine Group, designs, markets, and underwrites commercial property/casualty and professional liability insurance products incorporating value added coverages and services for select industries.

Pie Insurance

1615 L St. NW, Ste. 620, Washington, DC 20036

Email: rebecca.sunshine@pieinsurance.com

agencies.pieinsurance.com

Prime Insurance Company

303 W. Madison St., Ste. 2075, Chicago, IL 60606

Phone: 800-257-5590, Fax: 800-257-5590

Email: RJL@primeis.com

www.primeis.com

See Website for Locations Headquarters - Eatontown, NJ 07724

Phone: 800-447-4180, Fax: 732-223-9072

Email: creid@qsr-insurance.com

www.quakerspecialrisk.com

Quirk & Company

P.O. Box 792030, San Antonio, TX 78279

Phone: 800-299-9421, Fax: 210-340-4075

Email: lvazquez@quirkco.com www.quirkco.com

Risk Placement Services, Inc.

70+ Locations, Headquarters - Rolling Meadows, IL

Phone: 866-595-8413

Email: Contact_Us@RPSins.com

www.rpsins.com

Risk Placement Services Sacramento

2211 Plaza Dr., Ste. 100, Rocklin, CA 95765

Phone: 916-780-7000, Fax: 916-780-7181

Email: RPS.Rocklin.Webmail@rpsins.com www.abraminterstate.com

River Valley Underwriters

10 Shackelford Plaza, Ste. 203, Little Rock, AR 72211

Phone: 833-788-7887

Email: aadams@rvuins.com www.rvuins.com

RMS Hospitality Group

100 Ring Rd. West, Ste. 200, Garden City, NY 11530

Phone: 516-742-8585 ext. 204

Fax: 516-742-5678

Email: info@rmshg.com

www.rmshg.com

Roush Insurance Services, Inc.

18077 River Rd., Ste. 107, Noblesville, IN 46062

Phone: 800-752-8402, Fax: 317-776-6891

Email: info@roushins.com

www.roushins.com

RT Specialty

1792 Woodstock Rd., Bldg. 200, Roswell, GA 30075

Phone: 770-971-9975, Fax: 770-971-7608

Email: jason.murrey@rtspecialty.com

www.rtspecialty.com

2023 Hospitality Risks Directory - Alphabetical Directory of Markets

SASSI - Salon & Spa Specialty Insurance

21 Maple Ave., Bay Shore, NY 11706

Phone: 888-823-9380, Fax: 631-666-7646

Email: info@brownyard.com

www.sassiagency.com

SIS Wholesale Insurance Services

1811 Aston Ave., Ste. 200, Carlsbad, CA 92008

Phone: 760-599-7242, Fax: 866-467-6701

Email: info@sisinsure.com

www.sisinsure.com

Southern Insurance Underwriters (SIU)

4500 Mansell Rd., Alpharetta, GA 30022

Phone: 800-568-1700, Fax: 678-498-4610

Email: marketing@siuins.com

www.siuins.com

Specialty Insurance

1610 Route 88 Ste. 102, Brick, NJ 08724

Phone: 732-701-8900

Email: apyciak@specialtyagency.com

www.specialtyagency.com

TAPCO Underwriters, Inc.

3060 S. Church St., Burlington, NC 27216

Phone: 800-334-5579 Fax: 336-584-8880

Email: kallred@gotapco.com

www.gotapco.com

Tejas American General Agency

1620 La Jaita Dr., Ste. 300, Cedar Park, TX 78613

Phone: 512-346-0030, Fax: 512-342-2803

Email: marketing@taga1.com

www.taga1.com

The McGowan Companies

20595 Lorain Rd., Fairview Park, OH 44126

Phone: 440-333-6300, Fax: 440-333-3214

Email: syoung@mcgowancompanies.com

www.mcgowancompanies.com

McGowan Program Administrators (MPA) is America’s leading writer of innovative insurance programs. MPA is a Managing General Underwriter and Program Manager. MPA designs, administers and markets highly-specialized programs of insurance. These programs are available exclusively through MPA.

Travelers

Contact your local Commercial Accounts Representative for more information. www.travelers.com

U.S. Risk, LLC

8401 N. Central Expressway, Ste. 1000 Dallas, TX 75225 Phone: 800-232-5830, Fax: 214-647-5035

Email: kellyK@usrisk.com www.usrisk.com

UCA General Insurance Services, Inc.

6363 Katella Ave., Cypress, CA 90630

Phone: 800-222-5582, Fax: 714-228-7855

Email: marketing@ucageneral.com www.ucageneral.com

UFG Specialty

101 N. 1st Avenue, Ste. 1750, Phoenix, AZ 85003 Phone: 213-634-6421

Email: gbohan@unitedfiregroup.com www.ufgspecialty.com

USASIA Insurance Services

319 Union Ave., Pomona, CA 91768

Phone: 909-618-0288, Fax: 909-618-0289

Email: shirley@usasia-ins.com

www.usasia-ins.com

USG Insurance Services, Inc.

1000 Town Center Wy, Ste. 300, Canonsburg, PA 15317 Phone: 800-886-3897, Fax: 724-265-5751

Email: jkessel@usgins.com

www.usgins.com

W.A. Schickedanz Agency, Inc.

300 W. Main St., Belleville, IL 62220 Phone: 800-869-9976, Fax: 618-233-0672

Email: submissions@was-irp.com

www.was-irp.com

Walter General Agency (WGA)

273 Clarkson Rd., Ste. 102, Ellisville, MO 63011

Phone: 636-391-4841, Fax: 636-391-2115

Email: newquotes@wgamo.com

www.wgamo.com

Western Surplus Lines Agency, LLC

P.O. Box 6609, Abilene, TX 79608

Phone: 800-592-4408, Fax: 325-695-0371

Email: BCraig@westernsurplus.com

www.westernsruplus.com

Wilson Smith Group 1001 S. Dairy Ashford, Ste. 110, Houston, TX 77077

Phone: 713-808-9770, Fax: 713-808-9717

Email: info@wilsonsmithgroup.com

www.wilsonsmithgroup.com

www.insurancehelper.com

P.O. Box 1549, Grass Valley, CA 95949

Phone: 530-648-1100, Fax: 855-493-8368

Email: info@theeventhelper.com

www.theeventhelper.com

XPT 4965 Preston Park Blvd., Ste. 650, Plano, TX 75093

Phone: 972-702-0500, Fax: 972-702-0504

Email: mark.kaufman@xptspecialty.com

www.xptspecialty.com

XPT:IBI

1 Indiana Square, Ste. 2575, Indianapolis, IN 46204

Phone: 800-536-4783, Fax: 317-885-7011

Email: gpomeroy@goibi.com

www.goibi.com

Idea Exchange: Agency Technology

Spying, AI and Hacking, Oh My … 7 Agent Technology Trends to Watch in 2023

Technology is a double-edged sword that can drive fear as much as excitement for the future.

Game-changing tech, though, allows us to make our imaginations a reality. Let’s take a spin down Future Lane to see what tech might hold for independent agencies.

Internet 1-2-3

By Matt Shannahan

A great battle for the ownership of the internet is coming. Internet 1.0 was read-only content. Internet 2.0 was a readwrite tool that introduced blogs and social media in a flourishing content creator economy. Internet 3.0 is a read-write-execute tool, which attempts to claw back ownership and control of content now firmly in the hands of a half-dozen digital robber barons.

At moments, Web 3.0 feels like the internet did in 1995: a Wild West full of fringe ideology, flawed business models and charlatans. But if this next layer of the internet can mature and do for value what the current version has done for information, 2030 will look nothing like today.

Retooling for Cyber Warfare

If cyberattacks continue at triple-digit compound annual rates, we’ll soon reach an inflection point and society will cease to function. The World Economic Forum is predicting an imminent “cyber pandemic” as cyber warfare becomes the new battleground. AI’s dark side promises a 100-fold increase in the volume and cunning of

social engineering through deepfakes, those doctored images and sounds put together by machine-learning algorithms that seem real but are not.

Fortunately, the insurance industry is fighting back with cyber coverage and the tech industry is trying to batten down the hatches.

Waiting for sweeping, draconian regulation won’t end well for anyone. As custodians of sensitive information, the finance, insurance and real estate (FIRE) industries are on the front lines of this battle against both criminal gangs and nation states. The information for which independent agents hold custody, if taken by unfriendly hands, can be used in attacks targeted at clients.

MFA Crackdown

Data breaches also will get more attention in 2023. In 2022, new federal regulations called for organizations in certain industry sectors to report significant cybersecurity incidents to the Department of Homeland Security. The answer, of course, is to avoid data breach-

es, and that’s where cybersecurity tool multifactor authentication (MFA) comes in.

The insurance industry is getting wise to the risks of breaches. Many feel the pinch when they try to get an agency cyber insurance policy without having MFA in place for email. Carrier portals are slowly but haphazardly adopting MFA, which ultimately will burden CSRs with juggling a half-dozen methods and apps, often being forced to use their personal devices.

The time is now for agencies to build a comprehensive strategy for MFA while being vocal within the industry about what a disorganized “just check the box” approach to meeting security mandates is doing to end-user productivity. My advice: Demand that portals have WebAuthn/ FIDO2 compatibility, and check out phishing-resistant MFA.

Data Orchestration

Data orchestration — the process of bringing information together from multiple sources, standardizing it, and preparing it for data analysis — is the informational equivalent of turning lead into gold. Data platforms can funnel information feeds into a single location, where it is cleansed, normalized, enhanced, standardized, benchmarked and centralized into a single data-rich source of information about clients/ prospects. That golden image can then be fed into your agency management system or another tool for marketing or service.

Imagine that with the click of a button you can fill in all those client data fields rather than needing your client, staff or

yourself to do so. Data orchestration platforms may also sync your data securely to accounts controlled by you or your clients.

Digital Palm-Reading

It’s long been said that the insurance industry is slow to adopt technology. Artificial intelligence might help us play catch-up. AI blurs the lines between written language and written computer code. If insurance policies are essentially computer code, your policy is effectively an app you can interact with to verify, benchmark, and learn through an actual conversation. Customers may soon be asking: “Hey Siri, does my policy cover X?”

On a similar track but focused on automation is Clause, a contract drafting tool intended to “turn existing legal agreements into ‘living documents’ that integrate with enterprise software systems and blockchain networks.”

The AI Bubble of 2023

AI innovation is as hot in 2023 as crypto was a year ago. AI research is focusing on “large language models,” with tens of billions of investment flooding in. Released in late 2022, AI-driven chatbot ChatGPT has the internet buzzing about what it could do to revolutionize search and draft code and copy. Beyond that, it’s possible that AI could be your future co-pilot across the many tools you currently use daily.

One example: AI could provide an “assistant” trained on your thousands of prior emails that can automatically draft email responses that resemble what you yourself might write.

Some other examples that are already available:

Spellbook can provide input for writing contracts.

DoNotPay is the “world’s first robot lawyer” that taps AI to “help consumers fight against large corporations and solve their problems like beating parking tickets, appealing bank fees, and suing robocallers.”

I Spy With My Little iMessage

In 2022, millions of users took steps to regain a semblance of privacy while using texting and chat. Apps that tout end-to-

end encryption such as Signal, Session and Telegram are replacing legacy apps like iMessage, Facebook Messenger, and basic SMS.

As trust in institutions and corporations continues to hit new generational lows, this trend is set to continue.

An enthusiastic supporter of insurance technology, Shannahan is a systems engineer at Polley Insurance and Risk Management, Gold River, California (An Alliant Company). He is a member of the Network of Vertafore Users (NetVU), which provides education, advocacy, and networking to its members. Email: Matt.Shannahan@polleyinsurance.com.

drive

and relationships its central focus. What other companies

do, Nautilus has.” Danielle S. Wade, CPCU, CIC President & CEO Jackson Sumner & Associates

Idea Exchange: Minding Your Business

Stock Ownership Versus Deferred Compensation

One of the topics an agency owner will often have to discuss with a new or existing producer will be “ownership.” When we ask a producer what they mean by ownership, stock ownership is often what comes to their mind. What they are usually looking for is security and that they are building something for their efforts and retirement.

profit distribution. The value received by a minority owner may be discounted. The value of the producer’s sales efforts is diluted since they only own a small percentage of the firm. Additional stock would need to be purchased by the producer, who often does not have the money to do so.

The agency benefits by having a system that encourages the producers to build their books and remain with the firm, as well. It must be noted that a deferred compensation plan creates a contingent liability for the firm, which does negatively affect agency value.

By Catherine Oak

Stock ownership can conjure up visions of importance and respect. Producers feel that having the word “owner” on their business card will improve sales. Often, only the benefits of stock ownership are understood by the producer and not many of the drawbacks.

Agency owners are often unclear themselves whether or not they should offer stock to a producer. They think about it either when it comes up in an interview with a new producer prospect or when an already employed producer is about to walk out the door and may not come back. The owners feel they are forced to offer stock in order to entice the new producer to join the firm or to retain the currently employed producer and the book of business.

Minority ownership has its pluses and minuses. Being a minority owner means the producer has no control over how the business is run. A minority owner may not qualify for

It is often better to offer the new or existing producer a deferred compensation plan or vesting plan. The producer has direct control over the growth of the equity, based on their production efforts. Based on surveys we have done, about 60% of firms responding indicated they give producers vesting in their books of business. Also, only about 44% of firms will allow a producer to purchase equity in the agency.

What Is Deferred Comp?

Deferred compensation is a method for producers to build long term value for their efforts directly related to their books of business. The plan is often phased in over time until the producer is fully vested in the plan.

However, deferred comp is also “consideration,” which helps uphold the covenant not-to-compete in a producer contract. This is another good reason to have it for producers.

How Does a Producer Qualify?

A producer will qualify for the deferred compensation plan by either time employed by the agency or by the size of the book of business or both. For example, a firm may set the qualification limit at three years of employment and a minimum $250,000 to $300,000 commission book of business. This is what we recommend.

How Does it Work?

Once the producer qualifies for the plan, there is often a phase-in period, typically

three to five years. At the end of the specified period of time, the producer will be considered fully vested in the plan. If a producer leaves during the vesting period, they would only be entitled to a pro-rated portion of the fully vested plan.

A producer that is fully vested in the plan is entitled to deferred compensation equal to a percentage of their book of business. The typical plan sets deferred compensation at 50% of the size of the book of business.

The producer receives the deferred compensation after they leave the firm.

The payout is usually paid over time (five to 10 years typically) and is usually based on account retention. We suggest one times commission as the price paid for the deferred compensation, based on 50% of the size of the book of business.

Other Issues

The agency retains the ownership of the accounts. The producer is just qualifying for a deferred compensation program. If the agency chooses to sell the business to a departing producer, the deferred compensation can be used to offset the purchase price that the two parties set for the book of business.

When an agency sells stock to a producer, the producer’s deferred compensation can be used to offset the purchase price of the stock. Once the producer is an owner, they no longer qualify for the producer deferred compensation program.

Note: When the deferred compensation is paid out, it is taxed as income as the producer receives it. When deferred comp is exchanged for stock, the entire value is taxed at the time the stock is received.

Summary

Consider deferred compensation as a part of the firm’s compensation plan, for those producers that qualify. It will set the organization apart from its peers and should assist in attracting and retaining good producers for the firm.

Oak is the founder of the international consulting firm, Oak & Associates, based in Bend, Oregon and Sonoma, California. The firm specializes in financial and management consulting for national and international insurance agencies, including valuations, mergers and acquisitions, clusters, sales and marketing planning, as well as perpetuation planning.

Phone: 707-935-6565. Email: catoak@gmail.com.

‘Deferred compensation is a method for producers to build long term value for their efforts directly related to their book of business.’

“I regularly refer to Insurance Journal for industry trends, and to provide customers w/ developments that impact their business.”

Karl Henley - EVP at SeibertKeck Insurance Partners & Satisfied Insurance Journal Subscriber

Idea Exchange: Small Business

How Insurers Can Help Small Businesses Grow and Prosper

The past three years taught business owners resilience and adaptability. This is especially true for small businesses faced with the unique challenges of the pandemic, inflation, and the Great Resignation.

But the pandemic also proved to be a time of opportunity for small businesses: According to the Census Bureau, Americans created more than 5.4 million new companies in 2020, an increase of 30% — the highest total on record.

By Chris Schramm

In 2023, growing companies need more support than ever as they scale. Having an insurance partner to help navigate complex issues can make all the difference.

Small businesses and start-ups play a vital role in the economy, providing a diverse array of jobs and driving growth, but they also face a unique set of challenges and risks. Insurers must protect and elevate them to support this entrepreneurial spirit, drive innovation, and ensure the economy grows.

Support System

Small businesses have much to deal with, especially in their early stages. Owners must ensure financial stability for their company while finding customers, planning for growth, and hiring the right people.

These companies have a thin margin of error to succeed and need all the attention and resources to grow. That’s where insurers come into play.

The first step is ensuring businesses are protected against potential losses that could negatively impact their bottom line.

For example, a maintenance contractor hired to operate and work on-site for a startup gets injured on its premises. In that case, proper

insurance coverage could insulate the business from incurring significant losses or liabilities initiated by a lawsuit.

A good insurance partner not only provides this type of insurance but also acts as a partner to the business, ensuring its owner understands what level of protection is right for them. This can be particularly important for those in high-risk industries or facing significant customer traffic with higher liability risks.

Peace of mind allows a business owner to invest their resources where they are needed most, helping to ensure long-term success and growth.

Fostering Growth

Small businesses often require more resources to invest in new technologies and innovative solutions, which can be critical to winning in a highly competitive marketplace.

They need all hands on deck to guarantee progress in the right direction.

Insurers can support research and development by improving cost certainty: By eliminating some of the unknowns in terms of the risk of loss, we help companies better understand where to invest their money.

For example, a business upgrading software to streamline its supply chain operations experiences a system-wide crash due to that upgrade process. The failure halts their entire supply chain. Without proper insurance, this disruption could have a disastrous impact on the business’s bottom line, impacting customers, payroll, company morale, and more.

It’s crucial to properly evaluate risk, as even one liability judgment could disrupt a

company’s forward momentum — a significant setback for many companies. Proper coverage reduces associated financial risks, allowing small business owners to focus on their core operations and invest in their future.

Protecting Against Attacks

Small businesses usually lack larger organizations’ information security and anti-fraud precautions, so they tend to be the perfect victims for fraudsters.

According to a 2018 Association of Certified Fraud Examiners survey, small businesses had an annual median loss to fraud of $200,000. In comparison, larger organizations had an average loss of $104,000.

Suppose an employee makes a fraudulent entry and illegally transfers funds for their personal benefit; this could lead to significant losses for the company — both financially and reputationally — and considerably halt its growth. Business owners can more effectively mitigate losses with proper risk analysis and coverage.

Insurers often help business owners identify blind spots in coverage, avoid the unexpected, and provide adequate insurance when things go south. Insurers also furnish critical aid in identifying and preventing fraud and legal and financial support if fraud occurs.

Small business owners already have enough on their plates. They deserve an insurance partner who understands their unique challenges and vulnerabilities, aims to protect them, and help their business flourish.

The partnership between small businesses and insurance providers protects diverse business interests. It allows companies to continue to innovate, thrive, support job growth, and bolster the economic well-being of communities nationwide.

Schramm is head of primary casualty at Argo Group.

March 6, 2023

AmFed Advantage Insurance Company

1020 Highland Colony Parkway, Suite 700/702

Ridgeland, MS 39157

The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

March 6, 2023

AmFed Casualty Insurance Company

1020 Highland Colony Parkway, Suite 700/702

Ridgeland, MS 39157

The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

March 6, 2023

Vantage Risk Assurance Company

123 North Wacker Drive, Suite 1300 Chicago, IL 60606

The above company has made application to the Division of Insurance to amend their Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

March 6, 2023

AmFed National Insurance Company

1020 Highland Colony Parkway, Suite 700/702

Ridgeland, MS 39157

The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

March 6, 2023

Freedom Specialty Insurance Company One West Nationwide Blvd. Columbus, OH 43215-2220

The above company has made application to the Division of Insurance to amend their Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

March 6, 2023

Stonewood Insurance Company 6131 Falls of Neuse, Suite 306 Raleigh, NC 27609

The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

March 6, 2023

William Penn Life Insurance Company of New York 70 East Sunrise Highway, Suite 500 Valley Stream, NY 11581

The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Life, Accident, and Health Insurance in the Commonwealth of Massachusetts.

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

Closing Quote

Women in Insurance: Breaking Barriers, Creating Equal Opportunities

that inequality between men and women in our society is a thing of the past, when in fact gender inequality still very much exists in both the public and private arena.

By Tal Sharon

The struggle for gender equality in the workplace has come a long way. Promising strides have been made in both the start-up scene and in large corporations to create more opportunities for women and countless new female business leaders have emerged as a result.

In the insurance IT ecosystem — my industry — it has been exciting to watch more and more women rise into tech-forward leadership roles. Unfortunately, though we’ve come a long way, total equality and sufficient diversity in the workplace have yet to be reached. Women are still severely underrepresented in managerial or leadership positions, despite the fairly even gender representation in entry and junior level positions.

As a woman who has been fortunate enough to have moved up the ladder, I’d like to shed light on the challenges I and others have faced and provide insight on the hurdles that remain to breaking down equality barriers.

The Workforce Today

Perhaps the most widespread hinderance to women’s corporate climb is that too many people think

A Deloitte study in 2022 found that, between 2019 and 2022, female representation in the workforce grew from 30.8% to 32.9%, while the number of women in both tech-forward positions and leadership roles rose from 21.2% to 25.3%.

These improvements speak for themselves, but they also reveal how much work remains to create a more balanced workforce.

To counteract this lopsided distribution, employers in the insurance industry must accommodate work arrangements that suit a variety of life situations, with particular attention paid to how they accommodate women. For example, young mothers often prefer to delay their career progression when they have young children. By introducing flexible work expectations and intentionally creating more roles that can be filled on a part-time basis, companies can create a working culture that allows young mothers to continue working without compromising critical time with their children. Fortunately, there has never been a better time to think creatively about work configurations. The silver lining, perhaps, of the pandemic helped accelerate employee demand for hybrid work models.

Organizations can promote a culture of collaboration and professionalism by advancing

women to leadership roles, which, by many accounts not only boosts innovation, but also outstanding performance.

For insurance specifically, promoting women to key positions will produce stronger, more competitive companies as they will gain sensitivity to a broader range of insurance needs while finding flexible and creative solutions.

Ins-Her-Ance

How exactly can women who are striving to get ahead in the insurance industry take matters into their own hands?

Education is a critical aspect. First and foremost, I would encourage women to get their academic degree and continue learning more about the insurance industry. Then, when an opportunity presents itself, you can confidently believe — and prove — that you are the best candidate for the job.

Next, be open minded. An attitude of flexibility and openness allows you to gain insight into the world of possibilities before you. It will also encourage you to embrace new experiences, make way for new ideas to be formed,

and ultimately contribute to your own personal growth, as well as the growth of others in your organization and the organization itself.

Lastly, women who have carved out leadership responsibilities for themselves should always strive to pay it back and mentor other employees trying to grow their careers in insurance — assuming their busy lives and schedules permit. Strides towards gender equality will only solidify when a culture of female empowerment is firmly established and upheld in the workplace.

As companies of every shape and size strive to create more space for women in their organizations, it is important that they don’t think of it merely as just a progressive visibility play.

By building a workplace environment that promotes diversity, mentorship, and an open-minded culture, women in the insurance industry can reach the leadership roles they deserve, and the companies that employ them will flourish because of it.

Sharon is president, life & pension and IPELS Divisions for Sapiens.