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Wild West

Use of artificial intelligence (AI) is on the rise but most firms making use of the new technology do not provide appropriate guidance. That’s according to Gallagher’s 2023/24 State of the Sector report, which found that 71% of firms using AI technology, do not provide internal guidance on when, where or how to use the technology.

Drawing on insights from more than 2,300 communication and human resource leaders across 56 countries, the study found that 1 in 10 communicators (13%) were unsure if their organization was using AI. “For many organizations, it’s the Wild West with regard to how they are adopting and implementing AI,” said Ben Reynolds, global managing director of Gallagher’s communication consulting practice. “Because so few organizations have an AI plan, we can connect the dots to better understand why half of the respondents are skeptical or even fearful about the impact of AI. That said, with an AI plan in place, the technologies may help communicators overcome what they’ve identified as two of the top three barriers in 2024, which are the lack of time and lack of financial resources.”

Companies using AI are three times more likely to believe the technology will reduce workloads, the data found. AI adopters were also 20% more likely to believe it will improve the quality of communications. Even with obvious benefits like increased efficiency, Gallagher recommends organizations focus on getting the basics right and to seek out training opportunities and feedback mechanisms to get the best return on investment.

Despite the advancing technology, more than 8 of 10 communicators (84%) said they rely on managers for communication to some degree. The topics managers most regularly communicate on include strategy, vision and purpose; values, behaviors and culture; and organizational change integration or M&A activities, the report stated.

‘For many organizations, it’s the Wild West with regard to how they are adopting and implementing AI.’

Reliance on managers for communication is not without its drawbacks. Three of five respondents indicated manager communication was below expectations. Nearly 18% of respondents stated “poor people manager communication skills” was one of the top barriers to success in 2024.

The study found employers are leveraging a number of tactics and tools to improve outcomes. The most common resources include on-demand learning (82%), written and/ or downloadable resources to help facilitate communication (74%), managers-only forum/ communications channel (67%), and one-to-one coaching/mentoring on communications skills (63%).

“Managers who were evaluated on their communications skills were twice as likely to meet/exceed expectations as those who were not evaluated. And those who weren’t evaluated/accountable were more likely to receive tools, training and resources,” said Reynolds.

In addition to identifying best practices and areas for improvement, the State of the Sector report examined the well-being of communicators. Nearly 40% of communicators indicated their well-being decreased in 2023. Challenges around dwindling employee attention spans (12%), lack of leadership buy-in and understanding of the profession (27%), and having to do more with less (23%) has likely contributed to this deteriorated well-being.

Chairman of the Board

Mark Wells | mwells@wellsmedia.com

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Joshua Carlson | jcarlson@insurancejournal.com

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EDITORIAL

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Columnists & Contributors

Contributors: Andrea Ball, Dan Epstein, Denise Johnson, Andrew Luttrell

Columnists: Tony Caldwell, Kristen Nevins

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News & Markets

Casualty Reinsurance Renewals See Modest Price Hikes Despite Social Inflation: AM Best

By L.S. Howard

Reinsurers in general maintained adequate capacity for casualty programs, despite concerns about social inflation and some recent reserve strengthening actions, according to a report from AM Best.

For reinsurers, a relatively stable economic environment in 2023, a long run of interest rate hikes, and lower catastrophe losses than in recent years led to ample capacity for the Jan. 1, 2024, renewal season, said the report titled “Despite Heightened Risks, Casualty Reinsurance Renewals See Modest Price Changes.”

AM Best warned that reinsurers, especially casualty reinsurers, may need to be more cautious of systemic risk connected to cyber, emerging risks (such as PFAS, or forever chemicals), and D&O (related to de-SPACs), which could affect multiple insurers, leading to large losses on a reinsurer’s books. (Editor’s note: A de-SPAC transaction is a company merger involving a special purpose acquisition company, a buying entity and a target private business, which carry a higher litigation risk).

The report highlighted the following casualty trends:

• The growing impact of litigation funding on liability awards and settlements is negatively affecting casualty results for primary insurers and reinsurers.

• Both economic and social inflation are adding further pressure on excess reinsurance pricing via worsening claims severity, which has outpaced the increase in prices for a decade.

• With pricing for directors and officers and cyber liability risks moderating following a series of notable pricing increases, reinsurance renewals have returned to normalcy.

• Commercial auto experience remains poor, which is creating reinsurance pricing challenges.

Litigation Funding

Diving into the highlights of the

report, AM Best said that third-party litigation funding continues to drive social inflation in the United States where sophisticated plaintiff attorneys’ tactics contribute to inflated judgments.

These strategies include advanced marketing and emotional messaging, the report said.

“Industry estimates suggest that third-party litigation produces an internal rate of return (IRR) of about 25% for the funding entity, which is generally greater than what can be obtained through traditional investments.”

AM Best explained that the practice of litigation funding will continue, driving up loss costs for insurers, if investors consistently are able to achieve such a high level of return, “especially on investments generally uncorrelated to other financial assets …”

Social Inflation and Economic Inflation

Commercial auto, general liability, and directors and officers (D&O) liability insurance “have been notably affected by social inflation over the past decade,” the report said, noting that increased access to information and negative public sentiment toward large companies via social media have contributed to these trends.

“Tort reform has been effective in a number of states with respect to medical professional liability but has been less effective in the case of personal injury. As such there is generally no limit to the economic or non-economic damages that may be recovered by a plaintiff that proves liability, presenting a significant challenge for casualty insurers.”

AM Best explained that loss development patterns implicitly mimic inflation rates, which affect the accuracy of reserves and the pricing of reinsurance agreements. While the rate of inflation has subsided post-COVID, it has not return to the levels of the previous two decades, the report stated.

“With less certainty that prior year reserves are sufficient, price adequacy is also less certain, leading to a larger risk load for parameter risk in pricing,” AM Best said.

AM Best reported that inflation generally has more of an impact on excess than primary layers, “so excess of loss reinsurance is particularly affected by inflation, whether economic or social.”

Commercial Auto

AM Best said that commercial auto experience remains poor, which is creating reinsurance pricing challenges.

“Despite 10 straight years of primary rate increases, primary pricing has been unable to keep pace with loss trends, further pressuring reinsurance pricing.”

Following near-break-even underwriting results in 2021, commercial auto results deteriorated to an underwriting loss in 2022, comparable to the 2016-2019 period, AM Best said.

“Commercial auto results through third-quarter 2023 were slightly worse compared with third-quarter 2022, at least on a direct basis.”

Explaining the loss trends hitting commercial auto since the beginning of the COVID-19 pandemic in early 2020, AM Best said poor driving has

led to more road fatalities even as the number of total miles driven has dropped.

“Handling smart devices while driving, as well as operating vehicles while stressed or sleep-deprived, has become more commonplace and has contributed to roads being less safe. More severe injuries lead to more claims being litigated, opening the door to third-party litigation funding, which ultimately increases loss severity, as sympathetic juries pile on punitive damages to corporations.”

These increased losses ultimately are leading to higher costs for excess-of-loss reinsurance on individual claims, AM Best said.

AM Best then turned to an analysis of trends in specific lines: D&O, workers’ compensation and cyber — along with the implications of emerging risks, such as PFAS, or “forever chemicals.”

D&O Insurance

While loss frequency has stabilized for D&O insurance, an influx of new primary capital has created supply that now outpaces demand as transactional coverage

needs have diminished, the report said. The impact of social inflation for D&O in recent years “has been muted due to lower frequency; the number of securities class action claims has dropped since the peak 2016-2018 period,” according to AM Best.

“The pendulum has swung quickly to a softening primary market for D&O coverage. Reinsurance rates must go up to offset the inflationary impact on excess layers. For pro rata coverage, ceding commissions were flat to slightly negative at the Jan. 1 renewals.”

Workers’ Compensation

Reinsurers are raising workers’ compensation cover in order to maintain adequate pricing as rates have continued to decline in primary workers’ compensation insurance, AM Best confirmed. “As primary rates decline, reinsurance rates should rise, assuming the primary rate cuts were due solely to competitive pressures and not to declining frequencies or severities.”

The report explained that a flat reinsurance rate on a declining primary premium base results in reinsurers having

less money to cover the same risk.

“[A]ny nominal inflation will lead to larger claim payouts. The expected loss to the excess layer is now greater than a year ago, simply adjusting for inflation, so the pure premium for the layer is greater,” the report stated.

Cyber

While pricing on cyber has softened, AM Best said cyber liability results have improved, which has led to a more efficient renewal process.

Reinsurance for cyber remains mostly pro rata, and war exclusions, systemic risk, and loss aggregation remain concerns.“Cyber insurance is the fastest growing line of insurance, and demand will continue to grow, which will in turn flow through to reinsurance demand,” said AM Best noting that there are signs that more capital is flowing into the cyber reinsurance market and excess of loss reinsurance. “In 2023, the first cyber reinsurance catastrophe bonds were issued, as well as the first industry loss warranty bond (the latter issued by Swiss Re).”

Continued Growth for Surplus Lines in 2023 as Premiums Up 14.6%

By Chad Hemenway

The excess and surplus lines market continued to grow in 2023, with premium reaching nearly $73 billion according to data from 15 state surplus lines offices released by the Wholesale & Specialty Insurance Association (WSIA).

2023 premiums reflected a 14.6% increase over the record-breaking numbers of 2022 when premiums grew more than 24% to $63 billion.

Transactions were up 5.2% to 5.8 million in 2023, led commercial liability and commercial property making up the bulk of the market. Premiums in these lines increased nearly 10% and 32% to about $26.8 billion and $24.2 billion, respectively, in 2023.

Combined, E&S premiums for personal property grew 7.5% in 2023 to about $3

billion but transactions decreased 2.7%. However, the report breaks down data by state, revealing where risk is flowing to the E&S market. For instance, personal property transactions increased the most (26.3%) in California and premiums grew more than 20% to nearly $746 million (though personal property is still just 4.5% of the E&S market in California).

“This was to be expected, given the decisions by numerous admitted carriers to stop writing new homeowners business in California,” said Ben McKay, CEO and executive director of the Surplus Lines Association of California.

The largest premium market share of E&S personal property belongs to Florida at nearly 9% but personal property transactions decreased 7.6% in 2023. Overall E&S premiums in Florida grew 27.8% in 2023 to $15.4 billion.

“We continue to see the commercial

property market’s premiums exhibit a noteworthy surge in response to current market conditions,” said Mark Shealy, executive director of the Florida Surplus Lines Service Office. Commercial property premiums increased 41.7% to about $7 2 billion to now account for 46.5% of the market.

In another large surplus lines state, premiums grew 25.8% in Texas to about $14.6 billion — led by 45.9% growth in commercial property.

Janet Pane, executive director of the Excess Line Association of New York, said premium increases in 2023 were primarily driven by commercial liability and property, excess liability and umbrella, errors and omissions, and directors and officers. Overall E&S premiums grew 5.2% to about $8.1 billion in New York, and transactions were up 8.6%.

Figures

444

The number of self-driving vehicles recalled by Alphabet’s Waymo unit following two minor collisions in quick succession in Arizona because of a software error that could result in them inaccurately predicting the movement of a towed vehicle.

$10 Million

The Department of State announced a reward of up to $10 million for anyone who can provide information leading to the identification or location of a leader of the ALPHV/Blackcat ransomware group, as well up to a $5 million reward for information leading to an arrest or conviction of anyone participating in a ransomware attack using the variant. There have been more than 1,000 victims globally of ALPHV/Blackcat ransomware, the department said.

414

The number of claims SAIF, Oregon’s not-for-profit workers’ compensation company, received in January related to slips, trips and falls from snow or ice. SAIF said more Oregon workers were injured that month from slips, trips and falls due to snow or ice than during any other storm since January 2017.

$3 Billion

The amount in restitution now being sought in a lawsuit filed by New York Attorney General Letitia James against Digital Currency Group and other cryptocurrency defendants. In October 2023, James sued DCG, its Genesis Global Capital unit, and Gemini Trust, the exchange run by twin brothers Cameron and Tyler Winklevoss. James initially claimed they caused more than $1 billion of losses by misleading investors about the Gemini Earn program, which let customers lend crypto assets to Genesis in exchange for a high rate of return.

Declarations

Identified Threat Actors

“Independent of whether there’s any violation of the law or any violation of terms of service, we just don’t want those actors that we’ve identified — that we track and know are threat actors of various kinds — we don’t want them to have access to this technology.”

— Microsoft Vice President for Customer Security Tom Burt told Reuters in an interview ahead of the release of a report showing state-backed hackers from Russia, China and Iran have been using tools from Microsoft-backed OpenAI to hone their skills and trick their targets.

Can’t Have it Both Ways

“If the employer wishes to challenge causation, that defense renders moot a question of authorization of treatment. Conversely, if the employer wishes to contest authorization, this necessarily admits causation exists between accident and injury.”

— States a ruling by the Virginia Workers’ Compensation Commission (VWCC) finding that an employer cannot assert that an injury is unrelated to a workplace accident while also arguing that the medical care for that injury is unauthorized. The VWCC said the employer must choose one or the other position, in a ruling blocking an employer and its insurer in their attempt to deny workers’ comp coverage for psychological treatments sought by a physically injured employee.

Permian Basin Crash Rate

“The Permian Basin is sparsely populated but heavily traveled. … We’ve got a rural environment with fairly high-speed traffic. We see the kinds of crashes that we see in urban areas.”

— Said Robert Wunderlich, director of the Texas A&M Transportation Institute and lead author of a report showing severe and fatal vehicle crashes occur at a higher rate in the Permian Basin than the rest of Texas. Commissioned by the Permian Road Safety Coalition, the report focuses on 20 counties in West Texas and two in New Mexico that constitute the Permian Basin. Commercial motor vehicles accounted for almost half of the fatal crashes in the region.

Government Accountability

“If it’s not clear to police yet, let’s say it again: Law enforcement cannot target, arrest, and attack journalists who are just doing their jobs, holding government accountable.”

— American Civil Liberties Union of Minnesota Legal Director Teresa Nelson, said in a statement after the city of Minneapolis agreed to pay $950,000 to settle a lawsuit alleging that journalists were subjected to police harassment and even hurt while covering protests over the police killing of George Floyd in 2020.

Mickey, Minnie, Union

“This isn’t one of those situations where we’re out making the employer the bad guy. … It is uniquely important Disney remains a place that people view as magical, and I think that (unionizing) will improve that across the board.”

— Kate Shindle, president of Actors’ Equity Association, said of Disneyland performers’ quest to unionize. While most of the more than 35,000 workers at the Disneyland Resort in Southern California have labor unions, about 1,700 performers in parades, character actors and support staff do not. AEA would represent the performers if unionization is successful.

Radio Tower Theft

“The slogan of our station is the sound of Walker County, and right now with our station down, the community has lost its sound and lost its voice. … This hurts, and it hurts our community.”

— Brett Elmore, general manager of radio station WJLX in Jasper, Alabama, told The Associated Press after the station’s 200-foot (61-meter) radio tower was stolen, along with broadcasting equipment stored nearby. The station had no insurance on the tower or the equipment; Elmore estimated it would take $60,000 to $100,000 to rebuild. The AM station has been on the air since the mid-1950s.

Closer Look: Auto

Why Totaled Auto Losses Are Hard to Pin Down

By Denise Johnson

The auto insurance market is tough and varied. Totaled auto losses are up, down or relatively stable, depending on the data source.

Ever since the personal auto segment recorded a combined ratio of 112 in 2022 — a figure not seen since the mid-1970s — the property/casualty line has endured increased scrutiny. In response, auto insurers tightened their risk appetites and raised rates to compensate for costlier parts and longer repair times, the result of tech-laden vehicles.

With the goal of reducing loss costs and expenses, one area of focus within

the claims process is total loss frequency, a figure that represents vehicles considered unrepairable. Because artificial intelligence-backed tools are increasingly being used by insurers, particularly photo-based AI applications to estimate damage to autos that result from accidents, it’s natural to wonder whether the use of AI tools is contributing to an increase in the number of totaled vehicles.

While it may be easy to point to a rise in total loss evaluations on the expanding use of AI-backed photo damage estimating tools by auto insurers, there are many other factors at play, experts contacted for this article say. A

major factor making it difficult to pin down total loss figures has to do with vehicle values.

There is no doubt that AI-powered visual assessment has increased efficiency in the auto damage estimating process. It is a tool that can assess value based on make and model, the damage sustained, and the cost for parts and labor to repair the vehicle, offering insurers the ability to appraise many more vehicles in one day than ever before.

Within the North American market, James Spears, head of Automotive-Artificial Intelligence for Tractable.AI, said the primary use case is not writing an appraisal. Instead, it is integrating AI within the

estimating process, typically for auto insurers with direct repair programs. Estimates and photos are submitted by auto body shops to the insurer for review. Within seconds, AI assesses the damage and reviews the estimates, expediting the appraisal process.

“So, what you now have is a very integrated process where a shop is able to write an appraisal, they submit it, AI looks at it, approves it, gets back to them within seconds and says, ‘Let’s start the job,’” Spears explained. Through the vehicle identification number and the photos of the damage provided to it, AI can evaluate the cost to repair versus replace a car.

The process reduces cycle time significantly, reduces or eliminates costs associated with a policyholder or claimant renting a car, reduces or eliminates towing and storage fees, and leads to greater customer satisfaction, said both Spears and Karin Bogenschneider, assistant vice president, Claims Division, for Wisconsin-based West Bend Mutual Insurance. Spears said in his prior job running USAA’s Auto Physical Damage Team, the number one decision was how to accurately assess whether a vehicle was repairable or not.

Kyle Krumlauf, director of industry analytics for CCC Intelligent Solutions, reported that total losses had been elevated during most of the pandemic and are trending up again. Although the use of AI and photo estimating by auto insurers has increased significantly, too, Krumlauf does not see any correlation between an increase in photo-based AI estimating and total losses.

“Our data suggests total loss increases are a result of several factors, including a decrease in used vehicle prices and an aging vehicle population,” he said.

CCC data indicated the percentage of estimates initiated by photos through 2022 was nearly 30% versus pre-pandemic (fourth-quarter 2019), when photo-initiated estimates were about 16%.

According to Krumlauf, adoption of photo-based AI estimating accelerated because of shelter-in-place measures during the pandemic.

“The industry began embracing more digital technologies in order to continue to serve policyholders and drivers,” he added. “Growth and adoption

On the rise? Maybe not. Mitchell found that the frequency of vehicles being declared a total loss has fallen in the U.S. — to 18.0% in third-quarter 2023 from 20.7% in fourth-quarter 2022.

Source: Mitchell International Inc.

of AI for estimating and other key decisions has continued based on CCC data.”

CCC data also showed that 82% of consumers that used a digital experience to manage their claims would do so again. Experts agree consumers want to be part of the claims process to gain a better understanding of how repair or replacement decisions are made.

Bogenschneider said West Bend Mutual Insurance has an estimated 75% acceptance rate in terms of those willing to move forward using the AI-tool.

According to Spears, vehicles are on the road longer, something that can be attributed to longer loan periods. Instead of 36-month terms, it is not uncommon to see vehicles with loan terms of 72-84 months. This equates to more older vehicles remaining in the insurance pool because they must have collision and comprehensive coverage

during the loan’s life.

“There’s a much higher correlation — if you’re looking for something — of length of loan to being in the insurance pool that leads to the fact that you have an insured total loss,” Spears said.

Olivier Baudoux, senior vice president of Global Product Strategy and AI for Mitchell’s Auto Physical Damage division, seconded the notion that AI photo estimating is not driving more total losses. Instead, he cited soaring new vehicles prices as a factor.

“The decision of repairing a vehicle or deciding to total and replace a vehicle has changed really significantly with the price of … new vehicles going up,” said Baudoux.

In fact, reviewing the frequency of vehicles being declared a total loss from first-quarter 2019 through third-quarter 2023, along with the average market value of those vehicles, Mitchell found

that total loss frequency has decreased in the U.S. —to 18.0% in third-quarter 2023 from 20.7% in fourth-quarter 2022. (Editor’s Note: Looking at a different time frame, LexisNexis Risk Solutions pointed to an uptick in total losses in its 2023 U.S. Auto Insurance Trends Report. The firm said its most recent internal data indicated that 27% of collision claims for the first nine months of 2022 were total losses, up from 24% for full-year 2021, attributing the rise to increased auto accident severity.)

Baudoux said AI essentially mimics what a good appraiser would do.

Bogenschneider agreed that factors other than AI use are at play in total loss determinations.

“Total losses are up because of vehicle complexity,” she said. “It’s more expensive to fix a car. Parts are more expensive than ever before. They have continued on page 14

Closer Look: Auto

continued from page 13

thousands upon thousands of microchips inside of them, and all of that costs more money. And so that’s why total losses are up.”

Deeming a vehicle a total loss is not necessarily beneficial to the insurer. “From a carrier perspective, it’s so much easier, so much better for the consumer to fix your car, have a great experience doing it and retain the customer,” Spears said.

“The moment that a vehicle [is deemed] a total loss, two things happen. The consumer goes shopping for a new car. And at the same time, they generally now shop for a new insurance carrier.”

The Future of AI and Vehicle Damage Estimating

Though most insurers choose to have adjusters or appraisers review AI-generated

photo estimates, Baudoux said that each carrier can assess how they want to proceed — straight-through processing and potentially settling on payment, or whether they want to put some more work toward editing and reviewing an estimate.

West Bend Mutual Insurance reviews AI photo estimates 100% of the time, Bogenschneider said.

The Wisconsin-based insurer partnered with CCC Intelligence to utilize its AI photo damage estimating tool in early 2020, prior to the pandemic, offering it as an option to policyholders and claimants.

The value of the tool became clear to the company after a significant derecho impacted several policyholders. High winds caused trees and power lines to go down, damaging vehicles. The extreme weather event highlighted the danger to

policyholders and claims staff, as well as the usefulness of the AI-powered tool.

It is the work done behind the scenes that makes AI-photo estimating invaluable, according to Bogenschneider.

Heat-mapping identifies damage through photos submitted by a policyholder or claimant. The photos typically include the four corners of a vehicle and the vehicle identification number.

“Behind the scenes it’s creating a build sheet — what the estimate is based on,” said Bogenschneider.

“Early on, [the estimate] would go to an appraiser to finish and then to a claims adjuster for review and payment. Now the AI tool, based off what it sees, knows to prompt the customer to take more photos,” she explained.

Through the photos submitted, the AI tool might

determine the damage is severe enough to warrant a total loss designation.

“What AI provides is an extra accuracy in trying to create more consistency in how estimates are being written, removing a little bit of the human judgment and then creating an estimate in a state that would be consistent with how the machine has been trained,” Baudoux explained.

He added that the machine’s training generally comes “from best practices of how the industry has written millions of estimates over the last few years.”

Mitchell has been working on improving AI for the past six years to automate the creation of an estimate, called straightthrough processing, so data can pre-populate the entirety of the estimate to the point where there will not be a need for human intervention.

Baudoux said that each carrier can assess how they want to proceed toward straight-through processing, indicating it is the future.

He expects the use of AI photo estimating in auto physical damage claims to increase in the future, with auto insurers allowing AI to make decisions as they reduce oversight.

“What’s most important is to appreciate the fact that the volume of estimates that will be a candidate for straightthrough processing where there’s no human intervention whatsoever will dramatically go up over the next few years,” he said.

Johnson is a freelance journalist based in Arizona. She is also the former editor of Claims Journal. Email: denisehjohnson@yahoo. com.

Total loss trend data from CCC Intelligent Solutions’ Crash Course report highlights total losses frequency fluctuations between 15% and 21% over the past seven years. In recent periods, CCC’s report shows frequencies averaging about 19% in 2023, up from an average of roughly 18% in 2022 but lower than the 20%-21% frequencies recorded during the pandemic in 2020.

Source: Total loss trend data from CCC Intelligent Solutions’ Crash Course report

Spotlight: High-Net-Worth

High-Net-Worth Market Opportunities

By Jahna Jacobson

The definition of a high-net-worth client varies, but it’s not unheard of for clients to pay millions of dollars in premiums to insure higher values homes worldwide. Agents who want to target the high-net-world market must speak the language, said Diane Delaney, executive director of the Private Risk Management Association (PMRA), on a recent InsuranceJournal.tv On Point podcast. Delaney joined On Point’s host, Peter van Aartrijk, principal at Aartrijk, to discuss the mindset and tactics needed to sell insurance to high-net-worth clientele.

No matter what’s happening in the economy, the high-networth market continues to grow.

“Maybe not as rapidly as it was before, but the opportunity is there, and it really varies based on where you’re located in the country as well,” she said.

Many high-value properties are along coastal regions or in wildfire-prone areas so insuring these properties needs expert knowledge. In high-catastrophe areas where high-value homes often are located, property insurance is harder to find, and rates are climbing. “And yes, while the high-net-worth client does have the funds to pay for their insurance, nobody wants to pay 50% more than what they were paying the previous year just because that’s what it is.”

Independent agents and brokers are spending more time with clients, focusing on steps clients can take to safe-

guard homes in high-risk areas so they can prevent damage and maintain their insurance, Delaney said. There is talk about self-insurance, taking on higher deductibles and layering coverage, she added.

“I think we’re really fortunate in the high-net-worth space because when you are talking about the mainstream carrier, it does become about price because it is transactional,” she added. “The products don’t differ. But when you’re playing in the high-net-worth, there’s a lot more flexibility in really personalizing the insurance program to that specific individual.” The emphasis is on protecting the asset base clients worked hard to build and the legacy they want to pass on, and asking questions about how they envision rebuilding their life after a catastrophe or accident, she said.

High-net-worth clients don’t want a lot of jargon, she said. “But using phrases such as, ‘My job as your insurance advisor is to make sure we’re protecting what’s most important for you and your family to maintain your lifestyle,’” is important because that’s really what this is, she said.

One issue right now is agents are in a more reactive phase where they’re regularly trying to get ahead with the client, Delaney said. “Where every day they’re getting phone calls, ‘My rate went up! My rate went up!’

“And I have to say, I speak to brokers every single day and ... at least 10 of them a day are telling me, ‘Diane, this is exhausting. I’m just, I’ve never had conversations like this before,’” Delaney said. “So,

we’re finding we have to start working with our brokers on training them on how to have these conversations because they don’t want to say to the client … ‘You’re lucky you got a 30% increase because that means you have insurance where most of our clients do not.’”

Building a book of business of high-net-worth clientele takes time and careful attention, Delaney said. To help build a pipeline of new business in this space, specialist agents need to go where the high-net-worth clients mingle, she added. “They can be going to car shows and different events to meet these individuals, but it may take a year before they turn a prospect into a full-blown client. And having patience to do that is difficult.”

But high-net-worth clients are great prospects for agents willing to build and nurture their expertise in this space. “We have a big opportunity now going into 2024 to really think about all the different types of value-based sales training that we can give to the brokers,” she said. “It’s needed, and it doesn’t come naturally to a lot.”

Delaney said that an organization like PRMA can

become a valuable resource and offer support to agents wanting to specialize in highnet-worth. While members may be competitors, they are all playing in the same field. “There are plenty of clients out there, but we need one another to be successful,” she added.

“Not every individual broker is going to be the answer to everything,” she said. “But if they can go to PRMA, collaborate in (online) member forums, and throw out a question to the membership of where they’re struggling with placing business,” that can be a great help.

Launched in 2014, PRMA is a nonprofit membership organization that offers a collaborative networking space.

Business Moves

East

Webster Bank, Ametros Financial Corp.

Connecticut-based Webster Bank completed its acquisition of Ametros Financial Corp., a firm that administers medical claims settlements.

Ametros provides post-settlement medical administration for those receiving funds from workers’ compensation and liability settlements though a technology platform, CareGuard. CareGuard provides settlement advisory support, discounts on medical expenses, and compliance with government reporting.

The business will continue to operate under the Ametros and CareGuard brands. Ametros is headquartered in Wilmington, Massachusetts.

Headquartered in Stamford, Webster Bank serves the Northeast from New York to Massachusetts. Its HSA Bank division provides employee benefits products.

Arthur J. Gallagher, Ericson Insurance Advisors

Global insurance broker Arthur J. Gallagher & Co. acquired Washington Depot, Connecticut-based Ericson Insurance Advisors.

Ericson Insurance Advisors is a personal lines-focused insurance broker serving high-net-worth clients nationwide.

Spencer Houldin, Peter Houldin and their team will remain in their current locations. Spencer Houldin is a past chairman of the Independent Insurance Agents & Brokers of America (the Big “I”).

Ericson also has offices in Boston, New

York and West Palm Beach.

Arthur J. Gallagher & Co. is headquartered in Rolling Meadows, Illinois. Gallagher provides services in 130 countries.

Midwest

Risk Strategies, Ralph C. Wilson Agency Risk Strategies, a national specialty insurance brokerage and risk management firm, acquired Ralph C. Wilson Agency, a full-service risk management and employee benefits consulting firm and insurance agency headquartered in Southfield, Michigan.

Founded in 1923 and one of the largest independent agencies in Michigan, Ralph C. Wilson Agency is licensed to operate in over 40 states nationally and offers a wide range of coverage expertise, from general and professional liability to property, cyber, and workers’ compensation insurance. Its industry expertise ranges from auto dealers and manufacturers to marinas, nonprofits and veterinarians.

Founded as a family business, the agency was operated for many decades by Ralph C. Wilson Jr., perhaps best known nationally as the owner of the National Football League’s Buffalo Bills franchise. The Ralph C. Wilson Jr. Foundation is an enduring legacy of Wilson and his commitment to supporting the quality of life of the people of Southeast Michigan and Western New York.

The acquisition of Ralph C. Wilson Agency is Risk Strategies’ first entry into Michigan and reflects deepening

engagement in the Midwest. In 2023, Risk Strategies acquired Illinois-based IZALE Financial Group, Ohio-based First Insurance Group, and the insurance business of Johnson Financial Group in Wisconsin.

South Central

Bridge Specialty Insurance Brokerage

Bridge Specialty Insurance Brokerage (BSIB), which provides access to an extensive range of wholesale and specialty insurance solutions, opened a new office in Dallas, Texas office. The office will provide additional capabilities for the retail partners that currently work with Bridge Specialty Group (BSG) businesses in Texas: South & Western, Hull & Co., Texas Security General, Combined Group Insurance Services and Graham-Rogers Insurance.

The BSIB – Dallas office features a team of experienced insurance professionals who are familiar with the South Central and Midwest markets, providing solutions that address the specific needs of the region.

Jim Bishop, who is currently the office leader for Hull & Co. Texas, a Bridge Specialty Group agency, will lead the new BSIB – Dallas office. Bishop brings over 30 years of experience in the Texas marketplace with extensive experience in sales and underwriting with a specific focus on growing and developing wholesale operations.

Southeast

Tangram Insurance Services, Preferred Reinsurance Intermediaries

Tangram Insurance Services, an independent managing general agency based in California, acquired Preferred Reinsurance Intermediaries in Columbia, South Carolina, marking Tangram’s entry into the reinsurance brokerage market.

Preferred Re, founded in 1983, works with insurers and reinsurers on traditional reinsurance placements, specialty insurance program development for MGAs, and sourcing capacity for alternative risk firms. It has offices in Florida, New York and New

Jersey. President Bob Sanders will lead reinsurance operations for Tangram.

PointeNorth, Valdosta Insurance Services, Southern Insurance Advisors

Atlanta-based PointeNorth Insurance Group acquired Valdosta Insurance Services and Southern Insurance Advisors in Georgia.

Valdosta Insurance Services provides property/casualty insurance, employee benefits and life insurance products.

Julian “Trey” Sherwood is president. The principals at Valdosta will continue to lead the company.

Southern Insurance Advisors, based in Milton, Georgia, provide property/casualty coverage to clients. The company is led by Kevin DiPetrillo. The firm will now operate under the PointeNorth brand.

Twain Capital, Twain Insurance Agency

Twain Capital, an investment firm formed in 2021, has launched Twain Insurance Agency, based in Ridgeland, Mississippi.

Principals John Lawrence, Tom Davis and Griffin Willson were previously with Commercial Insurance Associates LLC brokerage.

The agency already has clients and carrier relationships around the country, Twain said. It will utilize technology, as well as a heavy emphasis on personal service with clients. The agency will focus on commercial property/casualty coverage and surety.

Arthur J. Gallagher, John Galt Insurance Agency

Arthur J. Gallagher & Co. has acquired Fort Lauderdale-based John Galt Insurance Agency, expanding Gallagher’s presence in the condominium and association market in Florida.

John Galt includes a commercial insurance agency and a personal lines property/ casualty agency. Co-CEO Jim Rudd and the Galt team will remain at the firm under the direction of Bumpy Triche, head of Gallagher’s Southeast retail brokerage operations.

Illinois-headquartered Gallagher provides brokerage, risk management and

consulting services in 130 countries.

West

Inszone, J.B. Martin Insurance Agencies

Inszone Insurance Services acquired J.B. Martin Insurance Agencies in Albuquerque, New Mexico.

This acquisition bolsters Inszone’s

presence in the Southwest.

Since its establishment in 1981, John Bradley Martin and his team have built J.B. Martin Insurance Agencies to provide a spectrum of insurance lines.

Sacramento, California-based Inszone is an insurance brokerage firm that provides property/casualty insurance and employee benefits services.

People

National

Xceedance, headquartered in Boston, appointed Peter Flynn as senior vice president, personal lines, Americas.

Flynn brings 25 years of insurance experience, having spent the first 15 years of his career various roles with Chubb and, more recently, as senior vice president of broker development at PURE.

national growth leader.

Donegal Insurance Group, headquartered in Marietta, Pennsylvania, named two new regional vice presidents.

Ross is director, risk strategy and financing, in the Harvard University office of risk management and audit services.

businesses in the U.S.

Ann Chai

Zurich North America appointed Ann Chai as chief risk officer. She is based in Zurich North America’s Schaumburg, Illinois, headquarters.

Chai, who previously served as head of finance for U.S. Middle Market at Zurich, succeeds Colleen Zitt, who returned to Zurich North America’s Finance team in the new role of vice president of end-to-end process controls.

Chai previously served as vice president and actuary for Zurich North America’s Finance and Actuarial team. She will be a member of Zurich’s global leadership team, the risk management executive committee and Zurich North America’s executive committee.

World Insurance Associates LLC, headquartered in Iselin, New Jersey, named John Peterson chief growth officer.

Peterson comes to World with over 30 years of leadership experience, including several leadership roles at Aon Risk Services. He is based in Chicago.

Frank Costa, World’s current chief growth officer, will move to the newly created role of

Wes Konchar will lead Donegal’s Marietta region, comprised of Pennsylvania, Ohio, Indiana, Maine and New Hampshire. A 15-year Donegal veteran, Konchar most recently served as Donegal’s regional sales manager for Pennsylvania.

Konchar takes the reigns as regional vice president of the Marietta Region from Bill Anderson, who will transition to senior vice president of marketing operations.

Shealin Mulcahy will lead Donegal’s Atlantic south region, which includes Maryland, Delaware, Virginia, the Carolinas, Tennessee and Georgia. Mulcahy joined Donegal in 2013, most recently serving as regional sales manager.

Before joining Harvard in 2022, Ross was director of risk services at Northeastern University, and previously held various positions at Aon Risk Solutions, InterContinental Risk Management Consulting, Arthur J. Gallagher & Co. and Albert Risk Management Consultants.

In addition, the board elected Edward J. Donahue Jr. (Aflac), as first vice president, Ann F. Lamson (Quincy Mutual Group), as second vice president, Nancy D. Adams (Mintz), as counsel, Meredith K. Mangan, CPCU (AIG), as immediate past president and Michael A. Pezza Jr. as secretary.

Robert Jones has joined Coalition as head of global claims.

Jones previously spent 32 years at AIG where he most recently served as the executive vice president of financial lines, specialty claims.

Jones will lead the development of the global claims offering, in partnership with senior leaders across Coalition’s insurance organization.

Krupczak has been with Liberty Mutual for 12 years. Previously, he held the positions of underwriting manager and senior risk engineer, U.S. Energy.

Everest Insurance, the insurance division of Everest Group, has established a dedicated private equity practice.

Dan Reinert has been appointed private equity vertical leader. Most recently, Reinert oversaw private equity within Everest Specialty Underwriters.

Everest named Matt Murray head of private equity distribution. Murray joined Everest in 2016 as northeast region distribution leader for North America.

Carlton Maner retired as CEO of AXIS Capital’s U.S. division and global property practice leader.

He has resigned from the WSIA board of directors upon his retirement, per its bylaws. Maner served on the board from 2010-2016 and 2021-2023. He will continue as chair of the WSIA Diversity Foundation in his retirement.

Mulcahy succeeds Noland Deas, who has been named Donegal’s senior vice president of field operations and national accounts.

Jones also will manage Coalition’s vendor network of external service providers and help the internal underwriting teams develop risk-selection strategy.

WSIA President Dave Obenauer appointed current WSIA Board Director Phillip McCrorie of RSUI to the secretary position and Janet Jordan-Foster of AXIS Capital to the director position.

East

The board of trustees of The Insurance Library Association of Boston elected Sonya M. Ross president and board chair.

Liberty Mutual Insurance appointed John Krupczak head of U.S. Energy (Property), part of the Liberty Specialty Markets (LSM) business unit.

Krupczak will oversee all property solutions across mid-size and large energy

Michael Lezynski joined Alliant Insurance Services, headquartered in Irvine, California, as executive vice president within the company’s Alliant Americas division.

Based in Red Bank, New

Wes Konchar

Shealin Mulcahy

Sonya Ross

Jersey, Lezynski is responsible for growth and expansion in the New Jersey and Southeastern Pennsylvania markets.

Lezynski joins Alliant with more than 30 years of industry experience. Before joining Alliant, Lezynski was president within the New Jersey office of USI Insurance Services and previously served as a vice president at Aon.

XPT Specialty, headquartered in New York, New York, hired a production and underwriting team to serve Middle Atlantic and Northeast clients.

The new team is led by Gregg Guerreiro, executive vice president and regional leader, and includes Kayte Haney, assistant vice president (AVP) and underwriting manager; Michael Haney, underwriter; Amanda Wagner, underwriter; Alex Walbrandt, AVP/underwriter and Jon Gindhart, underwriter.

Integris Group, headquartered in Glastonbury, Connecticut, promoted Garrett P. Cronin to chief underwriting officer.

Cronin has over 25 years of experience in the insurance industry. He joined Integris in 2018 as director of underwriting and was promoted to vice president of underwriting and member services in 2020.

Midwest

Valley Insurance Agency Alliance (VIAA), headquartered in St. Louis, Missouri,

promoted Bill Kaatman to director of growth.

Kaatman brings 17 years of experience in the insurance industry, previously serving as the director of enterprise development and digital agency coach at VIAA. Kaatman joined VIAA in 2021.

Iowa-based benefits consultant John Krieger joined Alliant Insurance Services as vice president within its employee benefits group.

Krieger joins Alliant with more than 20 years of experience. Before joining Alliant, Krieger served as senior regional marketing manager for Lincoln Financial Group and senior group sales representative with Sun Life Financial.

operations and business development.

Leventhal has more than 25 years of experience in the insurance industry. Before joining Wallace & Turner, she was a commercial lines placement manager with Kraft Lake Insurance Agency.

Jewelers Mutual Group, headquartered in Neenah, Wisconsin, hired two new leadership team members.

Nick Tenekedes is now senior vice president of digital solutions. Tenekedes joins Jewelers Mutual with over 15 years of experience. Most recently, he was the vice president, marketplace at Getaround.

business.

Gray, also a CPA, joined the company in 2017. He previously was a partner with Thomas Howell Ferguson, an accounting firm.

West

Alliant Insurance Services, headquartered in Irvine, California, appointed Greg Zimmer chief executive officer.

Zimmer joined Alliant in 1998 as chief financial officer and was named president in 2007. He assumes the role from Alliant leader Tom Corbett, who remains the company’s executive chairman. Corbett, who joined Alliant in 1977, served as Alliant’s CEO for over 30 years.

Atain Insurance Companies, headquartered in Farmington Hills, Michigan, hired Tom Dassow as vice president and head of primary liability, leading Atain’s newly formed general liability brokerage unit. He is based in Waukesha, Wisconsin.

Most recently, Dassow led CM Vantage Specialty Insurance Company’s casualty division. Previously, he held underwriting leadership positions with American Family Brokerage and Global Indemnity.

Wallace & Turner Inc., headquartered in Springfield, Ohio, named Mary Jo Leventhal director of

Howard Stone joined Jewelers as vice president, global risk and analytics. He has over 30 years of progressive loss prevention experience. Most recently, Stone was director, loss prevention and operations at Amazon in Seattle.

Southeast

California-based Alliant Insurance Services named Chris Meadows a senior vice president for its Americas Division, based in Nashville. He has 37 years of experience in risk management and recently was vice president for a national brokerage.

St. Petersburg, Florida-based American Coastal Insurance Corp. named Svetlana Castle as its new chief financial officer and promoted Andy Gray to chief compliance and risk officer.

Castle, who holds a law degree and is a certified public accountant, has 16 years of experience in the insurance

Alliant named Ralph Hurst president. He previously oversaw the company’s retail brokerage operations.

Peter Arkley was named president, national brokerage, overseeing retail property/ casualty and employee benefits. Sean McConlogue will lead Alliant underwriting and consumer solutions as president.

The new roles take effect April 1.

SES Risk Solutions, headquartered in Irvine, California, named Shaun Shenouda president. Shenouda takes over the role from Bill Mecklenburg, who has assumed leadership of Alliant Underwriting Solutions as senior managing director.

Shenouda previously served as chief operating officer of SES.

Garrett Cronin

Bill Kaatman

Tom Dassow

Greg Zimmer

Top 4 Alternatives to Purchasing Homeowners Insurance

By Patrick Wraight

Homeowners insurance companies are having a rough year. What’s worse is that they seem to be taking it out on us, their customers. According to an article on Policygenius, the cost of homeowners insurance went up an average of 21% between May 2022 and May 2023. On top of that, many insurance companies have stopped writing new homeowners policies in states like Florida, California, Louisiana and others.

Insurance agents and insurance consumers are having a harder time finding affordable insurance coverage in many parts of the country. Some are electing to obtain coverage through the excess and surplus (E&S) market, which in many cases would be a perfectly acceptable alternative to the standard market, especially as it shrinks in many areas.

But what if you don’t want to pay the high insurance premiums that your insurance company is billing you for? What if you aren’t confident in the E&S market? What if there are no E&S companies writing homeowners’ insurance in your area?

We have compiled our top four alternatives to buying homeowners insurance. Before you read on, please note most of these options will not satisfy your mortgage company. If you have a mortgage on your home and you are considering any of these options, please consult

with your lender to determine whether they comply with the spirit of the agreement that you have with them.

Self-Insure

Insurance companies fund future losses by saving a portion of the premiums paid and calling it policyholders’ surplus. The purpose of that surplus is to pay future claims that the insurance company doesn’t know about yet.

One way that insurance regulators know that an insurance company isn’t going to become insolvent is by looking at the number of policies they are writing for each kind of insurance and determining how much money they should need access to so that they can pay the claims that are likely to come.

You have just one home, so this should be really easy for you to do. Right? All you have to do is look at the latest bill from your homeowners insurance company. Because you have already determined that is way too much to pay, you should probably decide what a fair premium should be every month. Then you take that amount and deposit it into a savings account for any future losses that you might have.

According to our actuaries, if it would cost $250,000 to rebuild your home as it is today, and you decide that you can pay yourself $1,000 every month into your self-insurance savings account, it

will only take you 250 months (10 years and 10 months) to save up enough money to self-insure your home in today’s dollars.

Inflation may or may not change that calculation. You could also save yourself 10 months by accepting a $10,000 deductible.

Additional time may be necessary if you want to have money available for your personal property, liability coverage, and additional living expenses.

GoFundMe

Maybe that plan doesn’t work for you. I mean, what are the odds that you’ll be able to save $1,000 every month and that you won’t have to pay out any claims on your homeowners self-insurance fund for a decade?

We considered that saving that much money for that long of a time might be difficult for many. The next alternative to homeowners insurance is to prepare your GoFundMe account in advance.

‘You’ll need to repair your house. Who better to call on than your friends and family?’

If you took the family out for a nice dinner at your favorite restaurant and came home to find your house was burning, and you didn’t have homeowners insurance, a common response is to rely on the largess of the community and in today’s economy, that means that you start a GoFundMe account.

Rather than wait for the fire to happen, you could save yourself, and your community, a lot of time by getting that account set up and ready in advance. Also, after you’ve had a fire is not the best time to decide how much money you need. After you have sifted through the rubble to try and find your children’s plaster footprints, the last thing you

want to think about is how much this is all going to cost to replace.

This way, after the loss happens, you can already have the great family pictures up, the pictures of the house before, the total amount of money that you’re asking the people around you to come up with because homeowners insurance is so expensive. Just make sure to account for the cut that GoFundMe will take so that you don’t end up needing more money later.

Friends and Family

Since your primary donors for your GoFundMe would likely start with friends and family, we mean something a little different. Let’s just say

that you came home from a dinner with the family, and the house wasn’t a total loss in the fire. It just made it so that you would have to do a lot of repairs. Rather than doing the whole GoFundMe thing, or having money saved up, you can rely on your friends and family.

You’ll need to repair your house. Who better to call on than your friends and family? You can call everyone you know and let them know that you’re hosting a house party every day when the weather is nice. There’ll be food and plenty to do.

You can have a house party to clear up the debris. Bring in a roll-off dumpster and start putting stuff in there. That way, you can go through everything and decide what can be cleaned and repaired, and what needs to be thrown out. You can have another house party to begin the reconstruction process. What fun it’ll be watching everyone who still takes your calls frame up walls, hang drywall, install wiring, and everything else that will need to be done.

While you’re throwing these great house parties, you’ll need a place to stay. This is another place where your friends and family can help you out. They can provide a spare bedroom or two for your family to use. They might balk at the dog, but no one said everyone had to sleep in the same house every night.

Sell Your House ... Don’t Buy a House

We listed this alternative to homeowners’ insurance as a last resort because no one wants to go through the hassle of selling a house and everyone

that doesn’t have one wants to buy a house. So, as a last resort, you could forego the need for homeowners insurance by simply selling your house. Because insurance is a personal contract, and because you don’t own the subject of the insurance, you’re good to go to cancel that policy for a nice return premium.

The problem that remains is that you still might want to consider a different type of homeowners policy, called a renters policy, or a contents-only policy. That kind of policy will cover your personal property if it’s damaged, pay for a place to stay if your apartment or the house you rent (maybe the person who buys your house will rent it to you) is damaged and unlivable.

OK, You Got Me …

All kidding aside, it’s true. Homeowners insurance is getting expensive and insurance consumers are wondering why and what they can do about it. The best way to help them through this process is to help them to recognize what’s at risk, help them to understand the current market conditions and how this all happened, and work with them to find coverage that they find more affordable, but still covers their risks.

In a time when families are feeling the pressure of inflation in every area of their life, they can often feel like they are buying insurance and getting no value from it. It’s our job to help people to understand the value that the right insurance policies provide.

Wraight is director of Insurance Journal’s Academy of Insurance. Email: pwraight@ijacademy.com.

My New Markets

Long Haul Trucking Auto Liability

Market Detail: Innovative Risk Insurance Services LLC has developed a mono-line commercial auto program for a broad range of customers who have both small and large transportation fleets. the commercial auto program can provide underwriting solutions on an admitted basis for high-risk classes of business, while maintaining a competitive product for standard risks. Program highlights: Up to $1,000,000 CSL; new ventures eligible; risk size ranges from single units to large fleets; variety of classes available; direct bill with monthly, quarterly, semi-annual and annual payment plans; admitted A-rated paper; no charge for federal or state filings; appetite guide; $255 maximum premium; $255 minimum premium; has pen; appointment required.

Available Limits: Not disclosed.

Carrier: Admitted and non-admitted; rated A++ by A.M. Best.

States: Available in 46 states. Not available in Alaska, Delaware, District of Columbia, Hawaii, Rhode Island.

Contact: Jarrod Huff; info@innovativerisks.com; 877-243-9951.

Fine Art Insurance and Collectibles

Market Detail: Distinguished Programs, a national insurance program manager providing specialized insurance programs to brokers and agents is offering a targeted program for insuring art and collectibles.

Highlights: Art dealer and gallery — liability and high-value inventory protection; Artist — secure creations and processes; Corporate collection — Asset security and business continuity; Exhibitions — full coverage for temporary or traveling shows; Museum — tailored plans for artifacts to operations; Private collection — custom policies for individual collectors. Maximize client satisfaction with specialized, comprehensive coverage. Insurance available for fine art, sports memorabilia, entertainment memorabilia, wine and spirits, antiques and antique furniture, stamps, comics books and manuscripts, coins, furs, glass or pottery. Has pen.

Available Limits: Not disclosed.

Carrier: Not disclosed.

States: Available in all states plus District

of Columbia.

Contact: Tara Hughes; submitFAC@ distinguished.com; 888-355-4626.

Non-Standard Auto

Market Detail: Smart Choice Express Markets offers its non-standard coverage for drivers in the highest risk category, classic car owners, or clients with a commercial fleet. Be sure your clients are properly covered for these categories: classic cars and antique automobiles; classic motorcycles; commercial auto fleets; historic military vehicles; non-standard auto insurance. Express Markets offers independent insurance agents access to broad portfolio of excess, surplus and specialty carriers. Agencies pay no fees to participate in Express Markets, and earn 100% of their commissions, paid directly from the carriers. The online sign-up process is easy, fast, and has no production requirements. You receive guaranteed access to direct appointments with carriers who will help you place the business your standard carriers won’t write. Has pen; appointment required.

Available Limits: Not disclosed.

Carrier: Not disclosed.

Islands (USVI).

States: Available in most states plus District of Columbia. Not available in Alaska, Delaware, Hawaii, North Dakota, Rhode Island, South Dakota, Wyoming.

Contact: Inside Sales Group; insidesales@ smartchoiceagents.com; 336-217-4680.

Marine Insurance Program

Market Detail: Casey Insurance Brokers is the U.S. filing agent for the Edward William / ION Insurance Marine Surplus Lines program. Casey Insurance Group/ Brokers is licensed in, and can file surplus, in 45 states including USVI. ION Insurance Company is a federally authorized United States surplus lines company. ION Surety Company S.A., ION Insurance Company Inc. (U.S.), and ION Specialty Ltd (UK). 2019 group balance sheet assets are U.S.$195 million. Pleasure/wet marine authorized in Alabama, Arizona, Florida, Georgia, Hawaii, Louisiana, New Jersey, New Mexico, Pennsylvania, South Carolina, Washington, and U.S. Virgin

Charter/ocean marine authorized in every state except California. ION commercial property insurance: Alabama, Florida, Georgia, Kentucky, South Carolina, USVI. Underwriting guidelines: World-wide navigation; liveaboard; liability only; any vessel, any ocean, any time; no survey for vessels up to $150,000; agreed value if survey and valuation provided. TransAtlantic/Panama Canal: single handed; charter fleets; commercial, charter, bareboat, FLEET polices; full Florida capacity to bind with wind. Hurricane guidelines: Haul vessel and secure; move out of path of storm; policy reimburses $5,000 for these costs. Charter guidelines: Every occupant must sign liability waiver; resume for all captains; captains must be named on declarations page for crew coverage. Appointment required.

Available Limits: Not disclosed.

Carrier: Edward William / ION Insurance Co.; non-admitted; rating pending by A.M. Best

States: Available in most states plus District of Columbia. Not available in Alaska and West Virginia.

Contact: Justin Ouimet; justin@caseyinsurancebrokers.com; 888-537-1412.

Special Report: Small Business

By Andrea Wells

There are reasons to be optimistic about the small business insurance market. New businesses are opening their doors every day. Small business start-ups are booming with record-breaking new business applications reported in 2023.

While the rising cost of insurance for small businesses is pushing entrepreneurs to retain more risk and reevaluate their insurance partners, the surplus lines market is helping to fill some gaps.

Small businesses themselves remain bullish on 2024, despite high inflation, high interest rates, worker shortages, and higher costs to insure their operations.

The high percentage of underinsured small enterprises also presents opportunities. In terms of policy counts, small business is still big business.

Small business insurance specialists share the overall optimism for the sector, although they are having to work harder and smarter to serve the sector and they face new challenges every day.

Today’s challenges require more attention from small

business insurance experts, says Yvette Prichard, president of small business,

Heffernan Insurance Brokers, located in Walnut Creek, California.

“We are definitely seeing a lot of hands-on (attention) needed for renewals,” she said. “Clients are angry, they’re frustrated. Some small business owners are not just merely facing higher premiums at renewal, but many are also facing non-renewals.”

According to Prichard, some standard lines carriers are non-renewing small business for property and auto. “So, we’re having to move clients from our standard carriers with enhanced endorsements to surplus lines carriers with maybe less robust coverage,” she added.

Since taking the lead over Heffernan’s growing small business division five years ago, Prichard has grown the division from just three dedicated employees to 57 employees. Today, the division represents about $10 million in revenue for the retail agency and broker. Some of that growth came through acquisition but most has been driven from organic growth, she said. “Probably 70% of our new business every year is through round-out and referral from existing clients from our middle market large account division and from producers in our large account division,” she said.

Property and auto in the small business sector have been hit hard during this hard market cycle, especially in California.

“Auto is really difficult right now,” she said. “We’ve seen many of our standard carriers pull out of monoline auto. A lot of them are not writing property anymore when it comes to apartments and condos, strip

malls and restaurants.”

The challenging times have led many carriers to lower commissions as well, she noted.

Also, rising insurance costs are causing some business owners to retain more risk when covering their assets.

“They’re increasing deductibles, they’re lowering property limits, they’re deleting excess policies, and they’re also not purchasing cyber and management liability or they’re getting rid of those coverages altogether,” she said.

She feels that every day brings a new challenge, such as carrier coverage restrictions.

“I almost don’t want to answer my phone when it’s from a carrier,” she said. “We’ve had some carriers pull out of California altogether for small business and then some just make it really tough to do business with them by putting in new guidelines.”

That might mean delivering receipts from 15 or 20 years ago to prove updates were made to a commercial building’s roof, plumbing, or HVAC system. “So, what they’re almost saying is, ‘Yeah, we’ll write it, but we don’t want it, so we’re going to make it really tough on you to try to do this,’” she said.

Valuations for real property and business property have risen as well. “The carriers, especially on a property policy, they’re all wanting increases on building coverage and clients are hesitant to do that because it’s obviously increasing their premiums,” she said. She is not alone in seeing that.

“Valuation is a big, big, big issue in the marketplace right now,” added Stephen Gennusa, vice president of P&C Underwriting – Binding,

at Jencap. “We are constantly having to talk with our agents about looking at the valuation and helping them work through it to make sure that everything matches up. The last thing we want to do is leave the insured exposed and not able to rebuild appropriately.”

The high cost of materials and labor, catastrophic weather, and social inflation have all led to the increased cost of insurance, Mark Woods, assistance vice president, CAT Risk & Underwriting Analytics for Small Commercial at Travelers, told Insurance Journal in an email. “These issues have also impacted insurance availability, coverages, and terms and conditions of policies.”

‘New ventures starting will always be there and there will always be a need for experts to explain those coverages to those insureds.’

Since business personal property isn’t seeing rising values in the same way, this becomes a target area, according to Prichard. “We’re finding that’s where clients are actually cutting coverage or really lowering (limits) to try to keep their premiums at a decent level,” she said.

Woods added that characteristics of the business, such as location, building maintenance, and type of operation are likely to determine which small businesses are most at risk in this type of market.

“Beyond these issues that have impacted customers broadly, it is also important

for small business owners and agents to work together to assess potential coverage gaps due to business’ own growth, evolving operations, and emerging risks,” he said.

Under Pressure

While there has been a boom in small business startups since 2020, optimism over their future is fading due to inflation and the rising cost of doing business.

The National Federation of Independent Business (NFIB) Small Business Optimism Index decreased two points in January to 89.9, marking the 25th consecutive month below the 50-year average of 98. The net percentage of owners who expect real sales to be higher declined 12 points from December to a net negative 16% (seasonally adjusted), a very negative shift in expectations, according to the NFIB.

The NFIB says that 20% of small business owners say that inflation is their single most important problem in operating their business today.

But these challenges are not dampening the American entrepreneurial spirit. In 2023, a record-breaking 5.5 million new business applications were filed, according to the US Census Bureau.

“Small business is the backbone of our country, the backbone of our business, and the past few years of the hard market have been tough,” said Bart Dugdale, associate managing director, Burns & Wilcox, based in the Ruston, Louisiana office. “Explaining to individuals how the hard market ultimately affects their pocketbook and all the factors that come into play, but then continued on page 26

Special Report: Small Business

continued from page 25

keeping them insured correctly can be a challenge.”

Small business owners are an essential part of the U.S. economy, with 56 million workers employed at firms with fewer than 50 employees, representing about 45% of all private-sector jobs, according to the U.S. Bureau of Labor and Statistics.

“We’re seeing a lot of new businesses starting,” said Heffernan’s Prichard. “We’re seeing people with positive attitudes becoming entrepreneurs and sole proprietors.”

But she sees small business owners closing shop, too.

“Unfortunately, with the way the market is going, a lot of those really small or sole proprietor type businesses are

closing their doors and going back to work for people due to the costs of insurance or just the cost of owning a business in general,” Prichard added. “We’ve also seen many people, especially our contractors that had one or two employees, now just taking on all the work themselves to save on costs.”

Even so, the small business market is bringing in new business opportunities. “There are people out there starting up businesses.” Consulting firms and the health care sector are two hot areas for small business right now, she said. “We’re seeing a lot of those still popping up every single day.”

Underinsured

Too many small businesses are already underinsured even

without today’s hard market conditions.

According to the 2023 Hiscox Underinsurance in Small Business Report, which surveyed more than 1,000 small firms, found that 75% of small businesses are underinsured. Also, some 70% do not understand what their business insurance covers, leaving them open to loss risks ranging from property damage to lawsuits, the survey found.

As insurance prices have gone up that gap in coverage has widened, according to Troy Santora, executive vice president, Amwins Access.

“Premiums are rising substantially in different pockets for different reasons, and there’s a breaking point,” Santora said. “At what point

can the insured continue to sustain that cost?” Insurance, payroll, cost of goods sold, have all gone up in recent years. “There’s a lot of pressure and I think at some point the insured says, ‘I want to stay in business, make money, take care of myself, my family, and the people who work for me.’”

And when an insured does not completely understand the value of what they are buying, insurance might be an area that they cut to stay in business, he added.

“We’re selling legal contracts and they’re difficult to understand,” added Mick Kroll, executive vice president, Amwins. “As an industry we could do better to help small businesses,” he said, because more often than not the small

News & Markets

WTW Upgrades Hawaiian Coral Reef Parametric Insurance Policy

WTW and The Nature Conservancy (TNC) announced the purchase of a new coral reef insurance policy that expands coverage around the main Hawaiian Islands and increases payouts after qualifying storms.

This replaces the first U.S. coral reef insurance policy purchased in 2022. Hawaii’s new parametric policy adds 314,976 square miles to the coverage area to capture more storm events, with a maximum payout of $2 million total over the year-long policy period and $1 million per storm. The minimum payout has doubled to $200,000 and is triggered when tropical storm winds of 50 knots or greater occur in the core of the coverage area.

TNC developed the new policy with WTW and selected an insurance company of the Munich Re Group from seven bids.

Hawaii’s reefs are considered essential to the state’s economic wellbeing and are the islands’ first line of defense during storms, reducing up to 97% of

wave energy. Coral reefs provide flood protection to people, property and jobs, valued at more than $836 million, and contribute more than $1.2 billion through reef-related tourism to the economy each

Falls in 7 Years

SAIF in Oregon, which reported receiving 400-plus claims after January’s winter weather, said more Oregon workers were injured from slips, trips, and falls due to snow or ice than

during any other storm since January 2017. SAIF, Oregon’s not-for-profit workers’ compensation company, received 414 claims in January related to slips, trips, and falls from snow or ice. The count

year, according to the parties involved. WTW is a global advisory, broking, and solutions company. The Nature Conservancy is a nonprofit environmental group.

included 151 in SAIF’s Northern region, which includes the Portland metropolitan area. It also includes 58 in SAIF’s valley region, including Salem. The c arrier also offered some advice on updating procedures during icy or snowy conditions:

• Allow staff to leave early or arrive late if conditions are expected to change.

• Create an inclement weather plan and ensure it outlines who will be responsible for clearing snow and ice from sidewalks, and pathways, and when those employees should safely arrive to begin those tasks if you open late.

• Use ice cleats If employees work outside—simple studded or spiked devices that attach to footwear—to help prevent slips.

• Use floor mats at building entryways by placing a wiper or scraper/wiper combo floor mat (a heavy-duty mat designed to wipe and scrape debris and moisture off shoes) at building entryways.

SAIF in Oregon Reports Ice Caused Most Workplace Slips, Trips,

News & Markets

Southern California Tops List of Wheel and Tire Claims for Second Straight Quarter

Los Angeles and Orange County are number one of the top 20 list for a second consecutive quarter for 2023 and stay at the top in theft claims handled by population.

Wheelnet, a provider for wheel and tire replacement for insurance theft and vandalism claims, reports its top market frequency for insurance-related wheel and tire claims through the fourth fiscal quarter of 2023:

• Los Angeles/Orange County

led the nation in wheel and tire claims for the second consecutive quarter

• Frequency of wheel and tire claims across all U.S. markets was up 6% YOY in 2023 and 11% since Q1 2023

• Average severity continues to climb with losses commonly exceeding $3,000

Overall, frequency across all markets combined has

been up 6% year-over-year and nearly 11% since March 2023. Average severity con-

Symphony Risk in California Launches Captive Program for Cannabis Industry

Symphony Grow is launching a bespoke captive insurance program for large and sophisticated cannabis businesses called “Symphony Grow Captive.”

The “Symphony Grow Captive” risk financing tool provides a breadth of benefits not commonly afforded to cannabis businesses due to the historical reluctance

of most admitted insurers to write coverage. This includes:

Policies can be customized to include or exclude non-negotiable or uninsurable losses in the commercial insurance market. Symphony Grow Captive also allows control of all aspects of claims management, including: settlement authority, legal expense

management and defense counsel panel selection.

Symphony Grow is the specialty business of Symphony Risk S olutions. Symphony Risk Solutions is an insurance, risk management and employee benefits consulting firm with offices in San Francisco, Dallas, Chicago, Los Angeles, New York, St. Louis and Seattle.

tinues to climb as well, with nearly a double-digit increase in loss costs per claim.

Construction Insurtech Shepherd in California Raises $13.5M in Series A Funding

San Francisco, Californiabased insurtech Shepherd announced it raised a $13.5 million Series A funding round led by Costanoa Ventures with participation from Intact Ventures, Era Ventures, Greenlight Re and Spark Capital.

The company says it will utilize the funds to expand its underwriting and software team, accelerate product development and scale its software offerings.

Shepherd is an insurance tech platform for commercial construction.

Shepherd is also rolling out a new software service, Shepherd Compliance, designed to streamline and automate vendor compliance reviews.

business owner is everything. “He’s the risk manager, he is the HR person, he’s the entrepreneur, he’s the service manager, he’s everything rolled into one.”

Business growth is welcome but it can also lead to gaps in coverage as the physical footprint of the business changes, according to Travelers’ Woods.

“As businesses grow, the size of inventory and equipment needed to operate the business can expand or change as well,” he said. There are also emerging risks that can affect new and established small businesses, he added.

Burns & Wilcox’s Dugdale says relationships are just as important in the small business space as they are in the larger business sector. Covering gaps goes back to the relationship a small business owner has with its retail agent, he said. “Being able to explain that we’re going to look out for their best interest as well as with our carriers” is important. “The rate is what the rate is, but maybe we can look at the risk from a form perspective and give them the coverage that they need.”

E&S Market

Surplus lines brokers are helping to fill the gaps in today’s small business world. More small business accounts have been pushed into the E&S space as a result.

“We’ve seen a lot of businesses enter surplus lines, especially in the property space, as buildings age and come over from standard markets as they start to raise their guidelines to try to improve their loss ratios,” said Amwins’ Kroll.

But in Santora’s view, what’s entering the surplus lines

market is just more of the same — older properties, risks with loss history, and, of course, new types of business.

“The three main reasons that we’re seeing business is new ventures, losses, and then just difficult risks,” said Matt Lynch, vice president, Central Binding Region with RPS. As the U.S. economy remains strong, there’s more opportunities for the surplus line sector to insure new ventures and startups in the small business space, he said.

“Small businesses are very conscious of their spend on insurance and because their profit levels are lower, because they’re smaller, they’re trying to use every dollar for the main coverages,” Lynch said. That means coverages such as cyber, employment practices liability, and even umbrella liability may not be as commonly purchased by smaller business, he added.

But from a policy count perspective, small business is still big business.

“Small business from a policy count standpoint makes up a big portion of the marketplace and continued focus and efforts on small business are needed,” Lynch said. “New ventures starting will always be there and there will always be a need for experts to explain those coverages to those insureds.”

Success in small business means streamlining and efficiency, these specialists say.

“It’s streamlined, and technology is key to operating small business efficiently,” Prichard said. “We’re constantly vetting new things when they come out, making sure we have the best technology or whatever is next out there, so we stay on top. It’s really about making the

Small Business Cyber Gap

Yvette Prichard says cyber insurance continues to be an area where small businesses have significant gaps in their insurance portfolios. “It is a big risk; any business that does anything on a computer needs cyber liability,” said Prichard, who is president of small business, at Heffernan Insurance Brokers in Walnut Creek, California.

According to Hiscox’s Cyber Readiness Report, which surveyed 5,000 cyber security professionals across the globe, including more than 500 small business professionals in the U.S., despite a 10% increase in median information technology budgets and a 24% increase in cybersecurity spending over the last 12 months, 59% of small businesses don’t use security awareness training.

Among the U.S. businesses surveyed, the reported median cost of cyberattacks has decreased from $10,000 in 2022 to $8,300 in 2023. However, the median number of attacks has risen from three in 2022 to four in 2023.

Hiscox reported that U.S. small businesses paid over $16,000 in ransom for each ransomware attack over the past 12 months due to cyberattacks. While over half (53%) of small businesses responding to the survey said they have either a standalone cyber insurance policy or coverage through another policy, preventative measures and training to avert attacks lag. Two out of five (43%) businesses surveyed don’t have network-based firewalls, and 41% surveyed do not use data backup recovery and restoration systems.

When it comes to cyber expertise, 63% of small businesses in the U.S. were considered “intermediates” when it comes to cyber prevention measures, and only 4% were considered cyber “experts.”

Prichard said it’s a good time for small businesses to consider purchasing cyber coverage. “Right now, the market is pretty soft for small business cyber liability,” she said. “We’re really trying to encourage small business clients to purchase it now because it is affordable.”

But with rising premiums in property, liability and auto, and higher costs in general to run a small business, owners are reluctant to buy, Prichard added. “They’re not even considering it because it’s just not something that they can afford right now.”

Cyber coverage is affordable, especially for small businesses, agrees Bart Dugdale, associate managing director, Burns & Wilcox, based in the Ruston, Louisiana, office. But right now, as small businesses are analyzing every dollar they spend, they aren’t ranking it high on their insurance spend, he said. “Which is not a problem, until it’s a problem.”

best customer experience for our clients.”

Workflows, efficiency, and procedures. “Everybody in our division does everything the same way, and that is what allows us to be successful,” she added.

Heffernan also uses the help of virtual assistants for a lot of

the day-to-day needs, but only for those needs that do not touch the clients, she adds.

“We want our clients to have a one-on-one account manager that services their account every single day,” she said. “It’s the processes and procedures that are what helps us be successful.”

•

•

•

never before.

•

•

•

•

•

•

•

A New Way Forward for 2024

The property insurance landscape has reached the toughest point ever seen by most insurance professionals. This hard market has especially hit the hospitality industry, making it extremely hard to find viable coverage options. As we begin 2024 the light at the end of the tunnel is still hidden from view. With factors such as unprecedented weather patterns, inflation, inadequate reinsurance, poor management, and negligent visitors, standard market and E&S carriers alike have been quick to exit the Hotel/Motel sector. This has agents frustrated and is forcing them to either turn away business or offer property options that are less than ideal from a coverage standpoint.

These challenges increase significantly with more challenging accounts. Carriers are often unwilling to allocate their precious capacity to hotel locations with ratings below 4 stars. Risk factors such as frame construction, exterior unit access, non-sprinklered locations, and buildings constructed pre-2000 often leave agents paralyzed. Should they submit this risk to a wholesaler? Look into shared and layered options? Take a chance with subpar coverage? Or maybe just pass altogether and leave this one to “the pros”?

“Everything happens in-house in a streamlined and unique way. Our underwriters are well trained and know what to look for.”

Is There a New Way Forward?

As a solution-focused organization, AIU saw the struggles experienced by agents in the Hotel/Motel space and wanted to fill the gap. They had a goal of bringing new property capacity to the hospitality industry and were looking to help hospitality-focused agents place those less-than-perfect locations in a smart and responsible way.

AIU’s leadership team got to work. They decided to approach their carrier partners with a request to bring new capacity to the Hotel/Motel marketplace. With AIU’s strong background in loss control and program management, the team felt that they had a great opportunity in front of them. “There had to be a way out of this predicament,” says Ben Goldberg, Managing Partner at AIU. “I knew there

must be a way to benefit hoteliers, agents, and carriers alike. The challenge was getting our carrier partners to take the journey with us.”

Creating a program focused on 2- and 3-star hotels and motels can be quite risky. So many programs come and go before we can blink. Why would A-rated carriers in good standing want to travel down that path?

The Solution

“It all came down to our in-house underwriting and loss-control processes,” Goldberg explains. “Everything happens in-house in a streamlined and unique way. Our underwriters are well trained and know what to look for. They understand how to balance the risk of harder-to-place locations and how to make smart decisions. Our loss-control team then continues the process by ensuring that every location we accept into our program is up to our carriers’ required standards.”

Trust. That’s the secret sauce. When carriers see that their valuable capacity is respected and protected, they will return the favor. This is why AIU’s programs renew successfully year over year, inclusive of desirable coverage and rates.

How Do These Processes Positively Impact Clients?

These processes are extremely beneficial to AIU’s agency partners as well. Besides being able to provide clients with muchneeded capacity, the team has the ability to work quickly so agents can get answers fast. AIU’s in-house producers assist in making sure that all their clients’ needs are met and are there to guide their agents through all situations that arise. This personalized approach keeps clients happy and relaxed, knowing they can rely on the AIU team to get the job done.

Hospitality Risks

Searching 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 2024 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 47 (National).

Banquet Halls

States except Monopolistic & HI

Izzo Insurance Services, A div. of Hull & Co. All States

James River Insurance Company All States

Jencap

Jimcor Agencies

JM Wilson

Joseph Krar & Associates

All States

All States except AK HI

IA NE SD MT WY

All States except AK HI NY

CT MA ME NH RI

MacNeill Group FL NC SC TX VA

Nautilus Insurance Co. & Great Divide Ins. Co. All States

NeitClem Wholesale Insurance Brokerage, Inc. AZ CA NV

New Age Underwriters Agency, Inc. Most States

New England Excess Exchange

CT DC MA MD ME NC

2024 Hospitality Risks Directory

Bars/Night Clubs

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

Amalgamated

Amwins

Anderson

Bars/Night Clubs

States

Market Available

James River Insurance Company

Jencap

All States

All States

Jimcor Agencies (and Taverns) All States except AK HI IA NE SD MT WY

JM Wilson

Joseph Krar & Associates

All States except AK HI NY

CT MA ME NH RI

Legacy Employer Concepts, LLC All States

London Underwriters, LLC

All States except NY & IL

M.J. Hall & Company Insurance Brokers AK AZ CA CO HI ID KS

MT ND NE NM NV OK

OR SD TX UT WA WY

MacNeill Group

FL NC SC TX VA

Market Finders Insurance Corp. All States

MAXIMUM

All States

McLeckie Insurance Group AZ CO FL NC OK RI TN TX

New Age Underwriters Agency, Inc. Most States

New England Excess Exchange

CT DC MA MD ME NC

NH NJ NY OH PA RI VA VT

Number One Insurance Agency, Inc. MA

One80 Intermediaries See website for state info

Osprey Underwriters

Pacific Excess Insurance Marketing

All States

Most States

Pacific Gateway Ins. Agency (Auto coverage) All States except FL HI LA MA MI NJ NY

Patriot National Underwriters, Inc. AR KS LA MS OK TX

Pie Insurance (Work Comp coverage) 38 States + DC

Prime Insurance Company

Professional Liability Ins. Svcs, Inc.

All States

- Underwriting Facilities All States

Quaker Special Risk, a JenCap Company 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. IA IL IN OH WI

RT Specialty All States

Southern Insurance Underwriters (SIU) AL FL GA SC TN

Southwest Risk, LP All States except AK HI NJ NY

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

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 Specialty

All States

2024 Hospitality Risks Directory

Breweries/Micro

Breweries / Micro coverage category sponsored by: Monarch E&S Insurance Services - for more info, check out our ad on page 1 (West).

NY OH OR TN WI

Golden Bear AL CA CO HI ID KY MO MT NE NC ND NM OR SD UT WA

Gorst & Compass Insurance CA

Great American Ins. Group, Alternative Markets All States Hospitality Insurance Group CT MA NC NH PA RI VT Indemnity Excess & Surplus Agency

Insurance Program Mgrs Group (Work Comp) All States except Monopolistic & HI Integrated Specialty Coverages (+ Wine Bars) All States except AK & NM IPC AZ CA ID NV OR WA

Izzo Insurance Services, A div. of Hull & Co. All States Jacobs & Associates OH

James River Insurance Company All States Jencap All States

Legacy Employer Concepts, LLC All States M.J. Hall & Company Insurance Brokers AK AZ CA CO HI ID KS MT ND NE NM NV OK OR SD TX UT WA WY Market Finders Insurance Corp. All States

Monarch E&S Insurance Services All States

NeitClem Wholesale Insurance Brokerage, Inc. AZ CA NV

New Age Underwriters Agency, Inc. Most States New England Excess Exchange CT DC MA MD ME NC NH NJ NY OH PA RI VA VT

Breweries/Micro

2024 Hospitality Risks Directory

Caterers

Caterers

out

category

- for more info,

ad on page

by:

Number

Osprey Underwriters

All States

Philadelphia Insurance Co’s (+ Beer Gardens) All States except LA

Prime Insurance Company

Quaker

All States

RMS

XPT Specialty All States

2024 Hospitality Risks Directory

Caterers

Dinner Theaters

First

2024 Hospitality Risks Directory

Hotels/Motels

Hotels / Motels coverage category sponsored by: Amalgamated Insurance Underwriters - for more info, check out our ad on pages 28 & 29 (National).

Legacy

London

MAXIMUM

New

Southern

Southwest

All States

CA CO ID KS MO MT OR UT WA

Concorde General Agency IA MN MT ND SD

Covenant Underwriters All States

e-commerce insurance programs

CRC - Middletown CT MA ME NH NJ NY RI PA VT

DeCotis Insurance Associates AZ CO CT DE FL GA MA MD ME NC NH NJ NM NY OK PA RI SC TX VA VT

Distinguished Programs

All States

Eastern Underwriting Managers AL AR AZ CA FL GA IL IN KS KY LA MO MS NC NJ NV OK SC TN TX VA

Element22 Insurance Services All States

Gorst & Compass Insurance CA GSS Insurance Services AZ CA FL NV TX

Halcyon Underwriters All States

Hinterland Insurance All States except OK TX

Indemnity Excess & Surplus Agency AZ CA CO ID MT NV OR TX WA

Insurance Program Mgrs Group (Work Comp) All States except Monopolistic & HI IPC AZ CA ID NV OR WA

Izzo Insurance Services, A div. of Hull & Co. All States

2024 Hospitality Risks Directory

Hotels/Motels

States Market Available

Alliant Insurance Services All States

Amalgamated Insurance Underwriters All States

American Specialty Ins. & Risk Services, Inc. All States

Amwins All States

Amwins Underwriting All States

Aspera Insurance Services, Inc. AL AZ CA CO FL GA LA ME MI MS NC NV OR SC

Atlas General Insurance Services, LLC Many States

Bass Underwriters Most States

Berkley Select | a Berkley Company All States

Canngen Insurance Services, LLC

States

Cochrane & Company AR AZ CA CO ID KS MO MT OR UT WA

Distinguished Programs All States

Element22 Insurance Services All States

Erickson-Larsen, Inc. IA MN MT ND NE SD WI WY

Gorst & Compass Insurance CA

Hinterland Insurance All States except OK TX Insurance Program Mgrs Group (Work Comp) All States except Monopolistic & HI

Izzo Insurance Services, A div. of Hull & Co. All States

James River Insurance Company All States Jencap

Jimcor Agencies All states except AK HI IA

SD MT WY

JM Wilson All States except AK HI NY

K & K Insurance Group, Inc. All States

Legacy Employer Concepts, LLC All States

London Underwriters, LLC All States except NY & IL

MAXIMUM All States

National Trust Insurance Services (Historic) All States except AK & HI

One80 Intermediaries See website for state info

2024 Hospitality Risks Directory

AZ CA ID NV OR WA

IPC (HNOA for food delivery) All States except FL Izzo Insurance Services, A div. of Hull & Co. All States

Jacobs & Associates OH

James River Insurance Company All States

Jencap All States Jimcor Agencies All States except AK HI IA NE SD MT WY

JM Wilson All States except AK HI NY

Joseph Krar & Associates CT MA ME NH RI

KZ Insurance Brokerage, LLC AZ CA CO LA NV TN

Legacy Employer Concepts, LLC All States

London Underwriters, LLC All States except NY & IL M.J. Hall & Company Insurance Brokers AK AZ CA CO HI ID KS MT

MacNeill Group

ND NE NM NV OK OR SD

TX UT WA WY

FL NC SC TX VA

Market Finders Insurance Corp. All States MAXIMUM

All States

McLeckie Insurance Group AZ CO FL KY NC OK RI TN TX

Monarch E&S Insurance Services All States

National Trust Insurance Services (Historic) All States except AK & HI

Nautilus Insurance Co. & Great Divide Ins. Co. All States

NeitClem Wholesale Insurance Brokerage, Inc. AZ CA NV

New England Excess Exchange

CT DC MA MD ME NC NH NJ NY OH PA RI

2024 Hospitality Risks Directory

Spas

Special Events Special Events

Special

2024 Hospitality Risks Directory -

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. 300 Hallandale Beach, FL 33009

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

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

Amwins

See Website for Locations

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

Phone: 704-749-2700

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

Ema il: marketing@ascendantgroup.com

www.ascendantgroup.com

Ashley General Agency

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

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

Ema il: 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

Ema il: 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: 954-473-8030

Ema il: marketing@bassuw.com

www.bassuw.com

Berkley Fine Dining Specialists

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

Phone: 201-518-2500

Ema il: mail@berkleyluxurygroup.com

www.berkleyluxurygroup.com

Berkley Select | a Berkley Company

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

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

Ema il: info@berkleyselect.com

www.berkleyselect.com

Braishfield Associates, a division of Hull & Company, LLC

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

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

Email: solutions@braishfield.com

www.braishfield.com

Brecht & Associates

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

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

Ema il: 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

Canngen Insurance Services, LLC

P.O. Box 388, Roseville, CA 95661

Phone: 888-751-3141

Email: marketing@canngenins.com

www.canngenins.com

Centrex Underwriters

7508 Capital Dr., Germantown, TN 38138

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

Email: jcooper@centrexuw.com

www.centrexuw.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

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

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

990 Hammond Dr., Ste. 1050, Atlanta, GA 30328

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

Ema il: 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

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)

Hinterland Insurance

4601 DTC Blvd., Ste. 250, Denver, CO 80237

Phone: 314-496-7077

Email: info@hinterlandins.com

www.hinterlandins.com

Gateway Specialty Insurance

1170 Devon Park Dr., Wayne, PA 19087

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

Email: info@gatewayspecialty.com

www.gatewayspecialty.com

Golden Bear

1550 W. Fremont St., Stockton, CA 95203

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

Ema il: support@goldenbear.com

www.goldenbear.com

Gorst & Compass Insurance

9310 Topanga Canyon Blvd., Chatsworth, CA 91311

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

Ema il: mail@gorstcompass.com

www.gorstcompass.com

Great American Insurance Group, Alternative Markets

301 E. Fourth St., Cincinnati, OH 45202

Phone: 860-683-4802

Ema il: jguidry@gaig.com

www.greatamericaninsurancegroup.com/about-us/ business-operations/division/alternative-markets

GSS Insurance Services

P.O. Box 20277, Bullhead City, AZ 86439

Phone: 760-947-5500, Fax: 909-494-7854

Email: info@gssinsurance.com

www.gssins.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

InsuranceHelper.com

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

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

Ema il: brokers@insurancehelper.com

www.insurancehelper.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)

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

Phone: 888-531-4722

Email: contact@iscmga.com

www.iscmga.com

IPC

P.O. Box 1150, Gardnerville, NV 89410

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

Email: tammy@ipc-nv.com

www.ipc-nv.com

Izzo Insurance Services, 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

Jacobs & Associates

12782 Prospect Rd., Strongsville, OH 44149

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

Email: beth.jacobs@towerstonecorp.com

www.jacobsnow.com

James River Insurance Company

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

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

Ema il: info@jamesriverins.com

www.jamesriverins.com

Jencap

1350 Broadway, Ste. 602, New York, NY 10018

Phone: 800-892-8892

Ema il: info@jencapgroup.com

www.jencapgroup.com

Jimcor Agencies

60 Craig Rd., Montvale, NJ 07645

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

Ema il: marketing@jimcor.com

www.jimcor.com

JM Wilson

8036 Moorsbridge Rd., Portage, MI 49024

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

Ema il: cbaldwin@jmwilson.com

www.jmwilson.com

Joseph Krar & Associates, Inc.

1676 West St., Southington, CT 06489

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

Ema il: 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

Ema il: 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 Insurance Brokers

P.O. Box 192, Stockton, CA 95201

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

Ema il: Alyssa.Lahti@mjhall.com www.mjhall.com

MacNeill Group

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

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

Email: mgmarketing@macneillgroup.com

www.macneillgroup.com

Market Finders Insurance Corp

P.O. Box 6549, Louisville, KY 40206

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

Ema il: kelliwharton@mfic.com

www.mfic.com

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

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

Ema il: clarac@monarchexcess.com www.monarchexcess.com

National Trust Insurance Services, LLC

10150 York Rd., Ste. 420, Cockeysville, MD 21030

Phone: 866-269-0944, Fax: 410-685-3971

Ema il: info@nationaltrust-insurance.org www.nationaltrust-insurance.org

Nautilus Insurance Co. & Great Divide Ins. Co.

7233 E. Butherus Dr., Scottsdale, AZ 85260

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

Ema il: 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

Ema il: 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

Ema il: m.ascher@newageins.com www.newageins.com

New England Excess Exchange

P.O. Box 650, Barre, VT 05641

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

Ema il: achase@neee.com

www.neee.com

NEXT Insurance

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

Phone: 855-222-5919

Ema il: agents@nextinsurance.com

agents.nextinsurance.com

Number One Insurance Agency, Inc.

91 Cedar St., Milford, MA 01757

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

Ema il: 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

Ema il: quotes@ospreyuw.com

www.ospreyuw.com

Pacific Excess Insurance Marketing

6363 Katella Ave., Cypress, CA 90630

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

Ema il: marketing@pacificexcess.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

Ema il: brian.stephens@patriotnational.com

charlene.carlson@patriotnational.com

www.patriotnational.com

Philadelphia Insurance Companies

One Bala Plaza, Ste. 100, 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

www.pieinsurance.com/agency

Prime Insurance Company

1 S. Dearborn St., Ste. 800, Chicago, IL 60603

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

Email: RJL@primeis.com

www.primeis.com

Professional Liability Insurance Svcs,

Inc. - Underwriting Facilities

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

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

Ema il: underwriting@plisinc.com

www.plisinc.com

Professional Program Insurance Brokerage, A division of SPG Insurance Solutions, LLC

1304 Southpoint Blvd., Ste. 101, Petaluma, CA 94954

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

Ema il: info@ppibcorp.com

www.ppibcorp.com

Quaker Special Risk, a JenCap Company

See Website for Locations

Headquarters - Eatontown, NJ 07724

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

Ema il: 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

Ema il: lvazquez@quirkco.com

www.quirkco.com

Risk Placement Services, Inc.

70+ Locations, Headquarters - Rolling Meadows, IL

Phone: 866-595-8413

Ema il: 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

Ema il: 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

Ema il: info@roushins.com

https://www.roushins.com/

2024 Hospitality Risks

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

SASSI - Salon & Spa Specialty Insurance

21 Maple Ave., Bay Shore, NY 11706

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

Ema il: info@brownyard.com

www.sassiagency.com

Southern Insurance Underwriters (SIU)

4500 Mansell Rd., Alpharetta, GA 30022

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

Ema il: marketing@siuins.com www.siuins.com

Southwest Risk, LP

8144 Walnut Hill Ln., Ste. 1400, Dallas, TX 75231

Phone: 214-206-4900, Fax: 214-206-4901

Ema il: info@swrisk.com

www.swrisk.com

Specialty Insurance

1610 Route 88 Ste. 102, Brick, NJ 08724

Phone: 732-701-8900

Ema il: apyciak@specialtyagency.com www.specialtyagency.com

TAPCO Underwriters, Inc.

3060 S. Church St., Burlington, NC 27216

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

Ema il: kallred@gotapco.com www.gotapco.com

The McGowan Companies

20595 Lorain Rd., Fairview Park, OH 44126

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

Ema il: 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

Ema il: marketing@ucageneral.com

www.ucageneral.com

UFG Specialty

3200 N. Central Ave., Ste. 1225, Phoenix, AZ 85012

Phone: 319-247-6421

Email: specialtymarketing@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

Ema il: getconnected@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

Ema il: 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

Ema il: 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

XPT Specialty

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

Idea Exchange: The Marketing Connection

Innovative Tools and Platforms for Insurance Marketing

Maintaining a progressive approach to marketing is crucial for an insurance business to succeed. Innovative tools, software and platforms have transformed the way modern insurance professionals connect with their audience, streamline operations and enhance customer engagement.

By Kristen Nevins

Let’s explore the latest technologies that are revolutionizing marketing efforts within the insurance space.

1. Customer Relationship Management (CRM) Systems

Implementing a robust CRM system can be a game-changer for insurance professionals. These tools provide a centralized platform to manage client information, track interactions and automate communication. Many platforms offer tailored solutions for the insurance space — enabling you to build stronger relationships, streamline processes, and personalize marketing strategies.

2. Data Analytics and Predictive Modeling

Data-driven insights are indispensable in today’s competitive market. Insurance professionals can leverage advanced analytics and predictive modeling tools to analyze customer behavior, identify trends, and anticipate market shifts. These tools can empower insurers to make informed decisions, optimize marketing campaigns, and enhance customer targeting.

3. Social Media Management Platforms

In an era dominated by social media, insurance professionals need to have a strong online presence. Social media management platforms enable you to schedule posts, engage with your audi-

ence, and analyze performance metrics. These tools facilitate effective social media marketing, allowing insurance professionals to connect with clients and prospects on popular platforms, such as LinkedIn.

4. Chatbots and Virtual Assistants

Automation is reshaping customer interactions in the insurance sector. Chatbots and virtual assistants powered by artificial intelligence (AI) can handle routine queries, provide instant quotes, and guide customers through the insurance process. Integrating chat and AI tools not only enhances customer service but also frees up valuable time to focus on more complex tasks.

5. Video Marketing Platforms

Video content has become a powerful tool for conveying complex insurance concepts in an engaging manner. Many platforms provide features for creating, hosting and analyzing video content.

Insurance professionals can leverage video marketing to simplify policy explanations, share success stories, and establish a more personal audience connection.

6. Email Marketing Automation

Email marketing remains a cornerstone of effective communication. Automated email tools allow insurance professionals to create targeted email campaigns, track customer interactions, and measure campaign success. Personalized and automated email sequences can nurture leads, provide valuable information, and strengthen client relationships over time.

7. Insurtech Platforms

The rise of insurtech has introduced platforms that seamlessly integrate technology into insurance processes. These companies are disrupting traditional models, offering user-friendly interfaces, and employing innovative marketing strategies. Keeping an eye on emerging insurtech trends ensures that insurance professionals stay competitive in the evolving landscape.

Conclusion

The convergence of technology and insurance is not just a trend; it’s a strategic imperative for insurance professionals aiming to redefine their marketing approach and elevate customer engagement to unprecedented levels.

Embracing the latest tools and platforms is imperative to thrive in the modern market.

By incorporating CRM systems, data analytics, social media management, chatbots, video marketing, email automation and insurtech platforms, insurance agents, carriers and wholesalers can unlock new avenues for marketing success.

Idea Exchange: Hospitality

Don’t Let Criminals Steal a Guest’s Good Time: Theft Awareness and Prevention in the Hospitality Industry

Theft is an opportunistic crime, and few places provide more opportunity for a criminal than a hotel or resort. From the moment that guests first pull into the parking lot until their eventual check out and departure, theft risks lurk even in the nicest of properties. To compound the exposures, damage wrought by a thief can go far beyond loss of valuable items; just a single one-star review with the headline “my stuff was stolen” can do irrevocable harm to a hotel’s reputation and bottom line.

Fortunately, good employee education and thoughtful policies can help mitigate some of this risk. By implementing a combination of proper facility protocols and safety awareness programming for staff, hospitality executives can help protect their organizations from liability while simultaneously ensuring the safety of guests and their belongings.

For brokers and insureds alike, it all begins with recognizing the potential risks that exist throughout the property.

Parking Lots Are One of the Easiest Targets for Thieves.

From the contents of automobiles to the vehicles themselves, parking lots are attractive spots for thieves, particularly those with little and/or poor lighting and a lack of security or cameras. Having finally arrived at their destination may foster a false sense of security for guests that makes their vehicles vulnerable. Yet it takes a thief under 10 seconds to break a window, grab a laptop bag, and be on their way.

Contributing to the theft risk in hotel parking lots is the sheer amount of stuff people keep in their vehicles while traveling, and the fact that vehicles are left overnight.

Property location also matters. In contrast to a resort where people are more likely to move their luggage in for a multi-night stay, hotels next to an interstate are more likely to host transient travelers who won’t always remove everything from their vehicles for a single night stay. Adjacent highways also offer an easy getaway, which may make those locations more attractive targets for criminals.

By Andrea Ball and Andrew Luttrell

Some degree of crime prevention can be accomplished through environmental design. Lighting is a huge part of the solu-

continued on page 46

Idea Exchange: Hospitality

continued from page 45

tion — not only is a well-lit lot a deterrent in its own right, but good lighting can also help with motion sensors and patrolling.

The presence and visibility of security patrols is also key. An overnight security team walking through a lot can help prevent both in-the-moment and premeditated theft.

Cameras should be present at the entrance and exit gate area, and placed high enough so that they can’t be damaged yet low enough to capture a clear picture of car occupants and their activity.

Finally, signage explaining that the property is not responsible for any theft is an inexpensive and highly recommended tactic, as it may deter individuals from leaving items exposed.

Employee training and procedures can also hinder criminals who are inspired to break into a vehicle and drive away. At properties where a guest room key is required to get out of the lot, thieves may use the call box to say their key card isn’t working and ask that the gate be opened. If a camera is in place, this should be used to confirm the presence (and ownership) of the non-working card before pressing a button to lift the arm.

In the event that no camera is available, the occupant of the car can be directed to come to the front desk to secure a new card. The card would be provided only after the driver has provided proper identification including a driver’s photo ID and can verify vehicle ownership, either by vehicle registration or rental agreement.

Another option when a camera is not present is for security, if available, or at least two employees to meet the vehicle at the exit to provide a new key card, again, only if proper identification and ownership is provided.

Public Areas Are Easy Places for People to Let Their Guard Down.

From restaurants and lobby bars to swimming pools and recreational facilities, people feel relatively safe within the confines of a hotel property. This false sense of security allows for guests to let their guard down a bit. All it takes is for someone who has left their phone beside them on the

table or their pocketbook over the back of their chair to turn their attention away for a moment, and a thief can easily walk away with their valuables.

Guests should be encouraged to practice vigilance, but employees should also be on ready alert to such incidents as they go about their workday.

Valet areas are another public spot that can be vulnerable. Leaving keys in vehicles on the valet driveway is a common practice with safety ramifications, and the tendency of both guests and staff to trust everybody can be a recipe for disaster. One easy mitigation procedure is for staff to check IDs and write guests’ names down when they take their keys.

This makes it easier to ensure a match between guest and vehicle, and protects against the inevitable awkwardness of a guest who says, “I don’t have my ticket but that’s my black truck.” In the event a ticket truly is lost, the valet should re-check the driver’s photo ID and verify vehicle ownership, either by vehicle registration or rental agreement.

Finally, don’t forget that some guests may feel uneasy about handing over their keys to a stranger. Ensuring staff is properly attired with name badges easily visible can help address this concern.

The Check-In Process Presents Additional Security Exposures.

Guests who are focused on the check-in process may be paying less attention to their luggage and other personal belongings. Additionally, unwittingly sharing their room number with all those within earshot creates a further security issue for guests.

From a process standpoint, front desk employees should take care never to say a guest’s room number out loud or make it visible to anyone other than the person checking in. Key card systems that only offer access to a guest’s floor can provide an additional layer of protection by helping to prevent anyone from following a guest up in an elevator.

Should a criminal manage to follow a guest up to their floor, one of the things they will often be watching for is the automatic closing mechanism after the guest enters their room. If the door does not close and latch, it is not secured properly; the thief then needs only to wait for the guest to drop their belongings and leave before accessing the room.

Preventative maintenance can help alleviate this risk. It should be standard practice for housekeeping staff to check that doors are latching as part of their

daily routine checklist, and to contact engineering if an issue is found.

In-Room Theft: Contrary to Public Belief, Employees Are Not the Primary Culprits.

Historically, there has been a lot of focus on staff theft in the hospitality industry. Today, however, we are seeing that staff theft is far less common than it used to be, simply because standards and practices are better.

‘Some degree of crime prevention can be accomplished through environmental design.’

Nonetheless, to combat the risk of staff theft accusations, it’s essential for hotel rooms to have an in-room safe that’s functioning (check the batteries frequently), well-positioned and easy to get to (not too high up on a shelf or down in an unreachable corner), and has easy instructions for use (if guests can’t quickly figure out how to use a safe, they simply won’t). Safes should also be secured to the wall using bolts on the inside of the safe so that they can’t be removed.

Too often, safes are tucked away for aesthetic reasons, but hiding a safe in a cabinet does not encourage its use. Best practice here is for the bellman, front desk crew, or any other staff members that interact with guests at the point of checkin to ensure guests understand that there is a safe in the room and any valuables should be locked away for the duration of their stay.

An additional in-room risk that is common in resort settings is a sliding glass door to the courtyard or beach. Direct access to the beach or pool can be considered an upgraded room feature, but people fail to keep in mind the safety and security considerations. They often walk out of the room that way and don’t bring their key card — and a room left unlocked and unattended is an easy target. Signage and reminders to keep sliding doors closed and locked at all times can help mitigate this common exposure.

A Secure Stay Is a Positive Stay.

Making people feel at home is a priority for the hospitality industry, and no one wants to fear monger to the point that guests feel uncomfortable in their surroundings. But with a little bit of caution and a well-trained team, hotels and resorts can effectively help protect their guests —

and themselves — against potential theft exposures. Carrier risk control teams can be a valuable partner in helping hospitality industry insureds to identify and mitigate theft risk.

Ball and Luttrell are senior casualty specialists at Sompo International North America

Idea Exchange: Agency Management

Tomorrow’s Insurance Agent: Leveraging New Skill Sets Next

Gens

Bring to the Table

For the last decade and a half, business leaders have struggled to comprehend, motivate and manage the millennial generation. Recently, I read an online article where business owners discussed the “new” generation of workers and it was both amusing and alarming to see that millennials were the focus of their conversation.

By Tony Caldwell

Millennials, born between 1981 and 1996, are not new to the work force at all; the newest generation of American workers is Generation Z, born between 1997 and 2010.

Understanding who Gen Z is and how they differ from those who came before them is critical to any business leader recruiting for their organization. As it turns out, Gen Z may be the most naturally suited for agency life. Business leaders who recognize this and leverage the skills, perspectives, diverse backgrounds and thought they bring to the table will be setting up their agencies for success for years to come.

A Closer Look at Gen Z

Members of the new generation who entered the work force during the last few years are highly collaborative and social, according to Roberta Katz of Stanford University’s Center for Advanced Study in the Behavioral Sciences, quoted in Stanford News. This collaborative nature may present another reason to abandon the term “employee” in favor of “team member.” Members of this generation, the first in human history to be complete digital natives, are experts at social media, but prefer face-to-face communication over any other form, according to Katz’s research.

Generation Z is not only the most diverse generation in history, according to research conducted by the Pew Research Center, but it is also the best educated with nearly 60% pursuing higher education —

more than any other generation in history. As they bring this diverse thought and background, as well as education, into the work force they also bring attitudes that value nonhierarchical leadership, pragmatism and independence. Katz’s research reveals a generation that, like the retiring Baby Boomer generation, questions authority and fixed rules. They are accustomed to self-direction and researching what they need to know on their own.

Embodying a desire for individual expression and valuing authenticity, this diverse generation sees the world very differently than their predecessors, according to McKinsey & Company.

Ideal Prospects for an Industry Undergoing a Global Transformation

As I research Gen Z and talk with my children’s friends, all of whom are members, I come away with this insight: There may never have been a generation more naturally suited for entrepreneurialism than this one.

In my opinion, a knack for entrepreneurialism defines potential success in

the insurance industry. The wiring of this new cohort entering the work force makes them the best prospects our business has seen in decades. Our industry — one that traditionally younger workers found uninteresting — is well-positioned to reel them in as we continue to undergo the fastest rates of change we’ve experienced at any time in history. Just consider that:

• Global weather is disrupting underwriting, carrier profitability, agent marketing plans, product design and business models more rapidly than ever before.

• Innovations for which no one really understands the impact like digital tokenization and block chain currencies appear to hold the promise of rapidly disrupting the insurance agency and insurance underwriting businesses.

• Artificial intelligence and machine learning pose the promise, or threat, to eliminate millions of jobs, and unlike previous economic dislocations, those jobs are most likely higher skilled rather than lower skilled positions.

These changes are frightening or at least confounding to older industry participants.

But who better to take them on than a generation raised in constant change and for whom digital disruption is considered the norm?

One way of attracting these young people to our businesses might be to simply highlight the very things we most fear. Another is to appeal to their nonhierarchical natures by giving them a seat at the table from the beginning of their careers to help solve the problems that seem bewildering to older, more experienced generations.

Leverage Gen Z Talent for Agency Growth

For a generation of self-directed people, who value their independence, are experienced in problem solving as well as educating themselves, it seems that offering them opportunities to build their own businesses, chart their own paths and do so in ways that appeal to their desire for authenticity is a natural opportunity for the independent agency system.

To attract this new cohort, agency owners and managers should be thinking: How can we open up our systems, processes, policies and procedures to people who want to explore doing things differently to take advantage of this generation’s native skill sets? How can we redefine the business to reward teamwork, as well as individual performance? How can we take advantage of this group of young people’s natural diversity to create opportunities for both them and for our companies?

It seems to me that some of the strategies to consider and some of the skills of this generation to leverage include:

• Empowering these new work force entrants to market and sell outside of your traditional geography. These young people are not only unafraid to communicate, relate and work at a distance, they are used to doing it. Let them show you how to broaden your geographical reach.

• Tapping into their collaborative nature, diverse character, pragmatic approach to problem solving and innate desires for authenticity to help you grapple with the increasing ESGR requirements of government and society and open up new target markets.

• Using their natural collaboration skills,

desire for face-to-face communication, as well as digital talent, to create new ways to foster teamwork internally in your business and perhaps even to grow revenues in different ways with team selling and marketing.

• Offering them direct pathways to financial and business independence through new partnership models in your agency to appeal to their natural self-reliance and desire for independence.

• Stressing the never-ending education and personal development requirements of our industry as advantages for a generation of motivated learners instead of a negative.

• Giving them early responsibility to help guide and develop your agency’s response to the challenges and opportunities created by AI and machine learning while taking advantage of their digital capabilities.

• Challenging them, and encouraging them, to use their social media skills, desire for community and connection and natural collaboration to market your business in new ways.

As I think about the opportunities and talents this “new” generation presents, I find it tremendously exciting. I think they hold the promise of helping leaders and principals in a still traditional business evolve with the rapidity that the future

will require for survival and progress. Recruiting, leading, managing and motivating this generation will require different attitudes, mind sets and skills than it did for Gen X or Millennials, but they stand ready to collaborate with you and help your business grow for your benefit, as well as theirs.

Caldwell is an author, speaker and mentor who has helped independent agents create more than 250 independent insurance agencies. Website: www.tonycaldwell.net. Email: tonyc@oneagentsalliance.net.

Closing Quote

That Insurance Talent Crisis? It’s a Global Knowledge Opportunity

By Dan Epstein

‘Failing to replace lost knowledge can quickly jeopardize the business of insurance.’

Over the next 15 years, 50% of the current insurance workforce will retire. It’s a jarring number. This leaves more than 400,000 open positions unfilled, according to the U.S. Chamber of Commerce. At the same time, the industry is experiencing an unemployment rate nearly half the national average, per the U.S. Bureau of Labor Statistics. The combined result of these trends is an unprecedented loss

of insurance knowledge — one that is bound to get worse.

COVID taught us that we can operate in a global remote working environment with a high degree of productivity without creating the data security risks that many feared it might. And one solution for relieving the talent crunch is outsourcing basic tasks so that your employees can focus on higher-level work. Unfortunately, traditional outsourcing only fills the most basic support roles and does not go far enough to ensure long-term success.

The reality is that the teams who are winning aren’t simply outsourcing. They’re up-sourcing: delegating increasingly complex and higher-value tasks to a global workforce — either internally or through a trusted knowledge process management (KPM) provider — with the right level of insurance knowledge, process discipline, and technological enablement to deliver results.

Insurance Organizations

At Risk

Failing to replace lost knowl-

edge can quickly jeopardize the business of insurance.

Underwriters make nuanced, informed judgements, where, for many commercial risks, there are simply too many contingencies to create rulesbased decision trees that can be easily taught or automated.

For agencies, the increasing complexity of risks requires greater specialization, which is challenging given a lack of technical insurance training.

Insureds suffer chronic underinsurance in areas like business interruption, building ordinance coverage, flood and cybersecurity. This will grow worse as we lose knowledgeable practitioners, placing greater pressure on hiring and training while increasing E&O and reputational risk.

Using KPM to Transform, Grow

There’s no question that you can develop an in-house global workforce, but managing these centers can be costly and dilutive if it is not a core competency. The right KPM partner can offer process discipline and deep insurance knowledge for tasks at a scale that is often more efficient and cost-effective than insurers and agencies could build themselves.

Here are two examples — one carrier, one agency — that represent an “up-sourcing” model for complex workflows:

• Submission-to-Bind. A few points of improvement in bind ratios can represent many millions of premium dollars and positively impact expense ratios. A KPM partner will clear, review and process submissions to quickly eliminate those that don’t meet your criteria,

accelerating response rates and allowing for more careful underwriting review.

• Renewals. Account retention is the lifeblood of agency growth and profitability. A KPM partner can take on multiple higher-level tasks along the renewal workflow such as preparing loss summaries, updating renewal submissions and sending to carriers for quotes, checking quotes against submission, and issuing proposals. This can lead to improved revenue per producer and account executive.

Up-Sourcing

The shortage of experienced insurance professionals creates operational gaps that inhibit growth and increase policyholder risk. And while technology and automation can mitigate capacity constraints, true competitive advantage comes from deep insurance knowledge. Insurance domain knowledge is the most finite and rapidly dwindling resource in the insurance ecosystem, and one for which all insurance organizations must find a consistent, reliable and scalable solution.

More insurance organizations are looking for a true KPM partner that can go beyond simple repetitive tasks to handle increasingly complex workflows to elevate the productivity of core agency and carrier professionals. So, while finding insurance talent in the U.S. remains constrained, a global strategy becomes paramount.

Epstein is CEO of ReSource Pro. Website: www.resourcepro.com