Insurance Business America issue 7.01

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2019 Meet 50 leading specialists who can provide the expertise you need to find solutions for hard-to-place risks MISSING THIS CRITICAL COVER?

If you think your clients don’t need an environmental policy, think again

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THE SHIFTING SANDS OF INSURTECH How carriers went from battling insurtech startups to embracing them

GET INTO A BUDDING SECTOR

How to approach the ever-changing cannabis insurance market

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ISSUE 7.01

CONNECT WITH US Got a story or suggestion, or just want to find out some more information?

CONTENTS

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UPFRONT 06 Editorial

It’s time for brokers to get back to basics

50 FEATURES

2019

SPECIAL REPORT

26

TOP SPECIALIST BROKERS

Agents named 50 specialist brokers whose expertise they rely on daily to serve clients in a variety of industries, from construction and oil & gas to transportation and hospitality

PEOPLE

INDUSTRY ICON

Christopher Croft, head of the London & International Insurance Brokers’ Association, discusses the modern challenges facing the world’s oldest insurance market

22 2

A REWARDING ENVIRONMENT

If your clients don’t have environmental insurance yet, they could be leaving themselves vulnerable to some major risks

08 Statistics

A look at the most common claims for businesses worldwide

10 Head to head

After a challenging year, what’s next for Lloyd’s?

12 News analysis

The insurance industry has woken up to the value of insurtechs

14 Intelligence

This month’s big movers, shakers and new products

16 Workers’ comp update

States continue to reduce workers’ comp rates, but is it sustainable?

18 Technology update

54 FEATURES

EXECUTIVE EXPERTS

Risk Strategies’ Iyan Alfredson and John Morahan on how #MeToo has altered executive liability

How insurers are responding to the shift to a customer-driven business model

20 Opinion

The expansion of intentional harm exclusions represents a dangerous precedent for liability insurance

FEATURES 60 Don’t let sloppy emails ruin productivity Inbox raging out of control? Here are three ways to get on top of it

PEOPLE

56 FEATURES

CULTIVATING GROWTH

Many large carriers have declined to participate in the cannabis market, but that doesn’t mean brokers should follow suit

63 Career path

From law school to London, Matt Shulman has always relied on his leadership skills

64 Other life

Going the distance with broker and aquabike competitor Rae Heath

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Backbone, Not Wishbone.

We work hard for your clients, your brokerage business and our relevancy to you.

Binding Authority: We have a singular focus on commercial E&S risks and a firm commitment to our wholesale brokers. For over 50 years, we’ve been delivering solutions to unique risks.

Brokerage: Our multi-disciplinary teams offer customized property, professional and specialty lines solutions, on a distribution-neutral basis with Lloyd’s and U.S. domestic paper.

Programs: With leading underwriting expertise in niche markets, our program administrators serve unparalleled responsiveness.

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UPFRONT

EDITORIAL

Brokers’ biggest challenge in 2019

T

he insurance industry has been dominated by a handful of themes over the last few years: updating legacy technology to meet client demand for round-the-clock service, finding new talent to replace rapidly retiring employees and genuinely embracing a diverse workforce that clients can relate to. Alongside those key challenges have been regulatory changes and a push for transparency. But amid it all, have we lost track of what was once the raison d’etre of a broker’s service: choice?

Where to place a risk is one of the vital elements of a broker’s business proposition – they bring expertise to the table to help clients with unique needs, especially if that client’s risk doesn’t fit the appetite of a traditional insurer. In this regard, brokers have the option to turn to lesser-known insurers or MGAs to expand choice for their clients. Indeed, the changing nature of risk has only made this role more important.

This may be a time of great change, but it’s also one in which it’s vital to remember what has made insurance thrive: having solutions for customers’ ever-changing risk needs Yet the insurance market has changed, too. Regulation has had an impact on many capacity providers; today, the possibility that a claim might be severe or occur frequently could lead some insurers to walk away from risks altogether.

Market practices are also changing. Some smaller brokers have been squeezed out as insurers choose to transact by electronic means only – indeed, some prefer to only work with the big-name brokerages that can offer significant levels of commercial support.

In 2019, perhaps the biggest challenge facing brokers is not so much about battling insurtechs, broadening their workforce or even falling in line with regulation; rather, it is in providing that most basic of broker benefits: capacity.

It’s a challenge that both the broker and the insurer need to work together to address – the insurer by improving access, and the broker by making their value proposition more appealing. This may be a time of great change, but it’s also one in which it’s vital to remember what has made insurance thrive: having solutions for customers’ ever-changing risk needs. That’s something that can only be achieved when brokers and insurers work together.

The team at Insurance Business America

www.ibamag.com MAY 2017 EDITORIAL Managing Editor Paul Lucas Journalists Alicja Grzadkowska, Bethan Moorcraft, Ksenia Stepanova News Writers Lyle Adriano, Krizzel Canlas, Terry Gangcuangco, Mina Martin, Gabriel Olano Staff Writers Hannah Go, Libby MacDonald, Nicola Middlemiss, Joe Rosengarten, Ryan Smith, Heather Turner Copy Editor Clare Alexander

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Insurance Business America is part of an international family of B2B publications, websites and events for the insurance industry Insurance Business Canada john.mackenzie@kmimedia.ca T +1 416 644 874O Insurance Business UK nathan.beach@keymedia.com T +44 20 7193 0935 Insurance Business Australia peter.smith@keymedia.com.au T +61 2 8437 47OO Insurance Business NZ peter.smith@keymedia.com.au T +61 2 8437 47OO Insurance Business Asia peter.smith@keymedia.com.au T +61 2 8437 47OO Printed in Canada Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss.

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UPFRONT

STATISTICS

At a loss

CANADA

Humans and technical errors are behind the lion’s share of corporate insurance losses More money than ever is on the line in corporate insurance claims – but more than three-quarters of these claims can be traced to a relatively small cohort of causes, most of which are attributable to human or technical factors. Non-natural hazard events are behind 87% of all claims by value and 95% of all claims by number, according to a recent study by Allianz Global Corporate & Specialty.

Despite the increasing prevalence of natural

€58.1 billion €32 million Total value of claims worldwide during the five-year period analyzed by AGCS

The average amount paid out every day globally for corporate claims

disasters, storms were responsible for just 7% of corporate claims by value.

In addition, corporate claims payments can vary enormously. While significant corporate losses of more than €100 million account for less than 1% of claims, such incidents are responsible for a third of the total value of losses. Ninety percent of claims came in at €50,000 or less, but were responsible for only 4% of claims by value.

95%

Percentage of claims attributable to non-natural hazard events

€3.1 million

Size of the average business interruption property insurance claim

USA

TOP CAUSES OF LOSS AROUND THE WORLD Fire /explosion – the top cause of corporate loss by value worldwide – topped the list as the most common source of corporate claims for several of the world’s leading economies, including the US, Canada, China and Germany. The second and third leading causes of corporate loss – aviation collision/crash incidents and faulty workmanship – came in first in many other major economies, including Australia, Singapore, South Africa and Brazil.

Source: Global Claims Review: The Top Causes of Corporate Insurance Losses; Allianz Global Corporate and Speciality, 2018

LOSS BY VALUE

BY THE NUMBERS

Seventy-six percent of corporate claims are prompted by just 10 causes; by far the biggest source of loss is fire/explosion.

Smaller losses (those below €50,000) account for the bulk of all corporate claims, but make up a small percentage by value. A third of the total value of all claims is attributable to losses above €100 million; however, such claims are rare.

Number of losses Value of losses

CORPORATE LOSS BY VALUE, 2013-2018

90%

Aviation collision/crash 14%

80%

Faulty workmanship/maintenance 8%

70% 60%

Storm 7% Defective products 6% Damaged goods 5%

50% 40% 30%

Machinery breakdown 5%

20%

Water damage 3%

10%

Ship sinking/collision 2%

0%

Professional indemnity 2% Source: Global Claims Review: The Top Causes of Corporate Insurance Losses; Allianz Global Corporate and Speciality, 2018

8

100%

Fire/explosion 24%

Up to €50,000 to €100,000 to €500,000 to €1 million to €5 million to €50 million to €100 €50,000 €100,000 €500,000 €1 million €5 million €50 million €100 million million+ Source: Global Claims Review: The Top Causes of Corporate Insurance Losses; Allianz Global Corporate and Speciality, 2018

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Fire/explosion Faulty workmanship/maintenance

GERMANY

Professional indemnity (e.g. negligence/bad advice)

UK

Defective products

CHINA

Storm Aviation collision/crash FRANCE

ITALY HONG KONG SPAIN

SINGAPORE

BRAZIL

AUSTRALIA

BRAZIL

Source: Global Claims Review: The Top Causes of Corporate Insurance Losses; Allianz Global Corporate and Speciality, 2018

TOP CAUSES OF CLAIMS NATIONALLY

RISKIEST BUSINESSES

Due to a number of recent blazes, fire/explosion reigned as the top cause of loss for American businesses by value.

Storm damage came in a close second on that list, thanks to the record-breaking hurricane year in 2017.

The aviation industry is responsible for almost one-quarter of the value of all corporate claims worldwide. Property and energy are in joint second place, accounting for 17% each.

BY VALUE OF CLAIMS

BY NUMBER OF CLAIMS

Fire/explosion 22%

Automobile crash/collision 12%

Storm 18%

Water damage 9%

Aviation Storm 7%collision/crash 10%

Faulty workmanship/maintenance 8%

Faulty workmanship/maintenance 6%

Damaged goods 7%

Defective products 5%

Crime and disorder 7% Source: Global Claims Review: The Top Causes of Corporate Insurance Losses; Allianz Global Corporate and Speciality, 2018

Aviation 22% Property 17% Energy 17% Marine 15% Engineering 14% Liability 5% Financial lines 4% Mid-corporate 4% Entertainment 1% Other 1%

Source: Global Claims Review: The Top Causes of Corporate Insurance Losses; Allianz Global Corporate and Speciality, 2018

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18/01/2019 4:10:02 AM

UPFRONT

HEAD TO HEAD

What is Lloyd’s role in the modern insurance industry?

On the heels of a challenging year, what’s next for the industry stalwart in 2019 and beyond?

Ian V. Muress

Dominick Hoare

Hank Watkins

CEO Sedgwick

Chief underwriting officer Munich Re Syndicate

President, North America Lloyd’s

“The complex commercial claims of Lloyd’s remain the number-one market for specialty classes of business and complex claims. The expertise in the insurance profession is exceptional and unique.

Their global brand reputation in the US, EMEA and Southeast Asia is highly regarded, but more importantly, post-Brexit, Lloyd’s Brussels subsidiary and platform in China are essential for the global insurance market to still offer access for multinational companies to find the appropriate cover and global risk programs.

With John Neal, Lloyd’s new CEO, at the helm, he will lead the market forward into the 21st century.”

“Lloyd’s not only has a global role as the center for specialty insurance, especially for large and complex risks, but is also a global leader in cover for emerging risks, such as cyber, where Lloyd’s has an estimated 35% market share.

One of its main roles is pushing the market forward with innovation and modernization, with creations like Lloyd’s Lab and Lloyd’s Bridge. Lloyd’s also plays an important part driving alternative distribution platforms to adapt to regulatory change, such as Lloyd’s Brussels and Lloyd’s China. It blends stability with entrepreneurship, strengthens London as a (re)insurance hub and continuously looks to close the performance gap.”

“During 2018, our priorities focused on improving underwriting performance, reducing expenses and enhancing access to Lloyd’s through technology. In this age of digital disruption, Lloyd’s is disrupting itself and embracing the disruptors, most recently via the launch of Lloyd’s Lab, our new innovation accelerator in London.

Lloyd’s established a subsidiary in Brussels to ensure that customers based in the EEA are able to access the market’s specialist underwriting post-Brexit.

Thought leadership continued with the refresh of our City Risk Index and release of studies on how risk in the sharing economy and broader virtual world impacts new product development.”

WHERE NOW FOR LLOYD’S? CEO turnover and faltering lines of business created a tough 2018 for Lloyd’s of London. The venerable insurance market reported a mid-year loss of roughly $2.6 billion just before CEO Inga Beale announced her intention to move on. “Lloyd’s, first and foremost, needs to decide what it wants to be,” said Jonathan Ritz, president of Western World Insurance Group and CEO of Validus Specialty, at the recent Kaufman Leadership Meeting. “I think it’s going through a bit of an identity crisis … I think the jury’s out as to whether Lloyd’s is going to return more to a specialty market, as opposed to being more of a generalist market, which is what it has been probably for the last 15 years.”

10

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They’re redefining the industry.

RPS congratulates our colleagues named Top Specialist Brokers of 2019: Rodney Choo | Management Liability & Transactional Risk Casey Evans | Construction Casualty & Wrap-ups Ron Kiefer | Professional Liability James Rozzi | Large Catastrophic Exposed & High Risk Property Specialist

Michael Schafer | Complex Casualty Placements

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Risk Placement Services, Inc. Knowledge. Relationships.

Trust and Confidence.

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UPFRONT

NEWS ANALYSIS

The insurtech bandwagon Global insurance companies are seeing sustainable, long-term value in insurtechs, and they’re putting their money where their mouth is

GROWTH IN the insurtech space might have happened later than similar developments in other financial services industries – it reached its peak in 2016 with the launch of 177 insurtech startups – but the drop to 88 launches in 2017 doesn’t mean the insurtech gold rush is coming to an end, according to a recent Deloitte analysis on the sector.

Deloitte found that funding continues to flow into insurtechs – investments in 2018 are on track to meet the $1.83 billion in funds raised in 2017.

Today, several insurance giants have their own investment arms focused on promoting insurtechs that add value to the industry and clients, and have helped usher in a major evolution in the contributions of these tech-

it was going to catch on,” Notaras says. “We started the fund after a lot of the distribution plays had already been created in terms of the aggregators, but at that time, nobody was really talking about that as being insurtech.”

It was only when startups began proposing services aimed at personal lines (Lemonade was one of the fund’s early investments) that people started looking at insurtech as something unique in the insurance landscape. Since then, insurtechs have evolved to touch on commercial lines as well.

“We’re starting to see a lot more companies that are handling commercial,” Notaras says, “and they’re not necessarily re-creating commercial insurance companies.”

Attitudes have also transformed over

“We’re starting to see a lot more companies that are handling commercial, and they’re not necessarily re-creating commercial insurance companies” Martha Notaras, XL Innovate nology companies in recent years. Martha Notaras, partner at XL Innovate, a global insurtech venture capital firm backed by AXA XL, looks back on 2015, when the insurtech space was just beginning to boom.

“Suddenly, people started talking about [insurtech], but it wasn’t quite clear whether

12

time. Notaras notes that in the early days of insurtechs, startups tended to regard existing insurers with contempt. Today, however, technology experts are identifying and addressing some of the limitations facing the industry – whether it’s in data or regulation – and their contributions are being welcomed.

In addition to investing in disruptive insurance models such as Lemonade and Embroker, XL Innovate has also created its own startups in-house, such as New Energy Risk, which uses insurance to enable deployment of renewable energy. In addition, it has invested in data and analytics companies that provide value to insurance applications, such as Cape Analytics, which gathers property intelligence based on AI and geospatial imagery, as well as GeoQuant, which quantifies political risk in real time.

Argo Group is another insurer with its own investment outpost, Argo Ventures, which backs early- and growth-stage startups in financial services and insurance. The fund focuses on insurance technology, risk management, fintech, enterprise software and any other tech solution that has an insurance component to it, according to Oleg Ilichev, head of investments at Argo Ventures.

“Whenever there’s a tech startup that touches insurance, we want to be front and

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INSURTECH FAST FACTS

Insurtechs focused on personal lines have drawn the lion’s share of investment dollars ($5.8 billion) over the past decade

In comparison, commercial lines saw just $1.3 billion worth of investment between 1998 and the first half of 2018

Venture capital funds remain the largest source of insurtech financing, accounting for 91% of investments in the first half of 2018

center on entrepreneurs’ minds,” Ilichev says, adding that for seed-stage companies, Argo Ventures’ experts will be “their eyes and ears and partners in insurance.” For growthstage insurtechs, Argo Ventures helps with continued expansion and figuring out the

the winner,” he says. “I think there are a lot of companies that are just building features and are not really long-term, sustainable, disruptive businesses that are venture backable.”

He adds that brokers need not worry about being replaced by technology. While

“Insurtechs that are actually building software to make the brokers much better at their jobs are going to be the successful approach” Oleg Ilichev, Argo Ventures next iteration of their businesses.

Ilichev says all areas of the insurance value chain are seeing new entrants to the marketplace that are contributing something beneficial, though he notes that not all insurtechs are built for the long term.

“The bigger question is who’s going to be

some insurance products can be delivered directly to insureds, many insurance offerings become bespoke very quickly, depending on the type of class being underwritten.

“We’ve found that the brokers are going to be here to stay,” Ilichev says, “and insurtechs that are actually building software to make

The US remains on top in terms of the number of insurtech startups created, boasting 51% of the companies launched in 2018, trailed by the UK (8%) and India (4%) Source: 2018 Insurtech Investment Trends and Insights, Deloitte

the brokers much better at their jobs are going to be the successful approach.”

By now, it’s clear that insurtech isn’t just a fad, though what shape or form the sector will take in the coming years is anyone’s guess. For future investments, the XL Innovate team is looking for businesses that are addressing pain points in the commercial insurance process.

“One of the defenses has always been that commercial lines are so complex that insurtech won’t make progress into that,” Notaras says, “but we’re seeing that actually there are data and analytics that drive the commercial lines, and also that there are certain operational efficiencies that you can drive into.”

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18/01/2019 4:12:32 AM

UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

EPIC Holdings

Integro Group Holdings

The deal will add more than 400 employees to EPIC’s network across 22 US locations

Gallagher

Preston-Patterson Co.

Preston-Patterson is a Pennsylvania-based retail P&C insurance broker

Gallagher Bassett

HMG-PCMS

HMG-PCMS provides property repair services through a network of independent contractors

The Hilb Group

Mackintire Insurance Agency

Mackintire specializes in the hospitality industry, serving clients throughout Massachusetts

Hub International

Dadgar Insurance Agency; G.P. Barich Insurance Agency

Dadgar is an independent multiline brokerage in New England, while California-based Barich Insurance is an independent P&C agency

Kaplansky Insurance

Burak Insurance

The deal marked Kaplansky’s fourth independent agency acquisition in 2018 and 31st overall

Marsh & McLennan Agency

Otis-Magie Insurance

Otis-Magie offers business insurance, employee benefits and personal insurance products

Risk Strategies

RiskPro Global Partners

RiskPro is a Dallas-based P&C and employee benefits firm

Ryan Specialty Group

Superior Payment Plan

Premium finance firm Superior will become part of RSG subsidiary Stetson Insurance Funding

HyreCar expands coverage to idle cars

Online car-sharing marketplace HyreCar has launched a new insurance product that insures vehicles on its platform, even when they’re not being rented out, boasting premiums that are often lower than traditional car insurance. The solution is designed to replace traditional insurance for drivers who rarely use their vehicles when not renting them out. “With [this product], you would not need personal insurance,” HyreCar CEO Joe Furnari told Forbes.

“What we’ve seen is it’s almost 50% cheaper than having a personal insurance.”

EPIC bolsters its footprint with Integro deal

Insurance broker EPIC Holdings has increased its workforce by more than 400 employees with its acquisition of Integro Holdings. Based in New York, Integro is a specialty insurance brokerage and consulting business with revenue in excess of $150 million. The acquisition will expand EPIC’s diverse insurance distribution platform, particularly in the areas of risk management and middlemarket accounts.

“Joining forces with EPIC allows us to continue offering our clients the highest level of service and expertise, while providing depth and scale to further invest in our combined capabilities,” said Marc Kunney, president of North America operations at Integro.

“I know firsthand what a high-quality group Integro is,” added EPIC CEO Pete Garvey, who helped found Integro before moving on to EPIC. “We can’t be more delighted to have their US team join forces with EPIC.”

14

Marsh tackles the sharing economy

Marsh has launched two new insurance facilities to meet the casualty risks of the sharing economy and autonomous vehicles. The Sharing Economy Insurance Facility provides up to $10 million in dedicated primary auto liability and excess casualty coverage to sharing/gig economy companies in the US, particularly those that provide livery and delivery services. The Autonomous Mobility Insurance Facility offers first-dollar liability and physical damage primary auto liability coverage of up to $1 million, as well as $4 million in exclusive excess capacity for companies that are testing autonomous vehicles.

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PEOPLE Lloyd’s announces new marine initiative

Lloyd’s and six of its market syndicates will begin using supply chain data startup Parsyl, one of the members of the 2018 Lloyd’s Lab insurtech accelerator, to better manage risk for temperature-sensitive classes of business. Lloyd’s will use Parsyl’s Internet of Things quality assurance and risk management solution to offer crafted coverage for sensitive shipments, such as temperaturecontrolled foods and biological pharmaceuticals. Parsyl’s sensors will be placed on the shipments to provide expedited settlement and reduced claims costs, tailored deductibles, and risk mitigation insights.

Sompo increases cyber solutions

Sompo International Holdings has expanded its cyber insurance capabilities with an enhanced product and an expanded suite of risk management services. The enhanced Premier Professional policy now includes coverage for GDPR violations, non-malicious systems failures, unintentional breaches of contract and IT vendor outages, along with extensions for malicious and permanent disabling of IT equipment and social engineering threats. Clients will also receive complimentary access to an expanded set of cyber risk management services.

Chubb addresses out-ofpocket medical costs

Chubb has announced the launch of a new gap supplemental medical plan, designed to reimburse policyholders for out-of-pocket medical expenses not covered by their regular healthcare plans. “The changing healthcare marketplace continues to challenge employers who are looking for efficient and cost-effective benefit solutions for their employees,” said Chubb’s Chris Howard. “As a result, rising healthcare and coverage costs are increasingly being borne by consumers. Through Chubb’s extensive experience and deep industry knowledge, this gap supplement product helps to fill holes in coverage.”

NAME

LEAVING

JOINING

NEW POSITION

Ankur Chokshi

N/A

AXA XL

E&S primary casualty head; head of binding authority and brokerage insurance operation

Byron Clymer

Approach Logic

Lockton Cos.

Chief information officer

Deanna Fidler

T. Rowe Price

FM Global

Senior vice president and chief human resources officer

John Gingrich

Ameriprise Auto & Home Insurance

SageSure Insurance Managers

Senior vice president of sales

Matt Harvey

Aon

Willis Towers Watson

Senior vice president of international property

Richard Houghton

Co-Operative Insurance Society

Hyperion Insurance Group

Interim group CFO

Michael Kerner

Everest Re

Munich Re Specialty Insurance

CEO

Mark Lyons

N/A

AIG

Executive vice president and CFO

Andrew Maher

Markel

AXIS Insurance

Senior cyber underwriter

Travis Mills

US Army

CBU Benefits

Owner

Tom Rowley

Brit Insurance

Willis Towers Watson

Senior vice president of North American property

Kimberly Smid

QBE

AXA XL

E&S excess casualty business head

Lockton names new CIO

Lockton Cos. has announced the appointment of Byron Clymer as its chief information officer. In his new role, Clymer will oversee strategic information technology initiatives for the company. Clymer brings 25 years of experience that spans the spectrum of IT. In 2016, he founded Approach Logic consulting services to help business leaders navigate the IT industry. Prior to that, he served as CIO for FreightQuote.com.

“This is an important time in Lockton’s history as we continue to invest in technology solutions to better meet the needs of our clients and our associates,” said Lockton chief digital officer Said Taiym. “[Byron’s] outside perspective and solutions-oriented approach in leading large-scale IT transformations and initiatives make him the right person to help fuel Lockton’s growth.”

Army veteran pivots into insurance

Army veteran Travis Mills, who was critically injured when he stepped on an improvised explosive device in Afghanistan, recently became one of three owners of CBU Benefits, a Maine-based company that works with insurance brokers and agencies to provide supplemental health options. With Mills on board, CBU Benefits aims to connect with families that are unaware of the benefits of supplemental insurance to ensure they have financial protection when faced with unexpected events.

“I’m living proof that things can happen that we just don’t see coming,” Mills said. “Nobody expects to step on a bomb. But supplemental insurance can protect you against life’s unexpected events.”

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18/01/2019 4:13:22 AM

UPFRONT

WORKERS’ COMP UPDATE

Are reduced rates sustainable?

The trend of workers’ comp rate reductions looks set to continue in 2019 – but how long can it last?

example of a wearable device that walks the fine line between monitoring and privacy. It enables employers to ensure employees are working in a safe environment, which Bentley describes as a “positive and caring” approach.

“Another trend we’ve seen is that employers have started to really value their employees,” he says. “They’re treating their employees more like assets and benefits of the company, and are therefore motivated to ensure their safety in the workplace. This is an important behavioral shift that’s impacting claim frequency and severity.”

“The margins continue to narrow, but it’s not happening as quickly as some people thought it might” Business owners across the US are cheering as they watch state after state approve reductions in workers’ compensation rates, driven by improvements in workplace safety and enhanced risk management programs.

“The downward trend in claim frequency and severity has been going on for more than 20 years now,” says Jeremiah Bentley, vice president of marketing and customer engagement at Texas Mutual. “Going into 2018, some people thought the situation might moderate slightly, but that hasn’t been the case. We

NEWS BRIEFS

continue to see premium rates dropping in lots of states, and we expect this trend to continue in 2019.”

One factor influencing claim frequency and severity is technology – employees are being removed from dangerous or risky scenarios and replaced by technology. Wearables are another big tech trend that’s improving workplace safety. Bentley points to the MākuSafe wearable band, a Fitbit-type wearable device that captures environmental data and hazards to improve workplace safety, as a good

Ohio man found guilty of $425,000 workers’ comp scam

Ohio business owner John R. Cacaro was recently sentenced to six months in federal prison and a $10,000 fine after he was found guilty of scamming the state’s Bureau of Workers’ Compensation [BWC] out of more than $425,000. Cacaro, the owner of a payroll services company, was convicted after BWC and IRS investigators uncovered his scheme to short the BWC on insurance premiums he received from workers. According to the IRS, Cacaro used the scam to fund, among other things, an RV and a vacation home in Florida.

16

However, as more employers engage in effective risk mitigation and loss trends continue to fall, it could “threaten the underwriting profitability” of the workers’ compensation industry, Bentley says.

“At some point, we could end up with a situation where the industry is writing at an overall underwriting loss, but right now there’s so much capital and so many opportunities for investment that companies are able to withstand those pressures,” he says.

“The margins continue to narrow, but it’s not happening as quickly as some people thought it might.”

JenCap snaps up workers’ comp broker

JenCap Holdings has entered an agreement to acquire specialty workers’ comp broker Risk Innovations, a privately held wholesale brokerage that was founded in 2002 by Bruce Peddle. “Risk Innovations has specialized in workers’ compensation since its inception and was a strategic target for JenCap,” said JenCap president and CEO John F. Jennings. “Bruce Peddle and his team have built one of the few highly successful wholesale distribution platforms for workers’ compensation, and we are excited to help them expand that operation within JenCap.”

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Q&A

Shahin Hatamian Senior vice president of product management and strategy MITCHELL INTERNATIONAL

Years in the industry 25 Fast fact Before moving into workers’ comp, Hatamian worked in product management for several large tech companies, including Toshiba and Silex

The pressure to get tech-savvy What are some of the recurring pain points in the workers’ compensation industry?

As pressure mounts to use new tools, vendors and technology to improve efficiencies, carriers continue to struggle with deploying these solutions fast enough due to constraints on IT resources and the need to integrate disparate solutions to make them work seamlessly for their operations. Some vendor consolidations are occurring, which, in the coming years, will streamline the integration of these point solutions and make adoption easier.

How is technology changing the workers’ compensation industry?

Automation and application of standard treatment guidelines to nurse decisions on a prospective basis, as well as to medical bills on a retrospective basis, is helping with both providing the appropriate care for the injured workers and improving carriers’ loss cost exposures. Another example is the use of electronic payments for both providers and injured workers. The new payment technologies, such as virtual cards, are replacing costly and lengthy paper processes, which in turn improve provider and patient satisfaction.

Can you tell us more about Mitchell’s workers’ compensation claims management software?

At Mitchell, we subscribe to the notion of ‘the whole is greater than the sum of its parts.’ We even have

State workers’ comp rankings revealed

The Oregon Department of Consumer and Business Services has released the 2018 results of its biannual Workers’ Compensation Premium Rate Ranking study, which ranks all 50 states and Washington, DC, based on premium rates.

Oregon moved from the seventh lowest to the sixth lowest state for workers’ comp premium costs; only Utah, West Virgina, Arkansas, Indiana and North Dakota had lower premiums. The states with the highest premiums were New York, California, New Jersey, Alaska and Delaware.

an internal acronym for it, WIGS, which is part of our daily vernacular. While bill review remains at the core of our offerings, to better serve our clients, we have assembled a broad set of technology and services solutions, including proprietary cost containment methodologies, medical management solutions, tech-enabled business process solutions, FROI/SROI reporting offerings and several others. To make sure the clients don’t bear the burden of integrating these solutions on their own, and to create additional value above that of each solution, we let the ‘WIGS strategy’ drive our technology integration roadmap.

What tips do you have for workers’ compensation brokers as the industry continues to evolve?

I’ve come to appreciate how brokers represent the interests of self-insured employers. I’ve learned how they collect performance data from various carriers and TPAs to custom-tailor the appropriate program to the needs of a specific employer. However, in my assessment, the performance data collected is very high-level, and the offering is often ‘all or nothing’ at the TPA level.

Being a technology and services solution provider, I know there are many different elements and levers that a payer can utilize to truly form a program that meets their needs properly. I would encourage brokers to work with solution providers like Mitchell to shape the optimal choice for the employers.

Pennsylvania approves mid-year filings

In Pennsylvania, two mid-year workers’ compensation loss cost filings that went into effect January 1 will result in a 14.74% reduction in overall loss costs.

“Because information in the November 2017 filing was used in setting rates in place since April 1, 2018, it’s possible some businesses paid higher rates than they should have since that time,” said Insurance Commissioner Jessica Altman. “Therefore, I’m urging all workers’ comp insurers […] to reimburse any businesses that have overpaid as a result of the November 2017 filing.”

Fentanyl deaths up, insurance rates down

Washington state has seen an increase in Fentanyl-related deaths, but its workers’ compensation rates have decreased, according to a report in the San Juan Journal. Employers in the state will pay 5% less for workers’ compensation insurance in 2019, thanks to a decrease in workplace injuries and better returnto-work programs. However, an increase in illicit fentanyl overdoses across the state remains a challenge for workers’ compensation insurers and partnering healthcare facilities.

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UPFRONT

TECHNOLOGY UPDATE NEWS BRIEFS Hartford positions itself as a hub for insurtech

The city of Hartford, Connecticut, is shaping up to be America’s center for insurtech. Not only is it home to the Hartford InsurTech Hub, a program that hosts startups from around the world, but according to PwC, several insurance companies operating in the area have pushed for significant initiatives, including Travelers’ new digital tool for injured workers, Voya’s expansion of its retirement plan administration business and Hartford Steam Boiler’s new innovation lab. In addition, multinational Indian IT and consulting company Infosys opened a branch in Hartford in December, with plans for labs dedicated to underwriting and claims fraud.

Trak Global Group accelerates with North America deal

UK-based telematics firm Trak Global Group [TGG] is poised for a significant presence in the North American market following its acquisition of Ontario-based Intelligent Mechatronic Systems [IMS].

Known for its DriveSync connected car platform, IMS has developed a global portfolio of approximately 200 patents and patents-pending across a range of connected car technologies. Following the merger, the company will realign international activities to offer connected insurance under the IMS brand and services to the connected car market under the TGG name.

LexisNexis reveals new fire data scoring system

LexisNexis Risk Solutions has launched the LexisNexis Fire and Disaster Response Score to help insurers more accurately rate and underwrite fire responses. The new data score

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incorporates advanced geospatial technology, historic fire department responses and loss data, and true drive times from responding fire stations and other data sources. “Fire risk … is frequently rated using less precise methods of investigation, leaving insurers vulnerable to losses through inaccurate rates,” said LexisNexis Risk Solutions’ George Hosfield. “The LexisNexis Fire and Disaster Response Score … [delivers] a more accurate local fire response score for underwriting.”

CoverWallet launches platform for commercial agents

Insurtech firm CoverWallet has launched CoverWallet for Agents, a platform that gives agents a fast, simple and efficient way to provide commercial insurance to businesses. CoverWallet for Agents provides instant quotes, online bindable policies and real-time proof of coverage for several lines of business, including general liability, workers’ compensation and professional liability. “Agents are an integral part of small-business insurance, and we’re making it easy for them to leverage technology without needing to build their own [platform],” said Aman Khaira, CoverWallet’s VP of product.

Duck Creek partners for AI-based fraud protection

Through its Partner Ecosystem program, Duck Creek Technologies has forged a deal with FRISS, a developer of AIpowered risk and fraud detection for underwriting claims and SIU, to enhance its P&C insurance software. Duck Creek users can now rely on the FRISS Score to implement a standardized rating to automatically detect and rank fraud.

“We’re very excited to now be able to offer our expertise and modern, AI- and machine-learning-powered solutions to Duck Creek’s customers,” said FRISS CEO and co-founder Jeroen Morrenhof.

Moving beyond legacy The shift from an inside-out to an outside-in business model remains a persistent challenge The insurance industry has a foot in two worlds. One foot is in the past, tied down by legacy systems and historic data, while the other is in the future, investing heavily in new technology and digital capabilities. As a result, the body in the middle is having to work harder and harder to maintain balance as disruptive forces drive insurance innovation.

According to Brian Wallace, chief technology officer and portfolio build leader for global insurance at DXC Technology, the power in the insurance relationship has shifted from the seller to the buyer, forcing insurance companies to shift from inside-out business models to outside-in business models.

“This used to be an industry where the power rested with the seller,” Wallace explains.

“The insurer would manufacture the products it wanted the market to buy and then it would distribute those products through a network of intermediaries. In today’s world, the power has shifted over to the buyer. Insurers are having to react to customer preferences and create products consumers want to buy rather than products the industry wants to sell.

“The inside-out business model was all about product innovation,” he continues. “It was so complex that only sophisticated brokers or advisors could understand it, hence the seller orientation. In contrast, the outside-in business model is a more customer-centric approach, based around goals, needs and a much simpler set of insurance products.”

The way insurance firms use data has

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changed in tandem with this business-model shift. In the past, data was all about transaction processing, operational efficiency, systems of record and back-office capabilities. Today, Wallace says, it’s all about the customer experience: tapping into outside data sources and using predictive modeling to anticipate customer needs.

“A lot of the innovation that’s happening is no longer being created inside the traditional insurance enterprise” Legacy infrastructure is often described as one of the shackles holding the insurance industry back from a digital future. Some of the key challenges insurers face include eliminating duplications, cutting down legacy debt and simplifying IT operations to make business output more customer-centric.

“The way of the future is to move away from line-of-business siloed applications to platforms,” Wallace says. “A lot of the innovation that’s happening is no longer being created inside the traditional insurance enterprise. It’s being created by the tech giants and the startup insurtech community. Therefore, incumbent insurers need to transform from the technology creator and steward to the integrator, aggregator and consumer. They need to go out and find technology solutions that they can integrate seamlessly into their operational fabric in order to drive business and gain a competitive edge.

That, in some ways, is the new role of internal IT.”

Q&A

Jason Verlen Senior vice president CCC INFORMATION SERVICES

Years in the tech industry 23 Fast fact CCC’s connected claims process allows insurers to apply AI to accident photos for more efficient estimating and to use telematics data to detect accidents

Transformation through telematics How is CCC helping to revolutionize auto insurance?

CCC is a software and data services company that supports its clients throughout the life cycle of a vehicle. Our solutions empower insurers, auto repair shops, OEMs and parts suppliers to leverage the power of AI, photo analytics, mobile and IoT to improve their business performance and deliver new, better experiences to their customers.

How is telematics making auto claims more efficient?

Telematics is transforming insurance, driving significant process improvements and efficiency gains. And, just as important, telematics is allowing insurers to provide the type of services that drive lifetime customer loyalty. Insurers who pursue telematicsenabled claims can see improvements in the speed, accuracy and efficiency of all major process touchpoints, including repair versus total loss and method of inspection decisions, estimate creation, and parts selection.

How can telematics help to reduce loss costs in the auto insurance industry?

With the injection of telematics and AI into claims, insurers are making key decisions more quickly and earlier in the process.

For example, when a crash is detected through telematics, it’s immediate, and if a policyholder shares just one photo with the carrier using our Smart Total Loss tool, the carrier can determine from the AI in real time and with a high degree of accuracy if that vehicle is a total loss or repairable. That one decision can save the carrier hundreds of dollars in unnecessary tows and rental car costs and can cut several days from the total cycle time.

How open are American drivers to telematics and data sharing?

Our view at CCC is that drivers see value in sharing their driving data when they know it’s safe and when it can benefit them. Policy discounts hold some appeal, but what we see playing out is that the use case for telematics in claims is powerful. It can help drive insurer efficiency, create more consistent claims outcomes and help contain costs.

How do you expect this market to evolve?

Very quickly. I think we’ll see telematics and AI create an experience and a knowledge base that will prove useful when autonomous vehicles start coming in all different modes and configurations. Carriers that embrace telematics now will be ready to price that risk and also be ready for different modes of transportation as a service as they develop.

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18/01/2019 4:14:32 AM

UPFRONT

OPINION

GOT AN OPINION THAT COUNTS? Email iba@keymedia.com

A harmful expansion A wave of exclusions that expand what’s classified as ‘intentional harm’ have devalued the purpose of liability insurance, writes Peter Kochenburger INSURERS HAVE long excluded coverage for intentionally caused harm. The reasons are well understood: the moral hazard of minimizing the financial consequences associated with intentionally causing bodily injury or property damage, as well as the broader public policy of punishing wrongdoers or at least holding them fully responsible for their actions. Now, though, insurers are expanding intentional harm and other exclusions beyond these traditional public policy concerns with language that sweeps in and excludes potentially large swaths of negligent conduct.

The traditional ISO exclusion captured the moral hazard concerns well. Until 2000, the ISO H0 03 (homeowner’s) form excluded liability coverage for “bodily injury or property damage which is expected or intended by the insured.” With a focus on the harm intended rather than whether the act itself was intentional, this language is tailored to exclude harm intentionally caused by a specific insured – “the insured” rather than “an insured.” This means insureds are protected for their negligent actions and claimants have access to compensation if they prevail, fulfilling two traditional functions of liability insurance.

Unfortunately, it appears most insurers have abandoned this language and, with seemingly little fanfare, now employ clauses that could exclude claims alleging reckless or straightforward negligence. Since 2000, ISO’s intentional harm provision in its home­owner’s policy excludes “bodily injury or property damage which is expected or intended by an insured, even if the resulting [injury] is of a different kind, quality or degree than initially

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expected or intended.”

This additional clause can transform an exclusion for intentional harm into one for negligence. For example, assume a young teenager shot his BB gun at a friend, intending only to scare him, but instead hit and blinded him.

Under the traditional ISO exclusion, assuming a court believed he did not mean to hit his friend, the harm caused was not “expected or

the possibility of victim compensation for egregious acts such as shootings or sexual abuse.

Most insurers now use this expanded ISO exclusion or variations of it. In 2014, several students and I reviewed homeowner’s and auto policies of the top 10 insurers in Missouri and Nevada; all but State Farm employed an expanded intentional harm exclusion. We’re now doing a more expansive study, and it appears that the large majority of insurers not only continue to use expansive intentional harm exclusions, but are adding additional provisions that also could exclude negligently caused harm, such as exclusions for actions that might be considered “criminal” or “malicious.”

These provisions go far beyond the purposes of excluding intentionally caused harm and, in some instances, are worded so broadly (or poorly) that they could eliminate coverage for many types of claims and conduct. These exclusions devalue the purpose of liability insurance and are contrary to how policyholders, regulators and producers have traditionally understood intentional harm provisions.

“Negligent acts are now excluded, policyholders are left unprotected, and the victim’s compensation is dependent on the defendant’s financial resources, if any” intended.” Further, if the lawsuit also named the young man’s parents under a negligence theory, their actions would be separately considered in applying the exclusion.

ISO’s post-2000 language could easily exclude the teenager’s negligence, with the “resulting harm” characterized as a “different kind, quality or degree than initially expected or intended.” In addition, the son’s now presumed “intentional harm” would be attributed to the parents, as harm considered intentional by one insured excludes coverage for every insured, regardless of their intent.

The result: Negligent acts are now excluded, policyholders are left unprotected for their carelessness, and the victim’s compensation is dependent on the defendant’s financial resources. The substitution of “an insured” for “the insured” is crucial, as it can eliminate

So, what can be done? It’s hard to imagine insurers competing by offering better intentional harm exclusions. Even if policyholders did read their insurance policies – a big if – it’s unlikely they would be able to distinguish between various exclusions.

There is another solution recognized and understood by the industry: for regulators to use their traditional authority and not approve exclusions that distend or greatly expand intentional harm exclusions beyond their traditional rationale, to the detriment of policyholders, victims and society.

Peter Kochenburger teaches insurance law at the University of Connecticut Law School. He is a NAIC consumer representative, was elected to the American Law Institute and is a graduate of Harvard Law School.

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18/01/2019 14/01/2019 4:15:00 9:16:49AM PM

PEOPLE

INDUSTRY ICON

STRENGTH AND STABILITY As head of the London & International Insurance Brokers’ Association, Christopher Croft leads an organization that is poised to influence the global center of insurance in the midst of seismic, market-moving change

WHEN HE came into his new role as chief executive of the London & International Insurance Brokers’ Association [LIIBA] nearly three years ago, Christopher Croft had big shoes to fill – his predecessor held the job for 36 years. Determined to represent the voice of the broker in market discussions, as well as conversations with governments and regulators, Croft has presided over a gradual evolution in the association during a period that is proving to be tumultuous. The litany of challenges facing the global center of insurance today includes rumblings of trouble at Lloyd’s of London and the fate of Brexit, among other transformations that are affecting the business operations of insurers around the world.

“I never saw, in my coming into LIIBA, that there was a requirement for revolution, but I think we have evolved LIIBA over the three years into a more prominent organization, particularly in its relationship with government,” Croft says, highlighting Brexit as a major focus for the association. “There’s nothing like a crisis of uncertainty to make people value their trade associations.”

Croft’s previous positions primed him to face a room full of government representatives and regulators. Before taking the helm at LIIBA, he worked for the London Market Group [LMG], a central body that represents

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the city’s specialist commercial insurance and reinsurance broking and underwriting communities. One of his key projects at LMG was the first London Matters report, released in 2014, which collected data on London’s position in the global insurance industry.

Prior to that, Croft spent a decade in finan-

PPL; in his first year at LIIBA, the association signed a contract with a software supplier and secured the commitment of board members to contribute financially to the project.

“PPL adoption is absolutely something that we view as a success at the moment,” Croft says.

“We now have 60 brokers signed up, [from] 28

“I think we have evolved LIIBA over the three years into a more prominent organization, particularly in its relationship with government.

There’s nothing like a crisis of uncertainty to make people value their trade associations” cial services regulation; he began his career by working on the privatization of rail systems – a job that gave him a solid foundation for working with government stakeholders.

An achievement 30 years in the making Looking back on his career, a key milestone for Croft was the launch of the Placing Platform Limited [PPL], which gave brokers and insurers the power to quote, negotiate, bind and endorse business digitally. While at LMG, Croft filled out the form to incorporate

at the beginning of [2018], so we’ve more than doubled the number on the platform.”

After three decades of discussions about implementing something like this, Croft is elated to finally have implemented the technology that will open new doors for brokers and the insurance market.

“Lots of people talk lyrically about artificial intelligence and Big Data and how these things may come and revolutionize insurance,” he says. “I’m sure there is the potential for that to happen, but that could only happen if

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PROFILE Name: Christopher Croft Title: Chief executive Company: London & International Insurance Brokers’ Association Based in: London Years in the industry: 24 Career highlights: Taking the lead on LMG’s first London Matters report in 2014 and contributing to the launch and adoption of an electronic trading capability for the London market

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PEOPLE

INDUSTRY ICON

the market actually started using computers to support its main transactions, and PPL is achieving that.”

Besides working on market adoption of PPL, other priorities that will continue to be top of mind for LIIBA in the coming year involve working with members and the Financial Conduct Authority on the Broker Market Study, as well as underscoring the need for contract continuity in light of the UK’s pending divorce from the European Union.

“Our primary work on Brexit all the way through is to try and drive to a certain model

doesn’t necessarily mean that’s the way it’s always going to happen.”

New technology might change the way that conversation happens, and that’s already evident in some of the developments LIIBA’s members have witnessed. Croft notes that brokers with more access to data have become better at pricing risk than underwriters.

“What I see is a development in the way that the demand and supply for capital to mitigate risk will evolve,” he says, “but there will always be a need for someone to act as the agent for the client because what our members do goes

“There will always be a need for someone to act as the agent for the client because what our members do goes far beyond a simple insurance service” that would allow EU clients still to be able to access that expertise and capacity in London so that they can still access the insurance they need,” Croft says.

The broker of the future No one can predict how Brexit will play out, just as it’s difficult to say with certainty what the broker’s role will entail in 10 or 20 years.

However, Croft believes it’s a mistake to think about the broker solely in terms of what’s happening in insurance right now.

“We live in a capital market where we have people on one end who have a demand for capital to help mitigate their risks, and they want to be able to access that capital in certain circumstances,” he says. “We have capital providers on the other end who want to be able to use their capital to provide that support and also potentially make a return on it. At the moment, that matching of demand and supply is done by a broker and an underwriter having a conversation in London and drawing up an insurance policy, but that

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far beyond a simple insurance service. When they go and have conversations with clients, it’s about establishing the full extent of the client’s risk exposure and then advising them how best to mitigate that, and an insurance purchase will only be part of the program.”

He points to the many other services brokers bring their clients, including pinpointing their insurance needs and providing expert placing capabilities – a critical skill at a time when it’s not atypical to see global programs accessing multibillion-dollar cover that’s spread across 50 or 60 insurers.

“To know how to do that and to know the appetite of all those insurers is a level of expertise that’s going to be difficult for others to replicate,” Croft says, adding that while the market will likely see new entrants that have new ways of doing things, he’s confident that brokers will continue to occupy an important position in the insurance distribution chain.

“We shouldn’t underestimate the extraordinary level of intellectual capital that goes into complex commercial insurance.”

LIIBA AT A GLANCE

FOUNDATIONS With a history that dates back to 1910, LIIBA represents the interests of Lloyd’s insurance and reinsurance brokers operating in the London and international markets

MISSION LIIBA aims to ensure that London remains the world’s leading insurance market by improving its competitive position

PREMIUMS LIIBA members are engaged in the placement of $67 billion worth of premiums in the London market and another $24 billion across the world

MARKET SHARE LIIBA members account for more than 95% of the business in the London market

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17/01/2019 PM 18/01/2019 10:34:10 4:15:46 AM

SPECIAL REPORT

TOP SPECIALIST BROKERS

2019 Get to know 50 market experts who consistently go above and beyond to help retail agents secure coverage for niche clients and difficult-to-place risks CONSTRUCTION, SPORTS, transportation and hospitality are just a few of the many industries that require specialist insurance knowledge – and thanks to the 50 wholesale brokers on the following pages, retail agents and organizations in these industries have experts to turn to when they’re looking to protect their assets and their bottom line.

With specialized expertise in a particular line of coverage or market, wholesale brokers are a valuable resource for retail brokers seeking expert insurance advice for their clients’ unique and difficult-to-place risks. Nominated by their agent partners and colleagues, the 50 specialist brokers on the following pages are proven leaders in their field. Each one has dedicated his or her career to a particular specialty in order to offer brokers and their clients expertly tailored coverage.

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TOP SPECIALIST BROKERS INDEX COMPANY

NAME

PAGE

COMPANY

NAME

Ashcraft, Pat Austin, Masha

Towerstone Inc.

33

Faulkner, Jodie

Hull & Company

28

CRC Insurance Services Inc.

32

Goldman, Michelle

RT Specialty

29

Bandy, Stacy

Burns & Wilcox Brokerage

30

Barnes, Alistair

AmWINS Brokerage of Texas

46

Hamilton, Jim

CRC Environmental Brokerage, a division of CRC Insurance Services

34

Bauldrick, Rahmad

Burns & Wilcox

46

Biersch, Curt

CRC Group

32

Hayes, Joseph

Wholesale Trading Insurance Services LLC

48

47

Huang, Jeremy

Worldwide Facilities LLC

40

44

Hunter, Lori

Worldwide Facilities LLC

41 41

Blumberger, Jeffrey Jimcor Agencies Boatman, Sheila

U.S. Risk

PAGE

Campbell, Brenda

Alive Risk, a division of All Risks Ltd.

48

Jones, David

McClelland and Hine, a division of Worldwide Facilities

Choo, Rodney

Risk Placement Services Inc.

38

Kiefer, Ron

Risk Placement Services Inc.

32

Collins, Philip

Worldwide Facilities LLC

41

Lang, Richard

All Risks Ltd.

34

Dauth, Michael

Breckenridge Insurance Services

42

Manduca, Richard

NIF Group Inc.

44

De Feo, Michael

NIF Pro, a division of NIF Group

36

McCann, Terry

RT Specialty

36

DeGirolano, Tabitha

All Risks Ltd.

47

Founders Professional

McCormack, Ryan

RT Specialty

30

Dion, Mark

28

Donovan, Matt

Worldwide Facilities LLC

40

McKenzie, Laurie

AmWINS Program Underwriters Inc.

38

DuBose, Brent

Genesee General

36

Merris, Ben

CRC Insurance Services Inc.

28

Evans, Casey

Risk Placement Services Inc.

35

Moore, Ryan

AmWINS Insurance Brokerage of California

38

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2019

PHIL WILDER Express vice president and team leader AMERICAN SPECIALTY INSURANCE AND RISK SERVICES SPECIALTY: SPORTS

As a sports insurance specialist, Phil Wilder has a thorough understanding of the exposures and risks specific to youth sports. He works diligently to stay updated on this ever-evolving area of liability, carefully educating clients not only on the types of coverage available, but also on the different areas of expertise present in the market.

Wilder’s ability to underwrite based on current risk conditions and propose risk mitigation solutions allows him to go above and beyond what most brokerages’ underwriters have to offer. Wilder and the rest of the American Specialty team understand the value of customer service to both the retail agency and the end user: the policyholder.

COMPANY

NAME

PAGE

Nagel, Bill

PMC Insurance Group

42

Pedersen, Timothy

Brown & Riding

34

Posner, Heather

Burns & Wilcox

27

Reeves, Craig

Worldwide Facilities LLC

41

Associate vice president, director of high-net-worth insurance

Reiner, Jonathan

RT Specialty

49

BURNS & WILCOX

Riske, Ryan

Worldwide Facilities LLC

41

Rodriguez, Lori

AmWINS Access Insurance Services LLC

42

Rozzi, James

Risk Placement Services Inc.

43

Ruth, Steve

Genesee General

33

Schafer, Michael

Risk Placement Services Inc.

44

Senger, Kerri

Breckenridge Insurance Services

48

Shepard, Steve

Burns & Wilcox

46

Shirazi, Jon

RT Specialty

39

Short, Jeffery

Brown & Riding

47

Vassallo, Brian

Worldwide Facilities LLC

40

Walfish, Barry

Jimcor Agencies

30

Wilder, Phil

American Specialty Insurance and Risk Services Inc.

27

HEATHER POSNER

SPECIALTY: PRIVATE CLIENT

Heather Posner got into private client insurance in a relatively unique way: “I was working for Progressive Insurance, which had a strategic partnership with national brokers who handled this type of client,” she says. “At the time, we had no high-value product to sell to these brokers and their clients … This work led me to spending time in multiple cities a week with nearly 10 private client offices, where I learned a lot about the product needs of this segment, the needs of the brokers and clients, as well as the need for

creativity to place a program.”

Working in the private client space requires Posner to think critically about what type of policies, risk management and education could help prevent each client from suffering a loss. She also stays on top of technology, cyber risks, shared economy trends, travel and unique lifestyle trends to understand how these could potentially harm her clients.

“I enjoy educating people on how to protect themselves,” she says, “not just from property risks like theft or fire, but from other important risks, such as how non-weather-related water risks are realistically their largest property exposure.

I am passionate about educating them on how to not just protect their property and assets, but, most importantly, on how to keep their families safe.”

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SPECIAL REPORT

TOP SPECIALIST BROKERS

MARK DION Vice president and professional liability practice leader FOUNDERS PROFESSIONAL SPECIALTY: LAWYERS’ MALPRACTICE

Armed with an extensive background in all areas of professional liability, Mark Dion specializes in lawyers’ malpractice.

He started his career as a lawyers’ malpractice underwriter with a nationwide program focusing on the Northeast territory. After three years of underwriting, he transitioned to the wholesale side, retaining his focus on lawyers’ professional liability risks.

Today, as head of the professional liability practice at Founders Professional, Dion focuses on coverage for law firms in the Northeast, as well as E&O coverage for miscellaneous classes of business. “Every day and every submission is different,” he says, “from law firms with large losses to retro date repairs to runoff stand-alone tails (ERPs). Knowing my carrier partners’ appetites really helps me focus on the markets that want to write that specific account and not send risks to the markets that have no interest.”

Dion is able to stay attuned to developments in the space – from changes in underwriting guidelines to new carriers and programs popping up on the scene – through his solid relationships with underwriter and carrier partners.

Together, they publish monthly articles written by brokers specializing in various unique practice areas.

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BEN MERRIS Senior vice president, director – public entity CRC INSURANCE SERVICES SPECIALTY: PUBLIC ENTITIES AND HIGHER EDUCATION

Before deciding to specialize in public entities, Ben Merris was working in a training program, weighing his options for a wholesale production role and considering general casualty. But the program gave Merris ample exposure to the public entity market and pool administration, which convinced him to stay on this path.

“The ability to specialize in a market

JODIE FAULKNER Broker/underwriter HULL & COMPANY SPECIALTY: CANNABIS

Jodie Faulkner has dedicated the past 10 years of her career to learning about and strategically insuring the cannabis market, from its infancy stages in Colorado to its current nationwide reach.

segment that ostensibly wasn’t going to materially change anytime soon, as well as the additional level of complexity involved with the reinsurance placements and administration of the pool, were more attractive to me,” he says. “It helps that there is a strong educational environment within the public entity segment, which allows for a continuous conversation about what’s going on.”

For Merris, working with public entities has led to satisfying opportunities to impact the local community: His efforts to help insureds achieve significant savings has translated to improved outcomes, such as better pay for teachers at a school or a new piece of machinery for a municipality.

Tactful in securing E&S markets and in battling the volatile political atmosphere surrounding the industry, Faulkner has expertly handled the changes and challenges in the cannabis market, managing a thriving book of business and effectively positioning herself as a guru in the industry. Her success has inspired her younger colleagues to work hard and find a niche in the ever-competitive insurance industry.

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2019

MICHELLE GOLDMAN Executive vice president RT SPECIALTY SPECIALTY: CAT PROPERTY

While practicing as a lawyer, Michelle Goldman shadowed a broker friend for a day; 21 years later, she’s an executive vice president at RT Specialty, where she specializes in CAT property insurance and

has become an expert at understanding and finding coverage for very hard-toplace property risks, including beachfront properties, builders’ risk and earthquake or flood.

Throughout her career, Goldman has helped to open new markets that she negotiated with carriers, and she and her team also actively work with MGUs to build out new programs.

“I am very fortunate that I can learn about different industries through just working on an insured’s property account,” she says. “I learn about woodworking, underground mining, retail, hospitality … it is endless. I quite often have to visit the site; I have been in an underground coal mine, on a boat pilot’s site in the middle of the Mississippi, at a groundbreaking in Disney World for a new hotel – the list goes on.”

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SPECIAL REPORT

TOP SPECIALIST BROKERS

STACY BANDY Managing director BURNS & WILCOX BROKERAGE SPECIALTY: CONSTRUCTION

Stacy Bandy has 28 years of experience in the insurance industry, including 22 years as a wholesale broker. Her book of business is made up of all things

construction: general liability/excess/ environmental, as well as habitational, manufacturers and distributors, residential and commercial general contractors, sub-contractors, wraps and project-specific.

Bandy found construction to be a natural fit after working with retailers who were heavily focused in the space early in her career. “One of the key factors to staying current on all the changes in the marketplace is attributed to the relationships I have built with my underwriters and retailers,” she says. “Another key to staying current is by networking with your colleagues and counterparts, as well as attending conferences and workshops.”

The construction space offers brokers many challenges, which keeps things exciting for Bandy. “No account is the same, and every day is unpredictable,” she says. “The markets will continue to modify their terms and conditions, as well as their appetites for classes of business they want to entertain. There is never a dull moment in the day of a casualty wholesale broker.”

2019

BARRY WALFISH Vice president of underwriting JIMCOR AGENCIES SPECIALTY: NEW YORK HARD-TO-PLACE RISKS

A second-generation specialty broker, Barry Walfish puts a creative spin on hard-to-place risks within New York. His expertise has been an invaluable asset and has helped Jimcor’s Long Island office stand apart from the competition.

“Barry enjoys sharing his knowledge with our team, his clients and anyone eager to learn,” a colleague says. “We appreciate all he does to make the experience of placing New York business even more enjoyable.”

For Walfish, the most exciting aspect of working in the specialty marketplace is the diverse nature of the clients and the challenge of finding insurance solutions for new and emerging business and technologies. “I think the creative process needed keeps me energized and excited to come to work every day,” he says.

RYAN MCCORMACK Executive vice president, property division RT SPECIALTY SPECIALTY: REAL ESTATE

A former professional basketball player in Europe, Ryan McCormack first entered the insurance industry with Aon, where he worked for three years.

After joining RT Specialty’s casualty team, McCormack switched to the property division under the suggestion of his office’s president. “I was given great advice by a friend, who said in that property, you will always be able to play on the primary layer – and they were 100% right,” McCormack says.

As a wholesaler, McCormack knows the importance of picking up the phone and chatting with agents and markets, which allows for an open dialogue about what trends are emerging and what direction

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the overall market is headed. “The most exciting part of our business is the constant competition,” he says. “To try day in and day

out to put the best product on the table, along with a market that can change trends on a daily basis, makes it fun.”

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SPECIAL REPORT

TOP SPECIALIST BROKERS RON KIEFER Senior vice president RISK PLACEMENT SERVICES SPECIALTY: PROFESSIONAL LIABILITY

Drawing on more than 20 years of experience, Ron Kiefer is able to perform insurance miracles to place professional liability coverage for some of the toughest accounts around.

“I chose professional liability early in my career because there was a need and opportunity at the time within the industry for someone to learn and understand all of the various professions within the professional liability space,” Kiefer says. Today, he and his team handle nearly $40 million in premium annually.

Unlike some areas of insurance, professional liability is a dynamic market in terms of emerging risks and the need to develop new solutions to address those risks.

Kiefer maintains constant dialogue with underwriting and claims partners to see how new risks and trends play out in real time. He also participates in many face-to-face client meetings so he can learn directly about the issues facing their industries and organizations.

“Change is happening fast in the professional liability space,” he says, “and it’s exciting to be part of it.”

MASHA AUSTIN Broker CRC INSURANCE SERVICES SPECIALTY: PROPERTY

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In the Texas Gulf Coast, managing insurance costs and terms can be overwhelming, so Masha Austin’s expertise in property has been invaluable for her partners and clients. She has demonstrated the need for creativity in tailoring property policies to meet the specific needs of each account, effectively correcting the misperception of cookie-cutter risks.

Prior to Hurricane Harvey, Austin helped develop several CAT products for flood that ended up saving many real estate clients. “When Harvey hit the Gulf Coast, Masha was the first to call and offer her assistance, knowing that we had many clients who were likely affected,” an industry peer says. “I’ve personally worked with Masha for nearly 10 years, and [she’s the only] broker who has always responded in the same day, even if on a weekend. Her ability to not quit until a solution is found sets her apart from the rest of the property brokers in the marketplace.”

CURT BIERSCH Executive vice president and regional director CRC GROUP SPECIALTY: PROPERTY (INLAND MARINE/ STOCK THROUGHPUTS)

Curt Biersch’s insurance career began when he took a job as a regional property underwriting trainee with Reliance Insurance Companies in 1972. After his first year, Biersch became a property underwriter, advanced into a field representative position and later became

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2019

PAT ASHCRAFT Executive vice president, property division Towerstone SPECIALTY: OIL & GAS

An Oklahoma native, Pat Ashcraft always had an interest in the oil & gas business. Originally planning to study petroleum engineering, Ashcraft’s love of the oil & gas industry reignited when he became a retail broker in Dallas in the 1980s. “I quickly learned that the industry had many unique risk exposures and sophisticated coverage requirements,” he says. “Off-the-shelf insurance products didn’t seem to fit, and it looked like an area that required expertise that a lot of insurance agents didn’t possess at that time.”

Ashcraft’s knowledge of the oil & gas exploration and production business enabled him to establish his own company, Energy Risk Associates, which became a premier broker for the energy industry. Now as an EVP with Towerstone, Ashcraft applies his knowledge of mid-stream oil & gas field operations – including natural gas pipeline and transmission operations, pipeline and plant compression operations, natural gas treating and natural gas liquids production – when servicing clients.

“The oil & gas industry keeps reinventing itself with new science and new technology,” he says. “The shale revolution started in North Texas and totally transformed the global supply chain for both oil and natural gas.

As the world looks to transition away from carbon-based fuels, the oil & gas industry in our country is now well positioned to meet demand in the interim period.”

the commercial property underwriting manager. In the years that followed, he held a variety of roles, including special risk property underwriting manager at Cravens, Dargan & Co.; regional vice president with Industrial Underwriters; and president of Sherwood Insurance Services, a position he held until the business was consolidated into Swett & Crawford in 2002.

Biersch relishes the sales side of his role and values the client interaction that has helped him build a stellar reputation. While he readily leverages technology to keep operations moving forward, he’s passionate about establishing positive, long-term relationships built on meeting people and collaborating face-to-face. He’s also deeply invested in bringing smart young people into the insurance industry and mentoring them through career development. This year, he’s excited to focus on introducing new brokers to the business and seeing his team continue to grow.

STEVE RUTH Garage underwriter GENESEE GENERAL SPECIALTY: GARAGE

One of Steve Ruth’s first insurance positions was working as an assistant underwriter at a commercial carrier,

where his responsibilities included reviewing garage policies. “A garage policy has a lot more working parts and pieces than just a typical auto policy,” he says. “I learned the forms and the coverages. My first supervisor was known as a garage specialist, so she shared a lot of her knowledge and wisdom with me.”

Today, Ruth enjoys educating his agent partners on the intricacies of garage policies. “A lot of our agents have never written a garage policy or have written very few of them and always have a lot of questions,” he says. “This gives me an opportunity to call the agent to discuss and guide them through the process of quoting a garage policy. It gives them an opportunity to learn about the coverages, what is covered and options that can be offered.

I want the agent to feel comfortable and understand what they are offering to their client. Through this process, I develop good working relationships.”

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SPECIAL REPORT

TOP SPECIALIST BROKERS TIMOTHY M. PEDERSEN JR. Senior vice president, transportation practice leader BROWN & RIDING SPECIALTY: EXCESS TRANSPORTATION

When Brown & Riding acquired his former employer about six years ago, Tim Pedersen Jr. saw an opportunity in oil & gas and began writing excess on fuel haulers. After re-evaluating his book at the end of the year, he realized he was hitting on excess transportation and decided to head in that direction. “Sometimes you take a path, thinking you know where it will lead, and find yourself heading to a different destination that ends up working out better than you had ever thought,” Pedersen says.

Now, as practice leader of Brown &

JIM HAMILTON Vice president and senior broker CRC ENVIRONMENTAL BROKERAGE, A DIVISION OF CRC INSURANCE SERVICES SPECIALTY: ENVIRONMENTAL

Hailed as an environmental insurance expert by the US Environmental Protection Agency, Jim Hamilton has more than two decades of expertise in environmental insurance. He was one of the key personnel for a contract with the EPA, providing expert insurance support for various EPA divisions, as well as the Department of Justice and the Department of Defense. He was also the first broker to have used environmental cost cap insurance as a financial assurance instrument for an EPA Superfund site.

Hamilton started writing environmental insurance early in his career at a time when only a few brokers

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specialized in the space. In the early and mid-2000s, he was a director at Dispute Resolution Management [DRM], an international consulting firm specializing in environmental, asbestos, product liability and insolvent carrier claim settlements against historical GL policies. After DRM, Hamilton joined JCH Environmental Insurance Agency, and from there he transitioned into wholesale brokerage, currently serving as the national practice leader for CRC’s environmental practice.

“Environmental exposures and risks are evolving, and no two clients share the same risks or exposures,” he says.

“It is vital we understand our client’s risk, and the process of identifying those risks through site visits and client interviews is a fun part of our job … Even though environmental insurance is a very mature product, developing a tailored insurance and risk management program for a client frequently involves creating manuscript forms and endorsements.

The creative process of working with the client, underwriters, counsel and other stakeholders to develop bespoke coverage can be very rewarding.”

Riding’s transportation group, Pedersen oversees a book of business that has tripled over the past three years and is on pace to continue that growth trajectory. Within the last 12 months, he has built the practice group from three to eight producers and has established B&R as a national presence in the transportation space.

“Excess transportation is a rapidly evolving marketplace,” Pedersen says.

“We have markets pulling out, we have new entrants to the marketplace, and we have carriers changing guidelines. It is a marketplace with limited markets, and one relies on their carrier relationships more than some other areas. Staying on top of it takes knowing the players and not only the markets, but also the reinsurance marketplace and the competition, especially in a world where most of the markets are limited distribution.”

RICHARD LANG Assistant vice president, marine/WC/ USL&H/MEL ALL RISKS LTD. SPECIALTY: MARINE

For Richard Lang, the most exciting aspect of working in marine insurance is figuring out the very best program for agents and insureds on each account.

“Most agents do not specialize in this area, so when they submit to us, they’re looking for our expertise,” he says.

Back in 2001, when All Risks was writing workers’ compensation program business, it identified an opportunity to get into the US longshore and harbor [USL&H] space. “We were fortunate enough to find a carrier, AIG, who was dabbling in the USL&H space and looking to grow,” Lang says. “Seventeen years later, we’re going strong in the marine space, writing all lines. We specialize in USL&H, with over seven markets to serve our agents.”

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2019

CASEY E. EVANS Area senior vice president RISK PLACEMENT SERVICES SPECIALTY: CONSTRUCTION CASUALTY/ WRAP-UPS

Ten years ago, following two summer internships at Risk Placement Services [RPS], Casey Evans joined the company full-time, developing a niche in the construction space. Considered one of the best technical construction brokers within

RPS, Evans serves as the key resource on construction industry risks to colleagues in more than 20 RPS branches.

Over the past seven years, he has grown his book of business by more than 10%; in 2018, he and his team eclipsed the $2 million revenue mark. Evans continues to hone his skills through industry training and expanding his distribution. He has been a speaker for a number of constructionrelated presentations and has contributed various articles to industry publications.

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SPECIAL REPORT

TOP SPECIALIST BROKERS TERRY MCCANN President, Chicago office RT SPECIALTY SPECIALTY: CONSTRUCTION/REAL ESTATE DEVELOPMENT

Early on in his career, Terry McCann worked with insureds, retailers and insurance markets that had significant expertise in construction and real estate development. Through those networks, McCann was able to obtain the knowledge and experience needed to service the exposures associated with construction risks.

“Exposures of very unique and complex projects make every day a new challenge to tackle,” he says. “We work on different projects for our clients every day. Whether it is bridge construction in New York, a large condo high-rise in Florida, a large frame apartment complex in Colorado or a substantial infrastructure project that includes tunneling, we are committed to working with the client to present the most comprehensive program structure and best markets to address the needs of the client.”

McCann finds working with retail brokers and sophisticated construction practice groups to be very rewarding, and the collaborative marketplace keeps him attuned to the emerging trends and issues insureds face. “Whether it is changes in state laws that need to be addressed by insurance carriers or unique construction methods or materials being used by insureds, communication is the key,” he says.

BRENT DUBOSE Transportation underwriter GENESEE GENERAL SPECIALTY: TRANSPORTATION

After working in a variety of insurance roles, Brent DuBose joined the wholesale channel and hasn’t looked back. Previously, DuBose was a transportation underwriter who specialized in trucking, public transport and commercial auto. He continues to focus on the transportation sector today, where he’s always experiencing something new. “I enjoy the challenge of making a difficult deal happen,” he says.

“Brent is always eager to jump in and help on an account,” a colleague adds. “He goes above and beyond with the carriers to help his agents.”

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MICHAEL A. DE FEO Senior vice president NIF PRO, A DIVISION OF NIF GROUP SPECIALTY: FINANCIAL LINES, MANAGEMENT AND PROFESSIONAL LIABILITY

Michael De Feo’s interest was piqued when he was first introduced to directors & officers’ liability insurance, and he managed to secure a position with NIF Pro, the professional lines team at NIF Group.

In an arena that presents unique challenges, De Feo often faces complex situations and is regularly exposed to a variety of areas outside of insurance, including law and finance.

“To effectively broker their risk, we really need to understand how businesses are structured, managed and how they make their money,” he says. “Elements of corporate finance and corporate law impact exposures and insurance coverages; we get a peek inside litigation, mergers and acquisitions, capital raising, bankruptcies, IPOs, startups, and other material events. Of course, as a wholesale broker, I particularly love partnering with a producing brokerage to help them beat out a much larger firm and win the business.”

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2019

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SPECIAL REPORT

TOP SPECIALIST BROKERS RYAN MOORE

LAURIE MCKENZIE

Executive vice president, casualty division

Associate director

AMWINS INSURANCE BROKERAGE OF CALIFORNIA

AMWINS PROGRAM UNDERWRITERS

SPECIALTY: CONSTRUCTION/WRAP-UPS

SPECIALTY: RADIO/TV BROADCASTING

Ryan Moore leads a team of six professionals in the construction practice at AmWINS Insurance Brokerage of California. Moore worked for both carriers and brokers in the construction space before joining AmWINS in 2011. A resource for brokers around the country, his team focuses on delivering innovative solutions to project-specific risks for owner/ developers and general contractors. Thanks to their nationwide reach, Moore and his team are well versed in state-specific construction defect issues and in sync with carriers’ ever-changing appetites.

“We spend a lot of time talking with clients and attorneys about industry-specific issues so that we have a broad understanding of the challenges they are facing on a day-to-day basis,” Moore says. “We also spend a lot of time staying on top of court cases or legislative changes that may impact how policy wording would apply to or impact our clients.”

Laurie McKenzie specializes in insurance for radio and TV broadcasters, providing them and their agents coverage for property, towers, broadcast equipment, general liability, auto and umbrella.

McKenzie found her way into the broadcast business as an inland marine underwriter for Fireman’s Fund Insurance Company, which included radio/TV broadcasting as a targeted class of business in inland marine.

Today, she serves as associate director at AmWINS Program Underwriters, where she works with the Broadcasters

RODNEY CHOO Senior vice president RISK PLACEMENT SERVICES SPECIALTY: MANAGEMENT LIABILITY AND TRANSACTIONAL RISK

A licensed attorney, Rodney Choo previously practiced anti-trust law for the Federal Trade Commission, as well as Latham & Watkins, before moving into the insurance sector.

An astute public company broker, Choo has worked on numerous Fortune 500 placements, with an emphasis on technology and biotechnology.

In additional to procuring some of the broadest terms and conditions available in the marketplace, Choo advocates on behalf of his clients in complex situations, including circumstances that could give rise to claims. For Choo, the key to understanding management liability risks and trends is immersion in the claims process: “It is there where you see what’s driving losses, whether language is working the way it was intended, etc.,” he says.

A trusted member of his clients’ risk management teams, Choo maintains a retention rate in excess of 90%. He has been a frequent speaker and is quick to share his knowledge with his team at Risk Placement Services, including training the next generation of broker experts.

“From my retail partners [and] insured executives and board members to my teammates at RPS [and] our underwriting partners, the enjoyment is working with people you respect to come up with solutions to complex problems,” he says.

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BusinessPro program, tailoring coverage for specific needs, including business interruption and special events, along with added services such as broadcast media software and mobile broadcasting unit on an RC basis. “The most exciting aspect is working with agents and insureds to deliver creative solutions specifically tailored to meet their needs,” McKenzie says.

JON SHIRAZI Senior vice president RT SPECIALTY SPECIALTY: HIGH-HAZARD PROPERTY

Jon Shirazi focuses on the placement of complex first-party property insurance risks, with an emphasis on high-hazard and specialty lines. He has a proven track record of identifying and developing creative solutions within challenging insurance markets to achieve outstanding results for the mutual benefit of both policyholders and insurers. His wide-ranging experience encompasses habitational and commercial risks, including co-ops and condominiums, rental apartment complexes, hotel and

hospitality properties, builders’ risk, and rail and energy properties.

Over the past 12 months, Shirazi has structured several new and innovative property coverage initiatives, generating more than $100 million in E&S premium.

These initiatives included creating alternative coverage options for clients to further protect against high-risk exposures and provide balance-sheet protection.

With a discerning eye for atypical solutions, Shirazi aims to leverage market synergies in order to find and deploy capacity in the most efficient manner possible. He always seeks to use his strong understanding of insurance markets to evolve and innovate bespoke products and services in ways not previously attempted by wholesale agents.

CONGRATULATIONS

to PAT ASHCRAFT On being recognized as a Top Specialist Broker Your enthusiasm for the Oil & Gas industry and your personalized approach to business relationships have made Towerstone a leading Oil & Gas wholesaler.

Thank you!

TOWERSTONE, INC.

towerstonecorp.com

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SPECIAL REPORT

TOP SPECIALIST BROKERS

Meet the Team: WORLDWIDE FACILITIES Since 1970, Worldwide Facilities has offered brokers and agents access to specialist solutions for virtually every specialty domestic and international insurance market. Meet a few of the Worldwide Facilities brokers who have set the standard for delivering specialist coverage and expertise.

BRIAN VASSALLO

JEREMY HUANG

Senior vice president

Vice president

WORLDWIDE FACILITIES

WORLDWIDE FACILITIES

SPECIALTY: OCIP/CCIP – WRAP-UP COVERAGE

SPECIALTY: PROFESSIONAL LIABILITY

Brian Vassallo got into wrap-up coverage the way most find a career in insurance – by accident. “I moved to California in 2005 at the height of the construction boom, thinking I was going to specialize in nutraceuticals,” he says, “but if you were going to get in the door with any client out West, you’d better have been able to talk about construction.”

That meant learning everything he could about OCIPs, CCIPs and construction in general. “You don’t have to be great at something to start; you must just start to be great at something,” Vassallo says. Today, having forged strong relationships with wrap-up administrators, third-party peer review providers, construction attorneys, underwriters and agents, Vassallo is able to stay ahead of construction risks and trends.

He says the most exciting part of working with wrap-up and construction risks is providing critical solutions. “I don’t take lightly the big checks that insureds cut for this type of insurance,” he says.

“That said, I don’t take lightly the checks that carriers must cut when there are claims. However, when we put the insured first, we all win.”

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When Jeremy Huang began his insurance career as a professional liability/ management liability underwriter for Chubb, he had the opportunity to underwrite E&O for various niche industries, including media/entertainment and financial institutions. Today, Huang is a vice president at Worldwide Facilities, where he not only assists his agent

MATT DONOVAN Assistant vice president WORLDWIDE FACILITIES SPECIALTY: CYBER LIABILITY

When Matt Donovan started his underwriting career at Westchester, his boss steered him into the emerging cyber market after learning of his history building computers and running a small online business in college. In 2010, Donovan joined Hiscox to start its technology and cyber liability practice for the Southeast region and was eventually promoted to product head/global practice lead.

“The experience I gained there writing

partners with coverage, but also puts together several seminars for agents to help them learn about different coverages within professional liability.

“I prefer to be the person who knows the most about a topic,” he says. “I read every policy I’ve ever recommended front to back before I present it to my clients so I know what I’m recommending, and I prepare thorough coverage comparisons for my agents on a regular basis. Every risk profile is different, and every deal is different.

I’m able to pull from my underwriting experience and years as a broker to get the job done, but every day presents a new challenge, and no deal is ever the same. I enjoy the art of the deal.”

policy wording, negotiating breach response vendor contracts, tailoring reinsurance programs, and creating underwriting guidelines and rate plans was invaluable to my career,” Donovan says. “Cyber exposure and coverage continually evolve at an ever-increasing pace, so there is never a dull moment in this specialty. That evolution comes with a number of hurdles in navigating policy wording … Working through these coverage issues allows me to be a part of driving change in the marketplace.”

Working on accounts in many different industry segments has given Donovan the best exposure to emerging threats. “Cyber is one of the – if not the – fastest-moving segments in our industry,” he says, “so there are always new twists and turns to navigate.”

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CRAIG REEVES Senior vice president WORLDWIDE FACILITIES SPECIALTY: PROPERTY CONSTRUCTION

Craig Reeves’ interest in construction began 20 years ago after successes on a couple of large stadium projects. He quickly discovered that each construction risk has unique exposures that require innovative solutions and that carrier and product forms have many variances.

“Many of the forms have limitations, exclusions or even the use of a single word

that can mean the difference between full recovery on a multi-million-dollar claim and little, if any, recovery,” Reeves explains.

“I found this to be most challenging and interesting, leading me to focus my attention on this space.”

Although he’s an expert in his field, Reeves isn’t afraid to ask questions. For example, with engineered risks [EAR], he has made a point of getting to know the carrier engineers, which has allowed him to learn about the intricacies of more complex projects and how to deal with them. But what he enjoys most is “finding solutions for the most difficult-to-place risks, such as jobs that involve prototypical technology where risks are unknown to the industry.”

PHILIP COLLINS

LORI M. HUNTER

Senior vice president

Executive vice president

WORLDWIDE FACILITIES

WORLDWIDE FACILITIES

SPECIALTY: MANAGEMENT LIABILITY AND FINANCE

SPECIALTY: PRODUCT RECALL

As an expert in management liability and finance coverage, Philip Collins looks after the risk needs of clients in innovative industries that are faced with fast-moving trends and are vulnerable to major disruptions and crises. Currently, Collins is witnessing the insurance industry’s attempts to grapple with the explosion of legalized cannabis, despite it still being a banned substance under federal laws, as well as dealing with the exposures of companies involved in the cryptocurrency space. For Collins, being in these lines has meant working tirelessly to cover all bases and remain in the trenches.

“There is no silver bullet to this,” he says. “It’s a mix of reading industry blogs and articles, talking to the underwriting and brokerage community about their experiences, and attending educational events – but truthfully, the only way to stay on top of risks and trends in this space is to work deals every single day. It is dangerous to get too comfortable or cocky.”

More than 15 years ago, Lori Hunter began handling product recall risks at a time when there were only a few markets available.

When the market for recall expanded, she got to know the underwriting appetites and underwriters at the carriers that were entering the space. “I talk to carriers writing recall coverage on a regular basis to make sure we are abreast of their current risk appetite and form offerings,” she says.

To stay on track with varying carrier appetites, Hunter creates coverage comparisons and spreadsheets, and she also led Worldwide Facilities to design continuing education classes for agents.

“I feel that the most exciting part of working with this specialty is that it’s so dynamic,” she says. “The other fun aspect of being a product recall specialist is meeting with insureds, along with underwriters and crisis consultants and agents. We get to see firsthand how industries are evolving to become safer and hear their concerns about the product recall environment. It is an exciting field.”

DAVID JONES Vice president, excess and brokerage casualty MCCLELLAND AND HINE, A DIVISION OF WORLDWIDE FACILITIES SPECIALTY: EXCESS CASUALTY

After starting out in the industry as a casualty underwriter with Aetna C&S, David Jones had the opportunity to move to Chubb as an excess umbrella underwriter – his first real indoctrination into the field. Jones says gossip is one of his keys to keeping up with trends and risks, along with counting on his network of underwriters to fill him in on specific changes within their companies.

In a space such as excess casualty, the immediacy required keeps things exciting and interesting. “The excess placement is always the last piece of the puzzle,” Jones says, “so we are expected to react quickly on almost every account.”

RYAN RISKE Assistant vice president WORLDWIDE FACILITIES SPECIALTY: MARINE

A second-generation marine broker, Ryan Riske possesses unique knowledge of marine markets. As a specialty broker, he sees challenging and complex marine risks firsthand, which helps him stay on top of emerging trends. In addition, constant communication with markets and staying up-to-date with underwriting appetites have been key to his success.

“We have extensive relationships with underwriters and access to the major marine markets,” Riske says. “We have been able to assist with some very interesting marine risks – everything from a decommissioned aircraft carrier to towing of a dry dock from Guam to China to coverage for deep-sea divers.”

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SPECIAL REPORT

TOP SPECIALIST BROKERS

BILL NAGEL Vice president and director of staffing PMC INSURANCE GROUP

MICHAEL DAUTH

SPECIALTY: STAFFING SERVICES

Vice president and broker BRECKENRIDGE INSURANCE SERVICES SPECIALTY: DEALER’S OPEN LOT

LORI RODRIGUEZ Executive vice president, personal lines

Traditional dealer’s open lot insurance has been challenged with the rise in natural disasters and catastrophic losses, and auto dealers increasingly face daunting losses and less-than-ideal coverage options. Michael Dauth has specialized in dealer’s open lot coverage since 2003, and his experience helps insureds prepare for such events through sound risk management practices that include maximum coverage and claims support. He has worked with a number of larger dealers and their agents in building a layered approach to proactive coverage solutions.

Having worked on both the agent and underwriting side, Dauth offers a valued perspective, even when it’s not the answer an agent wants, but one he or she needs to hear. He prides himself on putting forth his time and expertise to be a long-term partner not only to his clients, but also to the carrier partners he works with closely.

“It’s almost a daily ritual to keep in touch with the markets and who is doing what,” he says. “I keep up with my bank relationships weekly and reinsurers weekly, as well as always try to make sure that I am on top of changes, as it seems to change all the time.”

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AMWINS ACCESS INSURANCE SERVICES SPECIALTY: EXCESS & SURPLUS PERSONAL LINES

With more than three decades of experience in E&S personal lines, Lori Rodriguez leads a California-based team of underwriters for AmWINS Access. Her extensive industry knowledge, combined with her market insight and established relationships, have helped transform her California personal lines territory into a nationwide platform.

“I started in personal lines, writing surplus lines auto physical damage at Bliss & Glennon, which was acquired

by AmWINS in 2013,” she says. “The 1994 Northridge earthquake caused homeowner’s markets to tighten up, which created the need for surplus lines markets to write residential risks. I’ve been writing this class of business since.”

Through creative underwriting, Rodriguez has achieved consistent double-digit growth year over year, including more than $12 million in premium for 2018. Dedicated to giving back to her community, Rodriguez volunteers with the Special Olympics and is an active participant in AmWINS’ Summer of Service program.

Bill Nagel has been involved in the staffing services industry since the early 1980s. He started out with the National Council on Compensation Insurance in 1979, became a staffing service franchise owner and worked in various positions in the industry, all of which led him to recognize how critical best-in-class risk management, loss control and safety were.

His understanding of both the industry’s profitability factors and the loss control and risk management policies that impact workers’ comp rates enabled him to fill in the gaps. The best practices he developed have become the foundation of the Safety Standard of Excellence, a joint initiative between the American Staffing Association and the National Safety Council created specifically for the staffing services industry.

Since joining PMC Insurance Group in 2013, Nagel has grown its staffing program business tenfold. He has also created a full-service risk management platform, leading his team to provide the most comprehensive value-added services in the industry.

“This industry is one of the most challenging in the business world due to variety of expertise in which a staffing firm must be proficient,” he says. “A retail agent who services a staffing firm, as well as the staffing firm themselves, must partner with an experienced advisor in their industry.”

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2019

JAMES ROZZI Area executive vice president RISK PLACEMENT SERVICES SPECIALTY: LARGE CAT-EXPOSED AND HIGH-RISK PROPERTY

The frequency of property losses due to both manmade and natural catastrophes has made the habitational sector one of the most challenging to work in, but James Rozzi has mastered navigating the ebb and flow of the

marketplace to deliver creative solutions.

Over the past five years, Rozzi has been able to grow his book considerably in the real estate/habitational space; from 2013 to 2017, his book grew by 80% to approximately $75 million in written premium by the end of 2017. In addition, Rozzi was able to leverage the data on his book of business to create a habitational program designed for large habitational accounts.

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18/01/2019 6:34:51 AM

SPECIAL REPORT

TOP SPECIALIST BROKERS MICHAEL SCHAFER Senior vice president RISK PLACEMENT SERVICES SPECIALTY: COMPLEX CASUALTY PLACEMENTS

Fueled by the frequency and severity of losses, combined with explosive growth, the hired and non-owed auto [HNOA] segment is currently facing a number of challenges. Michael Schafer consistently works through these by using data to offer unique solutions for his clients. Maintaining a $2 million book of business, Schafer is at the forefront of the HNOA space, and he works with underwriters and clients to provide the top solutions for insureds. A natural leader, Schafer also devotes his time to mentoring individuals who are eager to learn more about insurance.

SHEILA BOATMAN

RICHARD MANDUCA

Vice president and senior broker/underwriter, healthcare

Vice president

U.S. RISK SPECIALTY: MISCELLANEOUS MEDICAL MALPRACTICE

As a specialist broker for miscellaneous medical malpractice, Sheila Boatman was instrumental in setting up U.S. Risk’s Houston healthcare division. Boatman is also senior underwriter for U.S. Risk and holds underwriting authority through the company’s exclusive miscellaneous medical program.

“Medical malpractice is a very specialized and unique niche in the industry,” she says. “[Whether it’s] placing coverage as a broker for an individual physician or having the authority and expertise to underwrite an assisted living facility, all these present an exciting challenge.”

To keep current with changing trends in the marketplace, Boatman focuses on networking with other industry professionals while maintaining close contact with brokered markets. She also considers her relationships with retail agents and company underwriters a top priority and one of the best parts of working in the miscellaneous medical field.

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NIF GROUP SPECIALTY: CONSTRUCTION

During his 15 years as a wholesale broker, New York construction has presented Richard Manduca with many challenges that have permitted him to develop a deep understanding of this class of business. Its dynamic nature requires Manduca to stay on top of trends that affect the industry.

“Constant contact and discussions with my carrier underwriters and retail agents allow me to quickly adapt to the ever-changing construction marketplace,” he says. “This daily contact also positions me to be a vital avenue of communication between the marketplace and the street. Traditional channels of information like insurance company newsletters, publications and websites are very useful, but simply picking up the phone has always been my best asset in getting the deal done.”

Manduca has also found that his clients are just as dynamic as the market, each with their own needs and requirements. “There is not just one insurance company all contractors can call home,” he says.

“It is exciting to explore what each one does and work through the marketplace to find the best coverage fit within it for each.”

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OUT-EXECUTE verb

2019

To deliver the solution that wins the account

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26-49_Specialist Brokers 2019-SUBBED.indd 45

CONSTRUCTION PROPERT Y

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W O R K ER S’ C O MP ENS AT I O N www.ibamag.com 45

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SPECIAL REPORT

TOP SPECIALIST BROKERS

STEVE SHEPARD Underwriting manager, transportation BURNS & WILCOX

RAHMAD BAULDRICK Brokerage manager, professional insurance BURNS & WILCOX SPECIALTY: MISCELLANEOUS E&O

SPECIALTY: TRANSPORTATION

While working for a durable medical equipment company, Steve Shepard handled compliance for both the Department of Transportation and Community Health Accreditation Program. He developed and implemented safety/driver handbooks, as well as hazardous material handling procedures.

When he moved into insurance, his experience dovetailed nicely with the DOT/safety compliance expertise he needed to understand and write commercial auto risks.

Today, Shepard uses multiple sources to stay informed. “I rely heavily on my insurance carrier and agency partners to keep up-to-date with the changes in the market and challenges that our insureds face,” he says. “I also utilize other resources to gather information, such as the Motor Carrier Insurance Education Foundation and the Kaufman Institute.

They both offer continuing education opportunities and help support the insurance community as a whole.”

For Shepard, the most exciting aspect of his job as a transportation broker is being “part of an industry that is ever-changing and has such an impact on our country on a day-to-day basis.”

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After beginning his career with State Farm Insurance and spending several years as a

ALISTAIR BARNES Executive vice president, property AMWINS BROKERAGE OF TEXAS SPECIALTY: ENGINEERED RISKS (PETROCHEMICAL AND ELECTRIC UTILITY INDUSTRIES)

Alistair Barnes’ entry into engineered risks came about in an unorthodox way.

At the age of 11, he began working in his family’s farm shop in rural England, selling everything from lettuce to Christmas trees. After high school, he worked for a large chemical company, then spent some time as a Lloyd’s broker before moving to the US and eventually

claims adjuster, Rahmad Bauldrick’s mentor pulled him aside and said, “You really need to consider becoming a professional liability underwriter.” The seed was planted, and soon after, Bauldrick took a job as a professional liability underwriter at Markel.

His career progressed in the professional liability market in different capacities through positions with AIG, Zurich, V3 Insurance Partners and Burns & Wilcox.

“Professional liability is such a niche market, with new exposures always being developed and introduced to the marketplace,” Bauldrick says. “Insurance professionals live and breathe professional liability every day with evolving technology, the economy and consumer demands.

As long as people continue to explore new ideas and create new businesses, professional liability insurance will always be relevant to protect their assets as well as themselves.”

joining the wholesale channel.

To stay ahead of energy risks, Barnes has an unusual method: “I have played squash with the president of an energy company for many years, and my favorite question to ask him between games is: ‘What keeps you awake at night?’ Over the years, this would change from ‘getting currency out of a difficult country’ to ‘Gulf of Mexico wind capacity.’ It often seemed to be taxing risks where the insurance market was struggling to meet demand – or could, but the price was too high.”

Following the 2014 Polar Vortex, the electric utility marketplace saw a key development in the institution of New England ISO and PJM RTO Capacity Performance [CP] penalties. CP expenses could reach $3.5 million per hour for a 1,000 MW power plant, presenting a substantial new risk to the industry. “Working with [the regulator] and market-leading underwriters to understand the issues, and listening to insurers as they research and develop products, has helped us to knowledgeably distribute the insurance product to our retail brokers and their clients,” Barnes says.

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2019

JEFFREY BLUMBERGER Brokerage specialist JIMCOR AGENCIES SPECIALTY: PUBLIC TRANSPORTATION AND HARD-TO-PLACE AUTO

Jeffrey Blumberger joined Jimcor in early 2018 as part of the company’s efforts to expand its transportation business. Blumberger has focused much of his career on the transportation sector, managing multifaceted books of business and developing new products and programs on a national level, in addition to accumulating more than 20 years of experience working with different industry players, from carriers to MGAs and wholesalers.

Blumberger focuses on the individuality of each client and their unique transportation needs and always goes to maximum lengths to make sure clients are placed exactly where they need to be.

TABITHA DEGIORLANO Program manager/underwriter, insurance agents’ E&O ALL RISKS LTD. SPECIALTY: INSURANCE AGENTS’ E&O

“I review both insurance and trade publications and speak with insureds and industry leaders as frequently as possible to identify future industry issues and pain points,” he says, which allows him to “find and identify future trends in the industry and create a solution for our clients that puts them ahead of their competitors.”

While looking for opportunities to write a more challenging line of business, Tabitha DeGiorlano found her way into an MGA that specialized in E&O for insurance agents.

She discovered her love for writing the line and has stuck with it ever since. Drawing on her passion for meeting new agents and getting them the right coverage, DeGiorlano and All Risks developed an exclusive program that features new coverages and tools for agents, which will be introduced early this year.

Industry publications, networking, conventions and the close relationships she has developed with underwriters keep DeGiorlano on top of market changes and risks. “The carriers are an invaluable resource for staying ahead of claims trends that can affect my clients,” she says. “Teaching CE classes provides me with additional insight into how my clients handle their business and what new exposures they may have as new technology is utilized.”

JEFFERY SHORT Senior vice president, hospitality practice leader BROWN & RIDING SPECIALTY: HOSPITALITY

A former DJ, Jeffery Short ended up in E&S insurance a few years after graduating from college. He was able to learn multiple lines of insurance and gain a big-picture perspective of the hospitality industry, which he quickly realized he wanted to specialize in.

“The people in this class of business have a lot of energy, and there are a lot of moving parts, which makes this class challenging,” Short says. “Hospitality isn’t just one coverage; you have to have knowledge of multiple coverage lines: GL, liquor, property excess, EPLI, D&O and cyber. It’s really exciting to find creative solutions to difficult problems and bring all of that together for the insured.”

For Short, the key to staying abreast of emerging risks is to develop a full understanding of all the moving parts, from the carrier/provider side to the client and the nature of their business. He also spends a lot of time talking with retailers, whom he considers “specialists in their own right” because they understand how insureds continue to evolve in the course of their businesses.

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SPECIAL REPORT

TOP SPECIALIST BROKERS

JOSEPH HAYES Casualty, managing director WHOLESALE TRADING INSURANCE SERVICES SPECIALTY: CONSTRUCTION

For Joseph Hayes, being an E&S broker requires constantly adapting to the needs of retail agents, which he considers to be one of the most significant aspects, if not the deciding factor, in choosing a specialty. Based on his experience and exposure, Hayes found construction to be one of the most robust market segments, which led him to his choice of expertise.

Hayes considers the fast-paced nature of construction the most exciting and fulfilling part of his work. “The reality is that we have our finger on the pulse of the market every single day, so staying abreast of emerging risks is a real-time task,” he says. “Nothing is better than finding a solution for a challenging risk and getting an order to bind.”

Hayes credits his successes to having a solid base of retail agents and partners to work with. “We hear from our retail agents and their insureds on what the current challenges are,” he says, “and then we task into the marketplace to search for fair, long-term solutions with our underwriting community. Having a true partnership with clients and underwriters you trade with each day makes [the work] more unique than a traditional transactional wholesaler may experience.”

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BRENDA CAMPBELL Director of sports and leisure ALIVE RISK, A DIVISION OF ALL RISKS LTD. SPECIALTY: SPORTS, LEISURE AND ENTERTAINMENT

While specializing in entertainment risks, Brenda Campbell noticed an opportunity within the sports field. “Brokers needed someone who understood the business,” she says. “I researched and developed a program specifically addressing the needs of the sports industry.”

In 2016, Campbell joined All Risks’ Alive Risk division as the director of sports and leisure, where she is responsible for developing, underwriting and managing the program while partnering with retail agents across the country. Previously, Campbell served as senior underwriting manager for OneBeacon Entertainment, where she underwrote and managed a book of business focused on entertainment, sports and leisure.

“The most exciting aspect of working in this specialty is the ever-changing risk,” Campbell says. “The accounts are never boring, as no two risks are the same!”

KERRI SENGER Regional vice president and CBO director BRECKENRIDGE INSURANCE SERVICES SPECIALTY: REAL ESTATE INVESTMENT SCHEDULES

Kerri Senger’s knowledge of real estate investment schedules is built on 20 years’ worth of relationships with carriers and clients in a dynamic industry. With significant contract binding authority, Senger has built a client base that trusts her to write investor business.

Her market insights and familiarity with clients’ needs have enabled her to quickly and productively tailor and bind coverage that addresses the investor property schedule composition.

“You have to stay in constant contact with top agents working directly with the REITs,” Senger says of her approach to this niche. “I also try to stay one step ahead by knowing what the direct writers or standard markets are doing. They come in and out, but we have a lasting

footprint in this space.

“I love the intricacies of the large schedules,” she adds. “It’s especially rewarding when a large REO is coming off individual policies and we’re able to make their life so much easier by combining properties and saving them money.”

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Allied

2019

JONATHAN REINER Executive vice president RT SPECIALTY SPECIALTY: PROFESSIONAL AND MANAGEMENT LIABILITY

Jonathan Reiner has established himself as one of the top industry experts in his field, thanks to his specialized knowledge of financial lines products, including D&O, E&O and cyber liability.

“I quickly became very interested in cyber liability because it was an emerging vertical that I felt I could build a deep knowledge in based on my interest in the exposures,” he says. “D&O lines always appealed to me because I enjoyed the language negotiation process and found quickly that you can add a lot of value for insureds and retail brokers by knowing what coverage is most pertinent to each insured and what is available in the marketplace.”

The financial lines world is constantly evolving, and Reiner continues to educate himself through every transaction and claims experience. That knowledge allows him to advocate for clients and markets. “Professional and management lines are unique in the sense that coverage isn’t always black and white,” he says, “and the marketplace allows us to customize and craft very specific solutions for our clients, which is ever challenging and thought-provoking.”

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18/01/2019 6:35:15 AM

FEATURES

SECTOR FOCUS: ENVIRONMENTAL

A rewarding environment Environmental insurance is of critical importance for a vast array of business owners. IBA talked to experts in the sector to get a handle on the key issues, trends and opportunities in this space

IN BUSINESS, as in life, it’s pretty hard to avoid the environment. And just as contaminated water, air and soil inevitably have an impact on our bodies, so too do they take their toll on businesses engaged – wittingly or not – in activities that result in some form of pollution.

Far too many business owners operate under the impression that their liability and property insurance policies will cover them in the event of unforeseen – or foreseen – environmental degradation. However, standard policies rarely cover pollution. A business that exposes employees, other busi-

REGULATIONS THAT DRIVE THE MARKET The environmental insurance demands placed on businesses have intensified over the past five decades, largely due to the environmental liability provisions in the following pieces of legislation: CLEAN AIR ACT (1970) The same year the EPA was formed, Congress passed a law that regulates air emissions from stationary and mobile sources.

CLEAN WATER ACT (1972) After decades of uncontrolled dumping led to decreased water quality and increased mercury levels in fish, Congress moved to regulate pollutant discharges into US waters.

RESOURCE CONSERVATION AND RECOVERY ACT (1976) The RCRA created a regulatory scheme for dealing with hazardous waste and required facilities to prove they have the financial means to respond to a major pollution event.

COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT (1980) Commonly known as Superfund, this legislation established a fund to respond to major environmental incidents and made past and present owners/operators liable for cleanup costs.

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nesses or the public at large to hazardous materials can wind up facing cleanup costs, legal fees and even the relocation of facilities, any of which can be annihilating.

That’s why, now more than ever, environmental insurance is a necessity for virtually any business. With environmental consciousness at an all-time high, any operation that could potentially damage an area’s air, water, soil or inhabitants will be subject to increased scrutiny. If you represent any of the thousands of American small business owners who think oil pipelines and large-scale healthcare facilities are the only ones facing these exposures, get them on the phone immediately. And if you’re unfamiliar with the environmental insurance space, now is the time to educate yourself to better serve your current and future clients.

Who needs environmental insurance?

In the US, environmental insurance is required by both governmental and nongovernmental agencies to ensure that sufficient funds are available in the event of third-party damages arising from an insured’s business activities.

“Although environmental insurance is not the exclusive means to satisfy these financial requirements, it is one of the more favorable options,” says Eric McCabe, national underwriting director for Great American Insurance Group’s environmental division.

“The insured does not need to designate substantial collateral, and the government is more comfortable with the insurance carrier’s financials.”

McCabe adds that lenders, private equity firms and landlords encompass most of the non-governmental entities that require environmental insurance, primarily as a means to supplement their due diligence.

“An environmental carrier can ensure that the lender’s real estate appraisal is correct, the private equity can rely on certain warranties, and the landlord is not paying for issues

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for environmental impairment liability in North America at Allianz Global Corporate & Specialty [AGCS], the environmental insurance industry “has suffered from a historically low penetration with commercial buyers. Some statistics state penetration is less than 5% of the total US commercial insurance market.”

Williams notes that the majority of environmental claims activity typically centers around three areas: indoor air quality, including issues such as mold and legionella; operational loss, including releases from tanks, pipelines or process equipment; and capital improvements at an insured’s own site.

McCabe adds that the most common claims tend to be those that can’t be underwritten prior to policy inception, meaning “the condition giving rise to the claim was not known, has not occurred or was known or suspected, but was not previously deemed an issue.” Prime examples, he says, are the subsurface release of an underground tank, mold growth resulting from a weather event and the existence of a chemical recently deemed a contaminant. caused by a contractor’s work or created by their former tenant,” he says.

Any business that could face losses arising from pollution should have some form of environmental insurance that covers bodily injury, property damage, cleanup expenses and legal costs. According to Stacy D. Brown, president and CEO of Freberg Environmental, that could include “hundreds of different types of facilities, from gas stations to major petrochemical facilities” to contractors hauling seemingly innocuous substances.

“We’ve seen things like milk haulers involved in accidents that have caused large spills, which is actually considered a hazmat incident,” he says. “Pollution exposures are wide and encompassing. If a business is

“Pollution exposures are wide and encompassing. If a business is handling a material that has the potential to cause harm to the environment, it’s likely to be covered under an environmental policy” Stacy D. Brown, Freberg Environmental handling a material that has the potential to cause harm to the environment, it’s likely to be covered under an environmental policy.”

And yet, most businesses don’t have environmental policies in place. According to Tom Williams, regional practice leader

New concerns With environmental awareness running high, the environmental insurance space should remain quite dynamic. While regulations have been falling by the wayside for the past two years, new classes of contaminants

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IBA 1.2

FEATURES

SECTOR FOCUS: ENVIRONMENTAL

OPPORTUNITY IN THE ENVIRONMENTAL SPACE According to a 2017 survey of the environmental insurance marketplace by the Atlanta Risk Management Society, respondents named these industries as representing the most opportunity in the space going forward.

Contractors and consultants 31.3% Real estate 28.1% Oil & gas 25% Industrial/manufacturing 15.6%

Source: Atlanta RIMS

are gaining attention, meaning more exposure for business owners.

“The environmental market has seen the emergence of many new chemicals of concern in the past decade,” Williams says. “In the past few years, perfluorooctane sulfonate, perfluorooctanoic acid and other polyfluoroalkyl substances have received increased attention from regulators due to the bioaccumulation of these substances in humans and the difficult and costly remediation in groundwater.”

McCabe says emerging contaminant, indoor air quality and natural resource damages are trends of the moment. “More interestingly,” he adds, “these trends seem to be arising out of the sophistication of the public at large.” Whether it’s because of the

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current political landscape or the availability of information, McCabe says there are “clear indications that these trends are the result of citizens becoming more sophisticated, politicians becoming more vocal, states getting more involved and all responding more quickly to environmental issues.”

With an abundance of providers, the environmental insurance market occupies an intriguing area between soft and stable.

“The marketplace has become quite crowded,” Brown says. “There are probably about 60 environmental markets currently writing contractor’s pollution liability. The number of carriers writing site-specific pollution is smaller, but nonetheless it is a very

Getting ahead There are several steps insurance professionals can take to make their mark in environmental insurance. The first, according to McCabe, is to realize that “most laypersons do not understand what environmental insurance is and that it takes time to educate your clients.”

Brown agrees that successful agents will be the ones who can offer their clients clarity and a comprehensive grasp of potential exposures.

“There are a lot of main-street businesses that people don’t consider as having environmental exposures, yet they have very clear exposures,” he says, naming dry cleaners and beauty shops as examples. “There are the obvious exposures and the not-so-obvious exposures, and I think

“It is imperative to provide clients an understanding of costs associated with environmental coverage so that pollution insurance costs are incorporated into future insurance budgeting cycles” Tom Williams, Allianz Global Corporate & Specialty crowded and very competitive marketplace.”

When larger carriers such as AIG left the environmental space a few years ago, Brown explains, they were replaced with a wave of MGAs, which caused a softening of prices across the industry – “except for commercial auto or hazmat auto,” he adds. “Hazmat auto has undergone a fairly robust pricing increase over the last year and a half, and I expect that trend to continue for the next year and a half or two years.”

Despite the fierce competitiveness of the environmental market, McCabe is optimistic that it “has the potential to grow as more insurance purchasers become aware of their environmental exposure.”

the market opportunity tends to be toward the not-so-obvious exposures.”

Williams encourages brokers and agents to partner with trusted carriers to develop client-specific pollution exposure summaries and tailored environmental coverage for those businesses. “It is also imperative to provide clients an understanding of costs associated with environmental coverage so that pollution insurance costs are incorporated into future insurance budgeting cycles,” he says.

With so many businesses requiring both environmental coverage and information about what that even means, educated agents will no doubt find that opportunities, like the environment itself, are everywhere.

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IBA 1.2019 Environmental Issue-Final.qxp_Layout 1 12/18/18 2:01 PM Page 1

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FEATURES

BROKERAGE INSIGHT

Executive experts Risk Strategies’ Iyan Alfredson and John Morahan explain the intricate exposures directors and officers face in an era marked by #MeToo, regulatory risks and other challenges

IBA: How have movements such as #MeToo impacted executive liability?

Iyan Alfredson: It has been an important development in the D&O and employment practices liability market. Ever since the New York Times ran the report with allegations against Harvey Weinstein, it has been a constant topic of discussion in the industry, particularly during renewal meetings. It’s prompting underwriters to ask not just the typical employment practices questions, such as “What type of policies and procedures do you have around mitigating sexual harassment claims?”, but also “What are you doing at the board level to manage against these actions happening?”

John Morahan: We are also seeing that the volume of claims filings at the EEOC have increased over the past year. Underwriters are reporting that companies they insure are going beyond sexual harassment training, getting down into the weeds and talking about sensitivity training with employees and management. We’re also seeing underwriters increasingly interested in whether a company has binding arbitration agreements with their employees, as these lower the risk of employees suing that company.

IA: That’s a really important point. I think because of the #MeToo movement, we are seeing states pass legislation. New York is probably at the forefront; it just passed a law

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forbidding arbitration of claims for sexual harassment because that’s a way for companies to lower their exposure.

IBA: What are the primary risks and exposures for executives today?

JM: We still think there is regulation exposure for financial institutions and their executives.

From a D&O perspective, underwriters are regularly asking, “Has the SEC been in for a presence exam?” or “Has the SEC examined the books?”, because that may indicate potential for the SEC to bring forward a formal investigation. In some cases, if a client is going through an SEC exam, insurance companies refuse to write the risk unless they can review the exam results.

People might think President Trump is rolling back all regulations, but they’re still in force and remain a major exposure for financial institutions and their management teams.

IBA: Are there any areas where you find

executives are often underinsured?

JM: Something that’s underestimated and a huge issue is the process for handling a big claim or big litigation. Companies need to know who their law firm will be and the legal rates the insurance company will apply in the event of a lawsuit. Insurance companies want to keep costs down, and they won’t want to pay $1,400 for a top lawyer; they will want to pay $800. If a company has a $5 million defense expense and a litigation turns into a $15 million problem, then that’s a lot of money coming out of the company.

We typically negotiate coverage with preapproved defense counsel selection and also negotiate the legal rates for the lead attorney, the associate and the paralegal into policies.

You can negotiate a great policy that covers everything, but the bottom line is that people buy these policies for the defense. When you are a board director and your personal assets are at stake, you don’t want to hear that the law firm is arguing about rates and what rates

A FOUNDATION OF EXPERTISE Senior vice presidents and co-leaders of Risk Strategies’ national executive liability practice, Iyan Alfredson and John Morahan co-founded the practice more than 10 years ago. Boasting more than 20 years of experience each, Morahan specializes in high-level executive liability solutions with an emphasis on contract analysis, program structure and performance of policies. Alfredson’s areas of specialization include D&O, EPL, fiduciary and E&O for financial institutions.

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“Underwriters are reporting that companies they insure are going beyond sexual harassment training, getting down into the weeds and talking about sensitivity training with employees and management” Risk Strategies national executive liability practice co-leaders Iyan Alfredson (left) and John Morahan (right)

an insurance company will reimburse you for, so it is a big issue.

IA: Another thing we focus on is balancing the D&O insurance so there is a dedicated limit for personal assets, which is called Side A D&O insurance. It’s a special kind of insurance that is only for board directors; there is no entity coverage, and it is payable in the event a company doesn’t indemnify a director.

If you sit on a board, you have a lot of exposure and should protect your personal assets in the event of shareholder lawsuits or M&A claims. If you only have a $5 million D&O policy, the entity can eat the whole limit. So we often structure a Side A policy

just for the personal assets of the directors and officers.

IBA: How do you stay abreast of trends and risks in executive liability?

IA: That is really important because financial lines change from year to year. It is an industry where you have to keep on top of litigation trends, lawsuits and Supreme Court decisions. We also constantly stay on top of what’s happening with our trading partners and our insurance companies. You always have to be curious, and you always have to be learning because that’s how you stay on the cutting edge.

FAST FACTS: RISK STRATEGIES Year founded: 1997 Headquarters: Boston Leadership: Mike Christian, CEO; John Mina, president; John Vaglica, CFO; Janis Simat, chief human resources officer Number of specialty practice areas: 25+

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FEATURES

SECTOR FOCUS: CANNABIS

Cultivating growth Cannabis is an emerging insurance sector that brokers should take the time to study and consider getting into THE GROWING legal cannabis industry can present exposures to insurers and businesses in a multitude of different ways – some of which aren’t inherently obvious. Physical dispensaries give rise to legal liability exposure, while online dispensaries must insure against cyber threats. Other necessary covers include management liability for everything

holders, companies manufacturing extraction equipment, temporary staffing companies providing labor to cannabis businesses, and chemists and extraction contractors.

Claims in this space can range from fire at a growing facility – whether that’s indoors, where a failed lighting fixture could trigger a fire, or outdoors in a rural area that’s exposed to wild-

“The addition of new carriers has had a positive impact on the quality of coverage available, with enhanced coverage options appearing on the market that were not previously available” Norman Ives, Worldwide Facilities from stock price fluctuations to workplace exposures brought on by the possibility of cannabis consumption among employees.

Companies holding a state license to grow, manufacture, transport or run a cannabis dispensary need insurance to meet state regulatory requirements. But many other cannabisrelated business also need tailored coverage, including landlords renting to cannabis license

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fire risks – to property damage and inventory loss resulting from a break-in at a dispensary.

“One area of loss many don’t think about is non-owned auto – employees using their cars for a quick business errand [might] cause an accident, creating a liability exposure for the business,” says Norman Ives, a P&C broker and cannabis specialist with Worldwide Facilities.

The key coverage features of cannabis insur-

ance vary depending on the activity involved.

Small dispensaries can usually get coverage through a business owner’s policy that covers property and liability losses, while larger entities might be better served by stand-alone commercial property and general liability policies. Testing labs might need professional liability coverage to protect them in case of an error in their testing procedures, while cannabis growers typically need crop coverage.

“Policyholders should pay attention to exclusions covering activities related to marijuana or activities considered to be illegal on a federal basis,” advises Karen Landrum, consulting actuary at Merlinos and Associates. “They should also check their products and general liability policies for coverage such as errors & omissions, coverage for vaporizers or bodily injury due to inhalation.”

Meanwhile, Ives points out some important things to look for that aren’t automatically included in cannabis policies, including equipment breakdown coverage for extraction equipment, assault and battery coverage for employees fulfilling security duties, and product liability coverage to protect against allegations of sickness or disease associated with the consumption of cannabis products.

An evolving market The major stumbling block in the cannabis space is its historical associations with illicit drugs and criminal activity – several large insurers don’t want to be associated with a drug that remains illegal at the federal level and in many other parts of the world. For that reason, Lloyd’s doesn’t sanction insuring of US businesses, even in states where cannabis is legal both for medical and recreational use.

Many large US carriers are also uncomfortable with the cannabis market.

“At the moment, the insurance industry really isn’t supporting the cannabis industry the way it should be, and that’s true in Canada, too, where we got that full federal and provincial legality,” says Andrew Holmes, chief under-

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ORDINARY PEOPLE GETTING THE EXTRAORDINARY DONE

A TURNING TIDE Although still illegal federally, marijuana legalization has gained widespread support at the state level. Nine states and the District of Columbia allow both medical and recreational consumption, while another 21 states have legalized medical cannabis.

21

9

16

4

Medical Recreational Cannabidiol None only and medical (CBD) only Source: CNN

“There are many barriers to [entry] that carriers and producers face in this market, but it is also ripe for competition, innovation and differentiation in the market” Karen Landrum, Merlinos and Associates writing officer at CFC Underwriting. “Part of the problem with the insurance industry … is insurers have been chasing the same business and trying to win it over other insurers. If they actually chase new buyers of insurance in new sectors that are coming to the market for the first time, there’s a much more interesting opportunity … to take the time out to understand the sector, [its] exposures and come up with the product the customers want to buy.”

Holmes explains that CFC was attracted to the cannabis industry because it saw an opportunity to position itself as a new economy insurer. In 2019, CFC is looking to add product recall and general liability to its cannabis offering because Holmes believes cannabis is more likely to be consumed like alcohol than medicine going forward.

Ives sees the cannabis insurance market as

one that’s constantly evolving in response to the regulatory environment and political pressures.

“Overall, the liability/casualty market has seen the addition of several carriers in 2018, which has improved the availability and reduced the relative premiums charged for cannabis policies,” he says. “The addition of new carriers has also had a positive impact on the quality of coverage available, with enhanced coverage options appearing on the market that were not previously available.”

Meanwhile, Landrum notes that current market conditions are heavily framed by insurer and reinsurer appetite, pressure from state departments of insurance to produce fair and equitable products, new insurtech startups and other market innovations, and demand from investors who are looking for new opportunities to diversify their portfolio.

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FEATURES

SECTOR FOCUS: CANNABIS

A GROWING WORKFORCE “The cannabis market is expected to grow dramatically and expand to other jurisdictions,” she says. “There are many barriers to [entry] that carriers and producers face in this market, but it is also ripe for competition, innovation and differentiation in the market. For those that are seasoned already in the insurance industry, this is a new expansion opportunity that doesn’t come too often.”

Landrum expects 2019 bring “an increase in the number of admitted products we see in the market, including states other than California, and that we will also experience [the] success of those [that laid] the groundwork in 2018 and earlier to sell and produce their own products. As the cannabis industry ages, regulations get tested, claims get submitted, and the insurance market learns more about this new exposure, there will be increased interest to enter the market by carriers and reinsurers. This expansion will contribute to better pricing and better policies for the insureds working in the cannabis industry.”

Looking to the future of cannabis insurance, Holmes points to what has happened in the cyber market. “If you take cyber as a proxy – now a burgeoning and large market – people who took the time to understand [it] five to 10

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Employment in the cannabis industry experienced a big jump in 2018 and is now on par with many other mainstream professions.

Telemarketers Bus drivers Kindergarten teachers Cannabis industry (2018) Librarians Detectives Cannabis industry (2017) Pilots Coal industry

216,600 179,300 154,400 125,000–160,000 138,200 110,900 90,000–110,000 84,000 49,650 0

50,000

100,000

150,000

200,000

250,000 Source: Marijuana Business Daily

years ago are really reaping the rewards.”

How to get in The cannabis space is filled with creative, innovative entrepreneurs who are forced to constantly evolve their business practices and operations to meet shifting regulatory requirements. Ives stresses how important it is for agents to get to know their clients well.

“Don’t assume the policy form, underwriting process or available coverages are similar to any policy you have placed before,” he says. “Auditable policies, retroactive product liability considerations, restrictive endorse-

ments, extensive COI requirements and other cannabis-specific considerations are all important conversations that a broker/agent must consider.”

For Landrum, networking and spending time understanding the market with the help of experienced partners improves growth potential. “Developing relationship with partners like Merlinos, which [has] been working with emerging risks, difficult markets and navigating the regulatory world of insurance with a proven track record, is well worth the investment and contributes to the overall quality of your insurance product,” she says.

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FEATURES

PRODUCTIVITY

RE: RE FWD: FWD: Re Bill K TX The big event is approaching. Contract attached.

(No subject)

Don’t let sloppy emails ruin productivity Is email taking up too much of your time?

Carson Tate explains how to regain control 60

Wait a minute – what? These emails were just sent to me, and I have no idea what any of it means. To make matters even worse, these are just a few of the daily examples of friends and colleagues not using email effectively. And almost immediately upon arrival, they turn my inbox into a slovenly mess.

In writing my book, Work Simply, I did a lot of work to understand how we are using email effectively – or not. I discovered that we’re all bogged down by the sheer volume of email. And it takes a lot of time for us to slough through that volume because these emails are unclear, ambiguous and flat-out sloppy. Discerning exactly what we need to know or do and determining if a response is needed requires a lot of our attention and focus.

These sloppy emails waste your time. And they cost you hours each week. Which means they’re also costing you money.

When you feel like you’re drowning in a sea of sloppy, thick mud in your inbox, how do you begin to clean up the mess – and then how do you prevent it from reoccurring?

Automate your responses to unclear messages When you receive an email message that is unclear, vague or just causes you to say “What?”, send a response asking for additional information or clarification. To do this quickly, use a text expander software app like FastFox for PCs or Text Expander for

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Mac. A text expander works in any program, including your email platform, and allows you to insert commonly used text with just a keyboard shortcut. No longer will you waste your precious time typing out a response – you can reply automatically within seconds.

Craft more effective email messages Dramatically reduce the volume of emails you receive by crafting more effective messages that are understood upon opening and do not require multiple back-and-forth emails asking clarifying questions. To craft more effective emails, answer four key questions in every single email you send: who, why, what and how.

you were sitting across a table from them and discussing the topic in person.

WHAT? Ask yourself a series of ‘what’ questions to help shape the content of your email.

What is the purpose of the email? What are the main points to be communicated in this email? What are the key facts? What references or research data need to be included?

What must everyone know? Do not hit the send button until you have included every piece of detail required.

HOW? Ask yourself how you want recipients to respond. Describe this explicitly in your email. If there’s a deadline, say so. If

To craft more effective emails, answer four key questions in every single email you send: who, why, what and how WHO? This breaks down into two sub-questions: Who needs to respond to, take action on or make a decision about this information?

Put their name(s) on the ‘to’ line. Who needs to know this information? Put their name(s) on the ‘cc’ line.

WHY? Look back at the names on the ‘to’ and ‘cc’ lines. For each name, ask yourself: Why is this person involved in the project? Why am I emailing them? Why do they need to know?

Why does this information matter to them?

Why does it matter to the broader organization? Then think about what you know about those individuals – their interests, needs, backgrounds and communication styles.

Make sure the tone, style and content of your email matches up – just as you would choose appropriate words, tone and body language if

you want an email response, say that. If you need suggested dates for a meeting, names of possible project participants, a list of questions or key ideas to be considered, or any other specific input, describe it. Never assume that people will understand what you want – tell them as straightforwardly as possible.

Use the subject line to improve email response time Please, never let yourself hit the send button while the subject line of your email reads ‘RE:RE’ or ‘FWD:FWD,’ or some cryptic phrase that relates to a prior email message.

Why? Because when you send an email like this, you’re sending a message into the world with an unclear purpose. Do not be part of creating the email pigsty we have come to expect and accept.

The subject line of your email message is your topic sentence. It clearly states the topic of the email. A clear subject line is essential if you want to communicate effectively and improve both the quality and response time on the email messages you send. Make sure the subject lines on your email messages reflect the current topic, purpose or desired outcome. When you respond to an email you’ve received, change the subject line to make it current and clear.

Consider using some of the following standard email subject lines: Action required – DATE FYI – 3rd paragraph client X mention Update: TOPIC Reply by – DATE NRN – No response needed EOM – End of message The last subject line above, EOM, is an especially powerful one. Here’s how it works: when you have a short, simple message to convey, type the entire email in the subject line of the email, and put EOM at the end.

(For example, “Tuesday marketing meeting moved to 2 p.m. EOM.”) Now your recipient doesn’t have to open the email message, saving them precious minutes.

It’s time to take back control and clean up the pigsty that’s disguising itself as your inbox.

Carson Tate serves as a consultant and coach to executives at Fortune 500 companies, including AbbVie, Deloitte, EY, FedEx and Wells Fargo. The author of Work Simply: Embracing the Power of Your Personal Productivity Style, her views have been included several publications, including Fast Company, Forbes, the Harvard Business Review blog, The New York Times and more. For more information, visit workingsimply.com.

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After sold out events in Chicago, New York, Houston and Los Angeles – the IBA Women in Insurance Conference is back!

Join us in Atlanta and Miami to gain access to:  Networking opportunities with empowering industry leaders  Strategies for leadership development in the workplace  How to tackle the biggest issues that women in insurance encounter today Register with the code WOMENINIBA to save 20% on the full ticket price!

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02 PM

PEOPLE

CAREER PATH

BORN TO LEAD

The ability to guide and inspire his staff has been pivotal to Matt Shulman’s career success Shulman started out studying art history at Cornell before having an epiphany halfway through his sophomore year that business was where his true interest lay. Summer internships at a midtown Manhattan insurance brokerage opened his eyes further.

“My uncle had a successful career in insurance. He was a self-made man; I looked up to him as a role model. He helped me get a foot in the door.”

1992

GETS A FOOT IN THE DOOR

1995

FINDS HIS BIG BREAK In the days prior to graduation, Shulman interviewed at some of the bigger investment banks without success, but a meeting with a frat alumnus at a campus event ultimately provided the stepping stone to his first insurance job.

“He said, ‘If you’re interested in being a financial analyst, you would love being a D&O underwriter,’ so I interviewed at Reliance. My final position was leading two regional teams, which included training others – it was robust on-the-job training.”

1999 GOES TO LAW SCHOOL A pivotal recommendation from his mentor led Shulman to alter his plans to pursue an MBA; instead, he attended law school at night.

“There were so many close ties between law and insurance; it was such a meaningful part of the job. I told my mentor I was thinking about going back to business school, and he said my interest in the legal and contract side of it meant I should go to law school instead.”

2003 BECOMES A VP Shulman’s division at Reliance was sold to The Hartford, where he was appointed vice president before the age of 30.

“The law degree helped [secure the promotion], and I’d always managed people. Moving to The Hartford showed us what we could accomplish working for a powerful company – the amount of business we wrote doubled in the first year. It gave us the platform to be a more meaningful partner for our clients.”

2009 JOINS ARCH The Hartford’s struggles during the financial crisis led Shulman to Arch, where he started off managing a team in executive assurance and was soon offered command of a second division.

“I would describe Arch as a smaller up-and-comer [when I joined]: fast-growing, very successful and with a lot of potential.

When Arch realizes someone is good at leading a business, they strive to broaden that person’s perspective.”

2018 BECOMES CEO FOR NORTH AMERICA Having already broadened his responsibilities when Arch’s Bermuda team was added to his portfolio, Shulman was approached late last year to be CEO of North American insurance operations.

“For the last couple of years, I’ve been leading a very diverse organization with multiple product lines and business from multiple geographies. That experience will be helpful now, coming back to the US market. I can bring a closer connection between the North American and the international operations.”

2016 MOVES TO LONDON The same mentor who encouraged Shulman to choose law school – who had risen to the position of worldwide CEO of insurance at Arch – gave him the opportunity to run the company’s European operations from London.

“It meant jumping from two divisions with a couple of different product lines each to being CEO of an entity that writes many lines across numerous countries. I was open with everyone that I had a lot to learn – the first months were spent asking many more questions than I was answering” www.ibamag.com

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PEOPLE

OTHER LIFE

TELL US ABOUT YOUR OTHER LIFE Email iba@keymedia.com

Heath has competed in both 500-meter swim a nd 13-mile cycling sprint events

8

Number of workouts Heath completes each week

$2,300

Price of Heath’s competition bike, a gift from her husband

10

Triathlons in which Heath competed before switching to aquabike

TWO OUT OF THREE Aquabike – the bike and swim portions of a triathlon – puts broker Rae Heath in a race with herself RAE HEATH first found endurance sports as a result of a series of charismatic spinning instructors who encouraged the Austin-area associate broker to shift her cycling to the outside world – specifically, to a group that practiced “short sprintdistance triathlons.”

“My first race was cold and rainy – and

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I had a blast,” Heath says. “It was about pushing myself – we swam 700 meters in the lake, biked 14 miles and ran three miles – and I really surprised myself.”

Knee problems eventually compelled Heath to switch to aquabike, which cuts out the running portion of the triathlon.

Since then, she has competed in two

events and now has her sights set on qualifying for the International Triathlon Union Multi-sport Championship in Spain in 2019.

“You’re always competing with yourself and finding out how much you can do,” she says. “You have the choice of going home and watching TV or doing your workout.”

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Expect big things in workers’ compensation. Most classes approved, nationwide. It pays to get a quote from Applied.® For information call (877) 234-4450 or visit auw.com/us. Follow us at bigdoghq.com. ©2019 Applied Underwriters, Inc., a Berkshire Hathaway company. Rated A+ (Superior) by A.M. Best.

Insurance plans protected U.S. Patent No. 7,908,157.

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