IBAMAG.COM ISSUE 8.11 | $12.95
f o L L A H
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IBA celebrates 26 of the industry’s most dedicated and inspiring leaders CYBER INSURANCE SPECIAL REPORT A deep dive into the latest cyber trends, threats and solutions
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EMPLOYMENT PRACTICES LIABILITY
What new risks has COVID-19 opened up in an already difficult market?
ROCKY POLITICAL TERRAIN
How insurers are approaching political risk during a time of instability
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ISSUE 8.11
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CONTENTS
f o L L HA
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2020
twitter.com/InsuranceBizUS facebook.com/InsuranceBusinessUS
06
UPFRONT 03 Editorial
The benefits of focusing on employees’ mental health
04 Statistics
Key data that should be on your radar this month
08 Intelligence UPFRONT
NEWS ANALYSIS At a time of rising tensions worldwide, how are insurers approaching political risk?
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INDUSTRY ICON
2
12 Technology update
The key to an effective automated claims process
16 Opinion
48 Other life
FEATURES
SUCCESS IN THE MIDST OF CRISIS
Kevin Callahan of the Renaissance Alliance network on how independent agencies can seize the opportunities presented by COVID-19
As head of broker and customer engagement at Berkshire Hathaway Specialty Insurance, Lori Spoon makes sure that brokers’ and clients’ needs always come first
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How the pandemic has impacted workers in the construction and manufacturing industries
PEOPLE
HALL OF FAME
PEOPLE
10 Workers’ comp update
Why it’s time for the industry to take a hard look at commissions
SPECIAL REPORT
IBA honors 26 industry veterans who have helped shape the insurance business over the past 35-plus years – and continue to do so today
This month’s big movers, shakers and new products
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Inside the workshop of insurance analyst and woodworker Sally Delp
SPECIAL SECTION
CYBER INSURANCE REPORT 2020
FEATURES
FUEL TO THE FIRE Employment practices liability insurance is under pressure as workers start to return to the office
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UPFRONT
EDITORIAL
www.ibamag.com MAY 2017 EDITORIAL Managing Editor Paul Lucas Editor Bethan Moorcraft Journalists Brendan Day, Alicja Grzadkowska, Ksenia Stepanova, Mia Wallace News Writers Lyle Adriano, Terry Gangcuangco, Roxanne Libatique, Gabriel Olano Staff Writers Tom Goodwin, Mallory Hendry, Kasi Johnston, Ryan Smith Copy Editor Clare Alexander
CONTRIBUTORS Charlie Wilmerding
ART & PRODUCTION Designer Joenel Salvador Production Coordinator Kim Kandravy Traffic Manager Ella Dayandante
SALES & MARKETING Vice President, US Market Cathy Masek Vice President, Sales John Mackenzie Media Sales Manager Desiree McCue Global Head of Media Marketing Lisa Narroway
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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 gemma.powell@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
Prioritizing mental health
T
ake a moment. Take a breath. It’s human nature to sometimes need to step away from a situation and restore our mental health. It’s not always easy to escape our mental demons – especially when they’re triggered by something as complex and overbearing as a global pandemic – but it’s something we all need to do, and it’s something all employers must acknowledge. The coronavirus has disrupted life as we know it, causing mass uncertainty, distress and anxiety. On top of questions pertaining to the virus itself, people around the world are trying to get by on reduced hours and wages while also caring for their families, homeschooling their children and hitting pause on normality by social distancing. The COVID-19 pandemic, while the dominant force shaping our lives today, has only exacerbated an issue that has been top of mind for many organizations, including those in the insurance industry, for some time, which is that it’s in everyone’s best interest when people are as mentally healthy as possible.
Happy and healthy employees are typically more engaged and more able to perform to their best of their ability It’s not just systemic events like pandemics or natural catastrophes that put a strain on mental health; often, the triggers are much more personal and can be tied to an individual’s perceived identity. That’s why it’s critically important for companies to embrace differences and to allow employees to be their authentic selves in the workplace. In September, Dive In – the festival for diversity and inclusion in insurance – welcomed more than 10,000 insurance professionals from around the world to virtual events focused on the development of inclusive workplace cultures. Many inspiring personal stories were shared, including one of a transgender woman in the US who suppressed her true identity for decades and suffered several mental health crises and an attempted suicide as a result. When she introduced her authentic self to the world and the workplace, her mental health improved dramatically – and so did her professional performance. The business case for supporting a mentally healthy workforce is simple: Happy and healthy employees are typically more engaged and more able to perform to their best of their ability than those who are struggling with their mental health. Although it might be hard to quantify, this will inevitably have a positive impact on a company’s bottom line over time, making prioritizing mental health a win-win scenario. The team at Insurance Business America
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 PROTECTION GAPS REACH NEW HIGHS
2 Canada
15 MOST RESILIENT COUNTRIES IN THE WORLD
11
0.81 0.70
Austria
0.69 0.64
2019 Resilience Index 2020 Resilience Index (projected)
$1.24 trillion
14 United Kingdom
COVID-19 DEALS A BLOW TO GLOBAL RESILIENCE
Combined global insurance protection gap for mortality, health and natural disaster risks in 2020, up from $1.2 trillion in 2019
0.74 0.41
5 United States
0.80 0.58
The COVID-19 crisis has sent the global economy into recession at a time when countries around the world already had less shock-absorbing capacity than they did before the last major global economic meltdown, according to a Swiss Re Sigma report. Government stimulus packages have helped soften the impact of the pandemic, but these come at the expense of resilience, which Swiss Re estimates will fall by 20% in 2020 compared to 2019 levels. The insurer expects its Resilience Index in virtually all countries to worsen in 2020, with some countries – including Brazil, the UK and Japan – hit harder than others.
$588 billion
Global health protection gap for 2020, up from $559 billion in 2019
13 Chile
0.66 0.65
WHERE TO FOCUS POST-PANDEMIC
$427 billion
Global mortality protection gap for 2020, up from $420 billion in 2019
Incumbent insurers and insurtechs generally agree on which areas of the insurance business need the most focus once the COVID-19 pandemic subsides. Both types of companies plan to put an increased emphasis on crisis-proofing their business processes, improving the digital experience and prioritizing real-time responses.
Insurers
Insurtechs
100% 80% 60%
$227 billion
Global natural catastrophe protection gap for 2020, up from $222 billion in 2019 Source: Sigma Resilience Index 2020, Swiss Re
4
40% 20% 0%
94%
89%
Digital experience
90%
91%
Crisis-proof processes
87%
85%
Responding in real time
86%
79%
Being a caring partner
70%
74%
Insurance as a utility
Source: World Insurtech Report 2020, Capgemini and Efma
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LIFE SCIENCES FIRMS FACE D&O PRESSURE
3 Finland
12
0.80 0.67
The pandemic has made renewals challenging for life science companies’ D&O cover, according to Willis Towers Watson. The sector is seeing heightened underwriting scrutiny of D&O exposures, on top of the continued firming of primary and excess rates.
South Korea
0.67 0.66
6 Norway
0.76 0.65
MAXIMUM INCREASE
PROJECTED D&O RATE INCREASES FOR LIFE SCIENCE COMPANIES 8 Sweden
4
0.71 0.68
Netherlands
0.75 0.75
9 Germany
Australia
70% 60% 50%
Denmark
40%
0.72 0.69
15
0.84 0.80
MINIMUM INCREASE
Switzerland
90% 80%
7
1
100%
10 0.71 0.66
0.71 0.69
110%
New Zealand
0.66 0.55
30% 20% 10%
Publicly traded pharmaceutical and biotechnology companies
Source: Life Sciences Insurance Marketplace Realities, Willis Towers Watson
Source: Allianz Global Insurance Report, July 2020
TOP DRIVERS OF CYBER INSURANCE SALES Headline-grabbing cyber losses continue to motivate businesses to purchase cyber insurance, according to a recent survey from PartnerRe and Advisen. Sixty-eight percent of brokers ranked this as one of their clients’ top three reasons for purchasing cyber insurance, compared to just 56% a year prior. News of cyber-related losses experienced by others
Regulatory changes
16% Cost
46% Increased education
14% Risk mitigation services
41% Board or senior management demand
35%
Captive insurers are increasingly writing cyber risk, according to Marsh’s recent survey of captive regulators around the world, who noted that this exposes captives to considerable risks, as well as more complicated governance and compliance.
NEW AREAS OF RISK THAT CAPTIVES ARE WRITING MORE FREQUENTLY
Breadth of coverage
54% Required by a third party
CAPTIVES WRITING MORE CYBER RISK
31%
68% Experiencing a cyber-related loss
Public medical Private pharmaceutical device and other life science companies companies
10% Good salespeople
9% Source: Cyber Insurance – The Market’s View, PartnerRe and Advisen
30% Cyber
21%
3%
Professional indemnity
27% Employee benefits
9%
Property
6%
Terrorism
3%
Environmental liability
Tenant liability
Source: Marsh 2020 Captive Landscape Report
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UPFRONT
NEWS ANALYSIS
Insuring geopolitical instability Between trade war threats, civil unrest and divergent responses to COVID-19, the global geopolitical landscape is more uncertain than ever. So how are insurers approaching political risk right now?
THE GEOPOLITICAL climate is the most turbulent it has been for several decades. From the threat of a full-scale trade war between China and the United States to the rise of global movements protesting matters from racial injustice to climate change, the current global political environment has no shortage of contentious issues. The evolution of political risk over the last six months has been driven by the COVID-19 pandemic and the response to it, says Jeremy
general concern is the political instability element of the crisis,” says Tarun Chopra, president and CEO of Clements Worldwide. “The pandemic and the response – or the lack of response, depending on the country and the region – is putting a lot of pressure on governments, economies and households. This originally started with the perceived shortage of food, where there were lines of people looking to stock up, and then its impact on jobs and medical supplies. And
“From an insurance perspective, the general concern is the political instability element of the [COVID-19] crisis” Tarun Chopra, Clements Worldwide Shallow, head of specialty at ArgoGlobal. While on some levels, the crisis has created a sense of the world uniting against a single ‘enemy,’ it has also been used as an opportunity for attack, Shallow points out, and the impact on people’s sense of security has been significant. “From an insurance perspective, the
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that creates a source of political discontent and, in some cases, civil unrest.” When examining the current geopolitical landscape, there’s no denying the impact of COVID-19, says John Minor, national practice leader for political risk at Aon. The pandemic has had a profound and severe impact on virtually every economy in the
world. In addition to the staggering loss of life, it has impacted everything from healthcare infrastructure to economic production. “COVID has led to an unprecedented amount of government interference on economies,” Minor says. “That has had a huge impact on the geopolitical landscape. So, at least in the immediate short term, over the last six months, governments have intervened by shutting down aspects of the economy and forcing people to stay at home and businesses to shut down. And that has had a huge impact on a lot of economies around the world.” Minor says the immediate impact of government intervention in economies is being seen right now. In the long term, however, the question remains how this will continue in certain countries, particularly those that have elected populist leaders promoting protectionist policies. “In a way, COVID takes the more unseemly aspects of this to create a fear of the outsider, and so it almost reinforces an isolationist kind of mentality and sentiment,” Minor says. “And
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THE EVOLVING GEOPOLITICAL RISK LANDSCAPE
60% Percentage of countries that have been exposed to some form of civil unrest or riots in 2020
53% Proportion of extreme right-wing terrorist attacks in 2019 that occurred in the United States
197 it really bolsters those populist and nationalist policies or those who promote them. But the big question is whether COVID, or the next virus, is going to continue to be used to justify isolationism and protectionism, both of which have a direct impact on cross-border trade and investment.”
“These are the kinds of risks that require attention, despite not having occurred yet, because they are relevant from a general business and economic perspective, as well as from an insurance perspective,” he says. “The insurance industry is looking to protect people and protect assets, and any discrim-
“The big question is whether COVID is going to continue to be used to justify isolationism and protectionism” John Minor, Aon COVID-19 could amplify the current wave of populist backlash to globalization, Chopra says, because a lot of countries are trying to secure their borders and put some level of export and import controls in place, which could have implications on foreign ownership of local companies or the confiscation of assets by local governments.
inatory actions by governments towards foreign investors will have far-reaching implications on this.” Shallow notes that with each new crisis, there is an expectation that it will spur increased interest in political risk products, but it doesn’t always directly follow. Political risk has been through a considerable growth
Number of countries that have seen their economic risk increase since January 2020, according to Marsh JLT Specialty
1 US domestic politics’ ranking among Eurasia Group’s top risks for 2020 Sources: Aon, Marsh, Eurasia Group
period in the last couple of decades, he says, but the opportunity for higher penetration rates remains huge. “The scale of the impact of this event has certainly highlighted significant underinsurance across the board,” Shallow says. “However, the challenge with converting that into new policies is that almost every company is under financial pressure at the moment. Brokers and underwriters need to convince clients of the worth of increasing spending on insurance – even at a challenging time – to protect themselves in the future.”
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UPFRONT
INTELLIGENCE CORPORATE ACQUIRER
TARGET
PRODUCTS COMMENTS
AssuredPartners
People’s United Insurance Agency
AssuredPartners’ purchase of the Connecticut-based agency, formerly part of People’s United Bank, is valued at $120 million
Bold Penguin
RiskGenius
Bold Penguin hopes to leverage RiskGenius’ specialty in machine learning to boost its efforts to digitize commercial insurance
Claim Central
Livegenic
Livegenic is now wholly owned by Claim Central, which has been a key investor since 2017
CRC Group
Specialty Risk Associates
The acquisition boosts CRC’s capabilities in binding, transportation and personal lines, particularly in Louisiana, Mississippi and Texas
Davies Group
TriPlus Service
The purchase of long-term care insurance specialist TriPlus furthers the British insurance group’s North American expansion efforts
G&G Independent Insurance
Arkansas Insurance Advisors
The deal will expand Fayetteville, Arkansas-based G&G’s presence in the Little Rock area
Gallagher
Erin P. Collins & Associates
Erin P. Collins & Associates is an Arizona-based employee benefits and workplace well-being consultancy with offices in Kingman and Phoenix
Worldwide Facilities
Hunt Jorgensen
The addition of the New Jersey MGU will boost Worldwide Facilities’ capabilities in professional liability insurance and related risk management services
CRC Group snaps up Louisiana MGA
CRC Group has continued its 2020 growth spurt with the acquisition of Specialty Risk Associates, an MGA and surplus lines broker based in Shreveport, Louisiana. The acquisition boosts CRC’s capabilities in binding, transportation and personal lines – all areas where it has invested heavily over the last year. Specialty Risk Associates will be integrated into CRC Group’s commercial solutions division over the coming months. “We have long admired and respected the Specialty Risk Associates team,” said CRC Group CEO Dave Obenauer. “They are proven leaders in the binding, transportation and personal lines segments across Louisiana, Mississippi and Texas. We are excited to welcome them into the CRC Group family.”
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Swiss Re, Hitachi partner on digital risk solutions
Swiss Re Corporate Solutions has teamed up with Hitachi Europe to develop digital risk solutions. Their first offering will focus on the manufacturing machinery and transport industries, insuring against business interruption while helping customers embrace AI and new technologies to maximize productivity, increase automation, implement contactless operations and reduce downtime. Swiss Re Corporate Solutions CEO Andreas Berger said this will enable Swiss Re to “price risk more precisely, ensure effective payout mechanisms and provide a seamless risk management experience.”
Sompo International adds D&O for public companies
Bermuda-based P&C insurer Sompo International has introduced a new directors & officers liability insurance policy form for publicly traded companies. The publicly traded D&O product is the latest addition to the Sompo International Management Assurance Platform (MAP), which was launched last year to provide private companies with the ability to customize their coverage selections in a single tailored policy. In a bid to respond to the evolving needs of the public D&O market, this move expands the platform to publicly traded companies of all sizes.
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PEOPLE Great American tees up program for golf clubs
Great American Insurance Group’s alternative markets division has launched a new insurance program for golf and country clubs across the US. The program was developed in conjunction with VGM Insurance Services, an Iowa-based specialty insurer with 30-plus years of experience in a variety of niche industries, including golf and country clubs. “We are really excited to be teaming up with such an experienced group of specialists,” said Rich Suter, divisional president of Great American Alternative Markets. “VGM’s subjectmatter expertise with golf courses and country clubs is going to offer us a tremendous competitive advantage.”
Optio Group offers active assailant cover
Optio Group has added active assailant cover to its growing political violence and terrorism (PVT) proposition, which also includes Lloyd’s capacity to underwrite terrorism, strikes, riots and civil commotion across both Canada and the US. The active assailant cover will be tailored for the North American market and distributed via the Optio Connect platform. PVT team leader Chris Kirby called the active assailant product “a natural addition to our PVT portfolio, building on our proven ability to provide clients with robust financial protection and react quickly to events as they occur.”
Cowbell Cyber launches comprehensive cyber cover
Cowbell Cyber has unveiled Prime 250, a stand-alone cyber insurance product that offers 25 cyber-specific coverages, organized to mirror the way businesses experience cyber incidents: firstparty loss, first-party expense and liability. Offered in partnership with Benchmark Insurance Company and Obsidian Insurance Company and backed by a panel of global reinsurers, Prime 250 offers three levels of industry-specific coverage. Policyholders also receive access to Cowbell Factors for risk rating and industry peer benchmarking, as well as Cowbell Insights for recommendations to mitigate risk exposures.
NAME
LEAVING
JOINING
NEW POSITION
Keith Driscoll
N/A
Boston Insurance Brokerage
CEO
Tamara Simpkins Franklin
IBM
Marsh
Chief digital, data and analytics officer
Mike Harnett
N/A
Everest Insurance
Chief underwriting officer, North America
Lisa Harris
Marsh JLT Specialty
CAC Specialty
Executive vice president, client service
Nicholas Hughes
N/A
PartnerRe
Head of retrocession
Seth Johnson
N/A
RT Specialty
President, RT Binding Authority
Gary King
McGriff
CAC Specialty
Executive chairman, natural resources practice
Dean Klisura
Marsh
Guy Carpenter
President
Clarisse Kopff
Allianz
Euler Hermes Group
CEO
Neil Lightbown
Allied World Assurance
Everest Insurance
Chief underwriting officer, Everest Global Markets
Suzi Morgan
Willis Towers Watson
BMS Group
Director
Erik Nikodem
N/A
Everest Insurance
Global head of property
Marc Orloff
N/A
Liberty Mutual
President of North American field operations
Jim Ryan
N/A
Sedgwick
COO, Americas
Frank Sapio
N/A
Allianz Global Corporate & Specialty
Head of claims, North America
Megan Thomas
AXIS Capital
Hamilton Re
CEO
Guy Carpenter appoints new president
Marsh & McLennan subsidiary Guy Carpenter has named Dean Klisura as its new president. Klisura has spent 27 years at Marsh in a variety of senior roles, most recently as president of global placement and advisory. In his new role, Klisura will head Guy Carpenter’s North America, international, specialty and global strategic advisory units and will assist CEO Peter Hearn in leading the firm’s overall strategic direction. “Dean’s leadership of Marsh’s placement operations, especially during this challenging time for the insurance industry, will provide our team with critical insights as they develop innovative solutions to help our clients navigate this rapidly changing market,” Hearn said.
Boston Insurance Brokerage gets new CEO
Wholesale broker Boston Insurance Brokerage (BIB) has selected Keith Driscoll as its new CEO. Driscoll joined BIB in 2013 as VP of the company’s workers’ comp division. He was later promoted to EVP and COO in 2017. Prior to joining BIB, Driscoll held positions in marketing, underwriting and sales management at Markel FirstComp. According to BIB chairman Bob Hitch, Driscoll’s promotion comes at “a time of extraordinary challenge to our industry and the economy … Keith’s past experience as a major contributing member of [our] staff will prove valuable in his new role.”
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UPFRONT
WORKERS’ COMP UPDATE NEWS BRIEFS Rising Medical Solutions updates its VISION platform
Rising Medical Solutions has launched version 3.0 of its VISION healthcare management platform, which aims to streamline claims administration and create a fully integrated, multiproduct, multiline medical management portal for its payer customers. VISION 3.0 enables single sign-on access and one-click referrals to a suite of ancillary services. It also enhances user decision-making and efficiencies through such functionality as claims and provider scoring, artificial intelligence intervention flagging, evidence-based treatment alerts, reserving and disability duration alerts, state penalty alerts, and international currency exchange.
Next Insurance expands workers’ comp offering to 24 new states
Next Insurance has made its digital workers’ compensation offering available in 24 new states, now covering a total of 30 states across the country. Available entirely online, Next’s workers’ comp coverage includes medical expenses, loss of income, retraining, permanent injury and survivor benefits, and is also available for sole proprietors. “By expanding workers’ compensation to more than half of the country, Next Insurance is taking another important step in our journey to become the onestop shop for all small businesses,” said Next COO Sofya Pogreb. The company has plans to expand the coverage to additional states in 2021.
Travelers introduces AIdriven ergonomic assessments
Travelers has begun offering business customers virtual and on-site ergonomic assessments powered by artificial
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intelligence. The new service uses AI-based technology and ergonomic research to analyze a smartphone video of a worker performing a task. The software identifies any movements or postures that could cause injuries and quantifies the risk, then produces a report that a Travelers ergonomics professional can use to develop solutions to keep employees safe.
Zurich targets companies outside the Texas state WC system
Zurich North America, in collaboration with program administrator CPro Associates, has launched an occupational accident and employer’s work injury liability policy designed for companies that have opted out of Texas’ state workers’ compensation system. Opting out of the state workers’ comp system means employers have to forgo certain common law defenses to lawsuits alleging negligence that are provided to participants in the state’s coverage. To address this gap, Zurich’s product includes liability coverage in the event of a negligence claim involving a worker injury.
Verisk acquires Medicare Secondary Payer provider
Data analytics and risk assessment firm Verisk has acquired Medicare Secondary Payer (MSP) service provider Franco Signor for $160 million. Franco Signor will become part of Verisk’s Claims Partners business, which provides MSP compliance and other analytic claim services. The addition of Franco Signor to the Claims Partners team will allow Verisk to “offer the insight and experience of the country’s top MSP experts under one roof for the benefit of the entire industry,” according to Richard Della Rocca, Verisk’s president of claims.
A tale of two industries COVID-19 hasn’t hit all industries the same way, forcing workers’ comp insurers to tailor their approach accordingly The coronavirus that causes COVID-19 spreads via aerosols generated whenever an infected person coughs, sneezes or even exhales – so it stands to reason that industries like construction and manufacturing, both of which involve workers interacting closely in the same space, would be among those most impacted by the pandemic. Yet Keith Maciejewski, vice president of corporate underwriting at Amerisure Mutual Insurance Company, has observed that COVID-19 has impacted the two industries in very different ways. “Regarding construction, the impact has been limited to this point,” he says. “In most states, construction remained an essential service, and firms were continuing to work. Our focus is now on how COVID-19 may impact the backlog of work in the construction space.” However, Maciejewski adds that insurers are expecting “additional impacts” in the construction space as 2021 nears. By comparison, the manufacturing industry has been hit much harder by the pandemic. “Not all manufacturing was considered essential, and some that could be open struggled with lack of supplies from other countries or significant reductions in demand,” Maciejewski explains. “Luckily, some shops were able to offset these impacts by transitioning their processes to support COVID-19-related needs, such as masks, hand sanitizers, etc.”
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In both industries, the workers’ compensation claims process has not been heavily impacted by the pandemic, Maciejewski says, because “much of the focus in workers’ compensation claims has been to protect the healthcare workers and first responders.” Many states have been moving to expand coverage for these essential workers under workers’ compensation laws, but this has not had a material impact on coverage for construction and manufacturing workers.”
“Much of the focus in workers’ compensation claims has been to protect the healthcare workers and first responders” Yet despite the exclusion of communicable diseases from most workers’ compensation policies, that hasn’t stopped some workers from seeking coverage under employer’s liability and other non-workers’ compensation coverages through the courts, Maciejewski says. While the cases aren’t directly related to workers’ comp, he believes they could eventually affect the insurance industry as a whole. “The results of these lawsuits warrant close monitoring,” he says, “as they could create many new challenges on different lines of business.”
Q&A
Jeremiah Bentley Vice president of marketing and community affairs TEXAS MUTUAL INSURANCE COMPANY
Years in the industry 22 Fast fact Bentley began his career at Texas Mutual in government relations before moving into marketing; he’s now responsible for the company’s advertising, public relations, communications and philanthropic efforts
Adjusting to the new normal How has the Texas workers’ compensation market responded to the coronavirus? The Texas workers’ compensation market has largely followed the Texas economy. Early on, premium declined as payrolls were cut in response to the economic downtown. However, the market has recovered as the economy has recovered.
What should businesses keep in mind as they shop for insurance while COVID-19 remains a global health issue? As has always been the case, there is no substitute for the security of workers’ compensation for business owners or their employees. Employers who carry workers’ comp provide a comprehensive safety net for workers in case of an injury on the job. When an employer purchases a policy from a licensed carrier, it also means they are protected against lawsuits arising from an injury caused by the employer’s ordinary negligence. Employers should work with their insurance agent to clearly understand the benefits and limitations of any insurance product before deciding what options are best for them. It’s also important to understand the differences among each jurisdiction, as the presumptions around COVID-19 vary from state to state.
Why is it important for businesses to retrain their employees on safety as they slowly return to work? Social distancing and good hygiene are critical to limit exposure to COVID-19 among businesses that have employees on-site. These protections may include modifications to workspaces and physical barriers to limit exposure. Employers should conduct workplace hazard assessments specific to the duties performed by their employees. Employees should practice hand-washing and strict social distancing at work, which includes not shaking hands, sharing work tools or materials, or gathering in groups. Employers should be performing routine environmental cleaning of all frequently touched surfaces.
What can businesses do to help manage their employees’ stress levels during the pandemic? Communication is critical, as workers are isolated and facing outside pressures of life. It’s very important for employers to regularly check in on their employees. Many of us have had disruptions in our personal lives with virtual schooling, limitations on movement and a variety of other ways. Many employers have employee assistance programs that provide telephonic and virtual consultations to help employees with mental health needs. Other employers are emphasizing the importance of getting up and away from the desk on a regular basis and are rolling out virtual workout classes, challenges and other creative ways to help employees maintain their physical and emotional health.
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UPFRONT
TECHNOLOGY UPDATE
The true challenge in claims automation Making the claims process efficient is one thing, but enhancing policyholders’ experience is the real test
virtually no one else could,” Peet says. “Very early on in the pandemic, we converted two major insurers to a fully digital capability. One of those took just a week, given the urgent and extreme nature of the circumstances.” While it’s difficult enough for insurers to make the leap to automated claims management, the true challenge lies in getting policyholders on board with a digital process.
“There has to be some obvious benefit for engaging in the digital channel”
As claims grow more complex, many insurers have been working to find ways to make claims management more efficient, including the use of automated claims management solutions like the one provided by 360Globalnet. “Our platform enables two key activities to take place,” explains Andrew Peet, head of operations for the Americas at 360Globalnet. “The first is the capture of key claim information in the form of text, image, video, documents, etc. This we do by sending a hyperlink to claimants, which they click and then
NEWS BRIEFS
follow a set of instructions. Once we have the data, then previously configured rules can be applied to move the claim along with as little effort as possible on the part of the adjuster.” The supply chain is integrated into 360Globalnet’s process, enabling vendors to see the claim as it’s being processed and to provide estimates on the necessary work and interact with the claimant. These capabilities have allowed 360Globalnet to bring solutions to insurers during the COVID-19 pandemic. “We’ve been able to support insurers where
Willis Towers Watson joins MuleSoft program
Willis Towers Watson’s insurance consulting and technology business has joined the MuleSoft Technology Partner Program, allowing MuleSoft insurance customers to accelerate the adoption of Radar Live, WTW’s rating tool and decision engine. WTW has released a MuleSoft Certified Connector for Radar Live, which will enable businesses to easily integrate the Radar Live tool with data from any system. The connector will be available in MuleSoft’s Anypoint Exchange platform and accessible to all Anypoint users.
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According to Peet, more than 70% of customers engaging in the claims process are skeptical about going digital due to the convoluted processes typically involved. “When considering online reporting, policyholders are almost invariably asked to create an account, then log in to report, which is why, in general terms, less than 20% of claims are reported through a digital channel,” he says. He adds that in some cases, claims still arrive to agents and brokers through fax, adding to policyholders’ frustration. “You have to make it easy to engage,” he says. “There has to be some obvious benefit for engaging in the digital channel – speed, convenience, etc. – and you have to keep everyone informed every step of the way. Only then will the full benefit of going digital be experienced.”
Davies Group acquires cloud application provider
UK-based Davies Group has signed a deal to acquire specialist cloud application provider ContactPartners, which provides bespoke customer contact technologies for insurance and financial services markets. ContactPartners helps organizations of all sizes improve their contact strategies and customer experience using a range of digital technologies. After the deal is finalized, ContactPartners will become part of Davies Group’s consulting and technology division and will be rebranded as Davies Technology Solutions.
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23/10/2020 3:24:11 am
Big data makes small business run better. We have the largest collection of actionable data in the wholesale business. That data empowers our people to provide better outcomes and more efficient results for small businesses, which means your clients can focus on making bigger decisions. It’s our way of placing you first.
crcgroup.com
OPEN
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23/10/2020 3:24:15 am
UPFRONT
TECHNOLOGY UPDATE Q&A
Becky Schroeder
The current hurdles of digital marketing
Chief marketing officer ITC
Years in the industry 9 Fast fact Schroeder co-hosts the Insurance Happy Hour podcast, where she and ITC CEO Laird Rixford discuss industry news and trends, technology, and marketing
What are the main challenges insurance agencies must address when it comes to digital marketing? Has the pandemic made things more difficult? There are several challenges when it comes to digital marketing. One of the biggest I see is having the sales processes standardized and in place. Determining when and how digital-driven leads should be followed up with is critical to success. You could be the best at generating leads via digital marketing, but if it takes you days to contact them, you’re not going to close as many as you could. The pandemic, in some ways, has actually made digital marketing easier. Consumers have shown during the pandemic that they’re more willing than ever to use digital channels to research and shop for their insurance. For example, online quote requests on ITC’s online quoting platforms were as high as 22.4% above what we normally expect to see. We don’t see this changing much, even after the pandemic is over.
What are some easy ways for agencies to increase traffic to their websites? There are many ways to generate website traffic, each with their pros and cons. Some are quick but cost money. Some don’t require upfront budget but need time and patience. One quick way is to use pay-per-click advertising, like Google or Facebook, to put your website in front of
Vertafore releases client retention tool
Insurance software provider Vertafore has launched a tool to help independent agencies increase client retention rates. The RiskMatch Retention Prediction tool, part of Vertafore’s RiskMatch platform, helps agencies identify policies at risk for cancellation or non-renewal. The tool examines more than 250 internal and external factors across market, client and agency data to analyze which renewals are at low, medium or high risk for churn, thus equipping agencies for more proactive client engagement and portfolio management.
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your target audience. You can target keywords people are searching on Google or people who fit your defined target on Facebook. This is a channel that you can quickly see results from, but you also have to keep a close eye on your budget. You can’t set it and forget it. Another way is to start blogging on your insurance agency website. This is one that doesn’t cost anything but your time.
Why should agencies pay more attention to the content on their websites? Agencies should pay attention to the content on their websites because the search engines pay attention to it. It’s how search engines determine the relevance of your website and ultimately show it to people who are looking for insurance help or information. If search engines don’t find your content helpful, you won’t get as much traffic.
Social media can be a powerful marketing tool, but it’s also a double-edged sword. What marketing pitfalls should insurance agencies avoid when building a presence on social media? Don’t make it all about you. Social media is a place to have a conversation, to show value. It can help you find leads and eventually sell policies. But before you get to that point, you have to build trust and relationships with your followers. Be helpful. Answer questions. Show who you are besides an insurance agent.
Digital wholesale E&S distributor makes its debut
Following a soft launch in six states, insurance startup Pathpoint has officially launched its proprietary platform, which connects retail agents and E&S carriers, allowing them to quote and bind E&S coverage in minutes. Claiming to be “the industry’s first wholesale digital distributor built from the ground up,” Pathpoint says its tech efficiencies allow it to distribute E&S products at a lower cost than other wholesalers. Several leading carriers in the US and London markets have already signed on to the platform.
Hyperion X Analytics names head of research
Hyperion X Analytics, the analytics and advisory division of Hyperion Insurance Group, has appointed Julian Alovisi to the newly created position of head of research. Alovisi has more than 15 years of industry experience; he joins Hyperion X from Guy Carpenter, where he served as head of research and publications. Alovisi noted that there is “a gap in the market for non-periodical, relevant, impactful research,” which he hopes Hyperion X can fill by leveraging its proprietary data.
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UPFRONT
OPINION
GOT AN OPINION THAT COUNTS? Email iba@keymedia.com
The trouble with commissions It’s time for insurance to embrace a fairer compensation model, writes Charlie Wilmerding COMMISSIONS HAVE been a fact of life for as long as there have been insurance brokers, but should they be? While businesses have always sought to contain or reduce their insurance- and risk-related expenses, insurance brokers have traditionally been paid a percentage of their clients’ premiums in the form of a commission. The more the client pays for their insurance, the more the broker makes. Brokers and agents have tried to position themselves as ‘independent’ and ‘trusted advisors,’ but in the end they are neither. I don’t mean to suggest that all agents and brokers are bad people. In fact, there are many good, ethical people in the business. It’s not the people that are the problem. The problem is the business and its compensation structure. The conflict of interest that underlies commission plagues the brokerage business at every step of the insurance-buying process, leaving customers without the leverage and power they deserve. As long as agents and brokers tie their compensation to insurance transactions, they risk becoming irrelevant as clients seek alternatives to buying insurance that give them confidence they have been given a fair shake in the process. Clients are looking for resources and information, objective advice and solutions, and access to insurance markets without having to worry about backroom commission schemes that ultimately breed distrust. Without commission, a conversation about buying higher limits of insurance takes on a different and more productive tone – the broker doesn’t get paid any more or less as a result of their client’s objectively informed decision. Insurance buyers aren’t the only ones
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affected by this conflict of interest. Carriers are challenged by commission as well. As a rule, commissions are insurers’ second largest expense behind paid losses. Though carriers are most concerned with net premiums written, they would prefer to have that net premium delivered directly to their insureds without commission inflating and distorting the actual risk transfer premium. In Chubb’s 2016 annual report, chairman and CEO Evan Greenberg called out brokers
hands is to eliminate commissions entirely and move to a fee-for-service model. When clients pay their broker a flat fee for the services they receive instead of a commission based on the amount of premium they pay, they’re empowered to make the right decisions for their business and themselves about their insurance coverage. Moving to a fee-based model allows brokers to truly become trusted advisors, which is essential for the survival of the brokerage business. Importantly, fee-based still doesn’t mean ‘one size fits all.’ Charging fees allows brokers to customize a service plan for each client. At Altus, we’ve created a proprietary model using 10 service-based criteria that generate fees tailored to each client’s unique needs. Using this method, we significantly reduce our clients’ brokerage expenses in both the short and long term. In doing so, we are freed to aggressively seek out the best terms, conditions and pricing from underwriters without worrying if a lower premium will negatively impact our revenue.
“The conflict of interest that underlies commission plagues the brokerage business at every step of the insurance-buying process, leaving customers without the leverage and power they deserve” for “abusive behavior” involving commission: “Cloaked in the mantra of ‘customer best interest’ or ‘treating customers fairly,’ they seek the cheapest price and broadest coverage at commission terms that, by any measure, are excessive,” Greenberg said. As this statement implies, broker commissions have been impacting industry decisions forever for the sole benefit of one party in the insurance transaction: the broker. It’s time to pull back the curtain and embrace a different, fairer compensation model that gives the customer not only complete transparency, but also the power and leverage they deserve in what has traditionally been an opaque industry. One way to put control back into clients’
As agents and brokers, we should strive to be considered vital partners who can help our clients navigate the often mysterious and confusing world of insurance while aligning our interests with theirs as best we can. Let’s stop living under the assumption that the commission model works for everyone. The truth is that it doesn’t work for anyone – except the broker. Let’s eliminate the conflict of interest so we can be the trusted advisors and advocates that clients want, need and value. Charlie Wilmerding is the founder and CEO of Altus Partners, which he started in 1997 with a mission to change the way property & casualty insurance is bought and managed.
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23/10/2020 3:24:46 am
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5/18/2020 3:24:50 3:22:12 am PM 23/10/2020
PEOPLE
INDUSTRY ICON
A RELATIONSHIP BUSINESS Lori Spoon has made a career out of building strong bonds with brokers and customers, and she’s put her talents to good use as one of the first leaders at Berkshire Hathaway Specialty Insurance REACHING THE executive ranks of one of the largest insurance companies in the US doesn’t happen by chance. While Lori Spoon, head of customer and broker engagement at Berkshire Hathaway Specialty Insurance (BHSI), might not have always dreamed of working in insurance, her career has been marked by intentional moves within global insurance behemoths that have propelled her to the top of the industry. Even Spoon’s first role in insurance was defined by her determination to succeed. In the 1980s, she was studying international business at DePauw University when she learned that Chubb was visiting the campus to recruit students. However, the global insurer wasn’t recruiting for its international department, where Spoon wanted to work. However, she continued to request a position in that unit and eventually succeeded – proving that if you want something, you need to ask for it. “I don’t know who I thought I was, but they opened up an underwriting position for international property & casualty and political risk in their Chicago office and hired me,” Spoon recalls. “It launched what’s become an intensely gratifying career.” From Chubb, Spoon went on to Johnson & Higgins and later joined Marsh. “I spent 16 years between J&H and Marsh as an international broker,” she says, “and that’s where I learned about working closely with risk managers to understand what’s on their
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minds, gaining deep understanding of their global risks, and the challenges within their businesses and industries.” Then, in 2013, opportunity came calling – literally. While working at Zurich as an SVP and broker relationship leader, Spoon got a call from a friend in the industry, who had heard from BHSI president and CEO Peter Eastwood that the company was looking to
gation [into brokers’ contingent commissions] and came back three years later, realizing that the relationships I had built up over time had tremendous equity. You’re [also] constantly learning about industries, companies, geographies and risks. There’s nothing more exciting to me than going on a plant tour – I’ve toured a Listerine factory; I’ve gone on test drives for manufacturers testing anti-lock braking
“Everyone in the organization owns customer and broker engagement. At all levels of the organization, we prioritize spending time with customers and brokers. It’s incumbent upon us to continue to listen and learn from them” fill a customer and broker engagement leadership role. Spoon’s name came up, and after the friend got the OK to share her interest in the role, Spoon received a call from Eastwood a few minutes later – and the rest is history. Looking back on her career, Spoon says her passion for the insurance industry springs from its focus on relationships and the opportunities it presents to always be learning. “It’s an industry that is built on trust,” she says. “I left the industry in 2005 [to work in finance], around the time of the Spitzer investi-
systems. Understanding what our customers do and how they do it keeps us sharp.”
Building out a business Coming over to BHSI gave Spoon an opportunity to flex her broker and customer relationship muscles even further. She joined the insurance firm as its 40th teammate and has played an important role in building out the business, leading BHSI’s customer advisory board, customer roundtables and the development of new customer relationships, in addition to
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PROFILE Name: Lori Spoon Title: Head of customer and broker engagement Company: Berkshire Hathaway Specialty Insurance Based in: New York City Years in the industry: 32 Career highlight: Hosting a customer table with Warren Buffett during a BHSI-hosted event
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PEOPLE
INDUSTRY ICON
driving its distribution strategy and relationships with retail and wholesale brokers. Being among the first people in the door at BHSI has presented Spoon with a unique opportunity to have a voice in establishing the company culture. She has also been there for most of BHSI’s firsts. “We have had so many new milestones – we had our first customer on day two of our third week,” she says. “But I have to say, the highlight of my career was hosting a table with a group of customers with Warren Buffett. Engaging in a conversation with a group of risk managers and Warren was a bucket-list experience.” From day one, designing the customer culture was “extraordinarily important” to BHSI, right up there with establishing its underwriting and claims philosophies, Spoon adds. “Everyone in the organization owns
The team only got to six cities before the coronavirus hit, but Spoon was determined to stick to the plan. So far this year, the team has held 50 virtual roundtables, which have proved to be a valuable way to connect with risk managers and stay informed on their experiences and concerns.
Keeping customers happy Despite the successes Spoon and the customer and broker engagement team at BHSI have had so far, the many risks facing companies today mean there’s more work ahead. “There’s so much fundamentally as an industry that we can continue to do better with more traditional risks, and that’s where we’re playing the long game,” Spoon says. “Change is difficult, and this is a significant divergence from the many years of a soft market, but how
“Customer engagement is deeply embedded in our culture. It will always be a huge priority for us to create a differentiated experience for risk managers” customer and broker engagement,” she says. “At all levels of the organization, we prioritize spending time with customers and brokers. It’s incumbent upon us to continue to listen and learn from them.” That’s why starting the customer advisory board six months after BHSI was founded was so important – BHSI leadership wanted its services to be shaped by feedback and experiences from its customers and not just be based on its leaders’ experiences. BHSI is currently on its third customer advisory board, each of which serves a two-and-a-half-year term. Customer roundtables are another crucial component of BHSI’s customer engagement strategy. They were implemented last year and have offered the BHSI team an opportunity to listen to and learn from risk managers. For 2020, Spoon had a goal to visit 29 different cities to conduct customer roundtables.
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BERKSHIRE HATHAWAY SPECIALTY INSURANCE AT A GLANCE
that [change] is managed and communicated is extremely important.” Helping customers succeed through crises and looming risks – including COVID-19, along with risks arising from climate change and a complex cyber landscape – involves communicating effectively with customers and brokers about lead times, explaining underwriters’ understanding of each unique risk and providing options to customers. Thanks to the investment Spoon and BHSI have made in customer relationships, her team and the broader organization are able to deliver that high level of service. “We are touching more customers and prospective customers than ever,” Spoon says. “Customer engagement is deeply embedded in our culture. It will always be a huge priority for us to create a differentiated experience for risk managers.”
2013 Year Berkshire Hathaway moved into commercial insurance with the formation of BHSI
200 Countries where BHSI can provide solutions to customers through its global network
A++ Financial strength rating from A.M. Best and Standard & Poor’s for Berkshire Hathaway’s National Indemnity group of insurance companies
$333.9 billion Total admitted assets for Berkshire Hathaway’s National Indemnity group of insurance companies Source: Berkshire Hathaway National Indemnity group of insurance companies balance sheets as of December 31, 2019
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We Are Client Centric, Not Policy Centric “Listening to the voice of our customer has been, and always will be, Safety National’s focus. We provide a dedicated service team and value-added services, so from day one through the renewal cycle, we are always looking at how we can optimize that customer journey. Everything we do is geared towards adding value to the customer experience.”
– Cyndee Morton, EVP of Operations & Chief Innovation Officer
Cyndee Morton with Valued Customer Experience Team
Proceed with Safety® Workers’ Compensation: Excess • Large Deductible • Large Guaranteed Cost • Defense Base Act • TEXcess® Commercial Auto • Commercial General Liability • Umbrella / Excess Liability • Public Entity Liability • Cyber Risk Loss Portfolio Transfers • Self-Insurance Bonds
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23/10/2020 3:25:26 am
SPECIAL REPORT
HALL OF FAME
f o L L A H
E M A F
2020
IBA’s newest class of Hall of Fame inductees includes 26 stewards of the industry who have dedicated their careers to insurance – and continue to impact its future trajectory THE INSURANCE industry, at its core, is about people – a fact that has never been more apparent than this year, in the middle of a global pandemic that has tested every area of the industry. The 26 insurance professionals who make up IBA’s fourth annual Hall of Fame have tirelessly given their time and expertise to the industry for more than 35 years; along the way, they’ve improved the lives of countless insureds and have leveled the playing field for the colleagues who came after them. This year’s inductees were selected by a panel of seven industry experts (several of whom are Hall of Fame members themselves), who looked at each nominee’s contribution to the industry overall. This year, the judging panel also considered each person’s efforts toward furthering diversity and inclusion – an important area of consideration in the industry today.
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METHODOLOGY IBA’s 2020 Hall of Fame class was selected with the assistance of an independent judging panel composed of industry leaders and previous Hall of Fame inductees, including: • Omari Jahi Aarons, Liberty Mutual • Brad Tennant, Tennant Special Risk • Roslyn Spiegel, HUB International Northeast • Bryan Sanders, Markel Assurance • Paul J. Norman, Norman-Spencer Agency • Preston Diamond, Institute of WorkComp Professionals • Jeff Albright, Independent Insurance Agents & Brokers of Louisiana When compiling the list, IBA considered the advisory panel’s recommendations, as well as external nominations. The panelists confirmed the final list based on all qualifying candidates’ industry achievements and contributions during their 35-plus years in insurance.
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HALL OF FAME 2020 INDEX NAME
COMPANY
Edna Vรกzquez Bonnet
Bonnet Insurance Brokerage Corporation
Bonnie Boone
PAGE
PAGE
NAME
COMPANY
23
Maryann Iannuzzo
HUB International Northeast
30
Gallagher
34
Corinne Jones
AmWINS Group
32
Michael Christian
Risk Strategies Company
39
Cindy LaMantia
Gallagher
36
W. H. (Skip) Cooper
AmWINS Group
26
Lambros Lambrou
Aon Commercial Risk Solutions
31
Kevin Davis
Kevin Davis Insurance Services, a Worldwide Facilities company
26
Carlton Maner
AXIS Insurance
24
James J. Donelon
Louisiana Department of Insurance
36
George Nordhaus
USA Insurance Network
33
John S. Edack
Arch Insurance
29
Dave North
Sedgwick
30
Steven R. Gross
Program Underwriting Managers
32
Marcus Payne
All Risks
38
Sabrina Hart
Zurich North America
28
David Poms
Poms & Associates
40
Hank Haldeman
Worldwide Programs/Worldwide Facilities
38
Margaret N. Redd
National African American Insurance Association
39
Ron Helveston
CRC Group
40
Phillip Richards
North Star Resource Group
34
Stu Henderson
Western National Insurance Group
35
Jerald L. Tillman
JL Tillman Insurance Agency/ National African American Insurance Association
28
Gerald Horton
USG Insurance Services
24
Carol A.N. Zacharias
QBE North America
37
EDNA Vร ZQUEZ BONNET President BONNET INSURANCE BROKERAGE CORPORATION
Edna Vรกzquez Bonnet has had a storied career in enterprise risk management and insurance. In 1974, she became the first licensed risk manager in Puerto Rico, bringing enterprise risk management principles to the island. Since then, she has worked with companies in both the public and private sectors to service their insurance and risk management needs. Beyond her contributions to insurance, Bonnet founded the Diagnostic Center for Multiple Intelligences in 1987. The center is the only one in Puerto Rico to offer free or low-cost full-suite diagnostic and therapeutic services to children
and adolescents for educational, neurological, physical and emotional difficulties. Bonnet founded the center after she had to travel to have her children diagnosed with learning disabilities, and it continues to be her main charitable project and an important part of the community. Bonnet has received the Quijote Emissary of Good Award from the Club of Former Presidents of Puerto Rico, has been named Business Woman of the Year by the US Hispanic Chamber of Commerce, and has received the Golden Rule Award from former President Bill Clinton and the Presidential Volunteer Award from former President George W. Bush.
www.ibamag.com
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SPECIAL REPORT
HALL OF FAME
GERALD HORTON Chairman and CEO USG INSURANCE SERVICES
Gerald Horton started his career in 1965 in the billing department of Bituminous Casualty Corporation, where he worked his way up from claims, clerical and underwriting roles to management positions. He was branch manager of Bituminous’ main office for several years before moving to Burns & Wilcox, where he served as executive vice president and grew operations from three to 40-plus locations during his 19 years at the company. Horton founded USG Insurance Services in 2001, holding the title of president until 2012, when he became chairman and CEO. His vision and strategy created the plan for USG’s footprint, distribution, products and infrastructure. USG currently has 20 locations, more than 200 team members and six divisions: a national wholesale/MGA operation writing in all states; Brokers Financial Services, a premium finance company; BFS Inspections, an inspection company operating in more than 25 states; Allied American Underwriters, a program manager and specialty division offering commercial and personal lines and surety; Into Innovations, a full-service insurance marketing and advertising operation; and Aureate Technology Solutions, an information technology company.
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CARLTON MANER CEO, US division AXIS INSURANCE
Carlton Maner was recently appointed the inaugural chair of the Wholesale & Specialty Insurance Association’s Insurance Industry Diversity Foundation (IIDF), and he says he’s looking forward to being “part of WSIA’s path to be bold and loud in its efforts to bring different perspectives into specialty insurance. Diverse viewpoints allow us to succeed in our business objectives and are crucial for the creative solutions to complex risks necessary at AXIS and across the industry.” The IIDF’s mission is to promote diversity in race, gender, sexual orientation and disability, and to influence meaningful progress in this area across the industry. Maner has been a member of WSIA (and its predecessor, NAPSLO) since the early 1990s, serving on its board of directors from 2010 to 2016. “I’ve stayed close to WSIA as a member of its Membership & Ethics Committee,” he says. “This enabled me to continue efforts uniting diversity and inclusion initiatives with bottom-line company success.” Maner launched his 35-plus-year career in insurance at St. Paul Fire & Marine Insurance Company before serving as senior vice president of the Westchester Specialty Group at ACE USA. He has held underwriting positions at The London Agency, Zurich Insurance, Home Insurance Company and insurance brokerage Haas & Dodd. Maner joined AXIS in 2002 as executive vice president of E&S property and served as president of AXIS’ specialty lines division, responsible for property, casualty and marine underwriting on a global basis, before moving into his current role as CEO of the US division and global property practice leader.
A
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23/10/2020 3:26:07 am
OUT-WORK verb
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LIFE SCIENCES
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23/10/2020 3:26:09 am
SPECIAL REPORT
HALL OF FAME
W. H. (SKIP) COOPER Vice chairman AMWINS GROUP
KEVIN DAVIS Founder KEVIN DAVIS INSURANCE SERVICES, A WORLDWIDE FACILITIES COMPANY
Kevin Davis began his career in 1978 and launched his company, Kevin Davis Insurance Services (KDIS), in 2000. KDIS offers products that meet the unique exposures of the community association industry and has a reputation as the leading insurance program administrator in this area. Davis wanted to build a company with diversity and inclusion at its core; today, KDIS boasts a team that, including management, is 70% women and minorities. Davis believes the greatest change in the industry over the past several years is its commitment to achieving racial equality. “The insurance industry is finally becoming more open and willing to discuss race and have those difficult conversations,” he says, “which I believe will lead to everyone having access to the same opportunities and feeling valued, welcomed and respected.” As a member of the National African American Insurance Association and the first African American to serve on the board of directors of the Council of Insurance Agents & Brokers, Davis frequently collaborates on workshops and seminars on unconscious bias, cultural sensitivity, and attracting and retaining diverse talent. “My intent is to bring my unique perspective to those who are open and curious to the challenges faced by people of color and those willing to make a difference,” he says. In 2015, Davis and his wife started The Kevin Davis Foundation, which focuses on residents of Davis’ hometown of Camden, New Jersey. The foundation provides scholarship opportunities, encourages positive attitudes towards learning, helps develop a love of reading and aims to improve parental engagement. Davis also serves on the board of directors for the Camden Dream Center.
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Until the last decade or so, nobody went to college to study insurance, says Skip Cooper, former president and current vice chairman of AmWINS Group. Most people “ended up here accidentally, [so] the industry is filled with many interesting, and generally fun, folks from different walks of life,” he says. “Meeting and working with all of these different characters has been the most rewarding part of my career.” Cooper joined AmWINS in 2007; during his 11 years as president, he led the company through a period of immense growth, including 32 acquisitions and the addition of more than 2,000 employees. Cooper’s extensive industry knowledge and expertise in customer, client and market relationships helped AmWINS become a leading specialty brokerage and underwriting organization. “Building businesses and enterprise value in our industry has been challenging, competitive and fun,” he says. Cooper is a dedicated mentor, most recently recruiting AmWINS’ alternative risk capital team, a group of specialists focused on exploring state-of-the-art insurance solutions in the parametric, captive and insurance-linked security space. Before joining AmWINS, he was an executive vice president at CRC Insurance Services, where he formed the property department, along with AmRisc Underwriting. Prior to CRC, Cooper worked for Southern Surplus Insurance and Fireman’s Fund Insurance Company and interned at Lloyd’s of London.
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23/10/2020 3:26:15 am
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UMBRELL A
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INL AND MARINE
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23/10/2020 3:26:18 am
SPECIAL REPORT
HALL OF FAME
JERALD L. TILLMAN Owner/founder JL TILLMAN INSURANCE AGENCY/NATIONAL AFRICAN AMERICAN INSURANCE ASSOCIATION
Jerald Tillman started in insurance in 1974, joining Aetna right out of college. Among his 46 years of industry accomplishments and experience, it’s his founding of the National African American Insurance Association (NAAIA) in 1997 that stands out to Tillman the most. As he gained experience, his mentor encouraged Tillman to get involved in professional associations, but he found there weren’t many other people of color there. He began mulling the idea for his own association dedicated to increasing the number of African Americans in the industry at all levels, culminating in the creation of NAAIA. “The mission was to diversify the insurance industry, simply put,” Tillman says. “I would like to feel that NAAIA has made a difference in many careers and will continue to bring more diverse talent into a great industry.” He adds that while progress has been made on diversity initiatives among corporate leadership, there’s still a lot of work to do on the agency development side to attract talented African American professionals. Tillman’s other major career accomplishment has been building JL Tillman Insurance Agency, “despite all the many challenges I faced as an African American corporate sales manager and business owner breaking new ground in the industry,” he says. “Growing up, I always had the vision of running my own business and being my own boss – I had no clue the insurance industry was my path to success.”
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SABRINA HART Executive vice president and Midwest zone executive ZURICH NORTH AMERICA
Although Sabrina Hart names technology advancements and consolidation as some of the biggest changes she’s witnessed in her 35 years in insurance, the change she’s been most pleased to see has been the progress on gender diversity. “This ties into the industry’s future,” she says, adding that it’s time for insurance to build a brand that attracts all people. “Diversity fuels innovation, and we must look more like the individuals, businesses and communities we serve.” Hart has been with Zurich since 1997; her previous roles include chief underwriting officer and COO for Zurich Global Corporate in North America, head of risk operations at Zurich Financial Services in Switzerland, and chief underwriting officer for specialty products. Hart notes that when people leave industries or companies, it’s typically due to a perceived lack of opportunity, and she counts herself fortunate that this hasn’t been the case at Zurich, where the “global reach and breadth of products and services provide endless opportunities to develop, grow and have impact.” Outside of Zurich, Hart serves on the board of governors for the Maguire Academy of Insurance and Risk Management at St. Joseph’s University, as well as the board of visitors at the University of North Carolina and the advisory board of the Katie School of Insurance at Illinois State University. She also sits on the board of the Chicagoland Chamber of Commerce and chairs the board of the Insurance Industry Charitable Foundation’s Midwest division. “Be curious, be a lifelong learner, be engaged,” Hart advises other insurance professionals. “Build relationships, be a thought leader, be a change agent. Balance technical skills and interpersonal skills, and be your authentic self.”
JOHN S. EDACK Senior executive vice president ARCH INSURANCE
“The key to a successful career? Build solid relationships. Always be current with theories of coverage. Respect and embrace data. And have fun!” says John Edack, a 40-year insurance veteran. Edack his lived his words: He was integral to the success of two multibillion-dollar insurance franchises and is considered by the wholesale industry to be one of the best technical underwriters in the US. He is also valued by countless professionals for his dedication to developing future talent and ensuring the industry’s prosperity. Edack started as an underwriter, managing a large book of business and staff. He quickly became respected for his technical underwriting skills, knowledge of the markets and his unmatched ability to identify and develop talent. Before joining Arch, Edack played an instrumental role in launching and building successful businesses that shaped the insurance industry. He served as SVP of the casualty division at ACE USA/Westchester, managing the excess and primary lines. Prior to ACE, he held a variety of positions at Industrial Underwriters, AIG and Chubb. In 2002, Edack was hired as employee number eight at Arch, where he led the Western region as EVP. In 2007, he was promoted to chief regional officer with oversight of all US regions. He became SVP of the E&S casualty division in 2011; in 2019, he was asked to take on his current role, in which he chairs the Arch Worldwide Casualty Council, leads the contract binding solutions team and helps secure Arch’s annual casualty reinsurance placement. Perhaps the greatest testament to Edack’s ability to recognize and develop talent is his ‘coaching tree,’ which includes several senior leaders at many top insurance companies. “Ask any E&S executive, underwriter, broker and even reinsurance underwriters, and they will tell you Edack is a legend,” says Jeffrey Livingston, head of global sales at Guy Carpenter. A proud Boston College alumnus, Edack has served as chair of the Surplus Line Association of California and its Executive Committee and Stamping Office Committee. As a philanthropist, he supports talent in underperforming high schools, Toys for Tots, the Alameda Food Bank, the American Cancer Society and various animal shelters. Along with his wife, Debbie, Edack is especially proud that their son, Jack, has chosen to follow in his father’s footsteps and currently works in the industry.
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23/10/2020 3:26:30 am
SPECIAL REPORT
HALL OF FAME
MARYANN IANNUZZO Senior vice president, claims management HUB INTERNATIONAL NORTHEAST
DAVE NORTH Executive chairman SEDGWICK
When Dave North joined Sedgwick in 1995 as president and CEO, the company had fewer than 500 employees and $50 million in revenue. He has led its evolution from a boutique regional third-party claims administrator to a leading global provider of technology-enabled risk, benefits and integrated business solutions with more than 27,000 employees. “I am passionate about the business because we make a difference in the lives of individuals,” says North, who transitioned to his current role earlier this year after spending 25 years as Sedgwick’s president and CEO. “Every day I am inspired by the work of our colleagues and the customers they serve.” With more than 39 years of experience in risk management and claims services, North is a frequent keynote speaker at industry conferences and events. In 2016, he received EY’s Entrepreneur of the Year Award for the Southeast US region. He also received the CLM Lifetime Achievement Award in 2018 for his profound impact on the claims sector. North notes that the claims industry is changing, particularly with the implementation of new technology. “The career opportunities that the claims industry offers today are unprecedented,” he says, adding that there is strong demand for individuals who are willing to work hard, embrace new skills and show empathy to customers. “We have to be more efficient and more effective, and technology can provide both,” he says. “But meeting the needs of the individual should continue to be the central focus and will ultimately determine success.”
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After 47 years in the industry, one of Maryann Iannuzzo’s key motivators is “the fact that I have been able to help so many clients to be made whole after sustaining disastrous losses,” she says. “One of the most rewarding aspects of my job is the challenge of navigating ways to apply coverage to issues and ultimately succeed.” An employee of HUB since 1973, Iannuzzo is an industry leader with strong negotiating, policy interpretation and technical skills. She has expertise in handling all aspects of P&C claims, both in and out of the office, and she has a working knowledge of group health, life, medical malpractice and professional liability. She oversees settlement negotiation at all levels with adjusters and carriers, ensuring clients receive maximum payments on all first-party claims, as well as full benefits of all coverages provided under their casualty policies. As time and circumstances evolve, so do insurance policies, and Iannuzzo strives to remain up to date with industry changes via continuing education. “One should never be content that they have all the answers – each claim is unique, and there is always something new to learn,” she says. “It is critical that each claim professional continue their education throughout their career to keep up with new coverages and trends.”
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23/10/2020 3:26:32 am
LAMBROS LAMBROU CEO AON COMMERCIAL RISK SOLUTIONS
After more than three decades in risk management, with experience across AsiaPacific, North America, Europe, the Middle East and Africa, Lambros Lambrou has a message for those considering an insurance career: “Come innovate with us! There are so many opportunities to be bold, be creative and think outside the box. Personally, I have enjoyed diverse experiences that have connected me with fabulous people all over the world, creating enduring friendships dear to me.” Lambrou has held several positions with Aon internationally. Currently based in New York City as CEO of Aon Commercial Risk Solutions, he is responsible for delivering high-impact solutions, including leveraging the firm’s data and analytics, to help clients improve decision-making. He also serves as a member of Aon’s Global Operating Committee. Lambrou holds an economics and statistics degree from Exeter University in the UK and is also a graduate of the INSEAD Executive Leadership Program. Over the last 10 years, he has steered a number of Aon’s key growth initiatives, including the development of the Global Risk Insight platform, the Center for Innovation and Analytics, the rollout of the Aon Client Promise and the development of the industry-first Sidecar solution with Berkshire Hathaway. “The combination of a people business with solving clients’ needs has always fascinated me,” he says. “I love the variety that delivers a different day to the next.”
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Contact Ames & Gough at 703-827-2277 or email us at csiplus@amesgough.com for more information. 8300 Greensboro Drive l Suite 980 l McLean, VA 22102 l www.amesgough.com
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23/10/2020 3:26:35 am
SPECIAL REPORT
HALL OF FAME
STEVEN R. GROSS Founder PROGRAM UNDERWRITING MANAGERS
As a 41-year insurance veteran, Steven Gross can confidently tell those just entering the industry that “insurance is the land of opportunity. Having watched carriers and brokers become more global over the last 20 years, the opportunity exists for young professionals to obtain experience in many disciplines, including but not limited to underwriting, claims, IT and operations.” Gross has experienced all aspects of insurance distribution, starting on the retail side in 1979 and moving to the wholesale/underwriting side in 1990. He served as chairman and CEO of Metro Insurance Services from 1983 to 2012 and, throughout that time, “always felt that giving back to the industry and community was of paramount importance to my growth and understanding of both.” Following the sale of Metro in 2012, Gross now manages a small consulting firm, which keeps him active in the industry. During his years on the retail side, Gross served on the board of his local Chamber of Commerce and Boys and Girls Club. As he expanded his company and career, he joined various industry associations and became president of the New Jersey Surplus Lines Association and served on the board of WSIA’s predecessor organization, NAPSLO. He was also a member of the New Jersey Department of Banking and Insurance’s insurance advisory board. “My passion was always for mentoring young professionals entering the business,” Gross says, “and I was able to make a large impact on NAPSLO’s board as chairman of the Internship and Next Generation committees.”
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CORINNE JONES Executive vice president AMWINS GROUP
In 40 years in the wholesale general agency segment of the industry, “I have been able to meet many compassionate and intelligent people – some becoming mentors and lifelong friends,” says AmWINS’ Corinne Jones. She began her career as a file clerk at Bliss & Glennon, a small independent agency that soon grew into a large, multi-state wholesale agency. Jones worked in commercial underwriting and eventually became COO before the agency was acquired by AmWINS in 2013. In 2015, Jones helped AmWINS launched its newest division: AmWINS Access, a nationwide binding platform for small property & casualty business. Since its inception, Jones has helped drive operational strategy and execution, including merging technology platforms and implementing best practices across five previously distinct business units. Jones says insurance “is filled with incredible opportunities for professional fulfillment,” and while the industry has seen consistent M&A activity and consolidation of businesses, she hopes its entrepreneurial spirit will live on. Her current focus is on AmWINS’ education and mentoring initiatives, including diversity, equity and inclusion. During her career, Jones has witnessed the rise of women in leadership and says she expects “the industry to continue in diversifying its workforce – promoting women and minorities.” Jones is a past president of WSIA and previously served as president of its predecessor, AAMGA. She also received the Insurance Industry Charitable Foundation Golden Horizon Award earlier this year in recognition of her dedication to philanthropic efforts within her community.
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23/10/2020 3:26:41 am
ORDINARY PEOPLE GETTING THE EXTRAORDINARY DONE
GEORGE NORDHAUS Chairman USA INSURANCE NETWORK
At 87 years old and with more than six decades in the industry under his belt, George Nordhaus says he simply doesn’t know how to quit. He’s still at it for two reasons: change and receptiveness. “The changes taking place in agency marketing never stop,” he says, “and there’s a solid base of agents and brokers who are ahead of the curve.” Nordhaus began his insurance career at the Insurors of Tennessee, the Big I agent’s association, shortly after graduating from Vanderbilt University. After six years in that position, he moved back to his native Indiana and became EVP of the Indiana Big I. Along the way, he founded Insurors Press, a publishing firm that later became Insurance Marketing and Management Services (IMMS). He left IMMS in 2008 to form AgenciesOnline.biz, and in 2017, he started the USA Insurance Network. Nordhaus has been honored by the Boston Board of Fire Underwriters as Insurance Person of the Year and by the Insurance Marketing Communications Association with its Golden Torch Award. He is also a recipient of the IIABA President’s Award and served as an elector to the Insurance Hall of Fame. In addition, he was of the first 100 non-British subjects to become a Lloyd’s Name at Lloyd’s of London. Throughout his career, Nordhaus has written books on insurance sales and marketing, authored a weekly newsletter for 40 years, has written columns for multiple trade magazines, and has spoken at more than 2,000 conferences and conventions in the US, Canada and Europe. “Independent insurance agency marketing became my mantra, my specialty, my passion – and it still is,” he says.
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23/10/2020 3:26:44 am
SPECIAL REPORT
HALL OF FAME
BONNIE BOONE Executive vice president GALLAGHER
PHILLIP RICHARDS Founder and executive chair NORTH STAR RESOURCE GROUP
Phillip Richards began his career in 1962 with the Penn Mutual Life Insurance Company. In 1965, he joined Hartford Life and, in 1969, acquired North Star Resource Group, where he was CEO until 2016. He currently serves as North Star’s founder and executive chair. Boasting nearly 60 years of experience in financial services, Richards is a member of the GAMA International Hall of Fame, the American College of Financial Services Hall of Fame and the Securian Financial Services Hall of Fame. He also received the 66th annual John Newton Russell Memorial Award from the National Association of Insurance and Financial Advisors, and he is the only firm leader in the world to receive the International Management Award from GAMA International every year since its inception. Richards has been a featured speaker in 17 countries on topics such as strategic planning, leadership and alternate distribution systems in the financial industry. He is an adjunct professor emeritus for the Carlson School of Management at the University of Minnesota and a former adjunct professor at Central University of Finance and Economics in Beijing, China. He also serves as founder and chair of the board for the Scott Richards North Star Foundation, which donates 10% of North Star’s annual profits to national and local nonprofits, including recently funding two endowed chairs for Alzheimer’s research at Temple University, Richards’ alma mater. Richards has also been vice chair of Temple University’s board of trustees, chair of its executive committee and was the speaker for the 2016 commencement, during which he was awarded an honorary Doctor of Humane Letters degree.
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With more than 38 years of experience, Bonnie Boone can confidently say what will make you or break you in the insurance industry. “I always thought being technically smart would be enough,” she says. “But establishing relationships and working with a firm that will support you are critical, as is having the opportunity to succeed without a meritocracy.” Boone’s expertise is in healthcare, with a focus on captives, cash flow loss-sensitive programs and coverage analysis. She currently serves as an executive vice president and co-chair of Gallagher’s managed care practice group. In 2019, Boone was named one of Savoy magazine’s Most Influential Women in Corporate America and received the NAAIA Lifetime Achievement Award. She also belongs to the Association of Professional Insurance Women and the National Association of Health Services Executives, and she serves on the boards of the Association for Healthcare Risk Management of New York and the Women to Watch Foundation. In her nearly four decades in insurance, Boone believes the industry has become more comprehensive and transparent, but she has high hopes for more change in the future. “I would like to see more women and people of color receive opportunities in the business and have the focus be on building the best team,” she says.
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23/10/2020 3:26:49 am
STU HENDERSON CEO WESTERN NATIONAL INSURANCE GROUP
Stu Henderson says there’s no secret formula behind his success in insurance. Like most things in life, he says, “work hard and do the right thing, and success will come to you.” He says working on “varied and interesting things with great people to serve the higher purpose of putting customers’ lives back together after a tragedy” has kept him in the industry for 35 years and counting. Henderson began his career in 1986 as claims counsel at Farm Family Mutual Insurance Company. He earned his CPCU and was promoted to chief claims officer for P&C and life/health/disability, then COO for P&C operations. In 1999, he went on to manage underwriting operations for Gerling Global Reinsurance Corporation of America before assuming the role of general manager of fronting/ program business at its subsidiary, Constitution Re. Henderson joined Western National Mutual Insurance Company in 2001 as president and CEO. He led Western National to become an A+-rated, multiline super-regional company with more than $815 million in total premiums and $680 million in surplus. Western National was a Ward’s Top 50 company for 15 years and has received awards for business ethics, workplace flexibility and employee satisfaction. It was named Company of the Year by the Minnesota Independent Insurance Agents and Brokers Association, which also named Henderson Executive of the Year.
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23/10/2020 3:26:59 am
SPECIAL REPORT
HALL OF FAME
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JAMES J. DONELON
CINDY LAMANTIA
Commissioner of insurance
President, Great Lakes region
LOUISIANA DEPARTMENT OF INSURANCE
GALLAGHER
A native of New Orleans, James Donelon has spent decades serving the state of Louisiana. After graduating from Jesuit High School, the University of New Orleans and the Loyola School of Law, Donelon was first elected to public office in 1975 as chairman of the Jefferson Parish Council. He also served as chairman of the Committee on Insurance in the Louisiana House of Representatives from 1981 to 2001. In 2006, he was appointed to his current position as the state’s insurance commissioner and was elected to fill the unexpired term that same year. He has since been re-elected to four consecutive full terms; his current term is up in 2023. Prior to becoming insurance commissioner, Donelon served in various leadership positions within the Department of Insurance, including as chief deputy commissioner and executive counsel. He was elected president of the National Association of Insurance Commissioners (NAIC) in 2013 and currently serves as chair of the NAIC’s Surplus Lines Task Force and on its executive committee.
As one of the first female leaders in the insurance industry, Cindy LaMantia can still remember when she was the only woman at the table – and sharing a laptop was the norm. “While we have improved technology to leverage complex data and can now connect with our clients from anywhere, we need to continue to improve diversity,” she says, noting that the “ability to establish and model a flexible work schedule has been key to me as a leader, woman and mother.” LaMantia started her career in the mailroom at Gallagher while she was still in college, eventually rising to become a top-performing producer in the property & casualty division. She set the tone for her career as a resourceful, client-focused, creative problem-solver when she developed one of the first-ever insurance pools. Since then, LaMantia has been recognized as Branch Manager of the Year by Gallagher and was named the company’s first female regional president. LaMantia’s in-depth understanding of clients’ risk management needs, concerns and priorities has been key in driving growth for the company. “Being hands-on with clients to help solve problems 24/7 when they need us the most is what drives me,” she says. To help educate clients and future insurance leaders, LaMantia often speaks at industry events. As a dedicated leader of Gallagher’s internship program, she recruits and mentors young and diverse talent, and her advice to them is to focus on their goals and stay the course. “Know where you’re going, even if you don’t know the path to get there yet,” she advises.
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23/10/2020 3:26:58 am
CAROL A.N. ZACHARIAS Senior vice president, underwriting counsel and product development manager QBE NORTH AMERICA
A self-professed builder, innovator and lifetime learner, Carol Zacharias thrives on “working with teams striving to create something new, something better and something that makes a difference.” She says there’s still much to be done as the insurance industry faces new challenges, competitors and ways of doing business. “Today’s risks are often new and certainly more sudden, dramatic and complex,” she says. “It is imperative that we lead rather than fall victim to transformational change by embracing diversity and inclusion, expertise, and innovative thinking – now more than ever.” Prior to joining QBE, Zacharias was deputy general counsel for ACE North America, now part of Chubb. She has also served as chair of the American Bar Association Business Law Section’s Business Insurance Committee and vice chair of the Professional, Officers’ and Directors’ Liability Law Committee of the Tort and Insurance Practice Section. She also co-chaired the insurance subcommittee of the American Bar Association Litigation Section’s Committee on Corporate Counsel and was a member of the board of ACORD. She attended law school at New York University, where she received a master’s degree in corporate law, and she is a member of the US Supreme Court bar and the federal and New Jersey bars. Zacharias says her 30 years in the industry have been fulfilling. “I have been part of building great insurance businesses, working with wonderful leaders and amazing peers,” she says. Zacharias has been published in a securities law textbook and the Nasdaq Guide to Going Public, along with a variety of periodicals, and has been quoted in various media outlets. She is a frequent speaker and has taught professional liability at New York’s College of Insurance, now part of St. John’s University. Zacharias encourages those new to the industry to choose an organization with a culture that reflects their values, to absorb every learning opportunity and to build their professional brand with a body of trusted advisors, mentors and colleagues. Most importantly, she advises newcomers to gravitate to an organization that offers significant levels of work and challenges. “Do not be complacent,” she says. “Always drive towards achieving your goals.”
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23/10/2020 3:27:03 am
SPECIAL REPORT
HALL OF FAME
HANK HALDEMAN President WORLDWIDE PROGRAMS/WORLDWIDE FACILITIES
MARCUS PAYNE Managing director (retired) ALL RISKS
One look at Marcus Payne’s employment history reveals his commitment to the insurance industry. His first job after leaving the Marine Corps was selling business equipment, and he says when he called on insurance companies, “the employees obviously felt that they were making a difference in people’s lives.” Payne was offered a position at Unigard Insurance Group, which began a 58-year career – “and I never considered any other industry,” he says. After 25 years at Unigard, culminating in a role as senior vice president of field operations, Payne joined Crump Insurance Services, where he was president, COO and executive consultant. He also served on the board of directors of Insurance House in Marietta, Georgia. He joined All Risks in 2003 as managing director and helped establish All Risks University, the firm’s training program for new recruits. Payne says he likes working with young professionals because it keeps him sharp. An advocate of leadership training, he believes the principles can be applied to everything in business and that personal reputations must be built on a foundation of trust. “Always remember there is a difference between having rights and doing the right thing,” he says, “and never forget that if it is wrong, do not do it!” Payne helped establish NAPSLO’s education schools; in recognition, one was renamed The Marcus Payne NAPSLO Advanced School. He also served as vice president and a member of the Derek Hughes/NAPSLO Education Foundation board of trustees, developing symposiums to introduce the insurance business to students. Payne was awarded the Charles McAlear Industry Award by NAPSLO in 1996 and was made a lifetime member of the organization (now WSIA).
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For Hank Haldeman, relationships are the best part of the insurance business. After 40 years, he says he still enjoys interactions with customers, markets, associates – and even his competitors. Haldeman, who began his career in 1980 as a wholesale broker with Stewart Smith West, credits “the continuing opportunity to develop creative solutions to the emerging and evolving risks that confront industry and individuals in the US” for keeping him in insurance this long. In 1986, Haldeman took on the roles of COO, SVP and branch manager at Henry Ward Johnson & Company. Just over a decade later, he joined The Sullivan Group as SVP and director, as well as president of GJS Re, Sullivan Healthcare Insurance Services and Sullivan Wholesale Holding Company. He joined Worldwide Facilities in 2018; in his current role, he is responsible for the operation and development of specialty programs, as well as the coordination of product development. Described as a passionate industry volunteer, Haldeman has held leadership roles in associations like WSIA/NAPSLO, the Surplus Line Association of California, the California Insurance Wholesalers Association and the Insurance Industry Charitable Foundation. Looking to the future, Haldeman says he wants to see the industry “do a much better job of promoting the value it provides, and especially the opportunity it represents, to a much broader spectrum of prospective employees.”
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23/10/2020 3:27:13 am
MARGARET N. REDD Executive director NATIONAL AFRICAN AMERICAN INSURANCE ASSOCIATION
MICHAEL CHRISTIAN Founder/executive chairman RISK STRATEGIES COMPANY
During her 43 years in the industry, Margaret Redd has witnessed the struggle to drive meaningful change on diversity, equity and inclusion in insurance, but “we are currently experiencing an enhanced focus on systemic injustice like no other in recent history,” she says. “My hope is we take actions now that drive the change that is so desperately needed for our future.” An accomplished executive and thought leader with a dedicated focus on excellence, Redd specializes in helping organizations achieve and/or exceed profit and growth objectives by optimizing distribution platforms, organizational resources and best practices. She has a diversified background in all lines of property & casualty insurance across multiple distribution channels. Redd entered the insurance industry in 1977 as an underwriter trainee with The St. Paul Companies. She later joined CNA, where she held various leadership positions, including national AVP of distribution, founding member and distribution VP for CNA UniSource, and vice president of the Chicago branch. She later served as RVP at MetLife and VP and COO at Lambent Risk Management. She has also served on numerous boards, including the Quad County Urban League and NAAIA’s national board, and she is the founder and past president of NAAIA Chicago. “My career has hit many of the right notes for me – professional growth and development, financial security, a challenging career track, and the ability to be creative, to have impact and to take risks,” Redd says. “I’ve had the opportunity to meet and work with some truly amazing individuals.”
Michael Christian started his insurance career as an underwriter in California. In 1997, he founded Risk Strategies Company, a national insurance brokerage, where he served as CEO for 22 years before shifting to his current role last year. Prior to starting Risk Strategies, Christian was managing director for Alexander & Alexander’s Northeast region and also held various leadership positions at Jardine Insurance Brokers, including serving on its US board of directors. During his time as CEO of Risk Strategies, Christian was responsible for the development and execution of business and growth strategy, client service, and mergers and acquisitions. In addition to his operational responsibilities, he continued to provide high-level risk management advice and brokerage services to several of Risk Strategies’ largest clients in a broad range of industries. Under Christian’s leadership, Risk Strategies has evolved from a startup to a national top 20 insurance brokerage. In his current role, Christian provides guidance to Risk Strategies’ senior leadership team and board of directors on strategic and growth initiatives. He also serves as a resource for the firm’s clients and staff on insurance and risk management issues and challenges. In January, Christian became managing director of Someone Else’s Child, an organization that supports and enhances the lives of underserved children and teens.
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23/10/2020 3:27:21 am
SPECIAL REPORT
HALL OF FAME
RON HELVESTON CEO, commercial solutions CRC GROUP
Ron Helveston began his insurance career in 1976, and he hasn’t looked back since. “I have been fortunate to work in the insurance industry for over 40 years,” he says. “I have made great friends all across the country with so many people. I consider myself blessed to go to work for a company that I love and do work that I enjoy.” Helveston graduated from the University of Alabama in 1974 with a bachelor’s degree in business administration and started out as a casualty underwriter with Employers Insurance of Wausau in Atlanta. In 1978, he accepted a position with Interstate Fire & Casualty as an E&S underwriter. Two years later, Bellefonte Reinsurance hired him as casualty manager, and he was later promoted to Atlanta branch manager and vice president. In 1984, Helveston was asked to partner with CRC Insurance Services to open a branch office in Mobile, Alabama. Five years later, he moved to Birmingham, where he currently serves as CEO of the brokerage division at CRC Group, a brokerage that specializes in hard-to-place property & casualty business. Helveston received his CPCU designation in 1983 and is past president of the Mobile chapter of CPCU and a current member of the Birmingham chapter.
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DAVID POMS President POMS & ASSOCIATES
Frustration with the status quo or dealing with complex problems when conventional solutions have failed might sound discouraging – but that’s exactly what motivates David Poms. “Inspiration strikes in the most unlikely places,” he says. “These kinds of challenges make you think outside the box and – with enough persistence, resourcefulness and compassion – find a new way forward.” Poms is a pioneer in alternative risk programs for public entities and institutional and nonprofit organizations. Over his 38-year career, he has been a driving force behind the creation of many public entity pools in the Western US, including the New Mexico Public Schools Insurance Authority. The issue of sexual abuse is a serious challenge for the industry, and Poms has been a vocal advocate for major cultural change within companies and institutions to put processes and tools in place to improve the safety of young people, along with education and training that can enable quick action to protect them when potential issues arise. Also an advocate of community involvement, Poms serves on the board of directors for the US Olympic and Paralympic Foundation and supports the US Center for SafeSport, a nonprofit organization working to end all forms of abuse in sports. His advice to young insurance professionals is to be mobile, flexible and proactive. “Embrace an entrepreneurial spirit and look for ways to add value and solve problems,” he says. “Provide heroic service and do whatever it takes in serving your customers.”
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FEATURES
AGENCY INSIGHT
Success in the midst of crisis Kevin Callahan, executive chairman of insurance network Renaissance Alliance, discusses how COVID-19 has impacted independent agencies and what they need to do to survive – and thrive – going forward
IBA: How does Renaissance Alliance stand out in the network space? Kevin Callahan: Renaissance is quite unique in its approach to the network marketplace. Naturally, we provide access for our insurance agency members to more markets and higher levels of compensation, but our true value proposition is about helping our membership get access to more premium and higher levels of profitability, and putting them in a position to maintain their independence. The way Renaissance does this is by offering significant levels of capabilities, services and technology in order to help agents with a very strong value proposition that they have offered for years to their insurance organization clients, and also to help them with the challenges they face in trying to serve their customers.
IBA: How has COVID-19 impacted agency growth so far? KC: When the coronavirus struck, we did a lot of work on a historic basis, looking at things like the 2008 financial crisis, the World Trade Center event back in 2001 and other significant shocks to the US economic system, and we aligned ourselves with a number of economists to try to understand what sort of environment might exist in the coming two years. We projected that growth in the New England marketplace and for our agency members
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would drop by about 5% this year and a little over 5% next year. As we look at where things are today, our agents have performed a bit better than that. We see their growth as having been reduced by about 2%, not 5% as anticipated. Having said that, we still have time before this environment is fully stabilized.
IBA: What are the key challenges independent agencies are facing as a result of the coronavirus? KC: From our perspective, their challenges fall into three buckets. The first bucket is around working remotely. Most independent agencies had not prepared themselves to work remotely. These are organizations that have small offices, and employees have largely come into those offices – and to some extent, there still are customers who come into those offices. When the need to work remotely came around, dealing with that presented signifi-
cant challenges for most independent agents. The second big issue was around customer service. Most independent agencies were able to deal with customer service in a remote fashion, but what they found is that not all of their carriers were set up to efficiently deal with customer service from a remote environment. The last bucket is around selling, and it’s safe to say that very few independent agents were in a position to understand how to proactively sell remotely. Most producers in the independent agency business are folks who like to work face-to-face with their customers, and oftentimes the customers like to work face-to-face with them as well.
IBA: What strategies can agencies implement to adapt and succeed in this new environment? KC: We’re beginning to see the difference in those who have embraced the challenge,
ABOUT RENAISSANCE ALLIANCE Founded in 1999, Renaissance Alliance is a New England-based network of independent property & casualty agencies. Its 100-plus agency members have access to a variety of services designed to accelerate their growth, as well as access to expanded markets and profitsharing. Renaissance has a full-time staff of more than 90 industry experts and a proprietary agency growth acceleration process that ensures agencies see results. Agencies that are on the Renaissance platform have experienced more growth than the broader New England agency marketplace (around 5.7% versus 3%).
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WHAT RENAISSANCE ALLIANCE OFFERS ITS MEMBERS
Marketing and account placement services
Carrier management
Growth resources, including custom strategies tailored to agencies
Technology, training and data analytics
Back-office support
“The risk environment that we’re operating in is one that very few insureds understand, and the need for advice is very high” worked extremely hard to recognize the new environment and have taken the view that this environment might exist for a long time. And by the way, it might turn out that there are bits of the new environment that employees, insurance carriers and customers even like, [in terms of ] the way that customers can be serviced and carriers can be accessed in a much more efficient way. One of the things we did for our members is we offered a capability to bring any technology that was necessary to those agents in their remote locations. In addition, we had
seminars and meetings on what software would help agency owners manage remotely and what software would help the employees of agencies work together and collaborate, even if they weren’t in the same office. It’s really all about a disciplined approach to sticking to the value proposition: What is it that our agency can do for you that other agencies cannot? Insureds are often struggling to manage their businesses and want better ‘deals’ associated with anything they have to spend money on, including insurance. But more importantly, the risk environ-
Sales and marketing support
Peer support ment that we’re operating in is one that very few insureds understand, and the need for advice is very high. Those organizations that have been able to offer a value proposition, which is something more than price – that is focused on advice, trusted mentoring, helping people ensure that they have the correct coverages for the environment – those organizations we see succeeding. There are organizations that are out there growing at significant levels – higher than they were growing at a year ago – because of the way they’ve embraced the environment.
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FEATURES
SECTOR FOCUS: EPLI
Fuel to the fire SOME THINGS WORK BETTER TOGETHER
As employees look to return to work, the already challenged employment practices liability insurance market is vulnerable to new risks
AS A YEAR of uncertainty and new challenges brought on by the COVID-19 pandemic comes to a close, employers are being confronted with even more unknowns as restrictions begin to loosen, workplaces reopen and the economy edges toward recovery. Experts in employment practices liability insurance (EPLI) warn that the return to work could pose even greater risks and liability concerns than the mass layoffs at the beginning of the pandemic. “I believe there will be a number of challenges ahead for employers as people return to work,” says Joe Kelly, senior vice president and employment and ERISA liability national practice leader at
and hospitality. Those that were still writing policies were often incorporating exclusions around layoffs caused by COVID-19 or prior acts, and pricing went up dramatically. “Underwriters are asking additional questions around company financials through the pandemic, and they want to see copies of expiring policies,” says Victoria Dearing, SVP of professional liability and risk management at Breckenridge Insurance. “They are following retro dates and won’t offer higher limits than what the insured previously had.” A hardening EPLI market isn’t new – several other factors had been bubbling below the surface
“People are hurting right now, and if they perceive they’ve been wronged, there are plenty of attorneys willing to take up their case” Victoria Dearing, Breckenridge Insurance Sompo International. “Employers will need to navigate not only federal laws in the rehiring process, but also state and local employment laws.” He adds that these multi-layered considerations have already driven increased litigation. When the pandemic started ramping up in mid-March, insurers began scrutinizing the risk profiles of their books of business more carefully. Many started turning down new business completely or, at the very least, became pickier with hard-hit classes like media, entertainment, retail
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even before the pandemic hit. Pricing and retentions have been increasing over the past couple of years, and insurers have been managing limits and enforcing elevated premiums. “Carriers have been dealing with increased pressure on results from unfavorable loss development from prior underwriting years, and there is a robust pipeline of pending claims,” says Micah Ponto, VP and national practice leader at Arch Insurance. Those claims include ones resulting from the #MeToo movement and, more recently, the envi-
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ronment of political unrest and racial injustice that has taken center stage across the US. Racial discrimination has also been a leading factor in filings with the US Equal Employment Opportunity Commission (EEOC) over the last several years. The increased focus on structural discrimination raises the potential for it to translate into employeremployee relationships and result in an increase in discrimination claims. Social inflation has been a continuous driver of increased litigation and higher settlements as well. In some cases, investors are fronting expenses for lawsuits in exchange for a percentage of the settlement. Retaliation is also a big issue – EEOC data reveals that retaliation was cited in more than 39,000 charge filings in 2019, making up almost 54% of all charges last year. Ponto notes that “adding retaliation to an underlying race, age or sexual discrimination claim can have a multiplying effect on potential damages and overall claims costs and adds complexity to the claims handling process.”
COVID-19 claims trickle in During the pandemic, many small businesses have been able to keep employees on the payroll, thanks
to government assistance facilitated by the CARES Act, but businesses that didn’t qualify often were forced to lay off employees, resulting in growing claims activity. While some of these claims might not have legs, costs associated with defense will be unavoidable. Early in the year, courts shut down due to shelter-in-place orders and social distancing rules, pausing litigation temporarily. As courts reopen, Ponto expects an increase in lawsuits, especially in the areas of age-, race- and disability-based discrimination, as well as unsafe work conditions and wrongful termination. If rehiring employees, employers need to focus on documentation to promote consistency across the company and develop stringent plans for bringing their workforce back. Keeping proper records and being able to prove equity in the process can assist in defense against threats of litigation. Kelly says companies should also consider implementing diversity and inclusion policies, as stakeholders will hold them more accountable than ever before. “Take this opportunity to investigate wage gaps and find ways to proactively address them,” he advises. “It’s essential for companies to set a baseline and work toward improving that. These commit-
Wholesale & Specialty Insurance Association member to find a custom solution to a nonstandard risk. WSIA members will help you craft cost-effective, innovative solutions for your specialty and nonstandard risks. Combining the strength of the former AAMGA and NAPSLO organizations, WSIA members are your source for expert solutions.
THE MOST COMMON EMPLOYMENT CHARGES FILED 60%
Like working with a
53.8%
50% 40%
33.4%
33.0%
32.4%
30%
21.4% 20%
9.6%
10% 0%
Retaliation
Disability
Race
Sex (including LGBTQ+)
Age
National origin
4.7% Color
3.7% Religion
1.5%
0.3%
Equal pay
Genetic discrimination
Source: Equal Employment Opportunity Commission, 2019
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find WSIA members at wsia.org find WSIA members at
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wsia.org
23/10/2020 3:28:27 am
FEATURES
SECTOR FOCUS: EPLI
SIX WAYS TO REDUCE EPLI RISK The Insurance Information Institute recommends employers take the following steps to minimize the risk of employment practices lawsuits. Establish clear workplace policies Create written workplace policies on employment practices; post them and include them in employee handbooks. Establish a policy for employees to report concerns and for management to respond.
1
Educate management and employees Train management, supervisors and employees about ethical and legal workplace practices. Consider including diversity and sensitivity training as part of your employee education program.
2
Hire carefully Screen employees thoroughly, avoiding any discriminatory practices.
3
Provide job descriptions Clearly define job expectations for all employees.
4
Perform regular employee reviews Review employee performance and keep a written record of those reviews.
5
Keep documentation Maintain written records of all employmentrelated practices, complaints, investigations, responses, etc.
6
Source: Insurance Information Institute
“If unemployment remains high and job seekers take longer to find jobs, insurers will continue to experience negative trends” Micah Ponto, Arch Insurance ments, along with increased training on biases, can help improve workplace morale while also mitigating potential EPLI risk.” He adds that all major EPLI carriers offer robust suites of risk management tools that often go unused. Insureds may have access to a hotline where they can talk through employment scenarios with legal experts and discuss potential risks.
Coverage over price Given the growing exposures in EPLI, the coverage has never been more important,
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which is putting the onus on brokers and agents to have hard conversations with their clients. While some businesses struggling through the pandemic and might be considering dropping ancillary coverages, EPLI isn’t something companies can afford to be without, especially in this tumultuous environment. It would mean loss of retroactive coverage, as well as forfeiting ongoing protection if another wave of COVID-19 causes another round of closures. Ponto says brokers, agents and insureds need to build long-term relationships
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and trust with insurers to achieve a better outcome: focus on appropriate limits, balance retentions and deductibles against risk appetite and pricing expectations, and partner with a carrier that has a proven track record when it comes to claims handling. Thorough communication between the client, agent and carrier is paramount during this time as well. If someone sends a demanding letter or a complaint is filed with the EEOC, it needs to be rendered to the carrier as soon as possible. “People are hurting right now, and if they perceive they’ve been wronged, there are
plenty of attorneys willing to take up their case,” Dearing says. “It’s very expensive to fight it [at the] EEOC level and even more difficult if it ends up going to court.” The underlying challenge COVID-19 has presented to the insurance industry, the economy and employers will cast a long shadow over the EPLI market for years to come. Experts are predicting a hardening of price, capacity and underwriting for the sector over the next two to three years, Dearing says, and insurance agents can expect to see increases – large or incremental – followed by a flattening out for another year or two.
Dearing predicts it may be another year after that before the market starts to soften again. Severe financial distress could also lead to more employment-related actions and greater uncertainty for employers, further hardening the market. While some carriers have exited the market completely, others are returning with caution. “The industry is sorting through a large backlog of claims, which will cause uncertainty for years to come,” Ponto says. “If unemployment remains high and job seekers take longer to find jobs, insurers will continue to experience negative trends.”
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PEOPLE
OTHER LIFE
TELL US ABOUT YOUR OTHER LIFE Email iba@keymedia.com
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Age when Delp got into woodworking
Delp describes her job at a lu mber industry insurer as “sweet serendipity”
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Number of projects she’s completed so far
35"
Height of the largest piece she’s created (a bookcase)
ALONG THE GRAIN
Insurance analyst Sally Delp is following a family tradition as a third-generation woodworker SALLY DELP’S father and grandfather were both woodworkers. She grew up watching her father craft various projects out of wood, and it eventually became a form of bonding between them. “When I did my first woodworking project – a simple fireplace mantel – we worked on it together,” Delp says. “He passed away just five months after we finished that project, but I still feel him over my shoulder, giving encouragement and helping me solve problems on new projects.” Delp, who works as an IT governance analyst at Pennsylvania Lumbermens Mutual Insurance Company, says woodworking provides an outlet from her usual “buttonpressing” at the office. “Sanding, staining and sealing the wood are all meditative processes that give my mind freedom and release,” she says. “But the biggest benefit is that every aspect of the process brings me a feeling of closeness with my dad, whom I miss very much. Most of my projects are made from wood that I inherited from his stash, which even includes wood that he inherited from my grandpa in 1974.”
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