IBAMAG.COM ISSUE 9.10 | $12.95
Meet 69 young professionals who represent the future of the US insurance industry THE COUNTRY’S BEST BROKERAGES Who’s offering the best service, expertise, pricing and more? Clients tell all
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THE SURFSIDE CONDO COLLAPSE
How the disaster in Florida is impacting the market for condominium insurance
IN SICKNESS AND IN HEALTH
The outlook for medical professional liability in the wake of COVID-19
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ISSUE 9.10
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CONTENTS
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UPFRONT 02 Editorial
FEATURES
30
THE PROGNOSIS FOR MEDICAL PROFESSIONAL LIABILITY
As COVID-19 continues to ravage the healthcare space, what does the future hold for MPL?
SPECIAL REPORT
RISING STARS
19 33
IBA spotlights 69 young professionals who are bringing new ideas and fresh energy to the US insurance industry
PEOPLE
INDUSTRY ICON
The practicalities of creating a hybrid workplace
04 Statistics
Key data that should be on your radar
06 News analysis
The Florida condo collapse has put condo coverage under a microscope
08 Intelligence
This month’s big movers, shakers and new products
10 Workers’ comp update
How the pandemic has affected the ongoing opioid crisis
12 Technology update
What risks should SMEs be aware of when they go digital?
14 Opinion
The steps insurers must take to address building failures
FEATURES SPECIAL REPORT
5-STAR BROKERAGES
Insureds name 39 brokerages that have found the right blend of service and expertise
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As president of Munich Re Specialty Insurance’s E&S division, Jill Beggs is helping the insurer take the surplus lines market by storm
42 Building connections across cultures
A guide to navigating cultural differences in the workplace
44 Leadership in the postpandemic workforce
Five ways to adapt to the changes brought about by COVID-19
46 Unleash your team’s creativity Four common creativity blockers – and how to push past them
PEOPLE
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FEATURES
CLIMBING TO THE TOP
How a winning culture has helped The Liberty Company Insurance Brokers keep growing throughout the pandemic
48 Other life
Swinging for the fences with field rep and softball coach Chad Kerr
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UPFRONT
EDITORIAL
What’s needed in a hybrid work model
I
t’s fair to say that, by and large, working from home has been a success. There has been no apocalyptic decline in employee productivity, which some naysayers projected at the start of the pandemic. Rather, with all the advancements in digitalization over the past 18 months, employee productivity seems to have improved – or at least evolved to meet modern expectations. Insurance organizations around the world are slowly announcing their returnto-office plans for when COVID-19 restrictions are lifted. Many companies are promising hybrid working models, with a split between working from the office and working remotely. While it’s great that insurance companies are offering more flexibility, it’s important for employers to set strong boundaries – and stick to them – if they want a hybrid model to be successful.
Those everyday, real-life distractions are often priorities for people, and they’re not going to disappear when COVID-19 is eventually brought under control One key boundary revolves around working hours. Many employees feel like they’ve worked longer hours throughout the pandemic. That doesn’t mean everyone is sitting at their laptops from 8 a.m. until 8 p.m. every day just for the sake of it. Rather, people are working in stints with regular breaks for caregiving activities, household chores and so on. While they might not be working longer hours in a straight-through shift, they are likely working more hours in total because their days are disjointed and their productivity comes in shorter bursts. This is not sustainable in the long term. If insurance employers are going to maintain some amount of remote work, they need to ensure that employees are set up to achieve their daily tasks in a set (and healthy) amount of hours. Employers can’t forget the lessons learned during COVID-19. How many of you discovered something about a colleague through a snapshot into their life on a Zoom call? Perhaps they’ve got kids running around in the background, or they’re caring for elderly parents, or they’ve got very little space for their remote work setup. Those every day, real-life distractions are often priorities for people, and they’re not going to disappear when COVID-19 is eventually brought under control. If insurance organizations want to operate under a hybrid model, they need to remember that their employees are juggling those priorities with their work responsibilities, and they need to make sure they’re able to do so comfortably and effectively. The team at Insurance Business America
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UPFRONT
STATISTICS RANSOMWARE DEMANDS ESCALATE
$1.2 million
Average ransom demand in the first half of 2021
$450,000
Average ransom demand in the first half of 2020
57%
Increase in attacks against organizations with fewer than 250 employees
YEAR-OVER-YEAR PRICING CHANGE Property Casualty Financial and professional lines
30% 27%
PRICE INCREASES TAPER OFF
24%
For the third consecutive quarter, the US insurance market has seen a slowdown in price increases. Prices rose by 12% year-over-year in the second quarter of 2021, down from 17.7% three quarters prior, according to Marsh. Q2 also brought the sharpest deceleration of property prices so far, although Marsh pointed out that the spate of wildfires in the West has caused the market to deteriorate for clients heavily exposed to this risk. Casualty insurance pricing increased by 6%, driven down by competition in the workers’ comp market, although rate pressure is expected to continue for excess liability throughout 2021. Financial and professional lines increases remained stable at 25%, driven by D&O and cyber pricing.
18%
21%
15% 12% 9% 6% 3% 0% -3%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
CONSTRUCTION MARKET TO SEE DOUBLE-DIGIT INCREASES Construction firms can expect significant increases on many lines of coverage this year, according to Gallagher. In addition to raising rates, carriers have been making an effort to tighten their underwriting standards and have also been introducing new exclusions.
PROJECTED RATE CHANGES IN THE CONSTRUCTION MARKET IN 2021
28%
Increase in the number of funds transfer fraud attacks Source: H1 2021 Cyber Insurance Claims Report, Coalition
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Auto Up 10% to 20%
Contractors’ professional/pollution liability Up 20% with reduction in capacity
Builder’s risk Flat to up 10%
Cyber Up more than 25%
Subcontractor default insurance Flat to up 10%
Builder’s risk frame Up 10% to 30%
General liability Up 5% to 10%
Umbrella/excess Up 5% to 15%
Commercial property Up 5% (50% for CAT exposures)
OCIPs/CCIPs Up 5% to 20%
Workers’ compensation Flat Source: Spring/Summer 2021 Construction Market Update, Gallagher
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SMALL BUSINESSES FEEL NEGLECTED BY THEIR INSURERS Small businesses’ satisfaction in their insurers continued to decrease in 2021, falling 15 points over the past two years, according to a recent study by J.D. Power. The drop in satisfaction was mainly attributed to a lack of proactive support and personalized attention from insurers and agents.
32% of small businesses said they had to exert a great deal of effort to contact their agent (compared to 10% a year ago)
46% of small businesses encountered problems or billing issues (versus 26% a year ago)
45% of businesses said their agent reached out proactively to discuss business needs (compared to 19% a year ago)
Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Source: Global Insurance Market Index, Q2 2021, Marsh
Source: 2021 US Small Commercial Insurance Study, J.D. Power
SECURITIES CLASS ACTIONS DECLINE AGAIN
INSURERS BULLISH ON 2021 GROWTH PROSPECTS
The number of securities class action cases is expected to drop to 182 for 2021, according to Woodruff Sawyer, which would put it below the 10-year average of 186 cases. If so, it would continue the downward trend from the high of 268 cases reached in 2019.
Amid an easing of COVID-19 restrictions, many insurers have adopted a post-pandemic growth strategy and are looking to the future with optimism, according to Deloitte’s latest report on the industry. More than half of the senior insurance executives Deloitte surveyed anticipate both top- and bottom-line growth in 2021.
NUMBER OF SECURITIES CLASS ACTIONS FILED IN THE US
Positive
10-year average
300
16%
250 200 150
25%
100 50 0
About the same
2017
2018
2019
2020
TOP-LINE EXPECTATIONS FOR 2021 VERSUS 2020
Negative
23%
59%
21%
BOTTOM-LINE EXPECTATIONS FOR 2021 VERSUS 2020
56%
2021 (projected) Source: D&O DataBox, Woodruff Sawyer
Source: Midyear 2021 US Insurance Outlook, Deloitte
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UPFRONT
NEWS ANALYSIS
The aftermath of the Surfside collapse Following the devastating collapse of a high-rise condo in a Miami suburb in June, brokers and agents have been forced to adapt as carriers tighten up underwriting for condominium coverage
THE COLLAPSE of the Champlain Towers South condominium in Surfside, Florida, on June 24 was an unprecedented tragedy that created a ripple effect across the insurance industry. The catastrophe has introduced new risks to the condominium insurance market, forcing underwriters to carefully examine every exposure and making it much more difficult for brokers and agents to secure adequate coverage for their clients. The result has been not only increased
Anticipating underwriting questions, getting comfortable retaining more risk and building a strategy five to six months before renewal are all important practices for agents and brokers to impress upon their clients. “We’re seeing a movement of these condos to our residual market in Florida called Citizens Insurance,” Popilek says. “This carrier has been a great solution for us in navigating these types of environments, but has a tremendous amount of difference between
“As we learn more about what caused the collapse, we’ll see more tailored exclusions and modifications to coverage as we move forward” Scott Popilek, Risk Strategies pricing on policies, but also greater scrutiny on brokers and condo associations. “The collapse has now exacerbated the situation for older properties in our territory,” says Scott Popilek, Atlantic regional leader at Risk Strategies. “We’re seeing even greater increases and seeing carriers removing themselves from insuring those types of buildings.”
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the coverages it provides versus what the standard market does.” Supplying carriers with accurate data should also be a priority for brokers and condo associations. “In the past, there was a lot of flexibility from carriers, but going forward, carriers will be taking stronger positions and poten-
tially void an application if data is incorrect,” Popilek says. Carriers have begun reaching out to brokers and condo associations for information such as engineering reports, reserve analysis forms and certifications for properties in South Florida to protect against emerging risks following the collapse. New exclusions are coming into policy forms on all fronts, increasing the importance of a comprehensive risk management and loss control program for condominiums. “With directors & officers liability, we’re seeing an absolute exclusion for property damage and bodily injury,” Popilek says. “In some situations, D&O policies would allow you to carve back some coverage for that exposure. Going forward, those coverages won’t be available.” Carriers are also removing property damage or bodily injury from E&O policies. It’s an educational process for condo associations right now as they navigate changes and exclusions in their coverage. “We’re seeing a lot of discussion around defense cost,” Popilek says. “If you have a million-dollar limit for directors & officers, the defense cost is outside of that limit.
COMMON CONDO COVERAGES
Commercial general liability Offers coverage in cases of damage or injury on-site but does not cover all risks
Commercial property Insures physical assets against unforeseen circumstances, including catastrophic events, theft or vandalism
D&O million-dollar limit for directors & officers, the defense cost is outside of that limit. Carriers are now putting the defense cost in the limit.” The Surfside tragedy has created a great deal of uncertainty, which has pushed the insurance industry to analyze the extensive nature of the building’s collapse. “As we learn more about what caused
growing in importance in the aftermath of this tragedy. Pollution policies provide coverage for exposures to airborne particulates like dust and debris, as well as damage to adjacent properties in the event of a catastrophic property event like Surfside. A property policy excludes most pollution conditions, which puts site pollution liability in the
“These events are unprecedented; as operating businesses become more complex, there are exposures that haven’t been thought of ” Beth Linton, Environmental Underwriting Solutions the collapse,” Popilek says, “we’ll see more tailored exclusions and modifications to coverage as we move forward.” Another area of insurance that has been impacted by the Surfside collapse is environmental liability. Beth Linton, vice president at Environmental Underwriting Solutions, says site pollution liability coverage has been
hands of environmental underwriters. “If a condominium has a comprehensive pollution policy and extends to mold coverage or any other air constituent, then a condo would have coverage that is going to be excluded from property or general liability policies,” Linton says. Condo associations, or any business
Protects the personal assets of condo association members and boards of directors; can cover legal fees and other costs in the event of a lawsuit
E&O Insures condo associations or boards against negligence claims that owns condominiums, should reach out to their agent or broker to see what coverages are available, Linton advises. And as the insurance landscape becomes more litigious and complex, a holistic approach to coverage is increasingly vital. Agents and brokers must take the time to do a complete assessment of risk and accurately present those risks to insurance carriers. “These events are unprecedented; as operating businesses become more complex, there are exposures that haven’t been thought of,” Linton says. “It’s bringing to light that you need to take a holistic approach to your insurance, and a big part of that is going to be pollution liability.”
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UPFRONT
INTELLIGENCE CORPORATE ACQUIRER
TARGET
PRODUCTS COMMENTS
Applied Underwriters
Alaska Timber Insurance Exchange (ATIE)
ATIE has received regulatory approval for its conversion from a reciprocal to a stock insurance company; its sale to Applied is expected to be finalized in the fourth quarter
DUAL
Align Financial Holdings
The deal will significantly expand DUAL’s US market share, taking it from around $450 million to more than $1 billion
Gallagher
Willis Re
Gallagher’s purchase of the Willis Towers Watson unit is forging ahead, despite the collapse of the WTW-Aon merger
HUB International
Dissinger Reed
Kansas-based Dissinger Reed will boost HUB’s capabilities in the collegiate and high school sports insurance market
Inszone Insurance Services
Summit Insurance Group
The deal gives Inszone access to the Missouri market, expanding its presence to six states
OneGroup
Thomas Gregory Associates Insurance Brokers
Located in Massachusetts, Thomas Gregory Associates provides P&C insurance to clients in the food and agribusiness industries across the US
Risk Strategies
Danna-Gracey
Established in 2001, Florida-based Danna-Gracey specializes in medical malpractice insurance
USI Insurance Services
Reynolds & Reynolds
The acquisition of the Iowa-based risk management and employee benefits agency expands USI’s Midwest footprint
Venbrook Group
RD Parisi Associates; David Morse Associates
The duo of acquisitions strengthens Venbrook’s employee benefits and claims adjusting capabilities
PURE Programs, Palomar build high-net-worth offering
Gallagher moves ahead with Willis Re acquisition
When the Willis Towers Watson-Aon merger fell apart in July, Gallagher’s acquisition of Willis Re – originally proposed as a regulatory remedy to the mega-merger – appeared to hang in the balance. But in August, Gallagher announced that the Willis Re deal is still on, to the tune of an initial gross consideration of $3.25 billion, plus potential additional consideration of $750 million, subject to certain third-year revenue targets. The acquisition includes all of Willis Re’s treaty reinsurance brokerage operations, which are spread across 24 countries and place over $10 billion of premium annually. The integration of the two businesses is expected to take around three years. Commenting on the deal, Gallagher chairman, president and CEO J. Patrick Gallagher Jr. said that broadening its reinsurance brokerage offerings has been a strategic objective for Gallagher and that the acquisition of Willis Re will “significantly enhance” its global value proposition. “We were very impressed with the Willis Towers Watson reinsurance professionals we met during our initial due diligence and strongly believe a combination will significantly enhance our offerings to clients and prospects,” he said.
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MGU PURE Programs has partnered with specialty insurer Palomar Holdings to provide an insurance program for owners of high-value homes undergoing complex construction projects. The program is designed for luxury construction projects requiring up to $20 million in coverage, including new builds, major renovations and additions. Palomar Holdings’ surplus lines subsidiary, Palomar Excess and Surplus Insurance Company, will act as the insurer for the program, while PURE Programs will oversee insurance operations, including underwriting, risk management and claims.
Skuld adds automated claims processing tool
Marine insurance provider Skuld has launched an online claims tool designed to automatically reimburse members for crew claims. Available on the insurer’s website, the tool allows members, clients, brokers and crewing managers to notify Skuld of crew claims and add information, documents, and cost. According to Skuld, simple claims will be handled automatically, with cash reimbursement processed as quickly as allowed by the banking system, while more complex cases will be reverted to the insurer’s claims handlers.
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PEOPLE Sentry launches risk management tool for auto dealerships
Sentry Insurance has launched Sentry Risk Factor, a proprietary risk management tool for auto dealerships. The process begins with an in-depth conversation about a dealership’s safety culture, which allows a Sentry representative to evaluate, identify and measure potential risks. The representative then assigns the dealership one of three rankings – best in class, average or red flag – which the Sentry Risk Factor tool uses to generate a report detailing the results and recommending steps to help the dealership mitigate risks.
Mover’s Choice enhances moving and storage product
Mover’s Choice, a division of Specialty Program Group, has launched Property Performance Plus (P3), a new moving and storage insurance product. P3 upgrades the existing Mover’s Choice property program by adding additional coverage, such as water seepage and extra expense, and increasing limits for debris removal, pollutant cleanup, and ordinance or law to match the increasing costs associated with claims. According to Mover’s Choice chief underwriting officer Terri Morran, the product changes will not result in increased rates for existing clients.
CFC launches tool to help prevent phishing attacks
Specialist insurance provider CFC has added a new phishing simulation tool to its Response mobile app. The tool allows users to run a simulated phishing campaign against a targeted list of colleagues whose credentials have been exposed on the dark web. Users can send simulated phishing emails with a single click on the app. Targets who erroneously click on a link in the email are redirected to an educational page where they can learn how to identify and prevent future phishing attacks and social engineering campaigns.
NAME
LEAVING
JOINING
NEW POSITION
Ana Perez
League
Benefitfocus
Chief marketing officer
Andre O’Reggio
Marsh
Beecher Carlson
Managing director, executive liability practice
Bruce Bahn
BCS Financial
Risk Placement Services
Vice president, business and product development
Caitlin McGrath
Lockton
Swiss Re Corporate Solutions
Head of crisis management and product recall
David M. Johnson
N/A
FM Global
Senior vice president and chief client experience officer
Julie Stephenson
CNA
Swiss Re
Global head of casualty
Kelly Kinzer
N/A
Zurich North America
Head of construction casualty
Lyndon D. Broad
N/A
FM Global
Senior vice president and chief underwriting officer
Martin Loth
N/A
The Liberty Company Insurance Brokers
Executive board member
Mike Golonka
MetLife Auto
Smart Choice Agents Program
Vice president of strategic partners
Peter Kasahara
PwC
Zurich Insurance Group
Group chief data officer
Scott Christian
Guy Carpenter
BMS Re
Executive vice president, catastrophe analytics
Thomas Andrews
Dixon Hughes Goodman
Smart Choice Agents Program
Vice president of finance
Swiss Re Corporate Solutions names head of crisis management and product recall
Swiss Re Corporate Solutions has appointed Caitlin McGrath as head of crisis management and product recall. She will be responsible for growing the company’s presence in this area of the market and bringing new talent to its team. McGrath has 11 years of industry experience as both a broker and an underwriter; prior to joining Swiss Re Corporate Solutions, she developed Lockton’s first domestic product recall practice group. “Under Caitlin’s leadership, we will continue to grow our presence in crisis management and product recall so that even more customers can benefit from our market-leading capacity and innovative, tailored coverage,” said Laura Coppola, global head of FinPro and North America head of casualty for Swiss Re Corporate Solutions.
The Liberty Company Insurance Brokers adds industry veteran to its board
The Liberty Company Insurance Brokers has appointed Martin Loth as an executive board member. Loth has more than 35 years of industry experience and was president and CEO of BB&T Insurance Services of California for 13 years until his retirement in 2019. Prior to BB&T, he held senior leadership positions at various international brokerage firms. “I am excited to join Liberty’s board,” Loth said. “The business model established by [co-founders Bill Johnson and Jerry Pickett] is compelling, and the culture based on integrity and inclusion is outstanding. I look forward to lending my experience towards Liberty’s future success.”
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UPFRONT
WORKERS’ COMP UPDATE NEWS BRIEFS Contractors’ first-year employees pose greatest risk
New construction employees have the greatest risk of injury on the job, accounting for a third of claims paid out, according to a new report by AmTrust Financial Services. The report, based on an analysis of 26,000 workers’ comp claims over 10 years, also found that construction companies in business for fewer than four years accounted for 75% of claims paid out. In addition, the report revealed that workers’ compensation claims tend to peak during the summer, and environmental issues such as heat and smog also increase workers’ comp claims in warmer months.
Pie Insurance makes deal for P&C carrier Western Select
Workers’ comp insurtech Pie Insurance has been granted approval by the Illinois Department of Insurance to acquire Western Select Insurance Company, a P&C insurer licensed in Illinois, California and New York. Once the acquisition is finalized, Western Select will be rebranded as Pie Casualty Insurance Company. According to Pie co-founder and CEO John Swigart, the purchase of Western Select is “a key milestone on the path for Pie to write our own policies and to bring our seamless commercial insurance experience to even more small businesses across the country.”
COVID-19 did not significantly affect access to care
The COVID-19 pandemic did not adversely impact access to care, as measured by the time from injury to initial treatment, according to a new report from the National Council on Compensation Insurance (NCCI).
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However, it did produce a backlog of surgeries in April and May 2020, which eventually diminished throughout the summer. NCCI also found that the pandemic might have led to increased use of noninvasive treatments.
NFP establishes occupational health and safety business unit
Insurance brokerage NFP has formed a new Occupational Health and Safety (OHS) Group to offer its clients comprehensive occupational health, safety, loss control and organizational effectiveness services, as well as online training. The OHS Group will provide clients with real-time remote job site surveys, consultation and reviews through a tech-enabled team of specialists. The new unit will also offer ISO consulting, regulatory compliance (including OSHA), organizational safety effectiveness and leadership, loss control and claims advocacy, and ethics and sexual harassment training.
Workers’ comp claims still down in certain industries
A year and a half into the pandemic, the hospitality industry is still reporting significantly fewer workers’ comp claims than it did in 2019, according to a new analysis of claims data from claims management firm Mitchell International. Other industry sectors that have been subject to heavy COVID-19 regulations, such as arts and entertainment and education, have also not seen a return to pre-pandemic claim volumes. However, other sectors, including healthcare and retail trade, are returning to or even exceeding normal levels of workers’ compensation claim volume. Mitchell International found that healthcare is still the largest source of COVID-19-related workers’ comp claims, accounting for around half of all COVID-19 claims.
The opioid crisis amid COVID-19 The pandemic has brought a new level of complexity to America’s ongoing battle with opioid addiction
At the same time that COVID-19 continues to devastate the entire world, more than half of US employers are also battling issues of substance misuse, according to a new study by The Hartford. The insurer’s 2021 Future of Benefits Study revealed that 52% of US employers are experiencing significant or severe workplace issues due to substance misuse or addiction among their employees. According to Mary Nasenbenny, chief claims officer at The Hartford, the pandemic did nothing to slow down opioid misuse; in fact, it may have made things worse. “The opioid epidemic has been exacerbated by the pandemic, with the US Centers for Disease Control and Prevention reporting a record number of drug overdose deaths that occurred in 2020,” she says. One might assume that pandemic-related lockdowns would have led to fewer workplace injuries, and thus fewer chances for workers to misuse opioid treatments, but Nasenbenny says that even as businesses turned to remote work, injuries continued to happen. “As more and more employers are concerned with protecting their workers’ health and safety during the pandemic, the number of new customers seeking The Hartford’s injury prevention services has jumped by 200% in the past 18 months,” she says. However, Nasenbenny says stigma still often prevents workers from getting proper help, making the opioid addiction issue worse
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– 72% of respondents to The Hartford’s study said the stigma associated with mental illness keeps US workers from seeking help. That means it will take a coordinated effort to solve the opioid crisis, Nasenbenny says. “At The Hartford, we believe efforts at all levels of government and the business community are necessary to help end the ongoing opioid crisis,” she says, adding that the workers’ comp industry should use its voice to “champion public policy solutions and encourage stigma-free work environments.”
“Efforts at all levels of government and the business community are necessary to help end the ongoing crisis” Employers also have a critical role to play, Nasenbenny says. “We know from our decades of experience in workers’ compensation and disability insurance that many health conditions can be prevented or mitigated through actions by employers and employees.” One way for employers to do their part is to educate themselves and others to minimize the stigma against addiction, which prevents treatment. Nasenbenny also recommends that employers look to partner with policymakers to develop solutions and evolve benefits plans and support services to meet their employees’ changing needs.
Q&A
Laura Kersey Division executive – regulatory & legislative analysis NCCI
Years in the industry 25 Fast fact Before joining NCCI in 2011, Kersey was assistant vice president for government relations in the American Insurance Association’s Northeast regional office
The lowdown on presumption laws NCCI’s recent Regulatory and Legislative Trends Report found that COVID-19 presumption laws continue to be a hot topic in workers’ compensation legislation in 2021. What do insurers need to know? NCCI monitored COVID-19 workers’ compensation presumptionand compensability-related legislation in approximately 30 states and the District of Columbia, as well as at the federal level. Many of these bills propose to establish presumptions that the contraction of or exposure to COVID-19 arises out of and in the course and scope of employment and is a compensable injury or disease. In 2020, nine states enacted COVID-19 presumption legislation: Alaska, California, Illinois, Minnesota, New Jersey, Utah, Vermont, Wisconsin and Wyoming. Many of the COVID-19 workers’ compensation presumptions were temporary in nature, meaning the presumption is applicable for a certain period of time or expires when the jurisdiction’s state of emergency ends. This year, several states that enacted COVID-19 presumption legislation in 2020 took additional action to extend and/or expand those presumptions. Five states – Alaska, Illinois, Minnesota, Vermont and Wyoming – have enacted legislation to date. Other states considered establishing new workers’ compensation presumptions for COVID-19 for certain workers. To date, two states – Texas and Virginia – have enacted new COVID-19 presumptions.
Which industries are most impacted by these laws? Many of the proposed and enacted COVID-19 workers’ compensation presumptions are applicable to first responders, healthcare providers and public safety employees. Some states considered COVID-19 workers’ compensation presumption legislation that is applicable to additional essential workers, such as school employees, grocery and transportation workers. In addition, a few states proposed and/or enacted COVID-19 workers’ compensation presumptions that are broader and appear to be applicable to all employees under certain conditions.
As more states consider presumption laws, should workers’ comp insurers be worried about paying more for COVID-19-related claims? And what about for future global health crises? In 2021, several states proposed legislation to create workers’ compensation presumptions that could be applicable beyond the current COVID-19 pandemic. At least a dozen states considered legislation that would establish workers’ compensation presumptions for infectious diseases and pandemics. While several of these bills specifically mention COVID-19, these proposals also contain terms such as “contagious disease,” “COVID-19 or similar disease” or “other future qualifying pandemic.” Many of these proposals do not include sunset provisions or expiration dates. Two states – Tennessee and Washington – have enacted legislation to date.
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UPFRONT
TECHNOLOGY UPDATE
The many risks of digital transformation Digitalization has its advantages, but small businesses need to be ready for additional risk exposures
exclusive to SMEs – larger corporations face the same exposures, but SMEs have put more focus on digitalization in recent times. “Large businesses had long been investing in digital,” Updyke says, “but as importance in these initiatives increased and costs around innovation became more scalable, the time for small and mid-sized businesses to engage was ideal.” When it comes to protecting against cyber threats, Updyke says that “taking basic precautions can make it more difficult for a
“Taking basic precautions can make it more difficult for a company to be victimized”
While most small and medium-sized enterprises are eager to do business digitally, a lack of understanding of and preparedness for the potential risks has presented a major challenge, according to a recent report by Chubb and Accenture. The report identified several risks SMEs are likely to encounter when going digital, including legal risks resulting from collecting large data sets, liability from misuse or misrepresentation of client data, reputational risk and a need for incident response services due to cyber breaches, liability exposures arising
NEWS BRIEFS
from product failure, and machine errors arising from technology failure. According to Jeffrey Updyke, division president of Chubb Small Business, all of these risks are equally capable of disrupting SMEs. “Having a customer nowadays typically translates into a digital relationship, and in many cases, that means using sophisticated online gathering tools,” he says. “Misusing, misplacing or misappropriating that information can mean a breach of customers’ trust and expose businesses to significant liabilities.” Updyke stresses that these risks are not
Sedgwick announces upgrade to smart.ly platform
Sedgwick has updated its smart.ly intake and incident management platform to enhance its functionality and potential to take on a wider range of scenarios. The upgrades include realtime system interactions, optical image analysis and robotic process automation. According to Sedgwick, the platform’s AI and automation capabilities take the approval process for a claim or case from days to seconds, while connected APIs allow the platform to obtain and share information between sources instantly.
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company to be victimized. Plan B is often more important than Plan A. The goal of cyber resiliency is to minimize impact of a cyber incident. Businesses should identify single point of failures that could impact their ability to operate and be ready with a backup plan.” He also recommends that SMEs carefully vet their third-party vendors, as vendor business issues can carry over to customers. Yet even with the best mitigation techniques, risks can’t be avoided entirely. “It is therefore critical that businesses have the appropriate insurance policies in place to help fill the gaps,” Updyke says. “These include general liability, professional liability, excess casualty and cyber policies.”
Duck Creek teams up with background check provider
Employment screening provider Accurate Background has joined the Duck Creek Partner Ecosystem. Accurate Background provides a seamless integration to connect Duck Creek customers with its array of pre-hire, employment screening and monitoring services, including business intelligence, e-verify, credit checks, I-9 verification, global searches, criminal background checks, identity management, criminal activity monitoring, social media searches, and drug and health screening.
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Q&A
Greg Murphy
How COVID-19 has changed the insurance market
Executive vice president, North America INSTANDA
Years in the industry 4 Fast fact Before joining INSTANDA last year, Murphy served as vice president of business transformation and IT strategy at W.R. Berkley Corporation
How has risk changed during the pandemic? We’re seeing over 40% of the population working from home, a figure that increased by 87% due to COVID-19. As a result, the lines between business and personal insurance are blurring in an unparalleled way. This puts more of a responsibility on businesses to decide how best to insure employees in case of accidents at home during the workday. US businesses that previously thought themselves immune to the dangers of a pandemic have had a wake-up call, and business disruption will become an industry priority. However, how insurers define business disruption coverage, cover it and underwrite it will take on a different dimension following COVID-19.
How has your platform helped insurers better serve their clients in this difficult time? Serving clients through times like this is INSTANDA’s bread and butter. Firstly, because we are a SaaSbased, fully digital platform, nobody has to implement servers physically. You’d be astonished at how many insurance companies still use paper methods, wasting time and resources. INSTANDA’s platform also works iteratively, which has been essential – things changed day by day, so continually amending coverages and underwriting processes was key, as was speed. For example, speed to market during a pandemic would traditionally not have been possible, with companies effectively shut down and resources limited, but with INSTANDA, we
Lloyd’s partners with geospatial insurtech
Lloyd’s has entered into a two-year partnership with geospatial insurtech McKenzie Intelligence Services. The company’s Global Events Observer (GEO) platform will offer the Lloyd’s market access to multi-source intelligence, including satellite imagery, to help deliver faster claims decisions and payments. The GEO platform can provide real-time analysis of perils such as storms, wildfire and flooding, allowing Lloyd’s market insurers to instantly assess damage when physical access is limited following a natural disaster.
can remotely bring an insurance product to market in four to 12 weeks.
Post-pandemic, which lines of insurance do you think will benefit the most from INSTANDA’s policy administration platform? First, making sure that people truly are covered from the liability of a potential pandemic, or even the results of the pandemic, is huge, so that product line is sure to be sold like crazy in the future. Next, I would point to cyber. During the pandemic, by necessity, everything moved online. Because of this, the risk of cyberattacks increased, and the growth of cyber coverages is through the roof. This is a perfect line for INSTANDA to manage because its fast evolution fits our flexible product platform very well. Business disruption is also sure to be a highly sold line due to the pandemic, as will life insurance. The pandemic served as a reminder that life insurance is essential at all ages.
What types of complex insurance products do you see those lines coming up with? Viruses are now natural disasters, just like hurricanes or earthquakes. I see viruses being dealt with in contracts as standard; they are a risk, and now are a fear, and the market will sell to that. We will likely see distinct virusrelated coverages for business disruption, with nuances relating to home versus office working as they blend.
Crawford & Co. acquires digital claims handler
Crawford & Company has acquired tech-enabled contents claims handler edjuster, which offers a contents inventory and valuation platform for both high-severity complex claims and highvolume small claims. Crawford said the acquisition will add a digital component to its existing contents valuation service. “This combination will bring together Crawford’s global reach and expansive services with edjuster’s digital capabilities and niche expertise,” said Pat Van Bakel, president of loss adjusting for Crawford North America.
Guidewire snaps up property risk insurtech
Insurance platform provider Guidewire has acquired HazardHub, an insurtech that provides property risk insights to the P&C insurance sector. HazardHub curates, analyzes and distills data to deliver a national catalog of risks that can damage or destroy property, including perils such as wind, flooding, earthquakes and wildfires. According to Guidewire, HazardHub’s API can provide risk scores and information for any property in the United States in less than two seconds.
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UPFRONT
OPINION
GOT AN OPINION THAT COUNTS? Email iba@keymedia.com
How to address building failure As investigators study why buildings collapse, the insurance industry is working on how to respond from a coverage perspective, writes Chris Smith IN MANY ways, we are blessed with today’s buildings and engineering marvels. We often don’t think of the challenges involved in building these structures, or the maintenance and upkeep needed to keep them safe and secure. When buildings collapse, as the Champlain Towers South condominium in Surfside, Florida, did in June, it only reminds us of the continued need to make sure we do everything we can to maintain structural integrity throughout the building’s use. These horrible accidents show just how much risk comes with the construction and maintenance of large structures. When collapses do happen, they challenge us to understand what happened and make sure that buildings constructed at the same time or by the same developer or builder are not also at risk. The implications for insurers are significant. Questions are raised and answers are sought. As an industry, insurance looks for the appropriate response, and also for solutions. In the immediate aftermath of a collapse, we’ve seen carriers pull back, some mid-quote, from insuring projects. Many go back and review their quotes and pricing, and a few adjust their language to reflect the potential for future catastrophic building failures. While carriers are not eager to assume other building failures will occur, they must consider how that potential would affect future claims and reserves. That’s where the questions come in. Without concrete answers, underwriters are adding new considerations to their current underwriting processes: what’s being done
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now, what else should be done and what should be avoided. In many ways, some of the answers could make little difference, depending on the state’s statute of repose – the limit of liability on an alleged injuring party. After a specified amount of time has passed, the law does not allow for a lawsuit alleging injury. Until cause is determined, carriers will be looking state by state to see what the statute of repose is and what buildings exist within their books of business that could be of concern.
appealing to underwriters has become a little more difficult. Expect more questions around quality control – what QA/ QC actions are in place, what documentation can verify that and how actively quality control is being managed. Early in the insurance renewal process, insureds should work with carriers and underwriters to discuss the risks, safeguards and best practices they are expecting. Those insureds that don’t have best practices in place will likely have a difficult time with quotes and renewals. Whatever comes of the Surfside investigation, everyone – the insurance carrier, the builder and the contractor – will be holding their collective breath. Should the cause be determined to be something that is current practice, projects started within the last few years would be scrutinized or put on hold mid-project. What we do know is that everything is under review. Maintenance practices, construction and materials, location, and natural elements are all being examined. Until there is a final determination on a cause – if there is one – the insurance industry must look ahead with some uncertainty.
“Now is the time for owners and developers to approach their insurance carriers to reassure them they are doing everything they can to deliver and maintain safe structures” With so much attention being paid to current and upcoming projects, the concern for insureds is what the future holds for their own insurance programs. Now is the time for owners and developers to approach their insurance carriers to reassure them they are doing everything they can to deliver and maintain safe structures. In fact, working with the carrier can help insureds get a broader view of what carriers’ concerns are and what areas of their business they can improve to appeal to underwriters. Now that carriers are adding more questions and raising their expectations,
Without knowing the risks of buildings with similar locale, structural or weatherrelated conditions, carriers will be doing their best to apply more general protections around their books of business. One big question remains, however: Are building collapses isolated incidents or an industrywide wake-up call? Chris Smith is senior vice president of construction at global insurance brokerage NFP. He brings a balanced blend of underwriting, risk management and construction expertise to help clients build their businesses.
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Every Account We Write Is a Custom Design “We recognize it is a competitive market and we look to differentiate. That starts with understanding who our customers are and what they are looking for in terms of a relationship with a carrier. From there, we find a way to develop solutions while maintaining really strong relationships with these clients.”
– Gus Aivaliotis, Chief Underwriting Officer
Gus Aivaliotis with members of Underwriting
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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PEOPLE
INDUSTRY ICON
IN GROWTH MODE Jill Beggs, president of E&S lines at Munich Re Specialty Insurance, tells IBA how her new unit is making the most of the current market conditions
THE EXCESS & SURPLUS lines market in the US is constantly shifting and evolving to meet emerging needs. That adaptability is one reason why the E&S market has done so well in recent years, riding a solid growth curve and collecting record levels of premium. Seeing opportunities to build strong momentum in the E&S market, Munich Re launched Munich Re Specialty Insurance (MRSI) in January 2019 with a directive to deliver specialty property & casualty insurance products and services in North America. When MRSI came into fruition, Jill Beggs was 17 years into a successful career with Munich Reinsurance America, where she had worked her way up the ranks from senior vice president and production underwriter to property underwriting manager, head of specialty lines underwriting (where she led ocean marine, surety, political risk and trade credit reinsurance for the US), and finally head of new strategic markets, where she built a practice responsible for driving innovation and oversaw corporate communications, the data hunting team and cross-platform development. In April 2019, Beggs took the opportunity to join MRSI as president of E&S lines. Since then, the E&S unit has launched 10 products, built a team of 35 people and, as of
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August 2021, has more than $200 million of gross written premium in the marketplace. “Our E&S business is going really well,” Beggs says. “The market has been very receptive to us, which I’m really thankful for. January of 2019 was a good time for us to enter the market. The Munich Re name is familiar, we’re an A+-rated carrier, and we’ve got a good reputation in the market. I think the brokers were very pleased to see that we were looking at the primary market
Adapting to the market The first E&S product that MRSI launched out of the gate was general liability, but it wasn’t long before the team learned that the GL market “wasn’t as hard as expected,” Beggs says. In light of that, MRSI decided to expedite the rollout of an E&S property line of business, which was originally planned for a few years down the road. “We pivoted very quickly to enter the property market,” Beggs says. “We made
“We have the benefit of being fairly new, so we don’t have the legacy issues that our competitors are struggling with, and we can come in and fill some of those gaps with a full view of what’s happening in the marketplace” holistically and bringing all the capabilities that we have to bear together. We’re working with them strategically at the top level and bringing not just MRSI capabilities to the table, but all of Munich Re’s capabilities – whatever is needed in a particular instance for a certain broker. That’s played well for us so far.”
that decision in 2019, hired a team, and they were able to launch the product in about two and a half months at the beginning of 2020. The E&S market is constantly shifting and constantly changing, so those types of pivots are expected. Property now makes up about half of our book of business.” In July 2020, MRSI made a move that
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PROFILE Name: Jill Beggs Title: President of E&S lines Company: Munich Re Specialty Insurance Based in: New York City Years in the industry: 29
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PEOPLE
INDUSTRY ICON
perhaps raised some eyebrows in the marketplace, given the context of the COVID-19 pandemic. The group launched an E&S healthcare liability product that caters to senior living facilities at a time when many markets were pulling out of that space due to the pandemic. MRSI launched the product with a communicable disease exclusion and has managed to grow the portfolio quickly because of the market disruption in the senior living space.
third E&S financial lines product, alongside lawyers’ professional liability and miscellaneous professional liability. Like all of MRSI’s E&S products, the management liability solution was designed to fill a gap and meet a capacity demand for creative solutions in D&O for the private and nonprofit sectors. In recent years, Beggs says, insurers have been reducing their participation in the management liability space due to historically inadequate pricing and deteri-
“Our idea is to continue to launch products where we see a market demand that fits our appetite and where we think we can achieve risk-adequate pricing” “We’re seeing that in a lot of different segments,” Beggs says. “There’s a bit of market dislocation, whether it’s a lack of capacity or companies cutting back or pulling out due to social inflation impacts or the pandemic. There’s also increased frequency and severity of nat cat losses, which are pushing claim costs higher, and the costs of labor and materials on the property side are also higher. So there are profitability issues out in the marketplace, which carriers are reacting to in various ways. “At MRSI, we have the benefit of being fairly new, so we don’t have the legacy issues that our competitors are struggling with, and we can come in and fill some of those gaps with a full view of what’s happening in the marketplace.”
What’s next? One of the latest E&S products launched by MRSI is a management liability solution for private companies and nonprofit organizations. It debuted in August 2021 as MRSI’s
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orating loss ratios caused by social inflation, M&A, technology and cyber risk, among other things. “We now have 10 products out in the marketplace, covering property, GL, excess casualty, professional liability lines and healthcare,” Beggs says, adding that MRSI’s next target is the surety space. “We have hired a leader who is building out our capabilities in surety, and we will launch a product within the next several quarters,” she says. “Surety is a historically profitable line of business. There have been recent losses in the surety space, and we believe there’s going to be an increased infrastructure spend, so we think the market is advantageous for another carrier at this point. “Our idea is to continue to launch products where we see a market demand that fits our appetite and where we think we can achieve risk-adequate pricing. We’re definitely in growth mode, but we are very much focused on the bottom line.”
FAST FACTS: MUNICH RE SPECIALTY INSURANCE E&S LINES
DATE FOUNDED January 2019
TEAM MEMBERS 35
OFFERINGS General liability, property, excess casualty, healthcare and professional liability
NUMBER OF PRODUCTS LAUNCHED 10
GROSS WRITTEN PREMIUM More than $200 million (as of August 2021)
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SPECIAL REPORT
IBA spotlights 69 promising young professionals who are helping to transform the US insurance industry
CONTENTS
PAGE
Feature article .............................................. 20 Methodology ................................................ 21 Rising Stars 2021 ......................................... 24 Profiles .......................................................... 25
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SPECIAL REPORT
RISING STARS 2021
THE FUTURE IS BRIGHT WHO SAYS insurance isn’t a young person’s career? While it’s true that many millennials and Gen Zers tend to discount the idea of working in insurance, the industry offers many things that idealistic young professionals seek. It’s a service-oriented career that offers endless opportunities for specialization, while also providing plenty of job security and a healthy work-life balance. And around half of the insurance workforce is expected to retire by 2028, according to the Bureau of Labor Statistics and AARP, which will open up many opportunities for advancement in the near future. Among those taking up the reins of power are likely
to be the 69 members of this year’s Rising Stars list – industrious individuals who have gone the extra mile to distinguish themselves among their contemporaries.
Finding insurance “Most of my peers, we share the same view and passion for wanting to bring creativity to insurance,” says Mike Mueller, a Denverbased senior vice president at Risk Placement Services (RPS). Mueller grew up in an insurance family and started helping out around the office at age 13; by 15, he was checking policies and binding, and at 18, he had his customer
THE 2021 RISING STARS BY GENDER
55% 45%
Female
20
Male
“Most of my peers, we share the same view and passion for wanting to bring creativity to insurance” Mike Mueller, Risk Placement Services service representative (CSR) license. He went on to major in risk management and insurance at Florida State University. “I moved to San Francisco after college,” Mueller says. “I was completely by myself. I had $500 to my name and two suitcases and said, ‘If this doesn’t work, I’ll go back home.’” Things did work out, and Mueller eventually ended up at RPS, where he’ll celebrate his 10-year anniversary in 2022. Specializing in property and builder’s risk coverage, Mueller has acquired a passion for construction. “I always thought it was cool,” he says. “We’re looking at artists’ renderings, budgets and timelines. Then the next thing you know, the project is under construction. And two years later, there’s this gorgeous building you can drive by and say,
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‘I was involved in the insurance.’” Like Mueller, fellow Rising Star Nathan Shoemake grew up around insurance and studied economics in college. But he didn’t think about pursuing a career in analytics until he was being considered for a role at AssuredPartners. He’s now the director of risk analytics at AssuredPartners’ national real estate practice. “We provide risk analytics that often reveal new program strategies, as well as the evidence-based data needed to negotiate property values and provide the pricing, terms or deductibles we are seeking,” Shoemake says. “With my team crunching the numbers, we free up service teams to provide timely and impactful results.”
something that interests and impassions me, so it was natural for me to move into the risk management role.”
Thriving in tough times The COVID-19 pandemic gave Jozsi an opportunity to shine. She has spent the past year and a half creating tool kits, presentations and training guides for her clients, helping them significantly reduce workplace injuries and reported claims. During the same time, she also tripled the size of her department. “We insure a lot of long-term care facilities,” she says. “We not only had to keep up with the influx of claims in the summer of last year, but we were in a position where
“Telling me I can’t accomplish something is a surefire way to make me try my hardest to accomplish my goal” Marianne Jozsi, Worthy Insurance
Another 2021 Rising Star who likes to find creative solutions to complex problems is Marianne Jozsi, vice president of risk management at Worthy Insurance. She began her career in the theme park industry, working for Six Flags Great America. After 10 years, she had worked her way up to a supervisor role but decided it was no longer a good fit for her. Seeing an ad for a job at Worthy, Jozsi realized that insurance was something she could do. “I was interested in risk management because so much of the loss control portion of risk management ties into building positive safety cultures within institutions,” she says. “Culture building has always been
we’ve been working to make sure we’re as updated on changing guidelines as possible.” This includes constantly staying ahead of laws and CDC guidelines, as well as leveraging an unexpected skill: public relations. At the start of the pandemic, Jozsi realized the media would eventually be reporting sensationalized stories on some of her clients’ facilities, so she pre-emptively engaged PR agencies to help tell positive stories about their organizations. Mueller also distinguished himself during the pandemic by growing his book of business by almost 300% to more than $40 million in premium. He did so in part by making the most of online videoconfer-
METHODOLOGY Starting in June, IBA invited insurance professionals across the country to nominate their most exceptional young talent for the annual Rising Stars list. Nominees had to be age 35 or under (as of June 1, 2021) and be committed to a career in insurance with a clear passion for the industry. In order to maintain a focus on new talent, only nominees who hadn’t been previously recognized as an IBA Rising Star (or Young Gun) were considered. Nominees were asked about their current role, key achievements, career goals and the contributions they’ve made to shaping the industry. Recommendations from managers and senior industry professionals were also taken into account. The final list of 69 Rising Stars was determined by an independent panel of industry leaders: • Deborah S. Morris, Verisk • Owie Lei Agbontaen, Sompo Global Risk Solutions • Rodney Johnson, Gallagher • Tiara Morris, State Auto • Veronica Kuyoth, Nationwide E&S/Specialty
8th Year of IBA’s Rising Stars list (formerly Young Guns)
31 Average age of this year’s Rising Stars
39% Percentage of Rising Stars at the VP level
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SPECIAL REPORT
RISING STARS 2021
Secrets to success
wTHE 2021 RISING STARS BY LOCATION 1
1
1
7
4
1 1
4
1
11 6
3
1 1
1
2 2
1
2 1
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International
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“Although we can, we don’t just create pretty charts and graphs for our clients. All our work has a purpose” Nathan Shoemake, AssuredPartners
encing and mailing his clients care packages. “Another thing that really happened for my book was the market hardened for the direct marketplace, and we found more and more insurance coming into the excess & surplus industry,” Mueller says. “And they weren’t able to get coverage from people like Travelers, Liberty Mutual or Hartford. So, our expertise in the E&S space really paid dividends because a lot of these accounts weren’t getting renewal, and we were able to provide a solution and bring them into the marketplace.”
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Jozsi attributes her ongoing success to the fact that she’s “always been a driven person. I like to work hard and see resulting successes. I realized very early on that mistakes and setbacks are learning experiences. Challenges often just make me want to work harder because in my head I’m imagining someone telling me I can’t accomplish something. Telling me I can’t accomplish something is a surefire way to make me try my hardest to accomplish my goal.” For Shoemake, success hinges on two things: taking responsibility and living up to his team motto to “always be helpful.” Within his analytics team, he says, it’s less about metrics and more about asking the important questions: Were his analytics good enough to get AssuredPartners hired? Were they able to help the underwriter provide competitive terms? Could they help resolve a client’s issues? Could they help lower estimated property values? “The more we can answer yes to these types of questions, the more effective we are,” he says. “Although we can, we don’t just create pretty charts and graphs for our clients. All our work has a purpose.” And when it comes to the future of analytics in insurance, Shoemake takes a holistic outlook. “[Technology] has changed client expectations and has allowed us to do more to meet and exceed those expectations, not the least of which by providing some amazing data,” he says. “However, people are still important. We often say what we do is part art and part science. One must understand what to do with the data and how to present the data in a compelling way so that it helps the client make adjustments to improve their business risk profile or influences an underwriter to provide what we are seeking. I helped build our resources from ground up, so I understand in order to have best-in-class actuarial capabilities, we need to stay apprised of the latest technology available.”
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IBA20
BUILDING THE FEMALE INSURANCE LEADERS OF TOMORROW Women in the insurance industry have been breaking down barriers and challenging the status quo for over a century. From Julia Babbitt in 1875 to the leaders of today, female insurance professionals have long been champions of equity. It’s important to celebrate the legacies of the women who have led the way so far, and to empower and inspire the women who will lead tomorrow. Join us at Women in Insurance for an event dedicated to celebrating and supporting female insurance professionals. This year’s summits in Texas and California are an incredible opportunity to gain new skills and strategies, discuss topics like gender equality in the industry, and engage with a network of your peers who are dedicated to career growth. Join us at:
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FOR SPEAKING OPPORTUNITIES:
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Global Head of Insurance
Global Conference Production Manager
T: +1 720 650 4488 ext. 9414 E: cathy.masek@keymedia.com
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LEARN MORE
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SPECIAL REPORT
RISING STARS 2021
Ben Hickey Vice President of Commercial Risk Brush Creek Partners Website: brushkc.com Jake Filak Managing Director Euclid Transactional Phone: 973-919-3412 Email: jfilak@euclidtransactional.com Website: euclidtransactional.com Kyle Crosley Strategic Benefit Consultant Alera Group
Prabal Lakhanpal Vice President Spring Consulting Group
Phone: 415-694-8753 Email: mike_mueller@rpsins.com Website: rpsins.com
Phone: 857-239-1250 Email: prabal.lakhanpal@springgroup.com Website: springgroup.com
Pamela Flowers Assistant Vice President, Workers’ Compensation Atlas General Insurance Services, an RPS Company
Taylour Donovan Vice President – Executive Assurance Arch Insurance
Phone: 800-952-1494 Email: pamela_flowers@rpsins.com Website: atlas.us.com
Phone: 214-438-4052 Email: tdonovan@archinsurance.com Website: insurance.archgroup.com
Phil Richardson Field Executive Senior Producer Insurance Agency Field Insurance Agency of Surfside
Waika Embry Vice President – Excess & Surplus Lines Property Arch Insurance
Phone: 855-238-2411 Email: phil@fieldinsuranceagency.com Website: fieldinsuranceagency.com
Phone: 404-617-9590 Email: wembry@archinsurance.com Website: insurance.archgroup.com
Briana Wolff Director of Business Intelligence The Hartford
Erin Dullard Vice President – Senior Client Manager Swiss Re
Brittney Stinnett Risk Advisor Peel & Holland
Fabiola San Miguel Commercial Marketing Manager JAG Insurance Group
Cameron Lock Senior Account Manager ABD Insurance and Financial Services
Gina Dean Vice President, Casualty Treaty Underwriter Munich Reinsurance America
Christopher Goodman Producer Goodman Insurance
Ian Keith Vice President Keith Insurance
Courtney Cassidy AVP, Senior Account Manager CAC Specialty
Ilir Dinovic VP, Senior Casualty Treaty Underwriter SCOR
Andy Flowers Vice President Starke Agency
Dan DiLella Managing Partner Hotaling Insurance Services
Jacob Kiley Producer/VP The Liberty Company Insurance Brokers
Annika Roney Vice President Rokstone Construction Risk Underwriters
Dave Rock Associate Nicolaides Fink Thorpe Michaelides Sullivan
Jason Levine Director of Underwriting, Large Accounts Division Irwin Siegel Agency
Ashlae Cook Commercial Risk Account Manager Ollis/Akers/Arney Insurance & Business Advisors
Davis Howley Program Underwriter NSM Insurance Group
Jessica Scelzi Chief Commercial Officer The Zebra
Barrett Charpia Producer Insurance Office of America
Ebens Jean President One Way Insurance Group
Jillian Raines Partner Cohen Ziffer Frenchman & McKenna
Bob Slauson Field Consultant True Benefit, an Amwins Company
Emily Steinberg Associate Nicolaides Fink Thorpe Michaelides Sullivan
Jim Kilgallen Senior Program Underwriter NSM Insurance Group
Phone: 607-423-6182 Email: kcrosley@aleragroup.com Website: aleragroup.com Aaron Pfister Associate Managing Director and Commercial Underwriter Burns & Wilcox Abigail Caldwell Vice President, Health Actuary Amwins Group Albert Reed Senior Underwriter Burns & Wilcox Alexandra Jennings Vice President EPIC Insurance Brokers Amanda Carver Assistant Vice President, GB Specialty Gallagher Bassett
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Mike Mueller Senior Vice President Risk Placement Services
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Personal & Commercial Insurance Since 1968
Ketan Nayak Principal Product Manager Coalition Kip Olvaney Senior Risk Analyst Beecher Carlson Krista Scott Senior P&C Middle-Market Underwriter The Hartford Kyle McClellan Risk Advisor NSM Insurance Brokers, a division of NSM Insurance Group
Mira Andreeva Director, Middle and Large Commercial Sales and Distribution The Hartford Morgan Cook Assistant Vice President, Property Broker Beecher Carlson Morgan Ramey McHugh Senior Account Executive AssuredPartners Nate Mathis Chief Operating Officer Amwins Group
Sam Liggett Agency Sales Executive AssuredPartners Sam Odishoo Vice President, Employee Benefits USI Insurance Services Samuel Tashima Director and Actuary Aon Sean Gremillion Vice President, Underwriting Resilience Cyber Insurance Solutions Shay Eskridge Field Construction Underwriter Liberty Mutual Insurance
Larry Phillips Assistant Vice President of Culture and Inclusion Gallagher
Nathan Shoemake Senior Advisor of Impact Analytics AssuredPartners
Laura Malloy Director, Underwriting RLI
Navarone Dozier Client Manager Palmer & Cay
Lauren Glass Senior Underwriter Burns & Wilcox
Patrick Cagney Broker/Vice President RT Specialty
Veronica O’Connor Client Services Manager AssuredPartners
Mandeep Brar Vice President Marsh
Phillip Rehg Assistant Vice President, Private Client Services HUB International Northeast
Victoria Landry Producer and Advertising InsureWise
Marianne Jozsi Vice President, Risk Management Worthy Insurance
Ranjini Vaidyanathan Senior Manager, Data Science CCC Intelligent Solutions
Will Wilson Jr. Partner McNeal, Sports & Wilson Risk Advisers
Meghan Brady Vice President, Employee Benefits HUB International Northeast
Rebecca Ferguson Account Manager Beecher Carlson
Zach Bowling Senior Vice President Amwins Brokerage of the Midwest
Steven Giustino Business Development Leader Program Brokerage Corporation
P
PHIL RICHARDSON Executive Senior Producer
Field Insurance Agency of Surfside
hil Richardson began his career in the insurance industry in 2011 and has never looked back. Richardson’s understanding of the importance of hard work, accountability and availability to his clients has made his career a major success. “Customer service in our industry is of the utmost importance, and it’s something we take very seriously and excel at,” he says. In his 10 years in the business, Richardson has become a leader in the personal lines insurance space in South Carolina. With clients ranging from condominium owners to multimillion-dollar estate holders, Richardson works alongside a robust team of insurance professionals specializing in the coastal P&C marketplace. “I’ve got a great team around me, assisting with day-to-day activities, making sure that we work efficiently and put our clients first,” he says. Over his career, Richardson has produced sales volumes that many seasoned producers never achieve. Despite the challenges COVID-19 presented, he was able to navigate the nuances and deliver a career-best year in 2020, exceeding $2.7 million in new premiums placed. “The past year has certainly been different, but many of my clients have adapted well,” he says. “The efficiency of doing business is now better than ever before. Today’s outstanding technology has certainly helped my associates and me produce at record levels.”
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SPECIAL REPORT
RISING STARS 2021
W
WAIKA EMBRY
Vice President – Excess & Surplus Lines Property Arch Insurance
aika Embry sees herself as a solutions provider who always keeps speed of service top of mind. “My philosophy is to approach clients as a solutions provider,” says Embry, vice president of excess & surplus property underwriting with Arch Insurance, adding that “there is a lot of volume in what we do, and speed of service is crucial.” Having started with Arch Insurance in 2013, Embry is responsible for underwriting on behalf of both Arch Excess & Surplus Property and Ventus Risk Management and serves as a team leader for the E&S property team. Prior to joining Arch, she was an E&S property underwriter at Diamond State Group. Based in Atlanta, Embry has a bachelor’s degree in risk management and insurance from the University of Georgia and holds CPCU and ARM designations. Embry credits thorough communication with clients for her success in the industry. “Making sure we have an open, continuous conversation about what we can do to find more success together,” she says, adding that working with a strong team at Arch has been critical as well. “It’s definitely a team effort. Without them, I wouldn’t be able to provide this level of service.”
“A
TAYLOUR DONOVAN Vice President – Executive Assurance Arch Insurance
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s my brokers know, I greatly value their partnership and mutual willingness to provide strong solutions to clients,” says Taylour Donovan of Arch Insurance. “Being a solution provider is one of Arch’s core philosophies, which is something our trading partners value. I personally like to establish a strong relationship by getting to know my brokers on a more personal basis, so it is an enjoyable experience.” Donovan is vice president of Executive Assurance at Arch, a position she has held since March 2021. She is responsible for overseeing the South-Central region and underwriting for both the Large Commercial Group and the Growth & Middle Market Group. Donovan is also the energy industry subject-matter expert for Executive Assurance, where she previously served as assistant vice president. Since joining Arch in 2010, Donovan has embodied an entrepreneurial spirit that has led to strong growth in two different territories: the Chicago Midwest region and the South-Central region. She has a bachelor’s degree in finance and insurance from Illinois State University and holds the RPLU designation. “At Arch, we take a bottom-line approach to our underwriting, which has been successful over the years,” she says. “While we are always looking to strategically grow at the end of the day, bottomline strength is what matters the most.”
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JAKE FILAK
PRABAL LAKHANPAL
Managing Director
Vice President
Euclid Transactional
Spring Consulting Group
“I
believe it’s important to personalize my work based on the client, depending on their needs, urgency and unique challenges of their risk,” says Jake Filak. “Euclid Transactional is consistent in our approach firm-wide – we aim to provide the same efficient and thoughtful service across the underwriting and claims side of the business, which is a testament to the work ethic and dedication of the full team.” As a managing director at Euclid Transactional in New York City, Filak underwrites representations & warranties and other transactional liability insurance policies. He started with Euclid as a vice president in 2017 and worked his way up to senior vice president in 2020. Prior to joining the team, Filak worked as an attorney at Lowenstein Sandler, where he focused on mergers and acquisitions and general corporate counseling. He holds a JD from Northwestern University School of Law. Filak points out that Euclid Transactional is known for its experience: The firm boasts more than 350 collective years of experience supporting deals, and its team members are based across five global offices. “Clients work with Euclid Transactional because of our complex understanding of this business, deep bench of experienced talent and flexible approach to how we do things,” Filak says.
“O
ne of the things a mentor told me very early on in my career was to follow up and follow through, which was effectively to say that there are a lot of professionals out there – the only way to distinguish yourself is to follow up and make sure you deliver on your promises,” says Prabal Lakhanpal, vice president at Spring Consulting Group. And he has. With Spring since 2015, Lakhanpal now leads many of the firm’s most advanced client projects, with a focus on employee benefits, captive insurance and alternative risk funding. He also drives the strategic and innovative thinking processes and serves as the project lead for some of the country’s largest employers. In 2019, he won the Emerging Talent Award for Service Professionals from Captive Review, was the 2020 winner of Employee Benefit Adviser’s Rising Star Award and was recognized with a Breakout Award from Business Insurance. Lakhanpal has found success by being “extremely clientcentric,” he says. “My philosophy, and Spring’s general philosophy, has always been that it’s not about trying to sell a product; it’s about trying to build a solution for clients. Being able to view a challenge from a 30,000-foot level, but then also have the knowledge to go down into the minutiae, is one of the things that I have been able to do well for clients.”
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SPECIAL REPORT
RISING STARS 2021
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MIKE MUELLER Senior Vice President
Risk Placement Services
ike Mueller’s approach to clients is simple: “I treat them the way I would like to be treated,” says Mueller, a senior vice president at Risk Placement Services (RPS). “I listen to their concerns carefully and then offer various risk retention options to resolve their needs. If I could speak directly to our clients, I would tell them that we care deeply about their issues and we value their business.” Based in the RPS branch office in Denver, Mueller focuses on property and builder’s risk coverage for clients nationwide. He currently manages a book of more than $40 million in premium and has extensive expertise in placing complex layered programs and creating bespoke solutions for hard-to-place assets on behalf of clients in the real estate, hospitality, manufacturing and construction sectors. Mueller joined RPS in 2012 as an associate broker; by 2016, he had advanced to assistant vice president before building his book and achieving promotion to senior vice president. He is a member of the RPS Bar Club, a distinction for top producers within the organization who have achieved a book size of more than $1 million. “We achieve profitable growth by targeting opportunities that we know fit within our carriers’ appetite,” Mueller says. “We maintain key relationships with these carriers and believe this relationship allows us to achieve the best results.”
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PAMELA FLOWERS
Assistant Vice President, Workers’ Compensation Atlas General Insurance Services, an RPS Company
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ince joining Atlas General Insurance Services 12 years ago, Pamela Flowers has quickly risen through the ranks, going from receptionist to senior underwriter by 2012. As Atlas’ highest revenue-producing underwriter, Flowers was promoted to assistant vice president this year. “My personal success is attributable to my determination to fit the needs of our clients, my drive to always improve, our competitive carrier partners and a great support staff,” she says. Flowers is also the program manager for Atlas’ exclusive parcel program, responsible for training, developing and implementing procedures for writing business in California and all other states. She monitors the program portfolio and communicates with exclusive agents to improve knowledge, growth and productivity standards. She currently manages a book of over $25 million in premium and has grown out-of-state premium by more than $15 million. Flowers is quick to point out that her own success is due in part to the success of the team around her. “Atlas has grown so much in its 12 years in business, and I am proud to say I was one of the first several employees,” she says. “Our company is a family, and we work together, so my success is personal, but my team truly goes above and beyond.”
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BEN HICKEY
Vice President of Commercial Risk Brush Creek Partners
KYLE CROSLEY Strategic Benefit Consultant
A
ccording to one wholesale partner, Ben Hickey is “hands down the most responsive broker I have ever worked with. Not only that, he always answers his phone. You have no idea how rare and key this is.” As vice president of commercial risk at Brush Creek Partners, Hickey works with his team to provide strategic planning and risk mitigation techniques to help insureds. He is frequently involved in groundbreaking projects throughout Kansas City and has pioneered several insurtech solutions within Brush Creek that have helped optimize procedures for the agency and its clients. His optimistic attitude and positive approach constantly promote a culture of inclusivity and teamwork in the office, which has helped Brush Creek Partners be recognized as one of the top places to work in Kansas City for two years in a row. He values building and continuing relationships and believes that’s been key to his continued success. Hickey says there are three differentiators that ensure Brush Creek stands out: being leaders in cyber and technology risk management expertise; partnering with clients to provide value beyond placing a policy; and building a culture of openness, adaptability and collaboration. “We service clients to the best of our team’s ability,” he says. “We strive to train well and promote from within, entrusting our team to do what’s right and exceed expectations.”
Alera Group
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s a strategic benefit consultant at Alera Group (Relph Benefit Advisors), Kyle Crosley partners with C-suite executives to establish strategic and innovative solutions that help manage healthcare spend, improve employee recruitment and retention, and positively impact business results. “When I meet with clients and prospects for the first time, I try to focus the conversation on their overall business goals, visions for the future, and emphasize long-term strategies for sustainability,” he says. Over the past 12 months, Crosley has led his firm in appointment activity and sales results within the production team, and he currently ranks in the top 6% nationwide in sales results. Most recently, he has taken on a lead role in growing Health4Edu, Alera’s higher education vertical. Crosley credits partnering with centers of influence (COIs) as a major factor in his success. “Professionally, there are few things more rewarding than creating a new relationship at one of our local businesses, earning trust and seeing the positive impact Alera can have on their business,” he says. “I love helping companies establish, implement, and execute on strategic plans to meet and exceed their business goals, and knowing that my COI partners and team had a big part in a client’s success is truly rewarding.”
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FEATURES
SECTOR FOCUS: MEDICAL PROFESSIONAL LIABILITY
The prognosis for medical professional liability COVID-19 brought sudden changes to the healthcare space, forcing brokers and insurers that supply the industry with professional liability coverage to adapt quickly
THESE DAYS, with COVID-19 still running rampant, exposures in the medical professional liability space are great, and settlement verdicts are unpredictable. But even before the pandemic hit, medical professional liability was experiencing challenging market conditions. “It has not been an easy line of coverage for years,” says Tim Mooney, a senior vice president with The Liberty Company Insurance Brokers. “Three or four years ago, we started seeing a capacity crunch on access, and getting higher limits for, particularly, hospitals and large senior living facilities could be very challenging.” To make the best use of available insurance, he says, companies have been taking on higher retentions and considering captive funding positions. Paula Sullivan, senior vice president at Marsh McLennan, echoes Mooney’s sentiments. “It’s a very volatile, difficult marketplace as a result of the industry’s lack of profitability over the last seven years,” she says. “The industry as a whole is running in excess of 100% and has been for over seven years. And this is coming out of a prolonged soft market.”
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The long-tail nature of medical professional liability compounds market challenges, Sullivan adds. “You don’t know what your losses are for several years out. That’s just the nature of the business. If you think about auto liability, for example, you know immediately if you have an auto loss – maybe
facilities, and this led to capacity problems. On top of that, leading players, including CNA and Zurich, exited the space, impacting the long-term dynamics of the sector. Over the past 18 to 24 months, Sullivan says, there’s been a rapid hardening of the market. Coverage went from first dollar to
“It has not been an easy line of coverage for years. Three or four years ago, we started seeing a capacity crunch” Tim Mooney, The Liberty Company Insurance Brokers there’s a slight lag in reporting or closing a claim, but it’s not like medical professional liability, where you don’t know until later the extent of the injury.”
COVID craziness When COVID-19 hit in February 2020, it increased the difficulties in the medical professional liability space. The hardest-hit organizations were long-term care facilities, followed by hospitals and assisted living
deductible, large retentions got larger, and limits shrank. Mooney says he’s seen retentions going from $1 million to $2 million per claim with limits cut from $20 million down to $10 million – all while insureds are paying three times more. Gisela Plazas, CEO of Presidio Insurance Solutions, says COVID-19 has introduced several unknowns into the healthcare industry, from managing the overnight adoption of telemedicine to the uncertainty
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AN INDUSTRY UNDER PRESSURE
542,000
Number of healthcare workers who left the industry between February 2020 and March 2021
54,100–139,000
Projected shortage of physicians in the US by 2033
50%
Increase in the average cost of a medical professional liability claim since 2009
5–15%
Projected rate increase for new and renewal medical professional liability policies in 2021 Source: Sapiens
coverage terms and conditions related to COVID,” Mooney says. “If it all plays out in a reasonable manner, I don’t see the market restricting further. But if there are judgments made against these nursing homes that end up bankrupting them and their insurance along the way, that will definitely have an impact.” Then there’s the impact of backlogs for of COVID liability exposures and the staff shortages resulting from COVID’s impact on the employee pool. “It is unclear how COVID-19 will ultimately impact the risk landscape,” she says. “Each state seems to be attempting to address immunity to liability, but much remains to be decided. It is clear the healthcare sector faces the same unknowns as most other industries are facing relative to employment liabilityrelated COVID-19 lawsuit exposures.” Mooney agrees that the impact of COVID-19 on the healthcare sector is “yet to be written as far as the claims experience.” For example, he says, the claims of long-term
“It is unclear how COVID-19 will ultimately impact the risk landscape. Each state seems to be attempting to address immunity to liability, but much remains to be decided” Gisela Plazas, Presidio Insurance Solutions nursing facilities have not been settled and won’t be for a year or two. “The courts are up in the air on their decisions on where they stand as far as carriers’
both the courts and the healthcare industry. Plazas notes that “2020 collectively was a low claims year for our clients. In theory, this is due to a backlog within the legal system
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FEATURES
SECTOR FOCUS: MEDICAL PROFESSIONAL LIABILITY
Looking forward In addition to COVID, Mooney, who’s based in Northern California, is monitoring another legal trend: limits and tort reform. If the state’s current limit of $250,000 per death case in a nursing home were to be retracted, for example, it could lead to higher jury verdicts and greater attorney interest. “The best thing about California is its limits and tort reform,” he says. “If that takes a step back in a major way, that will impact the pricing for carriers significantly.” Plazas notes that the recent trend over the last few years of increased average severity per claim has impacted the pricing for medical malpractice insurance across most US states and for nearly every specialty. As a result, many of her healthcare clients are experiencing higher insurance rates for 2021. And on the carrier side of the equation, she says, competition has dried up, and underwriters are applying more conservative
MEDICAL MALPRACTICE BY THE NUMBERS
41% of people claim they’ve been victims of medical malpractice
250,000 deaths are attributable to medical errors annually
78% of all medical malpractice claims don’t result in payment
99% of physicians will face a lawsuit by the age of 65
25% of physicians say they’ve lost faith in their patients because of medical malpractice lawsuits Source: The High Court
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“I think the bright light is that there has been a lot of new capacity entering the market in the last six months” Paula Sullivan, Marsh McLennan prompted by COVID closures. We anticipate the bottleneck easing by 2022 and resulting in a dramatic increase in both claims expense and indemnity payments.” On the healthcare side, Sullivan notes that “a lot of our hospitals had significant financial losses last year when they had to close for months at a time. So, they’re back up and dealing with a backlog of patients who hadn’t seen their providers, and now they’re dealing with this pandemic again. “A lot of carriers are starting to underwrite COVID,” she adds. “Some are putting on communicable disease exclusions. So, what that means is any claim activity arising out of the pandemic would not be covered from a PL standpoint, and that’s really concerning.”
underwriting guidelines. Plazas adds that medical professional liability insurers “seem to have slowed down in terms of M&A activity, and the focus appears to be on taking a hard look at the risk exposures with an eye to underwrite to a 70% to 90% loss ratio.” Despite the current challenges, Sullivan sees cause for optimism in the market. “I think the bright light is that there has been a lot of new capacity entering the market in the last six months,” she says. “We have Bowhead, Vantage and CapSpecialty in particular who have entered the space, and they’re being pretty aggressive, and a lot of those will write multiple product lines within the healthcare sector.”
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SPECIAL REPORT
BROKERAGES 2021
IBA reached out to insureds to discover which brokerages are setting the standard for service, responsiveness, knowledge, pricing and more
CONTENTS
PAGE
Feature article............................................................ 34 Methodology ............................................................. 35 5-Star Brokerages 2021............................................ 38 Profile.......................................................................... 39
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SPECIAL REPORT
5-STAR BROKERAGES
THE VALUE OF EXPERTISE BRIDGING THE gap between the client and the carrier, insurance brokerages are an important cog that keeps the industry running smoothly. And even amid hard times and hardening markets, many brokerages have been able to distinguish themselves by going the extra mile for their clients. To uncover these standout brokerages, IBA surveyed hundreds of clients on what they look for in a brokerage and how their own brokerages rated in six different categories. Overwhelmingly, the most important factor for insureds when choosing
a brokerage is customer service. For Jeff Arnold, CEO of 5-Star Brokerage RightSure Insurance Group, that all comes down to the customer journey. Whether they’re communicating with clients via phone, web chat, email or text, Arnold says, RightSure employees do what they can to maintain a customer-centric focus and deliver a topnotch experience. “We like to say that the experience you have with us will be such an exceptional, unmatched experience that you’ll not only buy from us, you’ll tell your friends, too,” he says.
“Our people are the greatest and most highly educated group of insurance geeks you’ll ever meet” Jeff Arnold, RightSure Insurance Group
WHAT ARE INSUREDS LOOKING FOR IN A BROKERAGE? Customer service
98% Product knowledge
97% Getting the best possible coverage for their requirements
97% Speed in fulfilling requirements
95% Ability to get the best deal/pricing
95% An understanding of their business
95%
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Cheri Amaro, COO of another 5-Star Brokerage, The Liberty Company Insurance Brokers, agrees that communication is paramount. “We have an environment where there will always be growth opportunities on new products and coverage in the marketplace to remain at the forefront of industry developments, and we pass this knowledge on to our clients,” she says. “We also encourage calling clients over emailing as the main form of communication to better understand their needs and forge deeper relationships.” Robert Holmes, president of 5-Star Brokerage Spectrum Weather and Specialty Insurance, says his company’s goal is “to make the process of acquiring a weather insurance policy as easy as possible for our clients, while making sure that all questions are answered and any concerns are addressed.”
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Of course, a big part of customer service is responsiveness – 95% of clients said speed in fulfilling requirements is an important quality in an insurance brokerage. Amaro says Liberty “strives to return all client inquiries the same business day or within 24 hours if it’s the end of the business day.” However, Arnold admits that turning quotes around quickly can be a challenge in an industry known for being monolithic and slow. “If you don’t have your foot fully on the gas and speed integrated into every part of your process, your customers will leave,” he says. “Consumers literally believe that there’s an ‘easy button’ when they call an agency, and you just push a button and get a quote.” In reality, brokers are often at the mercy of wholesalers and MGAs in obtaining, revising and issuing quotes – but this is where good relationships come into play.
insurance is basically selling complex legal contracts, so RightSure invests significantly in continuing education to make sure its brokers understand what they’re selling. “There’s the old saying – the CFO said to the CEO, ‘Hey, what if we keep spending all this money on training these people and they leave?’ And the CEO says, ‘What if we don’t train them and they stay?’” Liberty likewise provides many opportunities to educate staff on new products, policy forms and coverage, from webinars hosted by industry specialists to examining actual claims scenarios to better understand client exposures. At Spectrum, Holmes says, “product knowledge is essential to matching the needs of the insured with the best coverage option – or options – to meet those needs. We are proud of the variety of options we have available for our clients – a full quiver of arrows,
“In order to properly advise our clients, we spend time and energy to truly understand our clients’ business goals and assets” Cheri Amaro, The Liberty Company Insurance Brokers
“It is our relationships with these entities that allows us to benefit from a degree of expediency, especially at times when the deadline to bind coverage is near,” Arnold says.
In the know Product knowledge is another critical factor for insureds when selecting a brokerage – 97% told IBA it’s either important or very important. “Our people are the greatest and most highly educated group of insurance geeks you’ll ever meet,” Arnold says, adding that
if you will – and understanding the nuances of each of those products can both provide the optimal coverage and, at the same time, reduce premium.” In addition to educating themselves on products, brokers must take the time to learn as much as they can about their clients’ businesses. As the president of a weather insurance brokerage, Holmes says he has acquired education in everything from snow management to fair management so he can stay one step ahead of his clients. “Understanding our clients’ business has
METHODOLOGY To uncover the best brokerages across the country, Insurance Business America surveyed hundreds of businesses, asking them to rate the service they’ve received from their brokerages over the last 12 months. Clients were asked to rate their brokerage’s performance in six categories: • customer service • speed of fulfilling requirements • product knowledge • ability to get the best deal/pricing • ability to get the best possible coverage for their requirements • an understanding of their business Clients were also asked to rate the importance of each category when choosing a brokerage. The end result is a list of 39 5-Star Brokerages that are recognized based not on revenue, but rather the service provided to their clients.
90% of clients said product knowledge is very important when choosing a brokerage
86% of clients said customer service is very important
70% said the ability to get the best pricing is very important
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SPECIAL REPORT
5-STAR BROKERAGES
WHAT ELSE DO INSUREDS VALUE IN A BROKERAGE? “Being friendly and caring” “Going out of their way to provide consults and industry knowledge” “Leveraging relationships with the market and relationships with companies of the same product and size” “Positive energy and attitude” “Relationships and strategic planning” “Specializing in a particular coverage”
“Relationships with our insurance partners allow us a certain degree of freedom that our clients find beneficial. It goes well beyond a simple pricing advantage” Robert Holmes, Spectrum Weather and Specialty Insurance
been a key to our success,” he says. Amaro agrees. “In order to properly advise our clients, we spend time and energy to truly understand our clients’ business goals and assets,” she says. “We do a comprehensive review of all new clients’ business operations that involves completing a detailed questionnaire and on-site visits when needed or requested.” If brokers don’t take the time to fully understand what their clients are up to, Arnold says, the results could be disastrous. For example, what if your client is a medical
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device company and you provide them with coverage for their shipments, but you don’t realize they’re importing the products from China – so they’re out of luck until their shipments reach the US? “You’ve got to roll up your sleeves, do a deep dive, suspend your stereotypes and ask probing questions,” he says. That combination of thorough product knowledge and understanding of a client’s business goes a long way toward helping insureds secure the best possible coverage for their requirements – something that
97% of clients told IBA is important when working with a brokerage. “Offering specific and appropriate coverage to meet our clients’ evolving requirements and protect them against exposure is of utmost importance,” Amaro says. “To provide this for our clients, we are appointed with numerous carriers with a wide range of coverage forms.” Arnold underscores the importance of matching clients with the proper coverage with another hypothetical scenario: If a tree trimmer buys a policy that prevents him from cutting down trees over 60 feet tall and his job is felling trees 60 to 80 feet tall, then the policy is useless. “You just have to challenge the customer to be open and honest with you,” he says. “It’s not just about price.”
But what about price? While it wasn’t at the top of their list of attributes that are important when working with a brokerage, clients haven’t forgotten about the bottom line – 95% said a brokerage’s ability to deliver the best deal/pricing is important. However, Arnold argues that consumers erroneously believe insurance is merely a commodity, so he says it’s important for brokers to educate the client on the nuances of quality and price. “The only differentiator is price, right? Nothing could be further from the truth,” he says. “We have to explain to them that I can sell you cheap, but it won’t be good. I can give you good, but it won’t be cheap.” Holmes has a similar perspective. “Relationships with our insurance partners allow us a certain degree of freedom that our clients find beneficial,” he says. “It goes well beyond a simple pricing advantage. Our markets know that when we bring them a risk, the clients have been well versed and the documentation will be in order, making working with Spectrum a more efficient process.”
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SPECIAL REPORT
5-STAR BROKERAGES
BROKERAGES 2021
RightSure Insurance Group Phone: 520-901-7010 Email: info@rightsure.com Website: rightsure.com
Higginbotham HUB International IRMS (AssuredPartners)
Acrisure KMRD Partners Aleckson Insurance Agency Knight Insurance Group Alliant Insurance Services Lakenan Andreini & Company Lockton Aon Marsh Ash Brokerage Miller-Schuring Agency Beecher Carlson PearsonRavitz Brokers Alliance Burch & Liles Insurance Solutions CityScape Insurance Coastal Insurance Solutions Coffman Insurance Services Covenant Insurance Services Countryside Insurance Agency DiBuduo & DeFendis Insurance Brokers
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POWERS Insurance & Risk Management Rainprotection Insurance Reagan Companies SeibertKeck Insurance Partners Spectrum Weather and Specialty Insurance Stratford Insurance Agency The Liberty Company Insurance Brokers
Gallagher
TIG Advisors
GS Insurance Solutions
USI Insurance Services
Harmon Dennis Bradshaw
Willis Towers Watson
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R Jeff Arnold, president
RIGHTSURE INSURANCE GROUP Phone: 520-901-7010 Email: info@rightsure.com Website: rightsure.com
ightSure Insurance Group is relentlessly committed to ensuring clients have an exceptional experience at every point of contact. “I believe focusing on the customer journey and exclusively listening to pain points during any part of the process is very vital to delivering a superior customer experience,” says RightSure president Jeff Arnold. “We fancy ourselves on providing insurance for everything from pets to jets.” Headquartered in Tucson, Arizona, RightSure is an award-winning, tech-forward brokerage that represents clients and businesses in 42 states. By using a unique, clientcentered approach combined with cutting-edge technology, RightSure presents clients with a wide range of insurance options and a seamless purchasing process. RightSure is known for leading with technology and facilitating a positive, unmatched culture of workplace innovation. RightSure continues to earn recognition for its achievements each year, including being named Insurance Agency of the Year in 2020 by Finance Monthly and Top Insurance Workplace for 2021 by IBA, among many others. “We think of our operation as the end of insurance shopping, as once consumers sign up for RightSure, they never have to shop for insurance again,” says Arnold, who has been with RightSure since 2007. “Anyone interacting with a RightSure staff member recognizes the difference in our service levels.”
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FEATURES
BROKERAGE INSIGHT
Climbing to the top The Liberty Company Insurance Brokers has been recognized for its rapid expansion and supportive workplace culture. President Jerry Pickett tells IBA how the brokerage has managed to keep that momentum going – even during the pandemic
THE LIBERTY Company Insurance Brokers has more than 30 years of industry expertise, a breadth of available resources and a notable footprint with more than 20 offices across California, Pennsylvania, Florida, Georgia, New York and New Jersey. Liberty is currently pushing $65 million to $70 million in revenue, and with full-fledged corporate departments such as IT, accounting, human resources, employee benefits and marketing, the brokerage is able to clear a path for staff and partners to facilitate successful growth. A key aspect that employees value about the company is its connectivity. CEO Bill Johnson and president Jerry Pickett were friends prior to founding Liberty, and they hoped to develop a company culture that emulates that same spirit of friendship. “The biggest challenge we had during the pandemic was our staff didn’t get to see each other,” Pickett says. “We had to be very deliberate about making those connections happen.” To do that, the brokerage hosted virtual cocktail hours, concerts and other digital events with leadership so employees across the country could stay in touch. “We were very intentional about keeping the team together even though that wasn’t a physical possibility,” Pickett says. “Liberty is a culture that happens to function as a
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business. We have a very family-oriented, social environment.” Liberty puts a big emphasis on community, happiness and wellness, all of which have improved over the last year and a half as the pandemic prompted the evolution of innovative support programs. Liberty has a chief wellness officer who provides one-on-one counseling for team members and holds meetings such as dream circles, where groups get together monthly to discuss what their dream life might look like outside of insurance. While the pandemic heightened stress levels and increased challenges, both personally and professionally, Liberty’s unique wellness programs have given employees help navigating these tough times. Pickett says Liberty plans to continue offering a high level of support on those fronts. Refining a culture that prioritizes openness and mental well-being has allowed Liberty to grow organically. Productivity
levels increase when a company can keep its staff content and connected, Pickett points out. Having a supportive culture not only helps with employee retention and attracting new talent, but it also makes Liberty more appealing to potential partners. “As a company, we embrace change – that’s how we improve and grow,” Pickett says. “Our growth in the last three years makes us the fastest-growing privately held insurance broker in the country, and we don’t see any sign of that slowing down.” Part of that growth has also been due to M&As – Liberty used progressive technological strategies to successfully facilitate multiple transactions during 2020. Recent acquisitions include the Budde Agency in Amityville, New York, and the Browning Agency in Hastings, Florida. “We can take that volume and put it in our MGA now that we have that expertise in-house,” Pickett explains. “We can not only
HOW LIBERTY LIVES ITS VALUES Liberty has been thoughtful when creating its core values to ensure its business environment is one that staff and partners are comfortable being a part of. Those values include integrity, excellence, caring, fairness, kindness, teamwork, good feelings and fun. “We have months where we celebrate each value,” Jerry Pickett says, “and find ways to integrate them to become a part of our daily language and company culture.”
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FAST FACTS: THE LIBERTY COMPANY INSURANCE BROKERS SPECIALTIES Commercial and personal property Commercial general liability Commercial and personal auto Surety Workers’ compensation Earthquake Flood Life and health Private clients Auto dealers and auto service/repair Childcare services
“We were very intentional about keeping the team together [during the pandemic] even though that wasn’t a physical possibility. Liberty is a culture that happens to function as a business” expand and scale, but we can also begin to offer service to sub-brokers as well.” Liberty hopes to continue expanding into niche segments using a business model that prioritizes taking a holistic approach with employees, partners and clients. “We have a mission called ‘promoting peace of mind with great care,’ and it really resonates with people,” Pickett says.
Liberty’s business development unit also runs various campaigns to identify clients in a particular niche business, producers they want to recruit and agencies around the country to form partnerships with. “We’re not private-equity-based,” Pickett says. “We will continue to be controlled in a private way, and it’s a wonderful environment to be in and share with others.”
Transportation Construction Nonprofits Legal professional liability Equipment and party rentals
Year founded: 1987 Headquarters: Woodland Hills, California Number of offices: 20+ Leadership: Bill Johnson, chairman and CEO; Jerry Pickett, president
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FEATURES
DIVERSITY AND INCLUSION
Building connections across cultures In a multicultural and diverse world, it’s important to know how to interact with one another – particularly in the workforce. Cultural intelligence specialist Gaiti Rabbani explains the importance of connecting with people from different cultures and how to do it
WE ARE living in an increasingly diverse global community. More often, we are being called on to work, learn and teach in situations where there is more than one culture at play. Acquiring the knowledge, skills and experience necessary to maneuver effectively in multicultural environments is increasingly important. Especially in this time of restricted travel, when we are reduced to lessthan-ideal communication channels, cultivating cross-cultural understanding is key.
When someone behaves differently to our own social codes, we can be quick to judge their behavior as abnormal or even wrong. Recognizing cultural expression as a learned behavior separate from personality promotes a deeper level of understanding.
The culture iceberg Initially, when two people from different cultures come together, they observe the visible features of culture. In some cultures, including the US, it is a sign of respect to look
polite to hold eye contact only briefly – especially in situations where the listener may be of a higher social status. Sporadic meeting of the eyes indicates respect rather than a lack of interest. We often refer to the iceberg analogy to illustrate the concept of culture. Developed by anthropologist Edward T. Hall in the 1970s, the model showcases the depth and breadth of culture, likening the complexity of culture to an iceberg. You can only see the top 10% of an iceberg, while 90% of its mass
Recognizing your personal culture lens Research demonstrates that cultural intelligence may easily be the single greatest difference between thriving in the 21st-century world and becoming obsolete. Encountering another culture and respecting and accepting the similarities and differences from our own is a muchvalued skill as our vast world shrinks into a global village. We cannot develop this level of empathy without sharpening our own self-awareness and recognizing our personal cultural lens. Our cultural looking glasses are accustomed to our own societal rules and definitions of what is normal and what is not.
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Developing your cultural understanding offers a pathway to navigating confusing situations and making appropriate adjustments to connect with others of different cultures someone in the eye when they speak to you. It demonstrates active listening and assures the speaker that you are engaged and interested. In return, if the other person holds eye contact, it signals confidence in what is being said. In many Asian cultures, however, it is
sits below the waterline, out of sight. Culture is much the same; the visible layer is a very thin slice. Consider a cross-cultural business encounter. If each person relies only on the observable behavior – in this case, eye contact
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– it will most likely trigger mutual feelings of mistrust or a question of respect. While different cultural groups may share the same underlying values, such as respect and trust, this example illustrates that the expression of these values can differ. The iceberg model highlights why we cannot judge a new culture purely on what we see. Instinctively, we know there’s more to a situation than we initially perceive. Consider what happens when someone’s behavior goes against your cultural norms. Did you perceive the other person’s behavior as unacceptable or disrespectful? Was your perception true? It is essential to take time to uncover the beliefs that underlie the behavior. Developing your cultural understanding offers a pathway to navigating confusing situations and making appropriate adjustments to connect with others of different cultures. Let’s go back to the example of eye contact. There’s a tendency to confuse cultural preferences with personality traits. Could the person holding direct eye contact be perceived as rude and intimidating in Asian culture? Could the person consciously offering a fleeting glance be seen as untruthful or lacking confidence to an American? Our cultural narratives start taking form during childhood, from the multiple layers of culture we experience in society. We learn the norms of the cultures we are exposed to, and these learned ideas become integral to our personal value system. To connect across cultures with people of diverse backgrounds, we first need to understand the values that mold our own lens of the world. As Henry David Thoreau said, the question is not what you look at, but what you see. Gaiti Rabbani is a cultural intelligence specialist, an executive advisor of people and culture, and founder of Rabbani Collective, a company that enables businesses to harness the potential of their people through custom learning and development programs.
www.ibamag.com
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FEATURES
LEADERSHIP
Leadership in the post-pandemic workforce Since the social restrictions introduced in 2020 forced much of the workforce to conduct business remotely, employers have been preparing for what the workplace will look like moving forward. Michelle Gibbings offers some tips for leading in the new working world
WITH COVID-19 has come challenge and opportunity for workplaces. As you look to the future as a business leader, what do you want to leave behind and carry forward in terms of how you work? Answering this question is important on two fronts. First, it’s too soon to go back to pre-pandemic ways of working, and second, COVID has accelerated workplace change, with much of it here to stay. Deciding how to go forward starts with identifying what’s working for you, your team and your organization. Think about what you have enjoyed, the benefits you have gained and why you want them to continue. Write these thoughts down and reflect on why they matter. Next, look at what hasn’t worked and why. Identifying the root cause is important to determine if a new way of working should be disbanded or just needs to be tweaked. It
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can be helpful to invite your team members to participate in this review so you get their perspective on the workplace. Doing this also helps build their buy-in and commitment to future change.
the office banter and casual conversations. These impacts translate into variations in productivity and engagement. Consequently, it’s essential to recognize each team member’s needs and understand what they require to be at their best at work.
Recognize different needs As part of this process, recognize that the level of adjustment and adaptation required across workplaces has and will continue to be mixed. For some employees, the rapid move to working from home has been successful, meaning less commuting, better work-life balance and access to effective technology to support productivity. For others, it has been stressful if they are juggling home schooling or lack a defined workspace or the technology they need to work effectively. Added to that, people who draw energy from connecting with their colleagues are missing
Create choice Many organizations are now using the term ‘work from anywhere,’ signifying that the traditional model of sourcing employees who are willing to be locally based or to travel frequently has shifted. This opens organizations to a broader talent pool. For employees, it also means they are no longer geographically hamstrung when it comes to applying for new roles. Also, some people are keen to get back to the office and others less so. Examine your workforce and roles to determine the options and flexibility that can continue.
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It’s essential to recognize each team member’s needs and understand what they require to be at their best at work Know when virtual doesn’t work
Step up and lead
Working from home is here to stay, but connection and time spent with team members and colleagues will always be necessary. Humans are tribal creatures who are hardwired for connection. Part of the joy that people experience at work comes from the banter and chats they have with their colleagues. Nothing can replace the casual corridor conversation or chat in the break room. Recognize that not everything can be done remotely (or done as effectively remotely). Leaders will want to consider where face-toface sessions are more productive and effective, and where remote will work just as well.
Leadership matters, whatever the working environment – be it the office or home. The best leaders appreciate this and are shifting and elevating their leadership style to suit these new circumstances. They understand that in times of challenge and uncertainty, they need to provide more, not less, leadership. People want to feel they matter and know they are valued. Leaders should continue to set regular times to check in with their teams. These check-ins aren’t just about how tasks are progressing; they’re about finding out how the team member is doing in terms of emotional and mental health, too.
Support healthy practices Central to creating a healthy environment is the relationship a leader has with their team. Successful relationships are underpinned by psychological safety – an environment in which people are comfortable sharing what is or isn’t working for them and how they are feeling, and being their authentic selves. It helps if leaders role model self-care behaviors. Encourage your team to take care of their physical and mental health. Suggest they take regular breaks, notice and manage workplace stress, and have a safe space where they can talk about their mental health and well-being. Michelle Gibbings is a workplace expert and the author of Step Up: How to Build Your Influence at Work, Career Leap: How to Reinvent and Liberate your Career, and the new book Bad Boss: What to Do if You Work for One, Manage One or Are One.
www.ibamag.com
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FEATURES
CREATIVITY
Unleash your team’s creativity There are four big blockers to being creative. Nathan Baird shares a few tips for how to overcome them so your work can be as fulfilling as possible
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www.ibamag.com
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WITHOUT CREATIVITY, there are no ideas, and without ideas, organizations and the people within them will stagnate, and neither will reach any sort of fulfillment. We spend so much of our lives at work that we want our work to be as fulfilling as possible. Creativity plays a key role in providing this fulfillment. And it goes without saying that we need creativity right now to design and innovate our way out of COVID-19 and stagnation. We also know from the author of Flow, Mihaly Csikszentmihalyi, that human beings are at their happiest (in flow or ‘the zone’) when they are creating. People actually long to express their creativity, and when we can’t, we’re more likely to feel disengaged, become unproductive and even feel depressed. So how do you unleash your team’s creativity so they are in flow more often – and increase engagement, productivity, ideas and
ideas are still just seedlings and aren’t ready for judging. We need to build on them further before we can confidently judge which are the good or bad ideas. When you are working in the creative phase, you need to ask everyone to suspend their typical business-world behaviors and take these steps to promote creativity: First, suspend your judgment so you can understand one another’s ideas. Then you can build on those ideas to come up with more breakthrough solutions.
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The brain
Most of us naturally think in a linear and analytical way. This is because the brain is a massive self-organizing storage device, like all the folders on your desktop or shared drive. It’s a place where logic presides. When you ask your brain to think of an idea – say, a new type of taxi service – then it
It goes without saying that we need creativity right now to design and innovate our way out of COVID-19 and stagnation happiness? What helps is recognizing the key blockers to creativity and how to overcome them. Four of the biggest blockers to individual and team creativity are behavior, the brain, state and space.
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Behavior
Our everyday business behavior is not conducive to creativity. It’s been refined over the years to help us in a fastpaced world in which swift analysis and making fast decisions based on sound evidence are king. Assessing one idea or recommendation versus another involves elements of criticism and relies on critical reasoning skills. It’s not that this approach is wrong; it’s just not right for creativity. In the early stages of the creative process,
immediately goes into its file on taxis. And what does it find in there? All the experiences you’ve had with regard to taxis. And none of it is new thinking. What you have to do is trick your brain to go to a different file and find some different stimulus to inspire new ideas. For example, you could come up with new ideas by ‘breaking the rules’ and challenging the status quo of the taxi industry. One rule for the taxi industry used to be that you had to wait outside your location until the taxi arrived. Uber broke this rule with the development of an ETA tracking device on its app. Right now, we are having to break the rules of working, collaboration, distributing our goods and services, and, in some cases, even our entire business models.
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State
4
Space
If your state feels stuck, then ideas are impossible. During COVID-19, how we are feeling emotionally, physically, mentally and even spiritually is very important. Some of us are feeling more in flow while working from home, while others are not due to lack of socialization and face-toface collaboration. The key to changing your state is moving. Not only does physical activity promote feelgood endorphins, but it jolts our mind from its customary groove. A walk outdoors can also inject some freshness and stimulate new ideas. We can take this further by being really playful and encouraging self-expression, which opens up our creative minds, giving us access to our own creative genius.
One of the biggest triggers of our state and creativity is the environment or space we are in. Many of our workplaces, including our work-from-home setups, are designed for meetings and getting stuff done rather than being creative. It’s important that we have spaces that encourage creativity and collaboration in all of our flexible working environments (both physical and virtual). A space for creativity is one in which you can be yourself, get away from day-to-day distractions and noise, be inspired, and become totally engrossed in the work you are doing. It could be a quiet room in your house or a local café. Right now, creativity is really important. It will not only help organizations come out of COVID-19 in better shape, but also boost team productivity and happiness. Nathan Baird is the founder of customer-driven innovation and growth firm Methodry and the author of Innovator’s Playbook: How to Create Great Products, Services and Experiences That Your Customers Will Love.
www.ibamag.com
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PEOPLE
OTHER LIFE
K err once held the career a nd singleseason stolen base records as a player for Tru ma n State University
TELL US ABOUT YOUR OTHER LIFE Email iba@keymedia.com
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Years Kerr has been coaching softball and baseball
5
Number of college softball programs he has coached
1.000
Kerr’s fielding percentage during his junior year of college
A HOME RUN Field insurance rep Chad Kerr has spent decades nurturing generations of softball players A STANDOUT baseball player in his college days, Chad Kerr never made the leap to the pros. But while coaching his own kids, he discovered that he had a talent for guiding female athletes, which led him to become a softball coach. Kerr landed his first collegiate head coaching post at Central Christian College
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in Kansas in 2011. While he’s now a field insurance representative for the Missouri Association of Insurance Agents, Kerr still does some private softball coaching on the side – and he says his coaching journey has been filled with ups and downs. “By far, the fun memories outshadow the bad,” he says. “I am still in touch with
most of the players that I coached over the last 10 years. It’s great seeing them advance as women and progress into their careers, marriage and parenthood. It was an honor to have coached my two daughters at the college level. They had other opportunities, so I was blessed they chose to play for me.”
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