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IBAMAG.COM
ISSUE 8.06
ELITE WOMEN 2020
DAWN D’ONOFRIO
Challenging the Status Quo
THE SHIFTING TIME FOR SOME BUILDER’S RISK IN
RISK LANDSCAPE NETWORK SECURITY? THE COVID-19 ERA
What your clients need to How one network is helping The industry’s response to
know if they’ve started its member agencies weather new limitations introduced
manufacturing PPE the COVID-19 storm by the pandemic
IFC-01_Ad.indd 16 5/06/2020 3:06:32 AM
IFC-01_Ad.indd 17 5/06/2020 3:06:41 AM
ISSUE 8.06 CONNECT WITH US
Got a story or suggestion, or just want to
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CONTENTS
twitter.com/InsuranceBizUS
facebook.com/InsuranceBusinessUS
UPFRONT
04 Editorial
COVID-19 has put ambiguous policy
language under a microscope
54
06 Statistics
Key data that should be on your
radar this month
08 News analysis
FEATURES
What are the insurance implications
BUILDING when manufacturers shift operations to
help with the COVID-19 response?
FROM A SOLID
FOUNDATION 10 Intelligence
This month’s big movers, shakers and
How insurance is addressing the
challenges COVID-19 has thrown at new products
22 58
the construction industry
12 Workers’ comp update
An updated tool gives employers
greater insight into the total cost of
workers’ comp risks
14 Technology update
What insurers can do to compete with
tech giants like Amazon and Google
SPECIAL REPORT
21 Opinion
ELITE WOMEN How virtual claims handling can provide
IBA shines the spotlight on 77 women who are paving the way a lifeline to insurers during COVID-19
for greater equality in the insurance industry FEATURES and other crises
STRONGER
TOGETHER FEATURES
PEOPLE One Agents Alliance CEO Tony
60 Agency automation: the key
INDUSTRY Caldwell discusses how being part
of a network can help independent to scaling your business
ICON agencies cope in times of crisis Why automation is essential for any
Trident Public Risk agency that wants to grow
Solutions president Sue
Coates on going above
and beyond to make PEOPLE
sure schools, firefighters
and other public-sector 64 Other life
organizations have A walk in the woods with insurance
62
proper coverage executive and outdoor enthusiast
18
David Dybdahl
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to our unsurpassed financial strength and stability.
Let us show how we can put the very best of E&S
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Nationwide and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2020 Nationwide ESC-0268AO (05/20)
02-03_TOC-SUBBED.indd 3 5/06/2020 3:59:19 AM
UPFRONT
EDITORIAL www.ibamag.com
MAY 2017
EDITORIAL
The importance
Managing Editor
Paul Lucas
Editor
of words
Bethan Moorcraft
Journalists
Alicja Grzadkowska, Ksenia Stepanova,
Camilla Theakstone, Mia Wallace
News Writers
T
he coronavirus pandemic has infected the vocabulary of our daily lives. Lyle Adriano, Terry Gangcuangco,
Roxanne Libatique, Gabriel Olano
Terms such as ‘social distancing’, ‘flattening the curve’ and ‘quarantini’ have
Staff Writers
reached buzzword status, and conversations about remote working and Ellen Burkhardt, Tom Goodwin,
virtual meetings have become that other overused phrase: the new normal. Kasi Johnston, Ryan Smith
This pandemic-induced vocab shift has infiltrated the insurance industry, too. Copy Editor
Clare Alexander
While yesterday’s buzzwords – from ‘hard market’ to ‘social inflation’ – remain as
CONTRIBUTORS
important as ever, today’s top industry concerns are all virus-related. How long will
Susan E. Egeland, Sara E. Inman, Donna McGeorge
the COVID-19 pandemic last? Is the industry sufficiently capitalized to handle the
ART & PRODUCTION
economic fallout? How can catastrophic pandemic risk aggregation be mitigated? Designer Joenel Salvador
Will the federal government support a pandemic insurance program? Will the Production Manager Alicia Chin
industry have to fight some costly lawsuits? Production Coordinator Kim Kandravy
Traffic Manager Ella Dayandante
Unfortunately, for many property & casualty insurers in the United States, the
SALES & MARKETING
answer to that final question is yes. Pandemic-related litigation started coming Vice President, US Market Cathy Masek
thick and fast through April and May as many businesses sued their insurance Vice President, Sales John Mackenzie
carriers over a perceived lack of coverage. Most of the lawsuits so far have revolved Media Sales Manager Desiree McCue
Global Head of Media Marketing Adrijana Monevska
around denied business interruption claims after mandatory closures of non-
CORPORATE
essential businesses.
Chief Executive Officer Mike Shipley
Chief Operating Officer George Walmsley
President Tim Duce
The coronavirus has illuminated the Chief Information Officer Colin Chan
Human Resources Manager Julia Bookallil
importance of clarity in policy language,
Editorial Inquiries
terms and conditions. For humans in paul.lucas@keymedia.com
Subscription Inquiries
a time of crisis, a solid ‘yes’ or ‘no’ is far subscriptions@keymedia.com
Advertising Inquiries
more comforting than a ‘maybe’ cathy.masek@keymedia.com, desiree.mccue@keymedia.com
Most traditional policies do not offer coverage for business interruption or Key Media
78O7 E. Peakview Ave., Suite 115
supply chain disruption due to a pandemic such as COVID-19. Generally, business Centennial, CO 80111, USA
interruption insurance will only be triggered by a direct physical loss to property, tel: +1 720 316 0151 keymedia.com
unless there is unique language written into the insurance contract that deems
Offices in Denver, London, Toronto,
otherwise. Thus, plaintiff lawyers are coming in hard against P&C insurers over Sydney, Auckland, Manila
their choice of words. They are pouncing on any ambiguity in the insurance policy
language, especially if policies do no not expressly exclude losses caused by viral Insurance Business America is part of an international family of
infections such as COVID-19. B2B publications, websites and events for the insurance industry
What lessons can the industry learn from this? The coronavirus has illuminated Insurance Business Canada
the importance of clarity in policy language, terms and conditions. For humans in john.mackenzie@kmimedia.ca T +1 416 644 874O
a time of crisis, a solid ‘yes’ or ‘no’ is far more comforting than a ‘maybe.’ Perhaps Insurance Business UK
COVID-19 will ultimately help insurers flatten any curves in potentially ambiguous gemma.powell@keymedia.com T +44 20 7193 0935
policy language. Insurance Business Australia
peter.smith@keymedia.com.au T +61 2 8437 47OO
Insurance Business NZ
The team at Insurance Business America peter.smith@keymedia.com.au T +61 2 8437 47OO
Insurance Business Asia
peter.smith@keymedia.com.au T +61 2 8437 47OO
Printed in Canada
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magazine can accept no responsibility for loss.
04-05_Editorial-SUBBED-US34.indd 4 5/06/2020 3:01:10 AM
6470_
All stars!
AXA XL proudly supports
Insurance Business America
and congratulates our own
2020 Elite Women
June Dwyer
Rose Hall
Henna Karna
Jennifer Schipf
We applaud our colleagues
for their leadership
in the industry.
axaxl.com
AXA XL is a division of AXA Group providing products and
services through three business groups: AXA XL Insurance,
AXA XL Reinsurance and AXA XL Risk Consulting.
AXA, the AXA and XL logos are trademarks of AXA SA
or its affiliates. © 2020.
04-05_Editorial-SUBBED.indd 5 5/06/2020 2:52:31 AM
6470_AXA XL_IBA-June2020_Elite Women.indd 1 5/27/2020 11:48:05 AM
UPFRONT
STATISTICS
COVID-19 HITS A MONTH OF
INSURTECH CATASTROPHES
FUNDING While March 2020 will go down PLAINS, MIDWEST,
in history as the month when the SOUTHEAST, NORTHEAST
COVID-19 pandemic escalated in Severe weather
the US, it was also an active month Date: March 17-20
Economic losses: $290 million
for catastrophe events across the
country. All told, natural disasters
caused more than $2.4 billion in
economic damage during the month
of March, according to Aon. Two
50%
Quarterly drop in global insurtech
events – a string of tornadoes and
hailstorms across the Midwest and
South that hit Nashville particularly
funding in the first quarter of 2020 hard, plus a severe weather outbreak
across the central and eastern US
that included tornadoes, hail and
flash flooding – caused more than
$1 billion in economic losses each.
UTAH
Earthquake
Date: March 18
29%
Increase in insurtech deal count
Economic losses: $1 million
between Q4 2019 and Q1 2020
REINSURANCE CAPITAL’S HIGH POINT
54%
Decrease in insurtech deal volume
Global reinsurance capital saw robust growth in 2019, totaling $605 billion by the end of the year,
according to Willis Re – a year-over-year growth rate of 15%. However, Willis Re said it expects the
first half of 2020 to erase most of these gains due to the steep sell-off in equity and corporate bond
markets brought on by COVID-19.
during the same period
TOTAL DEDICATED REINSURANCE CAPITAL
$700bn
$600bn
$500bn
$400bn
$300bn
1
Number of mega-deals (worth $100 million
$200bn
$100bn $435 $427 $449 $486 $526 $605
or more) that took place in the first quarter billion billion billion billion billion billion
$0
Source: Willis Towers Watson Quarterly Insurtech Briefing, Q1 2020 2014 2015 2016 2017 2018 2019
Source: Willis Re 2019 Reinsurance Market Report
6 www.ibamag.com
06-07_Stats-SUBBED.indd 6 5/06/2020 2:55:01 AM
TOP 10 STATES FOR
PLAINS, MIDWEST,
SOUTHEAST, NORTHEAST
MIDWEST SEVERE WEATHER
Flooding
Severe weather Severe weather is the largest contributor to
Date: March 20
Date: March 27-30 Economic losses: $1 million catastrophe losses in the US, and certain areas
Economic losses: $1 billion tend to attract more of it than others. According
to the National Weather Service’s Storm
Prediction Center, Texas, Kansas and Virginia led
the way for severe weather events in 2019.
1. Texas
Number of events in 2019: 1,985
MIDWEST, SOUTHEAST
Severe weather
Date: March 11-13
2. Kansas
Economic losses: US$10 million MIDWEST, SOUTHEAST Number of events in 2019: 1,405
Severe weather
Date: March 2-5 3. Virginia
Economic losses: $1.1 billion Number of events in 2019: 1,199
4. Pennsylvania
Number of events in 2019: 1,064
SOUTHEAST
Severe weather 5. North Carolina
Date: March 31 Number of events in 2019: 966
Economic losses: $10 million
6. Missouri
Number of events in 2019: 907
7. Ohio
Number of events in 2019: 833
8. Georgia
SOUTHEAST Number of events in 2019: 811
Severe weather
Date: March 24 9. Oklahoma
Economic losses: $10 million Number of events in 2019: 799
10. Nebraska
Number of events in 2019: 779
Source: Aon Global Catastrophe Recap March 2020 Source: NOAA/NWS Storm Prediction Center
WHERE CONSOLIDATION LIES CYBER LOSSES SKYROCKET
Over the past 15 years, the US auto insurance market has become As the world becomes more technology-dependent, the value of
increasingly consolidated. McKinsey & Co. recently found that the market cyber losses has grown rapidly. According to data from the Insurance
share held by the top 15 carriers has increased from 72% in 2005 to nearly Information Institute and the Internet Crime Complaint Center, total
80% last year. It’s a different story in homeowner’s insurance, however, where cyber losses in the US have more than tripled since 2015.
the top players’ market share has remained mostly stagnant.
$3.5 million
MARKET SHARE OF THE TOP 15 CARRIERS $3.5m
$3m
AUTO HOME
2005 2005 $2.71 million
$2.5m
72% 72% $2m
2015 2015 $1.5m
$1.45 million $1.42 million
77% 68% $1m
$1.07 million
$500k
2019 2019
79% 70% $0
2015 2016 2017 2018 2019
Source: State of Property & Casualty Insurance 2020, McKinsey & Co. Source: Insurance Information Institute/Internet Crime Complaint Center
www.ibamag.com 7
06-07_Stats-SUBBED.indd 7 5/06/2020 2:55:06 AM
UPFRONT
NEWS ANALYSIS
Changes on the
assembly line
Many manufacturers are shifting their operations
to produce personal protective equipment during
the pandemic – and they’re facing new exposures
that their insurance policies need to address
AS STATES begin to reopen their econ- produce related component parts, such as
omies in the midst of the coronavirus stands for ventilators.
pandemic, the need for personal protective How a manufacturer has transitioned its
equipment (PPE) is not likely to diminish. production output has implications for the
The outbreak has created a supply shortage in exposures the company faces. For example,
the US for PPE, including face masks, surgical if a manufacturer that is already producing
gowns and other tools critical to protect those hand sanitizer decides to increase production
working on the front lines of this crisis. As the of that essential good by 25%, “you now have
numbers of confirmed COVID-19 cases and an increase in productivity and output, which
hospitalizations continue to climb, keeping means you have an increase in raw material
PPE in stock will be of the utmost importance and finished products that you’re storing,” likewise presents risks and might require a
over the coming months. Steinmetz explains. “With that change in change in their insurance program.
To help meet the demand for PPE, some volume, you have storage configuration “If it’s a company from the automotive
US manufacturers have shifted their opera- concerns, and you also have flammability industry, medical products are typically
tions to produce this and related equipment, issues related to the product itself.” insured in a different sector of the insurance
industry, so it would be a noticeable change
“Manufacturers may have an obligation in their risk profile,” says Mike Stankard,
managing director of Aon’s industrial and
to alert their underwriters that they are materials and automotive practices. “That
would also trigger a search of what their
involved in this activity” current insurance policies are – how they’re
laid out, what they’re covering, what type of
Mike Stankard, Aon indemnities they might be getting from other
companies that they may be subcontracting
which in turn has changed their risk profile. That manufacturer would need to consider for, and then ultimately looking at immu-
Scott H. Steinmetz, global head of MidCorp whether its current fire suppression systems nities that the US government is providing
at Allianz Risk Consulting, part of Allianz adequately protect its facility, given the higher to manufacturers.”
Global Corporate & Specialty, has noticed volume of flammable product being stored. The latter protection primarily comes from
a diverse group of manufacturers turning Additionally, increasing the pace of manufac- a March 10 declaration to the Public Readi-
their attention to the production of PPE turing to meet a new production target could ness and Emergency Preparedness (PREP)
and medical equipment, including those in create potential failure points for equipment Act, which provides immunity to companies
the automotive industry, as well as ancillary breakdown. Other manufacturers might be from liability arising from the manufacture,
Tier 2 suppliers that have the capability to adding a new product into the rotation, which testing, development, distribution, adminis-
8 www.ibamag.com
08-09_News Analysis-SUBBED.indd 8 5/06/2020 2:55:30 AMUNDERSTANDING PPE
PPE includes gloves, medical/surgical face
masks, goggles, face shields and gowns, as well
as respirators and aprons for surgical procedures
Since the start of the COVID-19 outbreak, PPE
prices have surged – surgical masks have seen a
sixfold increase, while N95 respirators and gowns
have tripled and doubled in price, respectively
An estimated 89 million medical masks are required
worldwide each month for the COVID-19 response
tration and use of certain COVID-19 response in designing the [PPE] solution,” Stankard To meet rising global demand, industries need to
products. Notably, these activities “must says. “In one case, our client volunteered increase PPE manufacturing by 40%
relate to an arrangement with the federal labor and a facility, but the research and
Source: World Health Organization
government” or be specifically authorized by development behind the actual product was
an “authority having jurisdiction.” brought to the table by another party. In wrong with those products, there might be
relief from the main manufacturer’s insur-
“[We need] to be sure that the company ance program.
Finally, the insurance programs manu-
is protected and that the carrier facturers already have in place can provide a
line of defense. However, Stankard notes that
understands what we’re signing on for” “manufacturers may have an obligation to
alert their underwriters that they are involved
Scott H. Steinmetz, Allianz Risk Consulting in this activity that would represent a material
change in exposure, giving the underwriter
Insurers and policyholders alike need to another case, the manufacturer is using their the opportunity to weigh in on whether they
understand how the PREP Act relates to new 3D printers to print out face shields, but then are comfortable with the situation.”
manufacturing operations and the strengths they’re being shipped to someone else that’s Ultimately, keeping the lines of commu-
and weaknesses of that immunity, Stankard integrating them into the final product.” nication open with insurance professionals
says, adding that an insurance review would When a manufacturer is working on during this shift in manufacturing operations
also consider whether companies are acting behalf of another company, he explains, it is essential. “It’s an important dialogue to have
as subcontractors for PPE production. might have a contractual indemnity that – an exchange to be sure that the company is
“In some cases, they’re subcontracting out would support the immunity it would get protected and that the carrier understands
to the lead company that might be involved from the government – and if anything went what we’re signing on for,” Steinmetz says.
www.ibamag.com 9
08-09_News Analysis-SUBBED.indd 9 5/06/2020 2:55:33 AMUPFRONT
INTELLIGENCE
CORPORATE PRODUCTS
ACQUIRER TARGET COMMENTS
Maryland-based Georgetown Insurance provides specialty
Georgetown Insurance
Alera Group insurance for the construction, manufacturing, real estate
Service
and transportation industries
The deal adds eight P&C and employee benefits
Amerman Insurance
Higginbotham professionals to Higginbotham’s existing practice in
Services
San Antonio
New York-based B&G Group provides commercial insurance
The B&G Group, Healy to various industries, including real estate, business
Hub International
Benefits services and construction; Healy Benefits is an Indiana-
based employee benefits specialist
Truck Writer Insurance TWIS will operate as a separate, autonomous agency as
OLI Insurance Services
Services an affiliate of the OLI network
Paragon Insurance Trident Public Risk Previously part of Argo Group, Trident provides commercial
Holdings Solutions insurance coverage for public entities in the US
TWFG has acquired Panoptic’s personal and commercial
TWFG Insurance
Panoptic Insurance insurance business in a bid to expand its specialty
Services
insurance offerings and its national footprint
AXA XL offers virtual risk
assessments
In response to restrictions imposed by the
ongoing COVID-19 pandemic, AXA XL has launched
Remote Risk Dialogue, a new virtual risk assessment
service that uses data captured from phone calls,
reports and web tools to enable risk engineers to
perform remote analysis that wouldn’t normally
be seen in traditional loss prevention offerings. In
addition, the tool allows risk managers, brokers and
underwriters to benefit from an up-to-date view of
the client’s risks, including changes in exposures due
to shifts in operations and output brought about by
the pandemic.
Hub makes slew of new acquisitions
Hub International announced several acquisitions in May, including The
B&G Group, an agency located on New York’s Long Island. One of the largest
insurance agencies in the New York City metro area, B&G provides commercial AIG unveils largest-ever
insurance to industries such as real estate, business services and Lloyd’s syndicate
construction. The acquisition adds more than 100 employees to Hub’s AIG has made history with its launch of the
Northeast regional presence. largest-ever syndicate through Lloyd’s of London.
Also in May, Hub acquired Healy Benefits, the employee benefits division Syndicate 2019, managed by Talbot Underwriting,
of The Healy Group. Based in South Bend, Indiana, Healy Benefits’ services has been set up to exclusively reinsure risks from
include benefits communications, workplace wellness plans and risk AIG’s private client group, which has a leading market
management seminars. The agency’s owners and staff will become part of position in the high-net-worth segment. AIG has
Hub Midwest East. secured significant capital support for the syndicate
The two deals were swiftly followed by two additional agency acquisitions from third-party investors and capacity providers.
in Tennessee and Massachusetts. Commenting on the B&G acquisition, Hub When combined with its existing Lloyd’s operations,
president and CEO Mark Cohen said the company “continues to remain active the new syndicate gives AIG the ninth largest
and thoughtful in our M&A strategy throughout the COVID-19 crisis.” managing agency in the Lloyd’s market in terms
of capacity.
10 www.ibamag.com
10-11_Intelligence-SUBBED.indd 10 5/06/2020 2:59:19 AMPEOPLE
NAME LEAVING JOINING NEW POSITION
Axon Underwriting
launches cyber program Dominic Addesso Everest Re BMS Group Non-executive chairman
Specialty lines program administrator
Axon Underwriting Services has Senior vice president and
added a cyber liability program to its Robert Bell N/A PMA Companies
chief financial officer
suite of products for SMEs. Known
as CyberAdvantage, the program is Nancy Bewlay N/A AXA XL Chief underwriting officer
backed by Lloyd’s of London and is
designed to respond to data breach
and ransomware incidents with Frank Caplan Foa & Son Worldwide Facilities Assistant vice president
response services, defense costs,
business interruption coverage,
data recovery and credit monitoring Oliver Holme Ørsted Marsh US and UK offshore wind leader
services. According to Randy
Hampton, executive vice president LoriAnn Lowery-
The Navigators Group BMS Group Non-executive director
and partner at Axon Underwriting, Biggers
the “broad product offering is highly
Michelle Chief underwriting officer,
relevant to the increasing number of McLaughlin
N/A Chubb
North America SME insurance
exposures faced by companies, given
changes in the work environment.” Allianz Cyber Center of
Catharina Richter N/A Global head
Competence
Price Forbes &
Pilar Villanueva AFL Insurance Brokers Head, Latin America
Partners
Jonathan Zaffino Everest Re Ascot Group President
CFC launches licensing
agreement liability product
CFC Underwriting has introduced a new Chubb names chief underwriting officer for SMEs
product designed to protect licensees against Chubb has tapped Michelle McLaughlin to serve as chief
unintentional breach of a licensing agreement. underwriting officer for the company’s North America retail
An alternative to a full media liability policy, the commercial P&C insurance division, which serves middle-
product covers individual licensing contracts or market and small businesses. McLaughlin will be responsible
annual licensing agreements with multiple brands. for guiding the business lines’ underwriting strategies
It provides coverage for incidents such as selling and authority, as well as overseeing the division’s general
in unauthorized channels or territories, incorrect underwriting management. Prior to this role, she was Chubb North America’s
usage or quality assurance breaches, and improper EVP and property and marine manager for commercial insurance.
sublicensing. It also includes coverage for intellectual “Our small business division is focused on innovation, and I look forward
property infringement in relation to the assets to working with Michelle to ensure we continue to provide superior-quality
specified in the licensing agreement. solutions and services to agents and customers alike,” said James Williamson,
VP of Chubb Group and division president of Chubb Small Business.
CyberCube releases new Ascot Group gets new president
version of risk platform Specialty insurance and reinsurance firm Ascot Group has
Cyber analytics provider CyberCube has appointed Jonathan Zaffino as group president. Zaffino,
released an updated version of Portfolio Manager, whose 26-year career spans underwriting and brokerage
its cyber risk platform for insurers, reinsurance leadership roles, was a managing director at Marsh before
brokers and reinsurers. Portfolio Manager allows becoming president and CEO of Marsh subsidiary Victor O.
insurers to stress test reinsurance portfolios against Schinnerer. He most recently spent five years as president
a spectrum of cyber-related scenarios, including data and CEO of Everest Insurance before stepping down in April.
breaches, cloud outages, global ransomware attacks “I very much look forward to welcoming Jon to Ascot and working with
and financial fraud. First launched in 2018, Portfolio him as we continue the build-out of our US and Bermuda businesses,” said
Manager was the world’s first fully probabilistic cyber group CEO Andrew Brooks. “His appointment demonstrates the strength of
catastrophe model. CyberCube said it has worked Ascot’s franchise, our commitment to building a premier global (re)insurance
with leading market participants over the last two business and to attracting industry-leading talent.”
years to develop the latest edition of the platform.
www.ibamag.com 11
10-11_Intelligence-SUBBED.indd 11 5/06/2020 2:59:22 AMUPFRONT
WORKERS’ COMP UPDATE
NEWS BRIEFS Managing
Sedgwick and
One Call roll out
relief efforts. The organizations include
Big Table, which provides support to
workers’
return-to-work
safety programs
hospitality employees impacted by the
outbreak, as well as the San Diego Food
Bank and the Diablo Valley Foundation
risk amid
COVID-19
Sedgwick and One Call have teamed
for the Aging, which are located near
up to create programs that promote
Preferred Employers’ offices in San
safety and injury prevention for
Diego and Northern California.
employees re-entering the workplace
once COVID-19 restrictions are lifted.
The programs include services such Organizations need all
as at-home ergonomics and virtual Tangram expands the help they can get
conditioning and strengthening to help program for
workers with physically demanding jobs social services to manage their total
readapt to their responsibilities after an workers
extended leave. They’re also targeted at Tangram Insurance Services has
workers’ comp risk costs
employees who are working from home
for the first time, helping them prevent
partnered with national workers’ comp
carrier Service American Indemnity
– and an updated tool
injury by providing tips such as how to
set up a proper workstation and avoid
Company (SAIC) to enhance its aims to meet that need
social service workers’ compensation
prolonged sitting. program, allowing Tangram to provide
workers’ comp coverage to thousands of
social service organizations throughout The best way for an organization to keep
Texas Mutual the US. “I am incredibly excited about
workers’ compensation costs down is to reduce
names new our partnership with Service American,”
said Tangram president and CEO Rekha the frequency of claims. But the unprec-
senior VP of Skantharaja. “Their specialization and edented public health crisis of COVID-19
underwriting longevity in the workers’ compensation has thrown a huge wrench into businesses of
Texas Mutual Insurance Company has
space are highly complementary to our all types and sizes, and it continues to raise
promoted Jeff Lentz to the role of SVP of
capabilities. Our social service program
underwriting, charged with overseeing concerns about worker safety.
will be an even more meaningful
the insurer’s corporate underwriting, Fortunately, organizations do have access
provider of insurance solutions to these
underwriting support services, regional to tools and technology that can help them
critical organizations.”
underwriting, distribution, agency
manage workers’ compensation costs. One
operations, business development and
customer engagement. Lentz joined example is Aon’s Spectrum Analytics, a
workers’ compensation cost management
Texas Mutual in 1993 as an underwriter California state
in the Houston regional office, where workers’ comp tool that was updated in May. The latest
he spent three years before going on
fund offers enhancements include deeper data drill-
to work for several other insurance
companies. He returned to Texas
COVID-19 support down and added loss profiles to drive more
The California State Compensation prescriptive actions, an online calculator to
Mutual in 2004 to lead underwriting and
Insurance Fund has announced $165 quantify savings and prioritize initiatives,
marketing operations at the company’s
million in additional funding to support and a 12- and 36-month performance goal
Dallas regional office and most recently
businesses and workers impacted
served as vice president of underwriting. tracker, among other features.
by the COVID-19 crisis. This includes
doubling the size of its Essential Spectrum Analytics also incorporates Aon’s
Business Support Fund – which Casualty Laser benchmarking results with
Preferred essential employers can tap into for advisory consultation, which can help risk
Employers reimbursement of expenses for managers identify potential cost savings and
donates to COVID-19-related safety improvements monitor the performance of pre- and post-loss
pandemic relief – to $50 million. The insurer has also
total cost of risk mitigation strategies.
California workers’ comp insurer created a COVID-19 Safety Protocol
Preferred Employers Insurance has Fund, which will provide nonessential “Conservatively speaking, Spectrum
made significant donations to three businesses with grants to help cover typically identifies 12% to 24% in workers’
organizations involved in COVID-19 safety-related expenses. compensation loss cost savings opportunities,”
says Christopher Iovino, managing director
12 www.ibamag.com
12-13_Workers Comp Update-SUBBED.indd 12 5/06/2020 2:58:03 AMof Aon Global Risk Consulting. “Spectrum
has the ability to provide clients with a choice
Q&A
It’s never too
of savings ranges for each issue identified as
actionable. This gives clients the discretion to
select or refine target savings based on their
late to plan
own insights into the organization.”
Rick Fineman
“We are not currently Vice president, risk
management
seeing significant ICW GROUP How should organizations returning to work assess and
mitigate the risks they face due to COVID-19?
claims volume, but we OSHA and the CDC have provided guidance to help organizations
Years in the industry identify, quantify and reduce risks associated with infectious
are certainly preparing 25+ disease, including COVID-19. This includes the development of an
infectious disease preparedness and response plan that lays out a
our clients for that Fast fact formal risk assessment process, involving a role-by-role evaluation
Before working in
probability” risk management,
of an employee’s exposure to COVID-19. It identifies the tasks that
may drive risk and the associated controls that may be needed to
Fineman studied the mitigate those risks, such as personal protective equipment [PPE].
The new version of Spectrum Analytics After completing a risk assessment and identification of role-
impact of heavy metals
comes as COVID-19 remains a major health specific controls, companies should implement the identified
from mining on native
and economic concern for organizations PPE, administrative and engineering controls. To help companies
populations in Alaska navigate through this process, ICW Group has prepared a
around the world. Iovino confirms that
framework that supervisors can use to determine the risk level for
“Spectrum Analytics can certainly be lever-
each employee’s tasks. Once a supervisor knows the risk level, we
aged as a tool to track the relative volume and recommend specific control methods. Clerical work, for example,
costs on WC claims coded to COVID-19,” but is considered low-risk if the employee has little or no contact with
he adds that Aon has yet to see claims volume others; controls include social distancing and awareness training.
jump as a result of the pandemic. “We are not A task such as stocking shelves, where an employee has moderate
currently seeing significant WC or liability exposure to others, is considered a medium risk, and nitrile gloves,
cotton masks and other PPE are recommended.
claims volume,” he says, “but we are certainly
preparing our clients for that probability.”
What workforce-related lessons has this pandemic
More broadly, Iovino says, Aon remains
highlighted, and how will those lessons guide disaster
committed to helping clients during the preparedness plans for future pandemics?
outbreak. “Aon has established several solu- The biggest lesson to take away from the COVID-19 crisis is the
tions and continues to advise our clients on need for thorough and advanced planning. Planning for risks that
the COVID-19 pandemic. Conversations are may only rarely be realized is still important. Organizations that
ranging from compensability and coverage had clear pandemic response plans in place performed better than
those that did not. Furthermore, organizations that have planned
advice to assessing current business conti-
effectively have had better access to PPE, quicker response times to
nuity and recovery efforts and returning daily changes in recommended controls and the ability to address
employees safely back to the workplace.” employee concerns more consistently. If you don’t currently have a
response plan in place, it’s never too late to get started. ICW Group
regularly works with policyholders to get plans in place so they are
ready for the next disaster.
What are the things organizations should be training
their employees on to prepare them for the next outbreak?
In general, organizations should inform their employees of response
plans they have in place for pandemics and other disasters. As it
relates to the current situation, ICW Group is guiding policyholders
to train employees on how to recognize COVID-19 symptoms,
the need for social distancing, isolation procedures for potential
positive cases and the controls needed to protect themselves and
other workers. In addition, employees must be trained on the work
processes and expectations if they are working from home and
what the modified workplace expectations are if they are returning
to the workplace.
www.ibamag.com 13
12-13_Workers Comp Update-SUBBED.indd 13 5/06/2020 2:58:06 AMUPFRONT
TECHNOLOGY UPDATE
How insurers can
problem of will, but of capability.
“Insurance has not been a business that
has seen the kind of real-time, third-party
take on big tech
information that we’re talking about as core
to its value proposition,” he says. “They’ve used
third-party data typically as a tool for post-hoc
One insurance leader says incumbents need to be analysis as opposed to real-time monetization.”
Capgemini’s report stressed that incum-
inventive to match the likes of Amazon and Google bents must transform into “inventive insurers”
if they want to compete with big tech. But
what does it meant to be inventive?
“It’s a mindset that
involves putting the
customer at the center
of the transaction”
“I think it’s a mindset that involves, first
and foremost, putting the customer at the
center of the transaction and re-envisioning
Seth Rachlin, EVP and P&C every aspect of the insurance process from the
insurance leader, Capgemini customer-first perspective,” Rachlin says. He
adds that insurers also need two other factors
Consumers of all ages are adopting a so-called before insurtechs stepped in. For instance, to compete with tech companies: product
“millennial mindset” when it comes to buying Capgemini found that more than half of agility and an understanding of their role in
insurance, according to Capgemini and Efma’s consumers are interested in usage-based the insurance ecosystem.
latest World Insurance Report. Thirty-six insurance (UBI) for auto coverage; however, “It’s figuring out how to fit into a broader
percent of respondents to Capgemini’s 2020 only half of insurers currently offer UBI, ecosystem of providers, distributors and
survey said they would consider purchasing leaving a void that’s been filled by insurtechs value-added services and just rethinking the
insurance from a big tech name like Google, and even major car manufacturers. entire insurance equation – its customer, its
Amazon and Apple, up from only 17% in 2016. When it comes to meeting the consumer product, its ecosystem – and it’s powered by
The growing interest in insurance tech- demand for innovation, Seth Rachlin, execu- data,” he says. “If you get those things right, I
nology should have been a good thing for tive vice president and P&C insurance leader think you have a fighting chance of becoming
insurers – had they capitalized on the trend at Capgemini, believes the issue is not a an inventive insurer.”
NEWS BRIEFS Benefitfocus
enhances its
CAC Specialty
collaborates on
tech platform real-time analytics
Benefitfocus has upgraded CAC Specialty has partnered
its technology platform, which is designed with Liberty Advisory Group to create a
to reduce administrative burden and data analytics platform that allows clients
streamline health plan enrollment. Based to analyze real-time information to make
on feedback from the benefits community, better risk and financing decisions. The
the latest enhancements include mobile app platform will also streamline legal processes
improvements to make enrollment easier; and provide AI-powered document analysis.
upgrades to the Smart Moments console Cybeta, a cyber data-science company
to allow administrators to easily create recently spun out of Liberty Advisory Group,
and send separate emails, SMS and push will enhance the platform with its predictive
messages to their employees; and expanded Threat Alpha and Threat Beta metrics, which
imputed income configurations to include calculate the financial and business impact
child and dependent life benefits. of a cyberattack on an organization.
14 www.ibamag.com
14-17_Tech update-SUBBED.indd 14 5/06/2020 3:16:11 AM14-17_Tech update-SUBBED.indd 15 5/06/2020 3:16:13 AM
UPFRONT
TECHNOLOGY UPDATE
Q&A
Rising to meet online
Laird Rixford
CEO
insurance demands
INSURANCE
TECHNOLOGIES How has the COVID-19 pandemic affected consumer rating because consumers have changed
CORPORATION (ITC) their buying methods, and traditional lead generation
online insurance sales?
Since the start of shelter-in-place directives in mid- doesn’t work like it used to.
March, more consumers are going online to do their
Years in the industry insurance policy shopping. These are consumers who How can insurance agencies keep online
24 previously may have called an agent or stopped by their customers engaged?
office to get a quote. This is clear in our data, which
Fast fact Insurance agencies need to make sure their website is
shows that while agent-quoted policies have gone down
Rixford first began designed to be mobile-first. When we look at the traffic
below normal levels during the pandemic, online quote
to the more than 6,000 websites we host, 78% of that
working for ITC in 1996 requests were 22% above normal levels.
traffic is on a mobile device. Two-thirds of all quotes
at the age of 19 as a Historically, the online insurance shopping
done on our online rating platform are done using a
network administrator experience has not changed much since InsWeb in
mobile device. If the website is not mobile-friendly,
1999, one of the first websites to provide comparative
consumers will not stay. They will leave for a competitor
quotes online. Thanks to companies like Amazon,
that does offer a mobile-friendly website.
Netflix and Uber, consumers today expect a lot more
from their online experience, including when buying
insurance. The question is, will incumbent insurance With insurance technology advancing, how
carriers and agencies rise up to meet this demand, can insurance firms show that their products
or will they fall further behind as insurtechs race to are still being sold by humans who care?
provide the online insurance shopping experience Start by mapping the customer journey. Identify
consumers want? the parts that can’t be automated and focus on
making those touchpoints the best they can be. It’s
What does ITC’s TurboRater do for insurers? also possible to show how you care in automated
TurboRater reduces data entry for independent agents touchpoints. Create messages that include empathy
and brokers when entering policy information to and add personalization to the automation, show
generate a comparative quote. Insurers can add their your people by using their name and email address
rates to TurboRater for their appointed agents to rate as the sender, add testimonials to your website and
them with every policy. Being on TurboRater makes the automated messages, and include pictures of your
insurer more competitive because they get quoted with people instead of stock photography on your website.
every policy, as agents don’t have to go to them directly Don’t try to fake it. Stay true to your values and brand
to get a rate. Insurers also need to be focused on online and be authentic.
Brit and Google Hyperion X Sapiens upgrades
to launch digital platforms see underwriting
Lloyd’s syndicate spike in demand software
Global specialty insurer and Hyperion X, Hyperion Sapiens International
reinsurer Brit is teaming up with Google Insurance Group’s data analytics and digital Corporation has rolled out a new version
Cloud to launch Ki, the first fully digital, delivery business, has seen record demand of its underwriting software, Sapiens
algorithm-driven Lloyd’s syndicate. A as the market reacts to the COVID-19 UnderwritingPro for Life & Annuities.
‘follow-only’ syndicate, Ki aims to reduce pandemic. In high demand are digital trading Version 11 of the software offers a new
the amount of time and effort needed platform Tepfin X, which allows banks and reinsurance interface to facilitate data
for brokers to place follow capacity. Its brokers to obtain quotes from across the transmission to reinsurers, enhanced
algorithm will evaluate Lloyd’s policies and structured credit insurance market, and underwriter notes for a complete audit
automatically quote for business through xTrade, Hyperion X’s digital marketplace, trail, and annuity suitability to ensure
a digital platform. It will follow several which is expected to deliver $100 million in fiduciary responsibility, along with MIB
nominated lead syndicates, including Brit, premium throughput in 2020. To address coding improvements, information banner
and will offer brokers a line on every risk in the increased demand, Hyperion X has enhancements, security advances and
the selected classes led by these markets. launched upgrades for both platforms. greater configurability.
16 www.ibamag.com
14-17_Tech update-SUBBED.indd 16 5/06/2020 3:16:19 AM14-17_Tech update-SUBBED.indd 17 5/06/2020 3:16:20 AM
PEOPLE
INDUSTRY ICON
CHAMPIONING THE
PUBLIC SECTOR
Sue Coates brings decades of experience and enthusiasm for public
entities to her role as president of Trident Public Risk Solutions
SOME PEOPLE stumble into insurance the acquisition, it became a nationwide knowledge of the marketplace,” Coates says.
and discover that it’s where they’re meant opportunity,” says Coates, who held a variety “My goal is to meet these needs in the best
to be. Such was the case for Sue Coates, who of roles before being named president of way possible, grow our business and be that
started her insurance journey 25 years ago Trident in 2017. sustainable marketplace for public entity
with an entry-level, service-oriented role at Today, her top goal for the organization buyers over the long term.”
an insurance agency near her hometown. is to ensure Trident is the best insurance
Currently the president of Trident Public provider it can be for all stakeholders. For Not an average exposure
Risk Solutions, Coates spent the first decade employees, Coates wants to pass along the Because governmental organizations work
of her career in service, sales and managerial excitement she has for the public entity differently than standard commercial busi-
roles before transitioning to underwriting, space to her staff. For policyholders, she’s nesses, insuring the public entity space
where she was introduced to the public
entity specialization that would come to
define her insurance career. “There are a lot of different types of insurance
“The transition to underwriting was
pivotal for me, as it gave me an opportu- that public entity organizations purchase, so
nity to advance professionally, but to do so
at a rapid pace while applying my skills in a to be an underwriter for that marketplace, you
dynamic environment,” Coates says. “And I
really enjoyed this specialized niche.”
have to have a good base of experience to help
Entering this new space gave Coates
an open runway to learn as much as she
them. It can’t be just one size fits all”
could and apply that knowledge in her
work. It also provided her with an oppor- focused on delivering value through prod- requires specialized know-how. Every city
tunity to be recognized for what she could ucts and services aimed at public entities’ and town is unique and has differing needs,
deliver not only to agents and policyholders, unique risks. Finally, for agents and brokers, based on the state where they’re located.
but also to the organization. In 2008, she wants Trident to provide valuable exper- There are also certain expectations and func-
Massamont Insurance Agency, the public tise that they might not have in-house. tions that public entities have to provide to
entity specialist where Coates worked at the “We are a knowledgeable group of profes- their constituents that are governed by regu-
time, was acquired by Argo Group’s Trident sionals who have over 100 years of combined lations and legislation. That means insurance
Insurance Services unit, which later became public entity experience, so we can deliver providers like Trident have to become experts
Trident Public Risk Solutions. value to agents – not just in the products in public entity administration to ensure that
“It was a small regional firm, and with and services that we provide, but also in our they’re providing products and services that
18 www.ibamag.com
18-20_Industry Icon-SUBBED.indd 18 5/06/2020 3:32:51 AMPROFILE
Name: Sue Coates
Title: President
Company: Trident Public Risk
Solutions
Based in: Springfield,
Massachusetts
Years in the industry: 25
www.ibamag.com 19
18-20_Industry Icon-SUBBED.indd 19 5/06/2020 3:33:05 AMPEOPLE
INDUSTRY ICON
actually meet the needs of their clients. oped after Trident witnessed a gap between
“There are a lot of different types of workers’ compensation and health insurance TRIDENT PUBLIC
insurance that public entity organizations that was falling to individual firefighters RISK SOLUTIONS
purchase, so to be an underwriter for that to cover. AT A GLANCE
marketplace, you have to have a good base of “We are always scanning the horizon for
experience to help them,” Coates says. “They areas of gap – what’s something that your
really partner with their agents, and then public entity is having to deal with that might
their agents partner with us to make sure not fit within a traditional insurance solu-
that we are meeting those needs. It can’t be tion?” Coates says.
just one size fits all.” The company has also released a suite of OWNERSHIP
A lifelong learner, Coates is dedicated to cyber and data compromise insurance solu- Formerly part of Argo Group, Trident
making sure her team stays on top of devel- tions tailored for public entities and has was recently acquired by Paragon
opments in each state, as well as the risks refreshed its entire suite of coverage forms Insurance Holdings
that public entities face. Public schools or for its first-party lines, including improved
local law enforcement, for example, face enhancements that recognize the unique
many responsibilities, and municipalities challenges of public entities.
“We are always scanning the horizon for areas
of gap – what’s something that your public CLIENTS
entity is having to deal with that might not fit Serves more than 2,000 municipalities,
counties, public K-12 school districts,
within a traditional insurance solution?” community colleges, public districts
and risk-sharing pools
continue to be challenged by social inflation, There’s more to come for Trident in the
Coates says. Many public entities are rising near term, too. At the beginning of May,
to the challenge by adopting enterprise risk Paragon Insurance Holdings completed its
management strategies and implementing acquisition of Trident from Argo Group,
best practices around their risk management kicking off the next chapter in both Trident’s
structure with the help of Trident. In addi- history and Coates’ career. She says her team
tion to insurance solutions, the company is excited and looks forward to expanding
provides tailored risk control services to its level of public entity specialization while DISTRIBUTION
assist every insured, from small entities continuing to bring services to its policy- Operates through a distribution network of
that need risk management resources to holders. This deal will bring Trident that national brokerages and local agencies
large municipalities that have dedicated risk much closer to its customers, Coates says,
managers who are continually involved in allowing it to keep delivering on its commit-
crafting risk management strategies. ment to public entities, and will strengthen
the team’s partnerships with insureds via
Innovating in the public sphere agents and brokers.
Just because Trident already has a robust “I’ve been able to do my best work through
product and service lineup doesn’t mean it’s my career by having an alignment around
skimping on innovation. One of its recent purpose and the motivation and empower- RATING
offerings is an insurance enhancement to ment to go do the work,” Coates says. “That’s Boasts a rating of A- (Excellent) from A.M.
help firefighters cover elective procedures for what we have, and those are the tools to make Best and A- (Strong) from Standard & Poor’s
injuries received on duty, which was devel- everything else happen.”
20 www.ibamag.com
18-20_Industry Icon-SUBBED.indd 20 5/06/2020 3:32:56 AMUPFRONT
GOT AN OPINION THAT COUNTS?
Email iba@keymedia.com OPINION
The value of
drone images are not fully capable of
capturing damages present at a property, but
the accuracy of such images has already been
established. A virtual imagery system known
going virtual
as Eagleview has long been the industry stan-
dard for measuring properties among both
contractors and insurers. Eagleview takes
high-resolution aerial images of properties
that are so comprehensive they can be used
to measure the pitch of a roof and determine
Despite getting a bad rap from plaintiffs’ attorneys, its size. In addition, in virtual claims handling,
virtual claims handling has been a valuable tool in the images are taken in much closer proximity
than aerial images. The details of any existing
the time of COVID-19, write Susan E. Egeland and damages are clearly visible.
Sara E. Inman With every new technology, there are
always some hiccups, and some people are
hesitant of change. For example, Rhode Island
P&C INSURERS are beginning to integrate then reviewed by a licensed adjuster. This is requires insurers to use licensed adjusters
drones and other means of virtual claims especially helpful when the property is not to physically inspect damages for claims
handling as part of their routine property easily accessible immediately following a over $2,500, and both Oregon and Vermont
inspections. But in litigation, virtual claims catastrophe because the city is shut down or have issued directives to auto insurers to
handling is unfairly getting a bad rap from the property is unsafe or literally under water. avoid over-reliance on virtual adjusting. But,
plaintiffs’ attorneys, who try to pass it off as Hurricane Harvey in 2017 is a perfect example through experience and counsel, insurers will
solely a cost-cutting measure by insurers. of when virtual claims handling proved to be perfect the use of virtual claims handling.
In actuality, virtual claims handling works a valuable resource to bring immediate reso- Virtual claims handling should be an accepted
to the benefit of both the insured and the lutions to many claims filed simultaneously means for handling property inspections.
insurer because it allows an insurer to handle under unsafe conditions. Overall, the skepticism regarding virtual
a claim immediately without compromising
accuracy. Previously, the typical property
inspection for a claim followed this general “The skepticism regarding virtual property
procedure: The insured reports the claim,
the inspection is scheduled, and the adjuster
inspections is simply unwarranted. Virtual claims
physically travels to the loss location and
performs an in-person inspection of the
handling is the claims handling of the future”
property, which includes photographing the
damaged areas. For a wind or hail claim, this Moreover, the recent COVID-19 pandemic property inspections is simply unwarranted.
usually requires the adjuster to get on the roof has shown how important it is for companies Virtual claims handling is the claims handling
of the property to inspect the damage. and people to be able to rely on technology to of the future, and insureds are fortunate if
While every insurer strives to schedule an operate remotely. Major metropolitan areas their insurer is one of the carriers leading
inspection promptly after a claim is reported, have issued shelter-in-place policies to mini- the transition. This has become even more
the ability to schedule inspections depends mize in-person contact. Even though such apparent during the COVID-19 pandemic,
on having adjusters in the area available to policies are gradually lifting, cities across the when insurers remain legally obligated to
perform the inspection, as well as conditions country are still practicing social distancing. conduct reasonable investigations under
safe enough for the adjuster to do the job. Under such circumstances, insureds might specific timetables.
When a catastrophe hits, finding an available not want adjusters to come to their prop-
adjuster can be extremely difficult, given the erty to perform an inspection. An insurer Susan E. Egeland and Sara E. Inman are attorneys with Faegre
influx of claims filed. that has virtual claims handling capabilities Drinker’s Dallas-based insurance team. As experienced litigators,
With virtual claims handling, rather can use drones to capture images without especially in complex insurance
than waiting for adjuster availability for an any in-person contact. Having this flexibility disputes, they have recently
represented insurers in property
in-person inspection, a drone can be sent to allows claims to be handled promptly, even damage disputes and COVID-19
a property and controlled remotely to capture under the most unusual circumstances. coverage issues.
images of the damage. These images are Plaintiffs’ attorneys might argue that
www.ibamag.com 21
21_Opinion-SUBBED.indd 21 5/06/2020 2:58:39 AMYou can also read
