Insurance Journal Magazine

Transcription

MARCH 5, 2012 | VOL. 90, NO. 5
WEST REGION
WEST
N8
On The Cover
Special Report:
Auto and Home
Inside This Issue
Sharing Economy Calls for
Insurance Innovation
March 5, 2012 • Vol. 90, No. 5 • West Region
10
NATIONAL COVERAGE
N8 Special Report: Auto and Home
Sharing Economy Calls for Insurance
16
WEST COVERAGE
N18
N12
IDEA EXCHANGE
8 Smartphone Proof of
Insurance Bill for California
28 You Can’t Put a Price on
Benefits of Involvement
8 Nevada Approves Regulations
for Self-Driving Cars
N1 Minding Your Business: Oak
and Schoeffler
Innovation
N12 Closer Look: The Risks of
Cloud Computing
N14 Closer Look: What to Know
About Cyber Liability
Exposures
10 There’s an App for That:
Mobile Phone Quoting
N16 P/C Insurers Face Obstacles on
Road to Hard Market
16 California Earthquake
Authority Kicks Off Second
Marketing Program for
Agents
N18 Spotlight: 5 Things to Know
About Classic Car Insurance
20 Alaska’s Hall Saying Farewell
to Director Post
N19 Spotlight: Group Personal
Excess Liability Gives Added
Protection
26 Insurance Highlights from
Buffett’s 2011 Letter to
Berkshire Shareholders
N21 2012 Hospitality Risks
Directory
4 | INSURANCE JOURNAL-WEST REGION March 5, 2012
N6 Social Media and Employee
Recruiting
N36 Closing Quote: Ladner
DEPARTMENTS
6
9
9
12
14
N2
Opening Note
Declarations
Figures
People
Business Moves
MyNewMarkets
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WEST COVERAGE
Opening Note
Where’s My Hovercraft?
I
f it’s not one thing it’s another. The stock market seems to have stabilized for a while, jobs are being created, albeit slowly, and housing’s not
as bad as it used to be.
In fact, pending home sales in California climbed in January from
December, and were up from a year ago, according to a recent California
Association of Realtors’ report.
Now there’s climbing gas prices.
U.S. gas prices were up nearly 9 percent toward the end of February since
the beginning of the year, according to the Energy Information Agency. Gas
hit an average of $3.65 a gallon in late February, a record for this time of the
year.
According to a survey late last month from Rasmussen Reports, most
Americans think gas will top $4 a gallon in the next few months and most
surveyed think we could even see $5 per gallon. The report shows 55 percent
of Americans think it is at
‘I wonder if they’ll (tax)
least somewhat likely gas
will reach $5 per gallon
hover crafts when we get
or more in the next few
them?’
months.
But instead of wondering what this’ll do to our still-fragile economy, it got me to asking myself:
Where’s my hovercraft?
I attribute that oddball, borderline-zany, thought in part to a comment
from a reader on InsuranceJournal.com. The comment was on a story about
the Washington Senate passing a $100 annual electric car fee to make up for
the lack of gas taxes electric car owners pay.
The reader, going by “Baxtor,” stated: “I wonder if they’ll (tax) hover crafts
when we get them? They don’t use the roads. They’ve been talking about
those since I was a kid.”
They have been talking about hovercraft for a long time.
When I was in grade school in the late 1970s and early 1980s, I
remember my science teacher talking about such possibilities
when we hit year 2000. I had recently seen “Star Wars,” and I
even had plans on how I’d have my hovercar decked out.
I also recall the oil crisis around that time that had the
entire nation questioning its dependence on foreign oil.
As it turns out, 30 years later we’re still calling into question our use of fossil fuels and only now are we starting to turn
to electric vehicles, hybrids and other alternatives discussed so
long ago.
And like Baxtor, I’ll just continue to daydream about my hovercraft.
Don Jergler
West Editor
EDITORIAL
Editor-in-Chief
Andrea Ortega-Wells | awells@insurancejournal
V.P. Content
Andrew Simpson | asimpson@insurancejournal.com
East Editor
Young Ha | yha@insurancejournal.com
Southeast Editor
Michael Adams | madams@insurancejournal.com
South Central Editor/Midwest Editor
Stephanie K. Jones | sjones@insurancejournal.com
West Editor
Don Jergler | djergler@insurancejournal.com
International Editor
Charles E. Boyle | cboyle@insurancejournal.com
ClaimsJournal.com Editor
Denise Johnson | djohnson@claimsjournal.com
MyNewMarkets.com Associate Editor
Amy O’Connor | aoconnor@mynewmarkets.com
Columnists
Catherine Oak, Bill Schoeffler
Contributing Writers
John Allen, Christopher Bomar, Dave Coons, McKeel Hagerty,
Gerald Ladner, Judi Lamble
SALES
V.P. Sales & Marketing Julie Tinney (800) 897-9965 x148
jtinney@insurancejournal.com
West Dena Kaplan (800) 897-9965 x115
dkaplan@insurancejournal.com
South Central Mindy Trammell (800) 897-9965 x149
mtrammell@insurancejournal.com
Midwest Lauren Knapp (800) 897-9965 x161
lknapp@insurancejournal.com
Southeast Howard Simkin (800) 897-9965 x162
hsimkin@insurancejournal.com
East Dave Molchan (800) 897-9965 x145
dmolchan@insurancejournal.com
New Markets Sales Manager
Kristine Honey | khoney@insurancejournal.com
Classified Advertising (800) 897-9965 x125
classifieds@insurancejournal.com
MARKETING/NEW MEDIA
Marketing Administrator
Gayle Wells | gwells@insurancejournal.com
Advertising Coordinator
Erin Burns | eburns@insurancejournal.com
(619) 584-1100 x120
New Media Producer
Bobbie Dodge | bdodge@insurancejournal.com
Videographer/Editor
Matt Tolk | mtolk@insurancejournal.com
DESIGN/WEB
Vice President/Design
Guy Boccia | gboccia@insurancejournal.com
Vice President/Technology
Joshua Carlson | jcarlson@insurancejournal.com
Design and Marketing Executive
Derence Walk | dwalk@insurancejournal.com
Art Director
Jamie Bethell | jbethell@insurancejournal.com
Web Developer
Jeff Cardrant | jcardrant@insurancejournal.com
Web Developer
Chris Thompson | cthompson@insurancejournal.com
IJ ACADEMY OF INSURANCE
Director of Education
Christopher J. Boggs | cboggs@ijacademy.com
Online Training Coordinator
Barbara Dooley | bdooley@ijacademy.com
ADMINISTRATION
Chairman
Mark Wells
Chief Executive Officer
Mitch Dunford
Accounting Manager
Megan Sinclair | msinclair@insurancejournal.com
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Until it does.
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WEST COVERAGE
News & Markets
Smartphone Proof of Insurance Bill for California
A
Cellphone
Driving
Ban
Nets 27
Violators
in Helena
Police in Helena,
Mont. say they
have issued 27
citations in a little
over a month following a cellphone
ban that went into
effect in January
making it illegal
to use hand-held
electronic devices
while driving or
bicycling within
city limits.
Lt. Steve
Hagen told the
Independent
Record that 24 of
the 27 receiving
tickets pleaded
guilty and paid a
$25 fine.
Hagen says some
drivers pulled
over for violating
the cellphone ban
ended up in drug
arrests or DUIs.
Hagen says some
motorists violating
the ban were let
off with warnings,
including a woman
whose husband
was in the hospital
and she was trying
to make arrangements while driving.
AP
California legislator has introduced a bill to require
auto insurers to issue proof of coverage verification to the mobile electronic devices of insureds if they
request it.
Assembly Bill 1708, authored by Assemblyman Mike
Gatto, D-Silver Lake, would enable a person required to provide evidence of financial responsibility to do so through the
use of a mobile electronic device, according to the bill’s wording.
The bill would amend sections of California’s insurance
and its vehicle codes. The bill states:
“Notwithstanding any other provision of law, any insurer
issuing policies of automobile liability insurance or motor
vehicle liability insurance shall, upon request of either the
named insured or the Department of Motor Vehicles, promptly issue to that person or the department written verification as to the existence of that coverage, and issue, upon the
request of the insured, verification as to the existence of that
coverage, to a mobile
electronic device.”
The bill would also amend Section 16028 of the vehicle
code to read: “The evidence of financial responsibility may be
provided using a mobile electronic device.”
The bill is currently in Assembly, and may be heard in
committee on March 17.
Court Upholds Lawsuit
Against NoCal Hooters
Nevada Approves Regulations
for Self-Driving Cars
A
state appeals court has upheld a class-action lawsuit
filed by servers at several San Francisco Bay area
Hooters restaurants in Northern California.
The 1st District Court of Appeal denied a request by the
restaurants’ owners that the case be settled through arbitration.
The court ruled
that the owners’
employment agreement allowed them
to seek arbitration.
But it agreed with
a lower court that
they waited too long
to demand arbitration.
The lawsuit claims the Hooters’ servers were cheated out
of tip money, forced to purchase their own uniforms and not
given proper lunch breaks, among other violations.
It covers employees who worked at Hooters restaurants in
Fremont, Campbell and Dublin and the now-closed Hooters
in San Francisco.
N
Copyright 2011 Associated Press. All rights reserved.
Copyright 2011 Associated Press. All rights reserved.
evada is becoming the first of the U.S. states to regulate
self-driving vehicles on its roadways.
The state’s legislative commission has approved regulations
that were vetted by
car manufacturers,
insurance companies, law enforcement officials and
others.
Nevada
Department of Motor
Vehicles Director
Bruce Breslow says
the motor vehicles department is now developing licensing
procedures for companies that want to test self-driving cars
in Nevada.
Gov. Brian Sandoval test-drove a self-driving Toyota Prius
in July. The car being developed by Google Inc. uses radar,
sensors and computers that allow the vehicle to drive itself,
though human drivers can override the autopilot function.
Breslow says self-driving test cars will use red license
plates.
Declarations
RAND Health Care
Dog Grooming
Aloha Building Codes
“Our analysis suggests eliminating the individual mandate would sharply decrease
coverage, but it would not send premiums
into a ‘death spiral’ that would make health
insurance unaffordable to those who do not
qualify for government subsidies.”
— Christine Eibner, a RAND Corp. economist
and lead author of a study that shows eliminating
the federal mandate in the new healthcare law that
every individual carry health insurance would
sharply lower the number of people gaining coverage, but would not dramatically increase the cost of
buying policies through new insurance exchanges.
“I couldn’t believe what they did. I started
crying because this is our baby, too, you
know.”
— Gladys Kapuwai, who dropped off her
dog Dodo for grooming at the Petco store in
Kaneohe, Hawaii in July, said that the pet was
returned with its ear cut off. She is one of two
dog owners who filed a lawsuit claiming their pets
were mutilated while being groomed at the pet
store.
“This bill would have undermined key
components that are essential to an effective
state building code regime…”
— Wanda Edwards, Insurance Institute for
Business & Home Safety’s director of code development. IBHS opposed a bill to abolish Hawaii’s
State Building Code Council. It was voted down by
state Senate.
Successor Liability
“The threat of successor liability even if a thorough investigation is undertaken prior to a
transaction has had a significant chilling effect on mergers and acquisitions.”
— U.S. Chamber of Commerce and dozens of other trade groups wrote a letter to law enforcement
officials laying out the guidance they want regarding the Foreign Corrupt Practices Act. The groups also
asked what circumstances a company is liable for past actions by another company it acquires.
Figures
4
$
Million
That’s how much a U.S.
District Court judge in
Iowa has ordered the
operators of a popular
pornographic website in
California to pay for copyright infringement to an
Iowa-based adult film company — a ruling that should serve as a
deterrent to others who pirate content online, a lawyer said.
$100
Is how much
Washington car
owners would
pay annually under a bill
moving its way through
state legislature. The state
Senate has passed a bill to
charge electric car owners an annual fee to compensate for the lack
of gas taxes they pay. It is now in the House.
25
$
Million
That’s what an
Oregon jury
has awarded
in punitive
damages in the
death of a Salem smoker
whose family sued tobacco
company Philip Morris USA over its
low-tar cigarettes.
1.5
$
Million
Is the amount of a claim filed against a
Northern California probation official by
one of his deputies who said he sexually
assaulted her. The official has been placed
on paid leave, but says the allegations are
false and the claim is an attempt to extort
money from the county.
March 5, 2012 INSURANCE JOURNAL-WEST REGION | 9
WEST COVERAGE
News & Markets
There’s an App for That: Mobile Phone Quoting
By Don Jergler
D
on’t be surprised if in the nottoo-distant future on a television
commercial you see Flo, adorned in her
white apron, drop her price scanner
and pick up a smartphone, on which
she takes a picture of a driver’s license
and a VIN number on a car and gets a
quote for auto insurance.
Yeah, Progressive Corp.’s got an app
for that. The app, or application, is
called Mobile Photo Quoting. It was
launched for the iPhone in February,
and the company is set to roll out a
version for Droid-based phones in the
next few months.
“Ultimately it makes the process of
quoting auto insurance easier,” said
Matt Lehman, the mobile business
leader at the Mayfield Village, Ohiobased insurer.
Mobile quoting has been around for
nearly two years, but it’s been an arduous adventure, in which users have
had to manually type in loads of information to get a quote.
“Getting
‘Ultimately it makes the all that data
process of quoting auto in though a
small device
insurance easier.’
can be laborious,” Lehman said.
That’s were San Diego, Calif.-based
Mitek Systems Inc. comes in. Mitek is
the firm that introduced the software
that enables users to deposit checks
into their bank accounts by photographing them with their smartphones.
Some of Mitek’s clients include Chase
Corp., Bank of America and PayPal.
Together with Progressive, Mitek
created an app that enables users to
take a picture of their driver’s license,
and their vehicle identification number
(VIN), and the app then fills several
pieces of information into a form on
the way to generating an auto insurance
quote.
The VIN scan prefills the year, make
and model, and even
sub model, of the car.
A scan of the driver’s
license fills in the
first and last name,
address, gender and
license number of
the licensee.
“A couple more
screens and they’re
provided with the
rate, and they can
buy that rate on
the device if they
so choose as well,”
Lehman said.
Just how much time the app saves
its users depends on them.
“We’ve seen some people who can
literally get though it in just a couple
of minutes,” he said.
Aside from mobile quoting, Mitek,
under its Systems Insurance Solutions
division, is offering apps such as:
Mobile Photo Payment enables
enrollment in electronic payment
through checking accounts or direct
deposit for a claim reimbursement
transfer by allowing users to take
a photo of a blank check; Mobile
Photo Claims streamlines the claims
process by enabling customers and
agents to take photos of a customer’s
driver’s license, insurance card and
license plate; and Mobile Document
Capture & Send allows policyholders
and agents to take a photo of a document and send it as a PDF to an email
address or fax number.
The latest app is something that
Progressive is out in front with now,
but other auto insurers, and other
property/casualty insurers, may be hot
on their trail.
“We do know that all the major
carriers have mobile strategies,” said
James B. DeBello, president and CEO
of Mitek. “We know that because we’re
talking with them.”
He wouldn’t offer details on who
Mitek is in talks with, nor would he
discuss details of what type of insurance-related apps are in development.
“We’re changing the consumer paradigm,” DeBello said. “We’re making it
easier for the consumer to engage with
the carrier, and we’re making it easier
for the carrier to engage with the consumer. So it’s a win-win.”
He added, “As these big insurance
companies continue to grow their business, they are working on engaging
the next generation of consumer. We’re
enabling that to be done more efficiently.”
Such apps are likely to continue to
shape how the insurance industry markets itself, said Ellen Carney, a senior
analyst for eBusiness and channel stratcontinued on page 18
WEST COVERAGE
People
John Rossetti
Jammie Nam
Mike Palotay
John Kelly
Los Angeles, Calif.-based Poms & Associates Insurance
Brokers Inc. has named John Rossetti vice president of
the employee benefits group in the firm’s Albuquerque, N.M.
office.
Rossetti was previously an account executive at Blue
Cross Blue Shield of New Mexico, and a director of sales for
Lovelace Health Plan.
Poms & Associates offers commercial insurance, employee
benefits, corporate wellness, personal lines, and risk management and risk control. Poms has offices in California,
Colorado, New Mexico and Washington.
Walnut Creek, Calif.-based Heffernan Insurance
Brokers has hired Jammie Y. Nam in its Orange County
office as vice president of employee benefits.
Nam has nearly 20 years’ experience in the employee benefit industry as an underwriter and consultant.
Prior to Heffernan, she worked for an international consulting firm and two health insurance carriers. She specializes in alternative funding.
Heffernan, which provides insurance and financial services
products to businesses and individuals, has several offices in
California, as well as Portland, Ore., St. Louis, Mo., and New
York, N.Y.
NAS Insurance Services named Michael Palotay as
senior vice president of underwriting.
Palotay has been with Encino, Calif.-based NAS since
2009, managing production and strategy for the NAS underwriting department. He joined NAS as assistant vice president to develop a technology and cyber liability product.
Palotay began his insurance career at American
International Group as a senior insurance underwriter.
NAS is an independent underwriting manager of specialty
insurance with full binding authority to underwrite on
behalf of Lloyd’s of London.
San Mateo, Calif.-based Worldwide Broker Network
has expanded their membership to include associate members.
Until now WBN membership has always been limited to
property/casualty and employee benefits brokers.
The new members are: John Kelly, CEO, Hanover
Stone Partners, global risk management services; John
Dempsey, CEO, Dempsey Partners, global forensic
accounting services; James R. Woods, general counsel,
Dewey & LeBoeuf LLP, global insurance regulatory/compliance services; John Wepler, CEO, Marsh Berry, global
insurance brokerage/agency management and merger and
acquisition services.
WBN is comprised of independent insurance brokers
and employee benefits consultants, and has 522 offices in
85 countries.
Wahington-based insurance software developer
Vertafore promoted Mark Craig to senior vice president
of product management and Bruce Winterburn to vice
president of industry relations.
Craig is responsible Vertafore’s product strategy. He
joined Vertafore in 2011 as vice president of agency management systems product management. Before Vertafore,
he spent 13 years at Oracle.
With more than 20 years of experience in the insurance
software industry, Winterburn will focus on Vertafore’s
alliances with the industry.
Brian Janes and Vicki Snow have joined Tustin, Calif.based managing general agent Yates.
Janes and Snow, who become producers with Yates,
spent the last two years as vice presidents of another
California wholesale brokerage.
Yates & Associates was purchased last year by a venture
capital group, with founder Jim Yates remaining on under
contract as chairman. The MGA was renamed to Yates.
Insurance
with values.
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Flood*
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what we do. That’s why we’re ready to act quickly when catastrophe strikes.
With emergency response plans, exceptional customer service and the
financial resources to keep our promises.
Like you, we strive to be the best in our business. It’s one of the Universal
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HOME
FLOOD
* Written through National Flood Insurance Program.
Universal North America Insurance Company’s Financial Strength Rating of A- (Excellent) has been reaffirmed by A.M.
Best. The company’s Outlook is Stable. Insurance products are issued and underwritten by one of Universal North America’s
insurance companies: Universal North America Insurance Company or Universal Insurance Company of North America. Issuance of
coverage is subject to underwriting review and approval. Products may not be available in all states. © 2012 Universal North America.
WEST COVERAGE
Business Moves
was essential to
accommodate the
needs of their clients
throughout all of
Arizona including
territories such as
Phoenix, Tucson and
Kingman, according
to Sams.
The company also
has its sights set
on further western
expansion.
Veracity, Stratus
Pleasant Grove, Utah-based Veracity
Insurance Solutions LLC has acquired
Stratus Insurance Services Inc.
Of particular interest to Veracity was
Stratus’s collective experience in program management. The Stratus team
brings decades of expertise to Veracity.
Stratus members joining Veracity officers include Daryle Stafford as president and CEO, Chris Van Leeuwen
as vice president of sales and Melanie
Allen as vice president of operations.
The enhanced Veracity product
line now includes complete Program
Management Services, small business
insurance, wholesale brokerage, vitamin and supplement insurance, outdoor recreation insurance and a host of
specialty and general liability services.
Veracity specializes in the placement
of programs, general liability and product liability insurance.
Sams & Associates
Sacramento, Calif.-based Donald K.
Sams & Associates Inc., an independent claims adjuster has expanded into
Arizona.
The expansion into the southwest
Apheta, O’Riordan
San Diego, Calif.based O’Riordan and
Associates, a strategic
financial planning
and insurance firm,
announced it has
merged with Apheta,
a financial and insurance planning firm.
Michael O’Riordan, founder and
president of O’Riordan and Associates,
brings more than 25 years of experience
delivering wealth preservation tools.
Apheta is an advanced planning firm
based in Southern California. Apheta
has a strong presence and reputation in
the professional sports and entertainment industry.
Southwest Region will be led by
Howard McClure, and will include
Colorado, Kansas, New Mexico,
Oklahoma and Texas.
West Region will be led by Sam
Elliott, and will include Arizona,
Hawaii, Nevada, Southern/Central
California and Utah.
Midwest Region will be led by
John Meder, and will include Illinois,
Indiana, Iowa, Michigan, Minnesota,
Missouri, Nebraska, North Dakota,
Ohio, South Dakota and Wisconsin.
Northeast Region will be led by
Pete Gilbertson, and will include
Connecticut, Delaware, Massachusetts,
Maine, New Hampshire, New Jersey,
New York, Pennsylvania, Rhode
Island and Vermont.
Mid-Atlantic Region will be led by
John Meehan, and will include District
of Columbia, Kentucky, Maryland,
North Carolina, South Carolina,
Virginia and West Virginia.
South Region will be led by Tom
Longhta, and will include Alabama,
Arkansas, Florida, Georgia, Louisiana,
Mississippi and Tennessee.
Wells Fargo Insurance writes $20
billion of premiums annually in property, casualty, benefits, international,
personal lines, and life products.
Wells Fargo
Wells Fargo Insurance — part of
Wells Fargo & Co. — announced a
new regional structure for its insurance brokerage and consulting division.
Previously operating with 15 regional offices, the business is now based
upon seven regions, with approximately 160 local offices. Serving the
insurance needs of business banking,
middle market, large corporate and
high net worth clients, the group is
led by Kevin Kenny, executive vice
president with Wells Fargo Insurance.
Northwest Region will be led by
Rich Lane, and will include Alaska,
Idaho, Montana, Northern California,
Oregon, Washington and Wyoming.
A.M. Best
Rating agency A.M. Best’s London
office said it has obtained the necessary approvals to establish a branch
operation in the Dubai International
Financial Center in Dubai, UAE.
The new office will serve Middle
East-North Africa, South and Central
Asia.
The company said rating analytics
will continue to be performed by teams
based in London and Hong Kong.
Vasilis Katsipis has been appointed
general manager for market development, and will be responsible for
the office in Dubai reporting to Nick
Charteris-Black, managing director,
market development A.M. Best –
EMEA.
at 1,284 feet,
ACE insures progress
in balance,
ACE insures progress
Property & Casualty Accident & Health Life
To maintain harmony between industry and the environment, it takes the right
people, experienced underwriting, a strong balance sheet and a flexible approach.
These are the strengths of ACE that allow us to customize environmental risk
solutions for your specific needs. We take on the responsibility of your risks
so that you can take on the responsibility of making things happen. We call this
insuring progress. Visit us at acegroup.com/us
© 2012 ACE Group. Coverages underwritten by one or more of the ACE Group of Companies. Not all coverages available in all jurisdictions. ACE, ACE Logo and insuring progress are registered trademarks of ACE Limited.
WEST COVERAGE
News & Markets
California Earthquake Authority Kicks
Off Second Marketing Program for Agents
T
he business of selling earthquake
insurance to homeowners may
have just gotten a bit easier.
The California Earthquake Authority
has launched its annual “Marketing
Value Program,” in which the quasiprivate earthquake insurer encourages
agents to sign up to receive at least 200
pieces of direct mail marketing preprinted with agents’ names to send to
potential clients.
This is the program’s second year.
Last year’s program saw more than
4,500 agents participate and 10,000
policies sold as a result of the program,
according to CEA.
The intent is for the mailers, which
are available in English, Chinese and
Spanish, to get into the hands of 5,000
agents per round over two rounds, said
Glenn Pomeroy, CEO of Sacramento,
Calif.-based CEA.
Each agent signing up for the program receives 200 pieces of mail to
send to homeowners who could be
prospects for earthquake insurance. The mailers are postmarked by CEA, and
custom printed
with the
agent’s
name.
An additional 100 mailers each are
821,000 policies in force, Pomeroy said,
available in Chinese and Spanish.
adding, “That’s more policies in force
Agents must first visit
than since 9/11.”
EarthquakeAuthority.com, click on
“Here at the California Earthquake
“Register for 2012 MVP,” and fill out a
Authority, we’re in a race against time,”
form.
Pomeroy said. “The scientists have
For the first round of mailings
made it clear that it’s not if the next
agents must be employed or appointed
big earthquake’s going to strike, it’s
by participata matter of
‘As much as we’re in a race
ing insurers.
when.”
A second
He cited
against time, we’re in a battle
round, which
a study from
against indifference too.’
requires
the Working
agents to be employed or appointed
Group on California Earthquake
by participating insurers, and requires
Probabilities, showing there is a 99.7
agents to take a class on CEA’s earthpercent probability of a 6.7 magnitude
quake products, puts another 200
earthquake striking somewhere in
mailers in the hands of those agents.
California within the next 30 years.
Mailers in the second round will be
That’s where the need for marketwrapped around Great California
ing and awareness programs come in,
ShakeOut mailers that go out each year
Pomeroy said, adding that the potenand they will be co-promoted with
tial catastrophe isn’t the only obstacle
that popular annual event. Last year’s
faced by agents selling earthquake
Great Shakeout event drew more than
insurance products.
8.6 million participants. This year’s
Less than 12 percent of California
Great California ShakeOut is set for
homeowners have purchased earthOct. 18.
quake insurance, according to the
Last year there were three rounds of
Insurance Information Network of
mailings. The number of rounds this
California.
year has been narrowed to two to sim“As much as we’re in a race against
plify things, Pomeroy said. Also new
time, we’re in a battle against indifferthis year, in select areas an additional
ence too,” he said.
100 mailers are avialable to send to
And there’s some added incentive for
renters.
those signing up.
Last year CEA’s MVP program more
The first 15,000 policies sold and
than doubled the amount of agents
reported through MVP will qualify
trained to sell through CEA, accordpeople to receive an earthquake starter
ing to the organization. In 2010, from
kit, which includes a backpack with
January through the fall, CEA trained
putty to help secure things, picture
1,300 agents. In 2011 they trained over
hooks and television straps. The first
3,000 agents.
5,000 agents who sign up will get their
“We recorded an additionown starter kit.
al 10,000 new policies issued
While it’s going, the program will be
as a result of that program,”
supported by a marketing campaign on
Pomeroy added.
television, in newspapers and on the
At the end of 2011 they had
internet.
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Mobile phone quoting, continued from page 10
pass along to their potential customers. Such
egy at Cambridge, Mass.-based Forrester
apps provide a “brand halo,” he said.
Research. The group has been tracking an
“Consumers today want convenience,
upswing in insurance-related apps, and sees
they want speed and they want service,” he
significant growth in that area.
added. “The brand halo provides those capa“It’s something we’ve been talking about
bilities as part of your brand offer. And we
for a while,” Carney said. “When you think
do it in a way that conforms to the lifestyle
about the future of mobile, of insurance, this
of this new conis really the direction
‘Our goal is making it easier sumer habit.”
we see it going.”
for the customer to work
To cater to this
Carney first saw this
sort of app developed
with us, and that includes new lifestyle and
habit,
for a U.K. insurance
giving independent agents consumer
Progressive’s
aggregator, and that
mobile technology to work Lehman said the
app allowed users to
with the customer.’
insurer spent
take a picture of their
a great deal of
license plates and have
time, money and resources on developing
some information filled in. However, there
Progressive’s mobile offerings.
was still a great deal of typing to do first,
“We have made a significant IT investand that particular app never took off, she
ment around mobile,” he said. “We think
said.
it’s a very significant channel for us going
According to DeBello, what apps like
forward.”
Mobile Photo Quoting provide for the insurHe declined to state how many have
er is beyond just the convenience they can
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downloaded the app, only that “we’re happy
with the number of people who have used
it and downloaded it on iPhone.” He also
declined to state how much Progressive
spent on developing the app, or how much
the company is laying out going forward for
apps and other mobile technologies.
Lehman equates being ahead of the game
with Mobile Photo Quoting as something
akin to being the first person to have the
wheel.
“Being first to market with image capture
is in the same vein as being the first to market with a website … it’s a pretty serious
commitment on our part,” Lehman said. “We
think it’s such a crucial part of our future
that every business area, every IT area, is
incorporating this as part of their mobile
strategy.”
Some of these new developments include
app offerings for independent agents themselves.
Progressive recently launched the ability
for agents to provide a quote, or do claimsrelated activities though the iPad in a foragents-only portable platform. The FAO
app started in 2011, and Progressive recently
launched a quote-and-buy capability in
January. It will be available for Android tablets later in March.
Lehman said Progressive’s goal in creating
the Mobile Photo Quoting app was not to
replace independent agents.
“Our goal is making it easier for the customer to work with us, and that includes
giving independent agents mobile technology to work with the customer,” he said.
“We’ve got 35,000 independent agents that
work with us, and we think that we’re
going to continue to support them with
technology.”
Other Progressive apps are mainly entertainment related, including Superstore
Shuffle, a game where players process customers though a super store to help them
by insurance, and Route-Rageous, a strategy
game in which players route their vehicles
through different paths. There’s even an app
for the Progressive art collection.
And of course, there’s Flo-isims, an app
that plays on notable lines from Flo, the star
of Progressive’s commercials.
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Alaska’s Hall Saying Farewell to Director Post
By Don Jergler
L
inda Hall started as director of
Alaska’s Division of Insurance on
March 3, 2003, and nine-years later
she’s calling it a day as the top authority on insurance in the land of the
midnight sun.
The state has launched a search for a
new director now that Hall will retire.
She plans to stay in the post until
spring.
“I love what I do,” Hall said. “I really
love the job. But it is consuming. I
think to do it the right way it
See more on page 24
takes a huge amount of time
For Hire: Alaska
and energy. I hope I’ve given
Insurance Director
that to the job, but it’s time I
moved on to something a little less
strenuous.”
During Hall’s tenure, the division’s
financial examination section received
an outstanding reaccreditation review,
affirming the state’s ability to analyze
the financial solvency of insurers,
according to the division, which currently licenses more than 39,000 producers.
The 51-person division is part
of Alaska’s Department of
Commerce, Community and
Economic Development.
Hall, a long-time resident of
Alaska, had 18 years’ experience
as a commercial broker before
becoming director. Before entering the insurance world, Hall
was a high school English teacher in
Michigan.
Hall is chair of the western zone of
the National Association of Insurance
Commissioners (NAIC), board chair
of the National Insurance Producer
Registry (NIPR) and she serves on
NAIC’s Internal Administration and
Executive committees. Hall is a past
president of the Alaska Independent
Insurance Agents and Brokers, and she
represented Alaska on the board of
the Independent Insurance Agents &
Brokers of America from 1997 through
2003.
‘I love what I do. I really love
the job. But it is consuming.
I think to do it the right way
it takes a huge amount of
time and energy.’
Hall has had some unique experiences as director, many of which involved
dealing with fraud, she said. But one
of her biggest successes as director
took place early in her tenure as director, around 2003, when Hall and the
state were faced with an insolvency of
Freemont Industrial, a major insurance
continued on page 22
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Hall, continued from page 20
me the critical importance of financial solcompany that had written about a third of
vency of companies that do business in our
the state’s workers’ compensation market.
state.”
And when Freemont was placed into
Maintaining a balance between consumerreceivership, the guaranty fund was not adefriendly regulation and
quate to take over the
‘It’s become difficult
encouraging healthy busipayment of Freemont’s
ness growth has been a
claims.
to know who’s doing
to her department’s
“Consequently we
business in your state. key
success, Hall said.
had an $8 million gap,”
We spend more time
“It’s a balancing act
Hall said.
with attorneys and
between good consumer
Hall and the departprotection and a healthy
ment worked with
interpretation of
marthe state legislature to
products and how we quasi-competitive
ketplace, so you have to
change the assessment
enforce our statutory be constantly aware that
base, an effort that
standards.’
you’re not leaning too far
included soliciting
either way and to keep
early access distributhat balance, because that provides consumtion from some other receiverships to make
ers choice,” she said. “And I think the best
it work so that no “injured worker ever
consumer protection any of us have is to
went without claims payment,” she said.
have choices of places to provide coverage.”
“That’s probably still today to me the bigSo, how has the industry changed in her
gest accomplishment of my tenure in the
nine-year tenure?
position,” she added. “It also emphasized to
Linda Hall
“It’s become much more complex,” she
said, noting that she’s seen more online
insurance sales, more and varying forms of
competition, and products that are becoming increasingly complex.
“It’s become difficult to know who’s doing
business in your state,” she said, adding, “We
spend more time with attorneys and interpretation of products and how we enforce
our statutory standards. I just think the
industry’s become more complex.”
She sees some of that complexity altering
an already changing industry, and not necessarily for the better.
“I think we have a greater, and I’m going
to call it a threat, of federal regulation, federal incursion, into business that has always
been regulated by the states,” she said. “I
think the states have done a good job. I’m a
major advocate of state regulation. I think
Alaskans are not going to get the same service calling a 1-800 number in (Washington)
D.C. as they get calling my office with a
complaint. So I think for consumers, state
regulation is far better, it’s more personal. I
have consumers that call me on my direct
line.”
She added, “I don’t think we can have a
federal regulatory system that works that
well for consumers.”
On the Web
Listen to full podcast of Hall’s interview at
http://www.insurancejournal.tv/.
WEST COVERAGE
News & Markets
For Hire: Alaska Insurance Director
By Don Jergler
W
anted: State Insurance Director. Must
supply your own parka.
Linda Hall, director of Alaska’s Division of
Insurance, is retiring after nine years on the
job, and the state has launched a nationwide
search for her replacement.
Besides working in a place of extended
darkness and chilly temperatures during the
winter, the director post is a job that likely
requires a person who can thrive in the
state’s independent environment and add a
personal touch.
Hall often answers her own phone, and
if she can’t return a call, she personally sees
that a call is returned, from consumers and
businesses, she says.
Even in a small state with a population of
just over 700,000, that’s impressive.
“We’re looking for a clone of Linda,”
said Curtis Thayer, deputy commissioner
of Alaska’s Department of Commerce,
Community and Economic Development.
The insurance department falls under the
purview of Thayer and Commissioner Susan
K. Bell, who have started a search in Alaska
that will soon reach around the nation.
insurance director able to work with Hall
“We realize this is going to have to be not
during a training period, “and maybe walk
only a statewide search, but most likely
with her around Legislature, which adjourns
a nationwide search
on April 15,”
to find a candidate
Thayer said.
Alaska Fun Facts
who can step into her
So what sort
In case you are interested in applying for
shoes,” Thayer said. “We
of qualifications
Alaska’s director of insurance opening, here’s a
are soliciting resumes
must Alaska’s
few facts on the state.
nationwide.”
new director of
As Thayer disinsurance have?
Alaska by the numbers
cussed the search,
“First and fore• Population: 722,718
he was preparing to
most we want
• Housing units: 306,967
personally make a
them to have an
• Homeownership rate: 64.7 percent
trip to the National
insurance back• Median income: $66,521 (U.S. Median
Association of Insurance
ground,” Thayer
is $51,914)
Commissioners spring
said.
• Total number of firms: 68,728
meeting in New Orleans
Actually, prior
• Land area: 570,640 square miles
at the beginning of
to Hall, who was
• Persons per square mile: 1.2 (U.S.
March to talk with
a commercial broaverage is 87.4)
potential candidates
ker for 18 years,
Source: U.S. Census Bureau. Figures are latest
for the office, which is
that wasn’t a job
from Census, but vary from 2007 to 2011.
appointed by the goverrequirement.
nor.
“Since Linda’s
“The goal is to have a list of candidates to
been in the position, it’s been clear to every(Gov. Sean Parnell) fairly shortly, maybe 35
body that that’s a key component to this,”
to 45 days,” Thayer said.
he said.
And the hope is also to have the new
Other attributes of the new director may
be determined in part by Hall, who has
offered to help in the search.
The new director will also have to
be comfortable traveling back and forth
between Anchorage and Juneau, overseeing
51 employees, and will be likely to follow up
on implementing aspects of the 63-page HB
164, which Hall pushed through Legislature
last year. The complex bill cleans up several
of the state’s insurance statutes.
The job, Thayer said, pays about $110,000
a year, “give or take.”
While Thayer and Hall try to discourage the stereotype that “there are igloos
in Alaska” — neither Thayer nor Hall, an
18-year Alaskan resident, have seen one in
the state — they both agree that during
winter months at least the successful candidate has to have a bit of a hardy side.
The coldest day Hall could remember
was 25 below zero Fahrenheit. But that’s not
so bad, she noted, because on that day she
decided to take the day off.
WEST COVERAGE
News & Markets
Insurance Highlights from Buffett’s
2011 Letter to Berkshire Shareholders
By Andrew G. Simpson
W
arren E. Buffett thinks that
among large insurance operations, those owned by his Berkshire
Hathaway are the “best in the world.”
Buffett is chairman of the board
of Berkshire Hathaway, which owns
Berkshire Hathaway Reinsurance
Group, personal lines powerhouse
GEICO and General Reinsurance Corp.
among other insurance operations.
Every year Buffett issues a letter to
shareholders in which he discusses
the economy, investing and the performance of Berkshire Hathaway and its
various companies.
Buffett typically has good things to
say about insurance and his annual letter on 2011 results that was issued on
Feb. 24, 2012, continued that tradition.
He said that while the property/casualty (P/C) industry is suffering losses
overall, his P/C insurance operations
are managing to profit in part because
they are willing to walk away from
business that isn’t adequately priced.
Buffett calls the
‘Insurance has
insurance operations
been good to us.’ “Berkshire’s core operations and the engine
that has propelled” the expansion of
Berkshire Hathaway over the years.
Buffett said that while Berkshire’s
insurers are bound to have underwriting losses from time to time, they have
now had nine consecutive years of
underwriting profits, totaling about $17
billion.
While underwriting profits are welcome, Buffett really values insurance
operations for the float they generate,
money from holding premiums that he
terms “costless capital.”
“Our insurance operations continued
their delivery of costless capital that
funds a myriad of other
opportunities. This business
produces ‘float’ — money
that doesn’t belong to us,
but that we get to invest for
Berkshire’s benefit,” Buffett
wrote.
“And if we pay out less
in losses and expenses than
we receive in premiums, we
additionally earn an underwriting profit, meaning the
Warren Buffett. Reuters/Rick Wilking
float costs us less than nothing.”
whole: We don’t think there is much
Over the past nine years the float
‘Berkshire-quality’ float existing in the
Berkshire has had to invest has
insurance world,” he said.
increased from $41 billion to its current
“In most years, including 2011, the
record of $70 billion.
industry’s premiums have been inad“Insurance has been good to us,” he
equate to cover claims plus expenses.
said.
Consequently, the industry’s overall
Buffett said it’s “unlikely” that
return on tangible equity has for many
Berkshire ‘s float will grow much — if
decades fallen far short of the average
at all — from its current level mainly
return realized by American industry,
because it has already reached an
a sorry performance almost certain
outsized amount relative to premium
to continue. Berkshire’s outstanding
volume.
economics exist only because we have
He said the P/C industry is in a
some terrific managers running some
period of “intense competition” that is
extraordinary insurance operations. Let
causing the P/C industry as a whole
me tell you about the major units.”
to operate at a significant underwritIn his letter to shareholders, Buffett
ing loss. He noted that the country’s
praises the performance of each of
largest insurer, State Farm, which he
Berkshire’s major insurance units.
termed a “well-managed company,” has
The biggest contributor to float
incurred an underwriting loss in eight
is Berkshire Hathaway Reinsurance
of the last 11 years.
Group, run by Ajit Jain, who Buffett
“There are a lot of ways to lose
said has created an insurance business
money in insurance, and the industry
with float of $34 billion and significant
is resourceful in creating new ones,”
underwriting profits, “a feat that no
Buffett quipped.
CEO of any other insurer has come
He said that the value of its insurclose to matching.”
ance float is “a huge reason” he believes
General Re, managed by Tad
Berkshire’s intrinsic business value sub- Montross, is another major Berkshire
stantially exceeds book value.
insurance operation.
“Let me emphasize once again that
According to Buffett, General Re’s
cost-free float is not an outcome to be
strength is that it has been willing to
continued on page 28
expected for the P/C industry as a
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Buffett, continued from page 26
walk away from business where an appropriate premium cannot be obtained.
“[A] good underwriter needs an independent mindset akin to that of the senior
citizen who received a call from his wife
while driving home. ‘Albert, be careful,’
she warned, ‘I just heard on the radio that
there’s a car going the wrong way down the
Interstate.’ ‘Mabel, they don’t know the half
of it,’ replied Albert, ‘It’s not just one car,
there are hundreds of them.’
Buffett said that in the first few years
after Berkshire acquired it, General Re was
“a major headache but [n]ow it’s a treasure.”
The third leg on Berkshire’s insurance
stool is direct writer GEICO, the insurer on
which Buffett says he cut his teeth 61 years
ago. GEICO is run by Tony Nicely, who
joined the company at 18 and completed 50
years of service in 2011.
Buffett said that GEICO’s “much-envied
record” is a result of Nicely’s “brilliant execution of a superb and almost impossible-to-
‘Among large insurance
operations, Berkshire’s
impresses me as the
best in the world.’
replicate business model.”
In Nicely’s 18-year tenure as CEO,
GEICO’s market share has grown from 2.0
percent to 9.3 percent and its premium
volume now tops $15 billion. Buffett said
GEICO’s not through growing.
“There is still more than 90 percent of
the auto-insurance market left for GEICO to
rake in. Don’t bet against [GEICO] acquiring
chunks of it year after year in the future,” he
wrote.
Buffett extols the virtues of GEICO’s
online sales model — and its ubiquitous
mascot — over companies like Progressive
and others that use agents and real people.
“Our lizard has another endearing quality:
Unlike human spokesmen or spokeswomen
who expensively represent other insurance
companies, our little fellow has no agent,”
he wrote.
In addition to its three major insurance
operations, Berkshire Hathaway also owns
a group of smaller companies, the results of
which have in the aggregate been profitable,
according to Buffett.
At year-end, Buffett acquired Princeton
Insurance, a New Jersey writer of medical
malpractice insurance that brings with it
more than $600 million of float.
In summary, Buffett said he believes
Berkshire’s insurance operations are second
to none.
“Among large insurance operations,
Berkshire’s impresses me as the best in the
world,” he wrote.
IDEA EXCHANGE
Agent Association
You Can’t Put a Price on Benefits of Involvement
By Stephanie K. Jones
A
gent advocacy may be the number one
reason independent insurance agents
join professional associations, one veteran
agency owner says, but the benefits of participation are many and varied.
Bob Bramlett, president and CEO of the
Bramlett Agency in Ardmore, Okla., and
chairman-elect of the Independent Insurance
Agents & Brokers of America (IIABA or Big
“I”) has been giving his time and talents to
agent associations on the local, state and
national level since the beginning of his
insurance career in the mid-1970s.
Bramlett says at both the state and national level, association lobbying teams have
had “tremendous success” telling their story
to lawmakers. “We win way more than we
don’t; but we work really, really hard at it,
and we’re really, really good at it,” he says.
While advocacy might be the number one
Classifieds
LEGAL NOTICE
reason agents join the professional association, there are many other reasons agents
get involved. Among them: an excellent
errors and omissions program, which enjoys
high participation by state associations; the
ability to network and interact with other
agents; and educational opportunities.
“You can’t put a price on what it is to get
together — whether it’s a convention or an
education seminar — to be able to network
with your fellow agents and talk about
what’s going on,” Bramlett says.
One major initiative Bramlett will be
working as IIABA chairman is the consumer
agent portal that the Big “I” began unveiling
this year. Bramlett says the CAP is” ramping
up very fast, where we’re actually going to
be doing Internet marketing in a big way to
compete with direct writers. … And that is
happening very, very fast.”
The CAP portal aims to connect independent agents with personal lines insurance
On the Web
Listen to podcasts with Bob Bramlett
on IJTV: http://www.insurancejournal.tv/
videos/6451/ and http://www.insurancejournal.tv/videos/6455/.
consumers at a local level. The actual roll out
of the portal will begin in mid-2012.
The IIABA’s Invest program — which
works with high schools and community colleges to provide insurance education opportunities — is also close to Bramlett’s heart.
He said the association will be “putting more
and more emphasis” on the program “in
order to get new people, new blood. We’re
getting more companies involved in it.”
Mainly, Bramlett seems to want to spread
the message about the intangible, “priceless”
aspect of association involvement.
“I will tell you this,” he says. “I have gotten
more out of it, I’ve taken more away from
this than I’ve ever been able to give back.”
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IDEA EXCHANGE
Minding Your Business
What Steve Jobs Would Do in Insurance
A
fter reading Walter Isaacson’s great book
about Steve Jobs, I began to imagine:
What would Steve Jobs do if he were running an insurance agency?
The first obstacle I thought
about was that Steve Jobs
could not do it because he
would have to deal with
the products he could not
control from insurance
companies.
By Bill Schoeffler
Let’s just ignore that
issue and his bad traits for
the rest of this article.
Steve Jobs’ primary
focus was to create great
products. All else was secondary. The product of an
insurance agency is the service it provides to clients.
and Catherine Oak
The direction Steve Jobs
would take would be to provide a seamless,
integrated experience for the client. People
have too many things to worry about and
not enough time to be able to focus on their
insurance needs and problem. They want to
be taken care of.
Remember the time before the iPod? What
was it like to go buy a stereo system? There
were dozens of preamps to select, CD players to review, cassette decks to analyze,
turntables to choose and speakers to complete the package. Who had time to figure
out what was the best way to go?
The Steve Jobs Agency
The Steve Jobs Agency would create a
system that allows the prospect to quickly
discover his or her insurance needs. The key
step here is to develop the technique of collecting information from the prospect and
analyzing his or her insurance needs. There
are tons of questionnaires that do a good job
in discovering potential risk areas. Steve Jobs
would develop a way to collect information
quickly, painlessly and efficiently.
Once the needs were analyzed, the client
would be offered a prepackaged plan with
few options. The
part of the plan that
Steve Jobs would
emphasize is not the
insurance policies,
but the services that
the agency is providing the customer to
make life easier. The
agency would create
emails and letters
that would go out
automatically over
the course of the
year, reminding them
of the need to provide updated information
and to reinforce the idea that the agency is
there to support them.
One belief that Steve Jobs held was that it
was important to create a product that the
client did not yet know that they needed.
Steve Jobs Agency would be equally
innovative. The agency would have periodic
meetings with employees and key outside
advisers to analyze what the agency is doing
now, and 10 new ideas to focus on in the
future. Steve Jobs would let the employees
work on ideas to improve the product.
Another key belief Steve Jobs had was to
obsess about the details. He wanted everything to be perfect, including the parts that
the customer could not see. That might
mean that Steve Jobs spends a lot of time
developing streamlined procedures for the
business. His agency would be very consistent in the product/service that the agency
provides its customers.
A Single Team
The various departments in the Steve Jobs
Agency would work together as a single
team. Changes would only occur after getting feedback from everyone. Collaboration
and integration are to be expected from
employees. This is important at several
levels. It allows employees to have some
control over what goes on. It also creates a
sense of responsibility and accountability
since they were part of the decision-making
process.
Steve Jobs also would employ his “reality
distortion field.” He would push and challenge his employees to do their best, and
more. This approach will work, however,
only if the agency has all “A” players.
Steve Jobs would hire only the best. The
employees would need to be passionate
about providing excellent service for the
client. These people are hard to find and
usually demand higher compensation. The
good news is that they are self-sufficient,
they can manage themselves, and their productivity would be off the charts. The time
and money required to find and hire these
people will be worth it in the long haul.
Steve Jobs was that once-in-a-lifetime personality that was able to change the world.
He had the perfect blend of vision, drive
and persuasion to create new things and
build very successful businesses.
One of his traits that helped him succeed was to be able to spot a good idea and
remold it into his unique version. Likewise,
business owners should take great ideas
from Steve Jobs and other successful people
and make it their own.
Schoeffler and Oak are partners at the international
consulting firm Oak & Associates, providing services for
mergers, acquisitions, management and financial consulting. Email bill@oakandassociates.com. Phone: 707-9356565. Website: www.oakandassociates.com.
March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N1
NATIONAL COVERAGE
MyNewMarkets
Technology/Cyber/
Media Coverages
Market Detail: S.H. Smith & Co. (www.
shsmith.com) offers a variety of coverages
including, but not limited to: technology
errors and omissions, privacy liability,
network security, media and advertising,
identity theft, and cyber liability. Key
industries are: education, healthcare, finance
and media.
Available limits: As needed
Carrier: Chubb & Others, admitted and
non-admitted
States: All states
Contact: David Perkins at 781-247-6223 or
email: David_Perkins@shsmith.com
Earthquake Deductible Buyback
Market Detail: Abacus Insurance Brokers
(www.abacus.net) has lowered the deductible on a residential earthquake policy down
to 5 percent. Also included: 10-second quick
rater; minimum premium of $150; no age
restrictions; no size restrictions; single family residences, duplex, triplex and fourplex.
Carrier: Unable to disclose, admitted
States: California only
Contact: Darren Lewin at 310-500-2302 or
email: darren.lewin@abacus.net
and building coverage.
Available limits: Minimum $825, maximum $1 million
Carrier: Unable to disclose, non-admitted
States: Alaska, Ariz., Calif., Colo., D.C.,
Hawaii, Maine, Mich., Mont., Nev., N.J.,
N.M., Ore., R.I., Vt. and Wash.
Contact: Customer service at 888-751-3141
Medical Marijuana Crop Coverage
Market Detail: MMD Insurance (www.
mmdinsurance.com) has an A+ rated carrier
to offer medical marijuana crop coverage in
the United States. Crop coverage is available
on a 12-month policy and can add governmental actions and cargo. Coverages include:
general liability with products completed
operations; live plant coverage, marijuana
finished stock; excess coverage of $1 million
to $10 million; business personal property;
grow equipment; loss of business income;
loss of rents signs; tenant improvements and
betterments; special property endorsement;
REO Coverage
Market Detail: Innovative Risk Solutions
(www.irs-incorporated.com) offers REO
coverage to banks, credit unions, investors
and hard money lenders. Also offered: webbased program to manage multiple locations
on one policy, instant evidence of insurance
24/7, replacement cost or ACV simple direct
monthly billings. Property, flood and liability coverage is available in all states.
Available limits: Minimum $250,000, maxicontinued on page N7
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N2 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2012
We not only have access to a variety of markets, but we have numerous solutions.
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We’ve Got ‘Em.
IDEA EXCHANGE
Social Media & HR
Social Recruiting: Branding Your Company as an Employer of Choice
S
eventy-nine percent of companies are
already using or planning to use social
media in their business strategy. The No.
1 benefit organizations
attribute to social media is
increased awareness among
target customers. Yet there
is another often neglected
benefit of social networking that businesses should
be taking advantage of —
By Dave Coons
employer branding.
Nearly nine in 10 job-seekers have a social
media presence, and more than 22 million
Americans reported using social media to
find their current job, according to a Jobvite.
com survey, “Social Job Seeker Survey 2011.”
“Social recruiting” is becoming commonplace,
as employers realize the power of social
media platforms and its effects on the way
we recruit.
Your online presence is the main channel
that projects your employer image. What is
your online presence communicating about your
company? What
isn’t your online
presence communicating? If
you are not using
or are underutilizing social
media, you are
missing out on a
huge opportunity
to reach potential candidates.
Know Your Venues
The first step is to know your venues and
select only those online venues that will
deliver the most impact. Insurance organizations will likely narrow it down to LinkedIn
and Twitter. Some will take it a step further
with a company blog.
LinkedIn has emerged as the leading
professional networking site. It boasts an
excess of 150 million members worldwide.
Executives from all of the 2011 Fortune 500
companies are on it, and 2 million companies encourage people to share your message with
have LinkedIn Company Pages. In many
their contact base. It also communicates that
instances, this is a candidate’s first stop
your firm is growth-oriented. Employees
when seeking information on a potential
should be sharing this information on their
employer. Companies are wise to build a
personal pages, as well.
LinkedIn strategy, including a company page
Provide useful links and industry informaand individual employee training pages.
tion. Always use your organization’s original
Another social media
content. Tweet and share
site that has been
company press releases and
Your social media
embraced by the busiupcoming events. Market
message can set you the benefits of working for
ness world is Twitter.
apart as an employer your organization — the
This site is a great way
of choice.
to spread your message
things that set you apart
and drive traffic back to
from the rest.
your website. The database of Twitter users
Be sure to keep your content balanced.
is vast. To build a quality Twitter following,
While the occasional promotional message
focus on industry associations, media outlets, is okay, social media is not the place for
well-known individuals in the insurance
advertising. Consistently posting salesspace and your customer base. Use menoriented messages will drive your followtions and hash tags to ensure your Twitter
ers away; silly and off-topic content rarely
account shows up on other users’ feeds.
garners shares and lacks professionalism.
Another way to build your company’s
Furthermore, never underestimate the imporonline presence is to introduce a blog. It can
tance of proofing, even if the message is only
drive traffic to
140 characters.
your website
Engage others and keep the conversaand increase
tion going. Occasionally pose questions to
your search
encourage feedback. If another user mentions
engine visibilyou, always acknowledge the mention and
ity. Candidates
respond appropriately. Negative feedback
appreciate a
is a possibility, so have a plan to respond to
blog’s more
negative comments. If possible, address the
intimate look
original poster publicly to let him/her know
at the company
that you will be sending a private message.
and its culture.
This shows other viewers that you are workWith any
ing to resolve the situation, while restricting
social media
further conflict to a private forum.
platform, don’t embark upon a task you
When your potential employees begin
don’t have time to maintain.
to investigate your company, show them a
strong corporate brand. Your social media
Communicate Your Message
presence and content speak volumes about
Once you’ve put thought into what mescompany culture. A streamlined social media
sage you want to convey to your customer
strategy communicates professionalism,
base, think about the message you want to
growth and innovation. These are the facsend to potential employees. What do you
tors that transform an organization into an
want people to see when they Google you?
employer of choice.
Your social media message can set you apart
as an employer of choice.
Coons is senior vice president of The Jacobson Group, a
Posting job openings is a must. Not only
national provider of talent to the insurance industry. Phone:
is this free advertising, it is a great way to
800-466-1578. Email: dcoons@jacobsononline.com.
NATIONAL COVERAGE
MyNewMarkets
My New Markets, continued from page N2
mum $100 million
Carrier: Lloyd’s
States: All states except Alaska and Hawaii
Contact: John Watt at 954-931-4795 or email:
jwatt@irs-incorporated.com
Pay-As-You-Go Workers
Compensation
Carrier: Unable to disclose, non-admitted
States: All states except Hawaii
Property and General Liability
Market Detail: Element22 Insurance
Services (www.element22ins.com) provides
commercial property and general liability
coverage for shopping and retail centers.
Carrier: Multiple carriers, admitted and
non-admitted available
States: Ala., Ga., Fla., La., Miss., N.C., S.C.
and Texas
Market Detail: Pinnacle Underwriters
(www.pinnacleunderwriters.com) payas-you-go workers’ compensation has no
down payment and is direct billed monthly.
Contractors, staffing and new companies are
accepted.
Available limits: Minimum $500,000, maximum $1 million
Carrier: Unable to disclose
States: All states except Alaska, Conn., Del.,
D.C., Maine, Mass., Md., Mont., N.D., N.H.,
N.Y., Ohio, R.I., S.D., Vt., Wash. and Wyo.
Contact: Derek Lynn at 972-715-0999 or email: dlynn@pinnacleunderwriters.com
Elite Restaurant Insurance
Association
Market Detail: DGP Miles Insurance Agency (www.dgpmilesins.com) offers all lines
of coverage to restaurants. Other features:
dividend on all lines of coverage (except
umbrella); non-auditable; no coinsurance; no
wind deductible; premium based on public
square foot (not revenue); liquor included in
general liability; and umbrella covers over
liquor.
Available limits: Minimum $1 million;
maximum $10 million
Carrier: Unable to disclose, admitted
States: Conn., Maine, Mass., N.H., N.J.,
N.Y., R.I. and Vt.,
Contact: Amanda Munoz at 972-934-4209 or
email: amunoz@marketscout.com
Trade Contractors
Market Detail: Norman-Spencer Agency’s
(www.norman-spencer.com) construction insurance solutions (CIS) is a program designed
for residential and commercial artisan-type
contractors, operating in states noted for construction defect litigation. Underwritten by
a national, non-admitted A-rated carrier, the
program lead lines are general liability and
excess liability, with property and auto also
available. Program features include open distribution and availability in selected states.
SPECIAL REPORT
SHARING
ECONOMY
CALLS FOR
INSURANCE
INNOVATION
How Insurance Helped Getaround Get Going
By Andrea Ortega-Wells
C
an technology positively impact a billion people in just 10
years? Possibly, if insurance is available.
Consider taking a low-use personal automobile —
which might sit idle most of the time — and making it
available to someone else in a community who needs a car.
That’s what Jessica Scorpio was thinking when she helped launch
Getaround.com, a peer-to-peer car sharing company that allows participating car owners to share their vehicles to offset the high cost of
ownership while making a positive impact on the environment.
Scorpio, co-founder and director of marketing, says the idea for
Getaround spawned from her graduate studies project as a member of the Energy Team Project in 2009 at Singularity University,
a Mountain View, Calif.-based educational institution aimed at
advancing technologies to address humanity’s grand challenges.
“We were challenged to come up with a new idea that could positively impact a billion people in 10 years,” she said. “You have a car
that sits idle 92 percent of the time; it serves its owner well, but it
also is a really expensive asset that could be used more effectively.”
Scorpio didn’t expect people to stop driving completely anytime
soon, but she saw an opportunity to create a marketplace that
would connect car owners with other people in need of a car. Such a
connection would provide a needed service but would also limit the
number of cars on the road thereby reducing the carbon footprint.
The bonus: the car owner can make money off their asset, and
other people can choose not to own a car.
But in order to make this innovative idea a reality, a few big problems had to be solved. One of those problems was finding insurance.
“We worked for about the first year to overcome the key challenges. One was insurance and the other was technology,” Scorpio
said. “We felt like providing insurance was really key.”
Other car sharing networks, such as Cambridge, Mass.-based
Zipcar, which provides its members with access to shared vehicles
in urban areas, have had some success. But Getaround’s business
model would be different.
“Zipcar’s done a really great job of getting awareness for car sharing, but they’re very limited in where they can operate,” Scorpio
said. That’s because Zipcar owns its fleet of vehicles, which Zipcar’s
members then share. “It can only operate in the densest urban areas,
so there are tons of little cities and towns, and even the more suburban areas that want car sharing that will never be able to have car
sharing with the fleet model,” Scorpio said.
Scorpio said that while it had its advantages, Getaround’s model
of using a peer-to-peer car sharing approach rather than a fleet of
company-owned vehicles made securing insurance difficult.
“I think we were a little early in trying to get something like this
developed,” she said. “We had to do a lot of education.”
Securing insurance for a start-up company can be tough even
without Getaround’s unique peer-to-peer car sharing exposure. But
getting a new type of policy created that would cover the unusual
risks of car sharing was really, really difficult, she said.
“We had to be very scrappy, very creative even in reaching the
right people, so we actually cold called insurance VPs,” Scorpio said.
That’s right — cold calling insurance brokers and carriers to find
coverage. And sometimes it worked.
“We got through sometimes,” she said. “It was really interesting …
The VP of some major insurance company takes 20 minutes to talk
to you. And at the end he says, ‘Well, call me back when you have
two years of experience.’ And we’re like, ‘Oh, we will,’” she said.
The Sharing Economy Trend
While peer-to-peer car sharing remains in its infancy and is pricontinued on page N10
SPECIAL REPORT
Home & Auto
Sharing Economy, continued from page N9
marily found in San Francisco and a few other places, peer-to-peer
home sharing firms have had more far-reaching success.
San Francisco-based Airbnb claims that it has booked more than
5 million accommodations worldwide since August 2008. It operates
offices in nine countries and lists peer-to-peer rental accommodations in more than 19,000 cities and 192 countries.
But the sharing economy is making more than cars and homes
available.
People in need of a lawn mower or chain saw might find a friendly neighbor to borrow (or rent) from on social networking sites such
as HeyNeighbor.com.
Or people who need an errand run can find a person willing to do
the job for a few bucks at TaskRabbit.com.
Want to save on gas? In today’s sharing economy consumers can
access car-pooling social networking sites like Zimride.com, or rent
bicycles to ride from Rentcycle.com.
The sharing economy doesn’t seem to be going away any time
soon. According to a national study, 60 percent of people say they
find the concept of sharing appealing, and 71 percent of people who
have used shareable products expect to continue to do so.
“This trend is no longer emerging, it’s here,” said Lynn Franz, of
Campbell Mithun, the Minneapolisbased advertising agency that commissioned the study.
This year looks to be a good one
for the sharing economy and start-ups
ready for growth.
Ron Conway, special adviser to SV
Angel, recently identified the sharing
economy as 2012’s hot area for angel
investment in The Economist.
Given the growth in sharingrelated options and new businesses,
nurturing an insurance market ready
to respond will be key, says one broker who was instrumental in developing an insurance program for
Getaround.
“I personally believe that this is a very large trend,” said Julie
Davis, vice president, brokerage and social media director for
Heffernan Insurance Brokers based in San Francisco. The trend has
become so commonplace that it’s forcing a change within the insurance industry, Davis says.
“The insurance industry is very focused on insurance policies
where people own an asset, and they’re not focused on, ‘How do I
actually cover something where the ownership and the maintenance
might be a little bit different?’ Insurance carriers are trying to struggle with, ‘How do I make this work? How do I do this?’” she said.
Creating an Insurance Market
Scorpio knew that for Getaround to be a success she had to find
the right insurance partners. She found that in Heffernan’s Davis.
“We were lucky enough to find Julie at that time and she’s just
been our guardian angel since,” Scorpio said. “I think it’s about really
finding the right broker with the right connections and vision when
you’re doing something innovative.”
After all, it takes an innovative insurance program to serve the
needs of an innovative company like Getaround.
After initially trying to find insurance through large national
retail brokers, Getaround found Davis was a breath of fresh air.
“She really looked at it the right way, and I felt like a smaller firm
could really help us because we got more attention. She was able
to pull some personal connections and get the ear from people who
otherwise would not really have wanted to listen,” Scorpio said.
Peer-to-Peer Coverage Challenges
Getting someone in the insurance industry to listen wasn’t easy.
“Frankly, we beat the market to death,” Davis said. “I can’t even
begin to tell you how many declinations we had.” Davis soon found
out that for peer-to-peer car sharing nothing was simple when it
came to insurance.
“The biggest challenge that you have surrounds a couple of things:
First, you have the issue of ownership. You have the issue of maintenance. You have the user agreements, the contractual liability,” Davis
said. “Then, specifically, whenever you’re talking about car sharing,
the one additional item that comes into play is legislation.”
That’s because one of the biggest obstacles in peer-to-peer car
sharing liability centers on the car owner’s personal auto policy
coverage and whether or not the vehicle is considered a commercial
vehicle due to the nature of car sharing for a rental fee.
“The crux of the issue is that standard language in a personal auto
policy usually contains an exclusion if you are renting the car out,”
said Robert Passmore, senior director personal lines policy for the
Property Casualty Insurers Association of America.
Personal auto policies typically exclude coverage when vehicles
are used as a livery (taxi or limos), or for rental car services, he said.
“Those are commercial uses of a motor vehicle and typically excluded under a personal auto policy.”
Legislation passed in California in 2010, and then in Oregon in
2011, has resolved ambiguity for some peer-to-peer car sharing liability issues. Similar pending legislation in Washington aims to do the
same this year.
The legislation does two things, according to Passmore. “One, it
prevents consumers who are sharing their cars from having to go
and get a commercial auto policy. It also delineates who’s responsible for what, basically that the car sharing company’s insurance is
going to be responsible for anything that happens while the vehicle
is in possession of the car sharing company,” he said.
“The important thing is that if you are getting involved in one of
these car sharing programs you want to make sure that your exposures are covered under whatever policy is being provided by the
car sharing organization,” Passmore said.
In California, the legislation (AB 1871) also prevents a personal
auto insurer from altering the policy because the owner is participatwww.insurancejournal.com
One Insurance
Broker’s Drive for Innovation
W
Getaround Founders: Elliot Kroo, director of engineering; Jessica Scorpio,
director of marketing; and Sam Zaid, CEO
ing in a car sharing program, says Peter Moraga, spokesperson for
the Insurance Information Network of California. In other words, a
personal auto insured cannot be non-renewed or charged a higher
rate just because they are participating in car sharing.
The law, which insurers helped craft, has brought about changes
to personal auto policies in California, he said.
“Our members are reporting that because AB 1871 stipulates what
can and can’t be done, they’ve had to adjust their policies to specifically exclude any claim arising during the car’s sharing,” he said.
“So where that may not have been clearly spelled out in the policy,
some of our members have now added language to define ‘car sharing’ parameters for claims accepted on the auto.”
The car sharing economy likely will drive legislative changes in
other states, too, as companies like Getaround expand.
States will have to address the issue, Passmore said, “because if an
accident occurs you can probably expect that the plaintiffs will go
after everyone, any potential sources of recovery.”
In his view, personal auto insurers will see car sharing as an unfavorable exposure even if they are protected under legislation like AB
1871.
“In effect you are renting out your car and that is typically excluded,” Passmore said. “So yes, it is considered an unfavorable exposure
because you don’t know who is driving the car.”
Even so, personal auto insurers don’t seem to be making any decisions just yet.
“We haven’t seen much impact with insurers yet,” Moraga said.
However, he added that so far insurers have received few inquiries
from policyholders about car sharing liability issues, but as the sharing economy evolves that may change.
“This is such a new thing,” he said. “Like any new thing it takes
time before it’s actually tested.”
Passmore agrees that insurers have yet to respond in a big way,
but he says the question really lies in what happens from here.
Anybody can name anybody in a lawsuit, he says. “I haven’t heard
of any big cases or court decisions but it’s also a pretty new program
— and it only takes one.”
hen Jessica Scorpio, 24, began her quest for insurance for
Getaround.com, a peer-to-peer car sharing organization, she
ran into a few closed doors.
“I definitely spent my whole 22nd year banging on insurance
doors,” she said.
Scorpio, who serves as Getaround’s director of marketing, founded
Getaround along with Sam Zaid, CEO, and Elliot Kroo, director of
engineering. They knew from the get-go that insurance would be
crucial to the success of their peer-to-peer car sharing company.
When she began her quest for coverage, Scorpio
found that few people in the insurance industry
wanted to take a chance on this unchartered territory. Then she came across one insurance broker
who made all the difference. That broker was Julie
Davis, vice president, brokerage and social media
director for Heffernan Insurance Brokers based in
San Francisco.
Julie Davis
“We’ve worked extremely closely with Julie and
the team at Heffernan,” Scorpio said. “They understand our business
really well.”
That understanding of the risk was an asset in creating an insurance program almost as innovative as Getaround itself.
“Anytime you have people that are doing peer-to-peer sharing, I
think it just sort of rewrites the rules of how personal coverage and
commercial coverage work,” Davis said.
Davis’ expertise helped open the door to the right insurance partners. Those partners turned out to be RT Specialty and Berkshire
Hathaway’s National Indemnity.
Lynn Cogger Koop, senior vice president for RT Specialty in
Chicago, says developing an insurance program for Getaround
required a little more creativity than even her most unusual commercial auto clients.
Davis said the biggest challenge was getting carriers to step back
and understand the risk.
The main problem for underwriters is there’s no data to accurately assess the risk, Koop said. “There isn’t anything to go by.”
While Davis and Scorpio delivered a good risk model for
Getaround — so well that National Indemnity took a chance on
writing the coverage — the carrier remains unsure about writing
other similar risks, Koop said.
“They are probably not going to do any others [peer-to-peer car
sharing risks],” Koop said. “They are cautiously optimistic about this
risk because there is really no rating methodology or actuarial data
because no one has done this before.”
Koop says that even though the Getaround insurance program
remains in a test phase, so far so good. “Getaround has been a great
client,” Koop said. “They are helping us develop some data to share.”
Loss experience has been good as well. “My personal experience is
the claims have been surprisingly great,” Davis said.
Both Davis and Koop see the sharing economy as a good opportunity for insurance growth and innovation.
“It’s definitely a class of business that we are writing,” Koop said.
“We’re in the test phase on auto so we are not actively pursuing any
other peer-to-peer car sharing but the other classes are quite honestly a little bit easier to put together.”
CLOSER LOOK
Technology & New Media Risks
Cloud Computing: The Risks Beyond the Metaphor
By Judi Lamble
C
loud computing is big business. With
a worldwide market forecast to reach
nearly $241 billion by 2020, it’s no wonder
chief information officers (CIOs) rank cloud
computing in their top three technology priorities for 2012.
Cloud computing is the market’s metaphor for enabling convenient, on-demand
network access to a shared pool of configurable computing resources (e.g., networks,
servers, storage, applications and services)
that can be rapidly provisioned and released
with minimal management effort or serviceprovider interaction.
Cloud computing is most often:
• Software as a Service (SaaS) — software
applications accessible through an interface,
like a web browser. SaaS enables users
(DaaS), Application Platform as a Service
essentially to rent software and data storage
(aPaaS), Software Infrastructure as a Service
space from a provider (e.g., Gmail or Google
(SIaaS), Cloud Enabled Application Platform
docs).
(CEAP), Business as a Service (BaaS) and
• Platform as a Service (PaaS) — platforms
Gaming as a Service (GaaS).
to host, test or maintain
As the cloud market
developers’ code (e.g.,
matures,
multiple business
As the cloud market
Force.com).
models for cloud computmatures, multiple
• Infrastructure as a
ing are emerging.
business models for
Service (IaaS) — outThe public cloud is
cloud computing are available and marketed to
sourced infrastructure
emerging.
on which users may
businesses and consumdeploy their own operaters at-large and employs a
ing systems and applications, (e.g., Amazon
mega-scale infrastructure. Developers and
Web Services, Rackspace, IBM’s various IaaS
non-IT business leaders especially, are rushcloud offerings).
ing to embrace the public cloud.
If SaaS, PaaS, and IaaS are familiar conThe private cloud focuses on IaaS and
cepts, then you may also be aware of some
is owned or leased by a single enterprise
of their offspring: Development as a Service
(diminishing the scalability benefits of cloud
computing, but allowing users more control).
The community cloud serves, and is
shared by, a defined, limited constituency of
users.
The hybrid cloud is a creative blend of
one or more of the previous options.
Advantages
So why the current fascination with cloud
computing? Outsourcing one’s IT needs from
a PC or internal server(s) to an offsite, more
accessible and probably shared server with
state-of-the-art IT support offers many benefits, including:
• Access to cloud-based data, apps, platforms, etc., from any computing device anywhere, anytime.
• Cost savings as hardware, software licenses, upgrades, etc., become unnecessary.
• Increased data storage capacity.
• Elimination of network maintenance and
update disruptions.
• Enhanced data security.
• Flexibility to respond to changing resource
demands and limitations (both electronic
and human).
Perhaps most important, cloud computing
offers scalability — the ability to do what
you do in a bigger way. The cloud allows
users to do more, faster and at a more complex level — without increasing the cost.
Risks
While cloud computing has advantages
that PCs and internal corporate IT departments may be unable to match, the concentration of data, applications and systems
on mega-servers maintained by remote
personnel presents distinct risks. Some risks
include: loss of service and data, invasion of
privacy and other privacy issues, compliance
issues, and other disputes.
Loss of Service. Loss-of-service headlines
pepper the media as “news,” but the reported
causes are often familiar: errors in upgrades,
bugs in updates and heavy traffic. Service
outages can extend beyond inconvenience to
material business interruptions.
Loss of Data. Incidents of permanent
data loss have been rare, but they do occur,
as mega-vendors like Amazon have learned.
Invasion of Privacy. Despite cloud providers’ assurances of data security, hackers
are an ingenious lot. Citigroup, Sony, the
International Monetary Fund, Lockheed
Martin, the U.S. Senate, Comodo (a too-bigto-fail entity providing certificates of site
authenticity to web browsers), and countless
others have all learned the hard way.
Privacy issues also arise from the voluntary production of cloud-stored information
incident to litigation. Courts are split on
whether the Stored Communications Act (a
legacy from the 1980s) prevents disclosure of
cloud-based information, so cloud providers
and users must be prepared for the possibility that otherwise private data, once stored
in the cloud, may no longer be deemed private.
Traditional Business Disputes. As in
any hot market, the cloud is populated with
competitors aggressively challenging each
other’s intellectual property rights and sales
practices, as well as theft of trade secrets and
the employees who know them. The cloud
also promises traditional contract disputes,
as vendors and their customers fight to allocate losses due to service interruption, secuwww.insurancejournal.com
rity shortcomings, and
alleged poor performance.
Compliance Issues.
Cloud users, not their
providers, are responsible
for compliance with
state and federal laws
related to data privacy
like HIPAA, the GrammLeach-Bliley Act, and
the Federal Information
Security Management
Act. Likewise, compliance with e-discovery
requests in litigation falls
to the parties to a lawsuit,
not their cloud providers. Because there are
currently no universally
accepted standards for
cloud computing providers to follow in storing
and maintaining information (although various
groups are looking to
develop them), passing
the risk of noncompliance
onto providers may be impossible.
Cloud Best Practices
Outsourcing IT to the cloud is not the
same as transferring data management risks.
Prudent users therefore should scrutinize cloud providers’ privacy policies,
security measures, disaster recovery plans,
and all aspects of the provider’s electronic
infrastructure. For those new to the cloud,
the National Institute of Standards and
Technology’s (NIST) Guidelines on Security
and Privacy may provide a useful starting
point for that analysis.
Also, ensure the user’s own privacy
policies, litigation holds and other datadriven protocols take its cloud activities into
account.
Users should also consider the value of the
“extras” such as data recovery services and
redundant servers when purchasing cloud
services.
Users should carefully evaluate contractual transfers of risk (warranties and
indemnity provisions). Typical cloud service
contracts will include an indemnity provision that favors the service-providers and
provisions that limit damages to the cost of
service, enhancing the cloud user’s need for
contract negotiation.
For cloud providers, best practices will
include making security measures and rigorous disaster recovery/business continuity
plans a centerpiece of their design. Another
best practice is to maintain favorable indemnity provisions and damage limitations.
As with any emerging technology, balancing risk tolerance with business benefit is
key. And mitigating that risk with appropriate insurance coverage, such as a data protection and an errors or omissions insurance
policy, is one way to strike the balance.
Lamble is vice president of claims for OneBeacon
Technology Insurance.
CLOSER LOOK
Technology & New Media Risks
What Insureds Should Know
About Avoiding Cyber Liability Exposures
to everyone in its contact list, including all
customers. As a result, one of your client’s
customers gets the same virus, wipes out his
By Christopher D. Bomar
whole network, and now the customer is
suing your client for damages.
n today’s business world, digital infor2. Your client runs a nonprofit organizamation is fundamental to everyday
tion. Their website gets hacked by a virus
operations. Whether it’s financial applicaand it corrupts all of their content then
tions, email communications, supply chain
emails a virus link to all their donors. They
management, content management, sales
rush to take the site down but not before
order processing or customer relationship
a lot of damage was done, plus they now
management systems, data is the backbone
must spend thousands of dollars to have
of business. The more reliant a company is
the computer network and website rebuilt.
on digital data, the lower its tolerance is for
Meanwhile, several major donors are not
any interruption in application or data availpleased with the way things were handled,
ability caused by cyber threats.
so your client has lost a huge chunk of sponThe recent rise in high-profile cyber incisorship (income).
dents, such as computer
3. A disgruntled former
viruses, data theft, iden‘Cyber losses are
employee
logs into your
tity theft and other cyber
increasing, and the
client’s network and
crimes, makes it criticost to recover from blocks access to the comcally important to keep
a data breach can be pany website so its cusdata secure, available and
staggering.’
tomers cannot access their
organized.
accounts nor do business.
What happens when a
After two weeks of this, everyone is upset
data loss or breach occurs? More specifically,
because they cannot operate normally and
what are the implications from an insurance
your client is losing customers by the hour.
standpoint?
Not only have they lost customers but now
Consider these scenarios:
they also can’t get them back, and some are
1. Your client owns a small business and
suing for damages.
one of its employees accidently opens up an
email that has a computer virus attached to
Coverage Lacking
it. The virus crashes the company’s computWhat do these three scenarios have in
er network but not before spreading itself
I
common? None of the losses would be covered under typical business insurance policies.
The Insurance Service Office’s Building
and Personal Property Coverage Form,
which covers damage to property, covers
loss of data but only up to an annual limit of
$2,500.
Commercial general liability policies
cover claims against your clients for damage
to others’ property, but damage to data is
specifically excluded. Not only is the damage to data excluded, but damage (including
bodily injury) caused by a loss of data is
specifically excluded as well. This means
the full financial impact of these scenarios
would fall directly on your clients’ business.
Times have certainly changed, and most
businesses aren’t prepared for these scenarios. Yet they are happening everyday
at an alarming rate with more privacy and
security breach headlines in the news, and
that’s only a small portion of what is actually happening but is not reported.
According to the Cincinnati Insurance
Board, most companies, particularly small
businesses, are woefully unaware of the
implications of cyber threats.
“Cyber losses are increasing, and the
cost to recover from a data breach can be
staggering,” said the Board’s Executive Vice
President Ron Eveleigh. “At this time, coverage is limited for these cyber losses, but
the coverage is evolving. Some policies will
provide limited coverage for broad data and
privacy breaches but, right now, the majority of commercial general liability policies
need a specific endorsement for cyber peril
coverage.”
How to Avoid Losses
There are three things agents should do
to help their customers avoid major losses
caused by cyber-related threats.
Do a review with your clients of their
businesses cyber risks. “Be sure to inquire of
any e-commerce activity that their businesswww.insurancejournal.com
es do and what kinds of and whose information they store on their network,” said Brian
Fey, vice president of Fey Insurance Services,
Oxford, Ohio. “This would even include any
information on subcontractors who do some
of their e-commerce activity or help in running or maintaining the computer network.
At the same time, be sure to review their
current coverage and see what possible gaps
exist in their current plans as it pertains to
covering cyber threats unique to their way of
doing business.”
Discuss “cyber-risk” coverage for loss of
or damage to data. “Be sure to ask not only
about coverage for loss of their data, but also
for their liability for loss of others’ data, as
well as the damage that can be caused by the
loss of data,” said Martin Dvorchak, consultant for CORE Risk Services, a Cincinnatibased Risk Management and Disaster
Recovery firm.
“Endorsements and/or policies to cover
data are readily available. There are many
versions of so-called “cyber liability” policies
available in today’s marketplace, and it is
important to carefully review terms and conditions to make sure such a policy will do
what they expect if and when it is needed,”
Dvorchak added. “Unless they’re making
buggy whips on a cash-only basis, they need
some form of this coverage to protect their
business. Covering these exposures is probably more affordable than they think, and it’s
certainly more efficient than paying for damages out-of-pocket.”
Have a data security risk assessment performed by an IT professional who specializes
in data security. This will help discover the
strengths and weaknesses of data handling
processes and fix them before something bad
happens. A thorough risk assessment along
with adopting best practices demonstrates
that a business has exercised due diligence,
and when properly documented, can serve as
an “affirmative defense” when a cyber threat
impacts their employees or customers.
As the saying goes, “an ounce of prevention is worth a pound of cure.” This is especially true for cyber perils. Each of these
pointers can be the difference between business continuity and business failure for your
customers in the event of a cyber-related
incident.
Bomar is the senior project manager and president of
Cincinnati-based Boomarang Data Backup and Security. A
former insurance agent, he teaches data security risk management and HIPAA compliance best practices to insurance
agents and underwriters in Ohio and Kentucky. Website:
www.boomarangdbs.com. Email: cbomar@boomarangdbs.
com.
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Driving Solutions
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in the industry. One who will consult with
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minimize your card processing costs and
maximize your card data security.
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NATIONAL COVERAGE
News & Markets
P/C Insurers Face Obstacles on Road to Hard Market
By Andrew Simpson
W
ith interest rates low and looking
like they will stay low for some time,
property/casualty insurance companies
will have to focus on making their profit on
underwriting rather than on investments.
However, P/C insurers expecting to
achieve better results by relying chiefly on
higher prices may need a Plan B.
There are numerous forces inhibiting the
broad price increases that might usher in a
real hard market, according to experts at the
Professional Liability Underwriting Society
(PLUS) Directors & Officers Symposium.
These forces include buyers who balk at
paying more, brokers unaccustomed to asking for more, along with benign loss trends
that make increases difficult to explain.
Will Customers Pay?
The willingness, or unwillingness, of
customers to pay more is a key factor in
whether insurers can raise prices, according
to Eric Andersen, CEO of Aon Risk Solutions
Americas, part of Aon Corp. He said most
buyers “are not budgeting for increases.”
“The market psyche right now is that
when you get down to the level of a business
deal, the pricing differential between new
and renewal matters,” Andersen said.
Also, the transparency of data today
makes it difficult for insurers to spread the
effect of losses from one product line to
another. Andersen said risk managers are
more aware of what causes rates to spike in
their line, and what doesn’t. U.S. customers
are not willing to pay for Thailand flood
losses, for example.
Being strongly-rated does not give a carrier a pass to higher pricing either, he added.
Continuing price competition and a slow
economy are additional factors. “There is a
firming of prices but there is a lot of activity
chasing a static population,” Andersen said.
Michael Sapnar, president and CEO,
Transatlantic Holdings, agreed that competition remains a factor, and there are a number
of insurance markets going after a marketplace that isn’t growing.
Sapnar said brokers have a lot of influence
over what happens in pricing. However,
some question whether brokers are willing to
ask customers to pay more.
David McElroy, president, financial and
professional products at Arch Insurance, said
the three largest brokers need to be convinced to ask for rate increases.
McElroy said it is difficult to articulate
why insurers need higher rates, especially
when loss cost trends are not rising. “We
don’t lay that out. It takes guts.”
Brokers may also be out of practice. “It’s
hard to ask for rate hikes if you’ve never had
to do it,” said Sapnar, referring to the fact the
market has been soft for an extended period.
Sapnar also said brokers have to prepare
their clients and get risk managers to budget
for increases.
Andersen said that roles get clarified in a
hard market. When prices are going down,
“being a broker is easy,” he said. But when
prices are going up, a broker is more clearly
working for the client.
“If customers will accept price increases,
then brokers should push for them,” said Jay
Gelb, citing workers’ compensation as one
line in need of higher rates. Gelb is managing director and senior equities analyst at
Barclays Capital, and follows insurance.
88 percent to make it in this market, but they of seismic events, insurers may just have to
do not communicate that to underwriters, he pin their hopes on growth in the economy.
said, calling this a “disconnect.”
“We are completely tethered to the
Gelb said that while low interest rates
economy,” McElroy said. “Growth depends
may not directly drive pricing, they do influon what the economy does going forward.”
ence insurer strategy. For every one-point
“GDP drives growth,” Gelb said, indicatdecrease in its investment portfolio, an insuring he expects growth of plus one or two
er needs two points better in its combined
points on top of the GDP for the industry.
ratio, according to Gelb.
Andersen said growth
Sapnar said it will take
would
eventually come
Some question
some insolvencies before
from new products, cuswhether brokers
there is a hard market.
tomers expanding, mergare willing to ask
He said that the European
ers, even regulatory issues
customers to pay
debt crisis could help trigthat create liabilities.
more.
ger a hard market, but that
He sees growth in Latin
it is “never just one event.”
America, in affinity proMeredith concurred that it would take
grams and in the employee benefits area.
some insolvencies for the market to harden
There is one other factor that could
significantly.
drive growth: risk.
Sapnar said not to expect reinsurers to
“The perception of risk in the world
drive a hard market. Reinsurers, he said, do
affects growth — the more risk, the more
not have the capital or influence they previneed for insurance products,” Meredith
ously had. “The days of the tail wagging the
said.
dog are gone,” he said.
In Andersen’s view, long-term dynamThe industry should not be wishing for a
ics are positive. “Customer need around
sudden hard market anyway, according to
complex risks, the need for insurance,
Gelb. “Slow, steady is better,” he said.
has never been greater,” he said. But right
now, “people are just now sticking their
heads out of the foxhole and looking
Hopes for Better Economy
around.”
Rather than relying on pricing or a series
Some Upward Movement
The experts agreed there is some upward
pricing movement, especially in property and
workers’ compensation. But they disagreed as
to whether low interest rates are the reason
some insurance prices are increasing.
P/C insurance analyst Brian Meredith,
managing director at UBS Securities, credited
current price increases in part to low interest
rates. Because the Federal Reserve has said
interest rates will be low until at least 2014,
“companies realize they have to do something
and can’t rely on investments.”
Meredith added he does not see significant
price increases that would herald a real hard
market because loss trends are benign.
But McElroy said low interest rates do not
affect pricing. “At underwriting level, nobody
cares what interest rates are,” he said.
Carriers may need a combined ratio of 87 or
SPOTLIGHT
Home & Auto
5 Things to Know About Classic Car Insurance
W
ith warmer weather around the corner, classic car owners are beginning
to take their beloved vehicles out of storage
for the driving season.
Agents may find this an
opportune time to contact
their clients to review their
policies and make sure they
have the most appropriate
coverage for their automoBy McKeel Hagerty biles.
Classic car insurance
companies have the ability to offer superior
coverage at lower premiums and can provide
other benefits specifically tailored to collector cars. Policy options often include repair
shop of choice, roadside assistance with
guaranteed flatbed towing, and coverage for
spare parts and tools.
The main difference between a specialty
classic car carrier and a standard auto carrier
is the type of policy offered and how the policy accounts for a vehicle’s value. Guaranteed
(or agreed) value coverage is typical for most
companies specializing in classic car insur-
ance, while a traditional auto policy writes
sic car insurance company or consult a price
an actual cash value (ACV) or stated value
guide. There are a number of classic car price
policy.
guides available to research current marGuaranteed value coverage means the
ket values, including Hagerty Price Guide,
owner and insurance provider agree upon
NADA and Old Cars Price Guide.
the car’s value at the time
the policy is issued, and
Work with a comClassic car owners
that value will not be
pany that deals excluare passionate about sively with classic cars.
depreciated in the case of
their vehicles.
a total loss. An ACV or
They understand the
stated value policy will
unique needs associated
potentially depreciate the car’s value, reducwith older, collectible vehicles and will usuing the amount of the claim. This difference
ally save the client money. Because specialty
is particularly important because most clasinsurers recognize that the risk for loss is
sic cars appreciate in value over time, while
far less in a classic car than in a regular-use
most modern cars depreciate.
vehicle, the premiums are often much lower.
Also, look for a company that handles
Coverage Considerations
claims in-house. An in-house claims department makes for more efficient claims hanHere are some tips to consider when
selecting insurance cov- dling and ensures that the person handling
the claim has experience with the unique
erage for your clients’
needs a collector car may require during the
classic car(s).
repair process.
Classic car owners
Roadside assistance should include
are passionate about
flatbed towing. Classic car owners are
their vehicles. Many
six times more likely to experience a break
collector car owners
down than a claim. There are many types of
have an emotional
roadside assistance programs available along
connection to their
automobiles. Perhaps
with insurance policies, but make sure a
guaranteed flatbed tow truck is included to
their classic is a famfully protect your vehicle. Flatbed towing
ily heirloom or the
first car they bought
is one of the safest ways to transport a car
as a teenager. There
because all wheels of the towed vehicle are
off of the ground.
is often a sentimental
value far greater than
the actual dollar value.
Always keep a classic car insured.
The opportunity to
Many mistakenly assume that the homeowner’s policy will cover the full value of their
provide your client
car when it is in their garage. It is important
the best protection for
something they truly
to maintain coverage even if the vehicle is
at a shop or in storage and not being driven.
cherish can make a sigIn the event of fire or theft, your client will
nificant impact with them.
have to absorb the entire loss if the vehicle
isn’t covered.
Properly value the car. It is important
to accurately value your client’s vehicle
when seeking a classic car insurance
Hagerty is the CEO of Hagerty Insurance. Website: www.
policy. Speak to a representative at the clashagerty.com.
SPOTLIGHT
Group Personal Excess
Group Personal Excess Policies Give
Businesses and Employees Added Protection
By John J. Allen
A
oncoming traffic, causing a headon collision with another vehicle.
Severe injuries are sustained to
drivers and passengers in both
vehicles, and a multi-milliondollar lawsuit is filed.
• A worker removing leaves from
the insured’s gutters is severely
injured in a fall, suffering neck
and brain injuries. A claim of
dangerous work conditions was
cited as a factor. A lawsuit is
filed and a settlement is reached.
• An insured’s son posts disparaging comments about his high
school principal on a blog he
maintained, resulting in a lawsuit
for defamation of character.
• A family friend dives unknowingly and unwarned in the shallow end of the swimming pool
at the insured’s house and suffers
paralysis. A lawsuit is filed.
s the economy continues to
languish, and competition
for revenue becomes fiercer, it
is important for companies to
retain and protect their key talent. Beyond financial incentives,
businesses must consider the full
measure of an employee’s lifestyle
and needs when contemplating
remuneration. One component
that should be standard in any
benefits portfolio, particularly for
executives, is a group personal
excess program.
Group personal excess provides participants access to
higher limits of excess liability
than are typically available in
the individual marketplace, with
little to no underwriting scrutiny. The assets of high net worth
individuals are always vulnerBenefits for Businesses
able to lawsuits, but in difficult
For companies, there are seveconomic times, the perception
eral advantages to introducing a
of “deep pockets” can increase
group personal excess program.
this exposure. Because of the
First, it represents a valuestrict underwriting most insuradd to a benefits portfolio as
ance carriers apply to high-limit
it enables
excess policies, a group
Group personal excess employees
to shore-up a
personal
allows employers a
potential vulexcess procompliment to existing nerability in
gram may
benefits.
their financial
afford better
planning and
compensaasset protection process.
tion the only means by which
Second, it provides a measure
to attain the necessary degree of
of organizational stability as it
financial protection.
enables companies to retain the
Consider the following loss
investment they’ve made in their
scenarios for which a group
human capital, even in the event
personal excess policy might
of a catastrophic claim.
respond:
Lastly, it recognizes and
• While driving, an insured’s
addresses the continually blurdaughter crosses the lane into
ring line separating work and
personal time.
While there is a widespread
recognition of the need to maintain a diversified portfolio and
purchase life insurance as risk management measures in
the wealth-building
process, excess liability can sometimes
be overlooked. Yet
it should represent
a key component in
financial planning.
Be it the result of
ignorance of liability’s importance or
an inability to obtain
adequate limits, a
deficiency in this area
can result in financial
calamity.
Group personal
excess can complement benefits such as 401(k)
plans or other wealth-building
instruments, long term care
insurance and group life, as well
as provide much-needed coverage
for employees.
Risk and randomness converge at an incalculable number
of points. In an instant, all that
one has worked for can be taken
away by an incident arising
from carelessness or misfortune.
While no degree of planning can
ever completely eliminate such
threats, proper coverage can mitigate the impact of loss.
For companies, a liability loss
suffered by a key employee can
remove services to the enterprise
for a considerable period. The
all-consuming distraction that
attends the possibility of losing
one’s assets can destroy productivity, resulting in a material
impact to a business’ bottom line.
While no one can remove the
psychological impact of loss, providing financial security certainly
blunts the impact. For little or
no cost to the organization, the
revenue produced by more senior
members can be better protected
by providing them a bulwark
against financial disaster.
Putting forth benefits that
address the needs of both
employer and employee is an
important strategic consideration
for businesses. Group personal
excess is the rare product that
provides value to all stakeholders
in an organization, and is a welcomed addition to any competitive benefits portfolio.
Allen is the business development manager
for Chubb Personal Insurance.
2012 Hospitality Risks Directory
2012
Hospitality Risks
Directory
S
earching for the right market for a hardto-place hospitality risk? Look no further
than Insurance Journal’s Hospitality Risks
Directory — a comprehensive listing of
excess and surplus lines intermediaries and carriers offering hospitality risks coverage nationwide.
The information listed in this directory has been compiled to serve as a resource guide for independent agents
and brokers looking for superior markets for everything
from nightclubs to special events, hotels to motels, spas,
resorts and restaurants too.
All markets profiled in this directory have been updated with the most current information available provided
directly by the intermediaries and carriers writing
the coverage. IJ has made every attempt to ensure the
accuracy of all information listed in this directory.
To submit a listing for future Hospitality Risks
directories, e-mail Kristine Honey at: khoney@insurancejournal.com, or visit: www.insurancejournal.com/
directories. We hope you find IJ’s 2012 Hospitality
Risks Directory to be a useful tool when searching for
quality markets.
To comment on this directory, or any other IJ
resource, please e-mail:
editorial@insurancejournal.com.
Banquet Halls
Market
A.I.I. Insurance Brokerage of Mass., Inc.
Aberdeen Insurance Group, Inc.
Abram Interstate Insurance Services, Inc.
Agency Intermediaries, Inc.
Agostini Wholesale Insurance Services
All Risks, Ltd.
Ashley General Agency
Atlas General Insurance Services, LLC
Bass Underwriters
Bliss & Glennon, Inc.
Braishfield Associates, Inc.
Brecht & Associates
Burns & Wilcox
Capitol Insurance Companies
Compass Insurance Group of Agencies
Crump Insurance Services, Inc.
Excel Insurance Services, Inc.
Founders Insurance Company
Gorst Co.
IMS/London American
Insential, Inc.
Insurance Multiplex Agency, LLC
International Excess Companies
Izzo Insurance Services, Inc.
J.M. Wilson
Jacobs & Associates
James River Insurance Company
Jimcor Agencies
Lionheart Insurance Services, Inc.
M.J. Hall & Company, Inc.
Maximum Independent Brokerage, LLC
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MA
AZ CA CO IA ID IL IN KS
MO MT NE NM NV OK OR
TX UT WA
TX
All States
Patriot National Underwriters, Inc.
People’s United Insurance Agency, Inc.
Professional Liability Ins. Svcs, Inc.
- Underwriting Facilities
RCA Insurance Group
RIC Insurance General Agency, Inc.
Risk Alternatives & Management (RAM)
Risk Placement Services, Inc.
Roush Insurance Services, Inc.
RSI International, Inc. (Missouri)
S A Freerks & Associates
S.H. Smith & Company, Inc.
SIU, LLC
Southern Insurance Underwriters, Inc. CMGA
Specialty Insurance
All States
Most- see website for specifics
CA
All States
All States
IL IN OH
AR IA IL IN KS KY MO OK
TN
AR IA IL KS MO NE
All States
CA
AL FL GA SC TN
CA CT DE FL GA IL MA
MD MI MO NJ NY OH PA
RI TN
Banquet Halls
Market
SuiteLife by Venture Programs
TAPCO Underwriters, Inc.
Tejas American General Agency
Topa Insurance Company
Towerstone, Inc.
Trinity E&S Insurance Services, Inc.
U.S. Risk Insurance Group, Inc.
Unisource Program Administrators
USG Insurance Services, Inc.
W.A. Schickedanz Agency, Inc.
Wholesale Connection Insurance Services
Yates & Associates Insurance Services
Bars/Night Clubs
States
Available
All States
AL CA DC DE FL GA LA
MD MS NC NH NJ NY OH
OR PA SC TN TX VA VT WA
TX
CA
Most States
AZ CA NV OR
All States
All except Monopolistic
All States
IL MO
CA VT
CA
Bars/Night Clubs
Market
ACE Westchester Specialty--Property
All Risks, Ltd.
AmWINS Group, Inc.
Anderson & Murison, Inc.
Bass Underwriters
Brecht & Associates
Burns & Wilcox
Camford National Insurance Brokers, LLC.
Crusader Insurance Company
Executive Perils
Gorst Co.
Gray-Stone & Company, Inc.
IMS/London American
Indemnity Excess & Surplus Agency
Insential, Inc.
IPC
J.M. Wilson
Jacobs & Associates
States
Available
MA RI
DE MD NJ PA
AZ CA
All States
CT
TN TX UT VA WA
All States
All States
CA
TX
NY SC TX
CA
All States
TX
All States
All States
All States
CA
All States
CA
NJ NY PA
All States
CA
Most States
TN TX
AZ ID OR WA
All States
All States
All States
AZ CA NV
All States
PA SC TN VA WI WV
OH
Market
Jimcor Agencies
McClelland and Hine, Inc.
Midlands Management of Texas, Inc.
National Insurance Underwriters
Nautilus Insurance Co. & Great Divide Ins. Co.
NIF Group
Partners Specialty Group, LLC
Property Risk Services (AmWINS)
Quaker Special Risk
Quirk & Company
RCA Insurance Group (and Taverns)
SIU, LLC
Specialty Insurance (and Taverns)
Towerstone, Inc.
Unifax Insurance Systems, Inc.
Western Pinnacle Insurance Services
Westrope General Agency (WGA)
Westrope Insurance Managers of Florida, LLC
States
Available
All States
PA RI WV
CA
AK AZ CA HI NV TX
Most States
TX
Most States
All States
FL GA LA TN
All States
All States
AZ CA NV
CA
All States
MA
TX UT WA
All States
TX
All States
All States
Most States
LA NM OK OR TX WA
CA
All States
All States
IL IN OH
TN
AR IA IL KS MO NE
All States
CA
AL FL GA SC TN
CA CT DE FL GA IL MA
MD MI MO NJ NY OH PA
RI TN
TX
Most States
AZ CA NV OR
All States
CA
All States
IL MO
AZ CA CO ID MT NM NV
OR UT WY
CA IA IL KS MO NE
FL
CA VT
CA
Bed & Breakfasts
Market
All Risks, Ltd.
Appleby & Sterling
Bass Underwriters
Brecht & Associates
Burns & Wilcox
Executive Perils
Gorst Co.
Gridiron Insurance Underwriters
GSS Insurance Services
IMS/London American
Insential, Inc.
IPC
J.M. Wilson
Jacobs & Associates
Jimcor Agencies
McGowan Program Administrators
Bed & Breakfasts
States
Available
MA RI
DE MD NJ PA
CT
TN TX UT VA WA
All States
CA
AZ CA NV
TX
AZ CA
NY SC TX
CA
TX
All States
All States
CA
All States
NJ NY PA
All States
CA
AL CA CO FL GA IL LA MS
NC NJ NV NY OR PA SC
TX WA
CA
TN TX
All States
All States
AZ CA NV
All States
PA SC TN VA WI WV
OH
All States
PA RI WV
CA
AK AZ CA HI NV TX
Most States
TX
All States
All States
NIF Group
All States
FL GA LA TN
All States
AZ CA NV
CA
All States
MA
TX UT WA
TX
All States
Most States
Philadelphia Insurance Companies
Promont Specialty (GL & Liquor only)
Quirk & Company
All States
All States (no GL in LA)
LA NM OK OR TX WA
CA
All States
All States
Market
SIU, LLC
Towerstone, Inc.
Trivedi-Capacity Associates, LLC
States
Available
IL IN OH
TN
AR IA IL KS MO NE
All States
CA
AL FL GA SC TN
All States
TX
Most States
AZ CA NV OR
Most States
All States
All States
IL MO
CA VT
CA
Breweries/Micro
Market
All Risks, Ltd.
Appleby & Sterling
Bass Underwriters
Brecht & Associates
Burns & Wilcox
States
Available
MA RI
DE MD NJ PA
All States
CT
All States
CA
AZ CA NV
AZ CA
NY SC TX
CA
TX
All States
All States
CA
All States
Executive Perils
Gorst Co.
Insential, Inc.
IPC
J.M. Wilson
NJ NY PA
All States
CA
All States
All States
All States
AZ CA NV
All States
PA SC TN VA WI WV
OH
All States
PA RI WV
CA
AK AZ CA HI NV TX
Jacobs & Associates
Jimcor Agencies
Casinos
Breweries/Micro
Market
NIF Group
RCA Insurance Group
SIU, LLC
Towerstone, Inc.
States
Available
Most States
All States
FL GA LA TN
AZ CA NV
All States
MA
TX UT WA
All States
TX
All States
All States
CA
All States
All States
IL IN OH
TN
AR IA IL KS MO NE
All States
CA
TX
Most States
AZ CA NV OR
All States
All States
IL MO
CA VT
CA
Casinos
Market
All Risks, Ltd.
American Specialty Ins. & Risk Services, Inc.
AmWINS Group, Inc.
Bass Underwriters
Brecht & Associates
Burns & Wilcox
Executive Perils
Fulcrum Insurance Programs
Hospitality Insurance Solutions
Insential, Inc.
States
Available
MA RI
All States
CT
All States
All States
All States
CA
NY SC TX
CA
TX
All States
All States
NJ NY PA
All States
All States
Most States
All States
Market
J.M. Wilson
Jacobs & Associates
National Specialty Underwriters, Inc.
NIF Group
SIU, LLC
Towerstone, Inc.
States
Available
All States
All States
PA SC TN VA WI WV
OH
All States
CA
AK AZ CA HI NV TX
Most States
All States
All States
AZ CA NV
All States
MA
TX UT WA
TX
All States
All States
CA
All States
All States
IL IN OH
TN
AR IA IL KS MO NE
CA
All States
Most States
AZ CA NV OR
All States
All States
IL MO
CA VT
CA
Caterers
Market
All Risks, Ltd.
Bass Underwriters
Brecht & Associates
Burns & Wilcox
States
Available
MA RI
AZ CA
CT
TN TX UT VA WA
All States
CA
TX
NY SC TX
CA
All States
TX
All States
All States
CA
Dinner Theaters
Caterers
Market
Executive Perils
Gorst Co.
IMS/London American
Insential, Inc.
J.M. Wilson
Jacobs & Associates
Jimcor Agencies
NIF Group
RCA Insurance Group
SIU, LLC
Specialty Insurance (and Delis)
Towerstone, Inc.
States
Available
All States
NJ NY PA
All States
CA
Most States
TN TX
All States
All States
All States
All States
PA SC TN VA WI WV
OH
All States
PA RI WV
CA
AK AZ CA HI NV TX
Most States
All States
All States
All States
FL GA LA TN
All States
AZ CA NV
CA
All States
MA
TX UT WA
TX
All States
All States
CA
All States
All States
IL IN OH
AR IA IL IN KS KY MO
OK TN
AR IA IL KS MO NE
All States
CA
AL FL GA SC TN
CA CT DE FL GA IL MA MD
MI MO NJ NY OH PA RI TN
TX
CA
Most States
AZ CA NV OR
All States
All States
IL MO
CA VT
CA
Market
All Risks, Ltd.
Bass Underwriters
Market
Brecht & Associates
Burns & Wilcox
Executive Perils
Gorst Co.
IMS/London American
Insential, Inc.
J.M. Wilson
Jacobs & Associates
Jimcor Agencies
States
Available
MA RI
DE MD NJ PA
CT
All States
All States
CA
NY SC TX
States
Available
CA
TX
All States
All States
CA
All States
CA
NJ NY PA
All States
CA
TN TX
All States
All States
All States
All States
PA SC TN VA WI WV
OH
All States
PA RI WV
CA
AK AZ CA HI NV TX
Most States
All States
NIF Group
All States
FL GA LA TN
AZ CA NV
All States
MA
TX UT WA
TX
All States
Most States
SIU, LLC
Towerstone, Inc.
All States
CA
All States
All States
IL IN OH
TN
AR IA IL KS MO NE
CA
AL FL GA SC TN
TX
Most States
Dinner Theaters
Market
Gentleman’s Clubs
States
Available
AZ CA NV OR
All States
CA
All States
IL MO
OR UT WY
CA VT
CA
Gentleman’s Clubs
Market
All Risks, Ltd.
AmWINS Group, Inc.
Bass Underwriters
Brecht & Associates
Burns & Wilcox
Gorst Co.
Executive Perils
IMS/London American
Insential, Inc.
J.M. Wilson
Jacobs & Associates
Jimcor Agencies
NIF Group
States
Available
MA RI
DE MD NJ PA
CT
TN TX UT VA WA
All States
All States
CA
NY SC TX
CA
All States
TX
All States
All States
CA
All States
CA
CA
NJ NY PA
All States
TN TX
All States
All States
All States
All States
PA SC TN VA WI WV
OH
All States
PA RI WV
CA
AK AZ CA HI NV TX
Most States
Most States
All States
FL GA LA TN
All States
All States
AZ CA NV
CA
All States
Market
States
Available
MA
AZ CA CO IA ID IL IN
KS MO MT NE NM NV
OK OR TX UT WA
RCA Insurance Group
All States
TX
All States
CA
All States
All States
IL IN OH
TN
AR IA IL KS MO NE
All States
CA
TX
Most States
AZ CA NV OR
All States
CA
All States
IL MO
CA IA IL KS MO NE
FL GA NC SC
CA VT
CA
SIU, LLC
Towerstone, Inc.
Hotels/Motels
Market
All Risks, Ltd.
AmWINS Group, Inc.
Appleby & Sterling
Bass Underwriters
Brecht & Associates
Burns & Wilcox
CITA Insurance Services
States
Available
MA RI
DE MD NJ PA
AZ CA
All States
CT
TN TX UT VA WA
All States
All States
CA
AZ CA NV
TX
AZ CA
NY SC TX
CA
TX
All States
All States
All States
CA
All States
CA
Hotels/Motels
Market
Executive Perils
Gorst Co.
HCC Specialty (CA)
Hotels & Resorts Insurance Program
– Cita Insurance Services
IMS/London American
Insential, Inc.
IPC
J.M. Wilson
Jacobs & Associates
Jimcor Agencies
Hotels/Motels
States
Available
NJ NY PA
All States
All States
CA
Most States
AL CA CO FL GA IL LA MS
NC NJ NV NY OR PA SC
TX WA
Most States
Most States
All States
TN TX
All States
All States
All States
AZ CA NV
All States
PA SC TN VA WI WV
OH
All States
PA RI WV
Klein Insurance Services, Inc.
All States
KZ Insurance Brokerage, LLC
Motel Insurance Brokers, Inc.
New Empire Group
NIF Group
Quaker Special Risk
Quirk & Company
AZ CA CO LA NV TN
CA
AK AZ CA HI NV TX
Most States
TX
All States
Most States
All States
All States
Most States
FL GA LA TN
All States
All States
AZ CA NV
CA
All States
All States
MA
All States
TX
All States
Sangamon Associates/Hotel Excess
All States
All States
Most States
LA NM OK OR TX WA
CA
All States
All States
IL IN OH
TN
AR IA IL KS MO NE
All States
All States
Market
SIU, LLC
Stonebridge Underwriters, Inc.
Towerstone, Inc.
Travelers
States
Available
CA
AL FL GA SC TN
Most States
All States
TX
Most States
All States
AZ CA NV OR
Most States
All States
UCA General Insurance Services, Inc.
AZ CA ID IL NM NV
OR UT WA
CA
All States
IL MO
OR UT WY
All States
CA IA IL KS MO NE
FL
CA VT
CA
Westrope
Resorts
Market
All Risks, Ltd.
Bass Underwriters
Brecht & Associates
Burns & Wilcox
Executive Perils
Gorst Co.
Hotels & Resorts Insurance Program
– Cita Insurance Services
IMS/London American
Insential, Inc.
States
Available
MA RI
All States
CT
All States
CA
AZ CA
NY SC TX
CA
TX
All States
All States
All States
CA
All States
NJ NY PA
All States
All States
CA
Most States
Most States
All States
TN TX
All States
All States
All States
Resorts
Market
J.M. Wilson
Jacobs & Associates
Jimcor Agencies
Restaurants
States
Available
PA SC TN VA WI WV
OH
All States
PA RI WV
CA
AK AZ CA HI NV TX
Most States
All States
NIF Group
All States
FL GA LA TN
All States
AZ CA NV
All States
MA
TX UT WA
TX
All States
Most States
Quaker Special Risk
SIU, LLC
Towerstone, Inc.
Travelers
Willis Programs, ResortGuard Ins. Program
All States
Most States
CA
All States
All States
IL IN OH
TN
AR IA IL KS MO NE
CA
AL FL GA SC TN
All States
TX
Most States
All States
AZ CA NV OR
All States
All States
IL MO
CA VT
All States
CA
Restaurants
Market
States
Available
MA RI
DE MD NJ PA
AZ CA
All States
Market
Intermediaries, Inc.
All Risks, Ltd.
Alliant Specialty Insurance Services, Inc.
AmWINS Group, Inc.
Appleby & Sterling
Bass Underwriters
Brecht & Associates
Burns & Wilcox
Executive Perils
Gorst Co.
HCC Specialty (CA)
HCC Specialty (MA)
IMS/London American
Insential, Inc.
IPC (includes Food Delivery)
J.M. Wilson
Jacobs & Associates
Jimcor Agencies
KZ Insurance Brokerage, LLC
States
Available Agency
CT
TN TX UT VA WA
All States
CA
All States
CA
AZ CA NV
TX
AZ CA
NY SC TX
CA
All States
TX
All States
All States
CA
All States
CA
NJ NY PA
All States
CA
Most States
CA
Most States
All States
TN TX
AZ ID OR WA
All States
All States
All States
AZ CA NV
All States
PA SC TN VA WI WV
OH
All States
PA RI WV
AZ CA CO LA NV TN
Klein Insurance Services, Inc.
All States
Meadowbrook Insurance Group
CA
AK AZ CA HI NV TX
Most States
All States
Most States
All States
All States
NIF Group
TX
All States
FL GA LA TN
All States
All States
AZ CA NV
CA
All States
MA
TX UT WA
Restaurants
Market
Quaker Special Risk
Quirk & Company
RCA Insurance Group
SIU, LLC
Specialty Insurance
Spas
States
Available
TX
All States
All States
All States
Most States
LA NM OK OR TX WA
CA
All States
All States
IL IN OH
TN
AR IA IL KS MO NE
All States
CA
AL FL GA SC TN
CA CT DE FL GA IL MA MD
MI MO NJ NY OH PA RI TN
All States
All States
TX
CA
Most States
All States
AZ CA NV OR
All States
Market
Brecht & Associates
Burns & Wilcox
Executive Perils
Gorst Co.
IMS/London American
Insential, Inc.
J.M. Wilson
Jacobs & Associates
Jimcor Agencies
AZ CA ID IL NM NV
OR UT WA
NIF Group
CA
All States
IL MO
OR UT WY
All States
CA IA IL KS MO NE
FL GA NC SC
CA VT
CA
Target Market Specialists
Towerstone, Inc.
Travelers
Westrope
Spas
Market
All Risks, Ltd.
American Safety Insurance Services, Inc.
Appleby & Sterling
Bass Underwriters
States
Available
MA RI
CT
All States
All States except CT DE IA
CA
AZ CA NV
TX
NY SC TX
CA
SASSI - Salon & Spa Specialty Insurance
SIU, LLC
Towerstone, Inc.
States
Available
All States
TX
All States
All States
CA
All States
NJ NY PA
All States
All States
CA
Most States
TN TX
All States
All States
All States
All States
PA SC TN VA WI WV
OH
All States
PA RI WV
CA
AK AZ CA HI NV TX
Most States
All States
FL GA LA TN
All States
AZ CA NV
CA
All States
MA
TX UT WA
TX
Most States
All States
CA
All States
All States
IL IN OH
TN
AR IA IL KS MO NE
Most States
CA
AL FL GA SC TN
All States
TX
Most States
AZ CA NV OR
All States
All States
IL MO
CA VT
CA
Special Events
Market
All Risks, Ltd.
AmWINS Group, Inc.
Bass Underwriters
Brecht & Associates
Burns & Wilcox
Special Events
States
Available
MA RI
DE MD NJ PA
AZ CA
CT
TN TX UT VA WA
All States
All States
All States
CA
TX
NY SC TX
CA
All States
TX
All States
All States
CA
All States
Direct Event Insurance
Gorst Co.
HCC Specialty (MA)
IMS/London American
Insential, Inc.
J.M. Wilson
All States
NJ NY PA
CA
Most States
All States
TN TX
AZ ID OR WA
All States
All States
All States
All States
PA SC TN VA WI WV
OH
All States
PA RI WV
All States
CA
AK AZ CA HI NV TX
Jacobs & Associates
Jimcor Agencies
K & K Insurance Group, Inc.
Market
NIF Group
Quirk & Company
SIU, LLC
Towerstone, Inc.
States
Available
Most States
TX
All States
Most States
All States
FL GA LA TN
All States
AZ CA NV
CA
All States
MA
TX UT WA
TX
All States
Most States
All States
LA NM OK OR TX WA
CA
All States
All States
IL IN OH
TN
AR IA IL KS MO NE
All States
CA
AL FL GA SC TN
TX
Most States
AZ CA NV OR
All States
All States
IL MO
CA VT
CA
2012 Hospitality Risks Directory - Alphabetical Directory of Markets
2012 HospitalityCrump
Risks
Directory
Insurance Services, Inc.
Appleby & Sterling
183 Davis St., P.O. Box 1139, Douglas, MA 01516
Phone: 508-476-1990, Fax: 508-476-1991
Email: info@agencyint.com
www.agencyint.com
2251 - A Ward Ave., Simi Valley, CA 93065
Phone: 805-583-9828, Fax: 805-583-9832
Email: mike@applebyandsterling.com
www.applebyandsterling.com
1364 Welsh Rd., Ste. C110, North Wales, PA 19454
Phone: 800-845-4150, Fax: 215-641-1456
Email: submission@insure-mail.com
www.aberdeeninsgrp.com
2251 - A Ward Ave., Simi Valley, CA 93065
Phone: 936-441-5959, Fax: 936-441-5922
Email: hnelson@ashleyga.com
www.ashleyga.com
Abram Interstate Ins. Services, Inc.
- All Offices
See Website for Locations
Headquarters - Roseland, NJ 07068
Phone: 877-247-9772, Fax: 321-757-6147
Email: TheOne@crumpins.com
www.crumpins.com
2211 Plaza Dr., Ste. 100, Rocklin, CA 95765
Phone: 916-780-7000, Fax: 916-780-7181
Email: media@abraminterstate.com
www.abraminterstate.com
8954 Rio San Diego Dr., Ste. 600, San Diego, CA 92108
Phone: 877-66-ATLAS, Fax: 619-814-8914
Email: info@atlas.us.com
www.atlas.us.com
Bass Underwriters
San Francisco: Caroline Barwick - Phone: 415-547-4568
Email: caroline.barwick@acegroup.com
Atlanta: John Lavin - Phone: 678-795-4022
Email: wsgatl.property@acegroup.com
www.acewestchester.com
6951 W. Sunrise Blvd., Plantation, FL 33313
Phone: 954-473-4488, Fax: 954-316-3100
Email: bturgeon@bassuw.com
www.bassuw.com
435 N. Pacific Coast Hwy, Redondo Beach, CA 90277
Phone: 800-829-7330, Fax: 310-372-1903
Email: info@bgsurplus.com
www.bgsurplus.com
1575 Boston Post Rd., P.O. Box 451
Guilford, CT 06437
Phone: 203-453-2859, Fax: 203-453-8859
Email: info@agencyint.com
www.agencyint.com
333 E. Main St., El Cajon, CA 92040
Phone: 800-922-7283, Fax: 619-593-2075
Email: teresa@agostinisurplus.com
www.agostiniwholesale.com
23251 Mulholland Dr., Woodland Hills, CA 91364
Phone: 800-669-9800, Fax: 818-591-9856
Email: dklayman@crusaderinsurance.com
www.crusaderinsurance.com
Direct Event Insurance
1409 S. Lamar, Ste. 1007, Dallas, TX 75215
Phone: 800-481-7950
Email: bwarren@helioscoverage.com
www.directeventinsurance.com
100 American Metro Blvd., Ste. 104, Hamilton, NJ 08619
Phone: 877-530-0111, Fax: 609-538-0661
Email: mail@excelins.com
www.excelins.com
Executive Perils
2966 Commerce Park Dr., Ste. 350, Orlando, FL 32819
Phone: 407-825-9911, Fax: 407-825-9737
Email: info@braishfield.com
www.braishfield.com
11845 W. Olympic Blvd., Ste. 750
Los Angeles, CA 90064
Phone: 310-444-9333 x 145, Fax: 310-444-9355
Email: damienm@eperils.com
www.eperils.com
All Risks, Ltd.
10150 York Rd., 5th Fl, Hunt Valley, MD 21030
Phone: 800-366-5810, Fax: 410-828-8179
Email: hhobbie@allrisks.com
www.allrisks.com
Alliant Specialty Insurance Services, Inc.
P.O. Box 609015, San Diego, CA 92160
Phone: 858-505-4011, Fax: 858-505-4074
Email: marketing@alliantspecialty.com
www.alliantspecialty.com
American Safety Insurance Services, Inc.
100 Galleria Pkwy. SE, Ste. 700, Atlanta, GA 30339
Phone: 800-388-3647, Fax: 770-955-8339
Email: info@amsafety.com
www.amsafety.com
American Specialty Insurance & Risk
Services, Inc.
142 N. Main St., Roanoke, IN 46783
Phone: 260-672-8800, Fax: 260-672-8835
Email: dsmith@amerspec.com
www.amerspec.com
AmWINS Group, Inc. - 50 Offices Nationwide
Headquarters - Charlotte, NC 28210
Phone: 704-749-2700, Fax: 704-943-9000
Email: marketing@amwins.com
www.amwins.com
800 W. Colorado Blvd., Los Angeles, CA 90041
Phone: 323-255-2333, Fax: 323-255-0957
Email: james.mccarthy@andersonmurison.com
Brecht & Associates
1450 Hughes Rd., Ste. 109, Grapevine, TX 76051
Phone: 817-424-5335, Fax: 817-424-3772
Email: jbrecht@brechtassoc.com
www.brechtassoc.com
Burns & Wilcox - All Offices
See website for addresses
Headquarters - Detroit/Farmington Hills
Phone: 248-932-9000, Fax: 248-932-9046
Email: quote@burns-wilcox.com
www.burnsandwilcox.com
1111 E. Touhy Ave., Des Plaines, IL 60018
Phone: 800-768-0040, Fax: 847-296-3362
Email: marketing@foundersinsurance.com
www.foundersinsurance.com
Founders is a multi-state specialty carrier, serving the insurance
needs of independent agents for over 100 years. Founders specializes in writing liquor liability and general liability coverages for the
hospitality industry. Founders is rated “A-” or “Excellent” by A.M.
Best, and is a member of the Utica National Insurance Group.
1600 Aspen Commons, Middleton, WI 53562
Phone: 608-829-4208, Fax: 608-829-7408
Email: marketing-agency@capitol.net
www.capitol.net
681 S. Parker St., Orange, CA 92868
Phone: 714-939-7420, Fax: 714-939-7437
Email: sbaxter@citainsurance.com
www.citainsurance.com
9310 Topanga Canyon Blvd., Chatsworth, CA 91311
Phone: 818-507-1980, Fax: 818-545-3818
Email: mail@compasseands.com
11235 SE 6th St., Bellevue, WA 98004
Phone: 425-453-5157, Fax: 425-454-8233
Email: drowland@fulcrumprograms.com
www.fulcrumprograms.com
Fulcrum is an insurance program administrator and specialty wholesale broker dedicated to serving the insurance and risk
management needs of select industries. We specialize in programs
for hospitality and real estate including apartments, condos, hotels,
resorts, casinos and more.
2012 Hospitality Risks
Directory
Gorst Co.
9310 Topanga Canyon Blvd., Chatsworth, CA 91311
Phone: 818-507-0900, Fax: 818-507-1133
Email: mail@gorst.com
www.gorst.com
26451 Curtiss Wright Pkwy, Ste. 103
Cleveland, OH 44143
Phone: 216-797-9700, Fax: 216-797-9970
Email: kennethkukral@intlxs.com
www.internationalexcess.com
P.O. Box 8201, Calabasas, CA 91372-8201
Phone: 818-591-3010, Fax: 818-591-3066
Email: lionheartins@msn.com
275 E. Hillcrest Dr., Ste. 250, Thousand Oaks, CA 91360
Phone: 805-494-4440, Fax: 805-494-8798
Email: info@gray-stone.com ; hstone@gray-stone.com
www.gray-stone.com
IPC
P.O. Box 1150, Gardnerville, NV 89410
Phone: 775-782-6655, Fax: 775-782-6654
Email: chris@ipc-nv.com
www.ipc-nv.com
6951 W. Sunrise Blvd., Ste. 104, Plantation, FL 33313
Phone: 954-473-3728, Fax: 954-316-3132
Email: info@gridironins.com
www.gridironins.com
P.O. Box 402569, Hesperia, CA 92340
Phone: 760-947-5500, Fax: 909-494-7854
Email: info@gssinsurance.com
www.gssinsurance.com
7234 W. North Ave., Elmwood Park, IL 60707
Phone: 800-800-1704, Fax: 708-452-1777
Email: info@izzoinsurance.com
www.izzoinsurance.com
J.M. Wilson
P.O. Box 192, Stockton, CA 95201
Phone: 209-948-8108, Fax: 209-465-3843
Email: angela@mjhallandcompany.com
www.mjhallandcompany.com
8036 Moorsbridge Rd., Portage, MI 49024
Phone: 800-282-8113, Fax: 269-327-2620
Email: cbaldwin@jmwilson.com
www.jmwilson.com
Wholesale Broker/MGA with 60+ markets with emphasis on Bar/
Restaurant/Nightclub risks. In business since 1973, writing business
in AK, AZ, CA, NV, TX & LA
Jacobs & Associates
8300 Dow Circle, Strongsville, OH 44136
Phone: 440-625-2690, Fax: 440-625-2731
Email: jim@jacobsnow.com
www.jacobsnow.org
222 S. Riverside Plaza, Ste. 2340, Chicago, IL 60606
Phone: 312-559-9348, Fax: 312-559-0930
Email: joem@maxib.com
www.maxbrokerage.com
HCC Specialty (CA)
50 California St, 13th Fl, San Francisco, CA 94111
Phone: 415-277-2642, Fax: 415-288-0771
Email: amccarthy@hcc.com
www.hcc.com ; www.hccsu.com (Special Events)
HCC Specialty (MA)
401 Edgewater Pl., Ste. 400, Wakefield, MA 01880
Phone: 800-927-6306, 781-994-6001
Email: mmatheson@hcc.com
www.hccspecialty.com
P.O. Box 700930, San Antonio, TX 78270
Phone: 210-366-2500, Fax: 210-366-2407
Email: gil@mhi-tx.com
www.mhi-tx.com
100 Broadway, Ste. 2D, Sterling, CO 80751
Phone: 866-286-5889, Fax: 970-522-7792
Email: gdennington@hospitalityins.com
www.hospitalityins.com
Hotels & Resorts Insurance Program –
Cita Insurance Services
681 S. Parker St., Ste. 300, Orange, CA 92868
Phone: 714-939-7420, Fax: 714-939-7437
Email: sbaxter@citainsurance.com
www.citainsurance.com
6641 W. Broad St., Ste. 300, Richmond, VA 23230
Phone: 804-289-2700, Fax: 804-549-5087
Email: info@jamesriverins.com
www.jamesriverins.com
Jimcor Agencies
60 Craig Rd., Montvale, NJ 07645
Phone: 201-573-8200, Fax: 201-573-8820
Email: dchiapperino@jimcor.com
www.jimcor.com
IMS/London American
11000 Richmond Ave., Ste. 600, Houston, TX 77042
Phone: 713-243-4360 , Fax: 713-977-7606
Email: Larry@ImsLondonAmerican.com
www.ImsLondonAmerican.com
K & K Insurance Group, Inc.
1712 Magnavox Way, Ft. Wayne, IN 46804
Phone: 877-648-6404, Fax: 260-459-5502
Email: kk_general@kandkinsurance.com
www.eventinsurance-kk.com
1500 NW Bethany Blvd., Ste. 235, Beaverton, OR 97006
Phone: 503-526-9700 , Fax: 503-626-2260
Email: submissions@ies-xs.com
www.ies-xs.com
365 W. Passaic St., Ste. 260, Rochelle Park, NJ 07662
Phone: 201-880-1891, Fax: 201-880-1895
Email: inquiry@insurancemultiplex.com
www.insurancemultiplex.com
Old Forge Ctr, 20595 Lorain Rd.
Fairview Park, OH 44126
Phone: 440-333-6300, Fax: 440-333-3214
Email: syoung@mcgowaninsurance.com
www.mcgowaninsurance.com
MPA is a Managing General Underwriter and Program Manager
that designs, administers and markets highly-specialized programs
of insurance. These programs of insurance are available exclusively
through MPA on a nationwide basis. All programs are offered on
admitted paper through a variety of America’s leading “A” rated
insurance companies.
Meadowbrook Insurance Group
26255 American Dr., Southfield, MI 48034
Phone: 248-358-1100, Fax: 248-358-1614
Email: pgajewski@meadowbrook.com
www.meadowbrook.com
Insential, Inc.
See Website for Locations in IL, NY, TX
Headquarters - Plano TX 75024
Phone: 888-571-6160
Email: liquorsubmissions@insential.com
www.insential.com
Klein Insurance Services Inc.
One Garret Mountain Plaza, Woodland Park, NJ 07424
Phone: 888-870-2997, Fax: 973-754-0600
Email: jonathanK@kis-hospitality.com
www.kis-hospitality.com
P.O. Box 794878, Dallas, TX 75379
Phone: 972-588-2000, Fax: 972-588-2020
Email: jcaldwell@midmantx.com
www.midlandsmgt.com
Program administrator for Westport (Swiss Re) and Praetorian.
Admitted paper. Pkg and Mono-line.
2012 HospitalityQuaker
Risks
Directory
Special Risk
New Empire Group
25 Nassau Lane, Island Park, NY 11558
Phone: 516-431-8300, Fax: 516-431-5351
Email: jimo@newempiregroup.com
www.newempiregroup.com
See Website for Locations in NJ, NY, FL, MA
Headquarters - Eatontown, NJ 07724
Phone: 800-447-4180, Fax: 732-223-9072
Email: fwalsh@qsr-insurance.com
www.quakerspecialrisk.com
NIF Group
2850 W. Golf Rd., Ste. 800, Rolling Meadows, IL 60008
Phone: 800-446-2100 x 557, Fax: 847-806-6282
Email: contactus@monitorliability.com
www.monitorliability.com
Monitor offers an Employment Practices Liability (EPL)
program specifically for the hospitality industry including
restaurants, hotels & motels, resorts, bed & breakfasts, banquet
halls and caterers.
Quirk & Company
30 Park Ave., Manhasset, NY 11030
Phone: 516-365-7440, Fax: 516-365-7392
Email: marketing@nifgroup.com
www.nifgroup.com
P.O. Box 792030, San Antonio, TX 78279
Phone: 800-299-9421, Fax: 210-340-4075
Email: rquirk@quirkco.com
www.quirkco.com
91 Cedar St., Milford, MA 01757
Phone: 508-634-2902, Fax: 508-634-2930
Email: atobin@massagent.com
www.massagent.com
1835 Banks Rd., Margate, FL 33063
Phone: 800-261-5177, Fax: 516-302-8951
Email: pwoodard@morstan.com
www.morstan.com
6363 Katella Ave., Cypress, CA 90630
Phone: 800-222-5582, Fax: 714-228-7838
Email: marketing@pacificexcess.com
www.pacificexcess.com
Motel Insurance Brokers, Inc.
Pacific Excess Insurance Marketing is a Wholesaler/General
Agent with access to many Standard, Surplus Lines and
Workers’ Compensation Markets in 19 states.
719 Rodel Cove, Ste. 1031, Lake Mary, FL 32746
Phone: 866-387-8883, Fax: 800-466-5074
Email: info@motelinsurancebrokers.com
www.motelinsurancebrokers.com
1792 Woodstock Rd., Bldg. 200, Roswell, GA 30075
Phone: 770-971-9975, Fax: 770-971-7608
Email: jmurrey@nsoins.com
www.nsoins.com
800 Yamato Rd., Ste. 100, Boca Raton, FL 33431
Phone: 800-338-2680 x 507, Fax: 561-226-1123
Email: commercialbiz@niuw.com
www.niuw.com
10900 NE 4th St., Ste. 1100
Bellevue, WA 98004
Phone: 425-450-1090, Fax: 425-450-1026
Email: info@nsui.com
www.nsui.com
7233 E. Butherus Dr., Scottsdale, AZ 85260
Phone: 480-951-0905, Fax: 480-951-9730
Email: bmckrill@nautilus-ins.com
www.nautilusinsgroup.com
NeitClem Wholesale Ins. Brokerage, Inc.
7442 N. Figueroa St., Los Angeles, CA 90041
Phone: 323-258-2600, Fax: 323-258-2676
Email: jcenteno@neitclem.com
www.neitclem.com
160 N. Riversice Dr., Ste. 200
Anaheim Hills, CA 92808
Phone: 714-820-4606, Fax: 714-820-4503
Email: submissions@networkeands.com
www.networkeands.com
3104 Creekside Village Dr., Ste. 501, Kennesaw, GA 30144
Phone: 770-424-5770
Email: jonathan@ram-insurance.com
www.ram-insurance.com
P.O. Box 803143, Dallas, TX 75380
Phone: 972-239-1458, Fax: 972-233-3487
Email: corky.ellis@patriotnational.com
www.patriotnational.com
5001 Spring Valley Rd., Ste. 255W, Dallas, TX 75244
Phone: 972-774-0110, Fax: 972-341-8250
Email: malcolm_coffee@rpsins.com
www.rpsins.com
P.O. Box 485, Burlington, VT 05402
Phone: 800-639-7526, Fax: 802-652-6245
Email: programs@peoples.com
www.peoples.com/insurance
One Bala Plaza, Bala Cynwyd, PA 19004
Phone: 800-873-4552, Fax: 610-617-7940
Email: phlysales@phlyins.com
www.phly.com
Professional Liability Insurance Svcs, Inc. Underwriting Facilities
91 Fieldcrest Ave., 2nd Fl, Edison, NJ 08818
Phone: 908-766-4300, Fax: 732-346-0131
Email: tspinner@prsins.com
www.amwins.com
111 N. Canal, Ste. 801, Chicago, IL 60606
Phone: 312-262-3331, Fax: 312-262-3301
Email: mniemann@promontspecialty.com
www.promontspecialty.com
MGA/PA with admitted and non-admitted programs for
Restaurants, Taverns, Bar, Nightclubs, Social/Fraternal Clubs
and additional hospitality risks.
2492 Walnut Ave., Ste. 250, Tustin, CA 92780
Phone: 800-310-1303, Fax: 800-842-3076
Email: ricins@ric-ins.com
www.ric-ins.com
100 Tournament Dr., Ste. 214, Horsham PA 19044
Phone: 484-322-0400, Fax: 484-322-0401
Email: mcaviston@psgins.com
www.www.psgins.com
Promont Specialty
1333 Broad St., Clifton, NJ 07013
Phone: 800-526-0147 x 239
Email: mmaher@rca-insurance.com
www.rca-insurance.com
5802 Thunderbird, Bldg 10, Ste. 100
Lago Vista, TX 78645
Phone: 800-761-7547, Fax: 512-327-5834
Email: underwriting@plisinc.com
www.plisinc.com
RCA Insurance Group
P.O. Box 1060, Noblesville, IN 46061
Phone: 800-752-8402, Fax: 317-776-6891
Email: info@roushins.com
www.roushins.com
273 Clarkson Rd., Ste. 102, Ellisville, MO 63011
Phone: 636-391-4841, Fax: 636-391-2115
Email: newquotes@rsimo.com
www.rsimo.com
911 Park Ave., St. Louis, MO 63104
Phone: 314-436-2682, Fax: 314-436-1532
Email: sfreerks@safains.com
www.safains.com
- 7 Offices Nationwide
Headquarters - Hartford, CT 06103
Phone: 860-561-3600, Fax: 800-329-7648
Email: info@shsmith.com
www.shsmith.com
2012 Hospitality Risks
Directory
Towerstone, Inc.
Sangamon Associates/Hotel Excess
65 S. Main St., Ste. A300, Pennington, NJ 08534
Phone: 609-818-9534, Fax: 609-818-9535
Email: bcleave@sangamonassociates.com
www.hotelexcess.com
14185 Dallas Pkwy, Ste. 1000, Dallas, TX 75254
Phone: 972-725-2100, Fax: 972-725-2101
Email: info@towerstonecorp.com
www.towerstonecorp.com
300 W. Main St., Belleville, IL 62220
Phone: 618-233-0644, Fax: 618-233-0672
Email: sales@waschickedanz.com
www.waschickedanz.com
SASSI - Salon & Spa Specialty Insurance
Travelers
21 Maple Ave., Bay Shore, NY 11706
Phone: 888-823-9380, Fax: 631-666-7646
Email: info@brownyard.com
www.sassiagency.com
Contact your local Commercial Accounts
Representative for more information.
www.travelers.com
600 W. Shaw Ave., Ste. 400, Fresno, CA 93704
Phone: 559-221-2050, Fax: 559-225-2066
Email: fresno@ampinn.com
www.ampinn.com
SIU, LLC
700 N. Brand Blvd., Ste. 300, Glendale, CA 91203
Phone: 818-547-1333, Fax: 818-547-4450
Email: jlewis@siumanagers.com
www.siumanagers.com
79-301 Country Club Dr., Ste. 200
Bermuda Dunes, CA 92203
Phone: 760-360-4100, Fax:760-360-0055
Email: mstith@trinityinsurance.com
www.trinityinsurance.com
1100 Walnut St., Ste. 3200, Kansas City, MO 64106
Phone: 816-842-8222, Fax: 816-842-3081
Email: info@westrope.com
www.westrope.com
4500 Mansell Rd., Alpharetta, GA 30022
Phone: 800-568-1700, Fax: 678-498-4610
Email: marketing@siuins.com
www.siuins.com
Specialty Insurance
1610 Route 88 Ste. 102, Brick, NJ 08724
Phone: 732-701-8900, Fax: 732-458-3728
Email: mwatters@specialtyagency.com
www.specialtyagency.com
(Addt’l cvg listing: EPLI for Hotel/Motel/Restaurant)
One International Blvd., Mahwah, NJ 07495
Phone: 201-661-2411, Fax: 201-661-7383
Email: trivedi@tcacoverage.com
www.tcacoverage.com/umbrella_program_Trivedi_2010.pdf
Stonebridge Underwriters, Inc.
6425 Sycamore Ct. N, Maple Grove, MN 55369
Phone: 877-965-0123, Fax: 651-365-0124
Email: bmeyer@stonebridgeuw.com
www.stonebridgeuw.com
10210 N. Central Expy, Ste. 500, Dallas, TX 75231
Phone: 800-232-5830, Fax: 214-265-4976
Email: julieb@usrisk.com
www.usrisk.com
TAPCO Underwriters, Inc. is the Logical Choice. Through
TAPCO’s exclusive call-center service model, quotes and applications are delivered and coverage can be bound, all within
minutes, and all delivered to your e-mail inbox—before you
even hang up the phone. Policy issuance and renewal is just as
easy. Call. Quote. Bind. It’s as easy as that!
6363 Katella Ave., Cypress, CA 90630
Phone: 800-222-5582, Fax: 714-228-7855
Email: marketing@ucageneral.com
www.ucageneral.com
UCA General Insurance is a Managing General Agent writing
Program Business in 9 states. Our primary focus is on Property
& Casualty Business, specializing in Restaurants, Hotels &
Motels, Condos & HOAs, Shopping Centers and more.
23251 Mulholland Dr., Woodland Hills, CA 91364
Phone: 800-669-9800, Fax: 818-591-9856
Email: dklayman@crusaderinsurance.com
www.crusaderinsurance.com
255 NW Blue Pkwy, Ste. 200, Lee’s Summit, MO 64063
Phone: 816-246-1200, Fax: 816-246-1290
Email: dmcclendon@westrope.com
www.westrope.com
5959 Topanga Canyon Blvd., Ste. 250
Woodland Hills, CA 91367
Phone: 818-716-9800, Fax: 818-716-9899
www.wcis-ins.com
Willis Programs, ResortGuard Ins. Program
30030 N. Rocky Point Dr. W, Ste. 770, Tampa, FL 33607
Phone: 813-712-7017, Fax: 813-712-7001
Email: willisnhprograms@willis.com
www.resortguard.com
P.O. Box 25133, Santa Ana, CA 92799
Phone: 800-660-1125, Fax: 800-378-8588
Email: jyates@yates-assoc.com
www.yates-assoc.com
1620 La Jaita Dr., Ste. 300, Cedar Park, TX 78613
Phone: 512-346-0030, Fax: 512-342-2803
Email: submissions@taga1.com
www.taga1.com
3665 Bee Ridge Rd., Ste. 214, Sarasota, FL 34233
Phone: 941-308-1918, Fax: 877-817-8099
Email: Lana.Potts-Buri@UnisourcePA.com
www.UnisourcePA.com
1800 Avenue of the Stars, 12th Fl, Los Angeles, CA 90067
Phone: 800-949-6505, Fax: 800-949-6505
Email: topa-marketing@topa-ins.com
www.topains.com
510 Vonderburg Dr., Ste. 214, Brandon, FL 33511
Phone: 813-315-3020, Fax: 813-315-3039
Email: agoldfarb@westrope.com
www.westrope.com
3060 S. Church St., Burlington, NC 27216
Phone: 800-334-5579, Fax: 336-584-8880
Email: Jhenderson@GoTAPCO.com
www.GoTAPCO.com
Westrope, the 8th largest wholesale brokerage in the US,
specializes in Property, Casualty, WC, and Professional.
Westrope Insurance Managers of FL and Westrope General
Insurance Agency CA have binding authority and focus on
small to mid-size business and specialty programs. Classes:
Contractors, Habitational, Restaurants, Bars,Taverns.
1301 Wrights Lane East, West Chester, PA 19380
Phone: 800-282-6247 x 247, Fax: 610-692-5977
Email: Marketing@suitelifeins.com
www.Suitelifeins.com
TAPCO Underwriters, InC.
Westrope
1000 Town Center Wy, Ste. 300, Canonsburg, PA 15317
Phone: 800-886-3897, Fax: 724-265-5751
Email: kskender@usgins.com
www.usgins.com
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E: East, M: Midwest, N: National, SC: South Central, SE: Southest, W: West
Abacus Insurance Brokers, Inc.
www.abacus.net
W27
Abram Interstate
www.abraminterstate.com
W22
ACE Insurance
www.acelimited.com W15, SC15, SE15, E15, M15
Agency Ideas
www.agencyideas.com
N17
W18
Applied Underwriters
www.applieduw.com W68, SC56, SE56, E56 M56
Astonish Results
www.astonishresults.com
W12, SC12, SE12, E12, M12
California Earthquake Authority
www.calquake.com
W2
Century National
www.cnico.com
W19
Chubb Corporate
www.chubb.com
W7, SC7, SE7, E7, M7
Crump Insurance Services
www.crumpins.com
N3
First American Specialty Insurance Company
www.firstam.com
W17
Gateway Specialty Insurance
www.gatewayspecialty.com
W24, SC14, SE16, E16, M14
Golden Bear Insurance Company
www.goldenbear.com
W29
JM Wilson
www.jmwilson.com
SE17, M13
Klein Insurance Services
www.kis-hospitality.com
N2
McClelland & Hine
www.mhi-tx.com
SC17
Midlands Management Corporation
www.midlandsmgmt.com
N12
Monarch E & S Insurance Services
www.monarchexcess.com
W21
Pacific Gateway Insurance Services
www.pgiainsurance.com
W3
PersonalUmbrella.Com
www.personalumbrella.com
W5, SC5, SE5, E5, M5
www.phly.com
W11, SC11, SE9, E11 M11
Quirk & Company
www.quirkco.com
SC17
RiskMeter.com
www.riskmeter.com
N7
St. Johns Insurance Company
www.stjohnsinsurance.com
SE11
UCA General Insurance Services
www.ucageneral.com
W25
Universal North America
www.uihna.com
W13, SC3, SE3
Vantiv
www.vantiv.com/ij
N15
Victor O. Schinnerer & Co.
www.schinnerer.com
W23, SC2, SE2, E2, M2
Webcetera
www.webcetera.com
N4, N5
Western World
www.westernworld.com
E3, M3
Zurich Insurance Company
www.zurichna.com W67, SC55, SE55, E55, M55
IDEA EXCHANGE
Closing Quote
Last year’s weather-related losses in the U.S. and around globally eerily resemble the kind of volatility found in our recent
banking crisis, exacerbated by the European debt crisis. This
may be an imperfect metaphor, but what happens in Japan and
New Zealand impacts the cost of insurance in Amarillo, Texas.
Last year, our industry experienced four of the 16 largest
insurance losses ever recorded. The legacy of 2011 remains with
us in the form of increasing reinsurance costs. U.S. storms
accounted for $ 21.3 billion, Thailand floods $10 billion, New
Zealand earthquake $13 billion, and the Japan earthquake $37.5
billion, adding up to a total $81.8 billion loss of capital.
We’re observing another unforgiving aspect of a global economy. Industry accident year combined ratios are continuing to
deteriorate, positive loss reserve development is reversing and
we might as well become accustomed to functioning in a low
interest rate environment. This market signal is unmistakable.
Message Discipline
The signs of a firming market appear to be driven by a combination of firming reinsurance terms and U.S. insurers deciding
they need more rates across their entire risk portfolio. The challenge is translating strategic underwriting intent into consumer
education. How this is internalized and executed at the field
underwriter level is anyone’s guess. If what the agents are telleering across the market, it’s easy to see the telltale signs ing me is true, there is a need for greater message discipline.
There is also a sobering cost to inaction. Rates will rise and
of a market in transition, the completion of one cycle
business will change hands. There will also be increased tension
and the beginning of another. This time around, dusting off
between agents and those companies who lack the front line
the old underwriting “hard market” play book may be a very
communication skills to facilitate a meaningful transition. Hard
bad idea.
skills matter in our business; soft skills matter even more durDuring the recent Independent Insurance Agents of Texas
ing times of change.
(IIAT) Joe Vincent Management Seminar, I listened to a
Independent agents have already begun making assessments
range of agent observations on how different companies are
of carrier relationships and have strong contingency plans for
grappling with a pressing need for rate nourishment. Some
addressing deviant behavior head on. They
of these observations reflect a need to
would readily agree that rate nourishment
repair damaged balance sheets overnight
Regional carriers
is a good thing, even during tough economic
at the expense of valued independent
times. They also understand the importance
agency relationships. Fortunately there
will play a more
are those who understand any hardensignificant role in the of company partners managing their coastal
and RMS-modeled interior aggregates.
ing of the market will likely be short in
new market cycle.
Understanding this, the underwriting comduration in comparison to previous marmunity should ask, “Are we working as
ket transitions. I suspect this will throw
partners to protect customer balance sheets or are we focused
a monkey wrench in the plans of those intending to execute
“bleeding edge” rate-taking strategies. Never mind the invita- principally on our own?” The short answer is, both! We cannot
be successful over the long term if we don’t balance these seemtion for regulatory intervention.
We should always remind ourselves of the global nature of ingly competing objectives.
Regional carriers will play a more significant role in the new
our business. While the industry remains very well capitalmarket cycle and are sufficiently poised to grow. The leaner,
ized, competition remains significant and pressures on the
more agile carrier is never deluded into believing that it can
financials of reinsurance markets and domestic U.S. insurexact a regressive tax when only a responsible rate is needed. I
ance companies are very real. Reinsurance pricing, whether
predict an inverted food chain scenario in which unbridled rate
treaty or facultative, tends to roll down hill. We should all
taking is met with the power of choice at the agency account
take responsibility for educating consumers on the macroeconomic forces at work. Direct writer advertising that dom- manager’s desk, then at the point of sale.
inates the media is influencing how consumers think about
our business. Basic economics is not a part of the message.
Ladner is a regional president for State Auto Insurance Co.
The Power of Choice
P
By Gerald F. Ladner
Why insure people who would
scale 100-story structures?
Because they’re building
the country’s future.
When Zurich arrived in the US in late 1912, our goal was simple: to help
a growing country grow more. We offered workers’ compensation
insurance, enabling industry to grow exponentially. We insured the 1933
Chicago World’s Fair, which in turn brought fresh capital into the city
during the Great Depression. And we provided insurance coverage to
factories at the dawn of the assembly line, helping local companies to
become global companies. The past 100 years have been nothing short
of extraordinary. And we can’t wait to see what the next 100 will bring.
Insuring success since 1912. Visit zurichna.com/100
In the United States, insurance coverages are underwritten by individual member companies of Zurich in North America, including Zurich American Insurance Company. Certain coverages are not
available in all states. Some coverages may be written on a non-admitted basis through licensed surplus lines brokers. Prior results do not guarantee a similar outcome. Risk engineering services are
provided by Zurich Services Corporation.
ROCK-SOLID FINANCIAL STRENGTH
SUPERIOR CLAIMS SERVICES
UNRIVALED CUSTOMER SUPPORT
INNOVATIVE RISK FINANCING
UNDERWRITING ONE RISK AT A TIME
DO ONE THING. DO IT
T BETTER THAN AN
NYONE ELSE.
IT’S HOW WE MAINTAIN A CUSTOMER RETENTION RATE OF OVER 90 PERCENT. At Applied Underwriters,® workers’
compensation is all we do. This allows us to provide the deep resources and expertise to handle your claims with precision and speed.
And rather than send you all over the globe for answers, we give you one number to call – your direct line to a dedicated team in Omaha that
understands your company’s unique needs.
Experience our way of doing things. Just one company, with one focus, and the hardest-working workers’ compensation insurance around.
Most classes. All states. Call (877) 234-4450 or visit www.auw.com for more information.
©2010 Applied Underwriters, Inc. A Berkshire Hathaway Company. EquityComp patent pending.
Applied Experience. Applied Intelligence.

Insurance Journal Magazine

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