FUTURE LEADERS - SPECIAL REPORTS PANDEMIC RISK MANAGEMENT - Business Insurance
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VACCINE MANDATES: Employers consider compulsory COVID-19 shots - PAGE 4
JUNE 2021
SPECIAL REPORTS
PANDEMIC RISK
MANAGEMENT
PAGE 27
WORKERS COMP
PAGE 31
PROPERTY
INSURANCE
PAGE 35
FUTURE
LEADERS
INTERVIEWS WITH
ALL 40 AWARD
WINNERS OF 2021
PAGE 14
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PRESIDENT
Steve Acunto
(Greenwich)
sa@businessinsurance.com
PUBLISHER
Keith Kenner
(Chicago)
kkenner@businessinsurance.com
COVER STORY
EDITOR Business Insurance profiles
Gavin Souter
(Chicago)
the winners of its 2021
gsouter@businessinsurance.com Break Out Awards, which
DEPUTY EDITOR honor potential future leaders
Claire Wilkinson in the U.S. insurance industry.
(New York)
cwilkinson@businessinsurance.com The 40 honorees from across
the country represent some of
ASSISTANT EDITOR
Louise Esola the most promising individuals
(New Orleans) working in insurance and risk
lesola@businessinsurance.com
management. PAGE 14
SENIOR REPORTER
Judy Greenwald
(San Jose)
jgreenwald@businessinsurance.com
REPORTER
Angela Childers
(Chicago)
INSIDE
achilders@businessinsurance.com
REPORTER
Matthew Lerner
(New York)
SPECIAL REPORT: PANDEMIC RISK MANAGEMENT
mlerner@businessinsurance.com In response to high-profile event cancellations due to the pandemic, contingency
COPY CHIEF
insurers have cut capacity and raised rates. Meanwhile, the hard-hit restaurant sector
John Obrecht has adopted new ways of doing business, creating new exposures. PAGE 27
(Chicago)
jobrecht@businessinsurance.com
COPY EDITOR
Brian Gaynor
(Portland)
SPECIAL REPORT: WORKERS COMPENSATION
bgaynor@businessinsurance.com Employers and insurers increasingly are realizing that physical injuries often include
ART DIRECTOR
a mental component that can lead to prolonged claims and higher costs; early
Jeremy Werling intervention and treatment are key. PAGE 31
(Cincinnati)
jwerling@businessinsurance.com
DIRECTOR OF RESEARCH,
PLANNING AND INSIGHTS
NEWS ANALYSIS WORKERS COMP
More employers are considering mandating COVID-19
Andy Toh
(Chicago) FOR BREAKING NEWS vaccinations for returning workers. PAGE 4
atoh@businessinsurance.com
COVERAGE, VISIT
MAJOR ACCOUNTS DIRECTOR -
NORTHEASTERN U.S. & INTERNATIONAL
businessinsurance.com RISK MANAGEMENT
Ron Kolgraf Non-fungible tokens pose unique risk management
(Boston) questions for art dealers. PAGE 6
rkolgraf@businessinsurance.com
SENIOR VICE PRESIDENT,
BUSINESS DEVELOPMENT PERSPECTIVES INTERNATIONAL
Stephen Acunto Uruguay’s state insurance company dominates the nonlife
(Princeton)
Artificial intelligence has
market, requiring innovation from competitors that want
stephen@businessinsurance.com made identifying and
to boost their market share. PAGE 11
HEAD OF SALES, EVENTS preventing ergonomic risks
& REPRINT SALES MANAGER much easier, write Timothy
Susan Stilwill
(Nashville) Lohrmann and Marcus
sstilwill@businessinsurance.com Fichtel of Chubb Global
VICE PRESIDENT OF MARKETING Risk Advisors. PAGE 39 VIEW FROM
Brian McGann
(Buffalo) OFF BEAT THE TOP
bmcgann@businessinsurance.com Some doctors are
DIGITAL AD OPERATIONS MANAGER LEGAL BRIEFS having a cow over
Jordan Kilty
(Raleigh) Recent court opinions PAGE 12 the USDA’s latest MITCH BLASER
jkilty@businessinsurance.com recommended daily Mitch Blaser founded
DIGITAL MARKETING MANAGER OPINIONS allowance of dairy private equity-backed
Jen Jonasson
Vaccine promotion strategies; insights products. PAGE 42 Mosaic Insurance
(Chicago)
jjonasson@businessinsurance.com from award winners. PAGE 38 Holdings Inc. in Bermuda
MARKETING & EVENTS MANAGER
in February to focus on
Brittany Collins MARKET PULSE specialty risks. His long
(Lafayette)
Products, deals and more PAGE 40 career has included nearly
bcollins@businessinsurance.com
30 years at Marsh & McLennan Cos. Inc. Mr. Blaser, who
MARKETING & EVENTS SPECIALIST
Beth Wojdyla PEOPLE also worked at Swiss Re Ltd. and Ironshore Inc., discusses
(Chicago) Insurance industry moves PAGE 41 the strategy behind Mosaic. PAGE 13
bwojdyla@businessinsurance.com
SUBSCRIPTIONS & SINGLE COPY SALES BUSINESS INSURANCE (ISSN 0007-6864) Vol. 55, No. 7, Copyright © 2021 by Business Insurance Holdings, Inc. is published monthly by Business Insurance Holdings, Inc., 1030 Lake Avenue,
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954-449-0736 Printed in the USA. POSTMASTER: Send address changes to Business Insurance at PO Box 1010, Greenwich, CT 06836.
BUSINESS INSURANCE JUNE 2021 3
NEWS ANALYSIS
PROTECTION
Employers lean toward mandatory shots
PROTOCOLS
Nine out of 10
employers in the
U.S. and United
Kingdom plan to
require or strongly
BY ANGELA CHILDERS encourage workers
achilders@businessinsurance.com to be vaccinated
for COVID-19,
T
he demand for COVID-19 vaccines has according to a
survey conducted
declined, and with only about 40% of the in March by Arizona
U.S. population fully inoculated as of late State University’s
last month, employers are taking another look at College of Health
whether to mandate workers get vaccinated. Solutions and funded
by The Rockefeller
But such mandates can leave employers on the Foundation.
hook for lost workdays and injuries stemming
Researchers polled
from vaccine reactions and create additional com- nearly 1,400
munications, tracking and recording challenges. employers — 71%
As of late May, 49% of 18- to 65-year-old indi- of which were
viduals in the U.S. were fully vaccinated — far less U.S.-based, with
than the 70% needed to achieve herd immunity, the remaining 24%
based in the U.K.
according to the U.S. Centers for Disease Control — reporting that:
and Prevention.
“A lot of employers thought, as soon as (vaccines) vaccination rates. … After much deliberation, and not significant,” she said. “If there is a sig-
became available, that people were going to jump
in and get them,” said Michele Tucker, Sacramento,
California-based vice president of enterprise oper-
ations at third-party administrator CorVel Corp.
MUSC Health has decided to make it an expec-
tation that all care team members be vaccinated
against COVID-19.”
Many employers had been wary of forcing vac-
nificant reaction, it’s likely to be work-related.
It’s certainly not worse than a COVID claim at
this point.”
Employers who opted for a mandatory vaccine
90%
will require or
encourage COVID-19
“They’re feeling somewhat compelled to move cinations, given the potential for side effects and policy previously needed to worry about record- vaccination.
toward mandatory requirement of the vaccine.” that the U.S. Food and Drug Administration ing any serious adverse reactions on their Occu-
After first leaving the decision up to employees has approved the vaccines only on an emergency pational Safety and Health Administration logs.
and offering an incentive, the Houston Methodist
hospital system recently said it would require its
26,000 employees to be vaccinated for COVID-19
use basis.
However, some countries are implementing vac-
cination mandates for health care workers. On
However, the agency switched gears in late May,
declaring on its questions and answers section that
it “does not wish to disincentivize employers’ vac-
59%
will incentivize
employees to be
or be subject to suspension and/or termination. April 1, Italy approved an emergency decree that cination efforts” and would not enforce recording
vaccinated.
The Medical University of South Carolina imple- all health professionals must be vaccinated for the requirements related to worker side effects from
mented a similar mandate. coronavirus. Those who refused had the option to COVID-19 vaccinations through May 2022.
60%
“I have spoken to countless hospital leaders across be transferred to non-patient-facing duties or be The change, “might encourage an employer to
the country who plan to mandate COVID-19 suspended without pay for up to a year, according go mandatory because that’s one less downside
vaccination soon,” said Dr. Marc Boom, Houston to the British Medical Journal. they would have to worry about,” said Brent Clark,
will require proof
Methodist’s president and CEO, in an email to all “Health care and front-line employers have been partner in the Chicago office of Seyfarth Shaw of vaccination
employees dated April 23 that was forwarded by “a little bit more aggressive” with their vaccine LLP. “But I tend to think it wasn’t recordability from employees.
a spokeswoman to Business Insurance. Dr. Boom efforts, finding “much more of a need for man- that is causing hesitancy (in mandating vaccines).
also said he expects nearby Memorial Hermann dating or strongly encouraging” vaccinations, said It more is a function of the employer’s desire to
Health System and Baylor College of Medicine to
issue their own coronavirus vaccination mandates.
A former registered nurse at Houston Methodist
recently went public with her decision to leave her
Adam Kemper, Fort Lauderdale, Florida-based
partner with law firm Kelley Kronenberg P.A.
Ms. Tucker, who works with a number of hos-
pital systems and medical centers in the U.S., has
give the employees choice.”
Regardless of whether an employer mandates
or merely encourages vaccinations, it’s crucial
to communicate with employees, said Kathryn
84%
would allow
COVID-19
job rather than get the vaccine. seen several more clients move toward mandatory Bakich, Washington-based senior vice president vaccinations to be
“For us to optimize patient safety, we must have vaccines recently after fewer employees than antic- and national director of health care compliance at administered to their
employees at their
higher vaccination rates across MUSC Health,” a ipated opted to be vaccinated. employee benefits consultancy Segal Co. facility if supplies
spokeswoman for MUSC said in an email. “Large She has also seen a few vaccine-related workers “Having a very clear and understandable set of were available.
numbers of patients are not coming to health care comp claims in the past month as a result of the policies and explaining those up front is really Source: The Rockefeller
facilities because of our care team members’ lower mandates, but they’re “very small, not expensive important,” she said. Foundation
COMPULSORY VACCINE POLICIES RAISE WORKER CONFIDENTIALITY CONCERNS
E mployers that mandate COVID-19
vaccinations for their workforce
need to be prepared to verify
inoculation, keep track of boosters and
ensure they’re complying with relevant
president and national director of health
care compliance at employee benefits
consultancy Segal Co. “We’re getting a
lot of questions about what has to be
kept confidential, who can see it, who
as a disability or sincerely held religious
belief, that could violate federal law,
according to the Equal Employment
Opportunity Commission.
While employers tend to push these
inoculation, but also boosters, said Michele
Tucker, Sacramento, California-based
vice president of enterprise operations at
third-party administrator CorVel Corp.
“Shot records are going to be
privacy laws, experts say. cannot see it … You don’t want it in a types of tasks to human resources, Ms. important,” she said. “If (employers)
“(Companies) have to decide how personnel file.” Bakich said it’s much better to create make it mandatory, they’re going to
to protect the confidentiality of the Simply recording a “yes” or “no” for a secure intake to track vaccinations — have to monitor the boosters. It’s
information” they’re collecting, consider vaccination status is not protected, such as a secure online portal — or have probably going to have to be an ongoing
what kind of proof of vaccination according to the U.S. Centers for Disease everyone email one single person who is vaccination program with new strains
they will require and how they will Control and Prevention. But if employers trained in confidentiality procedures. coming out — like getting the flu shot
maintain confidentiality, said Kathryn ask follow-up questions or include They also need to be sure they’re tracking every year, but a little different.”
Bakich, Washington-based senior vice reasons for vaccine declinations, such not only the initial one- or two-dose Angela Childers
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NEWS ANALYSIS
Digital artwork creates new risks REGULATORS
EYE TOKENS
AS ASSETS
BY MATTHEW LERNER
T he regulatory status of
Christie’s/Beeple
mlerner@businessinsurance.com non-fungible tokens,
which is being considered
T
he sale of digital artwork represented by the U.S. Securities and
by non-fungible tokens — essentially a Exchange Commission,
point on a digital ledger or blockchain could have implications
that confirms ownership of an original — for insurance coverage
is gaining traction in the art world, attract- related to the tokens.
ing the attention of regulators and posing In an April 12 letter to
unique risk management questions for auc- the SEC, Arkonis Capital
tion houses, dealers and others involved in LLC, a broker-dealer that
the transactions. says it is “very familiar with
In March, Christie’s auction house sold the blockchain technology and
digital artwork “Everydays: The First 5000 digital assets,” said the SEC
Days,” by Mike Winkelmann, who goes by “needs to provide regulatory
the name Beeple, for an eye-popping $69 clarity with respect to the
million. The sale heightened the profile of regulation of a new form of
the emerging art format. digital assets —non-fungible
Other NF T art includes videos and tokens.” Arkonis said, “We
recordings. The assets are often bought and believe in certain instances
sold using the cryptocurrency ether on the NFTs may be securities.”
Ethereum blockchain. Should NFTs be viewed as
Uncertainties concerning the commercial financial instruments, “that
exposures created by such digital art sales are will have big implications”
rapidly becoming the subject of discussions for their regulation, said Paul
in the insurance industry. King, senior vice president,
“I’ve been having discussions with one of executive and professional
our clients on NFTs and what that entails,” risk solutions national
said David Ktshozyan, a Los Angeles-based advisor, for USI Insurance
senior associate with law firm Clyde & Co. Services Inc. in Dallas.
“One of the things that really spurred Uncertainty about the
interest in it was the $69 million sale in The digital work “Everydays: The First 5000 Days,” by Beeple, sold for $69 million at Christie’s. classification of NFTs “opens
March at Christie’s,” said Mr. Ktshozyan, questions about regulation
who represents insurers. “a handful” of inquiries from customers seek- president and CEO, Huntington T. Block and what potential risk
Traditional art and auction houses face ing to insure digital assets, including NFTs Insurance Agency Inc., a Washington-based transfer some may need to
very different risks than are present with and bitcoin collections. fine art unit of Aon PLC. It could be “a bit contemplate,” said Jackie
digital art, he said. Ms. Schipf said the specie segment of of a stretch to come up with a hypothetical Quintal, who heads up
“Typically, in a traditional art setting, one is Axa XL’s business includes cryptocurren- claim scenario to which a tradition- Marsh LLC’s U.S.
worried about physical damage to a physical cies and a bit of cold storage involving bit- al fine art insurance policy would digital asset group
piece of art,” in transit, at auction, possibly coin, “things that are not art-related but are favorably respond,” he said. in New York.
from mishandling, Mr. Ktshozyan said. more like valuable commodities.” Coverage For example, if a collector lost Ms. Quintal
With NFTs “you don’t have those same for NFTs may ultimately involve some sort the encryption key or the pass- cited the anti-
concerns and you don’t have those same of hybrid product with cyber, fine art and word to a hard drive containing money laundering
risks because everything is on the internet,” potentially other components, she said. the NFT artwork, the digital file concerns
he said. Fine art insurance policies are designed to would still exist and the loss would of regulators
Jennifer Schipf, global chief underwriting cover physical loss or damage only. If a work therefore be financial and not physical, as also potentially
officer of fine art and specie in New York for of art, such as an NFT, has no physical form, Mr. Dunn said. relevant to NFT sales,
Axa XL, a unit of Axa SA, said she has had it cannot suffer such damage, said Joe Dunn, There may, however, be significant risk depending on the ultimate
management concerns for those involved in classification and regulation
RECENT NFT SALES: SKYROCKETING PRICES the sale of NFTs. of NFTs.
“The first place you’re going to look, but Such regulation and
Asset Date of sale Adjusted price (USD) not the only place, is your errors and omis- scrutiny could also
sions insurance — is there anything from a potentially create a directors
Everydays: The First 5000 Days March 11, 2021 $69.3M coverage exclusion standpoint that would and officers liability
preclude coverage?” said Paul King, senior exposure, Mr. King said,
vice president, executive and profession- potentially touching on lines
Cryptopunk #7804 March 10, 2021 $7.6M
al risk solutions national advisor, for USI such as Foreign Corrupt
Insurance Services Inc., based in Dallas. Practices Act coverage
Beeple’s CROSSROAD Feb. 25, 2021 $6.6M “I think there’s certainly an E&O com- The discussion of NFT
ponent to it,” but policyholders should regulation, even extending
1st tweet of Twitter CEO Jack Dorsey March 22, 2021 $2.9M confirm if their existing policy language is to money laundering, is
broad enough or doesn’t directly or indirectly “pretty wide ranging, but
exclude advising on the sale of digital assets, that intersection is a real
Cryptopunk #6965 Feb. 19, 2021 $1.6M
said Jackie Quintal, who heads up Marsh thing,” Mr. King said.
Source: News reports LLC’s U.S. digital asset group in New York. Matthew Lerner
6 JUNE 2021 BUSINESS INSURANCE
Pandemic fuels rise in attacks on health staff
BY ANGELA CHILDERS And while basics like surveillance cam-
achilders@businessinsurance.com eras, security guards and panic buttons are
prevalent, only some health care employ-
V
iolence against health care workers ers provide training in de-escalation tac-
has been on the rise in recent years, tics and violence intervention and have a
and the COVID-19 pandemic has code system for violent incidents similar
made the risks even worse for doctors, to those used for clinical emergencies, Mr.
nurses and support staff. Duncan said.
Lawmakers at the federal level and in Hospitals should conduct training at
more than a dozen states have introduced a minimum every year, including active
legislation to mandate that health care shooter drills, and senior leadership
employers implement violence preven- should do tabletop exercises and review
tion programs, and experts say resources their violence prevention plans annually,
and training are crucial to help mitigate Ms. Elias said.
the problem. If an incident does occur, the employer
Violence against health care providers is should use it as an opportunity to reeval-
the third-leading cause of serious work- uate its violence prevention program, she
place injuries in the health care industry, said. “If you had a workplace violence situ-
generating at least $540 million a year in ation, you want to, after the incident, make
workers compensation costs, according to sure you bring all those key players together
Liberty Mutual Holding Co. Inc.’s 2020 vention standards. “The best way to reduce in different iterations for a long time,” the and talk about what went well, what could
Workplace Safety Index. the probability and severity (of violence) Occupational Health and Safety Admin- we improve in the response,” she said.
“COVID-19 certainly has both exac- against health care workers is thoughtful istration does not have a specific standard Ms. Popp said simple, “almost main-
erbated existing sources of violence and planning and mitigation techniques, facil- related to violent incidents in health care tenance-type” fixes should not be over-
opened up new areas of confrontation ity design and robust reporting,” he said. facilities, said Lisa Stand, senior policy looked, such as ensuring all exterior doors
between health care providers, patient advisor for policy and government affairs are secured at all times, lights that burn
families and the general public,” said Jeff at the Silver Spring, Maryland-based out are replaced immediately, security
Duncan, Boston-based senior vice presi- “COVID-19 certainly has both American Nurses Association. cameras are working, and safeguards are
dent and chief underwriting officer of the
health care practice at Liberty Mutual.
exacerbated existing sources of “OSHA has demonstrated that even
though there is no standard, they will use
put in place if staff feels unsafe in certain
areas of the premises.
Violent incidents against health care
workers have been rising and extending
violence and opened up new areas of the general duty clause” to cite health care
employers that fail to take steps to pro-
If neglected, “those are the things that
allow violence to escalate sometimes
beyond the emergency room and hospital confrontation between health care tect workers, said James Sullivan, Wash- without being identified” and should be
to non-acute settings, such as physician ington-based co-chair of the OSHA addressed before adding more preventive
offices, said Pamela Popp, Denver-based providers, patient families and the and workplace safety practice at Cozen measures, such as metal detectors, physi-
executive vice president and chief risk offi- O’Connor P.C. and former chairman cal barriers and other security upgrades,
cer of GB Healthcare, a division of Galla- general public.” of the Occupational Safety and Health she said.
gher Bassett Services Inc. Jeff Duncan, Liberty Mutual Review Commission. “There is a real issue
“We’re seeing an increase (in violence) with assaults on nurses. … It’s a recog- PROPOSED LEGISLATION
across all of the health care settings, and nized problem, and that’s why you see the Thirteen states have introduced legislation this
although it’s a little challenging to make a laundry list of unions and other employee year that would require some type of prevention
plan, committee or program to protect health
correlation right now, it does appear that In February, federal lawmakers introduced organizations pushing for (H.B. 1195).” care workers from workplace violence:
the pandemic has made it worse,” she said. H.B. 1195, which would require health care Most large hospital systems have a ME
People are fearful and “have a feeling of a employers across the country to create a violence prevention program, but it’s AK VT NH
lack of control” due to the coronavirus, and comprehensive program and processes to not always effectively communicated to WA MT ND MN WI MI NY MA RI
as a result are more likely to enter health prevent violence against health care work- supervisors, and training can be over- ID WY SD IA IL IN OH PA NJ CT
care facilities in an agitated state, Ms. Popp ers. Thirteen states have also introduced looked, said Renata Elias, Dallas-based OR NV CO NE MO KY WV MD DE
said. This can cause what should be a calm legislation that would create minimum senior vice president in the consulting
CA AZ UT KS AR TN VA NC DC
conversation to escalate quickly to shoving standards for health care workplace vio- solutions practice of Marsh Advisory, a
NM OK LA MS AL SC
or other types of violence, she said. lence prevention plans and training. unit of Marsh LLC. “It’s great to have a
Mr. Duncan said the industry lacks While guidelines for preventing violence plan or program in place, but it’s no good HI TX GA
“broad, consistently followed” violence pre- in health care settings have “been around if you don’t train and exercise,” she said. FL
TRAINING, ANONYMOUS REPORTING SYSTEMS CAN HELP CURB WORKPLACE VIOLENCE
H ealth care facilities can have robust
violence prevention plans, but if
employees fear being reprimanded for
calling security or are afraid they might be
overreacting, the measures are less likely
Advisory, a unit of Marsh LLC.
“The big concern from people is they
want to be anonymous … and feel like they
can make a phone call (to a hotline) when
they see something,” she said. “Having
Njoki Wamiti, senior vice president of
Ironshore Insurance, a Liberty Mutual
company. “They may think this is normal,
so there is no need to report it.”
Employers need to train workers on
show how the report and the solution
helped improve security for all, she said.
“People are fearful of reporting because
they don’t know what happens to the
information once it’s shared,” Ms. Popp
to be effective, experts say. that open dialogue to let employees situational awareness — being aware that said. “As soon as you can, show them that
Procedures must be in place for know there is a safe place to speak out is if a situation makes them uncomfortable action is taken and that it’s a positive
recording incidents and near-misses, and important.” it’s time to ask for help, said Pamela Popp, thing that they are reporting. Near-misses
staff need to feel comfortable making a Health care staff can “almost get Denver-based executive vice president are the same type of thing. We have to get
report and know how to do so, said Renata immune” to violent incidents, particularly and chief risk officer of GB Healthcare, a them to trust that we’re going to use the
Elias, Dallas-based senior vice president in verbal abuse, because of how common division of Gallagher Bassett Services Inc. information to make things better.”
the consulting solutions practice of Marsh they are in the health care setting, said It’s equally important to follow up and Angela Childers
BUSINESS INSURANCE JUNE 2021 7
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NEWS ANALYSIS
New capacity enters D&0 sector CYBER
RANSOMS
as prices, exposures increase
TEST MARKET
BY JUDY GREENWALD
S ecuritization could be in
cyber insurance’s future,
but for now policyholders
and insurers are grappling
with the challenges posed by
jgreenwald@businessinsurance.com ransomware.
Those were among the
T
he management liability marketplace issues discussed during
faces numerous challenges, including an sessions of the Minneapolis-
increase in fiduciary liability lawsuits, as based Professional Liability
it braces for expected SPAC-related losses. Underwriting Society’s 2021
These were among the themes during this cyber symposium, which
year’s Professional Liability Underwriting was held virtually May 5-6.
Society’s annual directors and officers sym- Joe Mann, CEO of
posium, which was held remotely April 28 Washington consulting
and 29. firm Arete Advisors LLC,
Even before the pandemic, the industry said there are about 30
faced several challenges, including anticipat- ransomware variants
ed hikes in premiums and retentions, as well circulating, with more
as more class action derivative lawsuits, said criminals threatening to
Christine Williams, New York-based CEO, release exfiltrated data. “It
financial services group, at Aon PLC. just ratchets up the chaos
“We’re continuing to see portfolio adjust- and the crisis scenario
ments overall out of the gate,” and rates that happens,” he said.
continue to experience upward pressure, or SPACs, presents opportunities for the objection claims, Ms. Barrett said. “There’s a Criminals are more
she said. D&O liability insurance market, insur- lot there and we’re just kind of waiting and sophisticated and persistent,
However, there have been about a dozen ers are approaching the issue cautiously, watching.” and activists, nation
new entrants into the management liability speakers said. Stephen Sills, CEO of New York-based states and disgruntled
market in the United States and London, SPACs, also called “blank check compa- Bowhead Specialty Underwriters, said the insiders continue to cause
Ms. Williams said. “It’s early days, but I nies,” are shell companies formed for the accelerated process in which companies cybersecurity concerns, said
think they will be able to provide some purpose of raising capital to acquire exist- go public under SPACs “creates a lot of Phil Venables, New York-
ample capacity,” she said. ing businesses and usually have two years to problems.” based chief information
Chris Warrior, London-based head of make an acquisition after their initial public Typically, bringing a company public security officer for Google
commercial management liability U.K. for offering. involves “a long baptism under fire and a lot Cloud, a Google LLC unit.
Berkshire Hathaway Specialty Insurance The structures allow the privately held of training,” Mr. Sills said. Now, “you just Insurance executives
Co., said the market is at a crossroads, with businesses acquired to become listed with- add water and instantaneously become a said the cyber insurance
London insurers stepping up with an appe- out going through a traditional initial public public company,” he said, adding that he is market may move toward
tite to provide new capacity. offering. not sure all of the CEOs and managers of securitization of cyber
SPACs unfold in stages, including the these companies are used to the constraints risk, although it will take
“There are a lot of SPACs out there pre-announcement stage before it has made
an acquisition; the point where it merges
they must work under in that particular
environment.
several years for that
market to develop.
looking for merger partners with the selected private company; and the
post-merger or “de-spac” stage, when there is
There is also potentially a “huge aggrega-
tion problem here” from a D&O liability
Andy Marcell, New York-
based CEO of Aon PLC
right now, with a lot of money and a combined company. Companies may seek perspective, as SPACs go through their unit Aon Reinsurance
D&O coverage at all of these stages. stages, he said. Solutions, said there are
lots of IPOs in the pipeline.” “There are a lot of SPACs out there look- Insurers are concerned about aggrega- some coverages that can be
ing for merger partners right now, with a lot tion, with the possibility they can be hit by isolated to create “discrete,
Kevin LaCroix, RT ProExec
of money and lots of IPOs in the pipeline,” the same event multiple times, said Jaimie bespoke coverages.”
said Kevin LaCroix, executive vice president Hunter, Brooklyn-based senior vice presi- “If we do our jobs
in Beachwood, Ohio, for RT ProExec, a dent at Guy Carpenter & Co. LLC. correctly on the retail
The reasons why so many of the new division of R-T Specialty LLC. Change has already occurred in the once side, the demand for the
entrants are in London or Bermuda rather SPACs are an opportunity, but “at the same “sleepy” fiduciary liability market because of coverage will increase”
than the United States was also discussed. time you know that you’re going to see losses the growing number of excessive fee claims and create the additional
In the U.K., entities have the ability to get just because of the sheer volume of activi- lawsuits being filed, executives said. capacity needed, he said.
up to speed fast, and freedom of rate and ty,” said Allison H. Barrett, New York-based The fiduciary space recently has taken “an Mr. Marcell said insurance
form, while in the U.S., new markets are head of North America financial lines for abrupt and sudden turn” because of these and reinsurance brokers
forced to go through individual states, “and American International Group Inc. claims, which are class actions brought have to be able to provide
there is a lot of work that has to be done to “There’s some risk inherent in these trans- against defined contribution plans in con- some underlying data with
get the entity’s paper ready to go,” said Jack actions,” she said. Clearly, the SEC is “look- nection with allegations that recordkeep- regard to outcomes against
Kuhn, CEO, insurance, at Vantage Risk Ltd. ing to slow down the process but not stop ing and other expenses that they charge are a set of deterministic
in Berkeley Heights, New Jersey, whose par- it,” she said. unnecessary or unreasonable, said Alison scenarios. “I think we will
ent company is Bermuda-based. There are questions as to what happens Martin, Pittsburgh-based fiduciary prod- get there as an industry,
Meanwhile, although the explosive growth when SPACs de-spac. “That’s candidly uct manager and senior vice president at hopefully,” he said.
in special purpose acquisition companies, where we see a lot of risk,” including merger Chubb Ltd. Judy Greenwald
BUSINESS INSURANCE JUNE 2021 9
NEWS ANALYSIS
Cannabis insurance options shifting
BY MATTHEW LERNER coverage, including D&O and errors and
mlerner@businessinsurance.com omissions insurance, have been particularly
difficult and could benefit from expansion,
T
he insurance climate for cannabis oper- he said.
ators and related companies remains The best way to describe cannabis D&O
cloudy, but it is improving and should is “a hard market within a hard market
continue to do so. — very firm and difficult to operate in.
Developments ranging from the prospect It’s very difficult to buy limits up to and
of looser federal restrictions to improving above $10 million,” said Ben Sibthorpe,
policy language could benefit the industry. Denver-based vice president in the man-
Capacity for cannabis operators and agement liability division of CannGen
related businesses remains constrained, Insurance Services. Fewer than 10 insur-
however, with some markets such as direc- ers currently write such coverage, he said.
tors and officers liability insurance partic- Sebastian Alia, New York-based depu-
ularly difficult. ty general counsel at Hudson Insurance
Two bills before the U.S Congress could Group, described the cannabis D&O
potentially remove some of the more sub- market as “a hard market on steroids.”
stantial barriers facing cannabis operators Cannabis “adds so many additional
when buying insurance (see related story). uncertainties” as a new industry with little
Only four states have no laws relating available data and regulation that offers
to legal marijuana use — Idaho, Kansas, “so much gray area,” he said.
Nebraska and South Dakota, according to a U.S. senator and vice president, and Mr. “the No. 1 ask” from cannabis operators Matt Grimes, vice president of the can-
the National Conference of State Legisla- Stewart spoke recently during a series of is still capacity, as many are not able to nabis specialty group at Hub Internation-
tures. In all other states it is either legal- webinars on the cannabis sector produced secure limits they desire, especially for al Ltd. in Chicago, said the brokerage
ized, decriminalized, allowed for med- by Business Insurance. total insured values. is introducing a new D&O product for
ical use, or allowed for medical use and Capacity constraints continue to create The Clarifying Law Around Insurance the cannabis sector. Hub has created an
decriminalized. problems for cannabis operators, accord- of Marijuana Act of 2021, which would indemnity vehicle that “uses company-is-
Ian Stewart, chair of the national canna- ing to webinar series participants, with the provide a federal safe harbor for insurers sued stock as collateral to provide for an
bis and hemp law practice at Wilson Elser D&O sector being acutely tight. covering cannabis businesses where sale of increased limit structure,” he said.
Moskowitz Edelman & Dicker LLP in Charles Pyfrom, Livermore, Cali- the drug is legal, could help broaden insur- Meanwhile, policy wording standardiza-
Los Angeles, said there is a “domino fornia-based chief marketing officer of ance markets for cannabis operators, Mr. tion is expected to evolve along with the
effect” among states legalizing or fur- CannGen Insurance Services LLC, Stewart said. cannabis industry itself, and regulators are
ther legalizing cannabis in various forms, which covers cannabis businesses, said The markets for management liability helping play a role in the quest for stan-
including New York and Virginia which dardized policy language.
recently acted, with New York choosing CONTROL OF LEGISLATURES LEGAL MARIJUANA USE “We’ve found the departments of insur-
full recreational adult use. ance have been incredibly flexible in our
n Democratic n Republican n Recreational and medical use n Medical use
“At the state level, things are not slowing n Split n Unicameral/nonpartisan n CBD/Low THC product law n No laws
conversations and filings,” said Joseph
down,” he said. Jonas, product manager, commercial
The drug remains illegal, however, at lines, in Northwood, New Hampshire for
the federal level. Cannabis is classified as the American Association of Insurance
a Schedule I narcotic by the U.S. Drug Services.
Enforcement Administration. Schedule I From a claims perspective, some stan-
drugs, substances or chemicals are defined dardization of terms would be welcome,
as drugs with no currently accepted medi- said Gerrit Nagarwalla, claims manager
cal use and a high potential for abuse. at Canopius Group Ltd. in St. Charles,
There have been “some encourag- Illinois.
ing signs” for the cannabis sector, said More standardization of policy language
Andrew Kline, senior counsel for Perkins as the insurance market for cannabis
Coie LLP in Denver. Mr. Kline, who matures would be beneficial, especially to
worked for President Biden when he was Source: National Conference of State Legislatures (via AP) claims people, Mr. Nagarwalla said.
FEDERAL CANNABIS LEGISLATION COULD CLEAR AIR FOR HESITANT INSURERS
T he difficult but improving insurance
market for cannabis operators in
the United States may get a boost
from two pieces of legislation before
Congress, one of which has already
after passing the House in 2019.
The Clarifying Law Around Insurance
of Marijuana Act of 2021, introduced
in the House in March, would provide
a federal safe harbor for insurers
Banking Act, said Ian Stewart, chair of the
national cannabis and hemp law practice
at Wilson Elser Moskowitz Edelman
& Dicker LLP in Los Angeles, during
a series of webinars on the cannabis
of state and federal agendas. “Once
members of Congress have a vested
interest, this becomes a bit of a different
issue,” she said during the webinar series.
The proposed laws are also
passed the House of Representatives. covering cannabis businesses in states sector produced by Business Insurance. garnering support from insurance
The Secure and Fair Enforcement where sale of the drug is legal. “There is very much a ‘trickle up’ effect,” industry organizations, including the
Banking Act of 2021, or SAFE Banking Senators and representatives from said Michelle Rutter Friberg, deputy American Property Casualty Insurance
Act, in April passed the House with states that have legalized cannabis could director of government relations at the Association and the Reinsurance
more than 100 co-sponsors and be more supportive than previously of National Cannabis Industry Association in Association of America.
must clear the Senate, where it died federal legislation such as the SAFE Washington, referring to the dovetailing Matthew Lerner
10 JUNE 2021 BUSINESS INSURANCEINTERNATIONAL
PROFILE: URUGUAY
MARKET
DEVELOPMENTS
Updated May 2021
n The coronavirus was officially
confirmed to have reached
Uruguay on March 13, 2020,
Uruguay’s nonlife insurance market is relatively small,
63
and the full impact of the
generating $868.19 million in premiums in 2019.
COVID-19 pandemic will not
Market penetration per capita remains fairly modest
be known for some time.
although comparable with neighboring countries, and
any potential increase in the immediate future is likely n During late 2020 there were
to be moderate. Auto insurance dominates the nonlife 16 insurance companies
sector; the second most significant class is workers registered to operate in the
compensation insurance, which is obligatory for most nonlife sector, dominated
employers. There is unlikely to be any major change to by the state-owned Banco
nonlife premium distribution in the foreseeable future. de Seguros del Estado,
The market will continue to be dominated by Banco which in 2019 held a 63.14%
de Seguros del Estado, the state insurance company, share of total premiums.
and competing insurers will require greater innovation n Auto continues to form the
GLOBAL to increase their market share. Auto and property largest class of business
P/C MARKET will continue to be the main lines of business for for the nonlife portfolio,
RANKING private insurers, and competition for new and existing AREA representing over 37%
68,037
business will continue to intensify. of market premiums
in 2019. BSE leads the
account, holding over 45%
MARKET SHARE PROPERTY of motor premiums.
14.7%
CONSTRUCTION square miles n Competition for new and
& ENGINEERING existing business across
1.1% most lines continues to be
strong. Despite this, rates
LIABILITY
2.4% have generally remained
stable or shown only a small
MARINE,
POPULATION decline. Market participants
3.4
AVIATION & AUTO suggest that dramatic rate
TRANSIT 37.4% cutting for new business
3.2% does occur, particularly
in property classes.
MISC.
4.1% million n There continues to be interest
WORKERS in the market from new
SURETY, BONDS entrants and several have
COMPENSATION
& CREDITS 32.8% approached the regulatory
4.2% authority, including a number
from neighboring Argentina.
MARKET CONCENTRATION
80.3%
MARKET GROWTH n Public-private partnership
In millions, U.S. dollars projects may present
Life Nonlife opportunities for the
1,000 construction sector and
ultimately those insurers
market share of top three insurers that underwrite the class.
800
n Companies have expressed a
need for adequate legislation
600 for the sector, such as
framework regulations to
2021 GDP CHANGE govern intermediation.
400
(PROJECTED)
200
0
2015 2016 2017 2018
Source: Axco Global Statistics/Industry Associations and Regulatory Bodies
2019
3.0%
COMPULSORY INSURANCE NONADMITTED INTERMEDIARIES MARKET PRACTICE
n Auto third-party n Professional indemnity Nonadmitted insurance is not Intermediaries do not have to be The Superintendency of Financial
liability cover (errors and omissions) permitted in Uruguay because authorized to do insurance business Services is aware that some nonlife
cover for foreign the law provides that insurance in Uruguay. They are allowed to insurance business is illegally placed
n Workers compensation
reinsurance brokers must be purchased from local place business with nonadmitted overseas, but the volume is not
n Aviation hull (where authorized insurers, with insurers in the classes for which believed to be significant. There
the maximum take-off
n Liability insurance for
some exceptions. Among the such placements are permitted. have been no recent reports of
companies operating
weight exceeds six exceptions is insurance on the Brokers involved in nonadmitted any unauthorized insurers illegally
within ports
tons), third party, crew international transport of goods. placements do not have to warn selling insurance in Uruguay.
and passenger liability n Shipowners liability for buyers that their insurer is not
marine oil pollution subject to local supervision.
n Personal accident
(financial guarantee Information provided by Axco.
cover for public
or insurance)
transport passengers For free trial access to
global insurance intelligence,
visit axcoinfo.com.
BUSINESS INSURANCE JUNE 2021 11LEGAL BRIEFS
Court of Appeals in Cincinnati last year,
Knoxville, Tennessee-based CIC sued to
stop an IRS reporting requirement for
in Noelle Lee v. Robert J. Fisher et al. Mr.
Fisher is the San Francisco-based compa-
ny’s chairman.
DOCKET
microcaptives, which are also known as The complaint charged the company
831(b) captives. with breach of fiduciary duty, aiding and
Over the past several years, the IRS abetting breach of fiduciary duty, abuse of
has won several court rulings in which control, unjust enrichment, and violation
it alleged that microcaptives are not of securities law and regulation.
engaged in insurance and are instead used The court held the company’s exclusive
by wealthy individuals and family busi- forum provision is valid. “Plaintiff does CONTRACTOR ADMITS
nesses to avoid taxes. As part of its inves- not point to any statute or judicial deci- TO OSHA VIOLATION
tigations into microcaptives, in 2016 the sion that clearly states that enforcing the A New Jersey general contractor
IRS imposed rigorous reporting require- forum selection clause would contravene admitted in federal court to wilfully
Restaurants’ case ments on captive managers involved with
microcaptives that it suspected might
a strong public policy,” the court said in
dismissing the case.
violating Occupational Safety and
Health Administration standards in
avoids dismissal be used for tax evasion. Managers that
did not meet the reporting requirements
Other companies have been charged in
similar diversity suits, including Face-
the death of a roofing worker in a
fall, the U.S. Department of Justice
n Physical damage is not necessarily faced stiff penalties. book Inc. Another San Francisco judge reported. Derico Ferreira, owner
visible to the eye, a federal district court CIC sued the IRS alleging that the dismissed the Facebook case, Natalie of Newark-based Trustworthy LLC,
said in refusing to dismiss a COVID- reporting requirements violated the Ocegueda v. Mark Zuckerberg, et al., citing pleaded guilty to one count of
19 business interruption lawsuit filed by Administrative Procedure Act and the the company’s Delaware forum selection willful violation of OSHA standards
Alabama restaurants. Congressional Review Act and that it clause as among her reasons for doing so. by failing to provide fall protection
Three restaurant companies, including required congressional review before Under A.B. 979, which was signed into to employees installing a roof on
North Birmingham-based Serendipitous going into effect. law by California Gov. Gavin Newsom a two-story house. The company
LLC, had argued that the terms concern- The IRS countersued, arguing that last year, publicly traded companies in did not have a guardrail installed
ing “loss” under Cincinnati Insurance CIC’s suit was barred by the Anti-In- the state must have at least one minority and provided no personal fall
Co.’s coverage were ambiguous, according junction Act. That law requires taxpayers director by Dec. 31, 2021. protection to its workers on the
to the ruling by the U.S. District Court in to pay a disputed tax and then sue for a roof, according to court documents.
Birmingham in Serendipitous LLC/Melt et
al. v. Cincinnati Insurance Co.
refund if it is later deemed invalid.
Writing for a unanimous Supreme Sompo files suit UNDER ARMOUR AGREES
The insurer had argued the restaurants
had not identified the physical loss or
Court, Associate Justice Elena Kagan
said: “A reporting requirement is not a
in Bryant crash TO SEC SETTLEMENT
Sports apparel manufacturer Under
damage to property needed to trigger tax; and a suit brought to set aside such a n A Sompo International Holdings Ltd. Armour Inc. has agreed to pay $9
coverage, according to the ruling. rule is not one to enjoin a tax’s assessment unit has filed suit seeking a declaration million to settle U.S. Securities
“The restaurants have alleged facts that, or collection. That is so even if the report- it is not obligated to indemnify the heli- and Exchange Commission charges
if proven, constitute actual physical loss of ing rule will help the IRS bring in future copter company that allegedly arranged it misled investors. The SEC said
their buildings and furniture during the tax revenue — here, by identifying sham the flight in which basketball star Kobe the Baltimore-based company
pandemic,” the ruling said. insurance transactions.” Bryant was killed last year. misled investors as to the bases
“The fact that the COVID-19 virus The case was remanded for further pro- Nine people, including Mr. Bry- of its revenue growth and failed
has not physically altered the restaurants’ ceedings. ant, his daughter Gianna and the pilot, to disclose known uncertainties
property does not mean that coverage nec- were killed on Jan. 26, 2020, when their about its future revenue prospects.
essarily is not available for impacts to the Sikorsky helicopter crashed en route from The SEC said that by the second
property that are invisible to the naked eye. John Wayne Airport in Santa Ana, Cali- half of 2015, Under Amour’s
“The policy language indicates that fornia, to Camarillo Airport. internal revenue and revenue
the insurer understands that an insured Santa Ana-based OC Helicopters, growth forecasts for the third
may suffer physical loss without physical which allegedly had provided flight oper- and fourth quarters of that year
alteration of property because the policy ations for Mr. Bryant, his family and his began to indicate shortfalls from
excludes from coverage some expenses businesses, was named as a defendant in analysts’ revenue estimates.
incurred because of invisible substances four lawsuits filed by Mr. Bryant’s widow
like vapor and fumes,” it said. “Cincinnati and others in the crash, according to the UTAH SECURITY FIRM
could have excluded invisible substances lawsuit, Endurance Assurance Corp. vs. OC SETTLES FTC CHARGES
like viruses but did not,” the ruling said, Helicopters LLC, which was filed in U.S. A Utah home security and
in denying Cincinnati Insurance’s motion District Court in Santa Ana. monitoring company has agreed to
to dismiss the case. Sompo unit Endurance Assurance, pay $20 million to settle Federal
A Cincinnati spokeswoman said in a
statement, “Our commercial property Diversity suit against which provided a policy with a $10 mil-
lion limit for bodily injury and property
Trade Commission charges it
misused credit reports to help
insurance policies require direct physi-
cal loss or damage to property and do not
The Gap dismissed damage to OC Helicopters, has defended
the company subject to a reservation of
unqualified customers obtain
financing for the company’s
provide coverage in this case.” n A federal district court dismissed a rights, according to the lawsuit. products and services. The
diversity lawsuit filed against The Gap The lawsuit says Endurance is not obli- agency said Provo-based Vivint
High court reverses Inc., citing the company’s bylaws, which
designate the Delaware Court of Chan-
gated to provide insurance coverage to the
company under the non-owned aircraft
Smart Homes Inc. had agreed
to pay a $15 million civil penalty
microcaptives ruling cery as the exclusive forum for claims.
Plaintiff Noelle Lee alleged in the deriv-
liability endorsement in its policy that
excludes “rotowing” aircraft, which would
and an additional $5 million to
compensate injured customers. The
n The U.S. Supreme Court ruled that a ative lawsuit, which was filed in U.S. Dis- include the Sikorsky helicopter. FTC charged that Vivint violated
captive manager’s challenge to a report- trict Court in San Francisco in September Endurance is seeking a declaration from the Fair Credit Reporting Act by
ing requirement for microcaptives is not 2020, that the clothing retailer had failed the court that the claims asserted against improperly obtaining credit reports
barred by federal law, reversing a federal to create any “true racial or ethnic diver- OC Helicopters do not fall within the to qualify potential customers
appeals court ruling in the case. sity” on its board or in its top leadership scope of its coverage and that it does not for financing for its smarthome
In CIC Services LLC v. Internal Revenue roles despite its written proclamations to have a duty to defend or indemnify OC monitoring and security products.
Service, which was heard by the 6th U.S. the contrary, according to the complaint Helicopters or reimburse defense costs.
12 JUNE 2021 BUSINESS INSURANCEVIEW FROM THE TOP
Mitch Blaser
MOSAIC INSURANCE
Q What are the challenges of starting
up multinational operations Q What are the lines of business
you are starting with?
and they are usually noncorrelated
risks. These are typically more isolated
in the middle of a pandemic? activities and events and our reinsurance
A Some are the obvious ones of just
not being able to sit around a table
A We are focused on seven lines
of business and these are highly
specialized. They are really difficult lines
program takes the top off our exposure.
So you have less frequency and you
can control the severity in these lines
— especially with Lloyd’s, which is 300 to be in, they require a high technical of business. It also comes back to the
years old and it started in a coffee knowledge to write the business, they technicalities in the underwriting, too.
shop so everything’s been face-to-face. are very relevant in terms of today’s
But the world has done a great job
adapting. It’s not that the office is dead
economies and we expect they will be
critical to the new economies going Q Are you looking to expand the
number of classes of business?
and we’ve lost what we had before, it’s forward so the demand and risk will grow.
A
Mitch Blaser founded private more about we’ve gained the ability to Cyber is an example; it’s a tough line We will be opportunistic. If a
equity-backed Mosaic Insurance operate in a virtual environment. We but if you have the right people who business opportunity is there — we’ve
now know how to get together, coalesce know how to support the line and you already looked at a few and there may
Holdings Inc. in Bermuda in around ideas and make things happen are able to build that business, you would be one that we follow up on — that
February to focus on specialty virtually that we just didn’t do before. think of it not only being relevant today fits our model, that has a niche area
risks. The company’s main I found the biggest disadvantage but it’s not going away anytime soon. of focus, that requires really technical
was more on the admin side, when underwriting and talent capability, we
underwriting vehicle is a Lloyd’s you need signatures and the actual have an opportunistic model for those
of London syndicate, but it also documentation for what you’ve already situations. That does not mean we are
agreed to. People have started having looking for x, y or z, but if x, y or z shows
plans to partner with third-party
to create legal documents behind the up and it fits the model, we’ll pull the
capital providers. Mr. Blaser’s documents to support the fact that trigger. It comes down to people.
long career in insurance has you don’t have a wet signature. We
included nearly 30 years at
found ways to get it done but it slows
you down a bit on the admin side. Q People look at private equity-backed
companies and think they’ll last
Marsh & McLennan Cos. Inc. about five years before there’s a recap
After some time at Swiss Re
Ltd., he joined Ironshore Inc.
Q You have about 45 people on staff,
but how many have you actually met?
or a sale or an IPO. What’s the story
with your private equity backing?
in 2007, where he also worked
with his co-CEO at Mosaic, A When you’re focusing on starting a new
company you think about the people
you know, so I’ve met about three-quarters
A With Golden Gate Capital, we have
a perpetual fund structure, so they
are long-term holders. It’s so hard to
Mark Wheeler. He recently of the team at some point in my career. predict what the future will bring, but
spoke with Business Insurance the ability to have that flexibility is huge
Editor Gavin Souter about the
concept behind Mosaic and its
Q Now that you have operations up
and running, what’s your strategy?
Political violence is another one.
Who would have thought a year ago
so we can monetize if that becomes
a critical opportunity for some reason
that the U.S. would be a big market for or they can hold for up to 20 years. So
strategy. Edited excerpts follow.
A The underpinning of our hybrid model
is the talent that we are able to attract
and hire, in parallel with the building of
political violence coverage? The world
is changing dramatically. Political risk,
which is basically governments behaving
we have a ton of flexibility in how we
work together, in how we build the
company and eventually monetize.
our technology platform. Not having a badly, faces the same kind of issue.
legacy infrastructure is almost as important
as not having a legacy balance sheet.
For transactional liability, each month
seems to set a record for mergers and Q Most companies have one
CEO, but you have co-CEOs.
The centerpiece of our model is our acquisitions, so that will probably be our What’s the thinking behind that?
Lloyd’s syndicate, so getting that up and biggest line. We’ll also be in financial
running was absolutely critical and that’s
been one of the time-consuming things
that we’ve done on a virtual basis. In terms
institution lines and professional liability.
Another way to think about these lines
of business is that they are lines that
A We worked together for years. One
of the hats I wore at Ironshore was
CFO, and I got to know Mark really well
of the initial focus those are the key boxes brokers typically have problems placing. that way. We worked together building
that we want to be able to tick, so that the international franchise of Ironshore.
we can get our underwriters underwriting
and align our partners on the capital side. Q Isn’t there something to be
said for balancing a book of
We have a very close friendship as well
as a partnership, and we seem to be able
We are talking to different types of business with less volatile lines? to leverage each other’s strengths — he
capital to support us, between consortiums can focus a lot on the underwriting side,
and trade capital, and we’ll also have some
less traditional capital supporting us. A There is a degree of volatility in these
lines, but there’s not the frequency,
and I can focus on the running of the
business side. It’s a great complement.
Who would have thought a year ago that the U.S. would be a big market for political violence coverage? The world is
changing dramatically. Political risk, which is basically governments behaving badly, faces the same kind of issue.
BUSINESS INSURANCE JUNE 2021 13You can also read
