IN THIS ISSUE 6
BALTIMORE SUMMIT GENERATES MUCH POSITIVE FEEDBACK “I truly felt this was one of the best large business meetings I have ever attended. We came away with a number of opportunities that are in front of us that we will follow through on.”
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LLOYD’S BUILDS ON NEW MET OFFICE RESEARCH The effort is to support the case that extreme weather events can be modeled as independent...
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LLOYD’S REMEMBRANCE DAY CEREMONY
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As part of its annual Remembrance Day ceremony, an underwriting room full of ex-servicemen, brokers, underwriters and Lloyd’s staff fell silent as the Lutine Bell was struck at 11am.
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THE INSIDE STORY: PAUL LAVENHAR INTERVIEWS GLENN CLARK Paul Lavenhar of PL Communications, a CHART Vendor Partner, sat down with CHART’s Earliest Adopter, Glenn Clark, and asked clear questions about what CHART aims to accomplish.
“Banking fraud is unfortunately very prevalent, and has been for a while,” said Tom Kirchmaier, a researcher at the London School of Economics.
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Surprises: When you get 300+ like-minded people together, stand back and watch them go!”
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ADMITTED VERSUS SURPLUS LINES INSURANCE: SOME IMPORTANT DIFFERENCES For those who place insurance with and for Underwriters at Lloyd’s, the subject of admitted policies versus surplus lines policies inevitably comes up...
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MAKING RISK ASSESSMENT MORE EFFICIENT FOR UNDERWRITERS Underwriters are busy people, trusted with the job of evaluating and accepting risks for their company’s book of business.
CYBER ATTACK TARGETS FINANCIAL INSTITUTIONS
WINNERS AND LOSERS IN THE DRONE BUSINESS Due to the overestimated and falling demand hobbyist have for drones, drone startup companies are shifting their sights from the consumer market to specialized business applications.
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AGENCY FINANCING FOR THE INSURANCE SECTOR Local Lenders May Lack Understanding of Insurance Distribution Companies While Other Lenders May Actively Seek To Lend To Insurance Agencies
U.S. HEALTHCARE REFORM IMMINENT Donald Trump’s upset victory over Hillary Clinton on November 8th created uncertainty around hospital companies as stocks fell the next day.
Cover Image Credit: Creative Commons
CHART Exchange 30
38 WHAT DID WE LEARN FROM OUR OCTOBER SUMMIT? Glenn Clark reviews 10 key lessons learned from the October Summit in Baltimore.
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CYBER CRIMINALS TARGET ATMS Cyber criminals found a new way to steal money from banks. In more than a dozen countries throughout Europe, cyber hackers used software that causes ATMs to empty its cash.
NEW SPECIALTY FOR LLOYD’S SYNDICATE BRIT Brit Limited (“Brit”), the global specialty insurer, is pleased to announce the launch of a Lloyd’s consortium for diamond processing.
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Message From The Earliest Adopter
BALTIMORE SUMMIT GENERATES MUCH POSITIVE FEEDBACK
W
e recently concluded our Second Annual CHART Exchange meeting. The event took place on October 3-5, 2016 at the Marriott Baltimore Waterfront Hotel. A diverse group comprised of representatives from Lloyd’s Syndicates, domestic insurance agencies, and Vendor Partners participated in this unique session.
environment conducive to the free exchange of ideas amongst representatives from both sides of “the pond”. Within this relaxed forum, the Syndicates can articulate their risk appetites, underwriting philosophies, and new product launches. Agencies discuss the opportunities and challenges within the U.S. insurance marketplace. Our Vendor Partners can demonstrate The Baltimore meeting allowed their expertise within such CHART to showcase its Market unique areas of specialization Finder Facility. This proprietary as Actuarial, Legal Services, feature of our organization gives Claims Administration, Mergers agencies the opportunity to & Acquisitions, Systems, and present new program/product Marketing. ideas to decision makers from the London market. Our three A portion of our meeting’s agenda London Broker Partners are an was dedicated to workshops and instrumental part of this effort. panel discussions. These sessions were divided into three distinct Their tasks include assisting in categories: a London Track, the presentation development, Agency Services Track, and an setting appointments, and Agency Model Track. The “London” playing “matchmaker” to align the breakout meetings included panels proposals with those Syndicates comprised of the participating possessing the most compatible Syndicates. risk appetites. Over the course of the three day event, the Brokers The Agency Services category participated in over 400 pre-set contained workshops moderated meetings. by industry experts which focused on topics relevant to our unique The CHART event provides an marketplace. Several large
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Glenn W. Clark, CPCU Publisher & Earliest Adopter networks – including the Strategic Insurance Agency Alliance (SIAA), Beyond Insurance Global Network (BIGN) and The Hilb Group – discussed their operations in the Agency Model Track. While the CHART event is primarily focused on surfacing/identifying new business opportunities, we did set aside time for a little fun. Our networking receptions gave everyone the chance to unwind and mingle. The organization also sponsored a “Success Stories” competition; participants came before the group to share their triumphs (and learning experiences). Prizes were awarded to all. We received a great deal of positive feedback at the conclusion of the meeting. Ken Redfern, President of Daniels-Head Insurance Agency, Inc. and first time conference attendee, offers his experience at the 2016 event:
www.chart-exchange.com
CHART Exchange “I truly felt this was one of the best large business meetings I have ever attended. We came away with a number of opportunities that are in front of us that we will follow through on. This was a perfect venue to hear and meet Lloyd’s Brokers and Syndicates that currently operate in the London Market. We have a keen interest in becoming a Coverholder. Simon Hall (from C.J. Coleman, one of CHART’s London Brokers)
did an outstanding job of organizing and scheduling our meetings and gave us an excellent understanding the process. The outside vendors were an integral part of the program. We are anxious to meet with a number of those that made presentations on Wednesday and see how we can integrate some of these into our operation.”
Ken Redfern, President of DanielsHead Insurance: “I truly felt this was one of the best large business meetings I have ever attended.”
www.chart-exchange.com
for everyone at CHART is new business, but CHART’s focus is also on helping insurance professionals build relationships with the London market for the future. CHART’s goals and existence is unprecedented and we look forward to sharing the success of Ken and his agency, along with many other CHART members.
Interested in learning more about the CHART Exchange? Feel free to write to us at info@chart-exchange. com with any questions you may Ken became involved with CHART have. We look forward to hearing after he realized how difficult it from you. was to connect with the London Market. His experience ties in to a larger question that many U.S. agencies find themselves asking, which is, “How do I work with Lloyd’s?” CHART works to answer this question by establishing an intimacy between U.S. agents and Glenn W. Clark , CPCU Lloyd’s Syndicates. The end goal
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News
LLOYD’S BUILDS ON NEW MET OFFICE RESEARCH
The effort is to support the case that extreme weather events can be modeled as independent
R
ecently, Lloyd’s published a study that support the case that extreme weather events can be modeled as ‘independent’ by global reinsurers when assessing many of their key aggregate risks around the world.
simultaneously even if there is no link between them.
• An assumption of independence for capital-holding purposes is therefore appropriate for the key risks the Lloyd’s market currently insures; and The report, The Risk of Global • The methodology released Weather Teleconnections, in in the report enables scenario association with the Met Office, modeling across global portfolios analyses the links between extreme for appropriate region-perils. weather events occurring in separate regions of the world that Trevor Maynard, Head, Exposure can take place over a range of time Management & Reinsurance at scales from days to years (known as Lloyd’s said: teleconnections). “The report’s findings go a long The report’s key findings are as way to answering the challenge follows: that capital for local risks should • Met Office research found be held in their own jurisdictions. that the majority of perils are Lloyd’s believes this approach not significantly correlated, but reduces the capital efficiency identified nine noteworthy peril- of the (re)insurance market by to-peril teleconnections, most of overlooking the heart of insurance which are negatively correlated; and the diversification benefits • Lloyds’ modeling finds provided by writing different risks that these correlations were not in different locations, and in doing substantial enough to warrant so, needlessly increase costs to the changes to the amount of capital ultimate detriment of policyholders. it holds to cover extreme weather Insisting on the fragmentation of claims. capital is not in the best interest of policyholders.” Even when there is some correlation between weather patterns, it does Professor Dame Julia Slingo, Chief not necessarily follow that there will Scientist at the Met office, said: be large insurance losses. Extreme weather events may still occur “This report demonstrates the 8
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continuous improvement in our understanding of connections between climate drivers and regional perils across the globe. When we add this to our cuttingedge capabilities in simulating the global climate to the local weather and in deploying these for more skilful long-range predictions, we can help (re)insurers model multiple, and possibly teleconnected, scenarios and more effectively manage their portfolio of risk.” Lloyd’s worked with the Met Office to develop this innovative study, which for the first time analyses the potential links between weather events globally; existing methodologies cover single regions only. This allows reinsurers to use the report to model scenarios across their global portfolios. The Met Office research analyzed the impact of nine (out of a pool of 22) “earth-system drivers”, such as El Niño, on 16 priority regionperils that Lloyd’s selected as the most important. Lloyd’s then ran this information through its internal model to arrive at the report’s conclusion. In a ground breaking move, Lloyd’s and the Met Office have made the methodology publicly available to allow debate and review. www.chart-exchange.com
We wish to acknowledge the London Brokers who have become Preferred Vendor Partners of the CHART Exchange: C J Coleman & Company Ltd Portsoken House 155 Minories London EC3N 1BT Simon.Hall@cjcoleman.com
Jardine Lloyd Thompson Group PLC
The St Botolph Building 138 Houndsditch London EC3A 7AW Neill.Cotton@jltre.com
Prospect Insurance Brokers
St. Clare House 30-33 Minories London EC3N 1PE Jwebb@prospectbrokers.com
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News
LLOYD’S REMEMBRANCE DAY CEREMONY
As part of its annual Remembrance Day ceremony, an underwriting room full of ex-servicemen, brokers, underwriters and Lloyd’s staff fell silent as the Lutine Bell was struck at 11am.
M
the Lloyd’s Platoon London Rifles Lime Street Ward, Major Peter Bull that many Lloyd’s men joined in of F Company, 7 Rifles regiment 1914-18. and Captain Ian McNaught, Deputy Master of Trinity House. Lloyd’s Chairman John Nelson led the wreath laying ceremony Also in attendance were alongside The Lord Mayor of the representatives of Chelsea City of London, Alan Yarrow. They Pensioners; War Widows Association were followed by Mark Drummond and Frimley Park Military Hospital. Brady, the Chairman of the Lloyd’s The City of London Army Cadet The 7 Rifles regiment has a long Branch of the Royal British Legion, Force was present to provide standing connection with Lloyd’s. Alderman Charles Bowman of the assistance to guests. The regiment is the descendant of
Photo Credit: Lloyd’s of London
embers of F Company from 7 Rifles infantry regiment entered the Room bearing their regimental standard. Their uniformed delegation formed one side of a guard of honour, with Royal Naval Reserves from HMS President on the other.
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Interview
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THE INSIDE STORY: PAUL LAVENHAR INTERVIEWS GLENN CLARK
n the midst of the CHART We called it “Declaration of If that $70 million all hits and they Exchange’s 2nd Annual Summit Interdependence.” all progress to maturity we believe Event, Paul Lavenhar of PL that the ultimate from just our Communications, a CHART Vendor Now in 2016, this is our first official first meeting will be $150 million Partner, sat down with CHART’s event that's members only, paid moving from U.S. paper to London. Earliest Adopter, Glenn Clark, and dues, vendor partners, or risk taker Now to some that’s not a big deal. asked clear questions about what partners. We're still sorting through But it is still $150 million? $150 CHART aims to accomplish. What who really gets what ‘exchange’ million is over one-per cent of the follows is a conversation that cuts means –it’s pretty easy for us to tell ENTIRE premium of what Lloyds to the core of how of London does in the CHART is becoming entire U.S. now. So we We have probably refused more the answer for people attending this event than know we have a good insurance specialists idea. We just don’t we've accepted. We managed it to 300 who want their own know yet if we have all people. We have lots of outsiders who program. Anyone the right partners. interested in the want to come- “I want to check you out.” CHART Exchange Now we have probably “I want to see what this is about.” will find the refused more people following interview attending this event enlightening, as Glenn Clark, an someone who wants to come to than we've accepted. We managed evangelist for the industry, lays our event and harvest our contacts it to 300 people. We have lots of out the genesis and future of the from someone that understands outsiders who want to come- “I association. ‘exchange.’ want to check you out.” “I want to see what this is about.” We've had Paul: With CHART, what are Someone who understands contacts from other countries say, your goals, what are you hoping ‘exchange’ is somebody who wants “Hey, how do we get involved in happens, where are we going from to invest in a concept or ,perhaps, this thing that’s Lloyds centric?” here? wants to build a farm system Well, we are not going be successful (pipeline) of new deals for years to if the first time we saw another Glenn Clark: Number one, it is come. Perfect example, is our first pretty face we abandon our model. a work in process. We do have a event (as we track EVERYTHING). vision and goal. The super vision We now have $70 million worth of Our core model is to do more U.S. is more U.S. commerce with Lloyds U.S. commerce and with some sort business with London. We seek of London. That’s our core goal. of line slip or new tribunalization committed London partners. We had an experimental event the activity in London. We have 14 syndicates with us first year (2015) in Philadelphia. today out of 93. Can we keep 93
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Interview syndicates happy? No way. Can we keep 14 happy? We think so. Okay, but do we have the right 14? We will see who came here ready to do new business, who came here ready to defend us and our intent. We've been attacked by some outside sources with some disinformation about us so it is essential that our partners help us by going back to their networks reflecting on what a good experience CHART was. It is natural to incur resistance whenever you do something new. Maintaining our core vision, providing value for U.S. agencies that are entrepreneurial and building new commerce to London will ultimately win the day. It’s a phenomenon in the U.S.
that there is more growth via acquisitions than there is new organic growth on the merits of new ideas. The acquirers are very aggressive. God bless them. Once they acquire you, you are no longer an entrepreneur. You are saluting “another’s” flag. We’re Rockwood Programs. We’re entrepreneurs. We have people call us all the time wanting to buy our agency. Our response has been: How are you going to make our lives better? We’ve already built a great work life. We’re evangelists for doing this for a living. We have partners here like SIAA. They created 3,100 new independent agencies. They are the kind of people we want to be around.
People who want to grow. There’s organic growth (and entrepreneurs are the authors of organic growth) and there is acquisition growth. Entrepreneurs are different animals. CHART’s future is to provide those entrepreneurial outlets for creators of new ideas and risk takers that are acceptors of new ideas. These risk takers are often more willing to do a smaller program, yet that smaller program can start a relationship that can last a very, very long time. Long answer for one simple question, Paul. But thanks for asking.
Paul: I like it. So I want to go back to the $70 million deals. One of the things that I think is unique here is So who listens to entrepreneurs? that it is more intimate. It is smaller in scale and I've heard that from a lot of people. I think one of the things that's a big differentiator here among others is there is real deal-making going on. And that was your plan. So tell me about that. Glenn Clark: Well, it was not only our plan, it was our strategy from day one. When we recruit attendees and advertise to U.S. producers, we go, “Do you specialize?” or, “Do you want to specialize?” “Do you have a specialty idea?” People will criticize us and say we are trying to appoint retailers. We don’t even use that vernacular. Retail or wholesale
Glenn Clark addressing attendees at the October summit
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Interview
Continued From Page 13
GLENN CLARK INTERVIEW distribution is not a significant issue to us. Our issues: Are you an expert? Do you have an edge in an area where you can bring value to an industry segment? Our targeted marketing is to people who specialize.
what affinity is. We know how to measure the potential of a success of a risk opportunity, how to measure a marketing campaign, and the returns on investment of our marketing dollars. We employ a detailed program questionnaire that the CHART attendee will fill out to the best of their ability. CHART has committed broker partners who take our work and then try to match those interest areas with the expertise/appetites possessed by the risk takers that attend.
the meeting rooms are available the entire rooms the whole day so we took advantage of the time and scheduled 300 preset meetings before anyone even arrives. The CHART- Exchange and its broker partners had done a year's worth of pre-work before the Fall Meeting. The 300 pre-set meetings ultimately grew to close to 500 private meetings as people started to know each other and do referrals back and forth. .
There are other industry groups that are larger than Part of our us, more connected CHART’s future is to provide qualifications sent out than us, with hugely those entrepreneurial outlets in order to attend our successful strategies. meeting is a detailed for creators of new ideas and risk We know them all (and agency questionnaire. takers that are acceptors of new ideas. attend a few). They Fill this out, tell us serve our audiences about yourself. We These risk takers are often more willing well. However, CHART analyze to see if you're to do a smaller program, yet that is a unique model. large enough, how smaller program can start a relationship Smaller, more intimate, long you have been and singularly focused that can last a very, very long time.” in business; what your on new business pedigrees are for your between the U.S. owners and your underwriters. Our The qualification and “matching” and London. CHART was built team will check for specializations, are the core functions that makes purposefully around a set of core new ideas, existing blocks that us different from anybody else values. The central theme is: “ to would give us the comfort factor in this industry. To prepare our give up something of value to get that you understand the specialty audiences we have them come to something of greater value”. The business. our meeting ready to do commerce. definition of exchange. We also Sunday arrival is just to have some try to recruit attendees using the Rockwood is a Program fun and casual intros. Monday Biblical theme from Proverbs 27:17 Administrator. We’ve been doing night is the formal kick off and we “as iron sharpens iron so does one this for 20 years. Before that we host a cocktail party. person sharpen another”. were direct response execs at AIG for 15 years. So we know Since we rent the entire hotel and Imagine an entire meeting
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www.chart-exchange.com
Interview Glenn Clark: Thank you, Paul My main job here ( if you watch me) We said, “Here is your sole job, is to find the folks that are not when you leave us. If you believe yet engaging with us. If you are in what you witness first hand standing by yourself, I may approach in the next couple of days, bring you completely uninvited. “Hey, somebody else next year. Bring the who are you?” “How did you get right person, not just somebody here?” “Who talked you into this?” else. Bring a friend that’s made “Was it 20 phone calls, then you you better because that friend/ finally just gave up and said you’d Many agents when asked: “Who or colleague is going to make us all come?” What are you trying to do?” what is Lloyds” - have a stereotyped better.” “Hey, you need to meet Scott Addis or less than accurate image of the or you need to meet Bill Fahy,” that So who market. Another goal we have kind of a thing. is to demystify London while listens to teaching the benefits to a U.S. So, I enjoy the match making. entrepreneurs? agency becoming tribunalized Here’s another rock solid rule in this People who want (hint: increases agency value). We business. You help somebody get to grow.” employ a number of techniques ahead, it comes back to you. You such as mentoring, workshops, don’t have to be out for yourself. syndicate presentations , and panel You are out for our industry and you discussions to accomplish this task. Paul: One thing about you, you are blessed because you helped It is very interesting to hear from love what you are doing. somebody else. the syndicates first hand. Some needed a bit of encouragement Glenn Clark: Absolutely We all know the people in our lives and/or coaching as this is not a that said: “Hey, you are smarter task they are used to doing. With Paul: And very few people have than that.” They challenged you over 90 different syndicates it is that gift I think. and said, “You can do anything fascinating to learn what makes Glenn Clark: Well, I think you you want.” That’s the kind of each one unique. choose happiness. You choose to atmosphere we want to create, an An additional part of our values prosper wherever you are planted. encouraging forum so that if you system is to be with the best of the It's a wonderful industry and I’m a have a new idea, there is not 20 people saying, “You’re crazy.” The best . We’ve just articulated our bit of an evangelist for it. atmosphere of being with 300 likecore values at the group meeting to officially open up our event. We Paul: And you are also the kind minded people who want to do think CHART’s value system will be of person who absorbs everything new things is electric. You exit a well received by most. At the end, around you, you don’t separate meeting like this with new friends, asked everyone stand up and we yourself. You become part of it and new ideas, a more efficient network and best of all, new business. gave them a CHART Deputy sheriff’s that’s -populated by people who “give to get” and who are trying to help the other people they are interacting with to advance. It is dynamic and FUN. Conversely, if you are not an “Exchange” oriented person, you will either self-edit and not attend, or quickly be “outed” as not belonging in our group.
www.chart-exchange.com
badge (then deputized them).
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Analysis
ADMITTED VERSUS SURPLUS LINES INSURANCE: SOME IMPORTANT DIFFERENCES
There are aspects of both admitted and surplus lines insurers that can be good fits for insureds By Martin M. Ween
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or those who place insurance with and for Underwriters at Lloyd’s, the subject of admitted policies versus surplus lines policies inevitably comes up in one context or another, as Lloyd’s Underwriters are admitted in only two states, Illinois and Kentucky, and in the U.S. Virgin Islands. Questions are posed and placements are at times determined due to the admitted as opposed to the surplus lines nature of the policy. But why is this distinction important? What are the differences and why
Senior Of Counsel at Wilson Elser Moskowitz Edelman & Dicker LLP
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should an insured care whether the policy is on admitted paper or on a surplus lines basis?
Differences First, admitted carriers are those that are licensed in the specific state, either because they are domiciled in that state or they do direct insurance business in the state. These insurers can solicit risks and write insurance directly with insureds in the state and are subject to regulation by the state insurance departments, and subject to the laws, rules and regulations of the state. They must meet and maintain certain financial and administrative criteria to remain licensed. By contrast, surplus lines carriers are not domiciled or licensed to do business in the specific state and are generally not subject to all of the statutes, rules and regulations. They are barred from directly soliciting risks within the state and cannot write policies directly for state residents, but can only place policies through surplus lines insurance brokers duly approved and/or licensed in the state. Further, many states have lists of approved surplus lines carriers that are the only ones TABLE OF CONTENTS
permitted to issue policies to state residents. One of the major requirements imposed on admitted carriers is the requirement that they file their rates and forms for approval by the state insurance departments or state insurance commissioners. States vary as to whether admitted carriers have the opportunity to proceed with writing policies (1) using different rates and/or forms than originally filed, either while the carriers are in the process of seeking approval of their rate and form changes, on the basis of the nature of individual risks, or (2) as to certain types of coverage. By contrast, surplus lines carriers do not have to file or obtain approval for their rates and forms. This flexibility is one of the key reasons why there is a distinction between the two types of insurance carriers. Where admitted insurers are either unwilling to take on certain risks or are prevented from taking them on by state law, rules or regulations, the surplus lines carrier may be willing to create an appropriate form and/or charge an appropriate premium for the risk. These policies can be more “tailored” to specific risks or markets. www.chart-exchange.com
Analysis
This is not an open opportunity situations that arise. Surplus specific notices be communicated to write in the surplus lines lines carriers do not generally to the policyholder at the time of marketplace, however. Most states contribute to these guaranty issuance of the policy providing wish insureds to seek coverage funds and their insureds are not information regarding complaints from admitted carriers so the state eligible for the protection afforded and appeals and who to contact to can govern and police exercise these rights. Where admitted insurers are the carriers. Therefore, most states require that either unwilling to take on Also, it should be there be “due diligence” certain risks or are prevented from understood that an in first seeking to place admitted carrier may not taking them on by state law, rules the policy with an be a better insurer than or regulations, the surplus lines admitted carrier and a surplus lines carrier. A many states further highly rated surplus lines carrier may be willing to create an require that there be two appropriate form and/or charge an carrier may be a better or three rejections of the choice than a lower-rated appropriate premium for the risk.” submission by admitted admitted carrier, especially carriers before it can be if the specific coverage submitted to a surplus lines carrier. by the guaranty funds. Of course, being sought is not available or in the case of a policy issued is available only in a more limited by Lloyd’s, there are substantial form or at a prohibitive price from Incentives & trust funds in the United States the admitted carrier. Some surplus the Bottom Line for both admitted and surplus lines carriers, such as Lloyd’s lines policyholders that function Underwriters, may be a better There are certain incentives for an in many ways to provide similar choice for long-term continuity insured to seek an admitted rather protection to guarantee funds as than some admitted carriers than a surplus lines policy, if the to Lloyd’s insureds who are written that either have not been in the desired coverage is in some form on a surplus lines basis. specific market for a long period available from both markets. First, or are seen as possibly getting out admitted insurers are required to Policyholders of admitted carriers of that market in the future. contribute to state guaranty funds, also are afforded the protection which protect insureds covered of the various state insurance The bottom line is that there are by policies issued by admitted departments. For example if there aspects of both admitted and carriers against the failure or is a claim the policyholder feels was surplus lines insurers that can be inability of admitted carriers to pay handled improperly, complaints good fits for insureds. The needs losses. This can occur as a result of or appeals can be made to the of each insured must therefore be insolvency, depletion of reserves applicable insurance department. carefully considered to determine due to natural disasters, or other In fact, many states require that the best approach. www.chart-exchange.com
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Analysis
MAKING RISK ASSESSMENT MORE EFFICIENT FOR UNDERWRITERS
by Rich Wirth, York VP Risk Control
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nderwriters are busy people, trusted with the job of evaluating and accepting risks for their company’s book of business. Assessing that risk is a critical part of this process. Underwriters usually have help in the risk assessment process: loss control experts (either in-house or a team of expert third-party loss control consultants) that perform physical on-site inspections, assist in the interpretation of the information obtained through the application and third party reports, and conduct research via internet, etc.
-- like email notification and follow-up communications. The nature of these tasks means that they are time-consuming and provide a significant opportunity for error if not managed properly. Many of these activities seem insignificant enough when looked at individually, but when viewed in the aggregate consume significant time and take busy risk managers away from more productive (and profitable) tasks.
That’s why a risk control process that automates many of the timestealing and repetitive steps and provides top-level summary reports to underwriters to eliminate the effort needed to constantly sift through the details can provide Even with the assistance from loss significant time savings. control, many labor-intensive steps to the risk assessment process And that means everything to busy end up back with the underwriter risk management professionals,
who exist in a deadline-driven world, and who bear the responsibility to write and bind profitable business for their company. Here are a few parts of the risk assessment process that have the potential to impede productivity, and what can be done to prevent that from happening:
The Inspection Survey Order process Entering the required data during the Inspection Survey Order process often means handling it twice; once to get it into your system and a second time getting it into the 3rd party loss control system. Not only is this redundant, See RISK ASSESSMENT Page 20
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bout the author: Rich Wirth, Vice President Risk Control, oversees all sales and operations for the Risk Control division at York. With over 20 years of experience in the Risk Control industry, has managed all aspects of risk control business operations, and brings a successful track record of achieving and maintaining high levels of client satisfaction and retention. Prior to York, Rich was the President and Owner of BIS Insurance Services, a Florida-based inspection and audit company, where he was instrumental in developing and implementing all processes relating to the successful completion of insurance inspections and premium audits, resulting in an increase in client satisfaction, internal operations efficiency and new and existing client revenue growth for 18 consecutive years.
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www.chart-exchange.com
Analysis
York Risk Services Group, Inc. is honored to be a Preferred Vendor Partner of the CHART Exchange. We are a premier provider of TPA Services, Specialized Loss Adjusting, Customized Claim Solutions, & Risk Control Services for Lloyd’s of London & the London company market. We offer:
Dedicated Binding Authority Adjusting Team Dedicated E&S/Specialty Lines Open Market Adjusters Back office team for banking, bordereau production, MI reporting Customized Physical Risk Assessments (Risk Control) Virtual Risk Evaluation Services To learn more, contact Aubrey Fountain, at 850.650.2380 or Aubrey.Fountain@yorkrsg.com.
www. YORKRSG .co m
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Continued From Page 18
RISK ASSESSMENT but double data entry increases the probability for manual error and incorrect orders. By utilizing a Risk Control system that accepts data transfers from client systems, you eliminate the both the time spent in duplicate data entry
and also the potential for error that comes from having to manually key data from hard file printouts or copy/ pasting files.
Status Requests
A risk control process that automatically tracks progress to certain critical milestones, initiates follow-up with the loss control consultant and makes this information visible to underwriters at any time accomplishes two important tasks:
Risk managers operate with a tight timeline to either accept or decline • new business risk. When they must frequently initiate status requests for multiple potential clients from loss • control consultants, it’s a big drain on both time and efficiency.
Allows the underwriters the ability to check status when it’s most convenient and efficient for them Creates the transparency so necessary to build the trust that ‘partners’ require from each other
Underwriters usually have help in the risk assessment process: loss control experts (either in-house or a team of expert third-party loss control consultants) that perform physical on-site inspections, assist in the interpretation of the information obtained through the application and third party reports, and conduct research via internet, etc.
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Image Credit: Creative Commons
Analysis
Analysis Make sure your loss control process has a system in place that allows easy access to reports, notes, logs and other information needed to keep risk managers up-to-date and informed.
Analyzing Reports
When inefficient processes are corrected, and tools introduced to automate non valueadd tasks, risk control professionals are freed up to do what they do best: assess risk, build critical agency relationships and write profitable business for their company.
Once loss control reports are completed, risk managers still face the daunting task of analyzing the information in order to arrive at a decision. This often involves sifting through the pages of data to make sure the results meet underwriting guidelines, comprehend recommendations and otherwise ascertain the potential risk and coverage (items that need to be profitability. fixed or complied with) must be sent and follow-up is often One way an efficient risk necessary, creating a big time assessment process can help is to management responsibility for the provide a summary of key points underwriting department. and recommendations, what meets underwriting guidelines, York’s proprietary Risk Control and what red flags need attention. system automatically and York Risk Control’s system simultaneously generates templates are customized to client the customer branded underwriting guidelines, and recommendation letter along with provide the information needed the underwriter’s report, saving to make accurate summary-level tremendous time and effort. The comparisons quickly. recommendation and follow-up letters can be sent automatically The Recommendation to the retailer and/or Insured, Management Process allowing York’s system to manage the process. One of the most time-consuming parts of the risk assessment process Follow-up communication is sent is managing recommendation automatically and both client communication to potential and risk manager can update the insureds. Letters outlining what system at any time to ensure the must be done prior to obtaining most timely information for all. www.chart-exchange.com
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Summing It All Up Today’s busy underwriters face never-ending pressure to handle increasing workloads and manage tight deadlines. When inefficient processes are corrected, and tools introduced to automate non valueadd tasks, risk control professionals are freed up to do what they do best: assess risk, build critical agency relationships and write profitable business for their company.
ABOUT YORK RISK SERVICES GROUP York Risk Services Group, Inc., is a premier provider of risk management, claims handling, specialized loss adjusting, managed care, pool administration, loss control and other insurance services nationwide. York provides risk management and managed care solutions to a variety of strategic partners, including insurance carriers, self insureds, brokers, wholesalers, MGAs, programs, risk pools and public entities. The third largest TPA in the U.S., York delivers customized claims solutions for all lines of business, including property, liability, products liability, ocean and inland marine, environmental, transportation and logistics, construction and workers’ compensation. Based in Parsippany, New Jersey, York and has over 90 offices in the US and a strong international presence. Visit us on the web at www.yorkrsg.com. NOVEMBER-DECEMBER 2016
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News
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CYBER ATTACK TARGETS FINANCIAL INSTITUTIONS
oughly 20,000 customers of Tesco Bank, a large bank in the U.K., found their checking accounts missing amounts ranging from $25 to $745 as the bank fell victim to a cyber hack in early November. The incident is another example of an institution that has taken proper cyber security precautions, yet those precautions are not sufficient to stop cyber breeches. Also, the incident reveals that cyber criminals are having more success in hacking these prominent systems.
targeting financial institutions with fell victim to a cyberattack via malware worldwide. ransomware. The attack locked the board’s internal communication The U.K. Financial Conduct system by freezing e-mail, phones, Authority is aware of the matter computers, printers, and other and currently working with the technology. It took the board and bank. Customers can still use their insurance company about a week accounts and any losses will be for the board to regain control of handled by the bank. their system. Although the attack came at a time when banks have been understaffed and will respond more slowly, Cliff Moyce, global head of financial services at DataArt, said that the incident could not have been prevented by more employees at desks.
“Banking fraud is unfortunately very prevalent, and has been for a while,” said Tom Kirchmaier, a Update: researcher at the London School Ransomware Victim of Economics. “The industry is not very forthcoming with sharing data with the police, and so we only hear The Lansing Board of Water about the worst cases, and Tesco’s and Light in Michigan recently can be considered such instance.” The cyber security breach adds to the trend of prominent financial institutions like JPMorgan Chase & Co., HSBC Holdings Plc and the Federal Reserve Bank of New York becoming targets for cyber attacks. The second quarter of 2016 shows a 50 percent increase in hackers 22
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Fortunately, the Michigan board had a “Cyber Edge” insurance policy in place at the time of the attack. The policy covered almost $2 million of the $2.4 million the board spent on unlocking their system, paying the ransom, and installing new technology to prevent another attack. General Manager, Dick Peffley, said that paying the ransom was, ‘distasteful and disgusting, but sadly necessary.’
Lansing Board of Water and Light
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Analysis
CYBER-SECURITY RISKS INCREASING
I
Study: One Third of Targeted Attempts To Breach Corporations Succeed
f nothing else the constant talk smaller businesses and individuals The U.S. Department of Homeland of ‘leaked emails,’ ‘private servers,’ that holds data hostage are Security advocates that, “A robust cybersecurity insurance and ‘Russian hackers,’ phrases becoming common. that dominate today’s news cycle, market could help reduce should raise awareness that cyber the number of successful security threats is something that cyber attacks by promoting even the highest ranks of the United the adoption of preventative States government is having trouble measures in return for more controlling. coverage and by encouraging the implementation of best With cyber security threats on the practices by basing premiums rise, governments, corporations, on insured level of selfand individuals look for cyber protection.” defenses to catch up and keep their As cyber threats evolve data from being stolen. security defending data and intellectual property must According to a study conducted evolve as well. Accenture’s by Accenture, a third of targeted report writers conclude that attempts to breach corporations’ compliance with regulations is not cyber defenses succeed. However, “Cyberattacks are a constant enough and they purport that a roughly three quarters of executives operational reality across every reboot of cybersecurity is needed. at the corporations like the ones industry today and our survey under siege, remain confident in reveals that catching criminal “Just as adhering to generally accepted accounting principles their security strategies. behavior requires more than the does not ensure protection best practices and perspectives of “On average, an organization will the past,” Kevin Richards, managing against financial fraud, cyber face more than a hundred focused director of Accenture Security, North security compliance alone will not and targeted breach attempts every America, said. “There needs to be protect a company from successful year, and respondents say one a fundamental different approach incursions,” Accenture’s report in three will result in a successful to security protection starting with says. security breach,” Accenture’s Report, identifying and prioritizing key Building Confidence: Facing the company assets across the entire As of now, it seems the best defense against cyber attacks is Cybersecurity Conundrum. value chain.” awareness. Knowing the frequency The organizations Accenture’s Regulations have been put in place and effects of a cyber attack helps report refers to are high-profile cases by Federal and state authorities that draw attention to vulnerable areas. like that of Sony Corp., Target Corp., require stricter levels of protection Moving forward, better defense is and the U.S. Office of Personnel and transparency. However, needed, but that will take more Management, and leaks from the compliance with such regulations time and may never be completely e-mail accounts of Democratic Party is not sufficient protection against secure without users taking proper Officials. However, cyberattacks on cyber threats. precautions.
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News
WINNERS AND LOSERS IN THE DRONE BUSINESS
D
by Tyler Cichewicz
Anderson, Co-founder and CEO of employees, virtually ending their ue to the overestimated and 3-D Robotics. course in the consumer drone falling demand hobbyist market. However, the Berkeley based have for drones, drone After just a few weeks on the market, drone-maker plans to remodel the startup companies are shifting their Go-Pro recalled about 2,500 of their Solo to show the shape, size, and sights from the consumer market to drones because some units had volume of items at a construction specialized business applications. sudden power outages. No time site. frame for replacement has been Drone companies like DroneDeploy Makers of consumer drones like announced. and Airwaves also focus on the 3-D Robotics and Go-Pro are now adjusting their business models Zano, a European drone-maker that construction industry by developing to focus on drone services in targeted novices and hobbyists, shut software that relays anything from the angle of a pipe to roof damage insurance, construction, agriculture, down last year. from a hurricane. A distinction from and entertainment rather than the consumer market. However, under new, more relaxed previous efforts is that the drone itself, is no longer the focus, rather U.S. regulations, drone-makers aim A reason for the decreased demand to capitalize on software and services the software. stems from DJI, a Chinese technology that make use of aerial imaging for Some industry experts do not company that cut prices for their industries. believe 3-D Robotics will be able consumer marketed drone, the to successfully upgrade a hobbyist Phantom 3, from $1,000 to $300. After releasing a new consumer drone for commercial use. “It might drone, the Solo, for $1,500, 3-D be too little too late for 3DR,” said “Four years ago, it was enough to Robotics was forced to shut down industry analyst Patrick Egan. take something out of a box, you factories and lay off dozens of push a button and it flies,” said UPDATE: DJI just introduced the Phantom 4 - a stunningly advanced drone capable of almost any commercial inspection or creative task with 4K video Adam Lisberg, a spokesman for DJI. and 20MP stills allowing professional results with automatic subject tracking “The smart money is now in drone and terrain avoidance - and for a retail price of only $1499.00 Watch the Vid: services.” 3-D Robotics initially raised more than $125 million from venture capitalists, but has since had its consumer business suffer greatly. Recently, the drone startup company announced a new vision for the company that targets the construction industry. “It’s no fun watching prices fall by 70 percent in 9 months,” said Chris www.chart-exchange.com
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Analysis
AGENCY FINANCING FOR THE INSURANCE SECTOR
Local Lenders May Lack Understanding of Insurance Distribution Companies While Other Lenders May Actively Seek To Lend To Insurance Agencies by Trevor Murgio
O
ne of the most common things we hear from agency principals is that their overall growth has stagnated in recent years by a softening P&C market and a lack of organic growth. Whether these companies are retailers, wholesalers, MGAs or employee benefit shops, many of these agency principals tell us that if they just had the capital to acquire another agency or book of business, hire additional staff, refinance their existing debt, or fund other types of strategic development initiatives that they could get their business back on a positive growth track. Frequently, in talking with these agency principals, we find they are discouraged because when they turned to their local financial institutions they were unable to secure financing for a variety of reasons
including: lack of physical collateral, less then perfect credit rating, and, importantly, local lenders’ lack the understanding of insurance distribution companies and their stable recurring commission revenue stream. What most of these agency principals fail to realize is that while their local lender may be unwilling to lend to insurance distribution companies, there are in fact many lenders who actively seek to lend funds to insurance agencies. These lenders understand insurance distribution businesses and the value of their recurring revenue streams. Some lenders are even willing to use the agency itself as collateral to secure the loan making it unnecessary to pledge personal assets such as a home to secure financing. See Agency Financing Page 36
M
r. Murgio serves as a manager for M&A International LTD, an affiliate of Merger & Acquisition Services. His responsibilities include financial analysis, research, client support, and project management. Prior to joining Merger & Acquisition Services, Mr. Murgio worked for Indemnity Insurance Company of DC as a Risk Manager. Mr. Murgio earned his B.A. Degree from Elon University. He holds the Series 7, 79, and 63 licenses.
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News
U.S. HEALTHCARE REFORM IMMINENT
D
onald Trump’s upset victory over Hillary Clinton on November 8th created uncertainty around hospital companies as stocks fell the next day. Now, healthcare reform at some level is practically certain as Republicans, who have been critical of Obama’s Affordable Care Act, have control of the Senate, the Congressional House, and the Presidency. Trump’s criticism of Democratic policies began with his repeated pledge to ‘repeal and replace’ the Affordable Care Act (ACA). When Trump won the Presidency, hospitals and insurance companies that benefitted from the ACA watched their stock prices fall as fear, that Trump would uphold his campaign promise to drastically amend the law, spread throughout the stock market.
“The only potential defense against that [ACA reform] would be a Democratic filibuster - if Republicans even allow a filibuster,” said Austin Frakt, a health economist. Even if repealing the ACA in its entirety does not prove possible for Trump, he can still weaken the law through a series of smaller rule changes that would ultimately cripple the policy. "He could change the details of how the marketplaces work," Jack Hoadley says, a research professor at Georgetown University’s Health Policy Institute. "It's all worked out through regulation. You could just suspend the regulations."
“A Trump victory just increases uncertainty, which the market doesn’t like,” said Thomas Carroll, an analyst with Stifel Financial Corp, Still, large hospital companies saw drops in their stocks. HCA Holdings Inc. was down 12 percent Wednesday afternoon from the day previous. Tenet Healthcare Corp. and Community Health Systems Inc. fell more than 20 percent each in the same period. Chief Executive J. Mario Molina from Molina Healthcare Inc. faced a drop of over 14 percent; however Molina spoke optimistically about a Trump Presidency. Molina believes that under Trump, Medicaid will expand saying that Republicans want to cut costs but also make decisions that will be popular. Trump’s Presidential campaign touched on his plans for health care reform. One of his suggestions is to allow full competition within the market, which Trump claims will make insurance costs go down while ensuring the best quality care. With a Republican majority in the House and Senate, it will be difficult for Democrats to block these changes.
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Report
WHAT DID WE LEARN FROM OUR OCTOBER SUMMIT?
A
nyone who has been around me for a while knows that one of my key written communications “style” is to talk in tens. Copying a good Biblical example (Ten Commandments, ten plagues, etc.) is a pretty good strategy for getting your key points across in a succinct and understandable manner.
WHAT DID WE LEARN FROM OUR OCTOBER SUMMIT? 1. Venue Preference. Smaller gatherings develop greater intimacy and ultimately more commerce. Our 300 person limit and 420 face-to-face prearranged meetings have surfaced over twenty immediate programs and a huge pipeline for the future.
a. “I got mine and want to keep it that way”. They just don’t get CHART and do not subscribe to our core principles. b. “I do business with London and want to take maximum advantage while sharing my success with others”.
ethics, and technological efficiency in order to qualify for Coverholder status. CHART staff and our broker partners excel at this process. Our most committed group of attendees are the ones that will generate the most new commerce in London.
We love all of those in the second group! Building new programs, cross-sell partnerships with likeminded Coverholders, mentoring opportunities, new sub-producer relationships, and skills building via workshops feed this audience.
5. Underwriters. Lloyd’s underwriters take a bit of convincing. So many other organizations and meetings compete for attention. However, once we get them to a smaller venue built solely around the concept of new business with London, set-up over 400 pre-arranged meetings, and supplement it with social/networking time, they make the business happen. It is amazing to see the amount of expertise and underwriting authority held by the Syndicates. They can simply “out execute” many of the large U.S.-based firms. We only need 15-20 committed Syndicate partners to make CHART a game-changer!
2. Vendors. Treat them as trusted partners. Limit the number of vendors in each segment. Give them a Glenn Clark, Earliest Adopter, forum to create their own Opening the October Baltimore Summit offense (versus just a place in an exhibit hall) and the best ones 4. Potential Coverholders. Our will shine! new Coverholders are already specialists who have been quite 3. Existing Coverholders. There successful. The rigorous standards are two major groups of existing of Lloyd’s demand a level of Coverholders: expertise, financial soundness, 30
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6. Success Stories. If you are a vendor partner, broker, or Underwriter, the best way to win over new U.S. producers is via “success stories” directly from the mouths of those agencies you’ve helped in the past. Enough said.
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Report You soon learn that being a referee is not all that much fun…especially in comparison to being the athlete playing the game.
7. Disappointments. Build your strategy on good ideas and not the “promises” of others. Some of the biggest talkers – entities that stand to gain the most and seemingly the most committed – will come up short! However, if your idea is good and execution sound, for every disappointment you will be pleasantly surprised by warriors who fill the gap and save the day. Build your future with warriors!
10. Next Steps. Always survey your audience and be open to improvement. We know we intend to stay small and elite. Our core measurement metric will be new business moved to London. Committed partners are much more valuable to us than mere attendees. We know we have a niche that we can do better than anyone else.
8. Surprises. When you get 300+ like-minded people together, stand back and watch them go. Our impromptu pre-event get together We also know we sponsored by Wilson need to do a better Elser and C.J. Coleman Attendees Had a Spectacular Baltimore Harbor at Night job to communicate was EPIC. What was the unique messages supposed to be an Certainly, you are the only name intimate gathering for early arrivals all 300 people have in common of each of our Underwriters and Vendor Partners in advance of the ended up being a highlight of specific to the event. meeting or earlier in the process. our event. We have heard tens of stories of smaller connections from Over time you change from being breaks, workshops, shared meals, the host to the “referee”. A referee In 2017 we’ll promote a etc. where the real relationships are makes sure that the game goes membership model that will more information cemented. according to the rules. Meetings facilitate flow, easier collaborations, and on time, workshops/vendors 9. Changing of Roles. For me respected, speakers have full less dependence on the annual personally, this was a bit of a audiences, non-paying “interlopers” meeting to advance commerce. surprise. At first you are an early are kept off the event floor, and adopter who recruits everyone to “violations” are addressed with The member model will be featured the event. After a while you are the whistles, warnings, and “yellow in the January edition of The CHART Exchange Magazine. only name the attendees recognize. cards”. www.chart-exchange.com
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News
C
CYBER CRIMINALS TARGET ATMS
yber criminals found a new way to steal money from banks. In more than a dozen countries throughout Europe, cyber hackers used software that causes ATMs to empty its cash.
can before they get shut down.”
The world’s largest makers of ATMs, Diebold Nixdorf and NCR Corp. have been working with banks and customers to neutralize the losses. The attacks across Europe follow similar attacks in Taiwan and Thailand, which were widely reported on this past summer. Both ATM makers have provided banks with new ways of protection.
In addition to hacking ATM machines, cyber criminals have begun hacking bank networks resulting in not only access to ATMs but also electronic payment networks for larger amounts of money.
The recent European cyber attacks on ATMs came from a distant location, which allowed hackers to hit a greater number of machines and steal large amounts of money before banks detected the threat.
“What we are seeing demonstrated is the new model of organized crime,” says Shane Shook, a contracted security consultant assisting Group IB’s investigation. The FBI sent warnings to U.S. banks after hearing about the cyber attacks on state-run banks in Taiwan and Thailand for nearly $3 million.
Dimitry Volkov, the head of intelligence for Group IB, a Russian cyber security group, expects the attacks on ATMs to continue.
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EXCHANGE
For instance, last February cyber criminals took more than $81 million off servers that supported Targeting ATMs is common for cyber Bangladesh’s central bank; this is criminals, however, earlier attempts one of the biggest cyber heists on focused on a small number of ATMs record. Additionally, Russian banks because criminals needed to have lost over $28 million in wire-fraud cases earlier this year. physical access to the machines.
“They are taking this to the next level in being able to attack a large number of machines at once,” says Nicholas Billett, Senior Director of Core Software and ATM Security at Diebold Nixdorf. “They know they will be caught fairly quickly, so they stage it in such a way that they can get cash from as many ATMs as they www.chart-exchange.com
Authorities believe the cyber attacks come from a group called Cobalt, which is thought to be connected with a larger cyber crime organization called Buhtrap. TABLE OF CONTENTS
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Analysis Continued From Page 27
acquisitions, buy-outs, buy-ins, The second type of lender is a the purchase of real estate, office Commercial / Insurance Specific expansion, construction, as well as lender. Loan products offered by refinancing existing debt. The major these private commercial lending disadvantages of SBA loans are institutions are not guaranteed by they have strict personal credit and the U.S. government like SBA loans collateral requirements, and some and are therefore higher risk for In this article we will discuss the lenders can require mountains of the lenders. Often when insurance two most commonly used types paperwork to secure funding. distribution companies either of lenders, the loan products cannot meet credit or they offer, and the collateral requirements The key advantage of a SBA basic requirements loan is that they typically have for a SBA loans or to qualify programs, are looking for more as well as some of a lower interest rate than flexible terms such as their advantages and Commercial / Insurance Specific lender’s interest only loans or disadvantages. revolving lines of credit,
AGENCY FINANCING
loan products. The SBA program is often the best option for insurance distribution companies, provided they can meet the stringent credit and collateral requirements required for a SBA loan.
The first type of lender we will discuss is the Small Business Administration lender, or SBA lender. The SBA loans these lenders offer are partially U.S. government backed term loans that are available at most banks and some commercial lending institutions. SBA loans are one of the most common loans used by all small businesses including insurance distribution companies. The key advantage of a SBA loan is that they typically have a lower interest rate than Commercial / Insurance Specific lender’s loan products. The SBA program is often the best option for insurance distribution companies, provided they can meet the stringent credit and collateral requirements required for a SBA loan. SBA loan funds can be used for many uses including; 36
NOVEMBER-DECEMBER 2016
Below is an outline of the basic requirements and key features of SBA Loans. SBA Lender Basic Requirements • • •
FICO Score 640 or greater Collateral of 20%-25% total loan value No delinquency on any existing debt obligations to the U.S. government SBA Loan Key Features
• Rates as low as 5.25%* • Amortization up to 10 years* • Maximum loan amount up to $7 million • No prepayment penalty TABLE OF CONTENTS
or when higher lending limits than available in the SBA program are needed, we look into commercial lenders. We frequently work with several commercial lenders who actively target insurance distribution companies and individually craft loan programs to help agency principals in any scenario. Key advantages of loan products offered by commercial / insurance specific lenders are the less stringent credit and collateral requirements needed to secure financing, as well greater flexibility in the product offerings which include revolving lines of credit and interest only offerings. These lenders often require less paperwork than SBA lenders and in some case are able to fund deals in as little as two weeks. www.chart-exchange.com
Analysis The key disadvantage of commercial loan products offered by these lenders is their higher interest rates. However, these lenders are often willing to fund deals that SBA lenders or traditional banks would not even consider. Commercial / insurance specific loan funds can be used for many uses including; acquisitions, buy-outs, buy-ins, the purchase of real estate, office expansion or construction, as well as refinancing existing debt.
Our firm and affiliates provide both debt and equity solutions for agency owners looking to raise capital to fund acquisitions, partner buy-outs / buy-ins, or to refinance existing agency debt. M&A works in collaboration with national, local and insurance specific lenders as well as strategic equity partners to provide comprehensive capital financing solutions for agencies of all sizes.
Trevor Murgio (212) 750-0630 X42 Merger & Acquisition Services tmurgio@maservices.com http://www.maservices.com
Our expertise and industry knowledge allows us to approach Below we outline the basic a diverse cross section of lenders requirements and key features of simultaneously, often reducing Commercial / Insurance Specific the total time to fund transactions, loan products. and because we manage the entire process, agency owners Commercial / Insurance Specific are free to focus on running their Lender Basic Requirements business rather than managing the capital raising process. • FICO credit score is not the only factor in lending decision If you are currently looking to • Collateral requirement can be raise capital for your firm, contact meet with intangible business us today and learn how we can assets only develop a customized financing
Merger & Acquisition Services, Inc. does not underwrite securities, nor advise on, nor effect transactions in securities for the account of others. Investment banking services and all securities are offered in the United States by and through Merger & Acquisition Capital Services, Inc., a US registered brokerdealer and member FINRA/SIPC
Commercial / Insurance Specific Loan Key Features • • • • •
solution for your firm. All inquiries will be held strictly confidential.
* Shown for education purposes only and may not reflect actual rates and terms offered by lenders. All rates and terms are subject to change and determined by the actual lender.
Maximum loan amount up to $20 million Competitive rates as low as 6.00%* Amortization up to 12 years* No prepayment penalty Quick turn around funding can be completed in less two weeks
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News
NEW SPECIALTY FOR LLOYD’S SYNDICATE BRIT
Consortium will give London brokers ability to quote and bind stones up to $50 million
to take advantage of recent improvements in diamond cutting technology and risk assessment techniques.
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EXCHANGE
Craig Dennis, Fine Art & Specie rit Limited (“Brit”), the global Underwriter at Brit Global specialty insurer, is pleased Specialty, said: “We are delighted to announce the launch of to launch and lead on this a Lloyd’s consortium for diamond consortium, the first of its kind in the diamond processing space. processing. We believe that giving our London The consortium, which is led by brokers the ability to efficiently Brit, is Lloyd’s first dedicated to quote and bind stones up to diamond processing and affirms $50m will be a key differentiator Brit’s position as market leader in in a marketplace that is very much time sensitive.” this class of business.
B
Matthew Wilson, Brit Group Deputy CEO and Brit Global Specialty CEO, commented: “The successful launch of this consortium is another example of Brit’s commitment to Now quoting business, the new using its expertise and specialism consortium brings additional to innovate new solutions and capacity of up to $50m to the bring these to market. Delivering compelling products in niche London market. specialty lines is at the core of The Diamond Processing Brit’s underwriting proposition; consortium further demonstrates we are delighted to build on Brit’s market leading capability in our market leading offering in this specialty sub-class, providing diamond processing through this it with a strong strategic position new Lloyd’s consortium.” 38
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