Smith & Wilkinson’s Post

The first quarter brought something to the Southeast insurance market we hadn’t seen in quite some time: relief. What we began seeing in the later stages of Q4 of 2023 developed even more through the first quarter, as we saw increased capacity and pricing competition between carriers, leading to significant savings opportunities for well-prepared clients in both the commercial and residential space. The $325 million in new underwriting capital received by AmRisc LLC, one of the leading insurers for property in the south, will hopefully bring along even more opportunity to help clients continue seeing opportunities for program restructuring and savings.   That’s not to say there won’t be pressure coming from how the rest of the country is performing. The downgrade of State Farm General’s A.M. Best rating leaves many multifamily and commercial real estate owners scrambling to find coverage that meets lender requirements – 72,000 in the state of California alone will be non-renewed. The impact of the bridge collapse in Baltimore is also something that could slow down the aggressiveness of some markets in the E&S space as well, as the preliminary loss estimates are already in the billions of dollars. This could have a significant impact on the industrial space, where the growth in new inventory countrywide over the last two years has exceeded available capacity through preferred and admitted insurance markets, thus leaving some in the distribution and manufacturing industries finding themselves still dealing with an extremely difficult insurance market.   Overall, Q2 looks to be the time to get aggressive as possible with program restructuring prior to wind season. The next 60 days should see a ton of opportunity to find capacity in the insurance marketplace that wasn’t there at any point last year. If you haven’t already, now is the time to make sure your risk management team is actualizing construction, occupancy, protection, and exposure (COPE) information for all properties, to avoid valuation issues which can drive significant costs increases, and drive the best possible structure outcomes for your insurance program.

“Unraveling the Mystery: Insurance Broker vs. Agent”  When it comes to insurance, do you know the difference between an insurance broker and an agent? Let’s break it down: 🔍 Insurance Agents: Role: They’re like the neighbourhood salespeople representing specific insurance companies. Mission: Agents sell policies directly to you on behalf of those insurers. Expertise: They specialize in various insurance products—think auto, home, and life insurance. Affiliation: Some work exclusively for one company (known as “captive agents”), while others represent multiple insurers (“independent” agents). 🔑 Insurance Brokers: Role: Picture them as matchmakers between you and the insurance world. Scope: Brokers have access to the entire insurance marketplace. Responsibility: Their job? Finding you the best policy premiums, terms, and conditions. Customization: They work closely with insurers, underwriters, and agents to tailor coverage for you. So, next time you’re navigating the insurance maze, remember that agents focus on specific companies while brokers offer comprehensive services across insurers. Whether you’re seeking personalized guidance or exploring a wide range of options, understanding these distinctions will empower you in your insurance decisions! Brokers are a great fit. They make the insurance world less daunting, so lean on them—they’ve got your back, so you can do what you love!

Stay ahead of the industry curve as we delve into the California Commercial Insurance scene.🚀Discover 15 powerful startups revolutionizing the landscape in 2023. From employee benefits to risk management to general liability coverage for cannabis providers, these companies are transforming commercial insurance. 🏢🔒 Check it out here: https://lnkd.in/eSMgKjU4 The names shaking up the industry include: Carmichael Associates, Inc.. A powerful player making strides in Employee Benefits and Commercial insurance. Coopers Insurance Agency. Specializing in an extensive range of insurances including commercial and property. Gary Warner Insurance Agency Inc, founded by Tony Winser. Personal and business insurance services for a variety of consumer needs. Elite One Insurance Services. Protecting individuals, families, and businesses alike. John Nunes & Insurance Services. Covers everything from retirement to mortgage protection. Freeman Insurance Services. Providing risk management solutions for various insurance areas. Michelle Lim. From auto to health to business, they've got you covered. Eversafe Insurance Agency. Provides a solid mix of business and personal insurance services. Legends Environmental Insurance Services, pioneers in risk management and site pollution consulting. OG Cannabis Insurance. Specialists in insurance services for the cannabis industry. Greenwood General Insurance Agency. Commercial insurance service providers on a mission. Modoc Insurance Services. The go-to for auto, home and commercial insurance. SAMEDAY INSURANCE SERVICES INC. A full-servicing property and casualty independent insurance agency. Crosby Insurance Brokers. Offering a blend of commercial and highly personalized insurance lines. #insurance #startups #commercialinsurance #innovation #CaliforniaStartups

A recent Conning strategic study and article in Insurance Journal reveals that the Managing General Agent (MGA) Market continues to grow. Reaching over $80 billion in premiums, with growth of 13% in 2023, the MGA market is estimated to be worth $102.1 billion. Factors contributing to this growth include: • The demand for specialized coverage and underwriting expertise. • The integration of artificial intelligence (AI) technologies to enhance operations and optimize costs. • The attraction of talent to exciting entrepreneurial environments. • The flexibility of team members to collaborate in virtual work environments. MGAs play a vital role in the property and casualty insurance industry. Insurers are increasingly relying on MGAs like VERVE for their expertise and efficiency. VERVE was recognized as a top MGA for 2023 and continues to pursue excellence through ongoing innovation, team development, and a dedication to industry growth. Our scalable technology and distribution platform allows us to: • Source and mine internal and external data sets from the auto insurance industry. • Apply predictive analytics to that data. • Use those analytics to find profitable niches within the $260 billion private passenger auto insurance market. • Produce underwriting profits that outperform the industry. • Provide outsized returns to our insurance and reinsurance partners. For insurance companies and reinsurers that want to achieve outsized and winning returns on their capital, reach out to us at dan.lazarek@verveinsurance.com to learn more about how we can partner together. Read the full article here: https://lnkd.in/e7Duihqf

🌟 Spotlight on Akil H. : The Energy Behind Innovation in Insurance 🌟 In a sector as dynamic and challenging as the energy insurance market, Akil Harris stands out as a beacon of leadership and expertise. As the Managing Director at Marsh , leading the Energy Casualty Team in Houston, TX, Akil embodies the qualities of a visionary leader deeply committed to navigating the complexities of the industry with grace and foresight. 🛡️ Pioneering Excellence in Energy Insurance Akil's journey in insurance spans over two decades, marked by significant achievements and a steadfast commitment to excellence. With a team of eight dedicated energy casualty members, he provides unparalleled placement and advisory services to several key energy accounts across the United States. His role doesn't stop there; Akil is also the senior casualty resource on various complex accounts within the energy practice, guiding his clients through the intricacies of the market with unmatched expertise. 📈 Driving Industry Conversations One of Akil's notable contributions to the field is leading a monthly call that bridges the expertise of Marsh Houston, Marsh London, and Marsh Bermuda. These discussions are pivotal in sharing insights on ongoing market trends, issues, renewals, and RFPs, further establishing Akil as a central figure in shaping the future of energy insurance. 🎓 A Foundation Built on Knowledge Akil's deep understanding of the insurance industry is complemented by a solid academic background, holding a BA in Mathematics from The University of Texas at Austin. This mathematical precision translates into his work, where he approaches each challenge with analytical rigor and creative solutions. 🌐 Committed to the Community Beyond his professional accolades, Akil is a Licensed Broker in the State of Texas, demonstrating his dedication not just to his clients but to elevating the standards of the insurance industry as a whole. 🎤 Join Akil at "Breaking Barriers – Creating a Roadmap to Success" Akil Harris will be sharing his insights and experiences as a panelist at the upcoming "Breaking Barriers" event. This is your chance to gain firsthand knowledge from one of the industry's most respected leaders, especially if you're navigating or interested in the energy sector. 🎫 Don't Miss This Opportunity Prepare to be inspired by Akil and other distinguished panelists who are breaking barriers and paving the way for the next generation of insurance professionals. Secure your spot today for an event that promises to be enlightening, empowering, and transformative. https://lnkd.in/gsN5MemU Let's explore the future of insurance together with Akil Harris. Your journey towards success starts here. #Leadership #EnergyInsurance #AkilHarris #BreakingBarriers #Innovation #InsuranceIndustry #Marsh #ProfessionalGrowth

AM Best Upgrades Credit Ratings of Skyward Specialty Insurance Group’s Members. AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) to “a” (Excellent) from “a-” (Excellent) of Great Midwest Insurance Co. (GMIC), Houston Specialty Insurance Company, Oklahoma Specialty Insurance Company and Imperium Insurance Company (IIC). All companies are members of Skyward Specialty Insurance Group (Skyward), whose ultimate parent is Skyward Specialty Insurance Group, Inc. (Skyward Group), [NASDAQ: SKWD], and are headquartered in #Houston, TX. The outlook of these Credit Ratings (ratings) has been revised to stable from positive. In addition, AM Best has assigned a Long-Term ICR of “bbb” (Good) to Skyward Group. Also, AM Best assigned a Long-Term Issue Credit Rating of “bbb-” (Good) to the $20,000, 7.25% subordinated notes, due 2039, issued by Skyward Group. The outlook assigned to this rating is stable. The ratings reflect Skyward’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The rating upgrades are driven by the group’s operating performance, which is reflective of a sustained trend of improving underwriting results since 2020 following a change in executive leadership, as well as consistent investment income. Several years ago, following a past period of underwriting volatility, management began to institute numerous initiatives to refine its underwriting focus and risk selections and capitalize on their expertise in many segments as a specialty lines writer. Positive trends in underwriting profitability have been noted since that time in its targeted niches. AM Best will continue to monitor trends in premium growth, underwriting performance and overall operating results. Skyward’s management has also instituted numerous capital initiatives in recent years, which included a loss portfolio transfer intended to minimize the impact of discontinued lines. The group has also benefited from numerous parental capital contributions to support its operations. The assignment of the Long-Term ICR to Skyward Group follows its successful IPO. Financial leverage and interest coverage ratios at this holding company remain within AM Best’s expectations, with additional capacity to access the capital markets if needed. https://lnkd.in/eqAV4Zta

📖 Program Manager: March 2024 edition The migration of senior underwriting talent from carriers to MGAs has been a dominant theme of the last few years and one of the drivers of the program sector’s strong growth trajectory. The generation and regeneration of MGA, MGU and program administrator businesses is of course nothing new, with the space often viewed as a home for innovation and entrepreneurial talent to bring solutions to distribution partners. Historically this has been focused on what would be considered more “traditional” or “true” program business – product driven, more homogenous or affinity offerings targeting niche classes and industry segments. But the more recent trend has seen an exodus of underwriters focusing on bigger ticket specialty lines and more mainstream, open market business such as professional liability, property and casualty, as they leave seats at commercial insurance carriers. And in this month’s issue we lead off news about the latest venture to fit that description, with Pat Kenahan’s new excess casualty MGA First Specialty XS set to begin underwriting risks incepting 1 April. The venture has Applied Underwriters affiliate United Risk among its backers and has secured paper from MS Transverse Insurance Group, understood to be backed by reinsurers including Arch, RenaissanceRe and Conduit Re, with capacity of up to $15mn per risk above a $10mn minimum attachment point. Our other lead news article features K2’s move to successfully transfer around $300mn in program business from Homesite to Fortegra, with negotiations ongoing with other potential capacity providers. Our Editor’s letter this month is penned by my colleague Christopher Munro, who has just taken on the role of Editor for Program Manager in addition to his position as Associate Editor at The Insurer. He looks at the symbiotic relationship between the MGA sector and the still-booming E&S market, as our sister publication E&S Insurerprepares to host its second annual conference and awards events in NYC next week – which should provide a good barometer for the health of the sector. In other news, we reveal that Clear Blue Insurance Group has hired former Swiss Re executive Lee Brenner for the newly created role of chief of insurance operations, as it targets more conservative top-line growth in 2024. ✅ Read in full here – only available to subscribers: https://lnkd.in/eDkPGZZB Our partners: AM Best | CRC Insurance Services | DUAL Group | Euclid Program Managers | MS Transverse Insurance Group | One80 Intermediaries | Ryan Specialty | Risk Placement Services, Inc. | State National Companies (SNC) | Target Markets Program Administrators Association (TMPAA) | Nationwide | Markel #ProgramManager #insurance #reinsurance #mga #mgu #underwriting

APCIA Sets Priorities for 2024, Aiming to Tackle Key Insurance Industry Challenges: The American Property Casualty Insurance Association (APCIA), a leading trade group for the home, auto, and business insurance sectors, has outlined its strategic focus for 2024. APCIA plans to proactively engage in nine high-priority areas, as well as address ongoing challenges in the property-casualty insurance industry. Stef Zielezienski, the association’s executive vice president and chief legal officer, emphasized the need to combat legal system abuses, which impact insurance affordability and the viability of businesses. 1. APCIA’s nine priority areas for 2024 include: 2. Curbing legal system abuse in collaboration with the broader business community. 3. Supporting risk-based pricing, rating, and underwriting tools. 4. Focusing on innovation, regulatory modernization, talent development, and economic empowerment in the insurance industry. 5. Addressing challenges in catastrophe insurance, including implementing recommendations from the federal Wildland Fire Mitigation & Management Commission Report. 6. Ensuring the sustainability and soundness of the state-based workers’ compensation system. 7. Protecting insurance contract certainty against legislative, regulatory, or judicial overreach. 8. Addressing cost drivers in automobile insurance. 9. Preserving a sound taxation structure for property-casualty insurance. 10. Advancing international trade, market access, and regulatory modernization. Furthermore, APCIA will address issues that span multiple priority areas. These include opposing restrictive ESG-related mandates, countering false narratives about the insurance industry, and identifying risks of government intrusion that could affect insurance affordability and availability for consumers. Zielezienski’s statements underscore APCIA’s commitment to tackling broad and complex issues facing the industry in the coming year. #Catastrophe #LegislationandampRegulation #RiskManagement

Golden State Mutual Life Insurance Company, the largest Black-owned insurance company in the West, was founded by William Nickerson, Jr., Norman Oliver Houston, and George Allen Beavers, Jr. On July 23, 1925, they opened as the Golden State Guarantee Fund Insurance Company in a one-room office at 1435 Central Avenue, Los Angeles, with few amenities and $17,800 in capital. Within three months, the company had outgrown its office and moved to a storeroom at 3512 Central Avenue. By the end of its first year, the company established an office in Oakland, sold more than $260,000 in policies, and had $6,000 in reserves and a surplus of over $16,000. Within three years, Golden State Insurance had more than 100 workers, including 60 agents and branches in Pasadena, Bakersfield, San Diego, and Fresno. In 1928, using all African American design and labor, they built a two-story building at 4261 Central Avenue, where the firm occupied the top floor while the main floor was rented to Black merchants. Intelligent business decisions helped them weather the Depression, remaining profitable throughout and even paying out dividends beginning in 1930 and continuing, uninterrupted, to this day. The name was changed to Golden State Mutual Life Insurance Company in 1931, and by the end of the 1930s, assets had grown to $437,000 with $6 million in policies. In 1938 they set up operations in Illinois, and in 1944 they opened a branch in Texas. By the end of World War II, assets stood at $2 million, surplus funds at $750,000 with nearly $24 million in policies. By the 1980s, Golden State Mutual was struggling to maintain profitability. The Golden State Mutual African American Art Collection was sold at auction on October 4, 2007, and dispersed. On September 20, 2009, California Insurance Commissioner Steve Poizner placed Golden State Mutual into conservation after its surplus funds dropped below the required minimum levels. This occurred after six consecutive years of net operating losses. The state ordered that Golden State Mutual’s policies be taken over by IA American Life Insurance Company. #africanhistory365 #africanexcellence

Allianz Global Corporate & Specialty (AGCS) to focus on U.S. Large Corporate and Specialty insurance with sale of U.S. MidCorp and Entertainment businesses to Arch Insurance Group Inc. North America for total transaction value of $1.4 billion AGCS will continue to leverage its competitive advantages in the strategically important U.S. insurance market through its Large Corporate and Specialty business as part of its Allianz Commercial strategy The transaction includes risk transfer for Allianz, as Arch is assuming approximately $2 billion of loss reserves associated with the business. The cash payment from Arch, together with an estimated $1.0 billion of Allianz capital supporting the business, is expected to result in $1.4 billion of total transaction value for Allianz Group. Approximately 500 employees from Allianz are expected to transfer to Arch as part of the agreement. Going forward, AGCS U.S. will focus on its Large Corporate and Specialty business, where U.S. brokers and clients benefit from Allianz’s strong global and industry-specific capabilities across underwriting, claims, and risk consulting, including multinational insurance programs and alternative risk transfer. “This strategic step for our U.S. business allows us to leverage our strengths in these important market segments, where we have deep expertise in addressing our clients' most complex risks,” said Tracy Ryan, AGCS Chief Executive Officer for North America and member of AGCS’s Board of Management. “We are proud of our employees who have served our U.S. MidCorp and Entertainment clients and brokers over the years. We are confident that they will be a strong addition to Arch, ensuring continuity for our partners.”  The businesses subject to sale are underwritten by Fireman's Fund Insurance Company’s and its subsidiaries, namely American Automobile Insurance Company, Chicago Insurance Company, Interstate Fire & Casualty Company, and National Surety Corporation and collectively totaled $1.7 billion of gross premium written in 2023.