The Insurer’s Post

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/eyUCQQur 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 The Insurer

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

Algorithmic underwriting is real. It is indeed the only way forward to close the insurance gap for #SME businesses. Aurora has trailblazed yet again through another ambitious milestone and launched their Commercial Combined product supported by AXA capacity. WTW insurance technology like #Radar and #RadarLive are enabling the vision of Jan-Vincent Finn and Bijal Patel and supporting the pricing and delivery under the hood. Commercial lines insurance is changing at a pace we never witnessed before and the way in which risk will be consumed and transferred in the future will be radically different. #risktokenization #computablecontracts #insurtech #insurance #innovation #algorithmictrading Tiffine Wang Insurance Insider Louise Smith Insurance Innovators Plug and Play Insurtech Insurtech Insights Sebastian Pitzler Sabine VanderLinden

Aurora launches flagship Commercial Combined solution with record limits of indemnity cover.   8th July 2024 – Aurora, the digital commercial insurance business has launched its flagship Commercial Combined offering. The new product, encompassing Property, Business Interruption, Employers Liability and Public Liability, is supported by AXA Insurance, and available to brokers and insureds online via Aurora’s dynamic, algorithmic and data-driven insurance platform. The MGA has secured limits of indemnity of up to £12.5m on Property and £10m on Public Liability, automating segments of the market which typically require human intervention to enable instant quote and bind for hundreds of trade types. Aurora’s platform delivers a vast range of additional services and benefits for brokers, insurers and customers. It enables brokers to choose from modular and granular additional elements of cover. This announcement also coincides with Aurora’s release of the first iteration of its portfolio management proposition. Allowing greater oversight, portfolio grip and granular insights to help Aurora and its insurance partners monitor and improve performance in real-time. Co-founder and CTO, Bijal Patel commented: “Delivering our algorithmic and our data led thesis for such a complex product set is an incredible milestone. We’re thankful to AXA for demonstrating their confidence in our algorithmic framework, making it easier and quicker for brokers and insureds to get quotes in real-time for more complex risk profiles.” Co-founder and CEO, Jan-Vincent Finn commented: “We believe that algorithmic lead and follow will very much become a material part of the future of the commercial line’s ecosystem. Automating such a complex package of products where appetite, rules and pricing are typically applied by an underwriter is a signal of Aurora’s intention to be part of this augmented and future looking ecosystem.” ENDS For further information on Aurora please contact :   Kirsty Plank, Full Circle Communications M  +44 (0)7799178687 E    kplank@fullcirclecomms.co.uk   Notes to Editors About Aurora Aurora is a digital MGA providing businesses with tailored, easy to understand, affordable insurance products in real-time. Underpinned by a proprietary algorithmic underwriting platform, the insurance procurement process has been augmented for over 700 trade types. Aurora utilises hundreds of different data points to enable the instant purchase of complex insurance products whilst embedding data-driven analytics and insights, allowing more informed product selection from an ever expanding portfolio of market-leading insurers. Aurora’s culture is underpinned by support, opportunity and innovation and is driven by the positive impact it hopes to make on the progressive businesses and communities it supports. We’re looking after what’s ahead.

Joining The Fire Dudes LLC (TPA) Network offers a unique set of advantages for both insurance adjusters and restoration contractors, positioning them to thrive in the competitive restoration and insurance industries. Here’s how: For Insurance Adjusters: 1. Streamlined Collaboration: The Fire Dudes LLC network fosters seamless communication between adjusters and restoration professionals, enabling efficient project handling and quicker claim resolutions. 2. Access to Top-Tier Restoration Experts: Adjusters gain access to a pre-vetted network of skilled contractors who deliver consistent, high-quality work, making the claim evaluation and settlement process smoother. 3. Enhanced Service Quality: By partnering with a TPA network that prioritizes professionalism and integrity, adjusters can confidently recommend restoration teams that deliver industry-leading results. 4. Advanced Tools & Support: Adjusters benefit from utilizing cutting-edge tools and support systems provided by The Fire Dudes LLC, designed to optimize claim assessments and streamline documentation. For Restoration Contractors: 1. Increased Project Opportunities: Membership in The Fire Dudes LLC network opens doors to high-value projects and strategic partnerships with reputable insurance companies, driving consistent business growth. 2. Credibility and Market Exposure: Being part of an established TPA network enhances contractors’ credibility, positioning them as trusted partners for both insurance carriers and property owners. 3. Less Administrative Hassle: Contractors enjoy reduced administrative burdens through The Fire Dudes LLC’s streamlined processes, allowing them to focus more on delivering top-quality restoration services. 4. Support for Fair Pricing: Our network stands firm against excessive negotiations, ensuring contractors are compensated fairly and accurately for their services without unnecessary cuts to estimates. 5. Professional Development: Gain access to training, resources, and industry insights that keep your team on the cutting edge of restoration practices, ensuring long-term success. By joining The Fire Dudes LLC (TPA) Network, both adjusters and contractors benefit from a partnership built on shared values of excellence, reliability, and mutual success. Santos Cortes W: www.thefiredudes.net

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.

Meet Jordan Arana, CPCU, AU-M, AINS, AIS, Honeycomb's brilliant underwriting manager, whose unwavering commitment and exceptional skills have played a pivotal role in driving Honeycomb's ongoing success. A self-proclaimed insurance nerd, Jordan loves immersing himself in every aspect of the industry. 🐝 What fuels your remarkable passion for insurance? My passion stems from the security and peace of mind that insurance provides to people! Insurance is one of the world’s strongest catalysts for Socio-Economic growth. Simply put, insurance helps the world much more than the world may realize. Insurance provides financial stability and peace of mind for businesses, individuals, and households, stabilizes and compliments government programs, facilitates commerce and trade, and enhances society’s ability to manage risk and prevent loss in an effective and efficient manner. Without insurance, people would find it very difficult to secure a loan, or adequately protect the things they love. 🐝 What inspired you to join the Honeycomb team? Honeycomb was and continues to be a major disrupter in the commercial habitational insurance space. Upon meeting with Benjamin Piening, MBA, CPCU, CRM, CIC, ASLI, AU and the team at Honeycomb, I quickly realized that Honeycomb embodied the future of habitational insurance, and I was excited to have an opportunity to be a key contributor in something so groundbreaking. From my very first meeting, I knew that I belonged with the hive. Meeting with the team at Honeycomb put the magic back into insurance for me! 🐝 What notable transformations have you observed in the field of underwriting in recent years? The hardening market has placed substantial emphasis on rate adequacy and ensuring appropriate insurance-to-value. Catastrophic weather events and nuclear verdicts have driven the industry to find more creative solutions to managing risk. From more insureds turning to the E&S market for their insurance solutions, to the development of parametric insurance products, to the utilization of big data, IOT tools and so much more, insurance continues to rapidly evolve to create the solutions needed to combat the world’s emerging problems, and this is at the very essence of what we do here at Honeycomb. 🐝 Who is Jordan Arana when he's not immersed in enhancing Honeycomb's products? Amid the hustle and bustle, you have to be able to disconnect and simply BE. Meditation and exercise, especially outdoor activities like hiking and biking, let me immerse myself in the present moment and connect with nature. Conscious living is very important to me; I strive to live sustainably and encourage others to try to do the same. Our planet is extraordinary, and it's our responsibility to ensure its preservation!

What is an MGA? A Managing General Agent (MGA) is an agency that is contracted to perform various business functions, such as underwriting, binding, policy administration, claims, and distribution, on behalf of (re)insurance companies. Some MGAs specialize in a particular type of insurance or risk, for example: property, cyber, aviation, or construction. MGAs are different from insurance brokers in that the insurer has given the MGA the power to underwrite and perform various other tasks that would normally be performed by the insurer inhouse. Some MGAs are independent businesses, others, insurer-owned or broker-owned. What is delegated authority? Delegated authority is at the core of the MGA business model. The term ‘delegated authority’ refers to a contractual arrangement under which one party authorizes another party to act on their behalf. An insurer grants an MGA the authority to perform certain business functions on its behalf: underwriting, binding cover, claims handling etc. without having to obtain case by case approval from that insurer. These two parties have a ‘delegated authority relationship.’ AM Best talks about the “delegated underwriting authority enterprise” which it defines as, “a third party appointed by a (re)insurer, through contractual agreements, to perform underwriting, claims handling, and other administrative functions on behalf of its partners.” [1] The MGA is the most common form of DUAE. This category of insurance entities also includes Managing General Underwriters (MGUs), coverholders (term used in the UK, primarily with respect to the Lloyd’s market), and program administrators, among others. Note, it can be hard to distinguish the differences, and names are at times. What do managing general agents do? The breadth and depth of MGA’s operations depends on the extent of the delegated authority granted by the (re)insurer. The insurer may also specify a particular line of business or set of insurance products. MGAs may contract to work for insurers. The functions the MGA takes on may include, but are not limited to: •Soliciting new business – promoting insurance products to customers, agents, and brokers, appointing retail agents; •Underwriting risk – assessing, rating, and accepting or rejecting risk within pre-agreed parameters, pricing insurance policies •Binding cover – committing the insurer to a new insurance policy, issuing insurance policies •Policy administration – billing and collecting insurance premium, processing, servicing and renewing policies •Claims management – investigating, processing, settlement claims, assisting with loss control.

Equanimity: Definition & Application in Insurance Equanimity is the state of being calm, composed, and even-tempered, especially in difficult situations by maintaining mental stability and emotional balance regardless of external circumstances. In the context of insurance, here’s how it applies: 1. Claims Handling: For Insurers: Insurance companies often deal with stressed and anxious clients during claims processing. Maintaining equanimity allows claims adjusters and customer service representatives to handle claims efficiently, empathetically, and fairly, ensuring clients feel supported. For Policyholders: After an incident, such as a car accident or property damage, policyholders can benefit from equanimity by staying calm and collected. This helps them provide accurate information, follow necessary procedures, and make rational decisions during the claims process. 2. Risk Management: For Insurers: Insurers must assess risks without panic or undue optimism. Equanimity helps underwriters and risk managers evaluate potential risks and make balanced decisions about coverage and premiums. For Policyholders: It aids policyholders in objectively assessing their insurance needs, understanding policy terms, and avoiding impulsive decisions that could lead to inadequate coverage or unnecessary expenses. 3. Conflict Resolution: For Insurers: Disputes may arise between insurers and policyholders or between insurers and third parties. Equanimity allows for calm negotiation, facilitating resolution & maintaining professional relationships. For Policyholders: When disagreements occur, such as disputes over claim settlements, policyholders with equanimity can negotiate more effectively and seek fair resolutions without escalating conflicts. 4. Customer Service: For Insurers: Providing excellent customer service requires handling inquiries, complaints, and emergencies calmly and efficiently. Equanimity ensures consistent, high-quality service, even in high-pressure situations. For Policyholders: Interacting with insurance representatives with equanimity can lead to more productive conversations and better outcomes, especially when discussing complex or sensitive issues. 5. Decision Making: For Insurers: Strategic decisions, such as developing new products or entering new markets, require a balanced approach. Equanimity helps insurance executives weigh options, consider potential impacts, and make informed decisions. For Policyholders: Choosing the right insurance policies involves understanding options and risks. Equanimity helps policyholders evaluate their needs, compare plans, and make informed choices. Conclusion: This is a valuable trait in the insurance industry, fostering better communication, decision-making, and conflict resolution. Both insurers and policyholders benefit from maintaining calmness and composure, leading to more effective risk management and smoother claims processes. MORE HERE: https://lnkd.in/dnyiiCh5

When speaking with your agent or advisor absolutely, when property and casualty insurance owners engage with their agents, there are several key considerations to keep in mind. Here are some important points to consider when talking to your property and casualty insurance agent: Property Valuation: Regularly review and update the valuation of your property to ensure that your coverage accurately reflects its current replacement cost. Policy Coverage: Understand the specifics of your insurance policy, including coverage limits, deductibles, and any exclusions. Ensure that your policy aligns with your risk tolerance and business needs. Risk Management: Discuss risk management strategies with your agent. Identify potential risks specific to your property or business, and work together to mitigate those risks effectively. Policy Reviews: Schedule periodic policy reviews with your agent. As your business evolves or market conditions change, your insurance needs may also shift. Regular reviews help ensure that your coverage remains adequate. Claims Process: Understand the claims process and reporting procedures. Familiarize yourself with the steps to take in the event of a loss, and clarify any questions you may have about the claims handling process. Deductibles and Premiums: Discuss the relationship between deductibles and premiums. Adjusting these variables can impact your overall insurance costs, and your agent can help you find the right balance. Policy Endorsements: Be aware of any policy endorsements or optional coverages that might be available. Your agent can help you tailor your policy to your specific needs with additional endorsements if necessary. Updates and Changes: Inform your agent of any changes to your business operations, property, or other relevant details. Keeping your agent in the loop ensures that your coverage remains accurate and up-to-date. Bundling Policies: Consider bundling different insurance policies (e.g., property, liability, and business interruption) with the same insurer. This may lead to cost savings and simplifies the management of your insurance portfolio. Insurance Market Trends: Stay informed about insurance market trends and how they may impact your coverage and premiums. Your agent can provide insights into market conditions and potential changes. Effective communication with your property and casualty insurance agent is crucial for maintaining comprehensive coverage that aligns with your business needs. Regularly reviewing your policy and discussing any changes or concerns with your agent helps ensure that you are adequately protected. If any of these questions or concerns come up for you please feel free to reach out and I will share my expertise of how to solve your issues or concerns. Grant Privette 541-554-4726 gprivette@buckner.com