Posted by: jmwilsonmga | December 27, 2011

What does PUTTER mean to You? Golf and the Excess & Surplus Insurance Marketplace

With the many changes we are currently seeing in the insurance market place – prices, coverages – you may be asking “what is going on”?  I would like to share a recent presentation by Bill Reynolds, President of Atlantic Casualty Insurance Company, a great market that J.M. Wilson is privileged to work with.  This presentation was given at the annual Texas Surplus Lines Association Meeting. In it, he shares great insight into the current market place, the opportunities, the changes and the challenges we are seeing.

 I believe Bill has a great read on this one, and you may never look at your PUTTER the same. -Sandi Fritz, J.M. Wilson Vice President, Branch Offices

Bill Reynolds, President of Atlantic Casualty Insurance Company

“When asked to speak about what trends I see in the current E/S marketplace, the word PUTTER came to mind!

Here is why…

When you assign words to each letter of the word PUTTER, one can easily come up with the following:

Pricing Underwriting Technology Talent Education Relationships

Pricing: We are currently seeing some modest increases in pricing. With all of the catastrophic events which have happened this year, Reinsurers and Primary Carriers are feeling quite a bit of pain. Increasing property rates only will not erase the losses. Consequently, both Reinsurers and Primary Companies are going to have to raise rates on all lines in order to make an underwriting profit. In addition, companies, like ACIC, are focusing on classes of business which have historically made them a profit. They are finding ways to “laser price” these classes so that they write more of the profitable classes and less of the unprofitable ones.

Underwriting: Historically, E/S companies have applied sound underwriting judgment on the risks they write. This is one reason why for the past seven years there have been “zero” financial impairments in the E/S arena. During this same seven year period, eleven admitted carriers have undergone financial impairment. We understand that adequate pricing coupled with proper exclusionary language is the key to success. Today, business which left the E/S market for the standard markets at lower pricing and with fewer exclusions is once again starting to flow back to the E/S market. Why? Because those accounts which were priced inadequately and coverage was extended had claims!

Technology: ACIC recognizes the need for us to provide our Wholesale General Agents the tools necessary to help them reduce their expenses when doing business with us. With ACES, we have reduced your operating expenses by taking you out of the cumbersome and expensive role of maintaining rates, rules, and forms. Not only does this help you in the short term by eliminating errors with respect to rating and policy issuance, it helps you in the long run by reducing your exposure to Errors and Omissions claims. This makes it easier to do business with us while at the same time enabling you to spend more time doing what you do best…servicing the needs of your customer.

Talent: I am a firm believer that the E/S industry today has more talent than at any time in our history. Our next generation of leaders has embraced the technological advances we have made and combined them with astute business savvy. This talent will enable our segment of the industry to continue to flourish and be creative when faced with opportunities to insure what may seem to be uninsurable to the standard admitted markets.

Education: Over the years, the variety of specific E/S educational opportunities available through organizations like Napslo, AAMGA, various state surplus lines associations, and colleges and universities, has enabled those who are in our industry to discover and experience more than just information about a particular coverage part.

Relationships: This is the cornerstone of our industry. I don’t care how adequate your pricing methodology is; how thorough the underwriting manual may be; how advanced your technology is; how talented and educated your employees are; if you do not have a positive relationship with your client…nothing will work…and nothing else matters. People do business with people with whom they like to do business. All of us have to keep in mind that the relationship we have with our individual clients is what makes us successful in the long run. It is our belief at ACIC that we are in business for you…not the other way around. Our intent in all that we do is to make it as easy as possible for you to do business with us. By doing so, we accomplish another of our goals…to make it easier for you to do business with your client. We truly value our relationship with you and want to do what we can to grow that relationship even more.”

Introduction by : Sandi Fritz, Vice President, Branch Offices

Sandi Fritz joined J.M. Wilson in 1981 and currently serves as the Vice President, Branch Offices.  She manages the transportation team in Michigan and in the branch offices, as well as works with our companies to foster relationships, communication, training, and goals.  She also manages each of our branch offices helping them to meet their goals, communicate, and train.  Sandi loves everything about insurance.  She can’t imagine doing anything else, anywhere else.  She loves helping people write business and meet goals.  Sandi feels very privileged to have met and known some of the greatest people in the insurance industry.  In her free time, Sandi enjoys being involved with her church, running, biking, skiing, and spending time on the beach.

Disclaimer :  This article is for informational purposes only.  There is no legal advice being suggested or proffered.  The author assumes no responsibility or liability for the actions taken or not taken by the readers based upon such information.  This article is the opinion of the author and is not supported or endorsed by J.M. Wilson.  It should not be relied upon and may contain inaccuracies or content may have changed over time, contact your underwriter for the most current and accurate information.  Any comments or responses are the opinions of their authors.  Content on this site is believed to be covered under Fair Use.

Copyright 2011 J.M. Wilson Corporation

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