2017 Power Broker

Financial Services

No Jargon, Just Action

Edward Conlon
Senior Vice President
Aon, New York

Edward Conlon became the broker of a registered investment adviser and a related broker-dealer after a spinoff and merger at the holding company level.

Despite a difficult loss history on the broker-dealer side, Conlon saved the combined entity 55 percent on its premium by showing carriers how the client improved its controls, including terminating problematic employees.

He was also able to get a carrier to reverse a claim denial dating back to before Conlon had taken on the account. The carrier ultimately contributed a significant sum of the applicable limit toward settlement.

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Ken Rizzuto, vice president, risk management, at iHeartMedia Inc., said that he oversees an “extremely complex” D&O program that services elements of a public and private company with two boards of directors and 23 layers of coverage.

“Each year, Ed has put together a very comprehensive program with all the coverage enhancements that the market has to offer,” Rizzuto said. “Ed’s keen familiarity and good relations with the markets allow him to assemble the best program at the best price for his clients.”

“He’s able to explain complicated issues, bringing it to the level of an average accountant,” said a director of accounting operations at a financial services software firm. “When I’m talking to him, I don’t feel like I’m talking to an insurance agent — no jargon.”

Enthusiastic and Determined

Craig Glendinning
Senior Vice President
Marsh, London

Craig Glendinning developed Marsh’s commodity document fraud (CDF) policy last year in response to client demand following the $1.4 billion Qingdao port fraud in China in 2014, which involved the use of metals for collateral. The new policy addresses the lack of coverage provided by traditional fraud policies, by insuring organizations against financial loss sustained when accepting fraudulent title documents and receipts from clients or third-party vendors.

The CDF policy was developed in close collaboration with a number of Marsh’s U.K. and U.S. commodities industry clients, and is now being purchased by organizations in the banking and trading sector. Clients seeking to expand into emerging markets are particularly interested in the new product.

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“Craig helped us develop a bespoke insurance solution that was aligned precisely to the risk that we were trying to mitigate,” said Emily Jenner, head of insurable operational risk at Standard Chartered Bank. “He went over and above to ensure he understood the issue and worked hard to get the best possible solution from the insurance market. As a result of Craig’s enthusiasm and determination, the bank now benefits [from] an insurance policy that helps reduce what we consider to be one of our top five risks.”

“Craig is a tremendous partner,” said Kevin Nye, senior vice president at Royal Bank of Canada. “He is client-oriented, understands the industry and market, and is always focused on value-added solutions and approaches — I can’t say enough about him.”

Superior Service

Craig Goesel
Senior Vice President
Alliant/Mesirow Insurance, Chicago

One of Craig Goesel’s regional bank clients wanted to obtain full-limit coverage for the type of social engineering scams that involve executive impersonation, but carriers were reluctant to provide a substantial limit for the exposure.

Goesel convinced carriers to meet at the bank’s “wire room” to understand its loss prevention measures, enabling carriers to gain a high level of comfort with the bank’s controls. He also helped the bank strategize ways to improve its risk profile, which resulted in an offer of a full-limit program for crime insurance, including full limits for social engineering/executive impersonation theft.

The day after the renewal presentation, the bank announced it was to be acquired by a large international bank. Goesel leveraged his relationships with the carriers to ensure that the favorable renewal terms previously negotiated were not invalidated.

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Michael Saturley, director of the treasurer’s office at the National Futures Association, said that Goesel was on hand at NFA’s underwriting renewal meeting, the same day that all of its carriers dropped their coverage after the “Wall Street Journal” published an unfavorable article on it.

“Craig was able to find in a timely manner new coverage for us, and each year since that event, he has worked to rebuild our professional liability program to a sound program,” Saturley said.

“He has been able to aggressively market the program and get competitive bids.”

Comfortable With Complexity

Alex Muralles
Senior Vice President, FINEX
Willis Towers Watson, Chicago

After analyzing the management liability program of Robert W. Baird, a wealth management and private equity firm based in Dana Point, Calif., Alex Muralles identified several program deficiencies including outdated exclusions, a tie-in of limits across all lines, and a narrow regulatory claims investigations trigger.

Muralles worked with a new carrier to manuscript a policy that incorporated the existing policy language of Baird’s incumbent carrier, with the addition of proposed enhancements and the broader terms of both carrier policies.

The customized policy removed tie-in limits, increased the aggregate from $10 million to $40 million, broadened notice provisions, and expanded regulatory investigations coverage.

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Muralles saved Baird 20 percent in premiums and negotiated a two-year policy paid in annual installments with a refreshed aggregate — not typically offered for errors and omissions policies.

“We have very complex businesses and he’s been able to help us through the complexities of transferring risk and protecting the firm,” said Angela Johnson, Baird’s insurance risk manager.

“Alex provides unmatched, outstanding service on a regular basis,” said Heather Myerscough, corporate insurance director at Huntington Bank.

“We’re not just an account to him, he really cares about how the bank works and what the bank needs.”

Providing Fantastic Results

Phil Norton
Vice Chairman, Midwest Region
Arthur J. Gallagher, Chicago

One of Phil Norton’s clients, a global insurance company recovering from the fallout of the financial crisis, is striving to be leaner, smarter and more efficient.

Norton and his team were tasked with reducing the client’s premiums at the same time the company fully collected on significant outstanding claims.

The brokers demonstrated to the program’s carriers the operational improvements and reductions in risk achieved by the client. They then convinced the carriers to buy into multiple years of large premium decreases as part of a new level setting of the overall risk metric.

Norton was personally involved in working with one carrier that had not fully reserved a significant claim and was questioning the amount. Norton took the issue all the way up to the carrier’s chief executive, who then fast-tracked the claim payment.

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“One of the values Phil brings is extensive benchmark analysis,” said the client. “He will factor in not only what peers are maintaining in limits and retentions, but he’ll also factor in our claims experience, as well as industry claims experience. Because of his Ph.D. and actuarial experience, he gives us a much more robust analysis than the average broker.”

“Phil went above and beyond for us when we had a disagreement over the value of a claim with an insurance carrier,” said a risk manager of an insurance company in the Midwest. “He was able to bring a creative approach that gave us a fantastic result and made our CEO happy.”

Fighting for His Clients

Eric Seyfried
Senior Vice President
Aon, New York

Last year, Eric Seyfried was presented with the most challenging renewal of his career as a professional liability broker. His client agreed to a nine-figure settlement with the California Public Employee Retirement System over allegedly inflated ratings on residential-mortgage bond deals.

By presenting detailed analyses of profitability, and pulling in other lines of coverage sold to the client by the carriers, Seyfried and his team convinced the markets to accept a longer “payback” horizon and crafted a complex multiyear deal that involved various “out” triggers for both parties. The client was able to obtain full continuity with all its incumbent carriers with no increase in premium.

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“I’ve always had a very good team at Aon who have managed my risks very well,” said the risk manager for the client. “With the addition of Eric to the team, I now have the benefit of a new perspective — someone who has added value with his ability to think outside of the box to develop solutions to unique problems that arise.”

“Eric has incredible attention to detail and is very responsive,” said Maria Diaz, risk manager at Xerox. “He’s also extremely strategic. He’s my right-hand person when it comes to this line of coverage, which is currently a challenging line for us.”

“Eric provides good guidance and he puts our concerns in front of the carrier, and fights for us to get better coverage and lower premiums,” said Le Andra Holly, senior manager, risk management, at Staples.

Finalists:

Vincent Flood
Eastern Region Property Practice Leader
Aon, New York

Nick Kalist
Managing Director
Aon, St. Louis

Eileen Yuen
Managing Director, National Practice Leader, Financial Institutions
Arthur J. Gallagher, Whippany, N.J.

Matt Kupiec
Vice President, FINEX
Willis Towers Watson, New York

Philip Dunn
Vice President
Aon
Philadelphia

 

More from Risk & Insurance

More from Risk & Insurance

4 Companies That Rocked It by Treating Injured Workers as Equals; Not Adversaries

The 2018 Teddy Award winners built their programs around people, not claims, and offer proof that a worker-centric approach is a smarter way to operate.
By: | October 30, 2018 • 3 min read

Across the workers’ compensation industry, the concept of a worker advocacy model has been around for a while, but has only seen notable adoption in recent years.

Even among those not adopting a formal advocacy approach, mindsets are shifting. Formerly claims-centric programs are becoming worker-centric and it’s a win all around: better outcomes; greater productivity; safer, healthier employees and a stronger bottom line.

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That’s what you’ll see in this month’s issue of Risk & Insurance® when you read the profiles of the four recipients of the 2018 Theodore Roosevelt Workers’ Compensation and Disability Management Award, sponsored by PMA Companies. These four programs put workers front and center in everything they do.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top,” said Steve Legg, director of risk management for Starbucks.

Starbucks put claims reporting in the hands of its partners, an exemplary act of trust. The coffee company also put itself in workers’ shoes to identify and remove points of friction.

That led to a call center run by Starbucks’ TPA and a dedicated telephonic case management team so that partners can speak to a live person without the frustration of ‘phone tag’ and unanswered questions.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top.” — Steve Legg, director of risk management, Starbucks

Starbucks also implemented direct deposit for lost-time pay, eliminating stressful wait times for injured partners, and allowing them to focus on healing.

For Starbucks, as for all of the 2018 Teddy Award winners, the approach is netting measurable results. With higher partner satisfaction, it has seen a 50 percent decrease in litigation.

Teddy winner Main Line Health (MLH) adopted worker advocacy in a way that goes far beyond claims.

Employees who identify and report safety hazards can take credit for their actions by sending out a formal “Employee Safety Message” to nearly 11,000 mailboxes across the organization.

“The recognition is pretty cool,” said Steve Besack, system director, claims management and workers’ compensation for the health system.

MLH also takes a non-adversarial approach to workers with repeat injuries, seeing them as a resource for identifying areas of improvement.

“When you look at ‘repeat offenders’ in an unconventional way, they’re a great asset to the program, not a liability,” said Mike Miller, manager, workers’ compensation and employee safety for MLH.

Teddy winner Monmouth County, N.J. utilizes high-tech motion capture technology to reduce the chance of placing new hires in jobs that are likely to hurt them.

Monmouth County also adopted numerous wellness initiatives that help workers manage their weight and improve their wellbeing overall.

“You should see the looks on their faces when their cholesterol is down, they’ve lost weight and their blood sugar is better. We’ve had people lose 30 and 40 pounds,” said William McGuane, the county’s manager of benefits and workers’ compensation.

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Do these sound like minor program elements? The math says otherwise: Claims severity has plunged from $5.5 million in 2009 to $1.3 million in 2017.

At the University of Pennsylvania, putting workers first means getting out from behind the desk and finding out what each one of them is tasked with, day in, day out — and looking for ways to make each of those tasks safer.

Regular observations across the sprawling campus have resulted in a phenomenal number of process and equipment changes that seem simple on their own, but in combination have created a substantially safer, healthier campus and improved employee morale.

UPenn’s workers’ comp costs, in the seven-digit figures in 2009, have been virtually cut in half.

Risk & Insurance® is proud to honor the work of these four organizations. We hope their stories inspire other organizations to be true partners with the employees they depend on. &

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]