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2017 Power Broker

Real Estate

A Key Innovator

Robert Colburn
Principal
ColburnColburn, Bloomfield Hills, Mich.

One of Robert Colburn’s clients faced challenges with the historic renovation of some of its buildings and the purchase of vacant distressed properties. Colburn was able to create and negotiate a program with the carriers to successfully mitigate the risks and costs across the entire portfolio.

Another developer, owner and property manager just recapitalized a high-rise office property with extensive catastrophe exposure and a high total insurable value. The lender imposed a new set of loan and insurance terms including high limits for flood and wind coverage. But because capacity wasn’t readily available in the traditional marketplace, Colburn had to go directly to the carrier’s top management to obtain the necessary limits to meet the lender’s requirements.

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“Even while on a family vacation in a different time zone, Robert accommodated several conference calls, which is a clear example of dedication,” said his client, William Gilbert, vice president and corporate controller at REDICO Management.

For another client, he leveraged his relationship with a carrier to create a stand-alone property program with comparable terms to its historic master global property program run by its joint venture partner. He was able to negotiate significant savings on the property rate and lower the attachment point in line with the client’s risk tolerance.

“Once Robert has the ball on something, I don’t need to worry about whether it gets done — I know it will,” said his client.

Man of Many Talents

Michael Feinberg
Executive Vice President
Alliant Insurance Services Inc., Boston

When one of Michael Feinberg’s clients was left without a competitive policy for its multi-building phased development project, Feinberg was quick to act.

Designing an $80 million-limit residential builder’s risk coverage in a secondary market policy form, he was able to achieve best-in-class coverage terms as well as a lower price and more favorable security terms than quoted by the incumbent.

Another client suffered fire damage to a $500,000 HVAC chiller at one of its properties in South Carolina, but the insurers were only willing to replace the control board with a retrofit model. When the client insisted that a new chiller was the only way to ensure proper HVAC operation, Feinberg spent more than six months advocating to 11 insurers and received a $530,000 payment to replace the chiller.

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In another case, he redesigned a large residential real estate client’s property insurance placement after the incumbent declined to renew after substantial flood losses.

Feinberg successfully procured the same coverage at a lower rate, including a $20 million flood aggregate with a $10 million aggregate in high hazard to meet the lender’s requirements.

“Mike has a personal feeling for every loss — he treats it like it’s his own,” said his client Edward J. Easton, owner of the Easton Group. “He’s extremely professional and highly responsive to everything that we do to meet our insurance needs.”

A Force of Nature

Alexandra Glickman
Managing Director
Arthur J. Gallagher, Glendale, Calif.

Starting a multimillion dollar five-star destination resort from scratch is never easy. Risks to consider include potential business interruption due to offshore pollution and contingent business interruption for shipments of one-of-a-kind materials.

That’s not to mention the decision to go with owner controlled or contractor controlled insurance programs.
That was the challenge facing Alexandra Glickman when her client Caruso Affiliated announced a new California coast development.

Having gone out to about 30 markets, she came up with a comprehensive and highly manuscripted insurance and risk-financing program that satisfied all parties’ needs.

She also put together a liability and property insurance program for a real estate investment trust that runs an incubator for startups in its properties across the country.

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“To be able to structure a deal that protected not only our interests and the interests of the landlord, but also to provide the startups with a simple license solution was a big win for us, both in terms of coverage and cost,” said her client.

“Alexandra is a force of nature — she’s probably one of the best brokers on the West Coast, if not in the country.”

Another client said: “Alexandra sets the tone immediately in familiarizing her clients with delivery expectations, given her real estate knowledge and stellar relationships with the insurance markets and professional networks.”

‘He’s That Good’

Mike Gong, CIC, CAWC
Area Vice President
Arthur J. Gallagher, Fresno, Calif

Mike Gong discovered that a self-storage client was paying far more than necessary for flood insurance. Working closely with the client and a risk management company specializing in flood risk, Gong proved that the majority of the client’s buildings weren’t in a flood zone, and convinced the client’s lender to amend its insurance requirement, saving the client 80 percent on its flood insurance premiums.

“Mike understands how our business works and is quick to resolve issues that arise from time to time,” said Charlie Fritts, COO for Storage Investment Management. “Because of his extensive experience he knows many of the underwriters whom he will contact personally when he feels he can make a good argument for a lower rate.”

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He has also come up with a solution for self-storage clients whose properties don’t conform to local zoning laws, which enables them to rebuild their real estate asset and indemnifies against losses.

“Mike’s key strengths are his knowledge and customer service,” said another client, Terry Aston, vice president at Carlo Development Co.

“I just send something to him and I never even have to think about it again — he’s that good.”
Another client said: “I have dealt with many brokers and agents during my time but Mike is up there with the best.”

Taking It to the Next Level

Tony Lorber
Senior Vice President
EPIC, San Francisco

When one of Tony Lorber’s clients told him it wanted to purchase earthquake insurance on its large portfolio of properties, it was time to put his thinking cap on.

Leveraging the use of earthquake models and analytics as well as his knowledge of the market, he quickly identified specific criteria where the client didn’t need to buy cover on all of its properties, on a program the client admits is difficult to insure.

This allowed the client to maximize the amount of coverage it could purchase at the best value. Last year, his client asked him to develop a new methodology that would significantly increase the number of properties included without a rise in premium.
He was able to achieve this by looking at every building on a case-by-case basis and then utilized his contacts to find the best carriers.

In another case, he recommended that his client could take greater control of its general liability losses if it had a larger retention, while also providing cost savings.

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He took about six months to finally convince the carrier that this approach made sense for his client and how it could implement this practice going forward.

“Tony is probably the most experienced and knowledgeable broker that I have ever worked with,” said Shanna Berrien, director of risk and insurance at CWS Capital Partners.

Another client said: “Tony just takes broking to a new level with his unique approach, hard work and dedication, meaning that he always exceeds our expectations.”

The One to Rely on for Complex Projects

Fred Zutel, CIC
Senior Vice President
Willis Towers Watson, Miami

When real estate development company BH3 Management decided to build a $200 million-plus ultra-luxury condominium project on Miami’s last private island, they turned to Fred Zutel.

He managed to secure an extremely competitive program, reducing the projected premium spend by more than $1.5 million, while leveraging analytics to negotiate insurance requirements with the lender and optimizing the builder’s risk program.

For another developer working on a condo project of similar size, he structured a unique surety program that saved millions and significantly reduced overall exposure.
Rocco Carlucci, director of risk management at Property Markets Group, for whom Zutel designed a new program, said: “Over the course of the 11 months that we worked together, Fred has brought to light issues that previously existed that we were then able to address at renewal, as well as to make sure that we are adhering to industry best practice.

“Fred has gone out of his way time and time again to make sure I understand what we’re discussing and why it’s important. He’s taken the time to make me feel comfortable with the options presented and in determining what solution works best.”

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Another developer client said: “Fred has always provided exceptional customer service.

“He is extremely responsive and has a quick turnaround. He always delivers when or before he says he will.”

Finalists:

Nancy Ayers
Senior Vice President
Alliant/Mesirow Insurance Services, Chicago

William Bray
Vice President
Wells Fargo, Houston

Robert Mazzaro
Managing Director
Marsh, New York

Caroline Parrish
Senior Property Broker
Aon, Miami

Nicholas Rawden
Vice President
Marsh, New York

More from Risk & Insurance

More from Risk & Insurance

The Profession

Curt Gross

This director of risk management sees cyber, IP and reputation risks as evolving threats, but more formal education may make emerging risk professionals better prepared.
By: | June 1, 2018 • 4 min read

R&I: What was your first job?

My first non-professional job was working at Burger King in high school. I learned some valuable life lessons there.

R&I: How did you come to work in risk management?

After taking some accounting classes in high school, I originally thought I wanted to be an accountant. After working on a few Widgets Inc. projects in college, I figured out that wasn’t what I really wanted to do. Risk management found me. The rest is history. Looking back, I am pleased with how things worked out.

R&I: What is the risk management community doing right?

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I think we do a nice job on post graduate education. I think the ARM and CPCU designations give credibility to the profession. Plus, formal college risk management degrees are becoming more popular these days. I know The University of Akron just launched a new risk management bachelor’s program in the fall of 2017 within the business school.

R&I: What could the risk management community be doing a better job of?

I think we could do a better job with streamlining certificates of insurance or, better yet, evaluating if they are even necessary. It just seems to me that there is a significant amount of time and expense around generating certificates. There has to be a more efficient way.

R&I: What was the best location and year for the RIMS conference and why?

Selfishly, I prefer a destination with a direct flight when possible. RIMS does a nice job of selecting various locations throughout the country. It is a big job to successfully pull off a conference of that size.

Curt Gross, Director of Risk Management, Parker Hannifin Corp.

R&I: What’s been the biggest change in the risk management and insurance industry since you’ve been in it?

Definitely the change in nontraditional property & casualty exposures such as intellectual property and reputational risk. Those exposures existed way back when but in different ways. As computer networks become more and more connected and news travels at a more rapid pace, it just amplifies these types of exposures. Sometimes we have to think like the perpetrator, which can be difficult to do.

R&I: What emerging commercial risk most concerns you?

I hate to sound cliché — it’s quite the buzz these days — but I would have to say cyber. It’s such a complex risk involving nontraditional players and motives. Definitely a challenging exposure to get your arms around. Unfortunately, I don’t think we’ll really know the true exposure until there is more claim development.

R&I: What insurance carrier do you have the highest opinion of?

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Our captive insurance company. I’ve been fortunate to work for several companies with a captive, each one with a different operating objective. I view a captive as an essential tool for a successful risk management program.

R&I: Who is your mentor and why?

I can’t point to just one. I have and continue to be lucky to work for really good managers throughout my career. Each one has taken the time and interest to develop me as a professional. I certainly haven’t arrived yet and welcome feedback to continue to try to be the best I can be every day.

R&I: What have you accomplished that you are proudest of?

I would like to think I have and continue to bring meaningful value to my company. However, I would have to say my family is my proudest accomplishment.

R&I: What is your favorite book or movie?

Favorite movie is definitely “Good Will Hunting.”

R&I: What’s the best restaurant you’ve ever eaten at?

Tough question to narrow down. If my wife ran a restaurant, it would be hers. We try to have dinner as a family as much as possible. If I had to pick one restaurant though, I would say Fire Food & Drink in Cleveland, Ohio. Chef Katz is a culinary genius.

R&I: What is the most unusual/interesting place you have ever visited?

The Grand Canyon. It is just so vast. A close second is Stonehenge.

R&I: What is the riskiest activity you ever engaged in?

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A few, actually. Up until a few years ago, I owned a sport bike (motorcycle). Of course, I wore the proper gear, took a safety course and read a motorcycle safety book. Also, I have taken a few laps in a NASCAR [race car] around Daytona International Speedway at 180 mph. Most recently, trying to ride my daughter’s skateboard.

R&I: If the world has a modern hero, who is it and why?

The Dalai Lama. A world full of compassion, tolerance and patience and free of discrimination, racism and violence, while perhaps idealistic, sounds like a wonderful place to me.

R&I: What about this work do you find the most fulfilling or rewarding?

I really enjoy the company I work for and my role, because I get the opportunity to work with various functions. For example, while mostly finance, I get to interact with legal, human resources, employee health and safety, to name a few.

R&I: What do your friends and family think you do?

I asked my son. He said, “Risk management and insurance.” (He’s had the benefit of bring-your-kid-to-work day.)

Katie Dwyer is an associate editor at Risk & Insurance®. She can be reached at [email protected]