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Thinking Outside the (Very Big) Box

Managing, measuring, monitoring with large property.
By: | November 1, 2017 • 3 min read

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In the space where large property brokers play, it’s important to use capital responsibly.

For instance, consider all of the components of a state operation.  This can include buildings, agencies, officials and boards along with universities, parks, airports, and in some cases, sports arenas, as part of the package.  Another example is a multi-media organization. Risks involve network and distribution, and also entertainment and film/video production exposures.  A major retail chain, with tens of thousands of locations from coast to coast and all of the stock and cash flow exposures that are critical business assets, is a third type of a complex operation.

Nationwide_sponsoredcontent_0117And all of these require coverage.

“Brokers need a stable partner with the ability to offer larger property lines. As part of Nationwide, we have a competitive edge to offer significantly more in-house limit capacity than many other carriers,” said Tom Jurgens, senior vice president, Brokerage at Nationwide.

Though Nationwide has the capital to handle high limits, it is very strategic in its approach to writing these risks.  For John Brunette, senior director, Brokerage Property, this means thinking outside a very big box to come up with solutions that provide the perfect balance of protection and profitability.

“The key is leveraging capacity deployment throughout the risk,” he said. “When we deploy capacity in lower layers, we’re also looking to deploy additional capacity in the excess layers. Understanding the concentration and knowing where you can add more –that’s what thoughtful deployment of capacity is really about.”

Nationwide_sponsoredcontent_0117Brunette also emphasized the importance of taking a mindful, measured approach to risk, especially in today’s insurance and financial landscape.

“The economy has improved, and there is capital coming off the sidelines,” he said. “There are lots of deals being made, but many of these investors are not insurance people, and as such, often don’t fully understand the exposure involved.”

For Brunette, this starts with adequately accounting for the catastrophe footprint of the risk and also looking at the design of a building.

“When you look at building design, you want to make sure developers are not skimping on materials and know the building will survive if a catastrophe event should occur,” he said. “You also want to look at ongoing site maintenance.”

Nationwide_sponsoredcontent_0117But building design and structure are just the beginning of a good risk. Other factors Brunette takes into consideration include behind-the-scenes operations, such as electronic surveillance and other protection like sprinklers and alarms. Also, understanding the exposure and matching that with layer structure is critical.

“If I’m insuring a risk in Missouri, I don’t want to be in a position where the totality of the exposure is tornado driven,” he said. “The key to that is spread of risk and attachment point.”

Brunette, who employs a philosophy that includes “managing, measuring and monitoring” when it comes to effective catastrophe underwriting, believes in constantly staying on top of trends and patterns to make sure the solutions he provides are appropriate.

“Insurance is never a ‘one and done’ kind of thing,” he said. “If you’re going to responsibly write a risk, you need to make sure you are not just on top of the game, but ahead of it.”

About Nationwide

An expert in large, complex property accounts, Nationwide writes primary and excess layers for business conglomerates with a multitude of components and diverse requirements though its excess and surplus Brokerage Property division.

Products underwritten by Nationwide Mutual Insurance Company and Affiliated Companies. Not all Nationwide affiliated companies are mutual companies, and not all Nationwide members are insured by a mutual company. Subject to underwriting guidelines, review, and approval. Products and discounts not available to all persons in all states. Home Office: One Nationwide Plaza, Columbus, OH. Nationwide, the Nationwide N and Eagle, and other marks displayed on this page are service marks of Nationwide Mutual Insurance Company, unless otherwise disclosed. © 2017 Nationwide Mutual Insurance Company.

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This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Nationwide. The editorial staff of Risk & Insurance had no role in its preparation.




Nationwide, a Fortune 100 company, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s.

More from Risk & Insurance

More from Risk & Insurance

Risk Management

The Profession

The risk manager for Boyd Gaming Corp. says curiosity keeps him engaged, and continual education will be the key to managing emerging risks.
By: | May 1, 2018 • 4 min read

R&I: What was your first job?

I was trained as an accountant, worked in public accounting and became a CPA. Being comfortable with numbers is helpful in my current role, and obviously, the language of business is financial statements, so it helps.

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

Working in finance in the corporate environment included the review of budgets and the analysis of business expenses. I quickly found the area of benefits and insurance — and how “accepting risk” impacted those expenses — to be fascinating. I asked a lot of questions. Be careful what you ask for — I soon found myself responsible for those insurance areas and haven’t looked back!

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

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I have found the risk management community to be a close-knit group, whether that’s industry professionals, risk managers with other companies or support organizations like RIMS and other regional groups. The expertise of the carriers and specialty vendors to develop new products and programs, along with the appropriate education, will continue to be of key importance to companies going forward.

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

As I’m sure many in the insurance field would agree, Hurricanes Katrina and Rita in 2005 changed our world and our industry. It was a particularly intense time and certainly a baptism by fire for people like me who were relatively new to the industry. This event clearly accelerated the switch to the acceptance of more risk, which impacted mitigation strategies and programs.

Bob Berglund, vice president, benefits and insurance, Boyd Gaming Corp.

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

The fast-paced threat that cyber security represents today. Our company, like so many companies, is reliant upon computers, software and IT expertise in our everyday existence. This new risk has forged an even stronger relationship between risk management and our IT department as we work together to address this growing threat.

Additionally, the shooting event in Las Vegas in 2017 will have an enduring impact on firms that host large gatherings and arena-style events all over the world, and our company is no exception.

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

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With the various types of insurance programs we employ, I have been fortunate to work with most of the large national and international carriers — all of whom employ talented people with a vast array of resources.

R&I:  How much business do you do direct versus going through a broker?

We use brokers for many of our professional coverages, such as property, casualty, D&O and cyber. We are self-insured under our health plans, with close to 25,000 members. We tend to manage those programs internally and utilize direct relationships with carriers and specialty vendors to tailor a plan that works best for team members.

R&I: Who is your mentor and why?

I have been fortunate to have worked alongside some smart and insightful people during my career. A key piece of advice, said in many different ways, has served me well. Simply stated: “Seek to understand before being understood.”

What this has meant to me is try everything you can to learn about something, new or old. After you have gained this knowledge, you can begin to access and maybe suggest changes or adjustments. Being curious has always been a personal enjoyment for me in business, and I have found people are more than willing to lend a hand, offer information and advice — you just need to ask. Building those alliances and foundations of knowledge on a subject matter makes tackling the future more exciting and fruitful.

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

Our benefit health plan is much more than handing out an insurance card at the beginning of the year. We encourage our team members and their families to learn about their personal health, get engaged in a variety of health and wellness programs and try to live life in the healthiest possible way. The result of that is literally hundreds of testimonials from our members every year on how they have lost weight, changed their lifestyle and gotten off medications. It is extremely rewarding and is a testament to [our] close-knit corporate culture.

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

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Some will remember the volcano eruption in Iceland in spring of 2010. I was just finishing a week of meetings in London with Lloyd’s syndicates related to our property insurance placement when the airspace in England and most of northern Europe was shut down — no airplanes in or out! Flights were ultimately canceled for the following five days. Therefore, with a few other stranded visitors like myself, we experimented and tried out new restaurants every day until we could leave. It was a very interesting time!

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

I am originally from Canada, and I played ice hockey from the time I was four years old up until quite recently. Too many surgeries sadly forced my recent retirement.

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

That’s a funny one … I am a CPA working in the casino industry, doing insurance and risk management, so neighbors and acquaintances think I either do tax returns or they think I’m a blackjack dealer at the casino!




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