Accelerate Your Insurance Career: 4 Leadership Development Opportunities This Spring

The spring of 2020 offers several opportunities for training in insurance company leadership.

By: Annemarie Mannion | February 18, 2020

Topics: Education | Future of Insurance | Insurance Industry

Take into account the insurance industry’s ongoing talent crunch and now may just be a great time to pick up some leadership training.

With thousands of insurance executives nearing retirement age in the next 5 to 10 years, there will be plenty of insurance company leadership openings for those ambitious and qualified enough to fill them.

This spring hosts several leadership development opportunities on the calendar. Here are just a few.

The Institutes’ Executive Education

Location: The University of Virginia Darden School of Business

Dates: April 26 through May 1

The Institutes, a provider of risk management and property-casualty insurance education, will offer its Institutes’ Executive Education at the University of Virginia Darden School of Business in Charlottesville, Virginia.

The intensive, five-day program is tailored to the needs of senior leaders who plan and formulate major strategic objectives throughout their organizations and develop the competencies and resources to achieve them.

The sessions will enable participants to

Gain a deeper and more comprehensive understanding of their functional business area and their interactions;
Establish personal goals consistent with corporate strategy;
Manage at the interface of key functions;
Create a high performance culture;
Generate superior results; and
Create competitive advantages in their markets.

Attendees can expect to take part in a broad range of interactive learning, including classroom discussions, workshops, experimental simulations and small learning groups.

The training also will also feature a field trip to the university’s Vehicle Research Center (VRC), where participants will learn about emerging trends and current technologies.

“The VRC provides us with exclusive access to the facility, as well as full presentation, test drives and a tour,” said Elisa B. Murray, business operations manager for The Institutes, Risk and Insurance Knowledge Group.

To get the most value from the program, Murray recommends that attendees “complete the required pre-work, network and actively take part in the sessions and learning teams.”

For more information or to register, go to: www.theinstitutes.org/guide/leadership-education

NAMIC’s Directors’ Bootcamp

Location: Clearwater, Fla.

Dates: May 4 through 6, 2020

Key topics at this event will include corporate governance, the role of the board, company financials and key metrics, reinsurance and emerging issues.

Some sample sessions.

On Monday, May 4, Kevin Kinross, a partner with Taft Stettinus & Hollister, LP, will lead a session on corporate governance and the role of the board. One of the key goals of the session is to address the fundamentals of corporate governance for mutual companies and help board members better understand their roles.
On Tuesday, May 5, there will be a CEO succession and planning panel discussion. The presenters are James Kennedy, CPCU, of Taft Business Consultants and Kurt Bock, the retired CEO of Country Financial. Taft, Stettinus & Hollister’s Kinross will moderate.
On Wednesday, May 6, Country Financial’s Bock will again present, but this time on enterprise risk management, strategic thinking and how ERM supports board members in constructive participation.
Wednesday’s final session will feature a presentation by Taft’s Kennedy on the role of the board in setting culture.

For more information on the NAMIC Directors’ Bootcamp, or to register, visit: https://www.namic.org/edu/dbc

Insurance Directors’ Boot Camp

Location: The Manhattan Campus of St. John’s University

Dates: May 19 through May 21

The American Property Casualty Insurance Association (APCIA), a national trade association for home, auto and business insurers, will co-sponsor the Insurance Directors’ Boot Camp from May 19 through May 21 in New York City.

The program’s other sponsors are the International Insurance Society and both the Tobin College of Business and the Maurice R. Greenberg School of Risk Management at St. John’s University.

David A. Sampson, president and CEO of APCIA, said the camp, which is in its first year, will provide critical information and was created at the behest of the association’s CEO members.

Dave Sampson, president and CEO, APCIA

“By educating directors on the fundamentals of how insurers operate and the key financial, regulatory and operational issues that are specific to the industry, we are promoting both enhanced corporate governance and service to consumers through more informed board oversight,” he said.

“Our members are very excited about this innovative program.”

The camp will feature 25 sessions, each consisting of either a presentation or panel discussion from recognized industry experts, many of whom currently serve as directors of property/casualty insurers.

Topics will include the adequacy of casualty loss reserves, property catastrophe modeling, understanding regulation, benchmarking operating costs, cyber security and diversity & inclusion.

“An attendee’s return on investment from this three-day program will be exponential,” said Stan Galanski, founder of G58 Advisors, a division of G58 Capital LLC, which is the organizer and presenter of the camp.

“The technical depth of what we’re covering really delves into the fundamentals of how an insurance company works,” Galanski said. “This program will make participants more effective directors by giving them greater confidence in their grasp of the nuts and bolts of this industry.”

As an example of the in-depth knowledge offered, Galanski cited a working lunch titled, “Relationships with the Rating Agencies.”

Participants will learn about the roles and operations of ratings agencies, how insurers can most effectively communicate with the ratings agencies, the key factors in determining the financial strength ratings made by agencies and about emerging trends impacting ratings.

Another session will delve into the “Adequacy of Casualty Reserves: Everything You Wanted to Know about Actuarial Analysis but were Afraid to Ask.” It will focus on explaining critical actuarial methodologies in establishing loss reserves and loss development patterns as well as instruct on evaluating actuarial reserving triangles, and utilizing pricing studies to improve results.

Still another session will be devoted to “Maintaining the Talent Pool: CEO, Executive and Board Succession,” and a separate working lunch will feature a panel discussion on diversity and inclusion.

“We’ll look at how directors can drive the change to create an environment in which a more diverse employee base will thrive,” Galanski said.

For more information, go to: www.insurancedirectorbootcamp.com

The Institutes’ Business Strategy for Emerging Leaders*

Location: University of Wisconsin-Madison

Dates: May 11 through May 15

In today’s competitive and continually changing business environment, directors and managers need a solid understanding of core business functions combined with real-world knowledge in order to implement business strategies throughout their organization.

The Institutes, in cooperation with the Wisconsin School of Business Center for Professional & Executive Development at the University of Wisconsin-Madison, will offer a program designed for leaders who are advancing in their careers.

The Institutes’ Business Strategy for Emerging Leaders will take place from May 11 to May 15.

The training will feature:

Interactive sessions designed to enable attendees to learn how to align and implement successful strategies within their organizations;
Guidance in mastering the operational aspects of executing strategy, such as measuring progress and success;
Instruction in developing the organizational leadership skills needed to make a positive impact now and throughout your career;
Direction in enhancing decision-making skills with a deeper understanding of organizational dynamics; and
Education in building financial acumen with practical exercises.

“This training includes a hands-on financial simulation where attendees are split into groups. This activity is very interactive and competitive,” The Institutes’ Murray said.

Some featured sessions:

May 12, morning session: “Insurance Industry Acumen,” which will cover insurance company strategy, ERM as a framework for managing and leading, and general insurance performance metrics.

May 12, afternoon session: “Decision-Making Anomalies and Insurer Financial Statements,” which will delve into making decisions with financial data, and the relationship of financial statements to individual units within the insurer and the overall ERM.

Michelle Annis, sales director for MetLife Auto and Home in Dayton, Ohio, is looking forward to attending the training.

“I’m looking for insights on how to measure success and how others do that,” she said.

“As we’re trying to compete in the market it’s important to know which levers are moving us forward and which are not.”

For more information or to register, go to: www.theinstitutes.org/guide/leadership-education &

*Risk & Insurance is an affiliate of The Institutes.

Annemarie Mannion is a freelance writer. She can be reached at [email protected].

Why Insureds Might See an Uptick in M&PL Claims

George Schalick, Jr., Senior Vice President of the Management and Professional Liability Division, Philadelphia Insurance Companies

The current soft market might come as a bit of a surprise as it does not track with previous underwriting cycles and economic conditions. Afterall, many privately held and non-profit organizations struggled during the early days of the pandemic with shutdowns and rapidly declining revenues. But the Government assistance programs, like the Paycheck Protection Program loans, helped keep many afloat during the tough times.

“During COVID many organizations stopped doing business until they were able to sort out all of the health and safety challenges,” Schalick said. “They were forced to lock down, but then all the government assistance programs allowed them to keep people employed. The increased volume of claims we anticipated we would see coming from the lockdowns and restrictions that were imposed upon businesses in the U.S. didn’t manifest at first.”

“Just because there wasn’t an onslaught of reported claims at the beginning of the pandemic, doesn’t mean the circumstances that would give rise to a claim being reported didn’t occur. Courts and the judicial system were closed or slowed and now that they are back open, we’re starting to see the circumstances that occurred during the COVID lockdowns becoming claims today,” Schalick said. “Litigation is progressing.”

Added to the delayed pandemic litigation is a concern over newer claims that might be filed as the country inches toward an economic downturn. Though a recession was avoided in 2023, experts think a soft dip could occur in 2024, with 76% of economists saying there’s a 50% or less chance of an economic downturn this year — that almost always results in more management liability claims.

“During the Great Recession in 2008, we saw an almost immediate spike in claims because of the economic conditions and the pressure it placed on organizations. They were making personnel changes with significant belt tightening almost immediately.” Schalick said.

What’s in Store for M&PL Policy Rates in 2024?

Despite an uptick in claims and increased economic uncertainty, management liability rates haven’t increased, resulting in market-wide pricing levels that may not meet the increased pressure of rising settlements and jury verdicts.

“Rates are going the other direction and settlement values are not falling,” Schalick said.

The mismatch between rates, claim frequency and severity is, in part, because carriers experiencing the dramatic soft market in the public D&O market are seeking premium gain in the private and non-profit market.

“In the public company market, the rates have been decreasing significantly. The rates were increasing in the private, not-for-profit market, and rightfully so, but there’s a desire to supplement overall mid-size D&O for carriers who also write private not-for-profit, and they see that as an opportunity to aggregate premium,” Schalick said. “So the always competitive landscape in the private, not-for-profit market has dramatically increased in the last 18 to 24 months.”

Still, companies of all sizes and types should be concerned about management liability rates in the future. Legal system abuse is resulting in increases in both the amount of litigation and the size of verdicts plaintiffs are receiving.

Certain areas of the country are particularly vulnerable to this type of legal system abuse. As a result, insureds in these localities are likely to be vulnerable to rate increases.

“The environment is so positive for the plaintiff that forces premium increases so carriers are able to stay in that market long term,” Schalick said.

Why a Tenured Carrier Partner Can Help Insureds Navigate An Uncertain Market

It’s clear that insureds are facing an uncertain M&PL market over the next few years. Fortunately, carriers with a long history in the M&PL space will be there to offer stability.

Philadelphia Insurance Companies has been supporting this market for 35 years. PHLY is committed to offering long-term rate stability, even as economic and claims trends start to push premiums upwards. They have an appetite for all sorts of companies, large and small, for-profit and nonprofit alike.

“We’ve been at this game for a long time and are one of the most tenured underwriters in this space,” Schalick said. “We like to stay very consistent.”

PHLY has worked with both for-profit and non-profit on management liability policies. With dedicated M&PL teams throughout the company’s 13 regions, PHLY provides the support agents and brokers are looking for on behalf of their clients. The teams know their regions well and can respond to local trends. They’re also dedicated to making the renewal process as easy as possible for their partners and policyholders.

“We have real confidence in our results, so we focus a lot on making the renewal experience as painless as possible for all agents and insureds,” Schalick said.

The company is also investing in tools to help insureds avoid losses. Earlier this year, they launched a new online risk management platform, PHLYGateway, which offers resources for insureds on how to create an employee handbook and trainings on issues such as recognizing workplace sexual harassment and discrimination.

If insureds have questions, they can consult a Best Practices Help Line, provided via the platform. That way, they can get on the spot risk management guidance to help them prevent claims.

To learn more, visit: https://www.phly.com/mplDivision/managementLiability/default.aspx.

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