5 People on the Move

A major U.S. appointment for Hiscox and an EVP appointment head this week's list of people on the move.

By: R&I Editorial Team | December 21, 2018

Sean Connors Joins Lockton in Benefits Capacity

Sean Connors, a human resources specialist, joined Lockton’s Chicago office, the company announced.

“I partner with clients to first understand their business and then develop employee benefits solutions that help them meet their human capital goals while balancing costs,” Connors said. “Every business faces unique challenges related to their benefits programs. My background consulting with clients on human resource issues allows me to tailor programs that address these challenges and increase employee engagement.”

Prior to joining Lockton, Connors spent time at USI Insurance Services and Group Services. In these roles, he partnered with his clients to design employee benefits strategies that helped them achieve their business objectives.

“Sean brings more than 20 years of insurance experience which includes owning his own agency,” said Tom Schaffler, chief executive officer of Lockton’s Midwest operation, which includes Chicago. “Our clients will benefit from Sean’s in-depth knowledge of the industry and his benefits consulting background. He will partner with businesses to design employee benefits programs that address their unique needs.”

RT Specialty Adds Account Manager

Daniel Wilhelm has been named an account manager in RT Specialty’s National Environmental and Construction Professional Liability Practice. He is responsible for supporting new business and marketing efforts as well as coordinating the renewal process for clients from solicitation to quoting and binding.

“Daniel’s diversified risk management background aligns perfectly with our products and services,” says John Heft, MS, CRIS, Senior Vice President – National Environmental and Construction Professional Liability Practice. “This includes a decade spent servicing wide-ranging commercial property accounts across multiple industries. Our expertise lies in the unrivaled understanding of the numerous coverage options available within the environmental risk management and environmental casualty marketplace. The experience and dedication of professionals like Daniel is fundamental to helping agents and brokers nationwide emerge from this complex arena with the optimal solutions for their commercial customers.”

Daniel Wilhelm
Account Manager
RT Specialty

Wilhelm previously held managerial positions within the insurance, investment and banking industries. In addition to working with JPMorgan Chase, he served as a commercial lines account manager with the Anderson Insurance Agency, direct manager for State Farm Insurance and district team leader and financial advisor for the McAdam Financial Group.

A resident of Medford, N.J., Wilhelm holds a Bachelor of Science Degree from Caldwell University as well as Certified Insurance Services Representative (CISR) and Certified Professional Insurance Agent (CPIA) designations.

Limelight Health Picks up Peter Espinosa

Limelight Health, a provider of cloud-based enterprise software solutions for the employee benefits industry, today announced a new addition to the company. Peter Espinosa joins Limelight Health as Vice President of Enterprise Sales and Alliances.

“There are a lot of places and other companies where Pete could be spending his time,” said Jason T. Andrew, CEO & Co-Founder of Limelight Health. “We are absolutely thrilled that he would choose to dedicate his time, energy, and successful track record helping Limelight continue to scale. Pete’s experience will be instrumental as we continue to help shape digital transformation for the employee benefits carrier market.”

Espinosa brings more than 30 years of experience leading enterprise global sales initiatives at IBM, Vignette, Retek, Guidewire Software and CSC (DXC), creating high-performance teams that achieved outstanding sales results and strong growth. In his new role, he will be responsible for running all enterprise sales and alliance relationships. This experience with a variety of industry and application solutions, as well as with companies of various sizes, positions Espinosa to deliver the leadership needed to achieve marketplace success for Limelight Health.

“I love the Limelight Health team,” said Espinosa. “I am impressed by the quality of their solution, the space they are in, and the early momentum they have achieved. I feel honored to be on board and look forward to jumping in and contributing.”

Espinosa holds a B.A. in Speech Communications and Political Science from Luther College and has enjoyed several courses from the Harvard Business School and Corporate Executive Board. Pete and his wife and family live in Edina, MN and are the Founders and Owners of award-winning Pulpit Rock Brewing in Decorah, IA.

Dean Hildebrandt Joins Assurex Global as EVP

Assurex Global announced that Dean Hildebrandt will be joining its management team as an executive vice president on March 12, 2019. Dean will have an instrumental role in the future of Assurex Global and strengthening the 107-firm Partnership as the organization embarks upon key initiatives from its recent strategic planning process.

Dean Hildebrandt
New Assurex Global EVP

Dean is currently president and CEO of Associated Benefits and Risk Consulting (ABRC), a subsidiary of Associated Banc-Corp, and will remain in his current position through February 2019. He has led ABRC to No. 46 on the Business Insurance 100 Largest Brokers of U.S. Business (July 2018). Dean has a breadth of experience across the independent agent and broker industry. He has a bachelor’s degree from St. Cloud State University and an MBA (Finance) and Doctor of Education (Organization Development) from the University of St. Thomas.

“Dean Hildebrandt brings significant experience to our management team and to the future of our 65 year-old Partnership, comprised of the best and most recognized independently owned agents and brokers across the industry,” Assurex Global Chairman Andy Sloan said.

Mike Levins will Head US Broker Relations for Hiscox

Hiscox, the international specialist insurer, today announced the appointment of Mike Levins as Head of US Broker Relations. With more than 25 years of experience across the insurance industry, Levins, who joined Hiscox in 2013, will play a key role in implementing national broker strategies. He will be based in Chicago and will report to Bob Gadaleta, Hiscox USA’s Head of Field.

Mike Levins
Heads up US Broking for Hiscox

“Mike’s extensive experience in underwriting, business development, sales and production will be instrumental to our continued success in growing our capabilities and offerings,” said Gadaleta. “Mike is a well-respected leader who will continue to grow our relationships with brokers throughout the US.”

In his new role, Levins will be responsible for developing, managing and coordinating relationships with national brokers, and he will work with the regional business leaders and underwriters to develop local and regional broker relationships and strategies. He also will oversee all national broker and marketing events.

Prior to his appointment, Levins was Senior Vice President and Midwest Regional Executive for Hiscox USA. Previously, he served as Vice President of Sales for CNA Insurance. Levins received a Bachelor of Science in marketing and finance from Marquette University and a Master of Business Administration in finance from Benedictine University.

The R&I Editorial Team can be reached at [email protected].

How a Carrier Partner Can Help Navigate a Challenging Management and Professional Liability Market

A combination of a choppy economy with increased claims frequency and severity could lead to rate increases in the Management & Professional Liability market.

Rates in the management & professional liability (M&PL) markets were on the rise from 2020 to early 2023 and are now falling rapidly.

M&PL divisions manage a number of different insurance products including management liability (D&O), professional liability (E&O), employment practices liability (EPL), fiduciary liability policies, cyber, etc. In 2023 and into 2024, a big influence on the marketplace has been the extremely aggressive and softening public company D&O market.

Though these rates have been softening for management liability, that may change over the next few years as companies continue to adjust their business models motivated by economic uncertainty. Layoffs were up nearly 200% last year, Forbes reported, even as other recession indicators, like the inflation rate, improved. A recession could lead to an increased claim activity and force carriers to raise rates.

“Whenever there is a meaningful downturn in the economy, we tend to see claim frequency pop up,” said George Schalick, Jr., senior vice president of the Management and Professional Liability Division at Philadelphia Insurance Companies (PHLY).

With continued fiscal uncertainty, businesses potentially already burdened with pandemic-related claims should seek a carrier with a long history in M&PL products. They will provide much-needed risk management guidance and be better positioned to support their insureds during market fluctuations.

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.

5 People on the Move

Sean Connors Joins Lockton in Benefits Capacity

RT Specialty Adds Account Manager

Limelight Health Picks up Peter Espinosa

Dean Hildebrandt Joins Assurex Global as EVP

Mike Levins will Head US Broker Relations for Hiscox

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5 People on the Move

Sean Connors Joins Lockton in Benefits Capacity

RT Specialty Adds Account Manager

Limelight Health Picks up Peter Espinosa

Dean Hildebrandt Joins Assurex Global as EVP

Mike Levins will Head US Broker Relations for Hiscox

Share this article!

Trending Stories

Rising Star Abby Flaherty of Risk Strategies Details Her Entertainment Brokering Journey and How Industry Tragedy Has Impacted Coverage

Planck’s Leandro DalleMule Discusses the Ethics of AI in Insurance

3 Keys to Combat ‘Big Brother’ Fears with Safety Technology

2024 RIMS President David Arick Shares How COVID and AI Have Changed the Risk Management Space

More from Risk & Insurance

Evaluating PBM Pricing Models: The Key Factors to Consider and Questions to Ask

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Tipping the Scales: How Social Inflation Weighs on Insurance

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Sponsored: Philadelphia Insurance Companies

How a Carrier Partner Can Help Navigate a Challenging Management and Professional Liability Market

Why Insureds Might See an Uptick in M&PL Claims

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

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

Share this article!