6 People on the Move

Everest adds a property executive; Ametros names a senior managing director; Joe Zuk joins Orchid; Anders elected president of NAMSAP

By: R&I Editorial Team | February 28, 2019

Topics: Future of Insurance | Insurance Industry | People on the Move

Everest Picks Up Kevin Flaherty in Property

Everest Insurance added Kevin Flaherty to its retail property team in the East Region. Kevin, who is based out of the Everest Insurance New York City office, will report to Jason Ventling, vice president and head of retail property.

Commenting on the addition, Ventling said, “We are excited to have Kevin join our team of talented and skilled underwriters in our growing retail property group at Everest. The knowledge and experience Kevin has developed over his many years in the industry, coupled with his leadership experience, make him a valuable addition to our group.”

Kevin was most recently an assistant vice president at Ironshore, having previously worked as an underwriter at Liberty International and AIG. Kevin holds a B.A. from St. Joseph’s University.

Tower MSA Partners’ Dan Anders Elected Treasurer of NAMSAP

Daniel M. Anders, JD, MSCC, the chief compliance officer for Tower MSA Partners, has been elected to the board of directors of the National Alliance of Medicare Set-Aside Professionals, Inc. (NAMSAP) and will serve on its executive committee as treasurer for 2019.

Dan Anders, chief compliance officer, Tower MSA Partners

An attorney who holds the Medicare Set-Aside Consultant Certified and Certified Medicare Secondary Payer Professional credentials, Anders also co-chairs NAMSAP’s Policy and Legislative Committee.

Anders and Tower have been active in the organization for several years; Tower’s CEO Rita Wilson is the immediate past president, and Wilson and Anders frequently speak at its conferences and webinars.

“We’re dedicated to continuing our work with NAMSAP,” Wilson said. “It provides timely and comprehensive education and is the leading advocate for Medicare Secondary Payer compliance policies and practices that serve all stakeholders.”

NAMSAP is a nonprofit organization founded in 2005. Members include attorneys, nurses, settlement planners, claims professionals and others. The organization was formed to help individuals and organizations address claims impacted by the Medicare Secondary Payer Statute (MSP). The MSP is federal legislation designed to prevent the shifting of responsibility from a primary payer to the federal government in liability and workers’ compensation cases.

Joe Zuk Joins Orchid

Orchid Underwriters Agency, LLC, a specialty underwriter of catastrophe-exposed property insurance, announced that Joe Zuk has joined Orchid Insurance as managing director of corporate development & strategy, a new position within the organization. This new role reports to Brad Emmons, president and CEO at Orchid.

Zuk is responsible for Orchid’s corporate development and strategic initiatives across the enterprise. As a member of the executive team, Zuk will work with Emmons and the company’s partner, TowerBrook Capital Partners, in leading Orchid’s continued growth and expansion of business through mergers and acquisitions, organic growth opportunities and conceiving and executing upon innovative and value-creating strategic initiatives.

Zuk comes to Orchid with more than 15 years of experience and developed relationships throughout the insurance and reinsurance verticals. Prior to joining Orchid, Zuk served a dual role at Atlas General Holdings as president of the commercial and property divisions. There, he grew the business as well as directing and executing upon Atlas’ corporate growth and development strategies. Previously, Zuk was a reinsurance broker and underwriter. Zuk is a graduate of New York University.

“We are excited to have Joe join Orchid,” said Emmons. “Joe is bringing with him a wealth of knowledge and experience throughout the industry, which will bolster our platform’s capabilities and deepen our expertise.”

Paul H. Sighinolfi Joins Ametros as Senior Managing Director

Paul H. Sighinolfi has joined the Ametros Senior Leadership team as senior managing director. Bringing with him a wealth of knowledge and experience, he will provide thought leadership and lead regulatory and policy initiatives, while providing meaningful strategic direction and insight.

“Paul and I have known each other for several years. He brings years of experience and a unique perspective,” said Marques Torbert, CEO of Ametros. “We are happy to have him on board to help Ametros continue to innovate and provide thought leadership in our industry.”

Ametros strives to enhance the lives of injured parties with innovative and affordable settlement solutions. Ametros focuses heavily on improving the health and well-being of injured workers ensuring that they live happier, healthier and more productive lives post-settlement.

Paul Sighinofi, senior managing director, Ametros

Sighinolfi is an attorney who brings over 30 years of experience in the workers’ compensation industry, most recently as executive director and chair of the Maine Workers’ Compensation Board. Previously, he was a partner at Rudman-Winchell, LLC, directing the workers’ compensation practice group. He also coauthored Maine Employment Guide: Workers’ Compensation and has been a frequent speaker throughout the country on various workers’ compensation topics.

“Paul’s experience as the head of the workers’ compensation system in Maine, in addition to previously serving as both a plaintiff and defense attorney gives him a complete view of all sides of our workers’ compensation system and makes him a wonderful fit for our company,” Torbert said.

The International Association of Industrial Accident Boards and Commissions elected Sighinolfi to its Board of Directors in 2014, and he served as its board vice president until earlier this year. He is a fellow of the American Bar Association, College of Workers’ Compensation Lawyers and was formerly on the executive committee of the Southern Association of Workers’ Compensation Administrators.

Sighinolfi earned his master’s degree at Trinity College in Hartford, Connecticut and his law degree at the Columbus School of Law at Catholic University of America in Washington, D. C.

“I’ve worked in many aspects of workers’ compensation, and I truly believe what Ametros is doing is on the cutting edge of the industry,” said Sighinolfi. “I’m thrilled to be joining the Ametros team.”

Marsh’s Sastry Durvasula Honored

Sastry Durvasula, chief digital officer and chief data & analytics officer for Marsh, is among the 2018 Top Ten Insurtech Leaders identified by ACORD, the global data standards-setting body for the insurance industry.

ACORD spoke to industry stakeholders globally and evaluated vision, impact and execution to identify the leaders with the greatest current and potential ability to change the industry through Insurtech.

Durvasula joined Marsh in August 2017, to lead the strategic design, development and delivery of Marsh’s digital capabilities, data and analytics, and client-facing technology across the firm’s global business.

Edward Levin Takes Key Role with AIG

AIG announced the appointment of Edward Levin as global head of accident & health, General Insurance. He will report to Christopher Townsend, CEO of AIG International General Insurance, and will start next month based in London.

In this new role, Levin will be responsible for the global A&H portfolio, including distribution and underwriting strategy. He will develop a global A&H strategy, identify growth opportunities and create a diverse distribution pipeline.

Levin joins AIG from Chubb, where he served in senior roles, including division president of international A&H and most recently as group digital business officer. Previously he spent four years at ACE Europe as executive vice president of A&H, life and personal lines. Earlier in his career, he held roles at Citigroup and Booz Allen Hamilton.

Townsend said: “Edward’s deep understanding of the A&H business and his experience in building out digital platforms and products will add value as we develop next-generation digital capabilities for AIG. I am pleased to welcome Edward to AIG as we position our A&H business for growth in an evolving industry.”

Levin added: “I’m looking forward to joining AIG to build a market-leading A&H business. AIG has a strong heritage of product innovation and distribution leadership in this area; with this renewed focus, we will be well positioned to deliver products and services that add value for our customers.”

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.

6 People on the Move

Everest Picks Up Kevin Flaherty in Property