8 People on the Move

The latest hires, appointments and retirements across the insurance and risk management industries.

By: Emily Spennato | July 13, 2020

RSG Underwriting Managers Chairman Mike Rice, Sr. to Retire from Ryan Specialty Group

Mike Rice, Sr., retiring chairman and chief executive officer, RSG Underwriting Managers

Mike Rice, Sr., chairman and chief executive officer of RSG Underwriting Managers, has announced his intent to retire from Ryan Specialty Group, LLC (RSG) at the end of the year. Mike joined RSG in 2010 as Chairman and CEO of RSG Underwriting Managers, LLC.

Patrick G. Ryan, Founder, Chairman and CEO of RSG, said: “When Mike joined RSG in 2010, he committed to stay two, possibly three years at the longest. Periodically over the last 11 years, I asked Mike to defer his retirement, and each time he selflessly agreed … On a personal note, Mike and I have worked together for over 50 years, 40+ years at Aon and over 10 years at RSG. We will miss Mike and are grateful for his outstanding leadership and counsel.”

Remarking on his intent to retire, Rice said, “I am fortunate to have been part of and contributed to the development and growth of two transformative entities in the insurance industry,” Rice said.

“While I look forward to turning my attention to personal endeavors, I will depart the Insurance world richer for the incredible opportunity to have worked closely with Pat Ryan for over 50 years, as well as many of the finest professionals the industry has known. I am truly grateful.”

RubiQon to Be Led by Romel Salam and Conan Ward

Conan Ward, GM and president, RubiQon

Romel Salam, principal, RubiQon

QOMPLX™, an intelligent decision platform provider, announced the launch of a U.S.-based subsidiary managing general agency RubiQon Risk & Insurance Services/RubiQon Re.

The new subsidiary will be led by insurance industry veterans Romel Salam and Conan Ward. RubiQon will will offer cyber insurance, along with multi-line treaty and facultative re/insurance utilizing QOMPLX’s established high-capacity data, modeling and analytic capabilities.

Ward will serve as GM and president while Salam will serve as principal.

“The unique capabilities of QOMPLX’s decision platform, cybersecurity solutions, and professional consulting presented an opportunity to build a world-class infrastructure that merges the best of today’s technological revolutions, cyber expertise and a deeply knowledgeable re/insurance team,” said Ward.

“We’re looking to bring strategic-level solutions and insight to bear for our risk partners, not just tactical product solutions. It is extremely difficult for carriers to innovate, add technology and big data infrastructure, and still keep their factory lights on. We are prepared to work hand-in-glove with a small number of key partners to create a more symbiotic relationship between carriers and RubiQon to broaden their capability map, distribution outlets and product offerings.”

Risk Placement Services Announces Mark Gallagher as National Transportation Practice Leader

Mark Gallagher, CPCU, national transportation practice leader, Risk Placement Services

Risk Placement Services announced that Mark Gallagher has been appointed to lead its national transportation practice. He succeeds newly retired industry veteran Jimmy Proffitt.

Gallagher joined RPS in early 2019. Prior to joining RPS, Gallagher served as vice president of underwriting for Truckers Insurance Associates Inc., where he started his transportation insurance career in 1996.

“The succession of Mark Gallagher to the leadership role of our transportation practice is proof of the legacy of Jimmy Proffitt’s success in bringing top-notch talent to RPS,” said Joel Cavaness, president, Risk Placement Services.

“Mark is a well-recognized leader in this industry and brings strong relationships, demonstrated leadership skills and deep expertise in the transportation market. He is well qualified to lead us down the road where Jimmy has left us — as the most respected transportation specialist in the country.”

Cannasure Insurance Services Hires Jim McErlean as Director of Business Development

Jim McErlean, director of business development, Cannasure

Cannasure Insurance Services, cannabis and hemp insurance MGA and wholesale broker, announced on July 7 that it has hired Jim McErlean as director of business development.

McErlean has more than 20 years of sales, product and distribution management experience in the property and casualty insurance industry.

“We are extremely pleased to welcome Jim to the Cannasure team,” said Patrick McManamon, chief executive officer.

“He is a highly talented and well-respected business executive, and his knowledge, focus and business discipline will be instrumental in our product and service expansion initiatives for the rapidly growing cannabis and hemp sectors.

“Jim’s depth of distribution and channel management, along with his experience in strategic product development and implementation, will be essential as we continue to build out our proprietary programs for these dynamic industries.”

Prior to joining Cannasure, McErlean served as Western U.S. business development manager at NSM Insurance Group. He has experience in retail brokering as well as specialty product and program development. His career experience includes retail brokering. He has also served on the board of the National Association of Home Builders.

“I look forward to helping Cannasure advance its expansion efforts, geographic and otherwise, and build upon its reputation.”

Crawford & Company Appoints a GTS President As Terry Hunt Retires

Paul Kottler, president, Global Technical Services, Crawford & Company

Crawford & Company, the largest publicly listed independent provider of claims management, has announced the appointment of Paul Kottler as president of Global Technical Services (GTS) U.S., effective July 8.

Kottler will oversee the team responsible for handling large and complex claims. He will also lead initiatives to further strengthen GTS’ market position. He will report to Andrew Bart, global president, Crawford Global Technical Services.

Kottler brings 30 years of experience in the industry. Prior to joining Crawford he was executive vice president, North America at McLarens. Kottler returns to Crawford following the recent retirement announcement of Terry Hunt, a respected veteran of the claims arena in the U.S.

During his 27-year career at Crawford, Hunt held several senior positions across the organization, and took over the leadership of the Crawford GTS U.S. team in 2017.

Bart commented: “Paul brings tremendous technical and market depth and I am excited to see the next chapter for GTS in the U.S. … Terry has made an incredible contribution to the success not only of Crawford GTS U.S., but also to Crawford’s success as a whole. He has been an outstanding leader and we thank Terry for delivering exceptional people strategy which resulted in incredible growth and employee engagement.”

Iain Duke-Richardet Joins Hearsay Systems as Compliance Strategy Principal

Iain Duke-Richardet, compliance strategy principal, Hearsay Systems

Hearsay Systems, the leader in compliant last-mile digital communications for the financial services industry, today announced the appointment of financial services compliance veteran Iain Duke-Richardet as compliance strategy principal.

Duke-Richardet was an original member of FINRA’s Social Media Task Force, which provided industry input to FINRA’s initial guidance (FINRA Notice 10-06) regarding how financial firms and advisors should use social media.

“As a former compliance officer at a large global bank, I have seen first-hand that regulatory compliance is one of the most challenging aspects of digital transformation for financial services organizations,” Duke-Richardet said.

“As a longtime former Hearsay customer and user myself, I have personally experienced the breadth and depth of Hearsay’s commitment to compliance teams, and I’m thrilled to expand on this foundation, continue the company’s long-standing relationship with regulators like FINRA and FCA, and enable my peers who are compliance officers to play a strategic role in their firms’ digital transformation initiatives.”

Duke-Richardet joins Hearsay from Accenture, where he was a leader in the regulatory & compliance practice. Previously, he spent more than a decade as a compliance officer and leader at global financial services firms. &

Emily Spennato is a former staff writer with Risk & Insurance.

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.

8 People on the Move

RSG Underwriting Managers Chairman Mike Rice, Sr. to Retire from Ryan Specialty Group

RubiQon to Be Led by Romel Salam and Conan Ward

Risk Placement Services Announces Mark Gallagher as National Transportation Practice Leader

Cannasure Insurance Services Hires Jim McErlean as Director of Business Development

Crawford & Company Appoints a GTS President As Terry Hunt Retires

Iain Duke-Richardet Joins Hearsay Systems as Compliance Strategy Principal

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8 People on the Move

RSG Underwriting Managers Chairman Mike Rice, Sr. to Retire from Ryan Specialty Group

RubiQon to Be Led by Romel Salam and Conan Ward

Risk Placement Services Announces Mark Gallagher as National Transportation Practice Leader

Cannasure Insurance Services Hires Jim McErlean as Director of Business Development

Crawford & Company Appoints a GTS President As Terry Hunt Retires

Iain Duke-Richardet Joins Hearsay Systems as Compliance Strategy Principal

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

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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!