8 People on the Move

Key executive appointments across various segments of the insurance industry.

By: R&I Editorial Team | April 4, 2019

Topics: Insurance Industry | People on the Move

Industry Vet Joe Boren Joins Synapse Board

Synapse Services LLC announced the appointment of industry veteran Joseph Boren to its Executive Advisory Board.

Joe Boren, member, Executive Advisory Board, Synapse Services LLC

Boren brings more than 50 years’ insurance industry experience, holding numerous leadership and management positions, primarily devoted to the environmental industry.

Prior to this appointment, Boren served with Ironshore Inc. for eight years in various leadership roles.

As chairman of Ironshore Environmental, he launched the unit’s offerings of products and services, which addressed environmental incident and liability risks. In his role as president of U.S. Field Operations, he built out Ironshore’s national distribution platform that was responsible for the marketing of all Ironshore’s insurance products at a localized level.

Previously, Boren was with AIG from 1996 to 2009, where he initiated and ultimately built AIG Environmental into the largest environmental insurance carrier in the world. Under his progressive leadership as chairman and CEO of AIG Environmental, many environmental insurance executives received the technical foundation and professional development that prepared them for high-level management positions across the industry.

Boren also served as chairman of Riverkeeper, an environmental watchdog responsible for protecting the Hudson River. He is also an active board member of the New York City All-Stars Project Initiative, a national skills development program for inner city teenagers and young adults.

Jennifer King Joins Everest Insurance

Everest Insurance announced that Jennifer King joined their Life Sciences team based in the company’s Boston office. King will have underwriting responsibility for the recently-launched Life Sciences multi-line package product.

Andy Faber, head of Life Sciences, commented, “We could not be more pleased to have Jen join our Life Sciences team. With the recent launch of our multi-line product, we have combined Everest’s established workers’ compensation, auto and property capabilities packaged with our industry-leading life sciences products liability expertise. Jennifer is a proven package underwriter who will serve as a valuable member of our growing team.”

King has nearly a decade of industry experience, most recently working as an account executive within the global technology practice at Travelers. She holds a Bachelor of Science degree from Northeastern University.

Caitlin Crist Now Head of Claims for Coverys

Coverys Managing Agency Limited, the Lloyd’s managing agent of Syndicates 1975, 1991, 3330 and 1110, announced the appointment Caitlin Crist to the newly created role of head of claims of Coverys Syndicate 1975. She will take up her new role in June.

Crist brings over a decade of liability claims experience to Coverys.

She joins from Brit Global Specialty where, as a complex claims specialist, she was responsible for managing and adjusting complex casualty claims and providing U.S. legal advice on contentious issues. Prior to this, Crist served as an attorney with Fields Howell, LLP, where she provided coverage advice to and represented insurers in the U.S. federal and state courts.

“In a crowded market, Coverys has already begun to differentiate itself through the quality of its underwriting, data and approach to risk management. I am looking forward to adding claims to that list and developing a claims function, which sets the business apart from its peers,” Crist said.

Pat Meacham Named to Brokerage Board

The Starkweather & Shepley Insurance Brokerage elected Patrick Meacham to its board of directors.

Patrick Meacham, director, Starkweather & Shepley

Meacham, senior vice president of transportation risks solutions, has over 20 years of experience with S&S, providing comprehensive risk management and loss control solutions for the transportation industry and auto dealerships.

“I’m most appreciative and truly honored to be elected to the board of Starkweather & Shepley,” said Meachum.

“To be part of an organization that was founded 140 years ago and always evolving is not only meaningful and special to me, but a testament to our leadership’s commitment to perpetuation as we look ahead, always committed to our clients, colleagues and our community,” he added.

Meacham graduated from Johnson & Wales University with both a bachelor’s and master’s degree.

IMA Companies Promotes Luke Proctor to President, Mike Benson as CFO

The IMA Financial Group, Inc. announced the promotion of Luke Proctor to president of IMA Companies, a newly created position to oversee all IMA Financial Group subsidiaries, which generate nearly $170 million in revenue annually. Located in Wichita, Kan., he will report to IMA Financial Group chairman and CEO Robert Cohen. IMA Wichita president Kyle Orndorff will continue to lead his local team of nearly 200 associates.

The companies under Proctor’s management include IMA, Inc., a retail insurance broker; IMA Select, a small-business and personal insurance broker; Towerstone, Inc., a wholesale insurance broker; Eydent Insurance Services, a managing general underwriting specializing in niche insurance solutions; CORnerstone Risk Solutions, an alternative risk services company; and IMA Wealth, an SEC-registered investment advisory firm.

Combined, the IMA Financial Group and its subsidiaries are the fifth-largest privately held and employee-owned insurance broker in the country.

“IMA is home and where I started my career,” said Proctor, who joined IMA in 2003. “It’s where I’ve grown personally and professionally, and it’s an organization I intend to guide through its continued expansion.”

One internal measure of IMA success has been to outperform the industry growth rate. In 2018, IMA’s organic growth rate was 8.3 percent, which exceeded the industry average of 6.1 percent.

To help manage that leading growth, and to fill Proctor’s former position, is newly hired IMA chief financial officer Mike Benson, who will work in and return home to Denver. Possessing a broad background in finance and accounting, Benson previously held positions with KSE Sports & Entertainment in Denver and was most recently COO and CFO for GROUP360 out of St. Louis, Missouri.

Benson and Proctor will work with IMA, Inc. president Bob Reiter who will manage IMA, Inc. and lead a new endeavor for the company called Client X, a transformational service initiative to help fuel IMA’s growth.

“IMA’s long history as an insurance leader is a testament to the hard work and value our associates deliver to clients across the country,” Proctor said. “In my new position, I hope to strategically support their success and provide the necessary resources to advance their great work.”

Two Key Roles Filled at MEMIC

Amanda Roberts has been appointed to the role of director of financial reporting for The MEMIC Group, where she will oversee this workers’ compensation specialist’s financial forecasting, budgeting and general ledger reconciliation.

Roberts has more than 20 years’ experience in finance, accounting and audit roles. Prior to MEMIC, she worked as a nonprofit accounting and compliance consultant and as a senior director for United Way of Massachusetts Bay, Inc. in Boston.

Amanda Roberts
Director, Financial Reporting
MEMIC

She graduated from the University of Southern Maine with a bachelor’s degree in accounting and later obtained her CPA. Active in the community, she served as treasurer and chair of the finance committee for Child Care Services of York County, ME.

In addition, Michael Michaud, has been appointed to director of IT infrastructure and will oversee MEMIC’s virtual and physical IT systems, storage, networking and communications platforms that are used to support business applications and services. Michaud will be responsible for the effective and efficient delivery of all third-party and internally managed IT infrastructure used to support all business processes across The MEMIC Group.

Michaud has more than 20 years’ experience in information technology roles. Prior to MEMIC, he worked as a director of platform services at MaineHealth/Maine Medical Center and as a senior director of information technology at Synernet MaineHealth.

Michaud is Information Technology Infrastructure Library (ITIL) Foundations Certified. He has volunteered as an executive board member and coach for South Portland National Little League and is a FIFA-certified soccer referee.

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.

8 People on the Move