9 People on the Move

Aon's Lori Goltermann named APIW Woman of the Year, AXA XL forms a new leadership team and more in this edition of People on the Move.

By: Emily Spennato | April 25, 2020

Lori Goltermann Named APIW Woman of the Year

Lori Goltermann, CEO, Aon Risk Solutions

The Association of Professional Insurance Women announced Lori Goltermann, chief executive officer of Aon’s U.S. Commercial Risk Solutions and Health Solutions businesses, has been selected as this year’s recipient of the prestigious APIW Insurance Woman of the Year Award.

The reception is set to be held in the fall of 2020.

APIW president Barbara Bufkin said in an announcement of the award: “We are delighted to present the 2020 APIW Woman of the Year award, our highest honor, to Lori Goltermann, whose highly successful career progression, executive leadership within Aon and our industry overall, her philanthropic commitment and awareness and support of women in gender and pay equality make her an exemplary choice at this important time in history”.

“I am so grateful to receive this distinguished honor and to be recognized alongside such dynamic and influential women leaders who have received this award,” Goltermann said.

“Our industry is driving innovations to deliver more value for our clients and communities, and it is because of organizations like APIW, that we are able to continue to advance the next generation of women leaders to continue this mission.”

An active member of Aon’s global operating committee, Goltermann is a member of Aon’s global operating committee and is diversity & inclusion chair for the U.S. and leads Delivering Aon United, Aon’s firm-wide growth strategy focused on bringing the best of the firm to its clients.

Goltermann has played an active role on several boards and organizations that impact the communities in which she lives and works, including the Lincoln Park Zoo, The Special Olympics, and Aon’s Apprenticeship Program which is focused on employment of diverse candidates. She is a member of The Latin School of Chicago’s Enterprise Risk Management board.

Last year she was named one of Insurance Business America Magazine’s Insurance Business Global 100 Leaders and Elite Women.

Global Risk Solutions Appoints Multinational Senior VP and Chief Underwriting Officer

David B. Williams, multinational senior vice president and chief underwriting officer, Global Risk Solutions

Global Risk Solutions — Liberty Mutual’s commercial and specialty reinsurance operation — appointed David B. Williams to the newly created position of multinational senior vice president and chief underwriting officer.

Williams will develop and deliver enhanced data-driven and global risk-based solutions for mid-size and large customers and the brokers who support them. He will report to David Perez, GRS chief underwriting officer, North America.

Williams brings more than a decade of multinational experience. Most recently, he served as vice president of financial lines for Chubb North American. Prior to that, he was vice president of multinational solutions, Chubb North America.

“David will play a critical role in helping us grow the geographic footprint of the GRS portfolio by leading a strategic initiative to help improve our ability to seamlessly address multinational exposures for global clients,” said James Slaughter, GRS chief underwriting officer.

Ian Davis Joins People’s United Bank; Exits Public Sector

Ian Davis, senior vice president, captive insurance relationship manager, People’s United Bank

Ian Davis, Vermont’s chief marketing and business development professional for the captive insurance industry is leaving his position in state government to join the private sector.

He has accepted a position as senior vice president, captive insurance relationship manager with People’s United Bank.

Davis was previously the director of financial services at the Vermont Department of Economic Development, leading the marketing and business development activities in support of the state’s captive insurance industry.

“Ian has been a tremendous asset and important contributor to our state’s success in the captive insurance industry,” said Joan Goldstein, commissioner of the Department of Economic Development.

“I am extremely grateful for having had the opportunity to serve the State of Vermont and represent Vermont’s leading captive insurance industry,” said Davis.

“I feel immensely proud of all that has been accomplished together during my tenure and leave knowing that Vermont’s captive industry is in a very strong position for continued success.”

“Ian Davis epitomizes all the qualities that keep Vermont in the vanguard of the captive insurance industry,” said Rich Smith, president of the Vermont Captive Insurance Association.

“He has served the State of Vermont and the captive industry with high energy, intelligence and integrity.”

“We are excited to have Ian join the People’s United team and look forward to him driving our Captive Insurance business,” said Cris Sigovitch, senior vice president, head of treasury management, People’s United Bank.

Matt Scott Joins Willis Towers Watson Climate and Resilience Hub

Willis Towers Watson announced the appointment of Matt Scott as a senior director in its Climate and Resilience Hub.

Scott will spearhead advice on policy, financial regulation and green finance as part of a growing climate business, helping clients manage risk and seize opportunities of the transition to a low carbon, resilient economy. He has more than two decades of experience.

Following an MBA at Stanford Business School, Scott became a social entrepreneur, delivering solar lighting to off-grid villages in emerging markets. He also has experience in impact investing. He teaches at the University of Oxford.

Scott was a part of the Bank of England’s climate team under Governor Mark Carney and led the delivery of the United Kingdom’s landmark Green Finance Strategy in 2019.

“We are all delighted that Matt has joined Willis Towers Watson,” said chief executive officer John Haley. “His arrival underlines Willis Towers Watson’s commitment and leadership to support our clients’ evolving risk, investment and human capital needs under our Climate Quantified brand.”

“Having known Matt and respected his climate work and leadership since 2014, his arrival is a major step in building a comprehensive and diverse team across the company through the Climate and Resilience Hub (CRH),” said Rowan Douglas, head of the Climate and Resilience Hub.

“The CRH integrates expertise that clients require for the Climate Decade ahead and strengthens the company’s commitment to global initiatives including the Coalition for Climate Resilient Investment and Insurance Development Forum.”

“Willis Towers Watson’s global reach and role intermediating key markets provides an exciting platform to continue to drive change,” Scott said. “Our combination of people, risk, and capital means we are uniquely placed to help clients navigate a rapidly evolving policy landscape. I look forward to working with John, Rowan and the wider team to achieve these goals.”

Sam Stallard Joins MIAA Team

Sam Stallard, agency development field specialist, Midwest Insurance Agency

Midwest Insurance Agency Alliance announced Sam Stallard as an agency development field specialist.

Stallard will be directly responsible for agency development and consulting services of MIAA member agencies in Kansas and Missouri. He will focus on agency growth and development opportunities.

Stallard has 17 years of experience in the property & casualty insurance industry as a producer, agency owner and inside sales manager.

“I am thrilled to be part of the MIAA team. I look forward to applying my passion for coaching and mentoring to begin working one-on-one with member agents to achieve greater levels of success,” commented Stallard.

“We are very fortunate to have gained such a strong team player in Kansas and Missouri,” said Doug Meacham, president and chief operating officer.

“Sam understands how to drive organizational growth and knows the challenges and opportunities of operating an independent insurance agency.”

AXA XL Announces A New Leadership Team

AXA XL announced a new leadership team and proposed changes to the operating model of its insurance business. Key proposed changes to the operating model include the creation of a single global insurance underwriting function and the establishment of three geographical Business Units across the Americas, Eurasia, and the UK & Lloyd’s market.

The leadership team includes notable executives such as Nancy Bewlay, Joseph Tocco and Noel Richardson.

Nancy Bewlay has been appointed chief underwriting officer. Prior to her new role, she served as global chief underwriting officer for long tail property & casualty risks. In this role she was responsible for developing core underwriting strategies and optimizing product profitability for AXA XL’s long tail insurance lines, including casualty, cyber and professional liability.

Joseph Tocco will serve as chief executive officer, Americas. He previously held the role of head of North America property & casualty (P&C), which included professional insurance lines for AXA XL. In this role, Tocco was responsible for driving the development and effective delivery of innovative insurance and risk management solutions for AXA XL brokers and clients based in the US, Canada and Bermuda.

Tocco joined XL Group in 2011 from Zurich Financial Services, where he led the North America property group, Global Corporate Business Unit.

Noel Richardson will support the team by continuing to serve in his current role as chief risk officer. He was appointed to the position in 2018. He is responsible for defining and ensuring application of the risk strategy and associated framework, governance, processes and appetites across AXA XL.

Kelly Adams Joins Miniter Group

Kelly Adams, vice president, insurance operations and tracking, Miniter Group

Miniter Group, provider of collateral risk transfer solutions to the lending industry, announced that Kelly Adams has joined the company as the vice president, insurance operations and tracking. Adams will be responsible for the overall management of Miniter’s Borrower-CentricSM insurance tracking operations.

Adams brings 20 years of experience.

“We are so pleased that Kelly has joined the management team here at Miniter Group,” commented Julianne Donley, president & chief executive officer of Miniter Group.

“Kelly’s past industry experience and proven leadership skills will lead the way as we provide excellent customer service to our lending clients and continue to gain market share in our industry.” &

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.

By: Risk & Insurance | April 3, 2024

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.

9 People on the Move

Lori Goltermann Named APIW Woman of the Year

Global Risk Solutions Appoints Multinational Senior VP and Chief Underwriting Officer

Ian Davis Joins People’s United Bank; Exits Public Sector