2018 Power Broker

Marine

His ‘Claim’ Is Advocacy

George Andersen
Assistant Vice President
Aon, New York

Most brokers list their job title as broker, of course. But George Andersen calls himself a client advocate/broker, and that small distinction is revealing.

Having “grown up” in the insurance world thanks to a mom in the biz, it feels like family to Andersen, so he treats his clients like family.

Andersen insists on being involved in the claims side of his clients’ needs because it allows him to better see where coverage holes exist, make improvements and offer solutions, he believes.

Richard Stanton, director of risk management, BAE Systems Ship Repair, said Andersen’s industry knowledge is tremendous, his customer service is exceptional, and he does a great job with complex, marine-related coverage issues.

Case in point: BAE Systems had a failure-to-launch claim that was complicated on the liability and inland marine side. A third-party barge had become suspended on their marine railway.

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“George helped get the resources we needed to salvage the vessel and get the railway repaired,” said Stanton. “He also took the lead in brokering an agreement between the two carriers on the coverage issues.”  Andersen led the negotiations between underwriters, salvors and surveyors and got it resolved.

Howard Charles, COO, Phoenix Marine Co., said its barge sank in Nome, Alaska, leaving valuable equipment submerged shortly before the harbor waters were expected to freeze — and stay frozen until spring.

With no time to lose, Andersen dealt with the Coast Guard and other officials and commissioned salvage divers to retrieve the sunken valuables.

A World of Knowledge

Herman Brito Jr.
Vice President
Marsh, New York

With his clients doing business in multiple countries, Herman Brito Jr. has developed a well-earned reputation as an international compliance expert, a skill that is becoming more and more valuable in the marine cargo insurance industry.

“We had a major situation where we weren’t compliant in Nigeria, a highly regulated country,” said Frank Santomauro, director, Corporate Insurance Group for Pfizer.

“Herman was a tremendous resource and helped us secure a local marine policy for our import shipments. He has excellent technical and negotiating skills, and he is a great advocate for Pfizer. He really understands our business, is reliable and he delivers,” Santomauro added.

Another client experienced losses on shipments prior to their 2018 renewal, which of course, caused concerns about premium increases.

Brito got out in front of it by creating a partnership between his client’s risk management team and the insurer’s loss control team to highlighting the client’s commitment to improving their risk. The result was more than $100K in savings.

He did something similar for another client: By highlighting the client’s commitment to work in conjunction with its carrier’s loss control team and leveraging its longstanding partnership with the insurer, Brito was able to reduce the client’s captive annual aggregate retention by $2 million without an increase in risk transfer premium.

Defining Moments

Scott Davis
Senior Vice President
Aon, Southfield, Mich.

When Scott Davis became the broker for a complex account, he started by reviewing everything from wording to data and learned that the coverage was so poorly defined that even the underwriters were unclear about what they were covering.

He felt this caused the underwriters to be conservative in their risk approach. Davis created a new workbook that compared critical items over time.

He reworded the submission document, too, to focus on critical items and more clearly define things for the underwriters.

He also worked with his client to rewrite the policy, so coverage was more clearly defined. The new and improved submission and policy wording resulted in a favorable result at renewal.

Bonus: The placement was finalized before expiration, something that had not been achieved in years.

“Scott is strategic,” said his client. “His customer service and communications are extremely good. He helped us restructure the wording and get broader coverage with a cost reduction.”

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Davis also clarified things for another client. “Scott met with me on the first day he worked with us and asked me what my expectations were. I told him, and he has delivered on all of them,” the client said.

Rosemarie Annese, director of risk management, Thermo Fisher Scientific, said Davis guided them as they told a key customer something wasn’t doable in the timeframe requested, ultimately helping them preserve the relationship and work toward accomplishing the request.

Getting It Done

Hardie Edgecombe
Area President
Gallagher, Metairie, La.

Mark Pisani, vice president of human resources and risk management, Associated Terminals, received a call on Thanksgiving morning: Could he place cargo coverage on a ship traveling to Louisiana from South America that would cover for discharge by his cranes?

Not only was it a holiday, but it was also something they wouldn’t normally do — the customer usually secures coverage. But unable to do so, the customer turned to Pisani, who then turned to Gallagher’s Hardie Edgecombe.

Hardie’s team worked with underwriters to get the coverage placed “in time for the ship to sail with favorable pricing. Our customers were happy and that resulted in continued business,” Pisani said.

More routinely, Edgecombe holds semiannual reviews to analyze the year’s performance and discuss renewals.

“These reviews have impacted the direction of our insurance program,” Pisani said.

“We’ve been able to properly assess taking on larger SIR’s, evaluate the diversity of our risk portfolio, gauge uninsured risk to our risk tolerance, review opportunity to set up our own captive, and move a split marine program to one where shared risk made more sense.

“Working with Hardie and his team at Gallagher has been a pleasurable and beneficial experience.”

Another customer, Steve Hale, CEO, Gulf Copper and Manufacturing, agreed.

Connected and Effective

William Penn
U.S. Marine Practice Leader
Aon, Southfield, Mich.

William Penn operates under the guiding principle that being a broker means being of service to your clients and treating them the way you’d like to be treated.

At the end of the day, he believes, clients buy insurance to get their claims paid, and it’s getting the difficult claims paid that differentiates the industry’s leading brokers.

So naturally, when a client had what he called “a tough year,” it was the expertise of Penn that quickly and satisfactorily resolved claims — and ultimately made that tough year a little more bearable.

One of the claims involved several shipments on the vessels of a shipping company that went bankrupt.

Penn worked with his client’s logistics team in the U.S. and Korea, as well as the underwriters, to ensure the containers made it to their destinations, so Penn’s client could keep its own clients happy. Then Penn handled the claims process to make certain it was properly adjusted to the satisfaction of the client.

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The key to the success of this claim was coordination with all parties and involving the right team of claims handlers and forensic accountants. They had weekly, sometimes daily, calls.

The client said, “Bill is a seasoned veteran in the marine market. But he has the drive and determination of a new broker trying to prove himself.

“He is one of the most connected brokers we have ever worked with in his respective field. Most lines of coverage are very relationship-driven, and I would say even more so in marine.”

More from Risk & Insurance

More from Risk & Insurance

4 Companies That Rocked It by Treating Injured Workers as Equals; Not Adversaries

The 2018 Teddy Award winners built their programs around people, not claims, and offer proof that a worker-centric approach is a smarter way to operate.
By: | October 30, 2018 • 3 min read

Across the workers’ compensation industry, the concept of a worker advocacy model has been around for a while, but has only seen notable adoption in recent years.

Even among those not adopting a formal advocacy approach, mindsets are shifting. Formerly claims-centric programs are becoming worker-centric and it’s a win all around: better outcomes; greater productivity; safer, healthier employees and a stronger bottom line.

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That’s what you’ll see in this month’s issue of Risk & Insurance® when you read the profiles of the four recipients of the 2018 Theodore Roosevelt Workers’ Compensation and Disability Management Award, sponsored by PMA Companies. These four programs put workers front and center in everything they do.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top,” said Steve Legg, director of risk management for Starbucks.

Starbucks put claims reporting in the hands of its partners, an exemplary act of trust. The coffee company also put itself in workers’ shoes to identify and remove points of friction.

That led to a call center run by Starbucks’ TPA and a dedicated telephonic case management team so that partners can speak to a live person without the frustration of ‘phone tag’ and unanswered questions.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top.” — Steve Legg, director of risk management, Starbucks

Starbucks also implemented direct deposit for lost-time pay, eliminating stressful wait times for injured partners, and allowing them to focus on healing.

For Starbucks, as for all of the 2018 Teddy Award winners, the approach is netting measurable results. With higher partner satisfaction, it has seen a 50 percent decrease in litigation.

Teddy winner Main Line Health (MLH) adopted worker advocacy in a way that goes far beyond claims.

Employees who identify and report safety hazards can take credit for their actions by sending out a formal “Employee Safety Message” to nearly 11,000 mailboxes across the organization.

“The recognition is pretty cool,” said Steve Besack, system director, claims management and workers’ compensation for the health system.

MLH also takes a non-adversarial approach to workers with repeat injuries, seeing them as a resource for identifying areas of improvement.

“When you look at ‘repeat offenders’ in an unconventional way, they’re a great asset to the program, not a liability,” said Mike Miller, manager, workers’ compensation and employee safety for MLH.

Teddy winner Monmouth County, N.J. utilizes high-tech motion capture technology to reduce the chance of placing new hires in jobs that are likely to hurt them.

Monmouth County also adopted numerous wellness initiatives that help workers manage their weight and improve their wellbeing overall.

“You should see the looks on their faces when their cholesterol is down, they’ve lost weight and their blood sugar is better. We’ve had people lose 30 and 40 pounds,” said William McGuane, the county’s manager of benefits and workers’ compensation.

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Do these sound like minor program elements? The math says otherwise: Claims severity has plunged from $5.5 million in 2009 to $1.3 million in 2017.

At the University of Pennsylvania, putting workers first means getting out from behind the desk and finding out what each one of them is tasked with, day in, day out — and looking for ways to make each of those tasks safer.

Regular observations across the sprawling campus have resulted in a phenomenal number of process and equipment changes that seem simple on their own, but in combination have created a substantially safer, healthier campus and improved employee morale.

UPenn’s workers’ comp costs, in the seven-digit figures in 2009, have been virtually cut in half.

Risk & Insurance® is proud to honor the work of these four organizations. We hope their stories inspire other organizations to be true partners with the employees they depend on. &

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]