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Digital EditionQBE’s Dan Fortin on Specialty Market Opportunities and Broker Performance
As part of our expanded coverage of our 2025 Specialty Power Broker® winners and finalists, Risk & Insurance recently spoke with Dan Fortin, President of Specialty for QBE North America. We were interested in Fortin’s take on Specialty underwriting opportunities and what traits the long-time insurance veteran values in a broker. The following is a version of the conversation, edited for length and clarity.
Risk & Insurance: Thanks for meeting with us, Dan. What makes a standout broker from an underwriter’s perspective?
Dan Fortin: As a career underwriter, I believe communication is the key attribute of a standout broker. It’s always preferable to receive a phone call from a broker rather than an email, as emails often fail to accurately reflect the customer’s needs.
I appreciate when brokers take the time to explain why they are marketing a submission, what the customer values, and what they want to accomplish. This allows me to position myself to win the business. To do this effectively, the broker needs a good understanding of the customer’s profile.
Sophisticated customers typically focus on long-term relationships, strategic partnerships, claims capabilities, and financial capabilities. They want to place insurers in positions with a long-term focus, not just a year-over-year transaction. On the other hand, smaller customers without a risk manager may rely heavily on the broker and prioritize price.
As an underwriter, I always appreciate knowing the buyer’s behavior. Brokers who help me understand this better receive priority, not only for the current transaction but for future submissions as well.
Good brokers serve their clients well by being thoughtful and strategic about the placement of business, the insurers they select, and how they communicate with them. Experience and expertise are also essential technical aspects.
While email and text exchanges are useful for information exchange, deeper discussions, negotiations, and opportunities are best handled in person. Underwriters and brokers can learn much more through live, in-person interactions compared to email exchanges.
R&I: Are you observing a decline in brokers’ willingness to communicate via phone or in-person meetings?
DF: Yes, I have noticed a gradual decline in communication as brokers have increasingly focused on boosting margins and optimizing efficiency. They are making decisions about who interacts with underwriters and who deals with clients, sometimes separating these responsibilities.
As an underwriter, it becomes more challenging when dealing with a broker who lacks visibility to the client and doesn’t understand their needs as well as another broker might. Since joining the industry, I believe there has been a dilution in strategic communication and feedback.
Brokers and underwriters both strive for greater efficiency, with underwriters aiming to process more submissions and brokers seeking to increase profitability. However, I am focused on striking a balance between quantity and quality.
When we receive a high volume of submissions, we want to review each one and identify opportunities. Success in this endeavor hinges on effectively communicating our appetite and capabilities to brokers. If we consistently receive submissions that don’t align with our offerings, it indicates a failure on our part to convey our appetite and capabilities clearly.
R&I: Where do you currently see opportunities for specialty underwriters?
DF: When I think about specialty lines, it encompasses various areas defined by niche businesses, concentrated distribution, and deep expertise in certain lines of business. These are often characterized by low frequency and high severity of claims.
My experience in the specialty space has primarily been in financial lines, such as D&O, cyber, and professional liability. In recent years, I’ve also had exposure to aviation and accident health, which I consider specialist lines. Each of these lines of business operates independently, experiencing what I call “microcycles.”
Unlike the broad hardening of the market that impacted every insurance product in 2001/2002, I’ve observed mini cycles specific to individual lines of business. For example, the D&O market hardened in 2018 and 2019, while other lines remained stable. Cyber insurance hardened in 2021.
In terms of increasing demand for specialty lines, I haven’t experienced a material shift recently. Our submission activity continues to increase, primarily due to our investment in underwriters and our expanded footprint in the US compared to when I joined QBE four years ago.
Economic factors also play a role in the demand for specialty lines insurance. As the economy gains momentum, interest rates decrease, and business formation increases, whether through venture capital or IPOs, it creates more demand for underwriters. However, I don’t anticipate any dramatic shifts in the next twelve months.
R&I: What impact, if any, will the California wildfires have on the commercial insurance market?
DF: In my opinion, the California wildfires are unlikely to significantly impact the broader commercial insurance market. Personal lines insurance in California has been challenging for many years, and this event might exacerbate those difficulties. However, I don’t believe it will be a substantial capital event for the industry as a whole.
That said, the wildfires are concerning from a catastrophe allowance perspective. As potentially the largest wildfire loss in history, it will likely erase a significant portion of insurers’ catastrophe allowances early in the year, before the wind and convective storm seasons even begin. This is particularly worrisome for insurers focused on property.
Nonetheless, even if the wildfires result in losses as high as $50 billion, that would still represent less than 5% of the industry’s capital. In my view, capital would need to be severely impacted to reduce capacity and supply enough to alter the supply-demand equation and trigger a hard market. &
