Rising Star Bo Shaw Talks to Risk & Insurance About the Real Estate Sector
Come see the Stars! As part of our ongoing coverage of the best brokers in the commercial insurance space, Risk & Insurance®, with the sponsorship of Philadelphia Insurance, is expanding its coverage of the Rising Stars, those brokers who represent the next wave of insurance brokering talent.
Look for these expanded profiles on the Risk & Insurance website and in your social media feeds now and continuing into 2022.
In this case, we caught up with Bo Shaw, a 2021 Power Broker® winner in the Real Estate category, to get his take on market conditions and real estate risk management considerations.
Risk & Insurance: What are some of the biggest challenges insureds in the real estate sector are facing from a coverage standpoint?
Bo Shaw: One of the biggest challenges in the current market place has been the need to insure to value based on the increased cost of reconstruction, across the industry.
The increased cost of reconstruction has impacted carriers profitability and has resulted in increased rates to make up for inflated reconstruction costs that weren’t underwritten for years prior. It’s been hard for insureds, because they’re having to increase their limits while taking rate increases from the carriers that are incurring losses off undervalued replacement cost.
R&I: How has the pandemic changed the way you conduct business, either with insureds or carriers?
BS: The pandemic has had a greater impact on the ability to manage relationships with carrier partners more than with insureds. The real estate sector is an essential business and only closed down for a short period of time.
Prior to the pandemic, a lot of my communication was already done virtually and was able to continue business as normal. On the other hand, our carrier partners historically have been in person meetings to review market appetite, underwriter’s roles, and opportunities for growth.
Currently, these meetings are primarily virtual and it has impacted the ability to build relationships with the people you rely on to do business with. I look forward to the day that everyone can meet safely in person.
R&I: When you look at your team, what are you proudest about in terms of the way it functions?
BS: I’m constantly amazed at how well the team stays organized while managing the day-to-day flow. They each offer different opinions for various challenges, which allows us to offer unique solutions for our clients.
R&I: If you could tell your clients one thing that would help them manage and transfer risk better, what would it be?
BS: While a property may look appealing from a pro-forma perspective, it is important to look into crime score data for the property itself.
Carriers are using this information, more than ever, to adjust rates and coverages forms. Using this information allows buyers the opportunity to manage their risk and make safer investment decisions.
R&I: What would the now more experienced Bo Shaw tell his younger self?
BS: Don’t spend energy worrying about the past or planning too far in the future. &