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IBAMAG.COM ISSUE 6.03 | $12.95

SURVIVE AND THRIVE

FIVE-STAR WHOLESALE BROKERS AND MGAsSPECIAL REPORT:

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https://ric-ins.com/

SPECIAL REPORT

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FIVE-STAR WHOLESALE BROKERS AND MGAs

THE WHOLESALE, specialty and surplus lines insurance industry exemplified both stability and growth during the last year. According to a 2017 A.M. Best report, surplus lines reached a historic $42.4 billion in direct written premium in 2016, representing a 2.8% increase over the prior year and the fifth consec-utive year of growth. Coupled with the statistics produced by the 15 states with stamping offices, which reported a 6.4% increase in premium during 2017, these are good indicators of the market’s health heading into 2018.

The Wholesale & Specialty Insurance Association [WSIA] strives to help members build profitable business relationships in the industry by providing unparalleled networking and business meetings, education, talent recruitment and development initiatives, regu-latory and legislative advocacy, and promotion of the value of wholesale distribution, all designed to foster a healthy and growing market.

This industry is built on personal relation-ships and the ability to create innovative solu-tions for the most unique and complex risks. WSIA’s Annual Marketplace and Underwriting & Leadership Summit provide a forum for

IBA unveils the MGAs and wholesale brokers that producers feel stand out above the rest

FIVE-STAR WHOLESALE

BROKERS AND MGAs

Reminding retail insurance agents about the value of wholesale distribution is also a priority. A 2016 analysis from Conning Inc. found that wholesale distribution generates lower cost ratios for insurers than retail distribution. In fact, the value that wholesalers offer to retail agents and brokers – technical expertise, inno-vative solutions to complex risks, access to strong and stable insurers – adds no cost to the trans-action. While there has never been a cost for seeking a wholesale quote, we can now demon-strate that there is no additional cost in lever-aging a wholesale specialist to find the best and most cost-effective solution, making it the best way to serve the insured.

WSIA members represent tens of thousands of individual brokers, insurance company profes-sionals, underwriters and other insurance special-ists and professionals worldwide. We look forward to supporting these outstanding professionals and the wholesale, specialty and surplus lines industry to navigate its bright future.

Corinne JonesPresident, 2017–2018WSIA

networking where industry partners can collab-orate and build technical expertise to develop cost-effective solutions for non-standard risks. WSIA’s education programs, held throughout the year, also provide technical training and professional development to keep members at the forefront of best practices in the industry during this time of growth. As a result, WSIA members are innovators whose knowledge of and access to specialty markets result in custom-ized solutions for retail agents and their clients.

WSIA also continues to monitor and advo-cate for state and federal regulation and legis-lation that impacts the industry. Revisions to the federal definition of private flood insurance in the Flood Insurance Market Parity and Modernization Act, preserving the private market’s ability to solve unique and complex flood risks for consumers, is currently a priority, as is uniform implementation of and continued support of the Nonadmitted and Reinsurance Reform Act [NRRA], reform of the Foreign Account Tax Compliance Act [FATCA] to elim-inate the P&C industry’s requirement to report non-cash-value premiums under FATCA, and implementation of the National Association of Registered Agents and Brokers [NARAB].

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Broker/MGAUnderwriting

responsiveness/turnaround time

Range of products

Technology and

automation

Marketing support

CompensationTechnical expertise

and product knowledge

Overall relationship

Claims Support

All Risks Ltd.

AmWINS Group Inc.

Appalachian Underwriters

ARC Excess & Surplus LLC

Brown & Riding

Burns & Wilcox

Capitol Special Risks

CRC Swett

Genesee

Hull & Company

K&K Insurance Group Inc.

Monarch E&S Insurance Services

Preferred Property Program

RIC Insurance General Agency Inc.

Risk Placement Services Inc.

RT Specialty LLC

Scottish American

Southern Insurance Underwriters Inc.

Sullivan Brokers Wholesale Insurance Solutions

U.S. Risk Insurance Group Inc.

USG Insurance Services Inc.

Worldwide Facilities LLC

FIVE-STAR MGAs AND WHOLESALE BROKERS BY CATEGORY

Denotes an all-star rating


FIVE-STAR WHOLESALE BROKERS AND MGAsSPECIAL REPORT

26 www.ibamag.com

OUT-THINK. OUT-WORK. OUT-EXECUTE.REPEAT.

rtspecialty.com

If your client has a complex risk situation, you don’t have to go it alone. Our wholesale specialty risk professionals have deep experience and the drive to find superior placement for even the toughest risks. We team with retailers to design creative solutions for all sized accounts. Our innovation, tenacity and responsiveness enable us to repeatedly out-execute the competition.

Find your RT Specialty broker at www.rtspecialty.com.

Agribusiness | Aviation | Casualty | Construction | Energy | Environmental | Healthcare | Life ScienceProfessional & Executive Liability | Property | Real Estate | Transportation | Workers’ Compensation

WHAT ARE THE THREE MOST IMPORTANT THINGS YOU LOOK FOR IN A WHOLESALE BROKER OR MGA?IBA asked producers to select the top three most important qualities they look for in a MGA from a selection of 10 criteria. Here’s what they had to say:

6%

3%

94%

58%

55%

39%

14%

12%

11%

8%

Underwriting responsiveness/turnaround time

Technical expertise and product knowledge

Pricing

Range of products

Compensation (commission, bonuses, profit-share, etc.)

Marketing support

Claims support

Reputation

Other

Technology/automation

HOW WELL DID WHOLESALE BROKERS AND MGAs PERFORM ON AVERAGE IN KEY CATEGORIES ?

9.00

9.25

8.68

8.54

8.58

8.58

9.26

8.34

Underwriting responsiveness/turnaround time

Technical expertise and product knowledge

Range of products

Compensation (commission, bonuses, profit-share, etc.)

Marketing support

Claims support

Overall relationship

Technology/automation

WHAT OTHER AREAS ARE IMPORTANT TO PRODUCERS?Producers wrote in a few of the other qualities they look for in their wholesale partners:

• Good rating system

• Friendliness

• Risk services

FOR THE fifth year in a row, IBA asked producers to rate the performance and service of their wholesale MGAs and brokers on a scale of 1 (poor) to 10 (excellent) in eight different categories:

• Underwriting responsiveness/turnaround time

• Technical expertise and product knowledge

• Range of products

• Compensation (commission, bonuses, profit-share, etc.)

• Claims support

• Marketing support

• Technology/automation

• Overall relationship

Producers were also asked to select the top three qualities they look for in an MGA or wholesale broker from a selection of criteria that included pricing, underwriting respon-siveness, claims support, range of products, technology/automation, marketing support, technical expertise and product knowledge, compensation, and reputation. In addition, IBA asked producers to provide feedback on

how their partners could improve the producer/wholesale relationship.

The MGAs and brokers that earned an average of 8 or higher in at least one category were awarded a five-star designation, indi-cating their superior service to the producer channel. In total, 22 wholesale partners made this year’s list of five-star brokers and MGAs. Four companies earned the distinction of All-Star MGA by earning five-star rankings across every category.

Read on to discover which MGAs and wholesale brokers are performing above the rest, and find out what producers had to say about the service they receive.


When evaluating their MGAs and wholesale brokers as a total package, producers were generally pleased with the services they received across the board. Eighteen out of the 22 companies on this year’s list garnered a five-star rating for their overall relationship with producers – the most out of any category. On average, wholesale brokers and MGAs scored a whopping 9.26 out of 10 in this category.

“Excellent” and “superior” were just a few of the words producers tossed out when talking about their relationships with their MGAs and wholesale brokers, offering comments such as:

• “From management to client services, everyone is nice and professional.”

• “Great to work with.”

• “They are there when I need them … fast and knowledgeable. Nothing at all to improve.”

• “I have an excellent relationship with this wholesale firm.”

• “They are a true partner to me.”

Yet, despite all the praise, there were a few producers whose relationship with their wholesale broker or MGA had soured; one even went as far as to call their partner “the worst MGA.” A few producers offered advice as to how their relationship could improve: One said additional compensation would be welcomed, while another asked for more regular visits from their wholesale partner to continue to strengthen the relationship.

FIVE-STAR MGAs AND WHOLESALE BROKERS

All Risks Ltd.

AmWINS Group


Brown & Riding

Burns & Wilcox


CRC Swett

Hull & Company

K&K Insurance Group



RIC Insurance General Agency

RT Specialty

Scottish American

Southern Insurance Underwriters


USG Insurance Services

Worldwide Facilities

Wholesale partner performance

9.26

“I give my MGA an A+. But there is some room to improve with underwriting and turning quotes back promptly”

Personal Lines l Commercial Lines l Agri-business

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SPECIAL REPORT

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All Risks Ltd.

AmWINS Group

Brown & Riding


CRC Swett

Hull & Company



RT Specialty

Scottish American


U.S. Risk Insurance Group


As in previous years, underwriting responsiveness and turnaround time continues to be the most important thing producers consider when assessing a wholesale partner. Wholesale brokers and MGAs did their best to deliver, scoring a 9 out of 10 in this category – the third highest of all categories.

Overall, producers were satisfied with wholesalers’ responsiveness, whether they dealt with the underwriters themselves or their assistants. In this business, it’s not just about being the fastest, but also about staying connected to producers and their clients every step of the way. “They are my ‘go to’ for a reason,” one producer said of his MGA of choice. “I’ve never had to wait, and any minor delays are explained.”

Even though most feedback from producers was positive, some had suggestions for improvement, including greater consistency. One producer noted that turnaround times are “excellent overall, but [there is] some fluctuation among offices.” Another commented that it can be “hard to gauge, as it depends on what department you’re working with. Some underwriters are a 10, and others a 7.” This ties into recruitment as well: One producer advised his MGA to make sure they are “adding qualified people to achieve more of the same.” Other suggestions included more proactive work such as “providing more information on carrier-generated endorsements to avoid delay/extra work” and “supplemental apps [that] could be accessed on the website.”


All Risks Ltd.

AmWINS Group

ARC Excess & Surplus

Brown & Riding

Burns & Wilcox


CRC Swett

Hull & Company




RT Specialty

Scottish American

U.S. Risk Insurance Group



Although this category seems more like an unstated expectation, IBA added it to the mix this year to find out how producers feel about their MGAs’ and wholesale brokers’ expertise. The good news is, wholesale partners are definitely meeting producers’ expectations, judging from the average score of 9.25 they received in this category.

For producers, expertise isn’t about having all the answers right away, but rather knowing where to find them or at least pointing a producer in the right direction. “Most issues are solved with first interface,” one producer said. “Some issues require [further] research, which is understandable and welcome.” Another producer appreciated the fact that their partner willingly refers them to an appropriate resource person if they can’t provide the requested product.

Still, a couple of producers noted that wholesalers and MGAs could use some improvement in other aspects, such as providing more nuanced information to explain the differences in coverage and endorsements from various carriers, and being willing to stretch their capabilities and learn more about other markets, even if they’re not necessarily part of their portfolio of expertise.


9.25


9.00

TECHNICAL EXPERTISE AND PRODUCT KNOWLEDGE

UNDERWRITING RESPONSIVENESS AND TURNAROUND TIME


SPECIAL REPORT

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AmWINS Group

Brown & Riding


CRC Swett

Genesee

Hull & Company


Risk Placement Services

RT Specialty

Not a lot of producers expect extensive marketing support from their wholesale partners, preferring instead to handle marketing tasks themselves. Interestingly, though, the category did place a notch higher than claims support in terms of importance. While wholesale brokers and MGAs received a decent score of 8.58 out of 10 in this category,

based on their feedback, producers seem to have varying preferences and mixed reviews for their wholesale partners when it comes to marketing.

For those who are pleased with the marketing efforts of their wholesale partners, a personal touch seemed to make all the difference. Even in the digital age, producers said they want “more visits” and “face time with wholesalers,” suggesting there are some aspects of the job that can never be replaced by technology. “[They’re] among the best of our wholesalers – we actually see our reps/underwriters in the office,” said one producer. Another producer commended his wholesale partner for not just providing detailed quotes, but also taking time to visit their office and discuss those quotes with them and their customers. Informative emails were also generally appreciated by producers.

Although some producers don’t think marketing support from their wholesale partner is a pressing need, they agreed that most wholesalers should be keen to help out in this area should the need arise.


All Risks Ltd.

AmWINS Group


Brown & Riding

Burns & Wilcox


CRC Swett

Hull & Company

K&K Insurance Group




RT Specialty

Scottish American




Although producers understand the value of developing a niche, some appreciate wholesale partners who can offer a wide range of products, especially for markets that are harder to access. Wholesale brokers and MGAs performed well in this category, scoring an average of 8.68.

Some producers mentioned areas such as commercial auto, oil and gas, construction, workers’ comp and professional liability as products they’re keen for wholesalers to offer. For others, however, it’s a matter of enhancing capacity. “They can handle all our small to mid-sized accounts, [but] they do not work brokerage accounts well,” one producer said. Another wanted better small-business capabilities from his MGA. Ultimately, it’s about demonstrating initiative and willingness to be flexible. “Don’t only provide what we’ve asked for – give us alternatives and options,” one producer requested.

Still, many others encouraged their wholesale partners to stick to one or two areas of expertise – one producer commented that MGAs already have too many options, and they should consider limiting their products. “[Having a] niche is better than a broad range unless you can stay at the top of the game,” another producer advised. “Be number one or two in the sector [you’ve chosen].”

With Risk Placement Services (RPS) as my trusted partner, I feel confi-dent I am providing my customers with the right solutions and products to meet their needs. RPS provides me access to the top markets and industry experts while offering customized solutions designed, negotiated, and tailored to each unique risk. I am confident in advocating RPS, to learn more call 866.595.8413 or email [email protected].

RPSins.com

“RPS INSPIRES CONFIDENCE”

– LEIGH SHIRLEYLEIGH SHIRLEY INSURANCE

– LEIGH SHIRLEY


8.68


8.58

“[They’re] among the best of our wholesalers – we actually see our reps/underwriters in the office”

RANGE OF PRODUCTS MARKETING SUPPORT


RIC INSURANCE GENERAL AGENCY Headquarters: Santa Rosa, CA Leadership: Gary Kitchen, president and CEO

RIC Insurance General Agency is an independently owned insurance general agency, distributing and underwriting commercial and personal lines insurance products and representing both admitted and non-admitted companies.

Last year was an exciting one for

RIC, which made heavy investments in onboarding people with expansive expertise and adding new products, markets and technology. The company grew by double digits in both its commercial and personal lines divisions, and also saw significant growth in its non-admitted commercial, non-admitted personal, specialty and transportation departments.

RIC aims to provide a nationwide audience of independent agents and brokers with a broad spectrum of insurance products and carriers. The company’s mission is to

give agents and brokers a competitive edge in the marketplace by providing a superior customer experience from writing the risk to claims support. RIC believes every transaction is a building block for a successful business relationship.

RIC is also one of only two insurance entities authorized as an official distribu-tion channel for the State Compensation Insurance Fund of California. RIC provides thousands of independent insurance brokers access through the exclusive Access State Fund program.

SPECIAL REPORT

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FIVE-STAR WHOLESALE PARTNER


www.ibamag.com 39


AmWINS Group

Brown & Riding


CRC Swett

Genesee

Hull & Company


RIC General Insurance Agency

RT Specialty



“Develop special programs; quicker claim process ”

A subsidiary of

Limit options ranging from $5 million to $50 millionCoverage can include excess D&O ● General Liability ● Auto ● Employee Benefits

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Follow Form EPLI is available only up to $25 Million limit

Preferred Property Program can help you procure Umbrella coverage for your insuredswith an AXV A.M. Best rated carrier

for the following types of risks:

Limit options ranging from $5 million to $100 millionFor information on our AURA program, contact our experienced underwriter Tom Clementi at 877-506-1430

or visit our website, www.aurains.com

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Claims processing and turnaround is a critical part of the customer experience – when a claim takes weeks or months to be resolved, retail brokers are often the ones who take the blame. Eleven MGAs and wholesale brokers earned a five-star rating for their claims support, and the category tied with marketing support at 8.58 in terms of average performance.

Responsiveness is the most important factor when it comes to claims, although producers also praised their wholesalers for “speed and efficiency.” Another producer gave his wholesale partner an unequivocal thumbs up: “I’ve had firsthand experience with a claim, and the team was incredibly helpful and knowledgeable.”

Suggestions for improvement included the addition of a claims liaison. “With claims issues, we have to go through the individual broker, not a claims department,” one producer said. It’s also important to note that the vast majority of producers who responded to this survey couldn’t assess this category because they have no claims experience with their wholesale partner. Some producers commented that claims services were unavailable, highlighting a missed opportunity for many wholesalers.


8.58CLAIMS SUPPORT


https://ppp-quotes.com/

PREFERRED PROPERTY PROGRAMHeadquarters: Holmdel, NJ Leadership: Ken Hager, president; Carmen Suarez, EVP, program business; Vincent Hager, president, JGS Insurance

As an MGA, Preferred Property Program, in conjunction with AURA (located in Hallandale Beach, Florida, and run by Tom Clementi), is a wholly owned MGA subsidiary offering umbrella policies from $1 million to $100 million in limits, as well as workers’ comp, environmental impairment, equipment breakdown and package policies for real estate owners. Some of the companies Preferred Property currently represents as an MGA for various product lines are XL Caitlin Insurance, Chubb Insurance, AmTrust Financial, CAU and CNA Insurance.

“We are extremely pleased to be recognized as a Five-Star MGA, especially

as this award is based on the nominations of our retail brokers,” says Ken Hager, president of Preferred Property. “I can’t thank them enough for this honor.”

“We try to make their job as easy as we possibly can,” adds executive vice president Carmen Suarez, “and it’s very rewarding to hear that our brokers hold us in the same

high esteem as we hold them.” With a dedicated team of talented

individuals who know what their brokers need and how to get it done for them, Preferred Property is headquartered in Holmdel, New Jersey, and was founded in 1998 by parent corporation JGS Insurance.

FIVE-STAR WHOLESALE PARTNER

SPECIAL REPORT

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All Risks Ltd.

Brown & Riding

Burns & Wilcox


CRC Swett

Genesee

Hull & Company



RT Specialty

Scottish American




“Who doesn’t want more?” is the prevailing attitude when it comes to compensation, and that rings true with the respondents to this year’s survey. While producers agreed that more compensation is always welcome, the majority voiced satisfaction with their wholesale partners’ compensation model. In total, 14 MGAs and wholesale brokers earned a five-star rating in this category, although it came in seventh in terms of overall performance.

For such a polarizing topic, producers had few criticisms overall about the compensation received from their MGAs and wholesale brokers. “They are a little higher than most,” said one producer, while another called his MGA’s compensation “fair and competitive.” Another producer praised his MGA’s “excellent bonus program.” The term “fair” came up often in producers’ responses, indicating that most wholesale partners offer compensation that’s in line with industry standards.

However, not all producers were pleased with amount they received from their wholesalers. “Pay the full commission,” said one frustrated producer. “Do not describe the commission and then let the broker find out the MGA is getting paid a split of that commission.”

‘

Your client’s plane crash is a painful way to learn the carrier you recommended has less than stellar claims service. Great American’s strength of specialization gives us the rare ability to see risks, write coverage and handle claims in a way that gives your clients greater satisfaction.

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Great American Insurance Group, 301 E. Fourth St., Cincinnati, OH 45202. Policies are underwritten by Great American Insurance Company, Great American Alliance Insurance Company and Great American Security Insurance Company, authorized insurers in all 50 states and the DC. © 2018 Great American Insurance Company. All rights reserved.


8.54COMPENSATION


SURVIVE AND THRIVE€¦ · Account Tax Compliance Act [FATCA] to elim - inate the P&C industry’s...

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