A group of forward-thinking insurance syndicates affiliated with Lloyd's of London, insurers with ideas for creative insurance products, vendors and brokers gathered in Baltimore this week for the Cover Holders and Risk Takers Exchange Constitutional Convention.
While most industry conferences offer the opportunity to network and exchange business cards, CHART is taking those opportunities to another level by facilitating meetings between cover holders and risk takers, and allowing them to accomplish in three days what it would normally take them three or more years to do.
Founded by Glenn Clark, CHART's “earliest adopter” and president of Rockwood Programs Inc. in Claymont, Delaware, the organization enables these groups to share ideas and possibilities to see what partnerships and opportunities might encourage them to grow their businesses in new ways.
“We see CHART as our declaration of interdependence,” said Clark in describing the focus of the organization. “We didn't want the meeting overpopulated by intermediaries so we can foster open discussions between cover holders and risk takers.” Over the course of three days, close to 300 meetings will take place between London syndicates and agency personnel.
Tom Wilson, an attorney with the New York City office of law firm Wilson Elser Moskowitz Edelman & Dicker, said he is a big believer in CHART. “It creates a watering hole where the clients can meet the syndicates, establish relationships and accelerate the business development cycle.”
“It's a platform for the education of potential U.S. cover holders,” explains Jesse Viani, director of insurance business services for Wilson Elser Consulting in the U.S. and the U.K. “It lets them see where the London market is headed in the next 3-5 years and helps them to connect with the services they need.”
|Matchmaking opportunity
Pairing the cover holders and risk takers is a fine science. “We use an extensive questionnaire to learn about the companies and help match them with the right opportunities,” explains Clark. “You have to be willing to give something in order to get something of even greater value.”
The companies provide information on their agencies and outline opportunities that could be “new or exciting.” From there, the companies are matched up with the appropriate partners and everything is outlined in advance of the meetings. “They approach this as partners, and the syndicates and brokers have to commit to giving everyone equal status regardless of size,” said Clark. “We are building a pipeline for the future.”
In May, 62 professionals went to London to present their ideas to the syndicates with Lloyd's. “The prework and preparation that go into these meetings separates CHART from some of the other industry events. We did 36 new deals last year. It's a very niche program that allows specialists to do business with Lloyd's,” adds Clark.
|On the horizon
Viewing CHART as a program incubator allows companies to present their product ideas to the syndicates that have the resources to develop them.
Among the new coverage possibilities are specialized gun liability policies that would be an add-on to regular personal liability policies for homeowners — a way to insure that exposure. There are products that address cybersecurity issues, hacking, social engineering and other cyber risks tailored for insurers' clients. Increased drone usage is one area that has opened up a number of new risks that need to be underwritten.
London-based Ark Syndicate Management Ltd. is looking at the possibility of underwriting boat drones — unmanned boats that can be used to provide supplies or even rescue individuals in danger at sea. The company also provides indemnity for lottery prizes and covers calibration issues for casino equipment.
“We try to find unusual losses,” says Ark's Richard Bryant. “You have to know who to go to for these types of coverage and that's the beauty of CHART. Entrepreneurs can pitch their thoughts to companies here.”
While not a major aspect of the discussions, brokers and third-party administrators are an important part of the CHART equation as well. Aubrey Fountain, senior vice president of specialty markets for York Risk Services Group, Inc. says the London markets are not like the U.S. markets. “The mechanics are different and companies need a team that can focus on those differences and guide them through the process.” Third-party administrators and brokers can provide this expertise and enhance the ongoing discussions.
Clark adds that companies need a London strategy, and CHART gives all of the players access to “best in class” partners.
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Patricia L. Harman
Patricia L. Harman is the editor-in-chief of Claims magazine, a contributing editor to PropertyCasualty360.com, and chairs the annual America's Claims Event (ACE), which focuses on providing claims professionals with cutting-edge education and networking opportunities. She covers auto, property & casualty, workers' compensation, fraud, risk and cybersecurity, and is a frequent speaker at insurance industry events. Contact her at [email protected]
