< Previous8BEST’S REVIEW • AUGUST 2022 Executive Changes most recent role as CEO of Manulife’s Asia region, according to a company statement. He will be based in Hong Kong, where he currently resides, the company said. Wadhwani has not been appointed for a fixed term, but his service contract contains a notice provision under which either party may terminate upon 12 months’ notice, according to a regulatory disclosure. Prudential also announced Nic Nicandrou, CEO, Asia and Africa, will leave after 13 years with the company to seek opportunities outside the group. With the announcement of the appointment of a permanent group CEO, the role of CEO, Asia and Africa will cease, according to a company statement. Axa XL Names Global Chief Underwriting Officer Axa XL named Libby Benet as global chief underwriting officer. She succeeds Nancy Bewlay, who was recently named chief executive of reinsurance. Benet will have responsibility for underwriting governance, pricing, risk aggregation and global product strategy, according to Scott Gunter, Axa XL chief executive officer. Benet joined Axa XL in 2020 assuming the new role of CUO for cyber. In this role, she closely monitored the cyberrisk portfolio and exposure from an aggregated global product view. When Axa XL implemented its new operating model, she expanded her role, assuming global CUO responsibilities for all financial lines, including cyber, according to a company statement. Prior to Axa XL, Benet managed her own consultancy, where she assisted insurance company clients in the development and implementation of new insurance products and consultation on the set up of underwriting and claims systems and feedback on reinsurance purchasing. Her insurance career also includes positions with Beazley, General Reinsurance and Zurich, the company said. Scor Names Successor to Retiring CEO of Reinsurance Scor named Stuart McMurdo to succeed Michel Blanc as chief executive officer of reinsurance. Blanc will retire in January 2023 after 31 years with Scor. Scor also appointed Catherine Fassi to succeed McMurdo as regional CEO of Europe, Middle East and Africa, and Canada for property/casualty. McMurdo joined Scor in 2018 as CEO of Scor U.K. and the Scor Syndicate and became regional CEO for EMEA in 2020. His leadership was essential to improve the financial performance of the Scor Syndicate and to bring together the P/C platform in EMEA, the company said. Prior to joining the company, McMurdo was the head of reinsurance for Santam Ltd., South Africa’s largest short-term insurer. His responsibilities included both the buying of reinsurance for the group and the establishment of Santam Re, a business writing inwards reinsurance from selected territories around the world. Before joining Santam, McMurdo was general manager of one of South Africa’s leading retail brokerages, after spending 11 years with the Hannover Reinsurance Group in various management roles, both in South Africa and Germany, according to his company bio. A recruitment process has been initiated to replace McMurdo as CEO of the Scor Syndicate and Scor U.K., and he will remain CEO of these two entities until the end of this recruitment process and regulatory approval, the company said. Fassi joined Scor in 2013 as P/C chief accounting officer and subsequently held various roles within the P/C finance team. In 2019, she was promoted to Scor P/C deputy chief financial officer, and then in 2020 to Scor P/C CFO, according to her company bio. MetLife Names Vice President-Head of Federal Government Relations MetLife Inc. named Chris Rosello to succeed Maggie Gage as vice president and head of federal government relations. Gage left the company earlier this year. Rosello will lead the team responsible for representing MetLife’s interests before key federal stakeholders. He will be based in Washington, D.C., and report to Susan Greenwell, senior vice president and head of global government relations, the company said. Libby Benet Anil Wadhwani Stuart McMurdo 9BEST’S REVIEW • AUGUST 2022 Rosello joins MetLife from HSBC, where he most recently served as executive vice president and head of U.S. public affairs and led the planning, coordination and execution of the bank’s federal, state and regulatory strategy, according to a company statement. Prior to joining HSBC in 2017, Rosello was senior vice president of federal government relations at Wells Fargo, where he coordinated with internal business partners to implement Dodd-Frank Act provisions. Previously, he served in multiple roles in the U.S. Treasury Department, including as acting assistant secretary for legislative affairs, as well as in roles with the U.S. House Financial Services, according to the company. HDI Global Announces Changes to Management Board HDI Global named David Hullin to succeed Jens Wohlthat and take over the entire international business on the management board. The company also announced Andreas Luberichs stepped down from the management board of HDI Global SE, by mutual agreement, to pursue new challenges. Wohlthat will retire at the end of September. He grew up in South Africa and has spent his entire professional career at HDI. He started in 1980 as an apprentice at the HDI head office in Hannover before holding various positions in industrial insurance and foreign business. In 1996, he became section leader of liability foreign before joining the management board of HDI International Holding AG in 2002. Since 2006, Wohlthat has been a member of the management board of HDI Global SE, according to a company statement. Hullin will be responsible for the entire business of the industrial lines division of the Talanx Group outside Germany. Previously, Hullin was responsible for continental Europe, North and South America, the United Kingdom and Ireland, while Wohlthat’s area of responsibility covered Asia-Pacific, Africa and the Global Network. Wohlthat will continue to remain available to HDI Global in an advisory capacity, according to the company. Since May 2019, Hullin has been a member of the management board of HDI Global SE. Initially, he was responsible for the areas of property, engineering insurance, marine, multirisk and the Europe division. Since the beginning of 2022, he has worked together with Wohlthat looking after all international markets. He has 27 years of experience in reinsurance and in international primary insurance at the Talanx Group, the company said. Luberichs successfully launched the new organization for business in Germany and he leaves the management board after completing this time-limited transformation task. Upon his departure, Barbara Klimaszewski-Blettner is responsible for business in Germany. She has more than 12 years of experience in the insurance industry, including 10 years in industrial insurance, and has held various positions including with Allianz Global Corporate Solutions. Currently, she heads the southeast region at HDI Global with the locations Munich, Nuremberg and Leipzig. Klimaszewski-Blettner as managing director below the management board will report to Edgar Puls, the chairman of the management board of HDI Global SE, according to a company statement. Insurtech Lemonade Names Head of Government Relations Insurtech Lemonade named Scott Fischer, New York’s former chief insurance regulator, as head of government relations and co-general counsel of Lemonade Insurance Co. Fischer will serve as co-general counsel alongside Bill Latza, who has been a core part of Lemonade’s team from its beginning and plans to retire at the end of the year. As Lemonade’s first head of government relations, Fischer will provide strategic counsel regarding laws and regulations impacting the company and guide strategy around relationships with key stakeholders throughout the insurance regulatory community, according to a company statement. Fischer joins the company from global law firm DLA Piper, where he was a partner and represented international, national, and local insurers and producers in their regulatory and compliance activities. Most notably, Fischer worked with New York’s insurance regulator for nearly 10 years, ultimately becoming the top insurance regulator by serving as the executive Scott Fischer David Hullin Chris Rosello10BEST’S REVIEW • AUGUST 2022 Executive Changes deputy superintendent for insurance in the New York State Department of Financial Services before departing the public sector, according to the company. “Scott played a make-or-break role in Lemonade’s early days, as the regulator who scrutinized our business, gave us a hard time, and ultimately gave us our license,” said Daniel Schreiber, Lemonade chief executive officer and co-founder, in a statement. “He was a thoughtful, fair-minded, and exacting regulator, and his deep familiarity with insurance regulation on the one hand and Lemonade on the other make him the ideal leader of our government relations efforts.” SiriusPoint Adds to Exec Leadership Team, Names UK Country Branch Manager SiriusPoint Ltd. promoted Patrick Charles to global head of property/casualty insurance and services and to the company’s executive leadership team. Darryl Siry, chief technology officer, also was appointed to the executive leadership team. Charles has 20 years of underwriting and strategic management experience. He joined SiriusPoint in September 2021 as head of Americas property/ casualty insurance to manage and grow the company’s U.S. P/C insurance business. He is responsible for the company’s global strategy in P/C insurance, the expansion of SiriusPoint’s strategic partnerships, and the development of products and services to support new and existing partnerships, according to a company statement. Siry is an experienced technology, marketing, and operations executive. He joined SiriusPoint in May 2021 to lead the company’s technology integration and to develop an efficient and scalable operating platform across the global business. Siry is also responsible for the development of the managing general agency operating platform, which supports SiriusPoint’s strategic partnerships, and for maximizing the value of SiriusPoint’s insurtech partnerships and investments, according to the company. In addition, as the global specialty insurer and reinsurer enters its previously announced strategic partnership with Mosaic Insurance, Robert Harman, SiriusPoint London chief executive officer and managing director of Sirius International Managing Agency, will transition to Mosaic to continue his role as CEO of the managing agency, the company said. The partnership includes an investment in Mosaic Patrick Charles 02,000,0004,000,0006,000,0008,000,000 Arch Insurance Grp. Munich-American Holding Corp. Swiss Reinsurance Grp. Berkshire Hathaway Insurance Grp. Zurich Insurance US PC Grp. American International Grp. Chubb INA Group Hartford Insurance Grp. Travelers Grp. Liberty Mutual Insurance Co. Web Traffic: Visits to Top Cyber Insurance Writers’ Sites Visits Source: www.semrush.com Reported traffic for June 2022. Visit news.ambest.com for a full listing of Best’s Rankings. Liberty Mutual leads web analytics provider Semrush’s ranking of cyber insurers. to support continued growth, providing Mosaic with access to global licenses and infrastructure, and the planned sale of SiriusPoint’s Lloyd’s Managing Agency. The sale is subject to Lloyd’s and regulatory approvals. SiriusPoint will retain its U.K. branch operations, inclusive of Syndicate 1945, according to a company statement. To that end, SiriusPoint named Bobby Heerasing, who joined the company in October 2021 as head of international strategic business development, as SirusPoint U.K. country branch manager. Heerasing will be responsible for establishing and executing profitable growth strategies and operating plans for SiriusPoint’s London branch and syndicate, inclusive of the company’s reinsurance and insurance and services platforms, according to the company. QBE Re Names Interim Managing Director QBE named Peter Wilkins as interim managing director of QBE Re. He succeeds Steve Postlewhite, who leaves the business after a four-year tenure. A search is underway for a new managing director. Wilkins will oversee QBE Re’s new global alignment strategy and development plans. In May, Wilkins was appointed to the newly created role of chief underwriting officer, QBE Re, taking ownership of underwriting performance, strategy, and planning. BR21.MK166AA AM Best provides illuminating insight as a global credit rating agency, news publisher and data analytics provider. The strength of our 120+ years of experience can inform your business strategies and decisions. A RESPECTED AUTHORITY ON THE INSURANCE INDUSTRY Our Insight, Your Advantage ™ www.ambest.com (908) 439-220012BEST’S REVIEW • AUGUST 2022 Monthly Insurance Magazine Published by AM Best A.M. BEST COMPANY, INC. Oldwick, NJ CHAIRMAN, PRESIDENT & CEO Arthur Snyder III SENIOR VICE PRESIDENTS Alessandra L. Czarnecki, Thomas J. Plummer GROUP VICE PRESIDENT Lee McDonald A.M. BEST RATING SERVICES, INC. Oldwick, NJ PRESIDENT & CEO Matthew C. Mosher EXECUTIVE VICE PRESIDENT & COO James Gillard EXECUTIVE VICE PRESIDENT & CSO Andrea Keenan SENIOR MANAGING DIRECTORS Edward H. Easop, Stefan W. Holzberger, James F. Snee AMERICAS (NCSA) WORLD HEADQUARTERS 1 Ambest Road, Oldwick, NJ 08858 Phone: +1 908 439 2200 MEXICO CITY Av. Paseo de la Reforma 412 Piso 23, Col. Juárez, Alcadía Cuauhtémoc, C.P. 06600, México, D.F. 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Browne LEAD DESIGNERSAndrew Crespo, Angel Negrón DESIGNERSAmy Herczeg, Barbara Marino, Laura-Ann Russello, Jenica Thomas ONLINE RESOURCES BEST’S REVIEW EDITORIAL CALENDAR: www.bestreview.com/editorialcalendar CONTRIBUTOR AUTHOR GUIDELINES: www.bestreview.com/guidelines REPRINTS AND PERMISSIONS: www.ambest.com/permissions BEST’S REVIEW, Issue 8, August 2022 (ISSN 1527-5914) is published monthly by A.M. Best Company, Inc. Editorial and executive offices: 1 Ambest Road, Oldwick, NJ 08858-9988. A one-year subscription is $72. A two-year subscription is $137. Subscriptions: www.bestreview.com/subscribe.Telephone: +1 908 439 2200. Fax: +1 908 439 3971. Copyright © 2022 A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED. No portion of this content may be reproduced, distributed, or stored in a database or retrieval system, or transmitted in any form or by any means without the prior written permission of AM Best. While the content was obtained from sources believed to be reliable, its accuracy is not guaranteed. For additional details, refer to our Terms of Use available at AM Best website: www.ambest.com/terms. Articles from outside contributors do not necessarily reflect the opinions of AM Best. When presented herein, Best’s Ratings reflect AM Best’s opinion as to the relative financial strength and performance of each insurer in comparison with others, based on analysis of the information provided to AM Best. However, these ratings are not a warranty of an insurer’s current or future ability to meet its contractual obligations. Printed and bound by Fry Communications, Inc. Made in the USA MASTHEAD Background illustrations on both mastheads are of HMS Victory. To learn more about The Nelson Collection at Lloyd’s, visit www.ambest.com/nelson. FORESTAY13BEST’S REVIEW • AUGUST 2022 In the News Regulatory Update Timothy Darragh is an associate editor. He can be reached at timothy.darragh@ambest.com. Illinois proposes new auto insurance legislation and Louisiana deals with lack of homeowners coverage. Auto Insurance: A data call initiated by the Illinois Department of Insurance suggests some automobile insurance companies took advantage of the early stages of the pandemic to pad their profits, state officials said. The department said proposed legislation will clarify and strengthen its authority when using regulatory tools such as market conduct examinations to investigate the practices of insurance companies and data calls. Homeowners Insurance: Louisiana Insurance Commissioner Jim Donelon’s news conference on July 5 drew attention to a package of catastrophe reform bills passed recently by the state Legislature. Donelon said roughly 75,000 homeowners were scrambling to find coverage this summer after the withdrawal of Maison Insurance Co. from the state and the insolvencies of Lighthouse Property Insurance Corp. and Southern Fidelity Insurance Co. The rush to obtain coverage from Louisiana Citizens Property Insurance Corp., the property insurer of last resort, was so massive that agencies across the state had to bring in staff in the early morning or have them work past 6 p.m. so they could access Citizens’ overwhelmed application system, he said. Citizens has temporarily increased its capacity and will have permanent technological improvements soon, Donelon said. Bill Protects Insurers Serving Medical Marijuana Vendors Pennsylvania’s new law prohibits government agencies from banning, discouraging or penalizing financial services firms from providing service to a “legitimate” cannabis-related company or its employees. by Timothy Darragh A Pennsylvania bill protecting financial institutions, including insurance carriers, from legal consequences when they do business with licensed medical marijuana providers has received Gov. Tom Wolf’s signature. Wolf signed H.B. 331, a bill to allow credit unions to hold savings promotional programs, but which also had the medical marijuana language amended onto it. The new law prohibits government agencies from banning, discouraging or penalizing financial services firms from providing service to a “legitimate” cannabis-related company or its employees. It also covers owners, directors, shareholders and employees from being penalized or sanctioned for fines solely because the financial institution provided services to the cannabis-related company. However, the new law only addresses state- related actions. Marijuana remains a Schedule I substance under the federal Controlled Substances Act, which means it is considered to have high potential for abuse and is not approved by the Food & Drug Administration as medication and is therefore illegal. The Insurance Federation of Pennsylvania said it was pleased the legislation passed and was signed by Wolf. “But for it to have its intended impact—allowing insurers and financial institutions to provide services to legal cannabis businesses—we need passage of the corresponding federal law,” said Sam Marshall, chief executive officer of the federation. “Our hope is that the overwhelming bipartisan support shown in states like Pennsylvania will encourage our federal lawmakers to do the same.” A representative of the Pennsylvania Cannabis Coalition declined to comment. Before getting to Wolf, the legislation easily passed the Senate and then the House. Advocates of relaxing laws on medical or personal use of marijuana had their hopes on the Safe and Fair Enforcement Banking Act of 2021, which was attached to the National Defense Authorization Act but is now stalled in Congress. BR “But for it to have its intended impact— allowing insurers and financial institutions to provide services to legal cannabis businesses— we need passage of the corresponding federal law.” Sam Marshall Insurance Federation of PennsylvaniaAt Large 14BEST’S REVIEW • AUGUST 2022 I n my last column, “Insurance Industry Offers a Noble Value Proposition,” I suggested we need to spread the word about insurance as an excellent career choice. Like many of my colleagues, I did not set out to work in insurance, but I am very glad I made the decision to do so. In my experience, those of us who work in the industry truly enjoy our profession for a number of reasons detailed in that last column, including our commitment to making the world safer and more resilient. Over and over again, we hear that prospective employees—especially young people—want more than a salary and benefits. They are looking for purpose. As a result, they seek positions where they will feel connected to something larger, and insurance is an excellent option. Our industry has a long tradition of positive contributions to society, even though it’s largely unseen and often unacknowledged. The insurance industry’s role in making the world a better place goes well beyond the primary aspect we play in the “repair-and-restore” phase of a crisis. Yes, a fundamental piece of our value proposition is helping with the rebuilding of lives, businesses, communities and societies. But we are also significantly involved in ways that are not as well known. Our efforts begin long before a devastating event—predicting, preventing and minimizing potential damage, making the world safer and more resilient. Statements such as these—“building safer and more resilient societies” or “making the world a better place”—may sound like inspirational headlines or a collection of “feel-good” buzzwords. However, every day the insurance industry quietly influences many areas, including improving road safety, rebuilding critical infrastructure and increasing environmental resilience. We are an integral part of a much larger group focused on these ambitious goals, including federal and Best’s Review contributor Tony Kuczinski is chief executive officer of Munich Re US P&C Cos. He can be reached at bestreviewcomment@ambest.com. By Tony Kuczinski The insurance industry’s role in making the world a better place goes well beyond the “repair-and- restore” phase of a crisis. The Insurance Industry Makes the World Safer and More Resilient15BEST’S REVIEW • AUGUST 2022 state government agencies, local communities, regulators, financial institutions, nonprofits, global charities and other members of the private sector. The opportunity to be part of the solution to some of the world’s most serious problems is a very attractive element in “the war for talent.” The insurance industry has a significant impact in making the world safer and more resilient in several ways: • driving behavior through general risk awareness and education, with a focus on the benefits of prevention. • investing in innovative and cutting-edge technology to create “predict-and-prevent risk” products and services. • sharing our data-driven knowledge and insights to better understand various risks and mitigation methods. • partnering with public entities, nonprofits and academia. • conducting research and thought leadership. • supporting nonprofits such as the Institute for Highway Safety and the Insurance Institute for Business and Home Safety. • monitoring key legislation that promotes resiliency. We all know insurance is a very competitive business, but when it comes to the industry’s reputation, it should not be about selling a product or one company taking market share from another. From this perspective, we are not competitors. We need to come together to advocate for our industry to spread the word about the noble cause that we support and how we attract new talent. BRRisk Adviser 16BEST’S REVIEW • AUGUST 2022 B etween supply chain disruptions, inflation and staffing challenges, manufacturers are facing some potentially significant business interruption risks of late—risks that can push business income losses over policy limits. The good news is an appropriate business income limit and contingency plans can help offset risks like these, enabling business owners to avoid unnecessary financial exposure. Business income is commonly included in many property policies, but calculating proper limits is often challenging, especially with costs and added time that are much different than they may have been just a few years ago. As a result, agents increasingly are working with manufacturing clients to take a close look at their increased business income exposures, keeping in mind the potential cascading effects of supply chain and logistic issues. Business income coverage: Five key areas to consider in today’s market. 1. Cost and availability of materials, equipment, and inventory: U.S. manufacturers are increasingly dependent on overseas suppliers for raw materials, goods and machinery. This dependency, coupled with just-in-time manufacturing where there is little excess on hand and extended wait times, creates increased risk. 2. Leveraging new automation: More and more manufacturers are utilizing automation to meet demand and ease labor market challenges, implementing robotics to eliminate manual tasks and leveraging end-to-end automation and computer numerical control, or CNC, machines to complete finished products in a single operation. However, these technologies can be more expensive to repair and replace, so this is an important consideration. 3. Building restoration: When a manufacturing facility requires repair, rebuild or restoration, it may face increased costs of materials, added time Best’s Review contributor Matthew S. Mitchell is president, middle market at The Hanover Insurance Group Inc. He can be reached at bestreviewcomment@ambest.com. By Matthew S. Mitchell Agents can work with their manufacturing clients to review their current business income protection and limits and educate them on the increased risks related to business income. Rising Costs, Supply Chain Issues Impact Business Income Cover17BEST’S REVIEW • AUGUST 2022 to acquire the materials and potential delays. Manufacturers oftentimes may not realize their coverage is inadequate in this area until it is too late. Restoration that may have taken six months can now take well over a year and have cascading effects on the future of the business. 4. Temporary relocation and interdependency: Manufacturers’ business continuity plans often rely on temporary locations to continue production. With many facilities running production shifts around the clock, limited time may be available for another manufacturer to use their facilities to mitigate a loss. In addition, with interdependent locations, an issue at an upstream location could result in a significant negative downstream impact on total production. 5. Supply chain resiliency: A loss during a peak season, whether within the manufacturer’s operation or in the supply chain, can be difficult to overcome. A resilient supply chain considers underlying vulnerabilities in the chain. Common vulnerabilities include product complexity and supplier networks, transportation, and financial resiliency. Businesses need to consider the level of susceptibility to unforeseen events and look for ways to reduce their impact, offsetting that with appropriate business income coverage. The Agents’ Role Current and comprehensive business continuity plans are a manufacturer’s first line of defense when faced with an interruption. Agents can encourage clients to take advantage of carrier resources for the development of these plans, while encouraging clients to consider back-up supply chains to also help mitigate risks. Independent agents are well positioned to serve as valued advisers to their manufacturing clients as they look to navigate this complex market. Agents can work with their manufacturing clients to review their current business income protection and limits, educate them on the increased risks related to business income and call attention to potential downstream impacts. BRNext >