Speciality
Case Study
Specialty Lines Insurance
During 2004-2008, John created a new specialty lines insurance carrier for a Lloyds of London syndicate. This is a property carrier which engages in business in all 50 US states. His work resulted in the hiring and training of insurance professionals plus the implementation of IT, systems and products. In addition, John increased sales by appointing wholesale and retail distributors. The result was that this carrier was profitable within one year … a satisfactory state that continued throughout John’s four year tenure and beyond. The resulting GWP was $35M per year with an adjusted loss ratio under 15%.
Consulting Area: Executive Sponsor and Project Lead – John was hired to set up a US Specialty Lines Property & Casualty Insurance Company for a Lloyds of London syndicate.
During John’s four year tenure, he was the the executive sponsor and project leader, with responsibilities which included:
- Building a new specialty lines property insurance company for the U.S. domestic market;
- Creating and implementing all product design and development;
- Appointing all distributors including regional and national wholesale brokerages and retail agencies;
- Building an automated policy rating engine;
- Hiring and training underwriters, policy fulfillment support personnel and outsourcing key duties such as claims adjusting and catastrophe response services;
- Building an automated accounting application with the add-on of building and electronic bridge to the Corporate Lloyds general ledgers system (i.e. Exchanging).
This business unit expanded to cover complete market penetration (US 50 states and territories) in under four years. The business returned an underwriting profit in year one and remained profitable every year during John’s tenure (2004-2008).
This profitability is noteworthy because it continued throughout 2004-2005, where the company and clients endured 8 hurricanes strikes over the southeastern US. Adjusted loss ratios performed under 15% of net written premium throughout John’s tenure. As well, the portfolio grew to over $35M USD in GWP and included a product suite of 12 unique property and casualty coverages.
