Commercial Insurance: A Fulfilling Career Choice

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By: Jeffery Foster, Client Manager, Commercial Insurance Associates, LLC

I’ve always envied individuals who are passionate about what they do for a living. I think I can safely say that most people don’t find their life’s purpose through their work or craft. I, like many others, work to live and not the other way around. However, though my soul doesn’t sing with unfettered joy every time I open my email in the morning, I think I’ve found something that’s pretty good in its own right: an engaging, fulfilling and opportunity laden career that has meaning.

In my time working for commercial insurance agencies, I have insured or consulted small, medium and large businesses from almost every conceivable industry. From video game incubators to recycling operations, it would be difficult for me to describe the sheer diversity of what I have encountered. The word “engaging” feels like an understatement. The challenges presented when encountering a new risk and the problem solving required to provide solutions for the client, make for an intellectually stimulating career. Trust me, I know that engaging and stimulating are the last words most people think of when insurance comes to mind, but you would be surprised. You see, I never knew exactly what I wanted to do for a living. I was always interested in so many things that it seemed impossible to make my mind up. The beauty of what I do is that I feel like I never had to settle on any one thing. Working with such a diverse range of clients has provided me the opportunity to meet some of the most fascinating individuals and learn about the inner workings of businesses from those passionate about their product.  

Though I enjoy the engaging aspects of my career, the fulfillment I derive from it comes from the core of the entire industry’s purpose: we protect our clients when losses occur. Some days are harder than others and if there is a natural disaster that affects many of your clients, you will pull long days making sure they are taken care of. But think about that for a second. We are one of the first calls a business owner makes when his or her life’s work is seemingly destroyed. I have been called before the insured calls their spouse. Getting contacted before they reach out to the authorities is a common occurrence as well. Insurance is not non-profit work, but it is about as close as you can get to working for one without doing so. How can you not feel fulfilment and meaning from a career like this? Even without losses occurring, every single day I must issue proofs of insurance for my clients to satisfy contractual insurance requirements. They cannot get paid or begin working on certain projects until I have done my job. I never wake up and feel like my job doesn’t matter. I am never worried that my industry won’t be needed in times of a recession. My work isn’t fleeting. That means something to me.

I have been working in insurance five years. Five. Years. In only five years, I have experienced enough to be able to share stores most outside of insurance would scarcely believe and this says less about my abilities and more about the insurance industry. The opportunities for those who want to dive-in to this world and work hard are immense. I have never had difficulty finding job postings and when my wife relocated from DC to Nashville for her dream job, I was able to find a position at a great organization within two weeks. I may be relatively young and do not have the most professional experience, but it is hard for me to think of another industry that allows for such mobility.

As I mentioned previously, insurance is not my life’s calling. If I won the lottery tomorrow, I would happily retire. But I like my career. When people ask me what I do for a living, I answer the question with pride and am more than willing to elaborate. I find most people don’t like that question being asked of them. Thanks to insurance, I am not one of them.

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Untitled Leadership: Being a Leader Regardless of Your Role

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By: Ben Rosser, Casualty Claims Examiner, MMG Insurance

One of the greatest myths in most professional industries is the assumption that leadership comes from a job title or position of power. In reality, many of the strongest leaders can be found with no direct reports and no supervisorial duties. Genuine, authentic leaders cannot be bred through promotions or transfers but rather they exist through focused drive and earned trust from their peers.

The most effective and renowned business leaders in the world all started somewhere far below their current paygrade. Far too often young professionals lose sight of the journey required to get to where they want to go and can often become discouraged early in their careers when they become distracted or get tunnel vision on their current role or title.

It is easy to look ahead at that next step, or at that dream promotion and become self-conscious regarding the pace of your career.   However, genuine and effective leaders do not need the validation of a job title to succeed in their current roles.

Credible leaders set themselves apart by not only succeeding in what they do but by helping their peers around them share in that success. Having the ability to practice empathy and humility within your team earns their respect and the trust required to succeed.  When working together to achieve a common goal remember to not only lend your strengths to the team, but also learn to receive the strengths from the team.  This is important because the inability to recognize your own shortcomings and to accept help from others can reduce trust and slow down progress.

In addition to trust, earning respect from your peers goes a long way in becoming a profound leader. Great leaders do not need to become a subject-matter expert in a specific area to earn the respect of their peers. Decisive actions, effective conflict resolution skills, and balancing modesty with confidence are all great practiced traits in earning respect.

In times of uncertainty, people turn to those they trust and respect for guidance on how to conquer what’s at hand.  Leaders may not always have the answers, but they will certainly work diligently towards finding one.

Success is a renewable outcome when effectively handled. One person alone cannot sustain ongoing success but when a collective group works together and is fueled by efficacious leadership at all levels, anything can be achieved.  Whether it is providing a calming presence in trying times or simply making an extra effort to acknowledge a peer’s job well done, there are many ways to show leadership in any role. Remember that regardless of roles, titles, or paygrades, leaders are important at every level.

In closing, whether you are nearing your peak or just beginning your occupational climb, establish effective and productive behaviors to carry along the way.  Stay trustworthy, respectful, focused, empathetic, curious, and driven. Always be the leader that you would be willing to follow.

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Important Lessons Learned – Job vs Career

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By: Bert Dizon, Senior Account Manager, Gallagher Bassett

Like many in the insurance industry, I got my first job in insurance at a young age and did not know what to expect.  I was hired as an adjuster trainee for an insurance carrier to work property damage claims on a personal lines auto desk with very little working knowledge of the industry and little to no personal or professional expectations.  At that age, it was a job. 

Having graduated from college with a Marketing and Management degree and a strong desire to get into the entertainment industry, I figured this would just be a means to makes some money to survive life after college.  I was fairly certain that claims and insurance was not an industry that I would enjoy long term.  Almost 19 years later, I am still in the insurance industry enjoying my career.  It is no longer just a job I thought I was good at, but it has truly become a career I enjoy.  But why and how did that paradigm shift come to pass?

Proactivity vs. Passivity

When I first took on the role of a claims adjuster, I looked at it as a stressful, thankless and tedious function.  It’s very easy to get in the habit of seeing the role as a virtual punching bag because insureds and claimants are yelling at you for taking too long to resolve their claim.  In addition, you are getting pressure from your management to work harder and close your files.  Finding serenity in between a rock and a hard place seems to be impossible.   Like most, I started out trying to figure out the best time management practices to alleviate stress.  I tried letting my phone go to voicemail and checking and returning my message in a set time, working all my new losses at the end of the day, or giving myself the first couple of hours of my day to work diary and mail.  This involved hard starts and stops with the hopes that I would be organized enough to get everything done.  What I found was: That was not the answer.  That was a passive way of handling my desk, which allowed me to fall behind and increased my stress level at every turn. 

I realized if I worked proactively, the management of my desk became easier as time passed.  It was hard to make changes, but simple things like answering my phone every time it rang or returning a message as soon as I got it, and working a new loss as soon as I received it, got me to a point where I felt like I was getting ahead and not falling behind.  As time when on, I found that the number of phone calls I was getting began to taper down and there were fewer fires to put out.  The pressure from both sides became less as well, because management was not getting escalation calls from insureds and claimants. Eventually my closing ratios went up because I was being more proactive at resolving my caseload.   

In short, my lesson learned was that completing more small tasks and being proactive allowed me more time in my day to take on more and more.  Eventually I began to have the time capacity to take complex cases and projects from management.  It helped me to find a way to manage my desk in a less stressful way and make the day-to-day work less stressful, as well as adding value to my organization. 

Do not doubt your abilities

It is extremely easy to believe and become comfortable with the belief that your experience as an auto liability adjuster, for example, is just that, nothing more or nothing less.  Also, that handling a particular type of claim, property or auto, is all that is out there.  Sure, there are levels, trainee, adjuster, lead, supervisor, etc, but “once an auto adjuster, always an auto adjuster.”  That thought is simply  not true.  There are insurance claims out there for all different types of products, services, and industries. Every niche in our world is insurable.  Starting out in the carrier world, I did not stop to think about what else was out there, other than what the carrier I worked for had to offer.  It was not until I entered into the Third Party Administrator (TPA) world, that I discovered that there were so many interesting types of policies for claims professionals to handle.  When I discovered the world of professional liability claims, construction claims, livery claims, cyber claims, cannabis claims, etc., I realized how vast and interesting claims handling could be. 

When I began asking management to allow me to handle claims outside of what I traditionally knew, I was asked if I could handle a certain type of claim.  I discovered that handling claims, regardless of the type of policy, was mostly universal. 

Understanding how to investigate any type of claim comes with experience and guidance, of course, simply because the laws, statutes, and players may be different.  However, the key to it all is being able to understand the policy that coverage is based on.

This may sound daunting, but I have found that most policies are written with similar language and have the same basic format that make handling an auto/property claim or general liability claim, no more complicated than a cyber or cannabis claim.

The lesson learned here is that, when you narrow your focus, doubt your ability, or maintain the perspective that you cannot, you limit yourself.  No one in our industry started out as an expert on his or her first day.  In addition, there is no point in time when anyone can say they have learned all that they can.  Everyday a professional in ours or any industry needs to seek to learn more and do more to have their career flourish.  Moreover, it takes trial and error and the desire to learn to grow, but certain basic foundations and core functions, like understanding policy language, will facilitate that growth.

“Don’t let perfection, be the enemy of good” 

To sum this up, it is important, to be able to be your best and truly enjoy this, or frankly any career, you must be proactive, thirsty for knowledge, and believe in yourself.  You must be willing to learn and actively seek to expand your understanding of the way the industry works. You need to build a strong industry knowledge foundation for yourself in order to build your career.  My industry mentor told me on many occasions, “don’t let perfection, be the enemy of good.”  No one in their career should ever expect to be perfect. Frankly, perfection is a subjective and a mostly unattainable standard. 

The last thing that is important to remember is that years of experience, while notably a good and recognizable thing, is not the equivalent of expertise.  Your ability and capacity to learn and the courage to put your best foot forward to be better at what you do is not strictly reliant on time.  Do not let age or years in the industry be a deterrent to the goals you want to achieve and the impact you want to make on your career. 

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10,000+ claims executives gather for Connected Claims USA Virtual by Insurance Nexus and Reuters Events

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FOR IMMEDIATE RELEASE                                               

Contact: Mariana Dumont

               Insurance Nexus

Phone: +44 (0) 207 422 4369

Toll Free: 1 800 814 3459 Ext: 4369

Email: mariana.dumont@insurancenexus.com

Connected Claims USA has officially launched as the first fully virtual claims event and remains the world’s largest and most senior claims event (June 23-25, 2020).

As uncertainty becomes the new normal, it has never been more important for the insurance industry to pull together to support customers and claims handlers alike through this difficult time. Claims transformation is more urgently needed than ever before.

“It’s true that we’re in a period of disruption, but from disruption, I believe, can come transformation and growth. And that’s what I hope we do as colleagues, is lead through this and make this industry better” said Eric Brandt, EVP and Chief Claims Officer at Allstate. 

That is why Brandt and other executives will speak at Connected Claims USA Virtual, the largest ever gathering of claims executives, available free to the industry. “This is an opportunity for the entire industry to collaborate, inspire and lead” said Emma Sheard, General Manager of Insurance Nexus by Reuters Events.

Also confirmed to speak are Mike Fiato (Chief Claims Officer, Liberty Mutual), Bryant Vernon (Chief Claims Officer, Aviva Canada), Jeanette Ward (Chief Operating Officer, Texas Mutual), Evan Scarponi (Chief Claims Officer, Prudential) and more.

Register for free today

Connected Claims USA Virtual attendees will form the largest insurance claims community, taking part in a multitude of interactive online sessions, discussing and dissecting the issues at the heart of claims. Attendees will also be afforded a virtual networking suite, digital exhibition, tailored practical workshops and more – you can find out more and register on our website.

Mariana Dumont

Head of USA Operations

Insurance Nexus

Phone: +44 (0) 207 422 4369

Toll Free: 1 800 814 3459 Ext: 4369

Email: mariana.dumont@insurancenexus.com

Insurance Nexus is part of FC Business Intelligence Ltd. FC Business Intelligence Ltd is a registered company in England and Wales. Registered number 04388971, 7-9 Fashion Street, London, E1 6PX, UK

Insurance Nexus is the central hub for insurance executives. Through in-depth industry analysis, targeted research, niche events and quality content, we provide the industry with a platform to network, discuss, learn and shape the future of the insurance industry.

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COVID-19 Business Interruption: Back to the Basics

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By: John Lupfer, Assistant General Counsel, Suffolk

A. Don’t Forget the Insuring Agreement!

Insurance geeks all know that the first step in determining coverage under any policy is “getting past the insuring agreement.” Generally, if the claim does not meet the criteria of the first paragraph of the policy or endorsement, the analysis can cease. Overall insuring agreements begin with some variation of:

 Subject to all terms, conditions, limitation and exclusions of this policy, in the event of direct physical loss of or damage to insured property…

This type of analysis is paramount when it comes to COVID-19 business interruption claims.  Recently, I’ve seen much opining in articles and webinars on the interpretation of various exclusions and extensions of coverage relating to the words “pandemic,” “virus,” etc.  In the eagerness to discuss these sexy exclusions and extensions of coverage, the insuring agreement is skipped.  Specifically, whether there is “direct physical loss or damage to insured property.” As explained in the popular hornbook Couch on Insurance, “[T]he requirement that the loss be ‘physical,’ given the ordinary definition of that term, is widely held to exclude losses that are intangible or incorporeal, and, thereby to preclude any claim against the property insurer when the insured merely suffers a detrimental economic impact unaccompanied by a distinct, demonstrable, physical alteration of property.”  Whether COVID constitutes “direct physical loss or damage to insured property” is a muddy question.  An avalanche of cases filed nationwide are turning on this issue.

B. Is there “physical loss?”

One of the arguments for coverage being made in many court filings is that COVID-19 is making the place of business uninhabitable.  The rationale is that if a substance permeates a building without actually damaging it, but renders the building uninhabitable, the building may be considered to have sustained a physical loss. There is a line of cases supporting this theory.

In Port Authority of New York & New Jersey v. Affiliated FM Ins. Co., large quantities of asbestos were released into the air rendering the building uninhabitable.  The court found coverage.  Similarly, in Gregory Packaging v. Travelers Property Cas. Co. the court found coverage when a release of ammonia rendered the building uninhabitable.  In a third case, Widder v. Louisana Citizens Property Insurance Corporation, the court found that migrating lead dust rendered a person’s home uninhabitable and declared coverage.

This uninhabitable argument is far from a “slam dunk.”  COVID-19 claims can be distinguishable.  In the line of cases cited above, a substance was released within the building.  Following that logic, business owners must show COVID-19 was released into their place of business and is present making the building uninhabitable.  Given the nature of the virus and the ability to test for it, this is a major proof problem for insureds; one which may be insurmountable.  

Some plaintiffs are stretching the “uninhabitable argument” by claiming its governor’s shutdown order renders their place of business uninhabitable, thus falling under the gambit of coverage.  There is a dearth of case law supporting this argument.  In fact, there is a long line of cases cutting against it. 

In Roundabout Theatre Company., Inc. v. Cont’l Casualty Company. the court found no physical loss occurred when the City of New York shut down an area due to an accident thereby making a Broadway theatre inaccessible and forcing them to cancel shows.  Likewise, in Source Food Technology, Inc. v. U.S. Fidelity & Guaranty Company, the USDA closed the border of Canada to beef deportation after a cow tested positive for mad cow disease causing Source Food to lose its best client.  The court did not find coverage and opined, “[A]lthough Source Food’s beef product in the truck could not be transported to the United States due to the closing of the border to Canadian beef products, the beef product on the truck was not-as Source Foods concedes-physically contaminated or damaged in any manner.”

Anticipation is building for a court somewhere in the country to make a coverage determination for COVID-19 losses.  A court may invoke a policy exclusion or extension of coverage.  However, it is very possible that it may not “get past the insuring agreement.”

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