Simon Glairy is a recognized expert in the fields of insurance and Insurtech, known for his deep understanding of risk management and AI-driven risk assessment. In this interview, Simon shares his insights on navigating today’s challenging market, emphasizing the importance of understanding both the technical and relational aspects of wholesale insurance brokerage.
Can you describe your approach to handling hard-to-place risks in today’s tough market?
Handling hard-to-place risks requires a creative strategy and deep knowledge of the market. It starts with understanding the nuances of the risk and the needs of the client. From there, it’s about forming multi-layered towers and finding places where the risk can be distributed without compromising coverage. Collaboration with knowledgeable underwriters who understand the intricacies of these risks is also crucial. This approach isn’t just about saying yes to every risk but saying yes with precision and finding tailored solutions that meet client needs.
How has increasing demand for specialized insurance solutions affected the wholesale distribution market?
The demand has significantly shaped the landscape, pushing brokers to specialize and deepen their knowledge in specific areas. This trend has led to a more competitive market where brokers must go beyond standard solutions and offer highly customized policies. As a result, we’re seeing more innovative practices and greater adaptability in the industry, all driven by the need to meet complex client demands effectively.
Why do you believe it’s important for brokers to think like underwriters?
Thinking like an underwriter allows brokers to anticipate potential objections and challenges. It’s about understanding the severity and the catastrophe scenarios that underwriters are pricing for. When brokers comprehend the risks as underwriters do, they can craft proposals that address these concerns preemptively. This approach not only makes the pitch stronger but also builds trust with underwriters, facilitating smoother deal closures.
Can you give an example of how thinking like an underwriter has helped you close a difficult deal?
A vivid example was when I was working on a high-risk auto liability account. By understanding the underwriting concerns about accident frequency and severity in certain regions, we were able to present data showing effective risk mitigation measures the client had implemented. This included detailed safety protocols and real-time monitoring systems, which directly addressed the underwriters’ fears. By aligning our pitch with their concerns, we succeeded in securing the coverage.
What are some common challenges you anticipate when pitching an account?
One major challenge is conveying the value and necessity of coverage to both clients and underwriters, especially when dealing with non-standard risks. Clients often need help understanding why certain coverages are necessary or why premiums might be higher. On the other hand, underwriters must be convinced that the risk is manageable and worth taking. Legal variations and different compliance requirements across states or countries can also make pitching more complex, requiring thorough preparation and adaptability.
How do legal variations impact the process of pitching an account?
Legal variations can significantly complicate the process. Different regions have unique regulations that affect how risks are assessed and priced. For instance, construction laws may differ drastically from one state to another, influencing the underwriters’ risk assessment. Brokers must be well-versed in these legalities to ensure that submissions meet all regulatory requirements, thereby enhancing the likelihood of approval.
How do relationships with underwriters contribute to a broker’s success?
Strong relationships with underwriters are foundational to a broker’s success. Trust and mutual respect can make a significant difference when placing difficult risks. Underwriters are more likely to consider and approve submissions from brokers they trust and who have consistently provided well-documented, accurate risk assessments. It’s also about knowing which underwriters are flexible and willing to think outside the box, which can be crucial in today’s challenging market.
What qualities do the best underwriters possess, in your opinion?
The best underwriters are those who balance analytical rigor with flexibility. They say, “Yes, but…,” meaning they are open to considering risks if certain conditions are met or mitigations are in place. They understand the nuances of different risks and are willing to work with brokers to find solutions. Also, clear communication and a deep understanding of the market are key traits that help them succeed.
Why is it important to partner with underwriters who understand nuance?
Nuance is critical because no two risks are exactly the same. Underwriters who can appreciate the subtle differences in risks are better equipped to assess and price them accurately. They see beyond the numbers and understand the real-world implications of those risks, allowing for more tailored and appropriate coverage solutions. This depth of understanding helps in building more effective and sustainable risk management strategies.
How has placing lines like auto liability and active shooter coverage become more difficult?
These lines have become more difficult due to heightened risk factors and increased claims. For auto liability, factors like higher accident rates and costly repairs contribute to tighter capacity and increased premiums. Active shooter coverage has its own challenges due to the unpredictable and catastrophic nature of such events. In both cases, finding carriers willing to take on these risks requires creativity, such as layering coverages and building towers, to meet the client’s needs without compromising the quality of coverage.
Can you explain what you mean by building multi-layered towers for risk placement?
Building multi-layered towers involves structuring the coverage across multiple carriers at different levels or layers. This approach helps manage high-risk accounts by spreading the exposure. For example, the first layer might cover initial losses up to a certain amount, while subsequent layers provide additional coverage beyond that limit. This strategy ensures comprehensive coverage while mitigating the risk each carrier has to assume, making it more viable for them to participate.
How do you ensure coverage is not compromised when placing risk across multiple carriers?
Coverage integrity is maintained by meticulously coordinating the terms and conditions across all layers. It’s essential to ensure that there are no gaps or overlaps in the coverage. This includes thorough communication with all involved carriers and a clear understanding of each layer’s responsibilities. Regular reviews and adjustments may be necessary to adapt to any changes in risk profiles or market conditions, maintaining seamless and comprehensive protection throughout.
What strategies do you use to address tight capacity in the market?
To address tight capacity, diversification is key. This means tapping into different markets and insurers to spread the risk. Additionally, demonstrating strong risk management measures and providing detailed, compelling data can persuade carriers to allocate capacity to more challenging accounts. Innovative solutions like alternative risk transfer mechanisms and leveraging reinsurance markets can also play a role in overcoming capacity constraints.
How does a problem-solving mindset help you navigate market volatility?
A problem-solving mindset is essential in navigating market volatility as it encourages a proactive approach. Instead of seeing challenges as insurmountable obstacles, this mindset frames them as opportunities to find innovative solutions. It involves continuous learning and adapting, thinking creatively to address issues, and being persistent in finding the best outcomes for clients despite market conditions.
Why do you find complexity appealing when dealing with difficult accounts?
Complexity is appealing because it presents a challenge that requires deep thinking and problem-solving skills. Each complex account is like a unique puzzle that, when solved, offers immense satisfaction and professional growth. It also differentiates you in the market, as not everyone is willing to tackle these difficult accounts. Successfully managing them showcases your expertise and can lead to long-lasting client relationships and trust.
What similarities do you notice in different accounts that help you piece together solutions?
Many accounts, regardless of their specifics, share common elements like regulatory requirements, client concerns, and risk mitigation strategies. Recognizing these similarities helps in developing a framework that can be adapted to different situations. For example, effective communication, thorough research, and a detailed understanding of client needs are universal strategies that can be fine-tuned to fit various accounts.
How does prior experience influence your approach to solving complex problems?
Prior experience is invaluable because it builds a reservoir of knowledge and skills that can be applied to new challenges. Familiarity with similar situations helps in anticipating potential issues and devising effective strategies quickly. It also instills confidence in tackling new problems, knowing that past experiences have equipped you with the necessary tools and perspectives to succeed.
Why do you believe building a book cannot be done alone?
Building a book of business is inherently collaborative. No one person has all the answers, and different perspectives are crucial for comprehensive problem-solving. Team members bring unique skills, insights, and experiences that contribute to more robust and diverse solutions. Collaboration also ensures that there is support and backup, which is essential for sustained success and handling large volumes of work efficiently.
What role does humility play in being a successful team leader?
Humility is vital as it fosters a culture of openness and collaboration. A humble leader recognizes their limitations and values the contributions of others. This attitude encourages team members to share their ideas and take initiative, knowing that their input is valued. It also helps in building trust and respect, which are foundational for any effective team.
How does recognizing the need for a supportive team contribute to long-term success?
Acknowledging that you need a supportive team ensures that all facets of the business are covered, and it prevents burnout. It allows for the delegation of tasks, leveraging each team member’s strengths and maintaining high standards of work. A supportive team promotes innovation, resilience, and adaptability, which are essential for long-term success in a dynamic market.
Can you summarize your formula for sustained success in the insurance market?
Sustained success in the insurance market hinges on a few key principles: understanding your markets thoroughly, specializing with intent, pitching risk with clarity, and surrounding yourself with a capable, supportive team. Staying well-informed about market trends and regulatory changes is crucial. Specialization allows you to offer expert solutions, while clarity in communication builds trust with clients and underwriters. Finally, a strong team provides the collaborative support necessary to tackle complex challenges effectively.
How do you ensure you understand your markets thoroughly?
Understanding markets thoroughly involves continuous education and staying updated with industry trends and regulatory developments. Regularly engaging with market reports, attending industry conferences, and connecting with peers and mentors provide valuable insights. Direct feedback from clients and underwriters also helps in gauging market dynamics. This proactive approach ensures that you remain knowledgeable and can anticipate changes that may affect your business.
Why is it important to specialize with intent in the insurance industry?
Specializing with intent means focusing on specific niches where you can develop deeper expertise and offer unique value. It distinguishes you from generalists who may not have the same level of detailed knowledge. Clients prefer working with specialists who understand their specific needs and can provide tailored solutions. Intentional specialization also enables more effective marketing and branding, positioning you as a go-to expert in your chosen area.
How do you pitch risk with clarity to potential clients and underwriters?
Pitching risk with clarity involves providing well-organized, comprehensive information that addresses key concerns. This includes explaining the risk in simple terms, detailing the mitigation strategies in place, and showing how these measures align with underwriting guidelines. Clear communication, supported by data and case studies, helps in making a strong, persuasive case. Anticipating questions and proactively addressing them also contributes to a clear, confident pitch.
What qualities do you look for in people who can help you scale your business?
Key qualities include expertise, adaptability, and strong problem-solving skills. I also value good communication abilities and a collaborative mindset. The ability to think creatively and stay motivated in challenges is essential. Additionally, integrity and reliability are crucial, as they ensure trust and consistency in our operations. Having a team that embodies these qualities allows us to tackle complex risks effectively and scale the business sustainably.
Do you have any advice for our readers?
My advice would be to embrace complexity and continuous learning. The insurance market is ever-evolving, and staying ahead requires a commitment to understanding emerging trends and challenges deeply. Build strong relationships and don’t shy away from difficult risks—they often present the biggest opportunities. Lastly, recognize the value of collaboration and teamwork in achieving long-term success.
