National Underwriter - February 13, 2012

Energy, transportation, D&O, life sciences and cyber are all seen as growth areas; r
After a rough, cat-filled 2011, how do commercial-lines carriers feel about 2012? NU asked several key players for their perspective on which lines offer new opportunities; how they will expand their distribution channels; where carriers will be investing; and how they will handle
relationships with risk managers as the market hardens and rates increase for the first time in years.

SCOTT HIGGINS President Travelers Commercial Accounts

2012 WILL BE A challenging marketplace. The opportunities will be for those insurance carriers that have the financial strength to invest in the right products and services despite the challenges facing the industry; and for those that can demonstrate high-quality, price-effective services that are designed to meet or exceed our agents’ and customers’ unique and evolving needs.

Travelers plans to set the pace in 2012. Our investments will focus on providing our agents with product offerings for the many diverse industries that make up our economy. We recognize that our customers expect their trading partners to be experts in each of their industries—from coverage that’s tailored to the unique needs of their businesses to dedicated claims and risk-control professionals committed to delivering the very best customer experience.

ANDREW UNDERWOOD
Head of Specialty Division
Hiscox USA
RISKS TO BUSINESSES in the U.S. such as cyber security, social
media and legislative change continue to evolve on top of the more
familiar, but not forgotten, threats to people and property. We’re ad-
dressing these emerging risks with dedicated industry forms and
packaged products to meet buyer demand—the opportunities in

DAVE OBENAUER

President, Crump Insurance Services

During 2011, we started seeing a real flight o quality in terms of the intermediaries that clients choose to work with. Most clients are looking to develop deeper relationships with fewer intermediaries in order to increase the quality of service, create more efficiencies in the workplace and find growth opportunities. We continue to leverage our scale as we work with carriers and our customers.

Secondly, retail brokers see the advantages of providing coverage to small businesses. it’s good business, and the opportunities for organic growth are significant. But it can be labor-intensive. as an industry, we must develop processes using new technologies that enable efficient processing of small business.

We see growth opportunities in markets and industries such as health care, life sciences, energy and cyber liability.

one challenge for 2012 is the continuing management of client expectations in a transitioning market. underwriters are increasingly looking to increase rates and restrict coverage at a time when buyers continue to face budget/cost pressures. as the intermediary, we need to continue to focus on bringing the best options to the client in a changing marketplace.