Newsletter Sign-up

Vice President
Aon, Baltimore
Deborah_Bates@ars.aon.com

Well Trained Over the Pond

Deborah Bates is proof that there's room for more than one railroad guru at Aon. Working under Jim Beardsley in the firm's Baltimore office, Bates has her own loyal following among major U.S. railroads. One of the contributing factors is her experience overseas. Prior to her eight years with Aon in Baltimore, Bates spent 14 years in the firm's London office.

One railroad client, raving about the work Bates is currently doing with his liability insurance, called her "the preeminent expert in Class 1 railroads in the U.S." Added this client, "She is extremely well connected in Europe. She has exceeded expectations, gotten us better coverage at lower costs. She is an excellent communicator with a high degree of trust all through the industry."

Being connected with London is key, especially when 2008 saw a number of new rail losses in both property and casualty. This caused many underwriters to question how much, if any, capacity to put into rail risks. For another railroad, Bates handles its casualty program, working principally with the Bermuda and London markets. This client said Bates is very good at developing new market capacity, which is "critical" to the company's casualty program.

In addition, the client said Bates is his claims watchdog. "She has been very helpful in getting claims resolved, making sure that the appropriate parties within the companies are responding to us," he said. "Most insurance companies do a terrible job with linking claims and policies. She makes sure they stay engaged with our claims resolution."

Managing Director
National Rail Practice, Aon, Baltimore
James_R_Beardsley@ars.aon.com

A Heavy Lifter

Aon can thank Jim Beardsley for its commanding share of the U.S. rail market. In 2008, the firm expanded its market share of U.S. freight railroad property/casualty to approximately 80 percent of global premiums placed for that class.

"Jim is the lead on our account, but he really shines in property," said one railroad risk manager. "Over the last few years he's been getting us increased limits and breadth of coverage, while at the same time a significant decrease in price."

Aside from day-to-day, year-to-year typical broker stuff, Beardsley continually thinks outside the box, this client said. "He recently brought a new idea to us on tax issues," the client said. "It hasn't panned out yet because it's still early in the process, but it's just one example of some really creative thinking Jim's done outside the normal risk management arena."

Beardsley can also accomplish something that few, if any, people could. Late last year, at Aon's Chicago office, he organized a roundtable of the Class 1 railroads' risk management leadership to discuss issues affecting the rail market. "It's pretty tough to get all the Class 1 railroads in a room together at the same time, but Jim was able to do it," said the client. "He brought in some good speakers. He's got an ongoing interest in helping the railroads."

According to another major railroad client who's dealt with his share of brokers, Beardsley responds the best no matter what situation arises. When capacity is scarce, Beardsley finds it. "Jim is the authority for railroad property casualty insurance in the nation," the client said. "In today's market, just keeping capacity and pricing in line is a noteworthy endeavor."

Senior Vice President
Wells Fargo Insurance Services, Redwood City, Calif.
sandyo@abdi.com

Competing With the Big Boys

In December 2007, the insurance firm that Sandy Osgood built from the ground up 20 years ago, Technology Insurance Services, was acquired by ABD/Wells Fargo Insurance Services. It seems the change has done her good. Not only has she retained long-term clients, but in 2008 she's nabbed some major new accounts too.

One client of Osgood's, a risk manager for a public transit company, has been impressed with her specialization in the public transportation sector for a couple decades and has been even more pleased with his broker since she joined Wells Fargo.

"She always has been able to compete," he said. "Marsh made a big run with us recently and they couldn't compete with her in terms of pricing and coverages, and there's no way we'd get the level of service if we went with the bigger firm. If she left, I think I'd just quit."

Another client in the public rail sector found Osgood stood out to a committee that evaluated her among other brokers during a recent bid. "They loved her," he said. "She was very articulate. She was the only one who talked about us and understood who we are and how that relates with marketing us to the insurance markets."

Recently, the risk manager said Osgood has helped his company's legal department develop an insurance handbook that the company's contracts and procurement employees use. As the company has started moving toward electrification of its railroad, he said, Osgood has been involved with the engineering department to determine what types of coverage would be needed.

Senior Vice President
BB&T, San Diego
Mshahri@BBandT.com

Hail this Broker

It may be a small niche within the transportation industry, but taxi companies do not have small risks. Masoud Shahri is recognized as the endorsed insurance broker for the Taxicab, Limousine & Paratransit Association, a trade group of 1,100 companies spanning the taxi, limo, airport shuttle, and paratransit industries.

One taxi client said Shahri is completely in synch with his industry specialty. Shahri attends taxi conventions on the state, national and international levels, learning everything he can about topics from computerized dispatching to marketing. He's become so highly regarded in the industry, that he often speaks at sessions to educate attendees on insurance issues.

Shahri is also welcomed by taxi companies as someone who is attuned to their unique cultural distinctions. "He was born in Iran and eventually wound up in Kansas going to school," the client said. "Most cab drivers throughout the country are third world. Masoud is from there so he's able to understand them and speak to them about insurance."

One insurance issue Shahri has helped the client with recently is his D&O program, a necessity when it comes to working with independent contractors. Shahri's tactic is to bring the insurance carrier to the client to see how the business is run and to meet management.

"He has brought me more insurance companies that I never knew would be involved in writing this business," said the client. "I can't tell you someone who's switched away from him. If he bids something and doesn't win, he doesn't get upset. Based on his reputation, he'll eventually win."

Managing Director
Marsh, Wilmington, Del.
thomas.r.tray@marsh.com

Trustworthy to a Tee

For one client, a risk manager at a privately owned trucking company, Tray sets himself apart by making the company's ownership completely comfortable. "The neat thing about that is trust," said the client. "We really trust him."

This particular company relies heavily on independent contractors, drivers gone months at a time with a truck worth nearly $300,000. "Independent contractors are one of Tom's particular strengths," said the client. "When the price of fuel was doubling overnight, a lot of these operators were panicking. He was able to provide us some service offerings to ease their mind, savings on healthcare, tires and fuel. These guys never had these things before. It made them feel that we're in it for the long haul."

The changing legal environment related to independent contractors--are they employees or are they truly independent?--is important to keep an eye on. Tray helps the client stay informed and keeps him "at arm's length" from his contractors. When it comes to renewal time, Tray has been successful in fulfilling his client's request to secure multiyear deals with the carriers. In fact, the client was so pleased with Tray's work that he introduced him to the company's parent company, which promptly hired him.

Last year, Tray suggested a strategy for loss reduction after analyzing the company's accident data and finding that 40 percent of its accidents involved backing up. Cameras were installed on trucks to solve the blind spot problem. The client expects that the cameras will pay for themselves and will reduce those types of accidents by between 80 and 90 percent.

Senior Vice President
Marsh, Dallas
diann.willis@marsh.com

A 'Willis' Broker Whose Heart's With Marsh

When a client seems to have an unusually close relationship with their broker, it's probably because the broker's kept the company afloat during rough losses. Take one of Diann Willis' clients at a regional rail authority. "If she were to leave (Marsh), I probably wouldn't be able to handle it emotionally," the client said.

The commuter railroad experienced a wreck in 2005, and Willis has continued dealing with the challenge of distributing information to the 10 insurance carriers that covered the client's railroad liability program at the time. When renewal time came up six months after the accident, Willis was able to negotiate a three-year contract. When that contract was up in July 2008, she negotiated an additional year at a lower premium. A few months later, the commuter rail experienced a major collision that killed 25 people.

The client said during recent talks with underwriters, there has been "no indication that they are going to bail on us," something he attributes to Willis' rapport with all the players in the rail industry, domestic and international. She's taken the client on trips overseas during which he's been able to develop personal relationships with the underwriters.

"Her dedication to us is extraordinary," he said. "I know this is what brokers do, but this is different. You don't find this every day." Speaking of extraordinary, Willis helped the client's wife find a dentist when she experienced a tooth problem while accompanying him on an underwriting junket in Europe. On the flight home, he and his wife discovered they had been upgraded to first class, a gift from Willis. "She's the sweetest thing on the planet," he said.