Risk And Insurance - Power Broker®

Global

2009 Power Broker^® Winners

Michael P. Dellova

Executive Vice President
Willis HRH, New York

The Service Custom

There is probably no such thing as a simple global insurance program, especially for large clients with facilities throughout the world. Historically, many of these clients have treated these kinds of programs on a case-by-case, facility-by-facility basis with each location responsible for working with a local broker who placed the insurance. Dellova faced this issue with a major company that had its operating units spread throughout the globe, in 15 countries.

A new, comprehensive international casualty program had to guarantee that "each operating unit would match or exceed both in terms and conditions and in lower premium costs" the current policies, explained the risk manager.

Dellova and the risk manager went on a "road show" where they met with the operating units to discuss their needs and expectations, the risk manager said. Typically, the operating units were concerned that some kind of new "generic" global program would not meet the specific needs of locations in Europe, Asia, Latin American and the Middle East.

To sell the program, Dellova set up meetings with underwriters. The result: The program was in place ahead of schedule without any objection from the operating units.

"We could not rely on a prepackaged program. Michael's ability to listen to our needs and objectives and work towards a customized solution was critical to our success," said the risk manager. Even better, the overall program reduced the total cost of risk for the client by 68 percent with improved coverage.

Clyde K. Ebanks

Chief Operating Officer, National Client Director, Aon Global Client Network
Aon, Chicago
clyde_ebanks@ars.aon.com

Take this Broker to the Bank

Clyde Ebanks has a regular cheering section out there among risk managers. "He's a diligent practitioner," said one risk manager. "He's great because he has a strategic focus and tries to understand the client's strategy rather than just trying to get a commission off a placement."

This past year Ebanks helped the client get a European Union business auto policy, rather than have to negotiate a dozen or more policies in various European countries. "He helped us solve the European tax issues, get consolidated loss information and assisted us with incorporating it into our captive."

Ebanks also help the risk manager with the company's franchisees. "We sell insurance through our captive to our franchisees and he and Aon were a huge help with us wading through the European regulatory issues."

Another risk manager commended Ebanks for his knowledge of global placements and, the risk manager added, he knows "all the internal Aon contacts in almost all the countries." That helps them to get to the right person quickly. "Clyde stands out as the top broker for global services," the risk manager said.

Ebanks during the past year also developed programs for global sourcing that involved new concepts, new coverage and new insurance programs. In addition, a number of his clients are looking at alternative risk transfer options for their international supplier programs.

Jim Gervang

Senior Vice President, International Risk Services
Wells Fargo Insurance Services
Redwood City, Calif.
jwg@abdi.com

A Global Localist, and Local Globalist

Usually when thinking about global brokers, the big issues revolve around the complexity of global insurance coverage from one country to another. Rarely, however, have we seen a broker who looks at environmental health and safety on a global basis. That's not to say that Gervang isn't adept at global insurance placement. But looking at how to reduce the frequency and severity of global work injury exposures isn't as common a focus for a global broker.

"This is an emerging problem," said the risk manager, and few people know what to do about it. "We have a global safety person, but we're all breaking new ground here." Gervang did a country-by-country analysis of worker injury coverage requirements. Then he developed a corporately controlled and managed injury coverage program that complied with the local work injury laws and regulations.

Many countries lack a workers' compensation program comparable to that of the United States, although these countries frequently have national health insurance. But, said the risk manager, the focus there isn't always on getting the workers back to work. Unlike in the United States, where separate, stand-alone workers' comp policies are common, in other countries injury and employee liability coverage is an extension of a general liability policy.

Gervang, said the risk manager, has "profoundly immersed himself in the local requirements and regulations, the laws and the politics" of the countries where the risk manager's employer has locations.

Fabrice Lebourgeois

Managing Director
Chemical Industry Practice Leader
Marsh, Philadelphia
Fabrice.lebourgeois@marsh.com

The Vital Element

A global broker faces a variety of challenges, especially the complicated mechanics of global insurance programs.

"With an international program, the ability to bridge cultural differences is critical," said one chemical company risk manager. LeBourgeois' analysis of the client's excess program looked at the true cost of risk at different levels of the program. That enabled the company to restructure its coverage, bring on a new carrier that had dropped the company after Sept. 11, 2001, and substantially lower the costs of the program to the client.

"During the past 10 years, Fabrice has nurtured our relationships to the point where we have seen exceptional progress this past year. He's truly the best."

Another client pointed to an excess casualty benchmarking database based on information from 30 large, global chemical clients. "I call that development an excellent example of Fabrice's customer service--offering us an extremely good tool that we can use in our analysis. That's value added."

His work, with another large client, increased the size of the relationship between Marsh and the global chemical company, adding the property account to the existing casualty business. "He manages the chemical practice, but he's readily available when we need his special touch," said another risk manager.

A native of France, Lebourgeois is a former Power Broker^TM in the chemical industry category.

Lee Lindsay

Senior Vice President
International Products Advisor
Aon, Denver
lee_lindsay@ars.aon.com

Always One Step Beyond

When a risk manager whose company only manufacturers its products outside the United States, in dozens a facilities around the world, tells you that this is the broker that deserves recognition, you listen.

"The whole team at Aon deserves recognition, but Lee Lindsay does a superhuman effort on our directors' and officers' program," the risk manager said. Lee handles a variety of accounts in different industries ranging from energy companies to technology companies.

On the D&O front, she developed a database of 122 countries and D&O indemnification issues. Some countries don't allow indemnification; some allow partial indemnification and another group treat indemnification similar to the United States. Indeed, it's often hard to develop effective global programs because the laws, rules and regulations vary so much.

And when a claim is filed, there are often differing legal complications depending upon the jurisdictions. She tracks D&O claims globally on a daily basis looking at industry, country, region, status and whether or not the claim was regulatory, civil or criminal in its origin.

Here efforts in providing almost real time, cutting edge information about more than 100 countries is unique and exceptionally valuable in developing and placing a global insurance program, the risk manager said.

Armed with this kind of information, the client and broker can augment a U.S. master D&O global program with specifics geared to the issues in one country.

Geoffrey Mills

Managing Director, Crisis Management Division
Aon, Somerset, N.J.
geoff_mills@aon.com

The One Broker Even the Lawyers Follow

Both Geoffrey Mills and his colleague William Harrison helped to form Aon's Crisis Management Practice in 1999. It's hard to choose between both of them this year, but Mills get the nod. The crisis management problem continues to be an important and costly risk for food and beverage companies, especially with supply chains that bring in product from overseas. Just remember the peanut butter recalls and contamination now in the headlines.

Crisis management coverage and planning, especially as related to global supply chain problems, affects large companies with suppliers and customers in dozens of countries throughout the world. This past year, Mills and Harrison developed a product contamination or product recall coverage option that is more broad-based than most policies offered by insurers.

"Geoff came in here last year with an unusual proposal: a new program that took of number of fragmented policies and consolidate them into one." Mills worked with the carrier and improved the coverage. "I can't tell you how valuable his advice has been. When one of our lawyers went over the new policy, he didn't understand some of the particulars. Geoff clarified those points. Our lawyer now responds, 'If Geoff says it's this way, then it is.' "

Another similar product was designed for restaurants last year protecting them against, among other risks, damage to reputation from contaminations by suppliers, packers or even criminal acts.