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Senior Vice President
Alliant Insurance Services, Newport Beach, Calif.

Combo Show: Less Premium, Less Exposure

For the Washington State Transit Insurance Pool Gordon DesCombes managed the difficult feat of reducing premium by about $150,000 while lowering the self-insured retention (SIR) from $4 million to $1 million, with corridor retention of $500,000 in the $1 million by $1 million layer. He also obtained a two-year program for the catastrophe limit excess of $4 million.

When a reinsurer for the CSAC Excess Insurance Authority decided to place themselves in voluntary runoff midway through a five-year aggregate stop loss reinsurance program, DesCombes had to find a new partner quickly.

The new program consisted of a three-year full risk transfer with a very low SIR that will ultimately save participants over $5.5 million when compared to the expiring structure.

"Gordon's creativity in blending, self-insurance, pooling and insurance products has been critical to our success," said Mike Fleming, CEO of the Excess Insurance Authority.

A municipal authority executive in a different state said he feared some significant rate hikes after his agency experienced adverse property losses. "But Gordon worked the markets and facilitated a couple of face-to-face underwriter visits to gather interest in our program," he said.

At the end of the day, the agency obtained a program renewal at a reduced rate while maintaining the SIR and aggregate at current levels. "It was a great outcome," he said.

Director of Public Entities
Aon, San Francisco

Good Deeds Deeb

Like most public sector brokers, William S. Deeb works with clients facing rapidly diminishing resources for any number of recession-related reasons. When one such client asked to see what could be done with her current pooled program Deeb knew he had to take an innovative and aggressive approach to the marketplace to achieve that Holy Grail of less premium for an equal amount of or more coverage.

Using local chamber of commerce and public service videos, Deeb presented the underwriters with exposure data that gave them comprehensive and detailed first-hand knowledge about the client and its specific exposures. One-on-one meetings between clients and underwriters helped instill in those carriers new to the risk the same comfort level that those long-time incumbents had conveyed for many years.

The result was a program with a lowered self-insured retention, dedicated and higher program limits, fewer exclusions and nearly $1 million in savings. Similar results for environmental and medical programs produced about $2.5 million in savings.

Colleen Fanciullo, director of personnel for the Alum Rock Union Elementary School District in San Jose, Calif., said that Deeb crafted property and casualty programs that have expanded coverage and limits, and also provided manuscripted coverage specific to the district.

In addition, she noted, the numerous trainings he has initiated helped reduced workers' compensation claims to 50 last year, down from 120 in 2008. Indemnity claims also fell, to just 20 last year from 80 in 2008, said Fanciullo.

Senior Vice President
Roach Howard Smith & Barton, Dallas

Hurricane Hedman

Dot Hedman has dedicated more than 27 years to understanding the unique needs of the public sector, gaining the expertise to become a strategic partner with her clients, enjoying a reputation of integrity and maintaining long-standing relationships within the industry.

One of Hedman's most significant accomplishments in 2009 involved a midsize city on the Texas coast, which hired her as broker and consultant for their insurance program. The city found it had inadequate coverage following Hurricane Ike in 2008. Knowing the assistance she gave to the Housing Authority of New Orleans before and after Hurricane Katrina, the risk manager asked Hedman to review their current coverage with a self-insurance pool in Texas and to make recommendations.

Hedman and her team determined that there was more than $7 million in uninsured property values. They then worked with the city to place flood coverage on several buildings, provide more adequate limits of insurance on some that already had flood coverage in place, and make an informed decision to self-insure the remaining properties.

While the city may have saved a few dollars by staying with pool coverage, its Ike losses convinced officials that the customized service that Hedman and her team provided will more than make the extra expense worthwhile in the long run. One area school district official with a long relationship with Hedman called her "an invaluable extension of our risk management team and always available with answers when we need them."

Area Senior Vice President
Arthur J. Gallagher, Aliso Viejo, Calif.

Where Little Cable Cars Present Unique Challenges

Raising Insurance Programs to New Levels San Francisco's famed cable cars are fun to ride and sing about. But insuring them, and the rest of the components of the nation's seventh largest transit system, made it a challenging year for John Chino, area senior vice president with Arthur J. Gallagher & Co.

Despite the fact that some 700,000 people use the San Francisco Municipal Transit Agency on a daily basis, the system was "bare" in terms of liability insurance.

Among the challenges of insuring SFMTA risk included the fact that underwriters had no basis for comparison for the first-time risk as the agency had never tapped the commercial insurance market for protection. In addition, the city charter required the agency board to approve all settlements, which tends to make carriers wary of protracted litigation.

Worst of all, perhaps, was that the agency would not release loss runs in deference to attorney-client privilege.

Most importantly, finding a carrier that the transit agency could work well with in this pioneering situation was crucial for the coverage that finally took effect on July 1, 2009, with a total limit of $25 million.

San Francisco Risk Manager Matt Hansen praised Chino for his "consistent and creative solutions" to the challenges of San Francisco. Thanks to Chino, Hansen added, the city and county of San Francisco have raised their risk management programs to a new level and have pioneered innovations in the field.

President and CEO
Haywood and Fleming Associates, Gary, Ind.

Gary's Unofficial Risk Manager

Many a corporation and government entity has had to eliminate the position of risk manager in tough times. And that is when the insurance broker has a chance to stand out and shine in assuming those duties on an ad hoc basis.

That happens to be the case in Gary, Ind., where Roosevelt Haywood III, president and CEO of Haywood and Fleming Associates, has taken on the role of not only providing insurance but helping the city prevent incidents and mitigate losses.

Haywood's team arranged a two-day comprehensive risk management and loss control seminar for the various departments overseeing the city's parks, airport, housing network and school system.

With Gary facing a financial crisis, like many core urban areas, Haywood has sought to reduce the city's premium burdens by raising deductibles and putting the city on a high retention program that will place the majority of the city's exposure under one blanket policy.

Alesia Pritchett, director of business services for the Gary Community School Corp., said that Haywood has been instrumental in controlling property and liability insurance costs for the school system. His accessibility along with the guidance he has provided to the corporation has helped the expeditious resolution of a number of major issues.

"Haywood's leadership and business intuitiveness have led him to be a leading entrepreneur in the risk management and risk insurance industry," she said.

President and CEO
Haywood and Fleming Associates, Gary, Ind.
Category: Public Sector

The Rock

Roosevelt Haywood III has never given up on Gary, Ind., and seems almost as fervent in his devotion to it as a young Ron Howard did when he sang about it in The Music Man nearly 50 years ago.

It certainly has not been easy, for the once vibrant steel mill town just outside Chicago fell on tough times decades ago.

As insurance broker to the city and school system, Haywood has taken on the de facto role of risk manager, as is the case with many public and private entities facing tough times.

But it is his work beyond his broker duties where Haywood stands out. As a board member of both the Boys and Girls Club of America and Leadership northwest Indiana, Haywood puts his passion for his hometown on the line for all to see and experience.

"My community has been good to myself and my family," he said. And all the fond memories "kind of growing up with the Jacksons" don't make up for the challenges facing Haywood and others who choose to stick around and make things better in Gary.

"Unemployment is high, and that can lead to crime," he said. "And one way of dealing with this is the Boys and Girls Club, for it gives them a place to go."

As for LNI, Haywood said that, "by fostering a greater understanding of the history and issues confronting Northwest Indiana, we hope that each graduate return to their community ready to meet these challenges armed with a network of new contacts, growth in personal leadership skills."

--By Steve Tuckey

Vice President
William Gallagher Associates, Boston

A Three-R Broker: Ronni-Rausch-Results

Late in 2009, Ronni Rausch, vice president of William Gallagher Associates, and her team faced the challenge of developing a comprehensive casualty deal with significant limits for a new public entity that had been created only months before.

This new entity had many moving parts, which needed to be integrated quickly. Part of its creation involved the consolidation and incorporation of many existing public divisions, all with their own unique risks, some of which did not previously purchase commercial insurance.

Before going to the marketplace, Rausch quickly learned about the laws that applied or may have applied prior to the inception of this entity. The response was gratifying.

The resulting program offered options of up to $100 million in coverage with pricing variations depending on tort caps, and allowed the board to choose its retention level to match its risk appetite. Pricing for the program ended up even more competitive than previously imagined, even in this soft insurance market.

For Rausch, the sense of urgency with which she and her team responded to client inquiries was the key to a successful relationship. Extraordinary technical expertise resulted in insurance packages offering very competitive prices and among the most favorable of terms.

"Ronni is a results-oriented broker with a strong customer focus," said one client. "She likes to be challenged and has an exceptional technical foundation from which she conducts her business."

Vice President
Marsh
Columbus, Ohio

Senior Vice President
Marsh
Tulsa, Okla.

Vice President, Director
Aon
Chicago

Executive Vice President, Senior Managing Director
Aon
Los Angeles

Executive Director
Arthur J. Gallagher
Saint Paul, Minn.

Senior Vice President
Keenan & Associates
Riverside, Calif.