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Managing Director, National Real Estate Practice Leader
Aon, Denver

A House in Order: Placing Clients First

As co-leader of Aon's national real estate practice, Kathleen Felderman designed a unique policy form specifically created for multifamily apartment companies. When a large fire loss hit one such multifamily dwelling, the client was able to use two new coverages for emergency vacating and tenant relocation expenses to provide expedited assistance to residents.

In addition, several new coverage enhancements--including a simplified loss-of-rents calculation, enhanced pollution cleanup and landscaping coverage--will now provide $4 million of potential loss limits not previously available in multifamily policy forms.

One client benefited from "outside the box" deductible structures to the point of a 25 percent and seven-figure premium savings and improved terms and conditions while repositioning its risk with eight new carriers.

A speaker for several organizations including the National Multi-Housing Council and the Urban Land Institute, Felderman also shares her expertise as a lecturer at Denver University.

Kay Jones, risk manager for the real estate investment trust UDR Inc., said that Felderman more than makes the grade in every respect by overcoming some internal obstacles in the set-up of her renewal, and shifting focus to new demands placed on her.

"She is willing to work out whatever is best for us and is not concerned with what may work for Aon, her or anyone else," she said.

Director, Community Association Practice
Barney & Barney LLC, San Diego

National Leader In HOA, PUD Issues

With more than 30 years of industry experience, Robyn Thaw, a director with Barney & Barney LLC, last year set up the Community Association Practice (CAP) that specializes in insurance programs for real estate and common interest developments, homeowners' associations and planned unit developments (PUD).

Her expertise has gained her national recognition in these fields. Audits of potential clients' insurance programs to ensure compliance with their governing documents and civil code are among the special services that make Thaw an invaluable part of any client's team.

One such audit turned up serious noncompliance instances in the current coverage. Those lapses would not only have made the board of directors, the current management company and developer vulnerable to liability for uninsured losses, but also to potential allegations of negligence.

The new CAP with Thaw at its head has resulted in an increase of 150 accounts in Barney and Barney's client base, including one with an 18,000-unit community association.

Kingsley McLaren of Prescott Management said that his eight years of working with Thaw have convinced him that she stands head and shoulders above other brokers. "In my previous position I oversaw some 14 properties, and there were other brokers on some of those accounts," he said.

"It is the comparison with those brokers that truly makes Robyn shine and stand out."

Principal
City Builders Owners Insurance Program, Somers, N.Y.

Serving the Smaller Guys Pays Off Handsomely

More than three decades of insurance savvy helped Stu Cohen discover a huge, unfilled market niche in the New York City metropolitan area. Cohen noticed that knowledgeable, sophisticated owners and managers of large commercial buildings were able to buy property/casualty insurance at a reasonable price. But owners of smaller buildings didn't have that option.

Oftentimes, these folks would go to their personal agents and end up with a "one size fits all" policy. Cohen believed that, while these owners couldn't necessarily take advantage of some opportunities available to larger players in the arena, they should have other options.

Cohen approached nine leading commercial property/casualty markets and persuaded them that the small building niche could be lucrative. And his company was born.

As the program approaches its first anniversary, total premiums have shot into seven-figure territory. But more importantly, his clients are paying 15 percent to 30 percent less, and getting better insurance coverage.

One recalled a not particularly pleasant day several years ago when the New York State Insurance Fund notified her company it was more than $100,000 in arrears for disability payments. She contacted Cohen, who not only got the bill rescinded but also discovered an overpayment.

Cohen's calm competence during a freakish wind storm last year proved to this manager that his savvy demonstrated in their initial encounter was no fluke occurrence.

Senior Vice President
DeWitt Stern, New York

For This Broker, Barriers Be Damned

With underwriters and other experts fearfully awaiting the long-expected repeat of the Great Hurricane of 1938, New York's barrier islands might not seem the most profitable place to insure homes.

But Roger Kluge, senior vice president of DeWitt Stern, developed a niche business providing programs for high-asset individuals who have leisure homes on one such island. Located on a sand bar between the bay and the Atlantic, the properties present a significant underwriting challenge. Kluge persuaded carriers that this business can be profitable and provided coverage alternatives that were previously considered unavailable.

The Private Client Barrier Island Initiative, in the words of one industry observer, "called for not only creative thinking and diverse property/casualty knowledge, but also selecting the best internal service team to maintain and meet the expectations of the high-asset client."

In addition, Kluge provides consulting services to the boards of the community associations of these towns that face the challenge of managing the environmental risks of a barrier island and the fiduciary obligation of protecting the communities' financial position with regard to taxpayers.

William Hayden, a senior executive with J.P. Morgan Chase, said that Kluge goes the extra mile by asking the right questions and taking a sincere interest in being sure he has secured the proper coverage at the lowest cost.

Senior Vice President
DeWitt Stern, New York
Category: Real Estate

The Fund-raiser

Roger Kluge has played leadership roles in various New York-based volunteer organizations, one of which, Dancers Responding to AIDS, has a worldwide mission.

He's been key in raising more than $250,000 for DRTA last year at a time when the group was hit by funding reductions. Kluge is also a member of the organization's prestigious steering committee.

"We do several fund-raising events every year," noted Kluge, "but the major one we do is the Fire Island Dance Festival. We invite--and they donate their services--prominent dance companies to come to Fire Island, and we do three performances, usually with a celebrity host.

"Whoopi Goldberg was one of our hosts. She is a big supporter of the organization," he said.

The money that was raised goes to organizations around the country and throughout the world.

"We also make donations to the actors fund," Kluge said. "They do not work all the time, so they might not have benefits. We help them at a time when it's really serious."

In addition, Kluge volunteers his time as a director of his Fire Island co-op, which just underwent a major renovation under Kluge's direction.

"I was in charge of the selection of the general contractor, the architect and the materials," Kluge said. "I'm crossing my fingers, but hopefully we'll close on the mortgage this spring."

In addition, last September Kluge was named a director of the Fire Island Pines Property board.

"I firmly believe in giving back to the community and helping others who are truly in need," Kluge said of his many volunteer efforts. "I felt I could put my business resources to work for others."

--By Steve Tuckey

Executive Vice President, Principal
EPIC Insurance Brokers, San Francisco

Expertise That's Invaluable

Most risk managers find themselves serviced by a property broker, a casualty broker and a management lines broker. James Halbleib can do it all, and successfully, according to his clients. Recently, he secured excess liability for a client with a challenging products placement by engaging Japanese-domiciled insurers through a Japanese broker, which resulted in increased capacity at competitive pricing.

In the last year, Halbleib introduced a trust concept to one client. The client was fully funding the aggregate deductible and needed a place to house the redundant funds. Captive solutions were explored, but were not the right fit for the client.

Renee Crow, senior director of risk management for the San Francisco-based Kimpton Hotel and Restaurant Group, noted that Halbleib and his team's work on behalf of her company started well before the appointment during the intense nine-month RFP process. "He took the time to know us at a very deep level and offered assistance to help resolve a critical issue having a significant financial impact on our organization," she said.

The client recalled Halbleib working tirelessly with the management "to unravel the entity structures and ensure that the markets had a clear and complete understanding of our risks and coverage needs."

"Jim checks in with me several times a week and anticipates issues by listening to what is going on with us, monitoring our press releases, our Web site and other media, and brings ideas and solutions before we become aware of any problem," she said.

Principal
Integro, New York

Exceeding Expectations

Designing a new property program for a schedule of real estate assets that formerly had been insured with separate programs presented a unique challenge to Integro veteran Megan Lee.

Firstly, before her presentation to underwriters, she and her team had to collect data to ensure the program matched the needs and risks of the properties. The specifications sent to underwriters had to be detailed like no others because the program was unique. It all paid off when the total premium spent for the insured properties was reduced by more than 25 percent, while broadening coverage in a number of ways. Protocols and pricing agreements were set up for new properties expected to join the program.

"Megan is always thinking and responsive to our needs," said one industry executive. "Her tenacity was able to save thousands of dollars during our property renewal in 2009 by leaving no stone unturned in the way of potential markets."

Another client praised Lee for her savvy use of catastrophe modeling data. The data went a long way in getting the kind of terms, sublimits and pricing from underwriters. In the end, the pricing and the contract terms exceeded even this client's expectations.

"Getting 10-plus partners to all agree to switch programs to our consolidated option was no easy task. It required seemingly interminable renegotiations with the carriers after they have already provided quotes," he said. "In every case, Megan was successful, and ultimately helped us to ensure all of the partners were on board with our option."

Managing Director
Marsh
Houston

Senior Vice President
Arthur J. Gallagher
Atlanta

Managing Director, Practice Leader Gallagher Real Estate & Hospitality
Arthur J. Gallagher
Glendale, Calif.

Managing Director, National Property Practice
Beecher Carlson
Atlanta

Area Senior Vice President
Arthur J. Gallagher
Boca Raton, Fla.

Real Estate Practice Leader
Aon
Los Angeles

Senior Director, Business Development
DeWitt Stern
New York

Sr. Managing Director
Beecher Carlson
Atlanta