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Senior Vice President
Guy Carpenter & Co.
New York

Bold Beyond his Years

Just 34, David Baruch, senior vice president with Guy Carpenter & Co., brandishes the knowledge, skill and bravado of a reinsurance brokerage veteran a decade or two his senior.

Baruch recently consolidated into a single placement a global excess liability program that had been covered by multiple treaties designed to address the client's various reinsurance needs. The treaties were crafted when that stepped approach best suited the reinsurance market environment.

The expiring placements had given reinsurers flexibility in how they would support the ceding insurer, but they created inconsistencies in the insurer's gross versus net position. Under the consolidated placement, the insurer significantly improved its reinsurance placement efficiency.

Meanwhile, for a professional liability insurer insisting on a reinsurance cost reduction in a tightening market, Baruch worked with the insurer and his own analytics team to demonstrate why the insurer's experience warranted major premium savings. "David exemplifies the concept of a value-added broker in every aspect of the job," one client said. "He is not only extremely proficient technically but also understands and can work through the softer, more strategic aspects, as well, which is what makes him one of the best brokers in the business."

"He is in touch with the latest climate of the market: rates, appetite, trends, etc.," another client said.

Vice President
Guy Carpenter & Co.
Seattle

A Microinsurance Crusader

At 28, Alex Bernhardt, vice president of Guy Carpenter & Co. in Seattle, already has worn several professional hats: writer, reinsurance broker, innovator.

In building Guy Carpenter's Micro Risk Solutions practice, he has stitched the three together. The former reporter wrote the initial grant application to the Microinsurance Innovation Facility, supported primarily by the Gates Foundation, for the funding that allowed Guy Carpenter to enter this developing market.

Since early 2010, Bernhardt has led the practice in several unique transactions worldwide.

He placed the industry's first excess-of-loss and quota-share transactions, which were crucial for the startup of a state-sponsored critical illness program in India. In southern Africa, he arranged coverage for a startup life microinsurer.

In Haiti, Bernhardt worked with several stakeholders to form the Microinsurance Catastrophe Risk Organisation, a donor-capitalized insurer designed to help entrepreneurs protect themselves financially following natural catastrophes by providing their domestic financial service providers with various risk transfer solutions.

"Alex has a unique ability to see beyond today's solutions and envision new, innovative strategies that make for a more effective risk management program," said Scott K. Goodell, president and chief executive officer at Energy Insurance Mutual Ltd. of Tampa, Fla.

Senior Managing Director
Aon Benfield
Stamford, Conn.

Pinch Hitter

Frank Hand, senior managing director with Aon Benfield in Stamford, Conn., is an intermediary who comes through in a pinch.

Linda McLaughlin, a Boston-based senior vice president in the IronHealth Life Science Division of Ironshore Inc., described Hand's critical role in finding reinsurance for the fledgling division, created in September 2009. "Prior to my joining the company, Ironshore did not have any expertise in this specialized niche market," McLaughlin said. "The task was challenging, as my mission was to get the unit operational within one month's time. Moreover, we needed to secure a dedicated treaty to solely support the life science business, which had no operating history and only a business plan in place. Frank was instrumental in securing a successful reinsurance treaty" within 60 days, "which far exceeded our goal," even though he previously had not worked on life science placements.

"He continues to exceed expectations as he was able to negotiate better terms and conditions at the treaty's first renewal in an even tougher reinsurance environment," McLaughlin said. "Frank exemplifies what a reinsurance broker should be."

"Frank has established credibility spanning a long career as a reinsurance underwriter and broker," another client said. "Frank makes it his business to understand all the needs of his client at a corporate and (business unit) level and the needs of core markets in order to structure an efficient reinsurance program that is equitable to both sides."

Managing Director
Guy Carpenter & Co.
New York

Keeping a Tight Lid

The ceding insurer's request might have seemed like a knee-bending combination punch for many brokers: In the tough reinsurance market, find protection for a new product without fanfare and quickly.

For Steven Hanke, managing director with Guy Carpenter & Co. in New York, it was just a matter of drawing on the 15 years of reinsurance underwriting experience before switching to brokering.

The client's product was new not only for the insurer but also for the marketplace--a tough sell to reinsurers attempting to understand how the policy and pricing would work. Further complicating the placement, the client would share only limited information about the proprietary product but wanted a treaty placement within 60 days.

Hanke and his team lined up three reinsurers within the two-month deadline and did so without revealing the information the client wanted cloaked.

"Having spent many years at GeneralRe before making the transition to broker, Steve has a depth of experience that many of his peers do not," an executive for the client said.

"Years of experience as both a reinsurance underwriter and now as a reinsurance broker allow Steve to see the picture from all sides of the equation," said another client, Mark Peeters, chief professional liability underwriter at Argo Re in Hamilton, Bermuda. "As such, he is able to comprehend opposing points of view, which aids him in arriving at great conclusions and obtaining very favorable results."

Managing Director
Guy Carpenter & Co.
New York

A Talent for Structure

Michelle Harnick, managing director with Guy Carpenter & Co. in New York, draws heavily on her actuarial expertise to help clients manage systemic risk.

For example, she developed a reinsurance structure that not only reduced a client's premium leverage but also provided coverage for potential systemic risk related to its workers' compensation exposure. The structure figured positively in the client's rating evaluation by A.M. Best Co. Inc.

"I regard Michelle as one of the top-tier structuring brokers, with a talent for combining the most sophisticated financial and capital analysis, broad insurance, reinsurance and capital markets competency and a command of the reinsurance marketplace--all to best serve her clients," said Barbara C. Bufkin, executive vice president of corporate business development at Argo Group Ltd.

Harkin is "a first call for any modeling/risk and reinsurance structure requiring a view beyond the usual and customary," Bufkin said.

Tony Phillips, chief risk officer, chief actuary and vice president at Accident Fund Holdings Inc., also praises Harnick's ability to satisfy clients and reinsurance markets.

"Michelle was very knowledgeable on insurance, but even more valuable to my company was that she really understood risk and the options to transfer it," Phillips said. While Harnick listens to clients' demands, she also examines all options, which led to "a better product" for AFHI, Phillips said.

Senior Vice President
Guy Carpenter & Co.
New York

New Product? No Problem

As if the reinsurance market is not difficult enough to navigate, Kenneth Kim, senior vice president with Guy Carpenter & Co., has chosen an especially challenging path to travel--helping clients line up reinsurance for new products.

Those products can range from the conventional, such as workers' compensation insurance, to the exotic, including manufacturers' errors and omissions coverage.

In either case, reinsurers are not eager to offer protection. With no loss history or premium base to attract reinsurers, new products are doubly tough to place in the tightening reinsurance market.

As a result, brokers have to market those products differently to reinsurers than they would established products. That means brokers must offer ceding insurers a range of services beyond their ability to complete treaty placements. Those services include assisting in developing strategic plans, conducting market research and introducing new distribution channels.

Kim has proven he has a steady hand at the reinsurance helm as new insurance products launch. "The knowledge of the business Ken possesses is rare," a client said. The client praised Kim for his ability to advocate on its behalf with reinsurers. "While generally reserved, he can very strongly advocate for his clients when the need arises."

In addition, "his ability to listen is very helpful while in negotiations with reinsurers," the client said.

Managing Director
Guy Carpenter & Co.
Philadelphia

Managing Director
Guy Carpenter & Co.
Glendale, Calif.

Senior Vice President
Guy Carpenter & Co.
Morristown, N.J.

Senior Vice President
Guy Carpenter & Co
. Seattle

Gauging the True Exposure

Guy Carpenter's surety specialty team, led by Eric van Elkan, delivers what it promises, which has driven a growing number of reinsurers to retain the team.

"During the RFP process, many reinsurance brokers will promise that their results in the areas of pricing, contract wording and service will exceed that of the incumbent," client Richard W. Allen, III, president of surety and fidelity operations at Capitol Insurance Cos. in Glastonbury, Conn., said. "In only a few instances will that actually happen. I am pleased to advise that the team have exceeded expectations in these areas."

A big part of the reason is that "The team's knowledge is extensive," another client said. "One of their strengths is their analysis and interpretation of detailed actuarial data."

In the past year, for example, the team won over a new client by demonstrating that its broker had overstated its exposure, resulting in excessive premiums. The team's analytics also provided the client with improved ability to determine proper limits, reinstatements and risk retention.

In addition, while the former broker indicated the market no longer would provide even reduced coverage for subdivision bonds because of the client's loss activity, van Elkan's team found market capacity.

The team won another new client with analytics that demonstrated that the client's reinsurance program was overstating exposure and risk and was materially less volatile than the industry average.

Managing Director
Guy Carpenter
Hartford, Conn.

Managing Director
Guy Carpenter
New York