You deserve a broker who places the client first

Normally, we don't like to pat ourselves on the back.But every so often our clients or someone in the industry will share with us how they feel about our partnership, the services we provide, or how we conduct business. And at Arthur J. Gallagher & Co. we’re especially proud of two recent announcements.

www.ethisphere.com

Gallagher ranked #1 in overall client satisfaction among the five 5 largest brokers in Greenwich Associates 2012 Large Corporate Insurance Survey. More than 700 clients were surveyed, and we placed first or second in every category, including #1 in “likelihood to recommend” - which means our clients are more likely to recommend us than any of our competitors’ clients.

Arthur J. Gallagher & Co. operates differently than most insurance brokers.

Greenwich Associates Names Top Insurance Brokers

Greenwich Associates Names Top Insurance Brokers
by Emily Holbrook on April 8, 2010
Greenwich Associates, an international research-based consulting firm, has named the winners of its 2009 Greenwich Excellence Awards for Middle Market Insurance Brokerage. More than 9,000 companies with annual sales between $10 and $500 million were asked to name the insurance brokers and carrier they use and to rate their levels of satisfaction with their providers. The results are as follows:
National Winners
1. Arthur J. Gallagher & Co.
2. BB&T Insurance Services
3. USI Holdings Corp.
4. Wells Fargo
5. Willis Group
Regional Winners

Northeast
1. Aon Corporation
2. Brown & Brown Inc.
3. First Niagra
4. Marsh & McLennan
5. USI Holdings Corp.
6. Wells Fargo
7. Willis Group
South
1. Aon Corporation
2. Arthur J. Gallagher & Co.
3. BB&T Insurance Services
4. Brown & Brown Inc.
5. J. Smith Lanier & Co.
6. Marsh & McLennan
7. Wells Fargo
8. Willis Group
Midwest
1. Arthur J. Gallagher & Co.
2. Wells Fargo
3. Willis Group
West
1. Arthur J. Gallagher & Co.
2. Lockton Companies Inc.
3. Marsh & McLennan
4. USI Holdings Corp.
5. Wells Fargo
6. Willis Group
The full list includes honorable mentions and carriers cited for broker-type servicing efforts. David Fox, a Greenwich Associates consultant, says that the award-winning brokers “have been cited by their corporate clients for their superior service in helping companies identify risks, create solutions for managing these risks and implement cost-effective coverage.”

Leasehold Interest Protection

With all of the vacant commercial office buildings out in the marketplace right now, many tenants are finding it's perfect timing to renegotiate their lease and/or move to a new lease at cheap price per sqf!

Landlords who were previously asking high price per sqf are now accepting offers they never imagined just to fill the vacancy and accept some revenue.

However, as the market changes for real estate over the next few years probably after 2011, many Landlords will be seeing that they can get more revenue on those previously negotiated low leases the tenants contracted for. Landlords will be looking to those same lease agreements for the clause they are putting in now to allow them to get out of their contract later. Such as if there is "property damage" they can cancel the lease.

How does this pertain to insurance? Well, Leasehold Interest protection is an optional coverage just like business income and extra expense. If you don't own your building but have a low lease and then for some reason you lose that lease, you are forced to move and pay a much higher price per sqt. This can be very costly to the operating costs of any business.

Three conditions apply to this coverage:
1. There must be a direct property damage
2. The property damage must be from a covered loss under the policy
3. The property damage directly leads to the cancellation of a favorable lease.

The policy responds only if all three requirements are met.

Something to remembers as you renegotiate your lease and review your insurance policies it might be time to request coverage for your favorable lease.

ProfitSURE Presentation

I participated in a conference call/webinar for ProfitSure today. While this alternative way to fund the expected losses of your workers' compensation program is not for everyone, it can benefit those companies who expect $300k-700MM in claims that are $0-$100,000 in value.

By using the laws that the IRS provided in 2001 and 2002 outlining Safeharbor guidelines and what is defined as risk transfer and risk sharing; ProfitSure has created a way to create a captive for your expected losses and then utilize a trust arrangment to partner with other businesses to pay out those claims.

There are a lot of options available from single parent captives, rent-a-captives, group captives, 831b captives and other arrangments like ProfitSure I think it's important to make sure your using the right option for yoru company to accomplish your future goals. If you would like additional information please contact me at deanna_slater@ajg.com

Webinar Series

Does your broker offer additional resources to keep you updated with news and trends? I think it's one of the most important aspects of my job. Arthur J. Gallagher has put together a current listing of upcoming webinar's that we will be offering our clients and prospects. Check out the below list and let me know if you would like additional information and register.
1. January 27th 11a.m. CST "OSHA's Recordkeeping National Emphasis Program"
2. February 25th 11a.m. CST "Cost Drivers for Commercial P&C Insurance 2010 and Beyond"
3. March 31st 11a.m. CST "Business Challenges for a Connected World"
4. April 7th 11a.m. CST "Environmental Insurance 101"

Impact of New Experience Modification Formula

Did you know that effective 1/1/2010 that the WCIRB changed the formula for how experience modifications are calculated?

1. Claims that are $2,001-$7,000 are no longer discounted but go in "dollar for dollar". Check out the primary vs. actual column and compare those same claims to your 2009 exmod worksheet. Yikes!

2. On your larger claims the discount structure has changed, they are not discounted as much for the mid level claims.

3. If you have very large claims they are now maxed out at $7,000 and discounted to that level.

So....what does all of this mean? Well, depending on your claim experience some of my clients exmod's went up higher by 10-15% due to the formula change alone while only a few had a reduction in the exmod due to the formula change.

Hmmmm...so the insurance commissioner doesn't allow a rate increase but authroizes a change in the exmod that causes rates to go up to most employers...seems pretty transparent that the insurance commissioner is running for govenor and didn't want to take the heat for a rate increase but...who would really fight or publisize a change in the formula. Gotta love California Workers' Compensation!

Switching Gears

It's 2010 and I can't believe it! To hit the New Year hard I'm revamping my blog and hope you will enjoy it!

To broaden the scope of information and updates I'm not only going to focus on information about captives and alternative insurance products but additional information on what the industry is doing and updates in general that my clients and future clients might find helpful.

I hope you enjoy these new changes for the year and happy to hear any feedback!