POWER BROKER: AT LARGE
Planning for Loss Control
The Mosaic Company suffered significant losses due to
maintenance issues. Before renewal, Manny Pereira addressed
the problem directly by having Mosaic engineering and other
senior executives talk to carriers in meetings about what was
being done to prevent the issues from reoccurring.
Armed with this information, Pereira was able to leverage
data analytics and make an argument for the importance of the facility to negotiate a rate
reduction that exceeded benchmarking data.
“Manny understands our business and how we are focused on implementing loss
control improvements to reduce the risk of loss,” said Michael R. Bishop, director, risk
“He articulates that very well to underwriters, so that he can get the best deal possible
“During a debated claim, Manny was instrumental in us obtaining a very favorable
outcome and quick pay by the insurers,” said Benji Holt, corporate risk and insurance
“His level of knowledge and detail on property policy wording and loss control are
Brian Pfund, RPLU
“Manny Pereira did a fantastic job this year,” said another client. “He made some
commitments during the RFP process that were very impressive.”
Marsh, Portland, Ore.
Growing with the Times
A client’s business model shifted from being hardware-focused
to software-focused, which changed the client’s exposures. As
a result, a manuscripted errors and omissions policy became
necessary to ensure they were properly insured.
Marsh’s Brian Pfund negotiated full limits to the client’s
once-sublimited E&O/cyber coverage, while improving language
and reducing premium. But the “true solution to the challenge” was Pfund’s additional
insight into how the market’s appetite for cyber risk shifted throughout the year given the
evolving nature of the exposure — supplemented with analytics, benchmarking, third party
assessments, modeling and quantification. With a more holistic view of the client’s risk and
mitigation strategies, the client now has several E&O/cyber program structures that can be
“Brian has been a huge help in helping to educate our decision makers about the changing
complexity of our insurance policy and how we needed to make decisions about increasing
coverage,” the client said.
“Brian has saved us money on our cyber liability policy,” said the director, global risk
management, at an outdoor apparel manufacturer.
“Last year he was able to secure broader coverage in a year that we had filed a claim 21
days before the policy renewed. Brian was able to convince the underwriter to maintain the
renewal terms they had previously offered.”
A D&O Expert
A new client had a dual board and a complex organizational
structure that necessitated a revisit of its management liability
Chris Rafferty and his team determined specific areas for
potential enhancements to the client’s existing D&O policy by
providing insight into the probability of a claim, estimates of
the largest exposures the client could potentially face, as well as a client peer analysis of
programs where a controlling shareholder and a unique program structure were present.
Ultimately, Rafferty and his team were able to build two D&O programs to address the
dual-board structure, negotiating the necessary language to ensure coordination across the
two towers at a price that was less than the expiring program.
“Chris Rafferty is a very professional individual who I believe continues to gain in
knowledge in the area where he’s an expert,” said the risk manager at a manufacturer of
nitrogen products. “That up-to-date knowledge in the marketplace benefits clients.”
“Chris Rafferty is fantastic,” said the risk manager at a company that provides advanced
engineering and manufacturing solutions. “On a personal level he has a superb personality,
and on a professional level, nobody knows D&O better than he does.”
“Chris Rafferty is very knowledgeable about the programs he manages for us,” said the
risk manager at an aviation manufacturer. “He is very action-oriented and responsive and
has a balanced relationship with the insurers and his insured.”
Commercial Insurance Broker
Aon, Morristown, N.J.
Leader in Reducing Rates
Galo Santana had concerns about the frequency and severity
of losses within a client’s workers’ compensation program. The
client’s auto insurance policy reflected loss activity as well.
The major renewal challenges were the client’s operations
and adverse loss history; it was emerging as a loss-leader for
carriers. Workers’ comp and auto insurers sought rate increases.
Santana approached nine carriers including the incumbent. Due to an intense
marketing effort, he was able to overcome the obstacles presented at renewal and provide
the client with a very competitive renewal offering. He was able to negotiate approximately
10 percent savings overall.
For Acosta Inc.’s property insurance renewal, Santana approached 11 carriers,
including the incumbent. Most insurers could not be competitive on the target rate due to
CAT exposure and COPE (construction, occupancy, protection and exposure) concerns or
had difficulties matching the expiring limits.
However, as result of the marketing effort, Santana was successful in reducing the
property account rate by over 38 percent and received numerous program enhancements.
“Galo is very diligent,” said Theresa McLaughlin, director risk management.
“We have about 190 properties, some outside the U.S., as we do a lot of acquisitions.
Galo keeps us up-to-date on what assets are moving and what assets need to be reduced.
He stays on top of his game and works to get the right information to us.”
Aon, New York
Sealing the Deal
An Aon client’s deal for a competitor was in jeopardy due to a
potential $175 million tax exposure: Certain employees of the
competitor owned profits interests, and the client was concerned
that, after the acquisition tax, authorities would argue the
competitor should have withheld employment taxes.
Dan Schoenberg worked with the client’s law firm and
accounting firm to draft the tax advice that would be provided to the carriers for
He designed the insurance program, obtained five quotes for the client, negotiated the
key points in the winning carrier’s policy and spearheaded the extensive due diligence
process between the client and the carrier, closing the program under the client’s budget.
The client paid 20 percent less than anticipated with no retention.
The policy covered potential U.S. federal and state income taxes, plus interest, penalties
and defense costs. The policy also provided a “gross-up” for the tax owed on any proceeds
received by the client under the policy. The client got a full wrap of the exposure, which
allowed its transaction to receive Board approval.
“Dan Schoenberg provides great service and pays attention to detail,” said the vice
president, accounting, at a pharmaceutical company. “We approached him about the
coverage we needed, and he was able to deliver a product that fit our needs, which helped
us out in a very challenging time when we needed to deliver on a project.”
Senior Vice President
Keeping Risks on Radar
An Aon client signed an agreement to upgrade, maintain and
monitor radar installations along the Arctic Circle. The challenge?
Broker Christian Wise was to determine the appropriate cost of
The installations were in remote locations and lacked adequate
fire protection — one had burned to the ground, resulting in a $20
million loss. The initial cost to incorporate this exposure into the global property program
was roughly $1.8 million dollars, eradicating any anticipated profit.
A loss control engineer traveled to the remote locations — complete with protective gear
and a shotgun to ward off polar bears — assessing their value, which was nearly half of
what was provided.
Wise and his team drafted a coverage form meeting the requirements of the contract,
including broad coverage. The team took advantage of the Aon Client Treaty in London
that provides additional capacity of 20 percent to a line slip. They met with key London
markets and placed a separate policy for additional savings. The original premium cost was
ultimately reduced by $1.3 million.
“Chris Wise and his team have been responsive to our growing needs and challenges
— combined with their client focus and industry relationships, they are truly assets and
help make my job easier,” said the director of risk management at a company that provides
wireless communications infrastructure.