Insurance Blogs

Weekly News Roundup, April 19

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In this week's news will talk about how The Liberty Company continues hiring spree, CYE warns of wide cyber insurance coverage gap, and much more…

The Liberty Company continues hiring spree

The Liberty Company Insurance Brokers (Liberty) has brought in two additions to its leadership team – Neal Rubin as senior vice president for benefits and Andrew Bernau as SVP and commercial lines producer.

Rubin joins Liberty with an impressive track record spanning more than 40 years in the employee benefits sector of Southern California. His credentials include seven years spent as vice president at a benefits solutions specialist.

At Liberty, Rubin will lead marketing and sales efforts, focusing on creating customized solutions that enhance client satisfaction and promote employee retention.

“I was drawn to the organization’s forward-thinking ethos and commitment to empowering producers with comprehensive support,” Rubin noted.

Further pullouts in key state to hit nearly 13,000 insurance policies

Tokio Marine America Insurance Company and Trans Pacific Insurance Company, both part of Tokio Marine Holdings, have no plans to return to California’s personal lines market once they leave in the second half of the year.

In an emailed statement to Bloomberg, the property insurers said: “Given the small segment of personal lines business we write and escalating costs, we cannot sustainably support personal lines coverages and do not plan to return.

“We remain committed to commercial lines in California – and across the country – and supporting our agents and customers with exceptional service through this transition.”

According to filings submitted to the California Department of Insurance, the withdrawal of the two companies will impact 12,556 policies worth $11.3 million in premiums.

Fontenelle & Goodreau Insurance joins Gallagher

Gallagher has acquired Fontenelle & Goodreau Insurance in Louisiana.

Under the deal, financial terms of which were not disclosed, founding member Charlie Fontenelle and his team will continue operating from the company’s base in Metairie. They will be overseen by Bumpy Triche, head of the Southeast retail property/casualty brokerage operations at Gallagher.

J. Patrick Gallagher, Jr., chair and chief executive of the wider group, commented: “Fontenelle & Goodreau Insurance is a highly regarded agency whose products will enhance our capabilities, particularly within commercial real estate. “I am delighted to welcome Charlie and his associates to Gallagher.”

Omaha National sets foot in California with carrier acquisition

Workers’ comp insurance specialist Omaha National has announced its acquisition of Sutter Insurance Company, a California-based insurance carrier that has been rebranded as Omaha National Casualty Company.

The deal is set to complement Omaha National’s existing Nebraska-domiciled Omaha National Insurance Company.

CEO Reagan Pufall highlighted the strategic importance of this acquisition, as a “major step forward” in operating as a national full-stack carrier.

“We’re approaching $200 million in-force premium while at the same time our loss ratio, including allocated loss adjustment expenses, has been below 60% every year we’ve been in operation,” Pufall said.

CYE warns of wide cyber insurance coverage gap

Cybersecurity firm CYE has published a new study that highlights significant gaps in cyber risk management and the often-insufficient insurance coverage that organizations face in the aftermath of cyberattacks.

Titled “Inadequacies in Breach Insurance Coverage: A Data-Driven Gap Analysis”, the research notes that as digital threats continue to escalate, many companies have turned to cyber insurance as a protective measure against the financial devastation caused by data breaches.

However, the findings from CYE’s study, which utilized both external and internal data sources, paint a concerning picture: the coverage provided by existing cyber insurance policies frequently falls short of covering the full costs of cyber incidents.

The report details that 80% of insured companies experiencing a data breach had inadequate coverage. In addition, the average coverage gap was found to be 350%, indicating that over three-quarters of the incident costs were not covered by insurance. In extreme cases, the coverage gap reached as high as 3,000%.