Specialty expertise empowers brokers to add value to unique clients

Specialty expertise empowers brokers to add value to unique clients | Insurance Business Canada

Industry insights

Specialty expertise empowers brokers to add value to unique clients

Why specialized lines of coverage have such impact

Industry insights

By
David Saric

This article was produced in partnership with Intact Insurance.

David Saric, of Insurance Business, sat down with Paul Lucarelli, senior vice president, Intact Insurance Specialty Lines, Canada, and Kevin Neiles, president of Western Canada and chief markets officer at Gallagher, to talk about the unique value specialty lines coverage offer.

The rise of specialty insurance is linked to the increasingly complicated nature of certain businesses and their need for more bespoke coverage.

According to Kevin Neiles, president of Western Canada and chief market officer at Gallagher, specialty insurance has sprung from a world that is becoming increasingly complex – and connecting clients with specialty products has elevated the role of the broker.

“Gone are the days you would just sell property and liability insurance to a client, and you’d be done,” Neiles said.

Viewing risk exposures through a wider lens is a core principle of specialty insurance, which can strengthen a client’s risk profile while also showcasing the advisory nature of a broker, Neiles told Insurance Business.

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Growing a specialty focus through strategic acquisitions

Intact Insurance has seen the specialty insurance market as a growth opportunity for insurers and brokers for more than a decade, strategically responding to the dynamic needs of customers and delivering local expertise with global capabilities to specialized businesses.

Since 2016, Intact has ramped up its specialty lines business, bringing in different companies and specializations from around the globe to create a sophisticated specialty unit. The most recent of these additions has been, of course, the high-profile 2021 purchase of RSA.

Customers and brokers both benefit from the insurer’s increased strength in specialty.

“Specialty insurance diversifies a broker’s book of business, especially if they are also selling smaller commercial products, giving them greater risk prevention and exposure insight,” explained Paul Lucarelli (pictured top), senior vice president, Intact Insurance, Specialty Lines, Canada.

“And for the customer, a broker’s broad knowledge about mitigating potential risk exposures helps safeguard their assets and operations from a range of potential losses.”

Currently, Intact offers more than 20 specialized segment products, including construction, energy, specialty property, liability, technology, equipment breakdown, surety, crime, entertainment, farm, errors and omissions, and directors and officers (D&O).

Among specialty products, D&O insurance in particular has grown in importance, as a result of social inflation and an increasingly litigious culture.

D&O policies, along with any specialty line of coverage, showcase how an insurance company can tailor its products to the needs of a client – and the broker’s critical role in working with a specialty underwriter to provide a bespoke product solution.

“In speciality lines, the collaborative effort between a broker and underwriter is integral to delivering top customer service and products,” Lucarelli said. “They each pull from their extensive knowledge of risk assessment and previous claims experience to create holistic solutions.”

Bringing in a team of experts

As brokers explore new opportunities to better support their customers, they benefit from adding the specialty expertise of insurers to their internal capabilities.

“Collaborating with the specialized expertise from an Insurer like Intact allows us to address essential client exposures through effective loss control and risk management,” said Neiles.

Greater insight into specialty lines also opens up opportunities for internal collaboration and cross-selling within a brokerage.

Brokers can tap into another colleague’s specialist knowledge to enhance a client’s standard commercial policy, strengthening team spirit and growth within a brokerage.

“It is vital that brokers, who can explain the nuances of coverage and the emerging risks that clients face in today’s world, play an educational role,” advised Neiles.

“If you’re just trying to sell an insurance policy, you’re in the wrong business. You’ve got to be a trusted advisor and educator.”

Using data to meet unique needs

For Lucarelli, another value add of specialty insurance is how data insights balance the art and science of underwriting, to the benefit of customers with unique needs.

“The advancements in data collection and usage have completely transformed the industry throughout the past decade,” he said.

This enables a more seamless and thorough exchange of data, giving insurers and brokers the tools to provide tailored solutions to a customer’s insurance needs.

Opportunity for brokers to gain expertise

The speed at which new professionals can gain specialty knowledge is also changing. Previously, a broker would need to spend a significant amount of time on the general commercial side before transitioning into more specialized lines.

Now, specialty-focused insurers and brokerages, as well as professional associations, use focused education programs to attract talent right out of school to begin specialist training and development.

“We also see individuals with mid-range experience enter specialty insurance. It is a very exciting time to work in this area,” Lucarelli said.

Intact Insurance is Canada’s largest home, auto and business insurance company, the choice of more than four million consumers. Its coast-to-coast presence and its strong relationship with insurance brokers mean the company can provide the outstanding service, comfort and continuity customers deserve. Intact Insurance is a member company of Intact Financial Corporation (TSX: IFC), the largest provider of property and casualty insurance in Canada and a leading provider of specialty insurance in North America.