Insurance Business Review: Specials Magazine

Branoff believes embracing data and technology is crucial in today’s environment, something which has been a cornerstone in AIC’s success. Gaining insights and knowledge to support placements enhances the likelihood of securing competitive capacity and client success, while serving as an important differentiator. For example, many years ago, AIC invested in the development of a proprietary system that documents all material transaction data points in its company database. Later on, it began subscribing to third-party data and augmenting data to its database, further enhancing the ability to understand portfolios of total insurable value, assess and evaluate risks, and create opportunities. On a location, client, or portfolio level, this could mean reporting that enables claim trend, cost, and underwriting characteristic comparative analysis. “During the current hard habitational property market, capacity is limited, and placements are very challenging. Being innovative, creative, determined, and solution-oriented has supported our navigation through the current market,” says Branoff. “My advice is that during challenging times, evaluate and communicate, and then be decisive and committed, set a plan, and execute while being flexible along the way.” Understanding the Industry and Client Needs Where others see challenges, Branoff often sees opportunities. For example, years ago, his clients in North Texas, many of whom were loss-free, were experiencing hefty premium and deductible increases due to wind and hail loss events in the overall market and extensive resulting carrier shock loss payments associated with blemished roof surfaces. In many similar instances, Branoff took a note from loss adjusters and industry partners that often no functional roof damage had occurred due to the hail claim, but property owners and managers were nonetheless incurring sizeable loss payments due to blemished (but functional) roof damage. The carrier marketplace responded with significantly higher premiums and wind-hail deductibles in North Texas for all property owners and managers. Branoff focused on innovation and authored a cosmetic damage to roof surfacing exclusion due to the peril of hail with an E&S carrier. Introducing this endorsement enabled clients to reduce their premiums and provided additional coverage protection via exclusion to carriers. The form was well-received by clients and carriers and is now a widely-used commercial insurance form in the commercial property insurance industry in the U.S., London, and Bermuda. Last year, Branoff authored an additional endorsement in response to the current market environment—clients face premium pressure from valuation due to inflation. Carriers were forcing them to increase valuation connected to inflation-adjusted construction costs. Once again, he innovated to create premium relief optionality for clients, authoring an endorsement that defines a per square foot building valuation threshold resulting in dynamic coverage, ranging from blanket per location limit to building-specific limit with occurrence limit of liability, based upon building valuation.