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US General Insurance News brought to you by IDEX Consulting
Many people are aware of the staggering costs that COVID-19 can have for employees, both emotionally and financially. In addition to the uncertainty of COVID-19, workers have to deal with changes in their day-to-day lives and concerns about how being out of work for long periods of time can limit their income. Workers’ compensation can be a key tool to mitigate some of these concerns — both for employees and employers. Now, new NCCI analysis delves into the true costs of workers’ compensation, showing that costs for non-hospitalized long COVID patients can be nearly as high as hospitalized patients with traditional COVID. (Willa Hart, 28/10/2022, ALM Property Casualty 360, 'Average long COVID workers' compensation claim was $216k, research finds')
Munich Re said it will probably take a hit of about 1.6 billion euros ($1.57 billion) after Hurricane Ian led to massive damages in Florida, and warned reaching its full-year profit goal has become “significantly more challenging.” The estimate of losses from the storm is “subject to substantial uncertainty,” the company said in a statement Friday. Shares of the reinsurer rose after saying it expects to post a higher-than-expected profit of about 500 million euros for the third quarter, helped by a one-off effect at its Ergo life unit. (Stephen Kahl, 24/10/2022, ALM Property Casualty 360, 'Ian's toll: Munich Re warns on full-year profit target')
The U.S. Court of Appeals for the Seventh Circuit has affirmed a district court’s finding that an insurance company had no duty to defend or indemnify a fireworks distributor for the injuries sustained by two volunteers at a July 4 fireworks display. The volunteers, Timothy Olson and Todd Zdroik, helped with the displays in separate towns in 2018. Olson opened and closed a bin from which other volunteers retrieved fireworks during a show in Rib Lake, Wisconsin. Zdroik worked as a “shooter” by manually lighting fuses on the mortar shells at the Land O’Lakes, Wisconsin, firework display, according to the circuit court’s opinion. (Allison Dunn, 24/10/2022, ALM Property Casualty 360, 'Insurer has no duty to defend, indemnify fireworks distributor for volunteers' injuries')
Inflation is the highest it has been in over 40 years, and consumers are feeling the pain. One area that had been relatively unaffected was insurance. But now premiums are rising across the board for Auto, Health, Life and Homeowners insurance policies. McKinsey reports that insurance carriers need to plan for inflation to persist and factor it into their ongoing business strategies and tactics. This provides a tremendous opportunity for insurers to innovate. Even during these tough economic times, insurers can provide solutions for customers that meet their needs. Inflation should not curtail modernization. Instead, companies should utilize innovations to deal with the short-term impacts of inflation and to progress on their strategic goals. (Aaron Wright, 21/10/2022, ALM Property Casualty 360, 'Inflation must not curb insurance innovation')
Insurance companies operating in California must now recognize and reward homeowners and businesses that undertake wildfire mitigation efforts as part of the state’s Safer from Wildfires framework. As part of the regulations, insurers must provide discounts for mitigation efforts and provide wildfire risk scores to policyholders. The framework also includes a process for policyholders to appeal the risk score. The regulations are the first of their kind in the U.S., according to California Insurance Commissioner Ricardo Lara. Insurance companies have 180 days to submit new rate filings that incorporate the wildfire safety standards established by the new regulations and develop a process for releasing wildfire risk determinations for residential and commercial policyholders. (Steve Hallo, 21/10/2022, ALM Property Casualty 360, 'California institutes Safer from Wildfires framework requiring insurance discounts')
When it comes to modern insurance customer expectations, an often-heard refrain is for the need to offer the “Amazon” experience, which is the short way of saying a personalized, streamlined, seamless and always-on shopping experience. Taking this idea head on, the bookseller-turned-online-shopping leviathan is entering the insurance aggregation sector with the launch of its Insurance Store, which the company claims will allow U.K. consumers to request and review quotes, select a Home insurance policy and checkout through Amazon.co.uk.(Steve Hallo, 20/10/2022, ALM Property Casualty 360, 'Amazon Insurance Store launches with home policies in UK')
Tremor Technologies, Inc. launched its Reinsurer Product Council with its first cohort of eight global reinsurance companies and ILS funds participating representing nearly $100 billion in industry capital. Participating companies include a cross section of major U.S., Bermudian and European reinsurers as well as alternative capital providers. (PC360 Reporter, 19/10/2022, ALM Property Casualty 360, 'Around the P&C insurance industry: October 19, 2022')
Coalition announced the formation of Ferian Re, an independent Bermuda-based Class 3B reinsurer that will provide capacity across Coalition’s Cyber programs. Ferian Re will be capitalized with approximately $300 million from an investor group led by funds managed by BDT Capital Partners, LLC, an affiliate of BDT & Company, LLC, a merchant bank that works with family- and founder-led businesses to pursue their strategic and financial objectives. Minority investors include The Pritzker Organization among other sophisticated global investors with long-term investment horizons. (PC360 Reporter, 19/10/2022, ALM Property Casualty 360, 'Around the P&C insurance industry: October 19, 2022')
Arthur J. Gallagher & Co. reported $2.01 billion in total revenue for the third quarter, a 15.1% increase over the year-earlier period. U.S. Retail Business Property/Casualty operations’ organic growth remains strong, from new business and a solid, high retention rate that is consistent with last year’s record, said J. Patrick Gallagher Jr., the brokerage’s Chairman, President and CEO. (Judy Greenwald, 27/10/2022, Business Insurance, 'Gallagher reports 15% increase in revenue in Q3')
Arch Capital Group Ltd.’s third-quarter results were decimated by losses related to Hurricane Ian, as the Pembroke, Bermuda-based insurer and reinsurer reported net income fell 98.2% to $6.9 million. On the company’s earnings call, François Morin, Arch’s Chief Financial Officer and Treasurer, referred to the company’s Oct. 19 loss bulletin estimating Ian losses at $530 million to $560 million, which he said were the largest in the company’s history. (Matthew Lerner, 27/10/2022, Business Insurance, 'Hurricane Ian slams Arch Capital third-quarter results')
A federal appeals court has affirmed that a pollution exclusion in a Liberty Mutual Insurance Co. policy applies in long-running litigation even if it involves an oil leak of unknown origins. In January 2007, Lake Charles, Louisiana-based Central Crude Inc., an oil and natural gas company, discovered a crude oil leak on its property and a neighboring tract owned by Chevron Corp. in Paradis, Louisiana, according to the ruling by the 5th U.S. Circuit Court of Appeals in New Orleans in Central Crude Inc. v. Liberty Mutual Insurance Co. et al. (Judy Greenwald, 27/10/2022, Business Insurance, 'Liberty Mutual off the hook in oil leak case')
More companies are buying Cyber insurance policies, according to a survey. The percentage of companies buying the coverage totaled 86%, with 69% holding standalone policies, which is an increase in both cases of three percentage points from last year’s findings, according to the 12th annual Information Security and Cyber Risk Management report released by Zurich Insurance Group Ltd. and Advisen Ltd. (Judy Greenwald, 26/10/2022, Business Insurance, 'More companies buying cyber coverage: Zurich, Advisen')
Chubb Ltd.’s net income more than halved in the third quarter, reflecting Hurricane Ian claims and realized losses, and the insurer’s top executive said that additional commercial rate increases are necessary to keep pace with loss costs and inflation. “Casualty rate in most classes will need to rise at an accelerated rate or else the industry will fail to keep pace,” given loss cost inflation and what will be slowing growth and exposure in the future, Chubb Chairman and CEO Evan G. Greenberg said during an earnings call with analysts. (Claire Wilkinson, 26/10/2022, Business Insurance, 'Hurricane Ian drives down Chubb’s Q3 profit')
U.S. commercial insurance rates rose 5% in the third quarter, down from 10% in the second quarter, but there was considerable variation by line, with Property insurance increases accelerating, Casualty rate hikes slowing and Financial Lines rates falling, according to Marsh LLC’s quarterly pricing report. (Gavin Souter, 26/10/2022, Business Insurance, 'Property/casualty rates rise in third quarter; financial lines fall')
Brown & Brown Inc. reported third-quarter revenue of $927.6 million, up 20.4% from the same period last year, with organic revenue increasing 6.7%. Quarterly profit increased 10.0% to $161.0 million. The broker also completed 11 acquisitions during the quarter with aggregate annual revenue of $339 million, bolstering results. (Matthew Lerner, 25/10/2022, Business Insurance, 'Brown & Brown revenue increases 20.4% in Q3')
Northwestern Mutual is set to break its own industry-leading dividend payout record with an expected $6.8 billion in dividends to be delivered to policyholders in 2023. The company has paid a dividend every year for more than 150 years, totaling more than $150 billion. The 2023 dividend is projected to be the highest in company history across four of Northwestern Mutual’s product areas: Whole Life insurance, Term insurance, Disability Income insurance, and Annuities. The life insurance payout is nearly triple that of Northwestern Mutual’s nearest competitor, the company said. (Ryan Smith, 27/10/2022, Insurance Business US, 'Northwestern Mutual announces record dividend payout')
Mergers & Acquisitions
PCF Insurance Services acquired Infuse Insurance, an independent, community-based agency offering a comprehensive suite of Home, Auto, Business and Life insurance solutions. The PCF business model supports and expands on the agency’s continued success, finding strategic growth opportunities through a people-centric approach to selling insurance. This agency-centric operating model and entrepreneurial environment support PCF Insurance’s tremendous organic growth profile and aligns its national Partner Network through equity ownership, long-term investment plans and resources. (PC360 Reporter, 19/10/2022, ALM Property Casualty 360, 'Around the P&C insurance industry: October 19, 2022')
Longnecker & Associates completed its rebranding and will join NFP’s Compensation Consulting practice. NFP acquired Longnecker & Associates in 2017, and up to now the firm has maintained its own brand. The Compensation Consulting practice, part of NFP’s Executive Benefits platform, works with companies to develop tailored pay strategies and structures that help attract, retain and motivate talent. The team excels at creating programs attractive to executives, compliant with regulations and able to withstand corporate governance scrutiny.(PC360 Reporter, 19/10/2022, ALM Property Casualty 360, 'Around the P&C insurance industry: October 19, 2022')
Nearly a year after it completed the sale of its reinsurance business for an initial payment of $3.25 billion, Willis Towers Watson PLC expects to make some acquisitions of its own as prices of companies fall, its top Executive said while discussing the brokerage’s third-quarter results. WTW is also increasing its hiring, following an outflow of some high-profile executives during the uncertainty that surrounded Aon PLC’s abortive attempt to buy the brokerage. (Gavin Souter, 27/10/2022, Business Insurance, 'WTW looks to increase acquisitions as valuations fall')
Aegon NV (AEGN.AS) said smaller rival ASR (ASRNL.AS) would buy its Dutch insurance operations in a cash and shares deal worth around 4.9 billion euros ($4.93 billion) that would see ASR replace it as the country's second-largest insurer. Aegon will receive 2.5 billion euros ($2.52 billion) and a 29.99% stake in ASR, worth 2.4 billion euros at the closing price, the companies said in a joint statement. (Toby Sterling, 27/10/2022, Reuters, 'Aegon sells Dutch operations to ASR in $4.9 bln deal')
Acquisitive brokerage Acrisure LLC said it has agreed to buy U.K. brokerages Sutton Winson Ltd. and Sutton Specialist Risks Ltd., which have a combined staff of 175. Terms of the deal were not disclosed. Twickenham, England-based Sutton Winson is a privately owned Commercial, Employee Benefits and Personal Lines brokerage and has 140 staff. Its sister company, Bristol, England-based Sutton Specialist Risks, is a Managing General Agent, affiliated mainly with QBE Insurance Group Ltd., and has 35 staff.(Gavin Souter, 26/10/2022, Business Insurance, 'Acrisure buys 175-person UK brokerage group')
King of Prussia, Pennsylvania-based MedRisk, which manages physical rehabilitation for injured workers, has announced its acquisition of the specialty physical therapy network from Memphis, Tennessee-based Sedgwick Claims Services Management Inc. Terms of the sale were not made public. MedRisk said in a statement that the acquisition will expand its specialty physical services footprint in the U.S. managed care market. (Louise Esola, 26/10/2022, Business Insurance, 'MedRisk acquires specialty network from Sedgwick')
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Movers & Shakers
Goosehead Insurance, Inc. appointed Justin Ricketts as Executive Vice President, Technology and Partnerships. He served at Sabre as the Chief Product and Development Officer. (PC360 Reporter, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 28, 2022')
Cowbell announced that David Junius joined as Chief Financial Officer. He served as the Chief Financial Officer at SiriusPoint Ltd. (vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
Everest Re Group, Ltd. announced Shawn Austin joined as Senior Vice President, Head of Accident and Health for North America. He served as head of AIG’s North American Accident and Health business. (vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
Pool Re appointed Jonathan Gray as Chief Underwriting Officer elect. He served at Axis Re as President of Global Specialties. (vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
Canopius Group appointed Coleman V. Johnson as its Chief Underwriting Officer, U.S. and Bermuda. He served as Senior Vice President and Chief Underwriting Officer at Liberty Mutual.(vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
In further news...Canopius Group appointed Tracey Corrigan as Group Head of Change. She served at QBE as Business Transformation Leader. (PC360 Reporter, 7/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 7, 2022')
The Hartford promoted Meg Carter to Head of Global Specialty Distribution. She has held numerous roles of increasing responsibility across underwriting, sales and management, spanning multiple business units and disciplines. (vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
Signal Restoration Services announced Carrie Broussard joined as Vice President of National Accounts. She previously worked in non-profit and pharmaceutical sales. (vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
Eberl announced the appointments of Robin Roberson as Senior Vice President and Kenneth Knoll as Senior Vice President. (vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
Actuarial Risk Management Ltd. appointed Charles (“Chuck”) Chacosky as Managing Director Consulting Actuary. He served as Chairperson of the American Academy of Actuaries’ Life Financial Reporting Committee. (vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
CCC Intelligent Solutions Inc. appointed Michael Silva as Chief Commercial and Customer Success Officer. He served at Salesforce, where he was responsible for global and enterprise customers in the financial services segment. (vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
Allianz Global Corporate & Specialty appointed Mark Whayling as Entertainment Global Product Lead for the live sector. He worked as an Entertainment Underwriter at ProSight Syndicate 1100. (vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
CFC appointed George Beattie as Head of Innovation. He served at Beazley and lead the incubation underwriting function. (vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
Allianz Trade appointed Aylin Somersan Coqui as CEO and Chairperson of the board of management. She served as Financial Analyst at Morgan Stanley. (vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
QBE International Markets has appointed Sean Dollahon as Vice President, U.S. Marine Manager and Katie McCord as Vice President, Senior Marine Underwriter. (vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
American Property Casualty Insurance Association announced the appointment of Alan Schnitzer as Chair and Dino E. Robust as Chair-Elect.(vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
Sure appointed Vic Russo as Chief Financial Officer. He held the CFO role at Reachdesk and Electric AI. (vtariyal, 28/10/2022, ALM Property Casualty 360, 'People on the move in the P&C insurance industry: October 21, 2022')
HeadsUp Healthcare appointed Andrea Crawford Carter as Vice President of Operations. She served as Senior Director of Network Operations for Paradigm.(PC360 Reporter, 14/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 14, 2022')
Risk Placement Services announced that Russell Duffey joined as President of its program administration division, RPS Signature Programs. He previously served as Vice President of Market Relations for RPS. (PC360 Reporter, 14/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 14, 2022')
MSIG Holdings appointed Johan Slabbert as Chief Executive Officer. He served as Operating Partner and CEO at Augustus Specialty LLC.(PC360 Reporter, 14/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 14, 2022')
Valley Insurance Agency Alliance promoted Linsey Morris to Commercial Lines Coach. She served at Powers Insurance & Risk Management as a Commercial Account Manager.(PC360 Reporter, 14/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 14, 2022')
AXA XL Insurance promoted Michael McKinley to lead Construction Primary Casualty insurance business in North America. He previously served as Underwriter at Westfield Insurance. (PC360 Reporter, 14/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 14, 2022')
In further news...AXA XL Insurance, a unit of AXA SA, said that Head of Construction Innovation Rose Hall has been named Head of Innovation, Americas. Ms. Hall joined AXA XL in 2015 as a Construction Risk Engineer.(Mathew Lerner, 27/10/2022, Business Insurance, 'Axa XL promotes Rose Hall to head of innovation, Americas')
NFP appointed Juliana Pelaez as Mid-Market Leader for its Management and Professional Liability practice in Canada. She served as an Account Executive officer at Travelers. Further appointments include Angel Palumbo as Vice President and Marcelino Pina as Vice President. (PC360 Reporter, 14/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 14, 2022')
In further news...NFP also announced the appointment of David Bowcott as Co-Lead and Adrian Pellen as Co-Lead. (PC360 Reporter, 7/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 7, 2022')
Lockton appointed Sarah Heineman as Head of its Mountain West Regional Surety practice. She served at Sompo International as Senior Vice President and Head of Field Operations. (PC360 Reporter, 7/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 7, 2022')
USQRisk appointed Lael Chappell as Chief Marketing and Business Development Officer of Desq. He served as Director of Insurance Distribution for Attune Insurance, now Coalition Inc. (PC360 Reporter, 7/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 7, 2022')
International General Insurance Holdings Ltd. appointed Christopher Jarvis as Chief Underwriting Officer. He served at Canopius Managing Agency as joint Active Underwriter, Syndicate 4444 and 1861. (PC360 Reporter, 7/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 7, 2022')
Falcon Risk Holdings LLC announced the appointment of Bryan Harmsen as Chief Operating Officer, Danielle Cirillo as Head of Private Company Management Liability, Andrew Menger as Head of Public Company Management Liability and Tim Barry as Head of Financial Institutions. (PC360 Reporter, 7/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 7, 2022')
Ryan Specialty announced the promotions of Tom Curran, who is now Chief Wholesale Distribution Officer and James Shaffer, who is now Chief Retail Distribution Officer. (PC360 Reporter, 7/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 7, 2022')
Plymouth Rock Assurance Corporation appointed Paul Measley as its Chief Claims Officer. He served in various leadership roles at GEICO. (PC360 Reporter, 7/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 7, 2022')
ATI Restoration appointed Marco Flores as Chief Risk Officer. He served as Senior Vice President of Risk Management at Revantage Corporate Services. (PC360 Reporter, 7/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 7, 2022')
Global Claims Services appointed Brian Matthews as Chief Executive Officer. He served as President of Appriss Insights. (PC360 Reporter, 7/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 7, 2022')
Intact Insurance Group and RSA Luxembourg appointed Lynn O’Leary as CEO, RSA Luxembourg. She previously served as Chief Operations Officer, Global Specialty Lines at Intact. (PC360 Reporter, 7/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 7, 2022')
Ametros promoted Jayson Gallant to Vice President of Strategic Partnerships. He previously served as Senior Strategic Account Executive.(PC360 Reporter, 7/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 7, 2022')
One Inc appointed Damian Tanenbaum as their first Chief Customer Officer. He served as Chief Operating & People Officer at Blankfactor.(PC360 Reporter, 7/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 7, 2022')
Hippo announced that Kelly Wolf joined as Chief Human Resources Officer. She served at Zulily as VP of people. (PC360 Reporter, 7/10/2022, ALm Property Casualty 360, 'People on the move in the P&C insurance industry: October 7, 2022')
Apollo added Construction Physical Damage to its growing portfolio. To lead this expansion, Tim Cook has joined the firm as Head of Construction, reporting to Kate Foster, the newly appointed Divisional Head of Apollo’s Property team who will join in January 2023. Tim brings extensive experience in leading the strategic direction of successful construction and engineering business, having worked in the market for 37 years. He joins Apollo from Allianz Global Corporate & Specialty, where he was the North American regional head of energy & construction, most recently based in New York. (PC360 Reporter, 19/10/2022, ALM Property Casualty 360, 'Around the P&C insurance industry: October 19, 2022')
W.R. Berkley Corp. named Curtis E. Fletcher as President and CEO of Berkley E&S Solutions, a newly created Excess and Surplus Lines business. Berkley E&S Solutions will provide Casualty coverages for middle-market and large accounts. Mr. Fletcher, who is based in Seattle, last year was named Chairman of Admiral Insurance Group, Berkley’s E&S lines unit, and prior to that served as its President. He has been with the company for 24 years. (Claire Wilkinson, 27/10/2022, Business Insurance, 'Berkley names president, CEO of new E&S business')
DUAL North America has announced three key hires in its Transactional Risk team. The company has appointed Daniel Bond, Yash Jafari and Vanessa Pellettier as Senior Vice Presidents. Bond and Jafari join DUAL as part of the company’s strategic growth initiative to expand its offering to include Contingent Liability and Tax Liability insurance. Pellettier joins the company to provide claims advisory support to its insurer partners and insureds. (Ryan Smith, 28/10/2022, Insurance Business US, 'DUAL bolsters transactional risk team')
Insurance software provider Sapiens International Corporation has announced that Gary Sherne is rejoining the company as Executive Vice President and Chief Revenue Officer for North America. Sherne has more than 25 years of experience leading insurance software companies. Most recently, he served as Chief Revenue Officer and President of insurance at Vitech Systems Group. He also served as Invoice Cloud’s Senior Advisor, developing its office of the CRO. (Ryan Smith, 27/10/2022, Insurance Business US, 'Sapiens names new CRO for North America')
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All information provided in this Market Digest has been gathered from ALM PropertyCasualty 360, Business Insurance, Coverager, Insurance Business Mag, Insurance Age and Reuters.
