Marty Rhodes, President and CEO of Stephens Insurance, concludes the conversation with Frank Thomas in this episode of Stephens Viewpoints. Frank and Marty discuss complying with The Affordable Care Act, covering cyber liability, the future of Stephens Insurance, and how the Stephens culture helps retain talented team members. Listen in to learn more.
Key Takeaways:
[:32] The 2700-page Affordable Care Act introduced many issues into employee benefits insurance. Stephens had a team study it, and start doing seminars in Arkansas, to help businesses prepare. Challenges continue today, with rising rates.
[2:35] Data analytics plays an important part in assessing a client’s insurance coverage needs. The Stephens benefits platform has a data analytics expert, an actuary, two pharmacists, an M.D., and an attorney; all expert in employee benefits.
[4:00] Why does Stephens — a mid-sized insurance broker — have a doctor and pharmacists on staff? Marty explains.
[4:48] Marty talks about how Stephens benefits platform specialists serve their clients.
[6:34] Cyber liability is another current insurance coverage issue. A lot of companies are considering it, but it needs to be more widely adopted. Stephens offers this coverage.
[8:23] Marty discusses Stephens Insurance’s efforts in cyber security coverage.
[9:13] Stephens Insurance has an exciting future, building on the progress of the last several years. They continue to focus on bringing in new, talented, team members that will fit in the Stephens culture. Stephens will continue to focus on client relationships.
[10:23] Stephens platforms combine new talented members and members with years of experience to mentor them. The emphasis is quality in the team, in the products, and the service. Stephens relationships are built on quality of service and products.
[12:09] Having the right culture in place is the key to retention. The Stephens culture includes team, family, service, relationships, and quality. It’s a tremendous place to be.
[13:23] That concludes this podcast series. For more information, please contact Stephens Insurance at (501) 377-2000.
Mentioned in This Episode:
The Affordable Care Act of 2010
The Wall Street Journal, Soaring Premiums under the ACA
Insurance products offered through Stephens Insurance, LLC., National Producer Number 8844362. Securities offered through Stephens, Inc., Member NYSE, SIPC.
“This podcast should not be copied, distributed, published, or reproduced, in whole, or in part. The information contained in this podcast is not financial research, nor a product of Stephens Research. Stephens does not make any representation or warranty as to the accuracy or completeness of the statements or any information contained in this podcast, and any liability therefore is expressly disclaimed. The views expressed in this podcast are not necessarily those of Stephens, and Stephens is not providing any investment, financial, economic, legal, accounting, or tax advice, or recommendations in this podcast. In addition, the downloading of this podcast by any listener does not make that listener a client of Stephens.”
Marty Rhodes, President and CEO of Stephens Insurance, continues the conversation with Frank Thomas in this episode of Stephens Viewpoints. Frank and Marty discuss insurance capacity, loss control, risk management, and how Stephens builds its teams of loss control engineers, and the loss control services they provide.
Listen in to hear more.
Key Takeaways:
[:34] Marty talks about insurance capacity, in relation to recent storms. Even a Katrina-sized event would not ‘move the needle,’ in the property marketplace today.
[2:13] Marty contrasts individual loss catastrophes against large area catastrophes. While Katrina certainly qualified as a large catastrophe, the current policyholder surplus is more than ample for anything less than multiple major events throughout the year.
[3:58] Stephens brokers communicate frequently with clients, giving recommendations for preventive measures, loss control, and response action items for catastrophes.
[4:51] Stephens loss control engineers help educate clients on construction codes for Tier 1 coastal areas subject to hurricanes.
[5:31] Loss control engineers educate workplace clients. Middle market and smaller business use this service. Stephens loss control engineers are qualified to give mock OSHA inspections, so clients can correct deficiencies, and work to prevent incidents.
[7:41] Marty talks about how much time loss control engineers spent in visiting and educating the first client of the Risk Management Unit in 2009. Loss control is essential.
[9:15] Depending on the complexity of the account, Stephens loss control engineers schedule visits to the various sites, and also communicate with clients, between visits.
[10:26] Loss control engineers understand OSHA regulations, and the issues of the client sector they serve. Stephens loss control engineers are highly experienced.
[11:06] Stephens Insurance is relationship-driven. Stephens builds teams of experts in the sectors they cover. Last year transportation was their fastest-growing client sector; oil and gas, and public utilities are major sectors, and hospitality is quickly growing. They have teams of risk management experts in each of these sectors.
[13:18] In our next episode, we’ll be discussing notable upcoming changes in the insurance industry businesses should watch for.
[13:27] For more information, please contact Stephens Insurance at (501) 377-2000.
Mentioned in This Episode:
Insurance Services Office Inc.
Insurance products offered through Stephens Insurance, LLC., National Producer Number 8844362. Securities offered through Stephens, Inc., Member NYSE, SIPC.
“This podcast should not be copied, distributed, published, or reproduced, in whole, or in part. The information contained in this podcast is not financial research, nor a product of Stephens Research. Stephens does not make any representation or warranty as to the accuracy or completeness of the statements or any information contained in this podcast, and any liability therefore is expressly disclaimed. The views expressed in this podcast are not necessarily those of Stephens, and Stephens is not providing any investment, financial, economic, legal, accounting, or tax advice, or recommendations in this podcast. In addition, the downloading of this podcast by any listener does not make that listener a client of Stephens.”
Marty Rhodes, President and CEO of Stephens Insurance, joins Frank Thomas in this episode of Stephens Viewpoints. Frank and Marty discuss the beginnings of Stephens Insurance and the array of services Stephens Insurance currently offers. They also discuss the mergers and acquisitions trend in the insurance industry, and what companies should look for in a provider, for their risks. Listen in to hear more.
Key Takeaways:
[:37] Stephens Insurance was formed in 1987, serving life and health insurance clients. In 2005, Marty joined the company, with a background in property and casualty. Stephens built a property and casualty practice as well, and has grown significantly.
[1:20] Stephens Insurance clients are broadly varied. One carries $7.5 Billion in coverage. Some clients have tens of thousands of employees; some have 10.
[2:01] What are the main industry sectors that Stephens Insurance serves?
[2:31] Stephens Insurance offers employee benefits, commercial insurance, personal insurance, and all facets of brokerage business.
[3:00] Marty explains how the insurance industry survives economic downturns.
[4:37] Stephens Insurance has a robust platform, including specialists in data analytics, risk management, and in the various industry sectors they cover.
[5:53] Marty talks about the importance of the oil and gas industry to Stephens Insurance.
[6:51] What does big data contribute to the insurance process? Marty makes it clear.
[7:37] Consolidation in the insurance industry creates fewer choices for the clients, and company cultures do not always match. Stephens Insurance looks at additions to the group to see first if they fit into the client-driven, service-driven Stephens culture.
[8:50] Are insurance mergers and acquisitions approaching a bubble? Marty ties their sustainability to low interest rates. How long will rates stay low?
[9:55] Companies searching for a provider should look for a team that is concentrated on servicing their needs, with a large platform that will perform all the functions their risks require, such as good loss control engineering, risk management experience, claims advocacy, management liability, cyber and fiduciary liabilities, and so on.
[11:03] For more information, please contact Stephens Insurance at (501) 377-2000.
Mentioned in This Episode:
Insurance products offered through Stephens Insurance, LLC., National Producer Number 8844362. Securities offered through Stephens, Inc., Member NYSE, SIPC.
“This podcast should not be copied, distributed, published, or reproduced, in whole, or in part. The information contained in this podcast is not financial research, nor a product of Stephens Research. Stephens does not make any representation or warranty as to the accuracy or completeness of the statements or any information contained in this podcast, and any liability therefore is expressly disclaimed. The views expressed in this podcast are not necessarily those of Stephens, and Stephens is not providing any investment, financial, economic, legal, accounting, or tax advice, or recommendations in this podcast. In addition, the downloading of this podcast by any listener does not make that listener a client of Stephens.”
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Mitch Harless, Senior Vice President for Claims Management, concludes the conversation as Frank’s guest in this episode of Stephens Viewpoints. Frank and Mitch discuss why an indemnification specialist is an important adviser to help clients understand oil patch indemnification and mutual indemnification agreements, both before and after an incident. Listen in to hear more.
Key Takeaways:
[:29] There is a lack of clarity about the indemnification process, which is a highly specialized field. Firms that have claim management expertise in this area bring added value to businesses in this industry.
[1:11] Besides bringing expertise, what communication skills are needed for a claim management specialist? Mitch explains how he helps people visualize the complex relationships involved in indemnification obligations.
[1:52] Mitch offers flowcharts and dynamic discussions, with a review of real-life examples of the indemnification process.
[2:04] How long does it take for specialists to achieve results? The BP case took about five years to resolve. Complex issues involving insurance and indemnification agreements can take months to years to resolve.
[2:48] Mitch explains the benefits of a pre-loss review by a claims management specialist, who can offer insurance programs that respond best to the particular needs.
[4:04] Mitch has a final suggestion for oil services firms undecided as to whether they need to consult with an indemnification claims management specialist. Establishing a relationship with a specialist may achieve better outcomes than would otherwise occur.
Mentioned in This Episode:
Deepwater Horizon Oil Spill Litigation
Mitch Harless, Senior Vice President for Claims Management, continues the conversation as Frank’s guest in this episode of Stephens Viewpoints. Frank and Mitch look at a case study — the contractual dispute from the Deepwater Horizon disaster of 2010, and the insurance claims at its center. An indemnification specialist is an important adviser to help clients understand oil patch indemnification and mutual indemnification agreements, both before and after an incident. Listen to hear more.
Key Takeaways:
[:26] Mitch Harless reveals the focus of the contractual dispute between the parties from the Deepwater Horizon disaster of 2010: environmental damage! Whose tower of insurance was at the center of the dispute?
[1:00] The incident occurred in April, 2010. In November, 2011 a District Court issued a ruling that BP could not access Transocean’s $750 million tower of insurance.
[1:53] High-value disputes become complex, and that was not the end. The United States Court of Appeals for the Fifth Circuit, in New Orleans, heard an appeal. In March 2013, they reversed the ruling of the District Court, in favor of BP.
[2:59] Transocean asked the Circuit Court of Appeals for reconsideration, to hear from the Texas Supreme Court. In August 2013, the Fifth Circuit withdrew its March opinion. How did they involve the Texas Supreme Court?
[3:55] The Texas Supreme Court examined three questions certified by the U.S. Court of Appeals for the Fifth Circuit. In February, 2015, the Texas Supreme Court answered those three questions. What was the effect of their answers?
[4:36] Transocean was able to preserve for themselves their $750 million tower of insurance.
[4:44] Did this dispute have more of an impact on the legal process or on insurance practices? This extreme example documents the dire financial ramifications for parties of indemnification agreements.
[5:15] What changes did the insurance industry make after the Deepwater Horizon disaster of 2010? What is the importance of indemnification agreements today?
[6:01] Next and final episode of this discussion: How specialists shed light on the murkier aspects of the indemnification process for stakeholders!
Mentioned in This Episode:
Deepwater Horizon Oil Spill Litigation
U.S. District Court for the Eastern District of Louisiana
Mitch Harless, Senior Vice President for Claims Management, is Frank’s guest in this episode of Stephens Viewpoints. Frank and Mitch discuss oil field insurance issues, and why it is important to understand oil patch indemnification and mutual indemnification agreements, both before and after an incident. Listen to hear more.
Key Takeaways:
[:41] Mitch Harless tells of his career path in the Property & Casualty insurance industry, from 1983 until today.
[1:43] Mitch spent 20 years on the carrier side focused on the oil and gas industry.
[2:14] What are the complexities of oil patch indemnification in the oil services sector?
[2:54] What are the three key businesses involved in drilling an oil well? With which parties does Stephens normally interact?
[3:44] There are two typical contracts in the oil and gas industry for drilling a well: a drilling contract, usually by the IADC, and a Master Service Agreement, or MSA. What do they have in common?
[4:25] Mitch describes knock-for-knock, or mutual indemnification agreements.
[5:10] Stephens’ clients look to Stephens for expertise in the nuances of indemnification agreements as they pertain to the oil and gas industry.
[5:58] The claims management expert offers pre-loss reviews of contracts and indemnification, and post-loss claims management practices in the event of a claim.
[6:55] Mitch gives additional detail about knock-for-knock claims. The focus is on which employee, belonging to which employer, was injured in the incident.
[7:47] As a diversified agent, Stephens might represent either the operator, or the service contractors.
[8:27] The indemnification process is very complex. A number of states have anti-indemnification statutes, which have a compelling effect on an indemnification agreement. Case law, such as Corbett, adds to the complexity.
[9:20] Next episode: Study of the fallout from the Deepwater Horizon disaster of 2010!
Mentioned in This Episode: