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LIG Annual Report 2020-21

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LIGMarine.comANNUAL REPORT Marine ManagersCommercial Marine and Longshore Insurance 2020-21Scan the QR code to browse

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LIGWhere It’s Always Smooth Sailing

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We would like to say thank you.Here at LIG, we reflect on the past year’s journey in serving you and the industry as the leading Longshore & Commercial Marine MGA and Lloyd’s Broker. We helped our stakeholders successfully navigate the turbulent waters of the global pandemic. We continue to provide industry knowledge to help you determine the best coverage for your specific marine businesses while progressing our goals for the future. 2020-2021 has been a year of transformation, pivoting, and evolution for our company. We announced a new coverage tool, MarCover, and launched several mini-webinar series to continue to provide leading industry education despite the challenges of Covid-19. We discovered new ways of conducting business and took 2020 as an opportunity to strengthen our back office while innovating our client services. 2021 takes us further down this path. We will continue our quest to build online educational support for placing marine business while improving upon our foundational strengths and tenants of:• Service-first• Taking the time to do it right, and• Delivering with integrityIndependently owned and operated since 1989, and with our specialist, experienced underwriters, we continue to grow and develop. With a client base spanning across 37 states, D.C., the Caribbean, American Samoa, and Guam, and with our direct access to Lloyd’s and the London Market, we are in the position to provide the best insurance coverage that’s only available from a leading MGA, such as LIG.Today, our professionals across the country work daily to serve thousands of individuals and businesses nationwide. When we look at our success, we celebrate the relationships we have fostered over the years, identify areas of continued growth, and orient ourselves as we move forward — all the while anticipating the company’s growth for generations to come.Today, we would like to thank the many communities, businesses, and individuals with whom we work. Thank you for being a part of LIG Marine Managers. We look forward to 2022 and beyond with you.THANKYOU

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“ Vision without action is a dream. Action without vision is simply passing the time. Action with Vision is making a positive difference.”— Joel Barker, Lecturer & Author5.4% ORGANIC GROWTH IN 2020A Look at the Past Year600+ INSUREDS37 STATES AND TERRITORIES16 LIVE WEBINARS IN THE PAST YEAROFFICES IN 4 STATES + LONDON

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PRESIDENT’S REPORTIan R. Greenway, President & CEOTo say that the last year was unique is an understatement, but there is no value in me just reiterating the news we have all experienced. Pivoting from a substantially office-based operation to a remote work model in the matter of a few days, I am pleased to say, went relatively smoothly. Before the changes in early 2020, we had a handful of people working remotely, so most of our infrastructure was in place. Our COO will provide more later in this report.From the point of view of our clients and agents, it was great to see that most of them, after the initial shock rebounded well to a COVID way of working. The exception is those involved in the cruise ship industry. Those that handle baggage, provisioning, entertaining, repairing, and servicing cruise ships have suffered the most. Some are a tiny fraction of their prior selves, and some just no longer exist. Most of those will rebound in the coming months when cruising reopens.Interestingly, most terminals, stevedores, marine contractors, and river operators are in boom times, with many ports across the country recording record levels of cargo handled monthly.Our book of commercial marine remains bifurcated between the WC/Longshore lines, which remain highly competitive and largely unaffected by the market and the traditional marine, spiraling into one of the most challenging markets I have seen in my career.What has happened over the last year or two to cause such a change in the market? Whilst COVID is undoubtedly a part of this; I do not believe it is the main factor. If you can cast your mind back to pre-COVID times, and it is often challenging to remember pre-COVID, this change started well before, and the hardening market was apace from mid-2019 on.I believe several other factors are driving this:• Return to underwriting discipline• Record low-interest rates• Highest cat losses year over year• Social inflationPut all those forces together and add COVID-19, and there is no immediate end in sight for the hard commercial marine market, especially in the excess lines.

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PRESIDENT’S REPORT CONTINUED...Our balance of business here at LIG put us in the position that even with the drastic reduction in our cruise business, we still achieved organic growth of 5.4% in the year. When you add the complexities of working remotely, especially with our Lloyd’s underwriters, I am delighted with that result. Probably even more important is that we have not seen any significant service level drop from our fantastic team of underwriting and administrative assistants.I also must take this opportunity to thank every member of the LIG team from each corner of this country for working so hard to make this transition a reality. I look forward to a time where we can all be together again.The 2021-2022 period holds some amazing prospects for us, including the potential cruising industry rebound as well as extensive plans for new programs and operational enhancements in the coming year. Already in 2021, we have launched our proprietary MarCover website (more on that in our Technology Report). In addition, we continue to develop tools for our team to work more efficiently behind the scenes, including a faster, more accurate quoting and binding system, which will help us deliver more accurate and quicker results.We have also renewed every one of our underwriting programs and authorities without any significant changes in capacity or authority. Delivering underwriting profits to our carriers year after year has enabled us to maintain these programs and authorities in a way few others have been able to do.“Taking the time to do it right” has been one of the tenants of LIG over our 32+ year history, and this is proving to be the perfect base during these times of COVID and the hard market. As one authority underwriter remarked to us recently, “You did exactly what you said you would do last renewal,” and in the context of the situation at the time, that was an immense compliment. He renewed his line on our contract with increased participation.Ian R. Greenway, President & CEO“”I look forward to the time soon where we can meet with all of you in person. Meanwhile, please stay safe.

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LIG Corporate Values & GuaranteeWe are dedicated in treating all of our clients and agents fairly and with respect. Daily, as a guiding light we use these following company-wide principles: LIG is Committed to:• Spend the necessary time to clearly understand each risk.• Offer you quality coverage at the most competitive premium we can find in a reliable, consistent market.• Work to provide the broadest terms available based on the information you have provided on the account.• Release all quotes we receive to you, even those from a more competitive market.• Make all decisions based on what is best for the client, regardless of commission levels, contingency agreements, or any other financial incentives.• Provide all agents and clients with a copy of our complaint procedure.• Provide all our employees with continuous extensive training in Commercial Marine & Longshore which ensures the very highest professional standards. The Senior Management’s dedication and commitment ensures that these principles are reinforced on an on-going basis throughout our company.

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“I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.”— Jimmy Dean, Entertainer & Businessman

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“”I can’t wait to share some of our upcoming developments once they are released, and I am glad that LIG can continue to hold the strong position we came into the year with.CUO’S REPORTMark Greenway, Chief Underwriting OfficerNow that we have closed out FY2020-21, it is a good time to look back on the year that it was. Coming into this year, there was such a great amount of uncertainty. Despite having a plethora of our team with decades of experience, there was very little by way of a plan for how to deal with anything resembling a hard market, let alone a worldwide economic transformation. Luckily, as tends to be the case, some members on our team remembered the techniques and were quickly able to explain it to those who had never had to work them before. Once we had a good understanding of where the changes were occurring and where LIG would remain strong, we quickly turned our eyes to our strengths. Our market and coverage knowledge and our strong relationships have allowed us to look at building stronger facilities. Some of these facilities, I hope to be able to share with you shortly and some have already been announced. We are continuing to keep our ear to the ground to see what solutions we can design to partner between the market needs and the capacity available. With several major departures adjacent to the commercial marine space, we have seen a high number of accounts that have been with the previous carrier for 5+ years suddenly be non-renewed. Luckily, I can safely say that every class or line of business we were writing 12 months ago still has a home with LIG. LIG has historically had at least a handful of remote workers. Whole office remote work has caused us to transform the way we teach within our office and to the public at large. The resources developed for our webinar series have helped build an impressive resource library of internal documentation and education to make sure that everyone at LIG is as well-trained as possible. The new way of teaching has been so much more effective, we plan on keeping it even after we are back to being in closer proximity.

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COO’S REPORTDenise LoBue, Chief Operations OfficerIn spite of the last year’s challenges, 2020 also provided an opportunity for LIG Marine to rise to the occasion as we came together as a Team and, together with many of our agents and partners, we met these challenges head on. Thanks to forward-thinking and strategic planning, we developed agile company processes that were already in place to support an external workforce, and as a result, we were well-prepared to make the necessary adjustments to allow the company to work on a fully remote basis. We had our challenges, as expected, but we were able to successfully pivot our workforce and our resources, working together to maintain superior service to our agents and their clients during the pandemic.To help our agents and colleagues stay informed with industry best practices and to stay connected during these trying times, we launched a new webinar series, which has been well-received and very well-attended. Additionally, we also increased our efforts to stay connected on a person-to-person level with “virtual’ coffee dates, providing help whenever needed.We had forecast 2020 to be a fiscally strong year for LIG Marine. Despite the year’s unprecedented challenges, it was! A stellar accomplishment achieved without layoffs (we even added staff), with a renewed commitment to being the leader in our industry, and a very strong performance from all of our divisions. Like many businesses, the pandemic has required us to adjust to deal with the challenges, but it has also affirmed our role as industry experts, specialists, and advocates. In short, it has strengthened our resolve as client advocates and our promise to protect their assets and provide consistently excellent service.LIG Marine Managers offers much more than the underwriting and placement of insurance. We are the industry leader in marine and longshore insurance, and we are counted on to provide professional expertise, learning resources, and industry insight that enables our clients to prepare for their future success.We are proud to serve and work alongside you to support, protect, and achieve your goals that extend beyond the policy.“”

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As we reach the mid-way point of 2021, indications are that the country is rebounding. “Overall, it looks like the market expectation ofLongshore is for rates to remain steady throughout the balance of 2021.” LIG is the leading Longshore MGA in the United States with not only the authorities to quote the risk, but also the specialist knowledge needed to help our agents and brokers navigate this complex and confusing field.LONGSHORE MARKET VIEWTommy Bridges, Vice President Longshore2020 was a year unlike anything seen in the last 100 years. The United States has been plagued, no pun intended, with an ongoing pandemic, 30 named storms (13 of which became hurricanes), and 99 earthquakes, registering 5.0 or greater on the Richter Scale. All of this has taken an enormous toll in terms of lives lost, financial stress, and mental stability. In 2020, COVID-19 effectively shut down much of the world. The hospitality and entertainment industries, including the cruise industry, took massive hits to their bottom lines due to being shut down. “Social distancing,” “face masks,” and “hand sanitizers” have become the catchphrases for 2020. Even now, people and companies are rethinking how to do business. Many “white-collar” jobs have transitioned to “work-from-home” jobs. Paycheck protection programs for businesses and individual stimulus checks are being distributed to keep the economy moving.The Longshore world seems to be flourishing in the midst of the turmoil. The opportunities for marine contractors, because of the multiple hurricanes that hit the Gulf Coast, are tremendous. There have been instances in the Gulf Coast where marine contractors have been overwhelmed with job opportunities but faced shortages in the employee pool. Additionally, the U.S. Navy has plans to spend a total of $147 billion from fiscal year 2022 through 2026 to build 82 ships. And, with the Cruise industry opening back up in FL, TX, and other areas, the future looks bright for Longshore.The number of carriers actively writing in the Longshore market has remained constant for the last couple of years. We are seeing very few new carriers enter the market or older carriers departing. Currently, the movement of risks from one market to another does not seem to be as prevalent as it was in the past. Carrier retention seems to be high.

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“Overall, it looks like the market expectation ofLongshore is for rates to remain steady throughout the balance of 2021.” MARINE MARKET VIEWKen Baldwin, Vice President MarineDue to COVID-19, most underwriters now do not visit brokers very often, so communication and interaction have become difficult to initiate, thus it is sometimes hard to explain what is needed for the insured on a new account or even on a renewal, as some businesses have changed in these times, and that creates a longer time to properly place an account. With the current hard Commercial Marine market, this makes placing an account much more difficult and has also driven up rates. Sometimes, an account previously with one carrier now needs to be placed with multiple.Accounts with worse than normal loss history are very hard to place. The deductibles, rates, and premiums have increased significantly. Many times, an account with less than good loss experience has gone from having one company insuring most of their exposures to now needing to break down the various coverages and place them in separate policies with different companies. Accounts with little to no losses may still have an issue with placing their policies, as some insurance companies have changed their appetites and no longer wish to insure certain exposures. Yet, an Insured with low loss ratios and no large claims can be placed with ease, unless they have some very difficult exposures that they perform. If an account has little to no losses and normal exposures, their rates go up about 5% to 10% while the accounts with higher loss ratios and difficult exposures have gone up significantly higher or had markets that in the past were willing to insure them decline to quote. Some of the hardening has come about due to the many mergers of insurance companies in the past few years that write marine insurance. Several markets that once competed are now one company, so the competition has stopped and thus they quote higher rates than before. “”While all this hardening of the market has created some issues, we still have managed to nd broad coverage for our customers and make sure that their exposures are covered so if a large loss comes in, they are not nancially impaired.Commercial marine is full of confusing coverages and misunderstandings. LIG’s dedicated marine underwriters combine the broadest market access and underwriting authorities with the special skills to deliver those to the agent and broker workforce we serve.

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LIG is an accredited Lloyd’s broker, one of just a handful in the U.S. and the only one who is a Commercial Marine specialist. This provides us with not only direct access to Lloyd’s market, but also a variety of British carriers as well as P&I clubs.LONDON MARKET VIEWMark Greenway, Chief Underwriting OfficerThe overarching theme of the London Market is transition. Current reports are saying that even more capital is entering the market, despite profound losses the city is paying at large, including $4.7 billion of COVID-related claims for Lloyd’s alone. In previous years, the London Market was synonymous with Lloyd’s. Because of factors ranging from classes of business to sinking syndicates or the increased costs and unideal return oversight from the corporation, there is an increased focus on the company market, which will cause underwriters to change employers.The pandemic has been a particular change for many of the old guard in the room. A fair number of those with many years of experience will not return when the city is fully open again. Work conditions created in response to COVID have caused unexpected difficulty with the knowledge transfer as well as having created a shortage of experienced senior or book underwriters. Some of the people now in positions of seniority were new in the market when LIG became Lloyd’s brokers back in 2016. LIG continues to offer training on the U.S lines of business, and we are seeing far greater interest from our colleagues in London.There will be new changes in the way business is handled in the future. Plans within the probable revamp of the underwriting room in Lloyd’s use the terms “Digital First,” which is a real and meaningful transition from the way business had been done up until March 2020. Luckily, in 2019, the market was already driving business to electronic placement. I wonder what the results would have been if the e-trading platforms had not been in place before the pandemic. It is not an answer we have to know, but it is of note that continued development is occurring on new and more full-featured e-trading platforms as well as more complete back-of-the-house integrations to make tech less intrusive in the placement process. All of this is in addition to the growing consciousness of the fragility of the global shipping trade. With a high number of P&I club pool claims for 2018 and 2019, an estimated half a billion in pool claims in 2020, there was some talk about another rate rise for the clubs in the upcoming year. That was all before the Ever Given decided to get stuck, and the losses from that are a matter of fierce debate. All of this provides still more to keep an eye on for the clubs.

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“I remain condent that small setbacks will not stop the creative market from returning.”

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”“LIG Marine Managers is excited to continue to innovate and do our part to provide the best service possible and help achieve your companies and your client’s goals.

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TECHNOLOGY REPORTDenise LoBue, Chief Operations OfficerSince the onset of the COVID-19 pandemic, many of the changes reshaping how we work here at LIG Marine Insurance rely on technology, which ties into so much of what we do to serve our clients and colleagues.Technology has always been an important investment for LIG Marine Managers, which has made us the leader in the industry. With the pandemic, we had to make technical adjustments to support our shift to a remote workforce, with each team member set up with the necessary equipment and all necessary security requirements and protocols put in place, which was executed seamlessly. This provided us the ability to maintain great service to our clients. Prior to the pandemic, LIG Marine Managers has regularly invested in our technology infrastructure, with our proprietary agency management software system ensuring smooth and rapid processing of new policies. With such a robust system, we were able to react quickly to the challenges of the pandemic to maintain good service to our clients, which has always been our greatest priority. To further support our colleagues and our clients, the technology team worked closely with our underwriting team to launch LIG’s webinars series, providing valuable industry- specific information. We also launched MarCover, an online tool to help our agents identify possible exposures on marine accounts and the coverages needed for them.LIG Marine actively works to implement value-driven, strategic solutions and support new technologies with enhanced security in an increasingly remote space to support the needs of the workforce and our clients. Along the way, our technology group strives to meet challenges that require innovation, leadership, accountability, and exceptional customer-centric services that fully support and empower our team and our clients. Leveraging Technology at LIG has always been at our core not only to enhance our in-house operations, but also to provide tools and resources to learn and understand our fields. Our proprietary Claims Control Center is a state-of-the-art claims system designed exclusively for Marine Businesses with the ability to provide detailed analytics to the insured so they can see how and where their claims are happening and target loss controls.

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EDUCATION REPORTIan R. Greenway, President & CEOWhilst we have provided online classes in the past, LIG’s history has always focused on face-to-face training, whether it be for our Certified Marine Insurance Professional (CMIP) classes, for the Society of Certified Insurance Counselors, for one of the many other professional organizations, or for in-house training for agents and carriers. That came to an abrupt stop in early 2020.To continue providing quality Marine and Longshore education to insurance professionals across the country and London, we pivoted to live online webinars with Q&A sessions at the end of each. We also archived these on our website for easy access 24/7. Over the last year, we have presented numerous webinars, all of which can be found at• Dredging Up the Real Exposures • What is a Recreational Vessel?• Marine Excess/Umbrella • Collision and Towers Liability • P&I Club Marketplace Panel Discussion • Advanced MEL • Protection & Indemnity • Longshore Situs & StatusFurther, our spring/summer series has seven webinars planned. The dates for each are set, and they will be added to, where both the past and current webinars can be found.We intend to return to in-person seminars as soon as the world allows. We believe that attendees get so much more out of this type of seminar and the interaction with fellow students across the country. The first scheduled seminar right now is a graduate CIC in July in Florida follow by our October CMIP planned in Boston. This list is changing weekly, so to find the most up-to-date list of available seminars, please go to has been an integral part of LIG since the day we opened our doors. We provide training to agents, brokers, and companies through webinars, live seminars, articles, blogs, and social media.• Marine Care, Custody or Control Part 1 • Marine Care, Custody or Control Part 2 • The State of the Commercial Marine Market and Panel Discussion • Longshore Coverage, Payroll, Mod and Rules • Maritime Employers Liability and Subcontractors• MEL, The Basics• Understanding Longshore 101 Scan for WebinarsScan for Seminars

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CMIP ReportIan R. Greenway, President & CEOThe Certified Marine Insurance Professional Designation Program (CMIP) is the premier practical training and Designation Program in Marine and Longshore Insurance. Presented by the International Institute for Marine Insurance Studies in conjunction with LIG Educational & Consulting Services, the CMIP Designation sets you apart as having a certified level of knowledge and expertise in Commercial Marine and Longshore Insurance and provides you with the added edge needed in today’s marketplace.To Earn your designation as a Certified Marine Insurance Professional, you will need to attend each of the four required seminars and pass an online test immediately following the seminar:• Insuring Waterfront Businesses, Boston, October 2021 Our Insuring Waterfront Businesses seminar covers marine general liabilities, care custody control, and umbrella/excess. Attendees will learn about a variety of liabilities including Tankerman’s and Wharfingers legal liabilities.• Recreational Marine Insurance, Fort Lauderdale, April 2022 Recreational Marine Insurance examines and discusses Hull, P&I, and other coverages that relate to charter boats, sightseeing, and casino boats. Exposures consisting of Builders Risk, Inventory, Molds, and others that relate to boat manufacturers and builders are explored. • Insuring Marine Employees, San Diego, October 2022 Our Insuring Marine Employees seminar focuses on workers compensation, longshore, and OCSLA. We discuss common endorsements and their advantages as well as payroll allocation and liabilities.• Insuring Vessel Owners & Operators, Houston, October 2023 Insuring Vessel Owners & Operators provides an in-depth review of coverage forms and underwriting considerations. We will remove the mystery of Marine Insurance jargon and make you comfortable in this field.Access the CMIP website here: www.iimis.orgScan for CMIP

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LIG IN THE COMMUNITY REPORTLaura Jay, Custom Account BrokerTo no one’s surprise, COVID-19 put a “no-wake zone” in the path of our in-person community outreach activities. When it comes to community outreach our Team operates as a family. Before COVID we rallied together in a common purpose of improving our community. Now that it is safe, we will come together once again to help our community as LIG is deeply committed to continuing our in-person outreach efforts within our own backyard of Tampa Bay. BREAST CANCER AWARENESS MONTHCOMMUNIT YTAMPA BAY WATCH CLEANUPLIG made waves in the community prior to COVID, including company-wide participation in a Tampa Bay Watch cleanup. Tampa Bay Watch is a local non-profit organization which is dedicated to restoring the Tampa Bay estuary. In partnership with the Great American Clean Up, Tampa Bay Watch hosted a Fort DeSoto beach cleanup. This event was attended by dozens of LIG employees and their families. With our time, teamwork, and dedication, pounds of trash were meticulously picked up and removed from our white sandy beaches to help keep Fort DeSoto pristine. We also had our Team and their families gather together for a BBQ afterwards to commend all who contributed.The month of October brought two opportunities to the forefront. In honor of Breast Cancer Awareness month, the entire staff was encouraged to wear pink in solidarity. Like the ripple of a stone in the sea, often a small act helps to expand outward, keeping the conversation on target with hopes that, one day, a cure can be found for a disease that impacts so many families. On the 31st, Halloween afforded LIG the chance to sponsor two cars for a local school’s “Trunk or Treat.” Our team and their families collected over 2,500 pieces of candy for handing out to over 800 kids. Seeing the smiles on the children’s faces when they saw how we had decorated the cars just for them made it so worthwhile. Fingers crossed, we’ll have many more fun Halloweens to come! Thanksgiving brought LIG in touch with one of our local food banks. Within the office, leading up to that holiday, we organized a very successful food drive, collecting cans and other non-perishables for local families in need. We are blessed to have each other within the LIG family as well as all of you as friends and business partners. The Tampa Bay Area is so important to LIG Marine Managers, as are all our communities surrounding our other offices and beyond, and your continued support and encouragement will allow us to further strengthen those community ties.

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LIG ASSOCIATION & AFFILIATIONSWe thank all of our hard working associates and affiliates for their continuous support and addressing issues which arise promptly, and for the obvious drive and passion they have for our marine industry. LIG appreciates your contributions, support and we greatly value you and your dedicated team. Thank you! • Florida Marine Contractors• Fort Lauderdale Mariners Club• Houston Mariners Club• Institute of Certified Workers Compensation Professionals• Insurance Professionals of St. Petersburg• Marine Industries Association of South Florida• Marine Insurance Association of Seattle• National Alliance Research Academy• National Speakers Association• San Francisco Association of Marine Underwriters• Society of Certified Insurance Counselors• Tampa Bay Mariners Club

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Geographic ReachLIG Geographic Reach, Offices, and Active BusinessesLondon Office+44 (0)20 3823 6302California Office(415) 690-6214Texas Office(713) 853-9442Head Office(727) 578-2800NortheastOffice(215) 554-6777

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“A vision is not just a picture of what could be; it is an appeal to our better selves, a call to become something more.”— Rosabeth Moss Kanter, Harvard Business Professor

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“Perfection is not attainable, but if we chase perfection we can catch excellence.” — Vince Lombardi, Coach & National Football League ExecutiveSt Petersburg | FL (727) 578-2800Houston | TX(713) 853-9442LIG Headquarters I 111 2nd Avenue NE I Suite 1101 I St Petersburg, FL 33701San Francisco | CA(415) 690-6214Philadelphia | PA(215) 554-6777London | UK+44 (0)20 3823 6302LIG Marine Managers is a Commercial Marine and Longshore MGA, and Lloyd’s Broker.