The insurance industry is evolving rapidly. Insurtech, big data and artificial intelligence are changing the way the industry approaches business, and the demands of the modern workforce are re-shaping our offices.
Dan Negron, senior underwriter at
TT Club, is celebrating 30 years in the insurance industry. He’s witnessed three decades of industry evolution and has shared his reflections with Insurance Business.
30 years is a long time! Have you seen a lot of change in three decades?
If you think about it, the entire world was a very different place 30 years ago. Ronald Reagan was President of the United States, Margaret Thatcher was Prime Minister of the UK, the Berlin Wall still separated Germany and there was little sign of the bull market collapse of 1987 which came to be known as Black Monday.
The business world was also a very different place in 1987. A business suit was the norm, unlike the business casual atmosphere that has become popular since the dot.com craze of the 1990s. The internet was just in its infancy, and the World Wide Web did not even exist. Aside from personal contact, business communications were conducted primarily by mail, while land-line phone, telex, and telefax were the primary means of communication
Over the years,
the business world evolved. The advent of the internet increased the speed of communications. Private offices gave way to workstations. Typewriters gave way to desktop computers, which in turn gave way to the laptop computers, tablets and cell phones we have today. While this appears to have lessened the number of personal interactions with brokers, it has widened our ability to communicate with a greater number of people over longer distances.
How have you seen the Americas market change over time?
In 1987, New York City was an important center for the insurance industry, where most significant insurance brokers and underwriters maintained their offices. Insurance submissions were once delivered in person by brokers or were mailed in hard copy through the regular mail.
The shipping industry also had a significant presence in New York City, although today, that presence is virtually gone. At the time, TT Club insured many steamship lines that no longer exist, and, over time, the Club has adapted to the changes in the industry by broadening its offering to a new breed of logistics operators. While there had been a number of courier companies operating at the time, the fact is that the various sectors of the logistics industry tended to operate independently of each other. The closest thing to the
logistics industry we know today was multimodal transport. This, of course, has changed over time, and the logistics industry now offers a variety of services, packaged to meet the demands of shippers. TT Club has also tailored its products to meet the needs of these operators.
Do you remember the first piece of new business you brought in for TT Club?
Absolutely, your first piece of business is not something you easily forget. When I first arrived, I underwent a three-month training program at the TT Club’s offices in London. The purpose was to introduce me to the insurance forms underwritten by the Club and to learn the principles of underwriting. Just before leaving for London, I received a submission from a broker in Houston to insure a stevedoring company located in the US Gulf Coast named Port Stevedoring. During my time in London, I analyzed the file, calculated a premium and forwarded a proposal to the broker, which was accepted. This experience proved to be very enlightening, in that I came to understand the interdisciplinary nature of the underwriting process. I learned that I needed to understand the services being provided by the operator, the operator’s exposure to potential legal liabilities, and the need to structure an insurance program in line with those exposures.
What are you seeing as the biggest growth sector for the Americas at the moment?
Today, we see the logistics industry, with its high-tech approach to business, as a significant player in economic activity. Logistics operators provide a multitude of services under special contracts that the standard insurance market finds difficult to insure. Their services incorporate all modes of national and international transport and can involve virtually
any service in the supply chain process. Rather than rely on a patchwork of boilerplate policies, we view the TT Club’s program as a solution to the complex exposures that logistics operators face. TT Club’s bespoke approach to insuring these operators has placed us in a very favorable position, particularly in the US over the past seven to eight years.
Do you expect this growth to continue?
We are cautious about the forecast for growth in this sector. At this point in time, we have considered many of the major operators for cover, and there are still many target operators to be considered. But the industry is undergoing some rationalization through mergers and acquisitions, and we are monitoring these developments closely. We are therefore focusing our efforts on maximizing our offering to our existing members by offering TT Club’s cargo or shippers-interest insurance to them. This will give their customers the added benefit of direct-damage insurance for their cargo while it is in the custody of the logistics operator.
What type of relationships do you have with the brokers?
We view brokers as critical players in placing and renewing business with the Club. Interestingly, while the advent of modern communication has actually lessened our personal contacts, it has allowed for a significant increase in our overall communications with them and to the exchange of documents quickly over greater distances. Today, our business contacts in the Americas stretch from as far north as Canada, down to the southern cone of South America. We believe that if we support brokers in their marketing and servicing efforts throughout the region, TT Club will benefit from their support as well. This strategy has proven very successful in our growth efforts here in the Americas over the past five to eight years.
If you could pick only one, what is your favorite part of your job?
I find it very rewarding interacting with members and their brokers. I believe that part of my function is finding solutions to their insurance and risk management concerns.
Looking back, if you could give your younger self one piece of advice in the early stages of your TT Club career, what would it be?
Embrace your most difficult challenges, for they are the source for your greatest personal growth.
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