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For RT Specialty vice president Keith Shearer, the biggest hurdle players in the property excess and surplus (E&S) insurance scene have to face is predicting future property market trends, given that the past year was quite eventful due to the record-breaking losses brought about by natural disasters.
In this exclusive Insurance Business interview, Shearer discusses this problem in detail. He also shares his insights about the most important qualities someone should possess to succeed in insurance.
Tell us briefly about your company and its role in the insurance industry. What makes it different from other companies in the same space?
RT Specialty is a wholesale brokerage firm under the Ryan Specialty Group umbrella that provides specialty insurance services, proven leadership, outstanding industry expertise and quality services to agents, brokers and insurance carriers.
RT stands out because we have the best people who execute and deliver the win time and time again. Our team constantly is winning RFP’s, broker selections, and head to head battles in the marketplace. My favorite metric when being compared to our competitors is the buying power we have based on headcount to premium in force — it is not even close! Our retail partners love when an RT broker engages a market on their behalf to negotiate the insurance placement, because our carrier relationships are ready to quote quickly and aggressively because they know we will deliver the order. I believe our renewal retentions and new business hit ratios are unrivaled among our competitors.
What has been your greatest achievement so far?
First and foremost, I truly believe it is an honor and privilege to work for RSG/RT Specialty and alongside my colleagues, which, hands down, are the best brokers and greatest minds in the insurance space. Mr. Ryan has created this empire where we as brokers are encouraged to create products and embrace our entrepreneurial spirits. Every year we have our annual award ceremony in Chicago where we recognize milestones and achievements by individual brokerage teams.
In 2015, I received the “Patrick G. Ryan Chairman’s Award” which is the most prestigious award recognized within our firm since Mr. Ryan himself selects the recipient. I will never forget how special that moment of recognition was for me.
What’s the best piece of advice you’ve received in your career?
The best piece of advice I have received in my career is be who God made you to be and work like He is watching and you will always be encouraged to give it your best because you are here for His purpose.
What do you think are the most challenging issues facing the property E&S insurance industry today?
The biggest challenge I find today in the property E&S insurance segment is comprehending and predicting the future property market trends with any certainty, due to the amount of insurance capital that exists in the global marketplace today. As we left 2017, and with the largest property losses reported in recent times, the property E&S marketplace was calling for preparation of major rate increases with expectations of 20% or more entering 2018. Very quickly that has crumbled due to competition, stagnant treaty reinsurance costs, but largely due to the amount of capacity available. Due to these factors we are scarcely seeing single digit increases when renewed with incumbent carriers, but in most cases the insured will have a handful of new competing quotes ready to take the deal for a decrease over expiring - even after a loss!
What are the most important qualities for someone to thrive in the insurance industry?
To thrive in the insurance industry you must surround yourself with a great team of people and always remember to be “extraordinary” - which translates to “do not be forgettable” and to leave a good lasting impression. I also believe key success traits include over communication and the cliché of always under promising and over delivering. In addition to saying “please” and truly meaning “thank you”, it is important to remember that when you do follow through with what you say you are going to do, it is key to do it within the timeframe that you promised!
What are your passions or hobbies outside insurance?
I believe in all aspects of life it is important to be working and looking towards a goal; so my hobbies are no exception. Our family loves adventure, which always entails a colorful annual travel destination to look forward to as we tag a bucket list objective. I am also an avid outdoorsman and some of my most fond moments stem from the actual anticipation or build-up of the journey or trip, not necessarily the actual moment of harvest or catch. I can see so many parallels between my hobbies and insurance that flawlessly sync. I can take that same previous statement and apply it to an insurance placement that I am pursuing; all the preparation, planning, negotiating sometimes mean so much more than the actual “bind”- and you get to take the lessons learned and apply it to the next deal!
