Tom Stewart Senior Vice President Commercial Lines

Who We Are Acordia Represents all Major Carriers, both Domestic and International Acordia Globally Underwrites $6 Billion in Premium Acordia Tampa Bay Team Underwrites $450 Million in Premium and Growing

Acordia U.S. Locations

Restrictions of Standard Markets: New Business Process starts 120 days out for underwriters; 90 days for Renewals Regional Carriers place moratoriums when they reach allocated “monthly premiums” Loss Ratios not more than a 40% over the last 5 years; previously 65% Loss Ratio

Restrictions of Standard Markets: (continued) National carriers are demanding multi-lines of coverage No hazardous class underwriting Increased threshold eligibility for dividends min now $50,000 was $25,000 Offering non-stock premium discounts

Restrictions of Standard Markets: (continued) Only a handful of carriers are offering Incurred Retros Paid Loss Retros even more scarce, with program maximum as high as 2.10 Many renewals with Consent to Rate, up to 200%

Restrictions of Standard Markets: (continued) Carriers are re-evaluating production sources Carriers are terminating contracts for agencies who have low hit ratios

Underwriting Criteria Making Coverage Difficult to Place: 1.25 or higher Experience Modification Factor, regardless of single shock loss driving modifier Not in business more than 3 years Weak or Suspect Financials Loss Ratios greater than 40%

National Accounts Arena: Carriers are increasing threshold to $1,000,000 was $500,000 Financials are much more closely scrutinized; cash flow options not offered and requiring LOC posted for ultimate losses All supporting documentation must be received prior to starting the underwriting process Large deductibles are being quoted much more often, was as low as $100,000 now $250,000 minimum deductible and higher

Absence of Standard Markets forces employers to find alternative coverage: Assessable Self-Insurance Funds Rent-A-Captive PEO’s on non-rated paper Non-rated carriers JUA @ up to 400% higher than prior renewal Go bare?!? Out of Business?!?

Most Difficult Classes to Place: Small Contractors 2-3 person General Contractors Assisted Living Facilities Temp Agencies PEO’s

Employers are Experiencing: Quotes from underwriters released to Brokers only 24 hours prior to renewal Only one carrier quoting versus multiple carriers and options offered in the past