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Target Markets Special Section American Safety Insurance  American Safety Insurance (ASI) entered the program business market in 1996, according to Joe Scollo, executive vice president in the company’s specialty insurance division. “One of our first programs was a pest control program for a small insurance company in Louisiana looking to expand into other states,” says Scollo. “We have since expanded our program writings, finishing 2004 at $78 million in gross written premiums. We look for programs that generate between $5 million and $20 million in written premiums, where the program manager has an established track record of underwriting a specialty book of casualty business and is willing to participate in the underwriting risk.”
Scollo says that ASI has three core lines of business—environmental, excess and surplus, and program business. “Our environmental line provides general, pollution and professional liability for environmental contractors and consultants as well as pollution for fixed sites such as storage tanks, real estate property, manufacturing facilities and storage facilities,” says Scollo. “We also offer contract surety bonds for environmental contractors and consultants. This business is written through various retail and wholesale brokers and is underwritten by experienced environmental underwriters employed by ASI. “Our excess and surplus line,” continues Scollo, “provides primary and excess general liability primarily for construction risks not being adequately served by the standard markets. The unit also provides product liability and general liability for habitational risks. These accounts, which are underwritten by ASI underwriters, are placed through selected wholesale brokers.” The third core line, according to Scollo, is ASI’s program line. “For specialty books of casualty business, ASI acts as the policy issuing carrier and outsources the underwriting and policy administration to a program manager with proven underwriting expertise in a given specialty casualty line. ASI assumes a portion of the risk as well, with the balance being assumed by third-party reinsurers. We seek programs that can be written on a nonadmitted basis, using our excess and surplus lines carrier, American Safety Indemnity Co.” Scollo says that ASI’s typical program is a general or professional liability program. “We have a total of 11 active programs. Some examples of the programs we have in force include: general liability and pollution for pest control operators; lawyers professional liability for small law firms; real estate agents E&O for small real estate agencies; bail bonds; package liability for small excess and surplus lines risks; and general liability for residential general contractors.” Scollo says that ASI can write programs in any of the 41 states in which American Safety Indemnity Co. is approved as a surplus lines carrier. According to Scollo, the softening market has not materially affected ASI’s business. “ASI seeks to write casualty business in underserved markets where there is less competition,” he says. “These classes are usually the more difficult to place risks and are not adequately being served by the standard markets. While overall conditions in the casualty insurance market have softened, we have not experienced the same degree of softening due to the specialty nature of the business we write.” Scollo says that ASI is actively seeking new program opportunities. “We still see program business as an excellent means to identify new special niche areas that can enhance ASI’s position as a leading provider of insurance for specialty risks in underserved markets. We are interested in partnering with program managers that have proven underwriting expertise in specialty niche areas.” Because of ASI’s active program business, it was only natural that the company chose to join Target Markets, says Scollo. “The association provides us with an opportunity to meet with experts in the program arena and to establish new and helpful relationships.” n |
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