RT Specialty

Joe Feitz

This article is based on an interview between Insurance CIO Outlook and Joe Feitz, senior vice president - of Workers Comp New Product Development at RT Specialty

In addition to being one of RT Specialty’s top workers’ compensation brokers, Joe's current role includes working with internal teams to develop proprietary WC Specialty programs for underserved business classes. Joe joined RT Specialty with the 2020 merger with All Risks, Ltd. as a broker with the industry insight and deep relationships needed to expand and support new programs for emerging industry verticals. Prior to joining All Risks, he worked in sales and claims roles for both insurance carriers and a national insurance brokerage. Joe holds two designations from the National Alliance: Certified insurance counselor and certified risk manager. His dedication to safety extends beyond his work. Joe is actively involved in the Foundation for Aquatic Safety and Training (FAST), which is dedicated to water safety and drowning prevention. He and his daughter participate in the annual Alcatraz and Golden Gate swims in support of FAST

Structuring the Product Development Process Being Structured to Maintain Agility and Quickly Adapt to Emerging Challenges

The insurance marketplace and the economy at large are dynamic, with things changing all of the time, creating challenges for our retail agents and their clients. There are always new types of businesses or growth industries that pop up. You’ve got to have your ear to the ground to discover what is next. We currently offer exclusive programs for 11 hard[1]to-place classes underserved in the marketplace. For example, this year, we launched a vertical in restoration contractors because of the pent-up demand in the market due to the unique exposures presented by that class of business. So, if there is a need in the market, we start to build the institutional knowledge to go after that next vertical. We are a very flat organization at RT Specialty, which allows us to have a collaborative approach, stay in constant contact with our sales force and their clients, and provide solutions that will help address their needs. We have done a lot of outreach over the years and have built credibility in these verticals, so agents are reaching out to us because they know we have deep knowledge and specialize in workers’ compensation. We are in a never-ending state of research to find new trading partners or market segments that need our capacity. So much of what we do is market-driven, and you must pay attention to clients, listen to what they are saying, and what their needs are to grow in our business.

“The insurance marketplace and the economy at large are dynamic, with things changing all of the time, creating challenges for our retail agents and their clients”

Experiences from Risk Retention Programs That You Were Recently Involved In

The overwhelming majority of what we place is first-dollar coverage, also known as guaranteed cost insurance. This is unsurprising, given that workers’ compensation rates are at generational lows. Where the rest of the P&C market and property market rates are at the highest levels – workers’ compensation is the opposite. Insured is looking to come off risk retention because the guaranteed cost space we thrive in is so competitive.

Challenges in Your Business That Current Services Are Unable to Solve

We are well-positioned to provide a workers’ compensation solution, especially in our program classes. Due to relatively low pricing currently in the market, we are finding the higher hazard micro businesses to be the most challenging to place. Workers’ compensation has no maximum medical limits as to what gets paid out to injured workers, so when you have a small policy and no limits, it can be tough to determine the correct premium to charge. There is a struggle to find markets to work with because they don’t want to play in that space where you have low premium and unlimited exposure. This is where there is an opportunity to grow. Advances in AI and underwriting algorithms have helped us find solutions for some of these risks coupled with advancements in technology to service them. The RT Connector is a platform that our company has developed for traditional E&S coverage and classes to help us in this micro space. We are working to develop a workers’ compensation solution to pair with those classes so retailers have a multi-line solution for their clients. We are looking to work with carriers with the understanding and technology to price and service these small policies profitably and efficiently. Our experience in this size and type of account is helping us find those carriers.

Emerging Trends in Insurance and Risk Management That You Believe Will Significantly Impact the Industry

In workers’ compensation, there are certainly some looming challenges after years of prosperity. Social inflation, climate change, distracted drivers, co-morbidities, aging workforce, increasing casualty reinsurance and carrier reserve depletion all point to greater rate needs at some point over the next few years in this line of business. That is where risk management, financially strong trading partners, and class expertise will be paramount in finding solutions for our retail agents' clients at a price point they can afford. We have the expertise to weather the storm if things change. We are growing in our space despite the negative rate environment because we have the expertise to focus on best-of-class risks, but we could see some upward rate pressure at some point due to the above factors.

Advice to Professionals Working In Other Companies in the Risk Management Domain in Terms of Do’s or Don’ts

Remain constantly curious, ask a lot of questions and take copious notes! Don't overthink your process. I have found that oftentimes, the simplest answer is normally the first one and the right one. I’ve been fortunate enough to work on accounts from a myriad of industries; with that comes the ability to find similarities across seemingly unrelated industries. This has served me well when identifying new market segments for our specialty programs.