Lockton Appoints New U.S. Real Estate Practice Leader
Lockton has appointed Aaron Culbertson as the U.S. Real Estate Practice Leader within its brokerage operations. Culbertson, who has been with the company since 2008, previously managed the real estate operations in the Western United States. In his new capacity, he will spearhead strategic initiatives, improve client services, and enhance the company’s market presence.
Chris DiLullo, EVP of U.S. Industry Practices, stated that Culbertson’s extensive experience in advising and leading real estate teams makes him a fitting choice for the position. Culbertson also played a pivotal role in creating Lockton’s Real Estate Intelligence Platform, which aims to improve client access to market data. Based in Denver, he looks to integrate data as a core aspect of risk management.
Workers' Compensation and Liability Insurance Challenges
In another arena, the workers' compensation framework remains upheld by recent rulings allowing for coverage of virus-related claims in high-risk workplaces without necessitating pinpointing exact infection moments. Meanwhile, the liability insurance market for hospitals is experiencing significant pressure due to the increasing frequency of large verdicts, particularly those exceeding $10 million.
Robert Ellis, EVP of Healthcare at Arch Insurance, explained the escalation is largely driven by rising claims costs and severity. This environment compels insurers to reassess underwriting practices while prompting hospitals to rethink risk management strategies to balance coverage needs with premium costs.
Geographic and Specialization Factors in Underwriting
Geography significantly influences these decisions—as some jurisdictions are notorious for high settlement values, known as "judicial hellholes." Factors such as birth rates and emergency department activities elevate certain locations' risk profiles, necessitating specific underwriting considerations.
Moreover, hospital specialization impacts risk exposure. Larger systems performing high-risk procedures face different challenges than smaller community hospitals. Modern underwriting examines not only potential litigation but also internal operations and risk management capabilities.
Emerging Challenges and Insurer Support
Among emerging challenges are sexual abuse and molestation (SAM) claims, which can arise unpredictably across any location, adding complexity to premium predictions and underwriting approaches. Insurance carriers assist hospital systems by providing consulting support and actionable insights based on extensive claims data.
While the current liability market remains tough with no immediate resolution in sight, hospital systems can mitigate impacts by maintaining a strong emphasis on superior internal risk management and proactive claims handling. These efforts may not transform market conditions but can lead to more favorable insurance terms.