Our thanks to all of you who joined us for the annual Policyholders’ Conference in Boston.  More than 1,100 members, brokers and guests attended, which was one of the highest levels in the past ten years.  In addition, more than 93 members and brokers were first-time attendees, which is an indication of the ongoing speed with which new people are joining your organizations, and we’re happy to welcome them to the mutual.  We were also pleased that 87% of members and brokers rated the conference as “outstanding” or “exceeded expectations,” which is one of the highest scores in the history of the conference.  

Many of the general session and breakout session presentations are posted on our website and the AEGIS 2019 PHC app, including Sean Kevelighan's report on economic and insurance market conditions, the AEGIS 2019 limits survey, AGA and EEI industry updates, current D&O topics and the highly rated breakout session, Essentials of Contractual Risk Transfer.  The conference videos, which are built around the theme of how AEGIS delivers value to members, are posted on the website as well.

Please save the date for the AEGIS 2020 Policyholders’ Conference, which will be held in San Diego, July 13 to 16.

Please join us in welcoming Tom Kelly and Quetzy Torres to the AEGIS Underwriting Division.  

Tom has joined us as Senior Vice President and Chief Risk Officer.  He comes to AEGIS with an extensive underwriting background in the property & casualty and reinsurance industries.  Most recently, Tom served as Chief Operating Officer at Allied World Assurance Company and prior to that as Chief Underwriting Officer.  He earned his Bachelor of Science in Finance from Rutgers University and holds the CPCU, RPLU and ARe designations.  Tom reports to Bill Hillman, Senior Vice President and Chief Underwriting Officer.

Quetzy Torres has joined us as an Underwriting Officer.  Prior to AEGIS, she worked at Marsh USA as Senior Vice President – Energy Casualty Group.  Quetzy is a graduate of St. Joseph’s College and of New York Law School.  She is a member of the Bar in New Jersey and New York and is a licensed NY State Property/Casualty Broker.  Quetzy reports to Martin Gaffney, Vice President & Product Line Manager – Excess Liability.

AEGIS recently introduced a new cyber product and underwriting process for policyholders with annual revenues up to $750 million.  

The new AEGIS Middle Market Enterprise Cyber Initiative features: 

• Up to USD $10 million in limits of liability.  

• Minimum retention of USD $25,000. 

• The AEGIS CyberResilience+ form 7/2019, which offers tailored cyber coverage specifically for the energy sector. 

• A complimentary cybersecurity Health Check Report from our alliance partner Guidewire Cyence that provides topline peer analytics and best practices for utility operations.  The report is offered to all AEGIS policyholders/members, whether they purchase AEGIS cyber coverage or not, as a value-added benefit.  The Cyber Health Check Report is provided by request only and it’s based on a non-intrusive, online assessment that identifies possible areas for improvement in external network security. 

• A dedicated 24-hour cyber incident hotline that policyholders can call immediately after the discovery of a cyber event. 

For more information about the new AEGIS Middle Market Enterprise Cyber Initiative, please contact Dawn Simmons, Vice President – Cyber  by e-mail or by phone at 201 508 2629. 

Thanks to member support of our disciplined approach to underwriting, we are pleased to report that A.M. Best has reaffirmed its “A (Excellent)” rating with “stable” outlook for AEGIS.  Some of the highlights of the report are: 

• As a member-owned mutual, AEGIS has deep access and understanding of the energy and utility insurance industry in the U.S. and Canada with a long track record of very high member retention.

• Combined ratios were barely impacted by the natural catastrophe events in 2017 and 2018, primarily due to well-disciplined underwriting and prudent use of reinsurance.  Also supporting underwriting stability is the diversification benefit between the mutual and AEGIS London businesses that, taken together, have shown significant stability in the last five years. 

• The company consistently produced positive operating results over the last 10-year period. 

The complete report is posted on the AEGIS website. 

The Side-A Directors & Officers Liability coverage we offer through our alliance with Sompo International has been enhanced with a new Energy Premier Endorsement.  The new endorsement features:

• Bespoke coverage tailored to meet the specific needs of energy companies and utilities

• Protection for claims resulting from regulatory actions and violations

• Non-officer employees covered as Clean Air Act representatives

• Crisis and Reputation Management coverage

These Side-A policies provide up to USD $30 million in limits and the AEGIS portion of the premium counts toward your D&O continuity credit.  

For more details, please refer to the Side-A Directors & Officers Liability program description posted on the Sompo International website.  You may also contact your AEGIS D&O underwriter or Fred Murnane, Vice President – D&O by e-mail or by phone at 201 508 2765.

There's still time to register for the next AEGIS Claims Roundtable: Effectively Telling Your Story Through Your Witnesses, which will be held on Thursday, October 17.  

As always, Continuing Legal Education (CLE) credits will be offered, and you have the option of attending the Roundtables in our East Rutherford, NJ office or by webinar.  For more information about the AEGIS Claims Roundtables program, please visit our website or contact Jeff Schupack, Senior Vice President & Chief Claims Officer, by e-mail or by phone at 201 508 2658.

The monthly webinars conducted by AEGIS Loss Control continue to be popular with risk managers and operational personnel at member companies.  On average, 111 participants, representing 63 member companies, participate each month, and the evaluation survey results conducted after each session have been excellent.  

There's still time to register for the next webinar, Updates to Current Codes and Technologies For Large-Scale Battery Storage Systems, which will be held on Wednesday, October 2.

We will wrap up the 2019 schedule with these webinars so watch for details on our website: 

• Electric System Overhead and Underground Distribution Inspections – Data Collection and Observations on November 6

• Advanced Frame Gas Turbine Design Margins on December 4

If you have any questions about the monthly AEGIS Loss Control webinars, please contact Scot Macomber, Vice President – Loss Control Utility Operations, by e-mail or by phone at 201 508 2739.

Please register now for the popular AEGIS Loss Control Fire Protection Training Class, which will be held Tuesday, October 15 to Thursday, October 17 at Oklahoma State University (OSU) in Stillwater, OK.

This three-day training class provides AEGIS member company employees with both classroom and hands-on instruction on the various types of fire protection systems associated with power generation and natural gas midstream operations.  These topics will be covered:

• Power generation and natural gas midstream operations fire hazards

• Fire pumps/water supplies overview and testing

• Fire alarm and detection systems

• Water-based extinguishing systems

For more information, follow the link above to details posted on our website or contact Joshua Fleischer, Vice President – Loss Control Property Operations, by e-mail or by phone at 201 508 2637.

AEGIS has an alliance with Everest National Insurance Company and one of the breakout sessions at the Policyholders’ Conference focused on the numerous products and services available to members through the alliance, including access to the mobile safety platform ZERO.  

ZERO is a communication platform and safety management system for high-hazard workplaces.  It organizes and centralizes all communication so that companies can efficiently share safety and performance information across teams.  Team members can identify hazards, access company policies or best practices, and collaborate in real-time, from any device.  The ultimate goal is to reduce workplace injuries and incidents, and improve safety culture and performance.  

ZERO, a 2017 Business Insurance Innovation Award winner, empowers employees to report, review and resolve hazards in real-time to improve safety, quality and productivity.  With this innovative, cloud-based platform in hand, utility workers can easily share time-sensitive information with fellow colleagues and company leaders. 

For more information, please visit ZERO, or contact George Keefe, Senior Vice President – Member Relations, by e-mail or by phone at 201 508 2797.