NAME: Paul Hyer
NEW JOB TITLE: Minneapolis-based rating agency advisory leader, Lockton Re
PREVIOUS POSITION: Minneapolis-based associate director of rating agency advisory, Aon PLC
INDUSTRY OUTLOOK: I would have had a much different answer if this was pre-COVID. Working in reinsurance broking with insurers of all classes and sizes, the outlook varies greatly. Overall, the industry remains well-capitalized and by and large insurers have adapted well to the current work-from-home landscape. We see a lot happening today in various sectors: The personal auto industry crediting policyholders for the significant reduction in miles driven and resulting lower claims frequency, reduced workers compensation premiums based on lower payrolls coupled with a reduction in claims as many people work remotely, ongoing disputes regarding business interruption and contingent business interruption claims and policy languages. I view the outlook for the industry based on the potential long-lasting effects of COVID-19. The potential changing dynamic regarding office space and commercial real estate, business travel, and IT infrastructure come to mind.
GOALS FOR NEW POSITION: I joined Lockton Re in large part due to its unique culture private ownership structure, strong support from and collaboration with the Lockton family, and varying perspectives from numerous functional areas and from different firms. My goals in this role are to provide excellent and responsive services to our clients regarding rating agency objectives and capital management considerations. Cornerstone to this is helping insurers better understand the rating agency processes and distinctions specific to their class of business while helping foster long-term growth and profitability.
CHALLENGES FACING THE INDUSTRY: The tightening reinsurance market is certainly a big challenge in the industry today for primary carriers. June 1 property catastrophe renewals are expected to be up over 20% on a risk-adjusted basis, driven by the Florida market. This puts significant pressure on some companies expense ratios. There are a lot of headwinds driving this, including uncertainty around COVID-19 claims, low interest rate environment, capital market volatility, loss creep and higher retro pricing.
FIRST EXPERIENCE IN THE INDUSTRY JOB MARKET: I started my career out of college as an underwriter for Cigna Global Health Benefits, specializing in global medical and ancillary benefit pricing, before transitioning into the reinsurance broking space.
ADVICE: Be willing to take on additional responsibility and be openminded about the opportunities in front of you. Ask a lot of questions. Figure out what motivates you and set goals that align with your motivations.
OUTSIDE THE INDUSTRY, A DREAM JOB: Sommelier. I dont have a refined enough palate, but I wish I did.
COLLEGE MAJOR: Risk management and insurance at Temple University
LOOKING FORWARD TO: Im looking forward to working with extremely motivated colleagues in a unique cultural environment. As Lockton Res CEO Tim Gardner has said many times before, we are fostering a customer-centric, entrepreneurial and collaborative environment. Im also looking forward to adding value for our clients by building capabilities and expanding Locktons current platform that is tailored to each clients specific goals and objectives.
FAVOURITE MEAL: Spaghetti carbonara
BOOK: Moneyball: The Art of Winning an Unfair Game, by Michael Lewis
HOBBIES: Soccer, disc golf, board games
TV SHOW: The Office
ON A SATURDAY AFTERNOON: Run around at the dog park with my dog, Valentine
