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Hilb Rogal & Hobbs leaders discuss insurance trends

NOVATO — Hilb Rogal & Hobbs Insurance Services Bay Area President David Hofele and Vice President Joel Brand captain the North Bay’s second largest property/casualty insurer and the nation’s eighth-largest brokerage.

The company has increased its presence in the North Bay over the last several years through three acquisitions and organic growth and will soon make the San Francisco office its fourth flagship office in the nation next to New York, Chicago and Denver.

The two were asked by the North Bay Business Journal about the industry and trends.

NBBJ: What can you say about the current market?

Mr. Hofele: “The softness of the market has continued. Declining premium dollars have shrunk profits and I think we are close to hitting the floor.”

NBBJ: Is there a market for these specialized products that have emerged lately, such as for green building and professional liability for new types of medical facilities?

Mr. Hofele: “We’ve definitely seen some traction in the green market. These products emerge as industries develop and a gap emerges in coverage.

“I definitely think the health care market is evolving, but the real test of value is whether other carriers follow suit.

“Travelers Insurance just launched their version of the Fireman’s green coverage and we have an entire specialty team devoted to environmental-type coverage.

“The degree of specialized-coverage needed really depends on the company.”

NBBJ: What are some emerging risks that employers should be aware of or might consider increasing coverage for?

Mr. Brand: “In the past few years, wage and hour disputes have increased dramatically and have become even more important as legislation and regulation evolves. (The U.S. Department of Labor reported that wage and hour disputes have tripled since 1997.)

“Also, third party discrimination coverage has been an area with recently heightened sensitivity, especially in the hospitality industry.

“ADA compliance laws for the disabled can be somewhat ambiguous and employers could be violating a regulation and not even know it.”