Today’s topic is insurance, and joining the discussion is Jeffrey Charles. He is the Managing Director at Arthur J. Gallagher Canada. Jeffrey joined the insurance business because of its resilient nature after he experienced the 2008 crash while working in the travel industry.
We take a deep dive into insurance, with Jeffrey providing several simple analogies to make his explanations comprehensible to people with little insurance knowledge. He reveals some of the stats examined to determine an insurance premium and tells us how COVID-19 is affecting the insurance industry.Topics covered include:
• How Jeffrey got to where he is today.
• Jeffrey’s beginnings with Jones Brown and their acquisition by AJG.
• Pension allocations growing towards fixed assets that yield cash.
• Buying insurance because of contractual obligation versus understanding the risk.
• The asset class with the most severity and frequency of incidents.
• Insurance clauses and why every situation needs to be evaluated individually.
• Metrics that Jeffrey looks at to determine rates.
• The two ways that insurance companies make money.
• An explanation of reinsurance.
• “There’s no such thing as a bad risk, just a bad price.”
• What exactly Lloyd’s of London is and its value proposition.
• The importance of reputation and how you conduct yourself at Lloyd’s.
• Challenges that Jeffrey and his company are experiencing because of COVID-19.
• The effects of having time limits on vacancy clauses.
• The silver lining that Jeffrey sees coming from the pandemic.