Pollution Solution

By William Pritchard Jr., ERM
Printed in the February 2011 issue of American Agent & Broker

Thirty years ago, insurers couldn't run fast enough from environmental risks. Today, more than 40 carriers are vying for pollution business. At a time when high-profile exposures like last year's BP oil spill are making headlines and underlining the need for coverage, learn how to get an edge in this growing specialty.

2010 saw a rapid expansion of the environmental/pollution insurance marketplace in the face of daunting conditions. Why this growth has occurred, and what it means to an agency, are important to understand. The performance of this niche clearly illustrates the efforts being made to find success in our evolving market, and agents that can correctly tap into it will see significant return on their investment.

In 1990, four companies offered dedicated environmental insurance products. In 2000 there were closer to 10. At the end of 2010, there were at least 40 companies with environmental practices. One thousand percent growth over 20 years is significant, but even more significant is the growth in the last 3 years, from 20 to 40. Companies including XL (formerly ECS), Chartis (formerly AIG), Zurich, Markel, Liberty, Chubb and others have been involved almost from the beginning. In the face of the most difficult market most can remember, why has environmental been such a draw for carriers? And what does this explosive growth mean for the insurance agent? Read the complete article.