Putting people first is the NFP way and that extends to making sure our clients are aware of the risks they face.
Scott Saddington joined NFP last month as senior vice-president, Financial and Executive Services & Insurance, to help grow the firm's new Complex Risk Solutions Group in Canada. As an industry veteran with nearly 30 years of experience, he helps clients better understand their current and future risks and primarily help overcome significant balance sheet challenges.
NFP sat down with Scott for a Q&A to discuss his time at the company so far along with key coverages he's been speaking with clients about.
Editor's note: This interview has been edited for clarity and brevity.
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NFP: How have you found the transition to NFP?
Scott Saddington: It's really been a breath of fresh air. I was really encouraged by the first five weeks because people have been very open and reaching out to welcome me. There's not a lot of wasted management layers here and I think it's very efficient. What I really found is everyone is looking forward in the same direction with a true desire to grow the company no matter where they have joined NFP from or any former firm that is being integrated into NFP in Canada. I'm excited for the future!
NFP: What were some of the things that drew you to NFP?
Scott: What really drew me to NFP was that I had been watching what they were doing and how they were expanding in the US and Canada. I have worked in the United States a fair bit in my career and have seen what NFP has done down there by finding niches and developing talent. NFP has a seasoned senior management team that is well aligned with our major shareholder, and that similar focus and drive is contagious. The opportunity to work for a company with a huge entrepreneurial spirit could not be missed. I guess NFP came into my life at the right place, right time.
I still don't have my green hoodie yet though!
NFP: We have to get that for you! What do you bring to clients here at NFP?
Scott: You know, it's going to sound blunt, but my first few weeks have been filled with trying to help some new colleagues solve problems. Problems come in all sizes - from clients to policies. My favourite saying is words can cost millions. In an insurance policy, if you don't get the right words, you don't have the right coverage. In talking with some of my new colleagues, I've been trying to get them to focus on getting the client away from buying the cheapest policy just to say they have one, and moving them towards buying a policy that provides the client with more robust coverage. I know from experience what many Canadian insurance carriers can do, and some policy issues are relatively easy to address. I'm lucky enough to know a lot of senior people at most insurance carriers in Canada and the US, some of whom I worked with or who worked for me at a previous employers.
NFP: How much has your experience helped you in your new role here at NFP?
Scott: I have been around a while, but it's not just been the years of experience, it's the types. I've worked/lived in Toronto, LA, New York (twice), Sydney, Singapore, London - and through different experiences, clients, placements and structures in the reinsurance, underwriting and the brokerage side, I think that you eventually approach any new clients with that combined experience. And through experiences, I've kept my global industry contacts up so when something arises, you can go to the decision makers wherever they may reside.
NFP: I get the sense that maintaining positive relationships with clients is a huge advantage for you?
Scott: At the end of the day it is your long-standing relationship with insurance markets and clients that allows you to achieve a superior result.
As an example, about five years ago, myself along with Evan Garner were asked by a company who was not a client at the time to review their insurance structure and particularly a directors and officers liability policy (D&O) that they made a claim under and it had been denied. The current broker had agreed with the insurance carrier and we didn't. The Chief Risk Officer said, œWell, how confident are you are getting some getting some payment under this insurance policy? We said œhighly confident. Now you only say you're highly confident if you have experience and have been in the depths of past large D&O claims, and ultimately we were able to negotiate a settlement with the insurance carrier with no lawyers involved. A $12.5 million claim payment that initially was denied by the insurance carrier was paid to the client. Now that is a real life example and a we got a new client who will never forget the result we achieved for them. I think if you can solve a problem, it's memorable on the client side ... no matter how big the problem.
NFP: You specialize in many areas, from D&O, EPL, fiduciary, reps and warranties to cyber. Are there any particular skills or experience that you have that you feel will be beneficial to NFP and its clients?
Scott: Directors and officers liability is an area that can open a lot of doors at the senior management level. It's sometimes a misunderstood product, and is also not a required insurance purchase.
In the non-Profit and private area it is relatively simple to negotiate a multi-line-combined form with a private company that includes employment practices, crime coverage, cyber, fiduciary coverage as well. It's not a hard sell, you just need to bring it up. And sometimes you just need to bring in the right people. I have found that you don't sell the client, you educate the client, and then the sale takes place after that.
I think D&O is sometimes seen as this really scary complex product, and although there are nuances to obtaining broad coverage (especially for large corporations with multi-million dollar D&O towers) the product should be viewed by producers and client managers as an access point to senior management and the boards of all companies.
I think there's a great opportunity to increase the present D&O policy penetration on a lot of current NFP accounts of all sizes, and that will start with client education. I look forward to assisting my colleagues with any board level presentations needed.
NFP: Are there any risks that are present right now that you're talking to clients about or think they need to be aware of?
Scott: I think employment practice liability is being highlighted. The issues of diversity, inclusion and gender equality are discussed and promoted in most companies and business forums these days and it has been long overdue. Clients have the same exposure - be they a small company or a large company.
My discussion with many of the major insurers in Canada have confirmed that the biggest increased claims area for many of them has been in the non-profit and private company, employment practices liability area. The policy retentions in this area have at least been doubling each year for the last two years.
Cyber liability insurance is still very much misunderstood and under-purchased product. There continues to be a lot of press on global data breaches, and I expect that cyber liability will become a standard product purchase for all insureds, and that the coverage may become mandated through many B2B contracts.
There is always the risk of not choosing the right insurance carrier for a particular risk. We as brokers should focus on stability, flexibility, recent claims paying history and continuous improvement at any insurer. Commission should not be the driver of any placement because we and our clients will lose in the end.