Sometimes, opportunities really do hide in plain sight.

Executive Summary

There is an unlimited runway of opportunity for specialty insurers to tackle the challenge of covering the big risks of small businesses, according to ACE Commercial Risk Services President David Lupica, who explains how his experience insuring large risk corporates helps him identify the risks and coverage gaps of their smaller counterparts.

In 2007, I was running ACE’s wholesale E&O and D&O business when I noticed that all the small accounts sat on the underwriter’s floor, while the larger accounts were addressed quickly. There’s a reason for that. The problem is that small businesses generate small premiums, but they aren’t any easier to underwrite. Without automation and an efficient submission process, it costs more for brokers and carriers to place or underwrite a small business account than the revenue it will generate.

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