CNA and Victor O. Schinnerer & Co., Inc. are ending their carrier and managing general underwriter relationship in the non-profit directors and officers (D&O) program. The split, which the firms said is amicable, will begin for policies effective June 1, 2010.
At the same time, Schinnerer announced a new partnership for the non-profit D&O program with Navigators Insurance and said it has plans to expand it.
Although their partnership in the non-profit D&O market is ending, CNA and Schinnerer said they are retaining their partnerships – some spanning more than 50 years — in the architects, engineers, construction and real estate markets.
Both companies also plan to stay in the non-profit D&O market.
“The non-profit D&O market has evolved tremendously since we started underwriting for CNA”, said Lorna Parsons, president and chief underwriting officer at Schinnerer. “At this point in time, we both believe that we can best serve our customers by going separate ways.”
For CNA, the shift enhances cross-selling opportunities and support for its one-stop-shopping offerings, according to Peter Wilson, president and chief operating officer, CNA Specialty, who also said the company is adding dozens of underwriters in local branches across the country to support this program change.
CNA said it would take over the underwriting and administration of the existing non-profit D&O program and use its branch network to further grow the business.
CNA will begin servicing new business and renewal accounts with an effective date of June 1 or after, while Schinnerer will continue to service existing non-profit D&O business with an effective date prior to June 1.
Parsons said moving to Navigators is an opportunity for Schinnerer to update the program and expand into new classes of non-profit D&O business. “We believe this change is in the best interest of our customers as we remain committed to the Non-Profit D&O industry,” Parsons said.
The admitted filing of the Navigators program is currently under way in all 50 states. To date, 26 states have approved the filing, with more approvals expected shortly, according to the firms.
Any business submitted with an effective date of June 1 or after will be quoted with the new program. Schinnerer said it would continue to service existing non-profit D&O policies under the old program until their expiration date.
Navigators Insurance Co., an international specialty insurer headquartered in New York City, is rated “A” (Excellent) by A.M. Best.
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