Jack Adams

President & Founder
Environmental Insurance Services, Inc.
Birmingham, Alabama

How did you get started at your agency?

Back in 1989, I was working for a steel brokerage company in a finance role. After the company was sold, I began looking for a new opportunity that would be challenging and allow me to utilize my talents in creative problem solving and deal making. A friend recommended wholesale insurance, and soon after, I joined a local wholesale brokerage. After realizing the huge opportunity I had before me, I started Environmental Insurance Services, Inc.

Why environmental insurance?

When I started in my first insurance role, I asked one of the principals what he thought was the most underserved market. He suggested environmental. This was back when there were only a few markets, and premiums were much higher than what they are now.

Biggest environmental insurance changes?

More and more carriers are entering the market, which is creating a lot of competition, especially on price. Now that more than 50 carriers are offering environmental and pollution liability insurance, premiums have come way down, sometimes below even the loss costs of the risk. But while the soft pricing is not really helping anyone, the increased competition is helping improve coverage forms. Some carriers are even starting to specialize in certain products or market segments.

Greatest environmental insurance challenges?

Some standard carriers are entering the market, and some surplus lines carriers are giving retail agents direct access. This makes it even more important for wholesale brokers to add value to the equation in a way that retail agents can’t easily reproduce on their own. Environmental coverages can be very complex, and working with an expert to properly match coverage to an insured’s exposure is essential.

Future of environmental insurance?

In the near term, I think competition among carriers and downward pricing pressure will continue. Eventually, I think this will balance out as the market continues to mature and more insureds buy policies. I also think product innovation and carrier specialization will help standardize coverage. In turn, this should help increase retail agents’ willingness to offer environmental coverage to more and more clients, which will result in greater growth in the environmental market overall.

Advice for an environmental insurance agent?

The percentage of insureds that have environmental exposures but do not have coverage is staggeringly low. While new policy sales are slowly increasing, coverage is still not widely understood, and insureds are frequently unaware of the risk. This creates a tremendous opportunity for agents or brokers who are willing to become experts in the field and who are committed to educating their clients on the need for this coverage.

Favorite environmental insurance success story?

Early in my career, I had a large national account move to another retail agent by broker of record. The new agent wanted to work directly with the carrier, but I wasn’t giving up so easily. I invited the agent for a round of golf and, as we got to know each other, the agent came to recognize the value of working with an environmental specialist—and I kept the account. Never underestimate the power of relationships or a round of golf!

Will Jones is IA assistant editor.