In a recent interview with CanadianSME Small Business Magazine, Oren Schemool, Head of Professional Lines at HDI Global Specialty Canada, outlined his key responsibilities and the unique selling points of the company’s specialized insurance products. Schemool emphasized the pivotal role of brokers and highlighted the company’s Single Project Professional Indemnity (SPPI) for construction. He also discussed HDI’s approach to international programs, which are crafted to offer comprehensive and efficient solutions. Lastly, he revealed the company’s growth strategies in the technology sector, underscoring their adaptability to the modern market’s needs.
Head of Professional Lines at HDI Global Specialty Canada. Oren Schemool manages the underwriting team for the Canadian Professional Lines portfolio consisting of: Errors & Omissions, Architects & Engineers, Single Project Professional Indemnity, and Technology. Oren focuses on delivering flexible and sustainable solutions and is committed to building long-term relationships with clients.
He holds a Bachelor of Commerce from the University of Manitoba as well as an MBA from the Wilfrid Laurier University.
Oren Schemool held previous roles as a Senior Underwriter for ACE (Chubb) and Assistant Vice President – ELD at Great American Insurance. He works as Head of Professional Lines for HDI Global Specialty SE since 2012.
When did you start your career?
I began my insurance career in 1999 as an Underwriter writing Directors & Officer (D&O) coverage, foregoing career opportunities in government and consumer goods, I feel it was a fantastic decision.
In 2006 I moved to another insurer to open their Toronto office and manage their D&O book across Eastern Canada.
This experience led me to HDI in 2012. I joined HDI to lead their Director’s & Officers (D&O) and Professional Liability (PL) business in Canada. At that point HDI was not significantly active in these lines of business so it was a tall task and took time to build the portfolio. We were patient focusing on measured sustainable growth and 10 years later we had a combined portfolio of more than $30m in annual Gross Written Premium.
What are your responsibilities as the Head of Professional Lines (PL) Underwriting at HDI Global Specialty Canada?
As Head of Professional Lines I am responsible for the ongoing development and performance of our PL book. I am an underwriter at heart, so I keep a close eye on the market and actively handling many of our largest or most complex risks. By staying close to the market, it allows me to stay attuned to shifts in the environment. For example, in 2021 we rolled out a cyber liability offering to go along with our PL product and later this year we will launch legal expense as a coverage option for our insureds. I have a great team which includes a specialist in Architect & Engineers business, and one in Technology and Miscellaneous exposures. We are a small team but with expertise across the spectrum of PL exposures. My responsibilities are varied and in today’s dynamic environment no two days are the same!
Can you describe the unique proposition and Unique Selling Points of HDI Global Specialty, and how they cater to the specific needs of the modern market?
First we are Dynamic. Our team is able to respond quickly to requests from our broker partners as we have short spans of control and lines of decision making. Second, we are Empowered. We hire talented people and let them do their job.Our local team has a high degree of autonomy which allows for decision making close to the customer. Lastly, we are Committed. Our Underwriters take pride in understanding the unique features and risks associated with each business we seek to ensure. We are not ‘box’ underwriters which rely on an algorithm to make decisions and set terms. Taken together, this allows us to be Solution Providers in the market and become a partner that our broker partners can rely on and trust.
What products do you currently offer in the market?
We have two primary Professional liability products, one tailored for Architects & Engineers and the other for Miscellaneous Professional risks. In addition, we write excess of liability for a wide range of professional risks.
There are very few Miscellaneous risks that we won’t write but in particular we have had success with law firms, technology companies, and management consultants among many others. We can also offer a companion general liability product and a sub-limited cyber endorsement.
In your opinion, what role do the brokers play in the Canadian market – and for HDI?
Canada is a broker market and Insurance brokers play a critical role. In the sales transaction they represent and work for the insured yet they are also the ‘sales force’ of the insurer. The broker provides invaluable counsel and advice to insureds. It is important for us that we stay closely connected to our broker partners and that they understand our products, capabilities, and appetite. We spend a lot of time and effort ensuring maintaining and developing broker relationships.
Does HDI Global Specialty provide Single Project Professional Indemnity (SPPI) product for construction projects, and what makes this particular approach a vital component in navigating the complexities of the current business landscape?
The SPPI coverage area is very dynamic. As a company, HDI has been active in this space in Canada for the past six years. As governments continue to focus on upgrading/maintaining aging infrastructure and creating new infrastructure to meet future needs, interest and demand for SPPI coverage continues to grow. SPPI as a product covers the professional design exposure associated with a project. This would include architects, engineers and various contractors that might be involved. Typically, these policies are purchased in as part of the bid process for large infrastructure projects. With our focus on being Solution Providers, HDI has worked to provide SPPI coverage with other trusted Insurers.
So far, our focus is to participate on Excess coverage at this time, although if a long-term opportunity presents to offer Primary coverage we would be open to exploring.
With the growing need for worldwide coverage, how is HDI Global Specialty approaching International Programs to ensure seamless and comprehensive global service?
Great question! As a global company with 39 offices and ability to access more than 175 other countries, insurance cover is provided by a long-standing, tried and tested network of partners. Our aim is to provide insurance cover for corporations internationally that is as risk-adjusted and consistent as possible.Our international insurance programs primarily consist of a master contract. This master policy provides consistent global insurance cover. In parallel, local cover is provided by local policies in line with local business requirements. Country specifics such as statutory regulations and tax law requirements are complied with. This puts companies in the best possible position, especially with regard to increasingly stringent compliance requirements. These services are generally geared towards larger international organizations given the cost and effort involved however in the right circumstances it could be a fit for certain SMEs as well.
What methods does HDI Global Specialty employ to craft comprehensive solutions specifically designed for programs, and how do these solutions maximize efficiency? Additionally, how do they offer distinct benefits to clients seeking wide-ranging coverage?
We have local Claims and Legal teams in Canada that we utilize if coverage needs to be customized. In general, we at HDI emphasize local authority for our teams which greatly reduces the need to refer risks to head office in Germany. By doing this we are quick to respond to individual risks and changing market dynamics while at the same time being backed by this financially stable German Group with more than 120 years experience. We very often work with our broker partners to bespoke manuscript endorsements to address particular coverage needs of an insured, we are truly fortunate that we have local authority allowing us to quickly get to decisions.
What insights can you provide regarding HDI Global Specialty’s emphasis on the technology sector, and what are the current strategies for growth in this area? How do the foundational elements of expertise, service, and creative solutions come together to support this focus, creating value for both clients and brokers?
Really beginning in 2020 ‘cyber’ became a bad word in the industry. Many insurers that rushed into the cyber market in the last 5 years of the previous decade didn’t understand the exposure and got the pricing wrong. Obviously not a good combination. This combined with uncertainty stemming from COVID and in 2022 the Russia / Ukraine conflict let to a multi-year pull-back in capacity for ensuring technology / cyber risks. For a technology company cyber exposure is really inherent – so not something that can be excluded from a professional liability policy. As a result, challenges in the cyber market extended to technology risks.We had always written a small portfolio of technology risks but beginning in 2020 we started to receive feedback from key broker partners that this was an area where they needed support. We responded to this need and began to build expertise and from 2021 we started to be quite active in the space. In 2022 it was our largest segment of new business success. The market has become more competitive in 2023 so we have not seen quite as much success but this is certainly a core segment for us going forward where we will look to build and expand our product offering.
