Transforming Risks into Rewards: Risk Management Success in Navigating a Challenging Insurance Market
Published May 23, 2024
In the ever-evolving landscape of insurance, innovative solutions to complex problems are crucial. One recent success story involves Drew Stelzer’s adept handling of a challenging project in Stow, OH. It all began with an introduction from partner, Stan Magielski, of a client who purchased a $5 million former assisted living facility with the vision of transforming it into habitational condominiums. While the potential was immense, so were the risks, especially in a hardening insurance market.
Drew recognized the challenges and knew that positioning underwriters to consider the builder’s risk was essential. The project required an additional $5 million in construction improvements, with the understanding that the same underwriters would also insure the habitational risk once the properties were complete. This strategic approach was key to overcoming market difficulties.
Collaboration with FCB Credit Underwriting was instrumental. This partnership provided insurance underwriters with a comprehensive understanding of the risk involved, ensuring they felt comfortable with the project’s risk profile. Thanks to this strategic collaboration, Drew and our team secured a best-in-class premium for the builder’s risk insurance and established a conceptual premium for the finished apartments. This not only safeguarded the client’s investment during construction but also promised an additional $3-5 million in revenue once the condos were complete.
This story highlights the power of expertise and strategic collaboration of our risk management team. Drew’s ability to navigate a challenging market and secure favorable terms for the client demonstrates the value of innovative thinking and strong partnerships. It’s a testament to how the right approach can turn challenges into opportunities, ensuring the protection and success of our clients' investments.