From Corporate to Independent: Navigating the Insurance industry with Entrepreneurial Grit
I have recently interviewed several Insurance entrepreneurs to talk through their journey to success, some of the challenges they faced, lessons learned and advice for anyone looking to grow and develop a successful business.
Today’s interview is with Bruce Carman, Chief Underwriting Officer at HIVE Underwriters Ltd.
Please give me an overview of Bruce and HIVE Underwriters.
I’ve been an aviation and war underwriter for over 30 years, with most of my career spent in the Lloyd’s market.
In 2017, I founded HIVE Underwriters and before that was a partner at Cathedral Underwriting and worked for 27 years at Atrium Underwriting. My specialisation in Aviation War led me to pioneer the use of third-party intelligence for risk assessment, and I developed the first ground accumulation model to monitor aircraft exposures.
At HIVE Underwriters, we’re committed to informed, data-driven underwriting. We focus heavily on in-depth analysis and advanced analytics. Our partnerships with key players in the aviation and geopolitical sectors reflect our emphasis on collaborative learning, or what we call a “HIVE Minded” approach. This helps us better understand and mitigate the risks facing the global aviation industry. By integrating AI and machine learning with the expertise of our team, we enhance our underwriting capabilities and provide bespoke tools for efficiency.
HIVE underwrites a diverse book of aviation insurance including Airline Hull and Liabilities, Hull War, War Liabilities and General Aviation. HIVE is a Lloyd’s Coverholder and proudly holds Chartered Insurance Underwriting Agent status.
What motivated you to start your own MGA?
During my 30 years as a Lloyd’s underwriter, I not only developed my understanding of the sector but at the same time, brought on talent and grew teams. After that success, I found myself asking, “What’s next?” I wanted to take on a new challenge while creating space for the talented individuals around me to rise through the ranks.
I looked at what my skill sets were, what enthused me and where I could make a difference. After considering potentially joining another carrier, one of the larger Lloyd’s syndicates, I also looked at how I could set up on my own and the world of delegated authority came into focus. At this point, fate intervened, and I ended up at an awards dinner sitting next to the then-CEO, of the Managing General Agents’ Association, Peter Staddon.
Peter recommended I connect with Charles Rowley, who had just founded DA Strategy. Upon meeting him, it was immediately clear that Charles was a highly skilled subject matter expert in MGAs and delegated underwriting. Having access to his expertise was invaluable in understanding how MGAs operate and are structured, which ultimately led to the creation of HIVE.
Knowing what you now know, would there be anything that you would have done differently?
Maybe I wouldn’t have worried so much about how things were going to work out and had more faith in the process, however that’s always easy to say after the event and with hindsight. If honest, there’s not a lot I would change as I love what I do and the people I work with.
What has been the steepest learning curve?
I was probably guilty of overthinking everything in the early days as it was a big commitment and something I had never done before, which meant I was well out of my comfort zone. When you have spent your life working for big organisations there are things that you just take for granted such as skill sets like compliance and governance, finance and accounting, recruitment, HR and benefits, office space and the IT systems. However, with the help of DA Strategy, I had a huge amount of support to guide me through the start-up process and come out the other side relatively unscathed. We currently employ 15 people, 11 full-time staff, nine of whom are underwriters and traders, and have a modern office in the heart of the City. Steepest learning curve – all of the above – the buck stops with you!
Seven years on, what do you put your success to date down to?
It may sound like a cliché, however our success is squarely down to the people we have here at HIVE, they all amazing and work as a team.
Keep things simple. You could make it as complicated as you want to, but overall, we simplify it down to insuring the aviation sector and that’s our starting point.
From the outset, HIVE’s ethos has been to make informed underwriting decisions through deep data analysis and a comprehensive understanding of risk. We’ve made significant investments in knowledge-led underwriting, and our cutting-edge approach to data analytics is a key differentiator. By building strong partnerships with third-party data providers in the aviation and geopolitical sectors, HIVE is committed to collaborative learning, or what we call a “HIVE Minded” approach. This allows us to stay ahead of emerging risks and threats in the global aviation industry, enabling us to provide clients with tailored, risk-mitigating solutions with the use of high-end intel to predict the risks before they happen, like the war in Ukraine and our liabilities there.
Additionally, we have not rested on our laurels and have developed our own proprietary systems, including The HIVE Hub (Underwriting system), The HIVE Mind (Data warehouse), Sentinel (asset tracking enabling proactive risk monitoring and portfolio optimisation) and an online trading portal (to be launched soon…).
In summary – hard work and focus on the things that really matter!
What is your driving force and future ambition for the business?
This year we will underwrite approximately USD 125 to USD 130 million in gross premiums, which is incredible given we are still only 15 employees. We’re also actively in discussions with teams from non-aviation sectors, as HIVE is focused on growth and expanding into other specialty lines of business. Our vision for the future extends beyond aviation, with plans to leverage our technology and platforms to explore new areas and drive further growth.
In a very competitive market, what can HIVE offer to individuals looking to utilise their underwriting and trading skills?
HIVE offers individuals the opportunity to leverage their underwriting and trading skills in a forward-thinking team environment with best-in-class systems.
We emphasise a collaborative culture, in which team members actively contribute to the development of bespoke tools and cutting-edge analytics. HIVE encourages its underwriters to engage with the latest technologies, including AI and machine learning, to enhance their expertise.
Our team attends industry events around the world to expand their own expertise as well as share their hard-earned knowledge with the sector.
Lastly, and probably most importantly, we are independent and wholly owned by HIVE employees. I’d say it’s our greatest strength and the thing I am most proud of.
What advice would you give to any budding entrepreneurs looking to start or successfully grow an MGA (without giving away too many trade secrets!)?
Choosing the right partner at the start of your MGA journey is crucial, as there are many complexities to navigate. Having an expert to help with the set-up of the regulatory framework, accounting and systems has to be a focus. At the same time, it’s essential to have confidence in your expertise, trust your skill set, and build a team of talented individuals who share your passion and vision.
Oh, and if you have any hobbies like golf, skiing, sailing etc. you may have to forget them for a while…
Right International are market leading recruiters to the MGA, Claims, and Insurance sector.
If you are looking to add to your team now or in the near future or are considering your next career move, please contact myself or one of the team.
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All the best,
Gary Pike
Founder & MD Right International
