Insurance Specialty Group LLC

Background

Founded in 1999, Insurance Specialty Group LLC (ISG) is a managing general agent (MGA) headquartered in Atlanta, Georgia. The company specializes in providing comprehensive insurance solutions tailored for the construction industry, with a particular emphasis on the residential housing market. ISG's mission is to offer robust general liability policies supported by industry-leading loss control, risk management, and construction quality assurance, thereby safeguarding builders' assets through a combination of comprehensive risk management techniques and broad insurance policies.

Key Strategic Focus

ISG's strategic focus centers on delivering specialized insurance products designed to meet the unique needs of builders and contractors. The company's core offerings include:

Builder's Risk Insurance: Provides blanket protection for home builders, covering buildings under construction or renovation, including materials, equipment, fixtures, and fittings.

General Liability Insurance: Offers practice, project, and wrap policies to protect businesses from third-party claims arising out of bodily injury or property damage caused by their operations or products.

These products are distributed through a network of over 250 retail and wholesale brokers, enabling ISG to maintain a national presence and effectively address the diverse needs of the construction industry.

Financials and Funding

On October 29, 2020, ISG was acquired by NFP, a leading insurance broker and consultant. This acquisition aimed to expand NFP's property and casualty footprint in the Southeast and enhance its existing construction offerings. Prior to this acquisition, ISG had been privately owned and had established itself as a significant player in the construction insurance sector.

Technological Platform and Innovation

ISG distinguishes itself through its proprietary risk management techniques and comprehensive insurance policies tailored specifically for the construction industry. The company's approach integrates:

Industry-Leading Loss Control: Implementing proactive measures to minimize potential risks and prevent claims.

Construction Quality Assurance: Ensuring that building practices meet high standards to reduce the likelihood of defects and associated liabilities.

These methodologies provide builders with extra layers of defense, aiming to prevent claims before they occur and offering peace of mind throughout the construction process.

Leadership Team

ISG's leadership comprises experienced professionals with extensive backgrounds in insurance and risk management:

Bruce Harrell: Founder and Managing Director. Bruce established ISG in 1999 and focuses on underwriting and strategic business initiatives. He holds both Bachelor's and Master's degrees in Accounting and Tax from Florida State University.

Stephen Harrell: Managing Director. Stephen joined ISG in 2010, bringing over 17 years of experience in insurance, reinsurance, underwriting, and operations. He holds Bachelor's degrees in Risk Management & Insurance and Entrepreneurship from Florida State University.

Liz Davis: Vice President, Territory Underwriting Manager. With over 30 years in the insurance industry, Liz has been with ISG since 2002, serving in various underwriting roles. She holds a property and casualty insurance license in several states.

Amanda Grether: Vice President, Underwriting Team Lead. Amanda joined ISG in 2018 after a decade with EMC Insurance Companies. She holds an MBA in Insurance from Olivet College and has earned CPCU, AU, and AIS designations.

Leadership Changes

Following the acquisition by NFP in October 2020, Bruce Harrell and Stephen Harrell continued their roles as Managing Directors within the organization, ensuring continuity in leadership and strategic direction.

Competitor Profile

Market Insights and Dynamics

The construction insurance market is characterized by a growing demand for specialized coverage due to the complex and high-risk nature of construction projects. Factors such as regulatory changes, increasing project sizes, and heightened awareness of risk management contribute to the market's expansion.

Competitor Analysis

Key competitors in the construction insurance sector include:

One80 Intermediaries: A specialty insurance brokerage firm offering access to major insurance markets and in-house binding authority for various coverage lines. Founded in 2019, One80 has rapidly expanded through acquisitions and offers a broad range of specialty insurance products.

AmTrust Financial Services: A multinational property and casualty insurance company providing workers’ compensation, general liability, and other specialty risk coverages. AmTrust operates through subsidiaries across North America, the United Kingdom, and Europe.

Argo Group: A U.S.-based underwriter of specialty insurance products in the property and casualty market, focusing on complex or hard-to-price risks. Argo's insurance subsidiaries are rated "A−" by AM Best.

Strategic Collaborations and Partnerships

In 2008, ISG expanded its offerings in the specialty lines insurance market through a strategic alliance with Home Buyers Warranty Corp. for the marketing, underwriting, and servicing of the Asset Protection Program (APP). This partnership enhanced ISG's capabilities in providing comprehensive risk management solutions to builders and contractors.

Operational Insights

ISG's strategic considerations include leveraging its specialized expertise in the residential construction insurance market to maintain a competitive edge. The company's integration into the broader operations of NFP is intended to facilitate this objective.