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The Hartford’s Financial Institution's team is using its solution-oriented mindset to help clients adapt to a new world, with tools like green bonds

THE FINANCIAL services industry is receiving increased attention due to ever-changing regulatory requirements and current market conditions. How is The Hartford adapting to these changes? “At the Hartford, the needs of the customer always come first. From decades of experience underwriting financial institutions, we understand that insureds of different sizes and industries will have different insurance needs and requirements and have to adapt to a continually changing regulatory landscape,” said Anthony Battaglia, senior managing director at The Hartford. “We are able to do this by using our broad network of legal, economic, and compliance professionals to monitor the regulatory environment and adapt coverage to provide up-to-date solutions to address the evolving needs of our customers.”

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“We create tools and modeling that give our underwriters real-time data and insight into our market and claims trend analyses”

Anthony Battaglia, The Hartford

Heather Savino, financial services industry practice leader, added that “The Hartford uses a solution-oriented mindset for core P&C lines, where we also offer products and services for insurance companies, brokers, lenders, and a wide range of financial institutions.” Staying up to date on the latest risks for financial institutions allows The Hartford to bring an innovative approach to what their clients need, so that more of their coverage needs may be provided by one carrier.

The Hartford is addressing client needs to meet new requirements as well. Over the past two years, three industry-leading broker dealers have instituted insurance requirements for all registered investment advisors (RIAs) using their platforms. The Hartford FI Group has a particular focus on the asset management, private equity, and real estate investment trust (REIT) spaces and has a specialized unit dedicated to the needs of RIAs with under $2.5 billion in assets under management, which were heavily affected. “These new requirements affected thousands of advisors, particularly smaller ones who often never purchased this type of professional liability insurance,” said Battaglia. “To make this process seamless for first-time buyers, or those who did not buy the amount or type required by these firms, we developed a one-stop solution that incorporated coverages satisfying these new requirements. Our team was quickly able to offer a compliant policy, embedding additional specific coverages in their traditional director and officer and professional liability policies. The result is a quick, convenient, and easy solution for our current and potential insureds.”

In partnership with data analytics and actuarial teams, “we create tools and modeling that give our underwriters real-time data and insight into our market and claims trend analyses,” said Battaglia. “Not only do these internal resources support the underwriting process, but we are also more than willing to share our own learnings and help educate agents, brokers, and clients to help them get a better understanding of market dynamics as well. We view our work as a team-oriented approach, all built around providing our clients with the right solutions and top-tier service.” “We understand that insureds of different sizes and

According to a 2023 report by Deloitte on green bonds, they are defined as “fixed-income financial instruments used to raise capital to fund projects that benefit the environment, such as projects relating to renewable energy, energy efficiency, clean transportation, and green buildings.” The world’s first climate awareness bond was issued by the European Investment Bank in 2007. Since then, more than $2 trillion US has been raised in financing. Environmental Finance notes that the number of bond funds that invest most of their assets in “green, social, sustainability, and sustainability-linked” bonds rose from 75 in 2021 to 88 in 2022, making it an increasingly attractive part of the market.

Outside of the experienced underwriters and claims teams that work directly with brokers, The Hartford taps other in-house capabilities to make sure customers’ needs are met. “Our industry expertise is derived from multiple internal and external avenues. Internally we have dedicated legal, product, and compliance teams that work hand in hand with our financial institution underwriters. We also maintain constant dialogue with our in-house Economic & Political Risk team and HIMCO (Hartford Investment Management Company), our in-house asset manager. We use those learnings to enhance our underwriting knowledge, and stay abreast of trends, new regulations, and economic and other issues that influence and affect our market,” said Battaglia.

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Published 6 Nov 2023

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Best in Insurance

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“The Hartford uses a solution-oriented mindset for core P&C lines, where we also offer products and services for insurance companies, brokers, lenders, and a wide range of financial institutions”

Heather Savino, The Hartford

industries will have unique and ever-changing coverage needs that must continually adjust. We offer the ability to write primary or excess in all FI sub-industries, providing customizable solutions within each,” said Battaglia.

The Hartford is also providing solutions for financial services clients pursuant to emerging environmental, social, and governmental (ESG) factors. An example is their Green Bond Endorsement. “This coverage enhancement is provided on our REIT form and addresses the increased focus on ESG initiatives,” explained Battaglia. “REITS are large owners and developers of property; many are converting and developing buildings in more sustainable ways after raising capital through Green bonds.” Failure to use funds raised through these instruments for their intended purpose can create liability not specifically addressed in traditional D&O insurance. “Seeing a potential coverage gap, this endorsement specifically includes language expanding coverage to include instances where the terms and obligations of these bonds are not met by the insured,” said Battaglia. “Our intended purpose was to have this for our REIT clients, but now we can use it on policies for other industries.”

Customizing solutions for a changing risk landscape

The Hartford’s exclusive, in-house research team, called the Global Specialty Insights Center, is led by a seasoned economist, and allows brokers and clients to gain a deeper understanding of the trends that shape the global economy while providing added opportunities and actionable insights. Whether it be inflation, labor, or even geopolitical events, the Hartford has the resources to understand them in real time. “Our teammates at The Hartford invest meaningful time in developing expertise and specialization by staying connected to the industry centers of excellence, going beyond the walls of The Hartford to continuously build our specialization muscle and bring innovative solutions back to our customers,” said Savino.

Disclaimers This article provides general information, and should not be construed as specific legal, HR, financial, insurance, tax, or accounting advice. As with all matters of a legal or human resources nature, you should consult with your own legal counsel and human resources professionals. The Hartford shall not be liable for any direct, indirect, special, consequential, incidental, punitive, or exemplary damages in connection with the use by you or anyone of the information provided herein. Links from this site to an external site, unaffiliated with The Hartford, may be provided for users' convenience only. The Hartford does not control or review these sites, nor does the provision of any link imply an endorsement or association of such non-Hartford sites. The Hartford is not responsible for and makes no representation or warranty regarding the contents, completeness, or accuracy or security of any materials on such sites. If you decide to access such non-Hartford sites, you do so at your own risk. Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In Texas, Arizona, New Hampshire, Washington and California by Hartford Accident and Indemnity Company, Hartford Fire Insurance Company, Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Hartford Insurance Company of the Midwest, Navigators Insurance Company, Navigators Specialty Insurance Company, Maxum Casualty Insurance Company, Maxum Indemnity Company, Trumbull Insurance Company, Twin City Fire Insurance Company, Hartford Underwriters Insurance Company, Property and Casualty Insurance Company of Hartford and Sentinel Insurance Company, Ltd. and its property and casualty insurance company affiliates, One Hartford Plaza, Hartford, CT 06155. The Hartford Financial Services Group, Inc. (NYSE: HIG) operates through its subsidiaries, including the underwriting company Hartford Fire Insurance Company, under the brand name The Hartford,® and is headquartered in Hartford, CT. For additional details, please read The Hartford’s legal notice at www.thehartford.com.

According to a Gallup survey published this past May, more Americans are buying stocks.

More Americans buying stocks

61% of Americans reported owning stock

This is up from 56% reported in 2021 and 55% in 2020

This 61% is the highest since 2008

Stock ownership averaged 62% between 2001 and 2008 but fell after the 2007–2009 recession

Source: Gallup

Source: Statista

$500

billion

billion+

$90

billion

$487.1

billion

$36.7

13%

Total value of green bonds that have been issued worldwide, according to Statista

Percentage of world green bond market accounted for by the US

Peak value of green bond issues (2021)

Value of green bonds issued worldwide in 2022

Value of green bonds issued worldwide in 2014

Who is buying green bonds