Corporate Senior Vice President of H.W Kaufman Group

Emmanuel Manuelidis is Corporate Senior Vice President at H.W Kaufman Group. With more than two decades of experience in the insurance industry, he brings a wealth of knowledge and expertise required for his position. As a leader, he is known for his ability to seamlessly navigate complex legal and regulatory issues to provide exceptional service to clients.

Could you describe your career journey so far and your key responsibilities at H.W Kaufman Group?

After graduating from law school, I began my career as a trial attorney at an insurance defense firm. Later, I relocated to Michigan and joined H.W Kaufman Group in 2007. Presently, I hold the position of Corporate Senior Vice President at H.W Kaufman, where I oversee claims and litigation for the team. Additionally, I am fortunate to be part of Atain Insurance Company, allowing me to gain insight into new business ventures.

How is social inflation impacting the insurance industry and what can be done to navigate the situation?

Social inflation is on the rise, causing insurers' claim costs to exceed general economic inflation and impacting individuals' ability to obtain insurance. While predicting social inflation remains challenging, there are steps that can be taken to raise awareness about its effects. This must start with the  insurance industry  taking an active role in educating people about the costs associated with  nuclear verdicts.  The basic message needs to be that consumers will end up either paying for these costs themselves or, in certain cases, be unable to obtain adequate insurance in certain areas or for specific lines of business. 

In recent times, I have observed a tendency for juries to favor plaintiffs in litigation, leading to a growing distrust of corporations. The use of the reptile theory and anchoring by the plaintiff's bar has further exacerbated the situation. To stay informed about these changes, I regularly refer to commentaries by Professor Robert Hartwig from the University of South Carolina, which provide valuable insights into the factors contributing to social inflation and higher litigation costs.

Combating social inflation also has to be done at a granular level on a case by case basis.  At our orgnization, we actively seek out attorneys and experienced claims professionals to  delve into the intricacies of cases to minimize significant losses for our clients. The law of the jurisdiction where the loss occurs and the specific venue needs to be evaluated.  For each claim, we must analyse factors such as the actual damages alleged, how the claimant and our insured will be viewed by a jury, and whether the state has pure comparative negligence or a 50-50 negligence framework, all of which can greatly impact the outcome 

“The insurance industry should take a proactive role in educating people about the costs associated with nuclear verdicts  and the significant impact upon consumers.”

Although many factors contribute to social inflation, one additional factor that I would like to see emphasized more is the erosion of liability defenses. Liability has suffered a significant decline in both  legislation and court decisions.  Although there are numerous examples to discuss, one recent trend has been the lack of enforceability of liability waivers in numerous jurisdictions.  Consider the Kentucky Supreme Court, which recently ruled that liability waivers were unenforceable in a case where a parent signed a liability waiver on behalf of their child at a trampoline park.  Part of the logic of the Kentucky Supreme Court, in its ruling, was the ability of the trampoline park to purchase insurance.  This is a significant departure from past court rulings, which found that insurance, or whether someone is insured (or not), has no bearing on the issue of liability and should not be considered.  Additionally, although this case involved a minor, many other state judiciaries have held that there is a presumption against liability waivers for adults or that they are unenforceable as a result of public policy.

In your experience what will be your advice to the fellow peers in the insurance?

The insurance industry offers abundant opportunities for learning and personal growth. It is crucial for us to dedicate time to continuous learning, conducting thorough research, and studying each case, jurisdiction, and venue involved. Familiarity with negligence laws is essential in navigating these cases effectively. Additionally, the ability to both fully understand the intent  of insurance policies for each coverage in comparison with what is actual written in the policy are very important skills.

I find the surplus lines insurance industry to be both enjoyable and rewarding, and I am immensely grateful for the opportunities that I have been given at H.W. Kaufman to learn, grow, and contribute to the well-being of individuals and businesses.

Remaining open-minded and staying informed about industry changes is paramount, as the insurance industry is constantly evolving. By embracing these changes and adapting to new developments, we can better serve our clients and stay ahead in this dynamic field.