Insurance – Scott Sink

Lloyd’s of London – A Focal Point of Insurance Industry History

Since 1994, Scott Sink has served as senior executive vice president in charge of marine and energy insurance and risk management with McGriff, Seibels, and Williams in Birmingham, Alabama. His scope of responsibility includes working with North American and overseas insurance providers and networks. Among the best-known organizations with which Birmingham-based Scott Sink coordinates is Lloyd’s of London (formally called Society of Lloyd’s), the British insurance market that is close to three and a half centuries old.

In the 1680s, Edward Lloyd established a marine insurance provider out of his coffee house on Tower Street. His premises had already become a popular site for seamen, bankers, merchants, and underwriters to gather to conduct informal business agreements.

Formally incorporated in 1871, Lloyd’s gained in 1911 the right to expand the scope of its insurance to cover property far beyond maritime assets.

From its current headquarters on Lime Street, Lloyd’s facilitates transactions for numerous prominent individuals and organizations, still maintaining one of its best-known concentrations in higher-risk transportation industries.

In contrast to the majority of other entities that facilitate insurance buying and selling, Lloyd’s is not itself an insurance firm, but rather a true marketplace, where brokers, buyers, syndicates, agents, and cover-holders can come together to transact business.

Effectiveness of External Audits Reevaluated

Scott Sink of Birmingham, Alabama is a senior executive and Energy Division practice leader at McGriff, Seibels & Williams, Inc. Active with the Risk & Insurance Management Society (RIMS), Birmingham professional Scott Sink attends the organization’s annual conference.

A recent RIMS’ Risk Management article brought focus to the role that the external audit plays in providing checks and balances as well as in ensuring that stakeholders and regulators have accurate information about companies’ risk profiles and finances.

A legal requirement among large companies, external audits provide clean bills of health to those companies with sound fundamentals, as well as “qualified statements” and “adverse opinions” when issues arise. A “disclaimer of opinion” report reflects a situation in which management or conflicts of interest have prevented auditors from doing their job in the proper manner.

Accounting errors, objectivity issues, and quality of reporting have increasingly become an issue, with Big Four audit firms drawing particular attention for high-profile defective audits. According to the RIMS article, there are many proposed ways of boosting audit quality, from regulatory action to better board and industry policing. One issue is that, with proprietary technologies and intellectual property in play, it is no longer simply enough to look at balance sheet performance to get an accurate assessment of where a company stands financially.

What Is an Insurance Broker?

Cropped image of businessman checking messages in smartphone and taking notes in planner

Scott Sink has worked for Birmingham, Alabama-based McGriff Seibels & Williams since May 1994. As one of the Birmingham company’s leaders, Scott Sink is in charge of providing insurance brokerage for electric and gas utility companies.

Insurance brokers specialize in risk management and insurance. They help their clients, both individuals and companies, buy insurance from providers. They also furnish advice during the process and help their clients choose the appropriate policy or policies for their needs. Insurance brokers work with all types of insurances, including property, casualty, auto, life, and others.

Typically, an insurance broker is compensated via commissions from successfully closed deals or an agreed upon fee from the client. On commission deals, the percentage amounts range from five percent to ten percent, though the exact percentage depends on state laws and regulations. Rules under which insurance brokers work depend on state laws and regulations. Typically, they need to have a broker license. To obtain it, they have to pass exams and take courses.