Articles

Sam Walton’s 10 Rules to Run the Agency

by Bill Schoeffler & Catherine Oak

Sam Walton built the world’s largest retail store in the world: Walmart. In his autobiography, Sam Walton: Made in America, he detailed some of the keys that helped him build Walmart into an enduring company that has held the number one spot on the Fortune 500 for almost two decades. Walton developed 10 basic rules…

Survey: Conflicts of Interest Top List of Lawyers’ Malpractice Claims

New malpractice claims against lawyers are being driven by inadequate safeguards against conflicts of interest, along with participation in certain expanding and complex practice areas, according to a new study by insurance broker Ames & Gough. In its annual survey of lawyers’ professional liability claims, Ames & Gough examined the trend by polling nine of…

Workers’ Comp Underwriting Gains But Premium Growth Stalls

by Andrea Wells

Workers’ compensation insurers are managing their premiums dollars better than they have in years, but those premium dollars are stagnating even as employment and wages are rising. In 2017, for the fourth consecutive year they posted an underwriting gain — including an unprecedented combined ratio of 89 that is the lowest in the industry’s history,…

Construction Industry Growth Keeps Brokers on Their Toes

by Andrea Wells

Brokers who specialize in the construction industry love their clients and are very committed to keeping up with their needs. Ask them, “So what’s new?” and the conversations inevitably veer off in various directions: risk management, pricing, hot areas, technology, coverage questions and more. Here are just a few of the directions that emerged from…

6 Things to Know About the Private Flood Insurance Market

The private flood market is growing and profitable, according to Insurance Journal’s recent report on “Top Private Flood Insurances, 2017 Market Study.” Here are the top six facts from the report. For additional information, or to download the full report visit: https://www.insurancejournal.com/research/ – 1 – During 2017, the private flood market expanded considerably with 50…

3 Reasons Clients Need Personal Umbrella Coverage

There are at least three reasons for an individual to buy a personal umbrella policy. To begin with, the primary policies otherwise available generally do not provide liability limits commensurate with the exposure such individuals may face. Second, the cost of this excess coverage is comparatively cheap. Third (and perhaps most importantly), umbrella policies not…

WCRI: How Injured Workers’ Medical Professional Care Costs Compare in 35 States

Prices paid for medical professional services vary significantly across states, ranging from 26 percent below the median in Florida to 158 percent above median in Wisconsin, according to a 35-state study. States with no fee schedules for professional services had higher prices paid compared with states with fee schedules—39 to 168 percent higher than the…

Report: Rising Homeowners Losses Hurt P/C Insurers in 2017

Personal lines underwriting losses rose in 2017 for the fourth year in a row, Fitch Ratings found in a new report. There’s a twist, however. In the three years prior to 2017, personal automobile insurance contributed largely to underwriting losses. It is showing some improvement now, but homeowners insurance is now a major loss ingredient…

A.M. Best: How Data Privacy Laws Could Hamper Insurance Underwriting

Complying with the European Union’s new General Data Protection Regulation is leading insurers and reinsurers to dilute the types of data they gather—something that could diminish underwriting quality, A.M. Best said in its latest regulatory assessment. The GDPR kicked in last month. Carriers consulted by the ratings agency said they are pursuing compliance, in part,…

What to Expect in Global Commercial Insurance Market Growth

Global commercial property/casualty insurance premiums were worth approximately $730 billion in 2017 and by 2021 will rise to almost $900 billion. U.S. commercial P/C insurance premiums were worth $274.5 billion in 2017 and are forecast to rise to $331.5 billion in 2021. Those figures are from market reports from Aon Inpoint, insurance broker Aon’s data…

How to Succeed in Today’s Small Business Insurance Market

The small business market is big. The U.S. small commercial market represents about one-third of the total commercial lines market and generates between $99 billion and $103 billion in direct written premium, according to a 2016 McKinsey & Co. report. It could be a much bigger market as more businesses are being started. Since 1994,…

Insurance Journal’s 2018 Young Agents Survey: Change Wanted

Young agents want change. They want more diversity in the agency sales ranks. They want better paths to grow in their careers. They want other agents to adhere to professional standards and ethics. They want faster and better technology in their agencies and in the insurance companies they use. Most of all, today’s young agents…

What Scares Insurers Most: Cyber Hurricane or Silent Cyber?

Insurers in the cyber insurance segment have enjoyed exponential growth in the market over the last 10 years, and that is expected to continue as the world becomes even more connected via the internet. But while the growth in business is welcome, the exposure the industry itself faces to losses in the event of a…

Survey: Where Carriers Fall Short of Agent Expectations

There appears to be a misalignment between carrier performance and independent agents’ expectations in both personal and commercial lines. These are selected findings of “Agent Voices 2018,” a soon-to-be-released report based on a survey of the nation’s independent agents cosponsored by Channel Harvest Research and Insurance Journal. In commercial lines, agents expect high underwriting performance…

Allianz to Back Off Insuring Coal Operations as it Expands Climate Strategy

The Allianz Group “is significantly expanding its climate strategy.” The German insurance giant recently announced a commitment to support the change to a low-carbon economy over the coming decades, and is setting for itself long-term climate goals that are linked to the 2-degree Celsius target outlined in the Paris Climate Agreement. Allianz plans to have…