Articles

When Small Business Needs Specialty Insurance

by Bryan Salvatore

Small business used to be associated with small exposures — simple business risks addressed with simple insurance products. However, changing customer needs and expectations, technology advancements, new regulations and evolving legal environment issues have dramatically changed the way small business owners run their companies. Small business is no longer simple. Small-business owners say employment-related issues,…

Report Outlines Climate Change Risks Faced by Insurance Sector

by Don Jergler

A newly issued report that’s being touted as the “first important review of climate risk by an international financial standard setting body” may get the attention of the insurance community. If it does, mission accomplished. That’s what the report was designed to do, according to its authors. The report is from the International Association of…

Flood Model Changes Help Hiscox Re & ILS Enter U.S. Flood Market

by L.S. Howard

Less than 12 percent of U.S. homeowners have a flood insurance policy, despite the fact that flooding is the country’s most common natural disaster, said Katy Sivyer, underwriter for North America and the Caribbean at Hiscox Re & ILS. This is why Hiscox Re & ILS launched a new U.S. personal lines flood product late…

Cybersecurity Tops D&O Liability Risks: Willis Towers Watson

Cybersecurity is the top directors and officers (D&O) liability concern for organizations today, while claims brought by employees, including claims for harassment or discrimination, and regulatory enforcement risks are also critical D&O exposures. According to Willis Towers Watson’s 2018 Management Liability (Directors and Officers) U.S. Survey, the top D&O risks in the coming year include…

Solving the Condo Coverage Puzzle

Have you ever watched someone try to finish a jigsaw puzzle with pieces missing? There are still a few hundred pieces to place, but there is one open space in the middle of a grove of trees that beckons to be filled. The puzzler spends hours combing through pieces that look like that hole. Eventually,…

Sam Walton’s 10 Rules to Run the Agency

by William 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

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

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…