Articles

New Association Aims to Strengthen Insurance Agency Networks

by Andrea Wells

An insurance industry lender is among those touting a new association for insurance agency networks. The lender, Live Oak Bancshares Inc., says it will not have ownership in the new group, Insurance Networks Alliance (INA), but will be an ongoing sponsor. Live Oak said the association is meant to represent and strengthen insurance agency networks…

Why Restaurants Are Underinsured

by Andrea Wells

Restaurants are probably one of the most underinsured classes of business in the industry. Competition, inadequate pricing, and owners refusing to buy needed coverages are some of the reasons cited by specialty brokers in this segment. Most restaurant and bar owners purchase property and liability coverage but there are often important coverages they forgo on…

Brokers Keep Trucking Market Motoring Despite Insurer Exits

by Andrea Wells

Trucking serves as a barometer of the U.S. economy, representing 70.6 percent of all domestic freight transportation tonnage and $676 billion, or 79.8 percent,of transportation revenues in the country. Despite the sector’s size, for many trucking firms, it’s a rough haul being profitable. “Trucking companies are caught in the middle between the shipper and the…

P/C Insurers Lost $5.1B on Underwriting in First Half of 2017

The U.S. property/casualty (P/C) industry recorded a net underwriting loss of $5.1 billion for the first six months of 2017, according to preliminary results, compared with a $2.0 billion loss in the same period a year ago. This financial review is detailed in a Best’s Special Report, titled, “A.M. Best First Look–2Qtr 2017 U.S. Property/Casualty…

The Emergence of Cyber Physical Cat Models and How the Risk is Changing

by Susanne Sclafane

A frightened truck driver dodging a barrage of bullets fired from the assault rifles of a drug-smuggling criminal gang doesn’t seem like the obvious description of the final stages of a cyber attack. But the real-life scenario that played out after the driver unwittingly picked up a cargo container that should have been filled with…

Brokers Bucking Disruption: How Wholesalers Hang On Through Change

As long as there is an insurance industry, wholesaler brokers believe they will have a role to play. “We will continue to be an important sector – a small sector – but still a very important sector of how insurance is transacted worldwide,” according to Neil Kessler, chief operating officer for CRC Group. Today’s wholesale…

Insurance Journal’s 101 Sales, Marketing & Agency Management Ideas

  1. Dare to Break the Mold. We tend to hit a sweet spot of what works for us in agency management and stay there, focusing on the “sexier” sales side of the business. It’s fine to keep what works, but always look to evolve your management processes for a competitive edge. — Mary Ann…

The Risky Market of ‘Adventure Tourism’

Vacationers and tourists are no longer content to sit and relax; they want adventure. The global adventure tourism market is forecast to grow by as much as 46 percent by 2020, according to the Global Adventure Tourism Market 2016-2020 report published October 2016 by SandlerResearch.org. In 2015, the adventure tourism industry generated revenue of $7.88…

How to Become a High Net Worth Insurance Specialist

The high net worth (HNW) specialty insurance market is a lucrative and developing segment of the insurance industry. According to the U.S. Census Bureau, 25 percent of Americans hold 74 percent of the country’s wealth, and this number is rising. Amassing this wealth takes hard work, determination and time, and the demand for HNW specialists…

Surplus Lines Insurance Premium Up Nationwide

A mid-year compilation of excess and surplus (E&S) insurance premium amounts by the Surplus Lines Stamping Office of Texas (SLTX) shows a 6.6 percent increase in premium nationally compared with the same period last year. SLTX used information from the 15 managing service offices across the U.S. region in its analysis. Across the U.S., service…

Industry Vet Markel to Super Regional Insurers: ‘Specialize and Diversify’

Insurance is a very simple business. “You take in some money, you spend some money and you lose some money, and God willing, you have some left at the end of the day,” according to Anthony (Tony) Markel, vice chairman of the board at Markel Corp., and a keynote speaker at the inaugural Super Regional…

Cyber Insurance Premium Volume Grew 35% to $1.3 Billion in 2016

Property/casualty insurers wrote $1.35 billion in direct written premium for cyber insurance in 2016, a 35 percent jump from 2015, according to reports by Fitch Ratings and A.M. Best. The largest cyber insurance writers are American International Group, XL Group and Chubb, according to the reports. These companies had a combined market share of approximately…

Privacy Is New Hot Workplace Issue for EPLI Claims

by Dick Clarke

About 40 percent of employment practices liability policies (EPLI) that I review fail to cover allegations of employment-related breach of privacy. These range from complaints that the employer failed to protect sensitive medical information properly to accusations of “spying” in areas such as locker rooms where employees might have a reasonable expectation of privacy. I…

Auto Insurance Market to Shrink by 70% by 2050: Report

Autonomous vehicle technology, a rise in on-demand transportation and a shifting of liability to manufacturers will shrink the auto insurance sector by more than 70 percent or $137 billion by 2050, according to updated research by KPMG. In a 2015 report, KPMG said the market would shrink by as much as 60 percent by 2040….

Survey: Agents Suggest How Carriers Can Move from ‘Good’ to ‘Great’

One would expect to see high levels of satisfaction between an independent agency and its top carrier, but that isn’t always the case. Peeling back the layers usually reveals fertile ground for improvement and shows the path to higher performance and more profitable agency-carrier relationships, according to preliminary findings in a new industry study. The…