Articles

I recently read an article regarding how the U.S. Senate wants to investigate how well reserved Florida Citizens is because of their expressed concern that if a large hurricane destroys enough property insured by Florida Citizens, will Florida Citizens have the wherewithal to pay claims? That seems like a pretty reasonable question to ask and because the state is the insurer, a reasonable person m...

The excess and surplus lines insurance market is a rapidly-growing avenue for the placement of insurance policies in the United States. Many alien (non-U.S.) insurance carriers write surplus lines insurance coverage via their inclusion on the NAIC IID Quarterly Listing of Alien Insurers, and there has been exponential growth in the formation of "domestic surplus lines insurers" that are U.S.-based...

As workplace barriers for minority groups have been challenged, diversity has improved in traditionally male-dominated professions. While it's encouraging to see the work being done to attract and promote women in the construction profession, there is still a very long way to go. A recent report from the Equal Opportunity Employment Commission says, "Women and people of color are underrepresented...

Recently, I spent a week learning about an entirely different industry than insurance. It was a great education. Along the way, I also learned about their insurance situation. As is common, provably common, about insurance coverages for small and medium sized businesses, they were grossly underinsured. Our own industry states that 75% of small businesses are underinsured and more than 70% don't ev...

I conceive that the great part of the miseries of mankind are brought upon them by false estimates they made of the value of things.” – Benjamin Franklin Last year, I participated in a panel discussion on property undervaluation at the annual conference of the American Association of Insurance Management Consultants. It is no secret that the majority of buildings in this country, both commercial a...

Yesterday was my son's 12th birthday but he didn't spend it unwrapping presents or gorging on ice cream and cake. Most of our evening was spent solemnly observing unspeakable horror and devastation as the events of Sept. 11, 2001, unfolded." That was the opening paragraph in an insurance coverage article I wrote for the Big "I" Virtual University (VU) on Sept. 12, 2001. My son recently celebrated...

Small business owners are optimistic about their future with 71% expecting revenue increases in 2024, according to Q3 2023 MetLife & U.S. Chamber of Commerce Small Business Index. The survey found that 42% of small businesses say they plan to increase investment in the next year and two in five (40%) small businesses say they anticipate increasing staff in the next year. While small businesses...

The transportation market is experiencing lower freight rates and excess capacity as fewer loads are shipped with demand for goods down from its pandemic-era peak. The trucking sector in particular is encountering challenges, including ongoing driver shortages, the high price of diesel and increased operational costs. As trucking firms face tighter profit margins, they're shopping hard for lower i...

Connecting the insurance ecosystem through the power of technology could answer the decades-old problem of duplicate entry for agents. Agents still must navigate through multiple carrier portals to complete a single quote, despite the promise of integrated solutions. Or agents hit barriers trying to utilize agency data when one technology platform simply can't "speak to" or connect to another plat...

Construction is like insurance. The basics don’t change much, but when there are new developments, they can alter the trajectory of the industry. Building innovations — namely 3D construction, solar panels and cross-laminated timber — are changing builders risk insurance exposures, leaving a gap in knowledge for agents. As these construction techniques grow in consumer interest, it’s important for...

The hospitality industry has entered a new chapter. For those who weathered the recent near collapse of the sector, the American Hotel & Lodging Association entered 2023 with optimism that hotel room demand would surpass pre-pandemic levels and occupancy rates would continue trending upward. This confidence continued in May, when the AHLA forecasted a strong summer travel season for both business...

Small business accounts are the bread and butter for most agencies. The good news: small businesses are increasingly satisfied with the insurance products and services they receive from their providers. Thats according to the 11th annual JD Power 2023 U.S. Small Commercial Insurance Study, which showed overall customer satisfaction reached an all-time high of 847 (on a 1,000-point scale) as custom...

The private flood insurance market has been growing but 2023 may provide a real test following Tropical Storm Hilary in California, as well as future storms that may come during the remainder of the Atlantic hurricane season. According to AM Best, the federal National Flood Insurance Program’s (NFIP) use of new data, models and technology incorporated within its Risk Rating 2.0 underwriting method...

The U.S. homeowners insurance segment has been hit with three consecutive years of net underwriting losses as a result of above-average numbers of natural catastrophes, inflationary pressures and elevated reinsurance costs. These market headwinds have led AM Best to revise its outlook on the segment to negative from stable. Segment carriers are being challenged “by more frequent secondary weather...

When you hear or read the term, “artisan contractor,” what do you think of? Don’t search it, and if you deal with artisan contractors, don’t shout out the answer. I can tell you that I thought of custom cabinet makers and carpenters who do intricate woodwork that reminds you of the artists of generations past. It turns out that artisan contractor is a term for any contractor that does specific con...