Weekly Dispatch: Aug. 4, 2022

August 4, 2022

The Weekly Dispatch is going on vacation. There will not be a Weekly Dispatch distributed on Aug. 11, 2022. The publication will resume Thursday, Aug. 18, 2022. Keep up with what is happening with PIA Northeast on social media: Facebook, LinkedIn and Twitter.


Report: Consumers are interested in telematics

According to a recent report by LexisNexis, U.S. consumers want to hear from their automakers about connected services, safety recalls, warranties, insurance discounts and other benefits. Insights from more than 2,000 U.S.-based connected car owners highlight the opportunities for automakers to further engage with their customers, create new and used vehicle brand loyalists, and realize the return on investment for connected vehicle technology. How you can educate your insureds: While this increasing interest in connected vehicles may encourage the insurance-buying public to consider telematics to influence their insurance premiums, they should be aware of the privacy that they may forfeit if they decide to let their insurance companies track their driving habits.

Conn.: CID issues notice on inflation guard percentages

Recently, the Connecticut Insurance Department issued a notice to all property/casualty insurers to remind them that when they adjust their costs due to inflation, the current percentages of inflation may surpass the maximum inflation percentages allowed by the department. According to the notice, if a company uses inflation factors that exceed the CID’s maximum percentages, it must submit the rate filing through its System for Electronic Rates & Forms Filing, and it must include actuarial documentation to support the increase.

N.H. experiences favorable rate reduction in WC market

On Tuesday, the New Hampshire Insurance Department approved a rate proposal filed by the National Council on Compensation Insurance that will reduce voluntary workers’ compensation loss costs by 7% on average. Loss costs in the voluntary market have decreased in each of the last 10 years, and more than 50% cumulatively over this period. The loss cost is the portion of an employer’s insurance premium that pays claims costs for work-related injuries. The loss cost is used ultimately by insurers to set rates and premiums in the voluntary market. All insurers writing voluntary workers’ compensation in New Hampshire are required to use the new loss costs, and they are permitted to adjust for their own company expenses. The new rates will apply to policies effective starting on Jan. 1, 2023.

N.Y.: DFS proposes updates to cyber security regulation

The New York State Department of Financial Services released proposed updates to the cyber security regulation for financial services companies. The proposed updates include incorporating ransomware attack preparation and responses into the regulation. This is a response to the spike in such events in the last two years. All entities would be required to conduct risk assessments annually and there would be increased requirements for companies with over 2,000 employees or over $1 billion in gross annual revenue. The proposal also would expand the eligibility requirements for the partial exemption, increasing the number of employees to qualify from 10 to 20 and increasing the threshold for year-end assets to $15 million. PIA Northeast is reviewing the proposal and it will submit comments.


NCCI issues residual market second-quarter reports in Connecticut, New Hampshire and Vermont

The National Council on Compensation Insurance has released its CT Residual Market State Activity Report Second Quarter 2022, NH Residual Market State Activity Report Second Quarter 2022, and VT Residual Market State Activity Report Second Quarter 2022, which include: charts illustrating the total number of policy counts and/or premium volume over the past four years for the same quarter each year; tables listing the top 10 classification codes by policy count and premium volume (these show which class codes have top ranking and the percent of policies and percent of premiums); and charts with loss ratio, ultimate net written premium, incurred losses, and estimated net operating gain/loss information (these show premiums, gains and losses during a period).

N.J.: DOBI issues recoupment order for NJPLIGA

Recently, the Department of Banking and Insurance issued a recoupment order granting permission to New Jersey Property-Liability Insurance Guaranty Association member insurers to surcharge their policyholders. The order is in response to a decision by the board of directors of NJPLIGA to assess member insurers 0.5% of each carrier’s property/casualty net direct written premium. Notices for the 2022 NJPLIGA assessment were issued on Aug. 1, 2022, with payments on net balances due by Thursday, Sept. 15, 2022. These member companies are prohibited from recouping this assessment from their insureds without the DOBI first issuing an order giving them permission to do so. The order permits member companies that have paid their 2022 assessment to impose a surcharge in an amount not to exceed 0.5% on policies that are issued or renewed on or after Saturday, Oct. 1, 2022. However, if the insurer has not fully recouped any previous NJPLIGA assessment an additional surcharge not to exceed 0.6% may be imposed.

Educating insurance agents

N.Y.: New classes that meet the New York State Department of Financial Services’ new CE requirements are available online and in private on-site sessions.

Build your credibility and enhance your clients’ trust

When it comes to protecting their insureds, insurance agents should increase their credibility, trust and perception. Agents can strengthen these traits through the Trusted Risk Advisor Certification Program, which provides agents with opportunities to advance their ability to deliver an enterprise risk-management method through logical, disciplined and results-oriented frameworks; to sharpen their growth mindsets; and to consider additional tools and tactics that can improve performance. The TRA certification program—which is provided by PIA and Beyond Insurance—is comprised of four online course modules that agents can take starting in September. PIA Northeast members can take these classes at a discounted rate. For more information, download the TRA brochure or watch a 4-minute video.


N.J./N.Y.: Did you attend Annual Conference?

Did you take part in the Annual Conference hosted by PIANJ and PIANY earlier this summer? You can read all about the event and see photos from the event in the related article on PIA Northeast News & Media.

Register now

Monday, Sept. 12, 2022: PIANJ Golf Classic

Thursday, Sept. 29, 2022: PIANH Symposium

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