Weekly Dispatch: Aug. 25, 2022

August 25, 2022


Inform clients about insurance issues, gain E&O protection

The Fall/Winter issue of Your Business—a consumer newsletter that focuses on commercial-lines issues for your clients—will be available soon. You can send this newsletter, which will focus on flood insurance and the National Flood Insurance Program’s Risk Rating 2.0; flexible-work environments and how they may affect a businesses’ cybersecurity; the unique insurance concerns for volunteer directors and officers; and the insurance needs of seasonal businesses to your commercial-lines clients. Consumer newsletters are a great way to educate your clients about important insurance issues and coverages while helping your agency obtain protection against errors-and-omissions claims. If you’d like to order this issue of the newsletter, email PIA Design & Print Account Manager Calley Rupp.

Dedicated reinsurance capital growth may not continue

Dedicated reinsurance capacity in 2021 increased to $568 billion, driven by an increase of nearly 11% from traditional reinsurance capacity providers. However, according to AM Best’s report “Dedicated Reinsurance Capital Growth of 2021 May Not Continue,” the spike may be short-lived given expectations for depressed investment markets, continued geopolitical turmoil and a potential decline in global gross domestic product. According to the report, the expectation for 2022 is that total dedicated capital will slide back after a decade of year-over-year increases, driven by reductions in traditional reinsurance capital. Although underwriting returns for many companies have been close to break even in recent years, capital levels grew through investment gains and inexpensive debt financing; the start of 2022 has seen a reversal of most of these conditions.

NAIC passes Pet Insurance Model Act,
NHID hosts consumer-focused webinar on topic

The National Association of Insurance Commissioners members passed a Pet Insurance Model Act to establish appropriate regulatory standards for the pet insurance industry, which has annual premiums of approximately $2.8 billion in total in-force premiums in 2021 (up over 30.5% from $2.175 billion in 2020) and over 4.41 million insured pets across North America—up 27.7% from over 3.45 million pets insured in 2020, according to the North American Pet Health Insurance Association. The key elements of the NAIC’s model include consumer protections, pre-existing conditions, wellness programs and training requirements. Pet insurance continues to be a hot topic. Last week, the New Hampshire Insurance Department hosted a webinar for consumers, which focused on the pet insurance market. The webinar can be found here.

A car’s color may indicate its likelihood of being in an accident

Kelley Blue Book indicates that the most popular car color is silver—with white coming in at second place. Several studies, including one conducted by Monash University’s Accident Research Centre have found that darker-colored cars have a higher risk of being involved in a collision compared to cars of other colors. In the Monash study, black cars are 12% more likely to be involved in a collision, compared to white cars. This probably is because darker cars are lower on the visibility index. If your clients are in the market for new cars, it might be a good idea to suggest that they give some thought to the vehicle’s color before they buy.

N.Y.: Primaries: Nadler, S. Maloney, Goldman, Langworthy win

New York’s chaotic year of drawn-out redistricting led to some unexpectedly competitive primary elections on Tuesday. In the competition between longtime Representatives Jerrold Nadler and Carolyn Maloney in the state’s 12th District primary, Nadler defeated his longtime colleague with 55.4% of the vote. In an exceptionally crowded Democratic primary in the state’s 10th District, Dan Goldman won with 25.8% of the vote. Sean Patrick Maloney and Robert Zimmerman also won their contested races, and they will represent the Democrats in their respective districts in November. The competitive Republican primary to run in the state’s 23rd District went to Nick Langworthy over Carl Paladino with Langworthy receiving 52.1% of the votes. For state Senate, the incumbents held on to their seats—with redistricting making some races far more competitive in November.

N.Y.: Special election won by Pat Ryan

Democrat Pat Ryan won the special election to fill Lt. Gov. Antonio Delgado’s vacated seat in New York’s 19th District, defeating Republican Marc Molinaro with 51.9% of the votes. The swing-district race was closely watched nationally for what it could indicate for each major party in November. In a New York twist, Ryan and Molinaro will both run again in November for different seats. Due to redistricting, Ryan also won the primary to run for re-election in the state’s 18th District, while Molinaro won his primary to run again in the 19th District.


NY-YIP honors Chadwick as YIP of the Year

Earlier this month, the New York Young Insurance Professionals presented NY-YIP President Ed Chadwick of Jencap Specialty Insurance Services with its YIP of the Year award. Chadwick was honored for his commitment to professionalism, networking, and service, and contributions to the growth and development of the insurance leaders of tomorrow. The award was presented during the 29th annual NY-YIP Golf Open at the Mill River Golf Club, Oyster Bay, N.Y.

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.

Take your credibility to the next level

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 Sept. 12-16, 2022. The September module has been approved for continuing-education credits in New York, and it has been submitted for CE credits in Connecticut and New Jersey. PIA Northeast members can take these classes at a discounted rate. For more information, download the TRA brochure or watch a four-minute video.

FEMA: Free webinars on flood for agents

The Federal Emergency Management Agency is hosting a free two-part webinar in early September, which is designed to help agents advise their clients on the value of flood insurance. During the webinar, industry leaders will discuss navigating changes to flood insurance under Risk Rating 2.0: Equity in Action, a major update to the National Flood Insurance Program. Attendees will learn effective strategies for communicating the importance of flood insurance and risk to clients and overcoming challenges to expand your book of business. Part One will be held Tuesday, Aug. 30, 2022, at 11 a.m., and Wednesday, Aug. 31, at 3 p.m. Part Two will be held Wednesday, Aug. 31, at 11 a.m., and Thursday, Sept. 1, at 3 p.m.

Register now

Monday, Sept. 12, 2022: PIANJ Golf Classic

Thursday, Sept. 29, 2022: PIANH Symposium

Wednesday, Oct. 19, 2022: Save the date: PIANJ Women’s Leadership Alliance Golf Clinic

Tuesday, Oct. 25, 2022: Save the date: Capital RAP—Interested in sponsoring, exhibiting or advertising?

Thursday, Oct. 27, 2022: NJYIP Halloween Spooktacularnominate the YIP of the Year, deadline: 9/1/22

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