Weekly Dispatch: Sept. 15, 2022

September 15, 2022


Fraud steals $308.6B from consumers and businesses

According to research by the Coalition Against Insurance Fraud, insurance fraud costs U.S. consumers and businesses $308.6 billion each year. This is the first time the figure has been updated in 27 years—by comparison in 1995 the coalition estimated that fraud cost Americans $80 billion annually. This also is the first time the research has been expanded beyond the property/casualty sector. It now includes (but is not limited to) life and health, workers’ compensation, and auto theft. The break down is $45 billion for property/casualty; $34 billion for workers’ compensation; $36.3 billion for health; and $74.7 billion for life insurance.

Study explores consumer attitudes on insurance

A study conducted by Chubb explores the attitudes on insurance-related matters across five generations of affluent and high net worth consumers in the U.S. and Canada. The findings of “Selling Across Generations” reveal differences in how each generation searches for and purchases insurance, what they look for in an insurance carrier, their current coverages, the kinds of media they trust most, and how they currently engage with insurance agents. According to the study, Gen Z and millennials are the generations most likely to want their insurance agent or broker to advise them on their decisions. Nearly half (46%) of Gen Z (born 1997-2012) and 43% of millennial (1981-96) respondents welcome this direction—compared to just 21% of Gen X (1965-95), 36% of baby boomers (1946-64), and 29% of the Silent Generation (1928-1945). The younger generations also are the most receptive to having their agent or broker educate them on how insurance products and services can match their long-term goals. Majorities of Gen Z and millennial respondents welcome that education (53% for both) versus about two-in-five for Gen X and baby boomers. The study also found that younger generations are more likely to use social-media reviews when choosing an agent or broker to advise them. Most Gen Z (94%) and millennial (89%) respondents rely on social-media reviews ahead of choosing an agent, compared to 64% for Gen X and 56% for baby boomers.

FEMA looking to offer NFIP policies online?

Recently, the procurement office of the Federal Emergency Management Agency issued a request for information regarding a proposal to offer consumers the option of purchasing a National Flood Insurance Program policy online. The RFI provides some background on the history of the NFIP and its recent implementation of its Risk Rating 2.0 methodology for all new and renewing policies. It describes the structure of the Write-Your-Own program and the NFIP Direct and suggests the program could easily adapt to a format in which consumers use an online platform to purchase NFIP policies, potentially without the participation of either carriers or independent agents. While PIA objects to the practice for several reasons, the biggest risk to selling this insurance online is the chance that consumers will make unsuitable choices because they lack the knowledge to understand their risks and how best to protect themselves. Without the expert advice of independent agents, consumers are liable to misunderstand their level of risk and make uninformed decisions that leave their properties unprotected.

N.Y.: WCB appoints new executive director

Steven M. Scotti has been appointed as the Workers’ Compensation Board executive director, effective last week. Scotti joins the board with many years of relevant industry, government, and leadership experience. Most recently, he served as acting deputy general counsel for the Workers’ Compensation Division of the MTA–New York City Transit Authority.


N.Y.: PIANY seeks industry stars—nominate someone today

PIANY is calling for nominations for its 2022 Distinction of Professionalism awards, and nominations are due Monday, Oct. 10, 2022. The association will honor insurance professionals who exemplify the qualities and actions that serve as a model of excellence in the insurance industry and for the independent agency system. Nominations are being sought for these awards: Professional Agent of the Year, Distinguished Insurance Service Award, and Company Person of the Year. For a full description of each award, or for a nominate form click here.

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.

N.J.: Webinar: CISR William T. Hold Seminar

PIANJ will host a CISR William T. Hold Seminar as a webinar on Friday, Sept. 23, 2022. These seminars are designed as advanced training opportunities for experienced customer services representatives. Developed especially for insurance professionals who have earned their Certified Insurance Service Representative designation, this course satisfies the annual CISR update requirement. However, it is open to anyone (not just those with the CISR designation). This webinar’s agenda will include two courses: Personal Umbrella/Excess Liability and Commercial Casualty Problems and Solutions. This seminar has been submitted for continuing-education credits. Register today.

Help clients understand their life/health insurance options

PIA Northeast will host a webinar 2022 CISR LHE: Life & Health Essentials, Sept. 28-29, 2022, taught by Mishell K. Magnusson, CIC, CISR, CPIA, AAI, FIPC. This course will help participants build a better understanding of what their clients need to know about life and health insurance. Explaining the benefits of having the proper life and health insurance is key to the financial wellbeing of your clients. Health insurance includes a diverse assortment of policies—from medical expense coverage to vision care and dental coverage—plus a variety of delivery systems and health plans designed to manage the high cost of care. This course will help you be better prepared to answer questions about analyzing the need for and placement of life insurance. This course has been approved for CE credits in Connecticut (7LH), New Hampshire (contact MAIA (508) 634-2900), New Jersey (7 GEN, designees in good standing will receive 12 CE credits) and New York (7 C1, LA, LB, LSB, earn 1 additional CE credit with exam).

Register now

Thursday, Sept. 29, 2022: PIANH Symposium

Wednesday, Oct. 19, 2022: 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 Spooktacular

Thursday, Oct. 27, 2022: Save the date: CTYIP Fall Reception

Thursday, Nov. 3, 2022: Save the date: PIWA Fall Reception

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