Weekly Dispatch: Oct. 6, 2022

October 6, 2022


Inflation challenges are still here: Help your clients prepare

Inflation impacts all aspects of our lives—but it is having an outsized impact on the cost to repair or replace cars and homes. Data reveals that 20% of homeowners don’t know how much they pay for home insurance—so chances are, many will not anticipate the impact inflation will have on their premiums. Agents can help clients prepare for the increased premiums that will result. As advisers to their clients, independent agents should be able to forewarn policyholders—so they can adjust their budgets—and provide sound advice about what to do (or not to do) to address rising premiums (e.g., using higher deductibles, not reducing their coverage, or shopping for a new carrier).

Study: Rising auto premiums are killing home bundles

The future of the home and auto insurance bundle—once a mainstay of property/casualty insurance customer retention and lifetime value strategies—has come into question as legions of customers have started to break-up their polices. According to the J.D. Power 2022 U.S. Home Insurance Study, released recently, rapidly rising auto insurance premiums are largely to blame for potential defection among bundlers.

Verisk releases insured-loss estimate from Hurricane Ian

Verisk estimates that insured losses to onshore property for Hurricane Ian will range from $42 billion to $57 billion. The industry loss estimate includes estimated wind, storm surge, and inland flood losses resulting from Ian’s landfalls in both Florida and South Carolina. The loss estimate excludes certain elements, such as losses to the National Flood Insurance Program and any potential impacts of litigation or social inflation, that could cause the total insured industry loss to exceed $60 billion. Wind damage of $38-$51 billion comprises most of the loss estimate. Storm surge (excluding losses from the NFIP) account for $3-$5.5 billion of the loss estimate, and inland flood less than $1 billion. Approximately, 1% of the total industry loss will come from the impacts of Ian’s South Carolina landfall.

NFIP renewed until Dec. 16

On Sept. 30, 2022, President Joe Biden signed legislation passed by the U.S. Congress that extends the NFIP’s authorization to Saturday, Dec. 16, 2022. This is the 21st extension of the program since 2017.

Connecticut releases annual crime statistics report

The state of Connecticut released its 44th annual Crime in Connecticut Report for 2021. Data from the report shows that between 2020 and 2021, the state experienced a: 3% reduction in overall crime; 9% reduction in violent crime; and a 2% reduction in property crimes. Additionally, the report finds that over the last 10 years overall crime in the state has fallen 30%—including a 43% reduction in violent crime, and a 29% reduction in property crime.

PIANY installed 2022-23 officers and elected directors

PIANY elected its officers and board of directors last month during its annual business meeting in Albany. The PIANY officers installed were: President: David L. Sidle, CIC, CPIA, of David L. Sidle Agency Inc.; President-elect: Gary Slavin, CLTC, CIC, LUTCF, of Mass Mutual; First Vice President: Rich Andrews, LUTCF, of Andrews Agency Inc.; Vice President: Jason E. Bartow, AAI, CPIA, of Bartow Insurance Agency; Treasurer: Michael A. Loguercio Jr., of BELFOR Property Restoration; Secretary: Raymond J. Gillis Sr., FIC, FICF, of Fire Mark Insurance Agency Inc.; and Immediate Past President: Tim Dean, CIC, CRM, of Marshall & Sterling Inc. Richard A. Savino, CIC, CPIA, of Warwick Resource Group in New York, will serve as national director. The following individuals will serve as directors with terms expiring in 2023: Peter Buccinna of XS Brokers; Eric Cohen of Benefit Quest Inc.; Justin Fries, CIC, CPCU, CPIA, of Garber Atlas Fries & Associates; Jorge Hernandez of North Franklin Brokerage Inc.; David Lande, JD, CIC, of EPIC Insurance Brokers and Consultants; Jon Lipton, CIC, CRIS, of Castle Rock Capacity LLC; Leslie C. Rogoff of Madison Avenue Brokerage; and Richard Signorelli of Azby Brokerage Inc.

N.Y.: October is Cybersecurity Awareness Month

Gov. Kathy Hochul has proclaimed October as Cybersecurity Awareness Month. It is part of joint state and national efforts to engage and educate the public about cybersecurity and provide tools and resources to help them stay safe online. If you need to purchase cyber liability insurance for your agency, PIA Northeast offers a product that can help you.


N.J.: Resources for mandatory insurance for businesses law

In August 2022, Gov. Phil Murphy signed legislation that require businesses operating in New Jersey to purchase certain levels of liability insurance. The law requires business owners to purchase liability insurance in an amount not less than $500,000 for combined property damage and bodily injury to or death of one or more persons in any one accident or occurrence. Owners of multifamily homes with four or fewer units are required to maintain liability insurance in an amount not less than $300,000. Business or rental owners are required to file a certificate of insurance demonstrating compliance with this insurance requirement with the local municipality in which the business or rental unit is located. Municipalities are permitted to charge a filing fee, as well as fine business or rental units, up to $5,000, that do not comply. If you are looking for more information about what this law means for your business and landlord clients, PIANJ has two reference documents in its QuickSource library: What you need to know about New Jersey’s new mandatory insurance law for businesses; and What you need to know about New Jersey’s new insurance law for landlords.


Conn.: WC disability benefit adjusted Oct. 1

The State Labor Commissioner has determined that the estimated average weekly earnings of all employees in Connecticut—effective Oct. 1, 2022—has increased from $1,446 to $1,509. Therefore, the maximum compensation rate for total disability and decedents’ dependents now is $1,509 for injuries occurring on or after Oct. 1, 2022. The maximum compensation rate for partial disability is equivalent to the average weekly earnings of production and related workers in manufacturing in Connecticut, which the commissioner has determined to decrease from $1,140 to $1,108, effective Oct. 1, 2022.

NCCI files 3% reduction in WC loss costs in Connecticut

The National Council on Compensation Insurance is proposing that the Connecticut Insurance Department approve an overall average change of -3.0% to the current voluntary loss costs and no change to the current assigned risk rate level effective Jan. 1, 2023. Details of the filing and notice of public comment are presented in CID’s Public Notice.

NJCRIB files 4.7% reduction in WC rates for 2023

The New Jersey Compensation Rating and Inspection Bureau submitted a filing to the Department of Banking and Insurance seeking a 4.7% decrease in the overall premium and rate level effective Jan. 1, 2023. The proposed revision is based upon the most recent experience and a review of classification relativity. Additionally, the filing proposed several Manual amendments and changes to experience and retrospective rating values. If approved, this would be the eighth year in a row without an increase.

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.

CE opportunity: Understand the new NFIP

Join popular instructor Steven D. Lyon, CPCU, CIC, CRM, CRIS, AAI, ARM, AIS, MLIS, AFIS, as he examines all the changes to the NFIP and its new Risk Rating 2.0. The class will be held Friday, Oct. 21, 2022, from 9 a.m.-noon. This webinar has been approved for continuing-education credits—for more information, access your applicable state: Connecticut, New Hampshire, New Jersey, New York or Vermont. For agents in New York state, this course is intended to satisfy the New York State Department of Financial Services’ “enhanced flood” requirement. PIACT’s and PIA National’s past President Tim Russell, CPCU, is the chairman of the Flood Insurance Producers National Committee. He was involved in developing the NFIP’s RR 2.0. See an interview with him regarding the new program.


N.J.: Hone your golf and networking skills

Join the PIANJ Women’s Leadership Alliance to hone your golf skills with other leaders in the industry. The WLA will meet for a one-hour, women-focused golf clinic on Wednesday, Oct. 19, 2022, at Galloping Hill Golf Course, Kenilworth, N.J., followed by a late luncheon/networking session. Come work on your A-game to grow your abilities—not just on the course, but with fellow insurance colleagues. Tickets include: one-hour golf clinic; a golfer glove; the buffet luncheon; and an open bar following the clinic. Register today.

N.Y.: Get the discount to the PIWA Fall Reception

Live and in-person! Don’t miss the opportunity to learn about your industry and network with peers and company representatives at the Professional Insurance Wholesalers Association of New York State Inc.’s Fall Reception. Additionally, you will have the chance to spend the evening with representatives from your New York wholesalers and hear what they have to say. It’s all happening Thursday, Nov. 3, 2022, at the Hard Rock Hotel NYC, from 5:30-7:30 p.m. Register now to save $25. Prices increase Saturday, Oct. 15, 2022. Gold, silver and bronze sponsorships are available.


Industry’s Week of Giving starts on Saturday

Every PIA member knows community service is a cornerstone of the professional independent agency. However, that is rarely recognized when media or others discuss insurance. Help PIA and the Insurance Industry Charitable Foundation quantify and publicize our industry’s enormous community contribution. This year, the IICF’s annual Week of Giving takes place Oct. 8-15. If you have a team that would like to participate in an IICF project, fill out the IICF team form.

Register now

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

Tuesday, Oct. 25, 2022: Capital RAP

Thursday, Oct. 27, 2022: CTYIP Fall Reception

Thursday, Nov. 3, 2022: PIWA Fall Reception

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