Weekly Dispatch: Nov. 3, 2022

November 3, 2022


Insuring Hogwarts: A guide for Muggle schools

A recurring theme throughout the seven Harry Potter books and eight movies is that Hogwarts, the school for young wizards in the United Kingdom, is a very dangerous place. From the straightforward dangers that come with potions and Quidditch to the more frightening risks of Dementors, the entire Triwizard Tournament, and the ongoing threat of He-Who-Must-Not-Be-Named—Hogwarts poses a surprisingly high level of danger for 11- to 18-year-old students. Even student punishments have an element of danger, including a trip to the Forbidden Forest to investigate the crime of killing unicorns. So, how would you insure a school with such a range of risks? While the likelihood of actual Dementors trying to take a student’s soul should not be high on the list of risks facing American students, many similar dangers do create risks and potential exposures for school districts across the country.

Research outlines impact of inflation on auto insurance

The American Property Casualty Insurance Association’s latest paper, “The New Normal? Auto Insurers Continue to Struggle with Inflation,” explores how auto insurance claims inflation continues to outpace the underlying consumer price index at a faster rate than increases in premiums. APCIA’s research shows the impact inflation is having on loss ratios, which climbed to its second highest level in more than 20 years, reaching 78.4% for the second quarter of 2022. Insurance claim costs have continued to rise faster than the underlying consumer price index. To address these trends, and minimize their risk, drivers should avoid risky behaviors that may result in a loss.

Power of the youth: How to get them interested in a career in the insurance industry

These days, most industries struggle to recruit and retain the next generation of employees. How do we get them interested in the insurance industry? How do we make the industry more attractive to the youth? By avoiding generalizations. There’s a perception of the younger generation in the workforce that characterizes them as entitled, self-centered, lacking work ethic, and expecting success overnight. These perceptions are not completely accurate descriptions—they are generalizations. There are career-minded, hard-working individuals who are looking for a long-term, fulfilling career. Looking for resources to help you recruit the next generation of insurance professionals? PIA offers members many resources to help them recruit and hire the best individuals for their agencies. These resources include: Agency Staffing Assistance Program and Agency Journey Mapping. For more information, PIA members can access numerous resources on this topic by logging onto the PIA website and searching through the PIA QuickSource library.

Study: Consumers taking action to protect from cyberattacks

For the first time, the Chubb annual study on cyberrisk finds more people are taking steps to protect their personal information and data from cyberattacks. The Chubb Fifth Annual Study on Personal Cyber Risk, which is based on a public opinion poll of 1,605 adults in the U.S. and Canada, was conducted by Dynata. The data concludes that people are getting better about protecting themselves from cyberrisks, but they also are having trouble keeping track of their passwords.

CID restructures actuarial division to regulate technology

The Connecticut Insurance Department has consolidated all actuarial and data science functions to improve regulatory oversight and protect consumers. The data scientists within the Actuarial Division will assist the CID divisions to help modernize insurance regulation while also collaborating with the National Association of Insurance Commissioners and other state insurance departments to develop modeling capabilities and provide needed studies of artificial intelligence and machine learning models. The Insurance Actuaries of the Actuarial division provide financial and analytical services with a mandate of solvency regulation and market regulation in support of the commissioner.

Conn.: Grant would increase employment opportunities for individuals with disabilities

Gov. Ned Lamont announced that the Bureau of Rehabilitation Services has been awarded a $13.9 million grant from the U.S. Department of Education’s Rehabilitation Services Administration through its Subminimum Wage to Competitive Integrated Employment project. This project is designed to decrease the use of subminimum wages and increase access to integrated employment for individuals with disabilities. The grant runs through Sept. 30, 2027, and will begin with a year of planning by the state agency and its partners to gather stakeholder input and build a model of supported and accessible pathways for individuals with disabilities.

N.J.: Flood rule would protect communities from weather

Gov. Phil Murphy and Commissioner of Environmental Protection Shawn M. LaTourette announced the administration’s intent to propose an Inland Flood Protection Rule to better protect New Jersey’s communities from worsening flooding and stormwater runoff. This proposal would update New Jersey’s existing flood hazard and stormwater regulations by replacing outdated precipitation estimates with modern data that accounts for observed and projected increases in rainfall. These changes would help to reduce flooding from stormwater runoff and increase the elevation of habitable first floors by two feet in certain new developments located in flood-prone inland areas.

New office would protect New Yorkers from climate change

Gov. Kathy Hochul announced the creation of the Office of Resilient Homes and Communities, which will lead New York’s housing recovery and community resiliency efforts. As a permanent office within Homes and Community Renewal, it will assume the governor’s Office of Storm Recovery’s portfolio and partner with the state’s disaster-response agencies to lead the long-term recovery for homes and communities and develop a pipeline of resiliency initiatives and strategies across the state.


N.J.: Cannabis safe harbor bill introduced in state Senate

PIANJ-supported legislation, S-3239, that would create a safe harbor for insurance producers and carriers who do business with cannabis-related business was introduced in the state Senate. This legislation, sponsored by Sen. Joseph Vitale, D-19, would protect insurance producers and carriers who do business with legal cannabis businesses from adverse actions by state or local governments. The bill is identical to A-389, which was referred to the Assembly Oversight, Reform and Federal Relations Committee in September.


PIA updates additional insureds, certificates resources

Have you ever examined the Waiver of Transfer of Rights Against Others to Us (CG 24 04) endorsement? Some practitioners contend that this endorsement will waive the subcontractor insurer’s right of contribution. It states, “We waive any right of recovery we may have against the person or organization shown in the Schedule … .” And it also states, “This waiver applies only to the person or organization shown in the Schedule above.” Recovery is based upon the insured’s rights assumed by the insurer, not the insurer’s legal right of contribution. Supported by the Other Insurance provision in the policy, the insurer may seek contribution from other insurers covering the same loss on a primary basis according to their equal share, or their share by limits. Contribution is independent from the waiver of the insured’s rights of recovery against a named party. To help you educate your clients about how this endorsement may affect them as additional insureds or with their certificates of insurance, access the related resources in the PIA QuickSource library.

N.Y.: WCB announces 2023 assessment rate

The chair of the New York State Workers’ Compensation Board annually establishes an assessment rate for all employers by Nov. 1 of each year, to be effective Jan. 1 of the subsequent calendar year (see WCL Section 151). For calendar year 2023, the rate shall be 9.8% of the standard premium or premium equivalent, down from 10.2% in 2022.

NYCIRB changes plan with respect to COVID-19

The New York State Department of Financial Services approved amendments to the New York Compensation Insurance Rating Board’s New York Experience Rating Plan effective on Nov. 1, 2022. Specifically, revisions sunset the COVID-19 claim exclusion from the rating board’s experience rating program. Pursuant to the approved amendments to the Experience Rating Plan, COIVD-19 claim losses reported with Catastrophe Number 12, and a date of accident on or after Nov. 1, 2022, will be included in experience rating calculations.

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.

Conn./N.J./N.Y.: Combatting implicit and explicit bias

Favorite PIA Instructor Mishell K. Magnusson, CIC, CISR, CPIA, AAI, FIPC, will lead a webinar Implicit and Explicit Bias; Equal Access to Justice on Thursday, Nov. 10, 2022. This program will focus on equal access to justice including serving a diverse population—it is designed to meet New York state’s new CE requirements. It will cover diversity and inclusion initiatives in the insurance industry, with a sensitivity to cultural and other differences when interacting with clients, potential clients, or other members of the public. This course has been approved for continuing-education credits in New Jersey (1 GEN) and New York (1 BR, C1, C3, LA, LB, LSB, PA, PC, TIA); and has been submitted for CE credit in Connecticut.


Were you at the PIANJ’s WLA Golf Clinic?

More than 40 insurance women gathered at the Galloping Hill Golf Course’s Learning Center last month, where they had to chance to learn basic golf techniques and hone their skills. Followed by a networking lunch on-site, this was a great experience for women to get together and work on their capabilities, both on the course and professionally. We look forward to seeing you at the next WLA event—more details for next year coming soon. See photos from the event here.


CID approves reduction in WC loss costs

The National Council on Compensation Insurance Inc. filed a workers’ compensation insurance application with the CID for a -3% change in Voluntary Loss Costs and a 0% change in Assigned Risk Rates. The filing was approved as filed on Sept. 13, 2022, and it is effective Jan. 1, 2023. For a detailed look at the key components, see the related article on PIA Northeast News & Media.

Insurance professionals value the ever-changing industry at PIANY’s first-ever Capital RAP

PIANY’s first-ever Capital RAP was held at the end of October, at the Capital Center, Albany. Attendees learned from insurance industry leaders on how to navigate an ever-changing insurance landscape. Newly elected PIANY President David L. Sidle, CIC, CPIA, discussed the importance of building relationships, and retired Navy SEAL Darren McBurnett highlighted the untapped potential and never-quit drive that is the cornerstone of Navy SEAL success. PIANY also presented Edward Gentile III, CPRM, AINS, of Emery & Webb Inc., with its Distinguished Insurance Service award for his history of service to the American independent agency system and to PIANY. Additionally, PIA favorite instructor John Fear, CISR, CPIA, lead two education classes Applying Ethics & Diversity to Risk Assessment and E&O: Recommending At Least Full Coverage. For a detailed account of the event, including photos, see the related article on PIA Northeast News & Media.

Register now

TONIGHT: Thursday, Nov. 3, 2022: PIWA Fall Reception

Wednesday, Nov. 16, 2022: PIANJ Deep Dive on the Lifecycle of a Cyber Risk

Thursday, Nov. 29, 2022: NJYIP Holiday Social

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