Weekly Dispatch: Aug. 31, 2023

August 31, 2023


The hard market: Use clear communication

Supporting and leading your employees through the hard market is critical for agency leaders. They will follow your example and most team members want to do a great job. They need to understand what that means to your agency. You may say: “My team members know what they need to do.” However, when asked, many team members are doing things in different ways because they don’t have the clarity they need from their leadership. Create clear communication channels and provide a consistent feedback loop to solve challenges as they arise. For some tips that will help you support your team during this hard-market cycle, read the related article on PIA Northeast News & Media. Also—as the market has hardened—have your insurance carriers been attempting to reduce their expenses and exposures? PIA Northeast has resources that can help its members cope with the changes.

Adjust your value proposition to fit new risks

New risks are emerging that are affecting insurance agencies. According to a McKinsey & Co. report, “… while insurance as an industry may be slow to change, its risk environment is not.” Amid the developing risks in the digital realm, the physical environment and the mid-pandemic world, your agency is figuring out how to adapt its value proposition to meet customers’ needs. When re-evaluating your agency’s offerings, consider these areas.

Triple-I: Private flood insurers seize opportunities to grow

As the federally backed National Flood Insurance Program faces obstacles in the rollout of its new rating program that is generating premium increases for many of its policyholders, the private flood insurance market has benefited by significantly growing its market share across the U.S., according to an issues brief published recently by the Insurance Information Institute. The issues brief, Flood: State of the Risk, indicated that the U.S. flood insurance market had grown 24%—from $3.29 billion in direct premiums written to $4.09 billion between 2016 and 2022—with 77 private companies writing 32.1% of the flood business across the country as of Dec. 31, 2022.

Shark attacks: Your clients might consider an insurance policy

If you are brave enough to have bought a ticket to Jason Statham’s latest action thriller, Meg 2: The Trench, then you might be familiar with what it would be like to take on a band of oversized, murderous sharks and other sea creatures in the pursuit of ocean research. While hopefully you and your clients haven’t encountered a 50-ton, prehistoric shark—like that in Meg 2—while wading in the shallows of the Atlantic Ocean on a recent family vacation, it may be possible to meet some of its smaller, more modern relatives as the summer wraps up. Are your clients asking for advice on how insurance may protect them in the event of a shark attack? Consider sharing this article with them.

Gov. Murphy joins ‘Community’ to text with New Jerseyans

Recently, Gov. Phil Murphy launched a new platform—CommunityTM—to provide the people of New Jersey with first-hand updates on the most pressing issues of the day. Community is an SMS marketing platform that connects businesses, brands, public figures, and more to their audiences at scale through a unique 10-digit phone number.

Vermont announces expanded vehicle incentive programs for residents impacted by flooding

Gov. Phil Scott and the Vermont Agency of Transportation announced changes to statewide vehicle incentive programs for residents whose personal vehicles have been damaged by flooding to provide increased financial support to households affected by this summer’s flood events and to expedite the transition to plug-in electric vehicles. Keep up with the latest updates on the recent floods. PIA Northeast members can access PIA’s Flood Insurance Tool Kit.


What N.J.’s new credit card surcharge law means for agencies

Gov. Murphy signed legislation into law that affects how businesses—including insurance agencies—handle credit card transaction surcharges. The new law, which goes into effect immediately, prohibits a business (referred to as “sellers” in the law) from charging customers a surcharge for credit card transactions that exceed the actual cost to the business to process the credit card payment. For example, an agency that is charged 1.5% surcharge by a credit card company, can only charge 1.5% to its clients. For more information, including a Q&A on how this law affects your agency, read the related article on PIA Northeast News & Media.


PIA urges NFIP extension in letter to congressional leaders

Earlier this week, PIA sent a letter to congressional leaders to ask them to reauthorize the National Flood Insurance Program beyond its current Sept. 30, 2023, expiration date and for as long a period as possible. PIA supports a long-term reauthorization of the program with needed reforms, like investments in agent training, updated mapping, and a means-tested affordability program. However, Congress needs time to deliberate the many proposals that have been under consideration thus far this year. Let your congressional leaders know you support a long-term extension of the NFIP, take action today.


The insurance exposures of home sharing

Home-sharing network companies (e.g., Airbnb and HomeAway) take the traditional bed-and-breakfast concept to a next level of opportunity for the more casual host. Accommodations can range from the host offering a bed to a guest for the night to renting the entire house for a week. Nevertheless, the exposures are like B&B operations. To help you educate your clients about the insurance exposures they should consider before they decide to rent out their homes, PIA Northeast offers its members access to its Sharing-Economy Tool Kit, which is a one-stop shop for everything related to the sharing economy. The PIA QuickSource library also has several resources, including: Home sharing means risk sharing; and ISO reacts to home sharing and drones.

N.H.: 12th annual rate reduction in WC market for 2024

The New Hampshire Insurance Department approved a rate proposal filed by the National Council on Compensation Insurance that will reduce voluntary loss costs by 14% on average. Loss costs in the voluntary market have decreased in each of the last 12 years, and more than 63% 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 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 are permitted to adjust for their own company expenses.

NHID accredited by NAIC committee

The NHID announces its accreditation by the National Association of Insurance Commissioners’ Financial Regulation Standards and Accreditation (F) Committee. The NAIC voted to accredit the states of Missouri, New Hampshire, South Dakota and Texas during the NAIC’s 2023 Summer National Meeting. The NAIC Accreditation Program is a hallmark of excellence in the insurance industry, signifying that state insurance departments meet rigorous standards of solvency regulation and provide effective oversight of multistate insurers. Accreditation empowers nondomestic states to place trust in accredited domestic regulators, ensuring a baseline level of proficient financial regulatory oversight.

Educating insurance agents

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

Conn./N.J./N.Y.: Selling flood insurance through the NFIP

Join Mishell K. Magnusson, CIC, CISR, CPIA, AAI, FIPC, for Flood Insurance Licensing and Sale through NFIP, Tuesday, Sept. 12, 2023, staring at 10 a.m. This training course meets the Federal Emergency Management Agency’s minimum training and education requirements as required by Section 207 of the Flood Insurance Reform Act, for all insurance agents and brokers who sell Standard Flood Insurance Policies issued through the NFIP. This webinar will enable agents to gain a basic understanding of the NFIP, so they can share this information with their customers. This class has been approved for continuing-education credits in Connecticut (1 PC), New Jersey (1 GEN), and New York (1 BR, C3, PA, PC, approved for the New York state regulation for flood insurance).


PIANH Symposium & Wine Tasting: Knowledge, networking

The PIANH Symposium & Wine Tasting—which will be held Thursday, Sept. 28, 2023, at The One Hundred Club–Portsmouth, from 2-7 p.m.—will be designed for insurance professionals who crave insights, connections, and a touch of libations. During the event, participants can join an engaging panel discussion Dive into the Lifecycle of an E&O Claim, which will explore the nuances of claims, provide invaluable insights, and offer insurance professionals the chance to earn 3 Producer PROD CEUs, and E&O loss prevention credit from Utica National and Fireman’s Fund. Afterward, attendees will be able to unwind with a wine tasting while they savor a curated wine-tasting experience with special guest NHID Commissioner Chris Nicolopoulos, who is scheduled to attend. Register today.

N.Y.: Were you there? Cocktails & Connections

Cocktails & Connections: Summer Edition, held Aug. 9, at Turning Stone Resort Casino, brought together insurance professionals for an evening of networking and fun, courtesy of PIA and Utica National. During the event, industry leaders gathered after day one of PIA’s CIC Ruble Seminar, unwinding and connecting over drinks and engaging conversations. Check out highlights from the event in the online photo album.

Register now

Monday, Sept. 11, 2023: NY-YIP Albany Happy Hour

Thursday, Sept. 28, 2023: 2023 PIANH Symposium

Monday, Oct. 2, 2023: PIANJ Golf Classic–40th Anniversary

Monday, Oct. 2, 2023: PIANJ WLA, TPC Jasna Polana Neo-Classical Villa Tour

Thursday, Oct. 12, 2023: CTYIP Awards Gala—Register before Friday, Sept 1, 2023, and save

Save the date

Thursday, Sept. 28, 2023: NY-YIP Midtown Soirée

Wednesday, Nov. 1, 2023: NY-YIP Capital RAP Welcome Reception

Thursday, Nov. 2, 2023: Capital RAP—Interested in sponsoring, exhibiting or advertising?

Tuesday, Nov. 28, 2023: NJYIP Holiday Reception

Wednesday, May 8, 2024: NJYIP Golf Open

Share This