Weekly Dispatch: Oct. 26, 2023

October 26, 2023


Lloyd’s report: systemic risk scenario reveals global economy exposed to $3.5 trillion from major cyberattack

On Oct. 18, Lloyd’s published a systemic risk scenario that demonstrated that a hypothetical cyberattack on a major financial services payments system, resulted in widespread disruption to global business and potential global economic losses of $3.5 trillion. The three most impacted countries include the United States, China and Japan. Protect your agency from cyberthreats. PIA members and every one of their small-business clients must understand and then tackle their cybersecurity weaknesses before they are crippled by them. To protect their sensitive data—and their insureds’ sensitive data—insurance agents should have cyber liability coverage. To determine their unique cyber risks, PIA-member agents can use PIA’s Cyber Risk Assessment. PIA members also can access Ransomware is a real menace in the PIA QuickSource library.

Traffic fatalities in young drivers on the decline

Young drivers are nearly four times more likely to be involved in a fatal traffic crash than their older counterparts, but a Governors Highway Safety Association report confirms that crash and fatality rates for drivers under 21 have improved drastically over the past two decades—more so than for other drivers. The report includes an analysis of Fatality Analysis Reporting System data for 2002-21, identifies the policies and programs responsible for the gains in teen driver safety, and makes recommendations for building upon that success. See a related article on trends in pedestrian and driver safety on PIA Northeast News & Media.

Veterinary medicine trends affect pet’s care

The COVID-19 pandemic left a major mark on the American workforce that can be seen in every industry, and that includes the veterinary industry. With an influx of new pet owners and veterinarians leaving during the pandemic due to health risks and “irate customers,” pet owners are left scrambling trying to find care for their animals. Are your clients asking you questions about the value of pet insurance? You can share with them Veterinary medicine trends affect pet’s care, which can be found on PIA Northeast News & Media.

Connecticut crime statistics for 2022 show overall reduction

The Connecticut Department of Emergency Services and Public Protection’s Crime Analysis Unit has released its crime statistics report for 2022. The annual report compiles data on crimes reported to law enforcement agencies in the state during each calendar year. Between 2021 and 2022, there has been a 4% reduction in overall crime; 13% reduction in violent crime; and 3% reduction in property crimes, among other reductions.

N.J.: New laws for small businesses and economic opportunity

Acting Gov. Tahesha Way signed two bills into law on Oct. 16, to promote small businesses and economic opportunity in New Jersey. The first bill (A-3424/S-1447) requires the New Jersey Department of the Treasury, in partnership with the New Jersey Business Action Center, to host an “Annual Business Matchmaking Event” to connect small businesses with local, state and federal government agencies and contractors. The second bill (A-4751/S-3400) requires the BAC to establish a mentorship program to match business entities with experience in particular areas with new or less experienced businesses seeking to learn from a mentor. Together, the new laws advance the mission and success of the BAC, with a crucial focus on the growth of minority-, women- and veteran-owned businesses.

New Jersey, South Korea agree to driver’s license reciprocity

Last week, New Jersey and the Republic of Korea announced the signing of a Memorandum of Understanding between the New Jersey Motor Vehicle Commission and the National Police Agency of the Republic of Korea concerning the reciprocal issuance of driver’s licenses. This agreement simplifies the process for citizens of New Jersey and South Korea to obtain and use driver’s licenses in each other’s jurisdiction.


PIACT asked CID about the recent changes to the state’s surplus-lines laws

Earlier this month, the Connecticut Insurance Department issued Bulletin SL-5 to advise surplus-lines brokers of the immediate implementation of the current surplus-lines law. The law requires surplus-lines brokers to keep and make available to the commissioner, upon request, all documentation concerning their diligent effort to obtain from authorized insurers the coverage required by their insureds. In a recent issue of The Break, PIACT Director of Government & Industry Affairs Bradford J. Lachut, Esq., examines the corresponding guidance your association received from the CID about this law. For more information, PIA Northeast members can access Connecticut surplus-lines bill takes effect in the PIA QuickSource library.

Vt.: All nonprofits must carry unemployment insurance

Last week, the Vermont Department of Labor announced new rules for nonprofits, requiring all of them—regardless of size—to carry unemployment insurance. Previously, organizations with fewer than four employees were exempt from needing to provide unemployment insurance coverage for their employees. Act 76 was signed into law on June 20, 2023, and it becomes effective July 1, 2024.


Learning about the changing world of auto insurance

The world of auto insurance is ever changing, thanks to technological advancements in the insurance and automotive industry. Telematics and usage-based insurance products have facilitated data collection for insurers, while the advent of vehicle-sharing programs, autonomous vehicles and driving assistance programs has altered the behavior of drivers. Commercial and personal vehicle usage has been blurred, computers now help vehicles brake and correct steering automatically, and they even let some cars drive themselves. However, this creates risk and uncertainty. PIA Northeast members have access to Not your father’s auto risks, a document outlining these challenges and how the industry is adapting. Members also have access to a sample customer letter about offering coverage to clients who may use their car for ride-hailing services.

N.Y.: NYCIRB releases WC Forum video presentations

As the New York Compensation Insurance Rating Board announced in R.C. 2588, video recordings of the 2023 Workers’ Compensation Forum presentations—along with the associated reports and studies—are available on the rating board’s website. These videos include: a message from the chair of the board of governors; opening remarks; a keynote address from John Finston, executive deputy superintendent for insurance, New York State Department of Financial Services; the 2023 State of the System presentation; an update on the New York state economy from Amar Mann, chief regional economist, United States Bureau of Labor Statistics; and the 2023 medical payments presentation.


PIA’s director of research honored by ACORD

PIA Northeast Director of Research Dan Corbin, CPCU, CIC, LUTC, received the Community Leadership Award from ACORD—for the second consecutive year. This award was presented to Corbin for his leadership in Standards development, advocacy, and/or implementation. He was recognized for how he has helped to guide the insurance industry to share insurance data. Congratulations Dan!

PIA Magazine recognized for excellence

Your PIA Management Services has received its second consecutive MarCom Gold Award for excellence for its flagship member publication, PIA Magazine. The award is in the “print media/association/magazine” category. This year, your association submitted the May 2023 issue of the magazine, which focused on excess-and-surplus lines, and featured an article written by Lloyd’s of London, Americas. PIA Magazine has won this award numerous times over the last decade. Enjoy the PIA Magazine archive on PIA Northeast News & Media. The MarCom Gold Award is presented to entries judged to exceed the high standards of the industry.

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.H./N.Y.: Ethics and their application in the industry

Join Jerry Kennedy, CIC, for the Ethics You Can Use webinar on Monday, Oct. 30, 2023. This webinar will examine the ethical considerations for insurance professionals with a review of state and federal laws that influence ethical and legal conduct. Participants then will be able to apply those laws and ethical systems to real-life scenarios faced by insurance professionals. This class has been approved for credits in Connecticut (3 LRE), New Hampshire (3 Ethics PROD) and New York (3 BR, C1, C3, LA, LB, LSB, PA, PC).


Did you miss PIANJ’s Deep Dive on cyber security coverages?

PIANJ’s fall Deep Dive program, which was held last week, focused on the rapid changes in cyber security coverages—specifically what independent agents need to know when offering cyber insurance policies to their clients, and what to expect if one of their customers has a cyberbreach. This program was monitored by PIANJ Business Issues/Communications Committee Chair Christopher J. Powell, of Hardenberg Insurance Group, with cyber claim expert Sean Hoar, of Constangy, Brooks, Smith & Prophete LLP; and PIANJ past President Keith Savino, CIC, CPIA, of Broadfield Group, who brought the agent’s prospective. Did you miss the event? Don’t worry, you can access a copy of the program here.

PIANJ Golf Classic and PIANJ Women’s Leadership Alliance raises $93,000 for SONJ

More than 120 insurance professionals hit the links for PIANJ’s 40th Annual Golf Classic on Oct. 2, at TPC Jasna Polana, in Princeton, N.J. The PIANJ Golf Classic—in partnership with the PIANJ Women’s Leadership Alliance—was proud to present Special Olympics New Jersey with a donation check of over $93,000, which will support thousands of Special Olympic athletes in New Jersey. To date, the PIANJ Golf Classic, in conjunction with the NJYIP Fun Run, has raised more than $5 million for SONJ.

Register now

Oct. 26-27, 2023: PIANY Regional Advisory Council meetings–various locations

Tuesday, Nov. 28, 2023: NJYIP Holiday Reception

Save the date

Tuesday, Dec. 5, 2023: YIP Winter Webinar: Reinsurance

Thursday, Feb. 1, 2024: PIANY MetroRAP

March 27-28, 2024: Connecticut Convention

Wednesday, May 8, 2024: NJYIP Golf Open

June 2-4, 2024: PIA New Jersey | PIA New York Annual ConferenceTuesday, June 4, 2024: NJYIP Fun Run to benefit Special Olympics New Jersey

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