News
Historic rainfall emphasizes importance of flood insurance
This summer has brought plenty of catastrophic flooding to the states in PIA Northeast’s footprint. Though the season may be over, the threat of flooding hasn’t gone away. Wet winters and spring showers have the potential to bring enough rain to trigger catastrophic floods. Make sure to speak with clients about the importance of flood insurance; even an inch of floodwater can cause serious damages. Make sure your clients are prepared: Have you explained to your clients that flooding isn’t covered by a standard homeowners insurance policy? For PIA Northeast members who are looking for help on how to answer their clients’ questions about flood insurance, they can access the PIA Flood Insurance Tool Kit.
Fitch Ratings: Global reinsurance sector outlook ‘neutral’
Fitch Ratings has revised its global reinsurance sector outlook to “neutral” from “improving” as the pricing cycle has most likely passed its peak, the agency stated in a new report. Nevertheless, profitability should remain very strong by historical standards in 2025. Capital buffers and reserve adequacy have strengthened, helped by record profits in 2023 and the first half of 2024, and reinsurers are well positioned for a decline in prices even as claims costs continue to rise, and catastrophe losses become more significant due to climate change.
Lloyd’s: Hard market ‘supercycle’ likely prolonged
According to a recent report by Lloyd’s of London, the insurance market achieved a first-half profit of £4.9 billion ($6.4 billion) with a combined ratio of 83.7. This has prompted questions about if the hard market cycle is ending. However, in a media briefing Lloyd’s CEO John Neal said he believes that they have seen “no evidence of significant change in the marketplace either from the insurance or the reinsurance community.” Lloyds’s CFO Burkhard Keese noted that the overall rating environment is “adequate,” but classes of businesses in the U.S., such as general liability and political violence and terrorism, carries challenges for underwriters.
Moody’s: Possible seasonal forecast miss?
The National Oceanic and Atmospheric Administration predicted that the 2024 hurricane season, which runs from June 1 to Nov. 30, was likely to be “above-normal.” However, Moody’s Chief Research Officer Robert Muir-Wood has noticed that the reporting for potential sites of tropical storm development indicated that they weren’t as active as they were projected to be, among other environmental trends. During hurricane season, PIA Northeast members have access to PIA’s Hurricane Info Central, which has resources to help your clients and your agency during the hurricane season. If you would like to send customized materials to your clients, email PIA’s Design & Print.
Swiss Re: Social inflation outpaces economic inflation
The Swiss Re Institute, in a report titled “Social inflation: litigation costs drive claims inflation,” found that social inflation in the U.S. rose by 5.4% annually between 2017-22, while economic inflation was 3.7%. Social inflation is defined by Swiss Re as the increased severity of insurance claims beyond that which can be explained by economic drivers. The institute expects the social inflation to continue in the U.S. and remain mostly a U.S. phenomenon.
N.Y.: Insurers accused of neglecting Child Victims Act claims
New York lawmakers are calling for the Department of Financial Services to investigate allegations that insurers are neglecting claims tied to the Child Victims Acts. Assemblymember Linda B. Rosenthal, D-67, and Sen. Brad Hoylman-Sigal, D-47, have formally requested that the DFS address concerns that survivors of child sexual abuse are being denied compensation by insurance companies.
Vt.: Audit finds failure to reduce risks from natural disasters
In reporting from AP News, Vermont was audited and it was found that the state failed to complete many of its goals in its five-year hazard mitigation plan. These plans are developed by Vermont Emergency Management every five years to reduce natural disaster risks; the audit revealed only a third of the 96 actions proposes in the 2018 had been only completed last year. In response to the audit, the state noted that the plans are aspirational; it also noted that they were disrupted by the COVID-19 pandemic and high staff-turnover rates.
Advocacy
NAIC requests long-term NFIP reauthorization
The National Association of Insurance Commissioners sent a letter to congressional leaders earlier this month to advocate for long-term reauthorization of the National Flood Insurance Program, which will help policyholders prepare for flood disasters. The current NFIP legislation, a temporary extension, is set to expire on Sept. 30, 2024. According to the letter, continuing temporary NFIP extensions hinders consumers’ ability to plan ahead—particularly since most flood insurance policies do not take effect for 30 days.
N.Y.: The windstorm definition campaign and your clients
PIANY has made major strides with its efforts to advocate for a standardized windstorm trigger definition this legislative session. Thanks to the tireless advocacy efforts of the association and its members, S.4199—a bill that would standardize the definition of a windstorm trigger—passed both houses of the state Legislature and now waits to be sent to Gov. Kathy Hochul’s desk. However, this isn’t where the efforts end: The bill still needs to be signed into law. When you speak with your clients about their homeowners insurance policies, mention the windstorm definition bill, and how it can positively impact them. Then, encourage them to call the governor so the bill can get the final push it needs. To learn more about what needs to be done next, and how you can help, visit PIA Northeast News & Media.
Technical
Proofing your agency from E&O claims
An errors-and-omissions claim is one of the last things an insurance agent wants to face. That’s why it is important to proof your agency from potential E&O claims as best as you can. A good starting place is to gauge the level of E&O risk you currently have and respond from there; this can range from acquiring more E&O coverage to reinforcing the education of your fellow insurance agents. For more information, PIA Northeast members can access Is your agency as ‘E&O-proof’ as you think? in the PIA QuickSource library.
Conn.: WC disability benefit adjusted Oct. 1
The state Workers’ Compensation Commission has determined that the estimated average weekly earnings of all employees in Connecticut have increased from $1,575 to $1,653.22, effective Tuesday, Oct. 1, 2024. Therefore, the maximum compensation rate for total disability and decedents’ dependents is now $1,654 for injuries occurring on or after Oct. 1, 2024. The maximum compensation rate for partial disability is equivalent to the average weekly earnings of production and related workers in manufacturing in Connecticut, which will increase from $1,154 to $1,191, effective Oct. 1, 2024. For more information, visit the State of Connecticut’s Worker’s Compensation Commission news page.
NYCIRB releases research materials
The New York Compensation Insurance Rating Board’s has released its: 2024 Annual Letter, 2024 State of the System Report and 2024 Research Brief: Claim Frequency and the New York State Economy: An In-Depth Examination.
Educating insurance agents
Conn./N.J./N.Y.: Classes meet N.Y.’s regulatory requirements
If you are an independent agent who writes business in New York state, you can take two continuing-education classes—which comply with the state’s regulatory requirements—in one day. These webinars, NY CE Insurance Law—Addressing 3 Topics in One Session and NFIP—What is a Flood? will be led by Mishell K. Magnusson, CIC, CISR, CPIA, AAI, FIPC. Both classes will be held on Tuesday, Oct. 1, 2024; the former from 9 a.m.-12 p.m., and the latter from 1-2 p.m. NY CE Insurance Law—Addressing 3 Topics in One Session has been approved for CE credits in New York (3 BR, C1, C3, LA, LB, LSB, PA, PC). NFIP—What is a Flood? has been approved for CE credits in Connecticut (1 PC), New Jersey (1 NFIP Flood) and New York (1 BR, C3, PA, PC). The first class is approved for the NYS regulations for 1. insurance law; 2. ethics & professionalism; 3. diversity, inclusion & the elimination of bias; the second class is approved for the NYS regulation for flood insurance.
Events
The CTYIP Awards Gala is back
Join CTYIP for its Annual CTYIP Gala, on Thursday, Oct. 3, 2024, at Anthony’s Ocean View, New Haven, Conn., starting at 5 p.m. During the event, the association will recognize top industry professionals. This year’s honorees include: CTYIP Lifetime Achievement—Tim Russell | The Russell Agency; CTYIP of the Year—Matt Higgins | HAI Group; CTYIP Director of the Year—Kieran Buttrick | Hagerty; CTYIP Supporter of the Year—Atlantic Casualty; and CTYIP Industry Advocate of the Year—Crystal Restoration Services of CT. CTYIP will roll out the red carpet and bring the paparazzi for a fun-filled evening of networking, dinner, raffles and awards. Register today. Sponsorships still are available.
NY-YIP Fall Soiree: Were you there?
Last week, the NY-YIP hosted its annual Albany Fall Soiree. This soiree was held in downtown Albany, N.Y., at the City Beer Hall. At the event, insurance professionals—including NY-YIP Annual Sponsors Mike Skeele from Skeele Agency and Jamie Ferris from PW Wood and Son—had the opportunity to network and enjoy the beer garden’s atmosphere. Thank you to all attendees for making this event possible. We hope to see you again next year. See photos from the event here.
Register now
Monday, Sept. 23, 2024: PIANJ Golf Classic
Thursday, Oct. 3, 2024: CTYIP Golden Gala Awards
Thursday, Oct. 17, 2024: PIANJ Women’s Leadership Alliance Presents: An Afternoon with Meg McKeen
Monday, Oct. 21, 2024: Disaster at your Doorstep: Disaster Planning and Continuity Strategies for the Personal and Commercial Lines Client—Free webinar to YIP members in Connecticut, New Jersey and New York; $25 PIA Northeast members; $50 nonmembers
Wednesday, Nov. 6, 2024: Hudson Valley RAP—Sponsor, exhibit or advertise
Tuesday, Dec. 3, 2024: NJYIP Holiday Social
Save the date
Tuesday, Oct. 29, 2024: New Jersey Deep Dive: The Perfect E&O Storm
Wednesday, Jan. 29, 2025: MetroRAP
