News
Federal rule to increase nationwide flood resilience finalized
The Department of Homeland Security’s Federal Emergency Management Agency published a Final Rule to implement the Federal Flood Risk Management Standard on July 10, 2024. The standard is a flexible framework to increase resilience against flooding and help protect communities. In recent years, communities have seen repeated flooding that threatens both lives and property. Previous approaches, based on historical data, have become outdated. By using the best available science, FFRMS strengthens FEMA’s standards to incorporate both current and future flood risk, making taxpayer-funded projects far more resilient to flooding, protecting federal investments and reducing the risk of damage and loss from floods. Additionally, FEMA will pay for the applicable federal cost share to implement the FFRMS, which is often 75% or more.
Report: 2023-24 costliest back-to-back period for insurers
A new Gallagher Re report found that for the first half of 2024, global natural catastrophes resulted in well-above-average losses for the insurance industry. According to the report, which was released July 17, 2024, the bulk of the $61 billion in global insured losses resulted from U.S. severe convective storm activity, which accounted for $37 billion of the entire first half total. In the last 18 months alone (FY 2023 and first half 2024), U.S. severe convective storms loss costs have topped $100 billion for the insurance industry. This loss already puts 2023-24 as the costliest back-to-back period for U.S. insurers for the peril on record.
What to look for when hiring a roofer
The next time you speak to your clients about their roofing project, you should make sure they do their due diligence if they choose to hire a roofer. The roof is one of the most important parts of a home. It provides essential protection against the elements and contributes to its structural integrity. When it’s time to repair or replace a roof, hiring the right roofer is crucial to ensuring quality work and peace of mind. This comprehensive guide can help your clients make the best choice for their needs.
Embrace sustainable technology and automation
As “green” technology and automation become more widely available for the average business owner, they have many avenues toward a sustainable future. These advances can be implemented in a variety of ways—ranging from the collection of data for crops, to mass adoption of solar panels. Independent insurance agents should pay close attention to these developments, as climate change damages create massive claims: they can either implement these technologies in their own business or encourage their business-owning clients to adopt them.
N.J.: Proposals issued for storm protection project funding
The disaster resilience group Rebuild By Design, created in the aftermath of Superstorm Sandy, has issued several proposals for the funding of future storm protection projects, according to reporting from the Associated Press. These proposals include: a 2% surcharge on property insurance policies, mandatory fees on the oil and gas industries and holding a public referendum on the matter. In its most recent report, the group found that climate-related disasters are costing New Jersey residents over $7.2 billion over a decade.
New York requests federal declaration for recent storms
On July 20, 2024, Gov. Kathy Hochul announced her request for a federal Emergency Declaration from President Biden to support response and recovery operations in 15 counties following a string of severe weather, which devastated areas throughout upstate New York on July 15 and 16. The counties included in the Governor’s Emergency Declaration request are Chemung, Genesee, Hamilton, Herkimer, Jefferson, Lewis, Madison, Montgomery, Oswego, Oneida, Ontario, Saratoga, Schuyler, Steuben and Warren.
Vermont requests agricultural aid due to July weather
Gov. Phil Scott has requested that the United States Department of Agriculture issue a disaster designation for the Vermont in response to severe July flooding. A Secretarial Disaster Designation would open the availability of financial assistance, including low-interest USDA Farm Service Agency emergency loans for eligible producers in the approved counties. The Vermont Agency of Agriculture, Food and Markets encourages all those who sustained losses to report their damages to their local Farm Services Agency office with USDA.
Compliance
N.J.: DOBI issues bulletin on low-income housing discrimination survey
Recently, the Department of Banking and Insurance released Bulletin No. 24-10, requiring all insurers authorized or admitted to sell property/casualty insurance in New Jersey to participate in a comprehensive survey on low-income housing discrimination. Bulletin No. 24-10 mandates that all insurers authorized or admitted sell p/c insurance in New Jersey participate in a survey. The survey includes questions about carrier underwriting practices—particularly those related properties that are government regulated or receive government funding. Insurers must complete the survey, any supplementary documents and an affirmation form by Thursday, Aug. 22, 2024.
N.Y.: AG warns against price gouging after severe weather
New York Attorney General Letitia James issued an alert warning businesses against price gouging of essential items as severe weather impacts communities throughout New York on July 17, 2024. A state of emergency was declared by the governor for the entire state as multiple tornadoes touched down in parts of Central New York and hundreds of thousands of New Yorkers experienced power outages and disruptions. New York state’s price gouging statute prevents businesses from taking advantage of consumers by selling essential goods or services at an excessively higher price during market disruptions or emergencies. Attorney General James urges New Yorkers who see higher prices on essential goods and services to report the issue to her office.
Advocacy
Connecticut’s 2024 legislative session in retrospect
The 2024 legislative session in Connecticut was a tumultuous one for insurance-related matters. Due to political in-fighting, the Insurance Committee failed to report out any bills. Despite the lack of insurance legislation, PIACT remained actively engaged in advocacy, exemplified by its work on a notable piece of legislation mandating liability insurance for licensed child care providers in the Nutmeg State. Even if the bill wasn’t reported out this session, independent insurance agents can learn more about PIA’s advocacy efforts to mitigate a potentially harmful bill.
N.Y.: Staged construction accidents and their impact
Staged construction accidents have become a growing concern in New York state, significantly affecting the p/c insurance sector. This fraudulent activity undermines the integrity of the construction industry and leads to substantial financial repercussions for insurers and policyholders. Insurance companies face massive financial burdens due to these fraudulent claims. The cost of investigating and settling these claims, along with the legal expenses associated with litigating fraudulent activities, can run into millions of dollars annually. PIANY has a long history of advocating for tort reform to increase consumer protections and minimize the impact of fraudulent insurance schemes, like those occurring at construction sites around the state. To read about PIANY’s advocacy efforts, see the related article on PIA Northeast News & Media.
Technical
Satellite imagery on homeowners policies
In recent years, insurance companies have turned to satellite imagery to evaluate the conditions of properties—particularly roofs—for underwriting purposes. This technological resource allows insurers to assess large numbers of properties from the air quickly and cost-effectively. However, this practice has led to a rise in consumer complaints from homeowners who have faced nonrenewals or midterm cancellations of their insurance policies based on these aerial assessments. Which states have been taking action regarding this use of satellite imagery?
Navigating operational risk in cyberinsurance
In today’s digital age, businesses are reliant on technology to operate efficiently. However, this dependence on digital systems also opens new avenues for risk, particularly in the form of cyberthreats. Look no further than the recent news of a global technology outage that impacted businesses across the world and across industries. The global outage was not caused by cybercriminals, but rather by a routine software update pushed out by the cyber security firm, CrowdStrike: this is where cyberinsurance comes into play. Cyberinsurance helps businesses mitigate the financial impact of cyberincidents, but understanding the operational risks involved is crucial for both insurers and policyholders.
Disentangling liability insurance policies when insureds sue each other
In instances in which one of your insured with a liability insurance policy files a lawsuit against another one of your insureds, your role as an independent insurance agent can be daunting. For instance, if one family member is successful in getting a judgment against another family member, the benefit likely will accrue to both insureds at the expense of the insurer. However, like with most things in insurance, there are exceptions. For more information, PIA Northeast members can access Incestuous suits in the PIA QuickSource library.
Conn.: Limit placed on loss of use in a vehicle rental contract
Connecticut’s Public Act No. 24-21 took effect effective July 1, 2024. Included in this act is a limitation on the amount that may be collected in a vehicle rental contract for its loss of use because of damage to the vehicle. Any amount collected pursuant to the contract shall not exceed an amount equivalent to one day of the daily rental fee stated in the contract for every four hours of labor required to repair such damage, provided such amount does not exceed a reasonable estimate of the actual income lost for the loss of use of such motor vehicle. Keep in mind that the standard ISO personal auto policy will pay only up to $30 per day for loss of use, unless endorsed otherwise.
N.Y.: DFS files to place Columbian Mutual Life Insurance into rehabilitation
On July 10, 2024, the New York State Department of Financial Services superintendent of insurance filed a petition in the New York Supreme Court in Broome County to place the Columbian Mutual Life Insurance Co., into rehabilitation due to the company’s financial condition. Rehabilitation will give the superintendent permission to take control of Columbian Mutual Life Insurance Co., to protect its policyholders and preserve the company’s assets. By taking control of the affairs of the company, it may be possible to rehabilitate the company so it can return to the market as a solvent insurer. The company sent a letter to its policyholders.
N.Y.: Revised WC loss costs take effect Oct. 1, 2024
In May, the New York Compensation Insurance Rating Board submitted an application for an overall loss cost decrease of 9% to the DFS. The DFS approved the application as filed with an effective date of Tuesday, Oct. 1, 2024. Although the average change in classification loss costs is -9%, changes to individual classification loss costs can vary significantly. The NYCIRB has released Bulletin 2608, which contains the new loss costs by classification and a comparison by classification between the new loss costs and the 2022 loss costs. For a summary of the changes written by PIANY, see the related article on PIA Northeast News & Media.
Educating insurance agents
Conn./N.J./N.Y./Vt.: Back-to-back-to-back CE-approved online classes
Ready to take a deep dive into the world of insurance education? On Monday, Aug. 5, 2024, Catherine L. Trischan, CPCU, CIC, CRM, AU, AAI, CRIS, ARM, MLIS, TRIP, will lead three continuing education webinars across four states. The first class, Insureds and Additional Insureds–Who’s Covered Under Commercial Policies? will be held from 8 a.m.-12 p.m. It has been approved for CE credits in Connecticut (4 PC), New Jersey (4 GEN) and New York (4 BR, C3, PA, PC). The second class, Time Management–Helpful Hints for the Insurance Professional, will be held from 1-2 p.m. It has been approved for CE credits in Connecticut (1 PC), New Jersey (1 GEN) and Vermont (1 General). It has been submitted for approval in New York. The final class, E&O Loss Prevention and Ethics–There is a Connection!^FF^UN will be held from 2-5 p.m. It has been approved for CE credits in Connecticut (3 LRE), New Jersey (3 ETH) and Vermont (3 Ethics). It has been submitted for CE approval in New York. ^FF^UN–This course has been approved for E&O loss prevention credit by Fireman’s Fund and Utica National. Call the PIA E&O Department for details.
Events
N.Y.: Hit the green with fellow professionals at the NY-YIP Golf Open
Get your golf clubs ready for the NY-YIP Golf Open! This open will be held Monday, Aug. 5, 2024, at The Mill River Club in Oyster Bay, N.Y. This will be an unforgettable golf experience packed with competition and fun. Participants will engage in a scramble tournament alongside fellow insurance professionals, followed by dinner and dessert. Exciting raffles and contests await, with proceeds benefiting St. Jude Children’s Research Hospital. Register now!
ICYMI
N.Y.: What bills did not pass this legislative session?
The 2023-24 legislative session in New York state saw a flurry of activity, with legislators in both houses passing hundreds of bills. Despite this progress, several bills on PIANY’s radar did not pass the Legislature. Interested in a recap? See the full article on PIA Northeast News & Media, which also includes a video in which PIANY Director of Government & Industry Affairs Brad Lachut, Esq., discusses their significance to the insurance industry. These bills include an excess-line reform bill, a bill to qualify staged insurance accidents as Class E felonies, a bill requiring property owners to complete an anti-arson application to purchase property insurance and a bill amending renters insurance as to not discriminate against dog breeds.
NY-YIP seeks nominations for Professional of the Year
Do you know an active NY-YIP member who demonstrates a commitment to professionalism and excellence in the insurance industry and values the importance of the independent agent? If so, nominate the individual for the NY-YIP of the Year award! For the nomination form, click here. The winner will be announced at the annual NY-YIP Golf Open on Monday, Aug. 5, 2024. Don’t wait: Nominate someone today.
Register now
Monday, Aug. 5, 2024: NY-YIP Golf Open
Wednesday, Aug. 14, 2024: CTYIP Summer Connections
Thursday, Aug. 29, 2024: New Hampshire Symposium & Wine Tasting—Register or sponsor
Tuesday, Sept. 10, 2024: NY-YIP Albany Fall Soiree
Monday, Sept. 23, 2024: PIANJ Golf Classic
Save the date
Thursday, Oct. 3, 2024: CTYIP Golden Gala Awards
Wednesday, Nov. 6, 2024: Hudson Valley RAP
Tuesday, Dec. 3, 2024: NJYIP Holiday Social
