Financial Insurance and Risk 2003 by methyae

VIEWS: 4 PAGES: 18

									Area Agencies on Aging Insurance and Risk Management Issues
by

Jeff Cole McNeary Consulting Services

Insurance and Risk Management Issues Current Insurance trends by line coverage  Insurance Market predictions for the next 12 months
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Insurance Program Tips General Insurance tips Summer workforce tips Open discussion

Current Insurance Trends by Line of Coverage
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Property

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Excess Liability

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General Liability

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Workers Compensation

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Automobile
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D&O

Current Insurance Trends for Property Insurance
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No credits

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Higher deductibles

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Restrictive underwriting

Current Insurance Trends for General Liability Insurance
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More exclusions
Higher rates Restrictive underwriting

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Current Insurance Trends for Automobile Insurance
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Vehicle use important
Higher rates Higher deductibles Restrictive underwriting

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Current Insurance Trends for Umbrella or Excess Liability Insurance
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Higher limits not available
Higher per million premium Exclusions Restrictive underwriting

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Current Insurance Trends for Workers Compensation
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Markets through larger agencies
Loss experience important Smaller premiums limit markets Mandatory terrorism coverage charge Very restrictive underwriting

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Current Insurance Trends for Directors and Officers Liability Insurance
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Minimum premiums are getting higher for not-for-profits
Higher per million premium Higher per claim deductibles Over-kill underwriting

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Insurance Market Predictions for the Next 12 Months
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Premiums

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Brokers

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Limits

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Insurers

Insurance Market Predictions for the Next 12 Months-Premiums
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Overall premiums increases up 20 percent (C I A & B -first quarter Survey) Auto increases 10-30% Property increases 10-20% D&O increases 10-30% EPL increases 5-20% General Liability increases 5-20% Workers Compensation 10-30%

Insurance Market Predictions for the Next 12 Months-Limits
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More willing to offer higher limits on most policies but still be expensive More willing to offer higher property limits Will continue to restrict D&O limits Will continue to restrict EPL Limits Higher umbrella limits should be available except over medical mal coverage

Insurance Market Predictions for the Next 12 Months-Insurers
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Low investment income gains will affect rates More instability and AM Best rating problems Require a ton of info on insureds Good loss ratio insureds will get the best pricing and terms Difficulties with Insurance Department

Insurance Market Predictions for the Next 12 Months-Brokers
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Less of them
Risk Management Services-Claims/RC Insurers are being very selective of the brokers they contract with

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Insurance Program Tips
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Time: Plan ahead Brokers/Agents: Institutional vs. market knowledge Underwriters: Go meet them Claim Adjusters: Let them know you are watching Showcase

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Cost: Seek an alternative for the mostly costly policy Coverage: Based on your claims history, how much is needed? Broker/Insurer Service: Require what you really need and get it in writing

General Insurance Tips
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Certificates of Insurance from contracted services Procurement-attract markets Keep good loss run records Know the difference between GL and PL

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Vehicle use policy Be the squeaky wheel Risk management audit Insurance Program reference book or manual

Preventing Injuries Among Seasonal Work Force Tips
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Make safety cool
Keep a sharp eye out

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Buddy up
Hold managers accountable Reward

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Repeat messages frequently
Train

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McNeary Insurance Consulting
Questions????


								
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