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Trindl Reeves, Principal, Chief Sales Officer, Commercial Department

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Commercial Insurance Trends in 2017

By Trindl Reeves, Principal, Chief Sales Officer, Commercial Department

clock January 23, 2017 at 10:00 AM

Happy New Year, everyone. As we begin 2017, let’s take a look at what’s going on in three specific areas of insurance: Workers’ Compensation, Cyber & Data Security, and Auto. Let’s also consider the impact of these trends and discuss some appropriate actions you might want to explore.  

Workers’ Compensation

In California, workers’ compensation rates are declining and the California Department of Insurance has recommended over 10% rate reduction since this time last year. However, there are a few changes that could impact your business.

Experience Modification

Effective January 1, 2017, The Workers' Compensation Insurance Rating Bureau of California (WCIRB) is calculating experience modification (ex-mod) using a different formula. Ex-mod provides employers with a financial incentive to reduce workers’ comp claims. The new formula was developed with hopes of leveling the playing field for small businesses by penalizing companies based on their size (total payroll) and their frequency of claims versus severity.

Takeaway: The net cost to the worker’s compensation system is neutral, but roughly 50% of our clients will see an increase in their ex-mod. Find out if your premiums will be going up this year by asking your insurance brokers to calculate your projected ex-mod using the new formula.

AB 2883

Beginning January 1, 2017, AB 2883 went into full effect in California, changing the exclusion requirements for directors and officers. Under this change to the labor law, an officer must own no less than 15% of the company to qualify for exclusion from workers’ compensation coverage.

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Topics: Property + Casualty, Market Trends

Economic Trends: Important Considerations for Managing Risk in 2016

By Trindl Reeves, Principal, Chief Sales Officer, Commercial Department

clock January 13, 2016 at 10:30 AM

From the Nepal earthquake to the California wildfires destroying over 1,000 homes, 2015 was a year of extremes. Even so, the United States experienced a light loss year, with insured losses due to weather and storms down 36% in comparison to 2014, while, globally, the natural catastrophic losses kept pace with past years. For the insurance market as a whole, rates are continuing to trend downward, which has been the case since 2013.

As we begin 2016, let’s take a look at what’s going on in five specific areas of insurance: Property & Casualty, Executive Risk, Cyber & Data Security, Terrorism and Workers’ Compensation.

Property & Casualty

Overall, 85% of our clients are expected to receive a decrease in premium, with an average rate reduction of 4.1% across all lines of coverage, dependent on claims history. However, there is one exception to this trend: automobile coverage. Modern cars are equipped with technology features that are very expensive to repair, so auto insurance premiums are currently increasing by 5-10% across the board.

Another trend in the Property & Casualty area is social engineering, a sophisticated form of “phishing” where a hacker convinces employees to send money to a criminal source. To be covered for an attack, social engineering needs to be added to a Crime Policy, as it is not automatically included.

2016 Takeaway: Insurance carriers are hungry for business and are willing to drop rates to keep clients with low claims history. Companies can take advantage of this by negotiating renewals early to lock in low rates.

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Topics: Property + Casualty, Cyber & Data Security, Market Trends

Workers’ Comp: Why There’s Light at the End of the Tunnel

By Trindl Reeves, Principal, Chief Sales Officer, Commercial Department

clock April 13, 2015 at 10:00 AM

For the first time in recent memory, the California Insurance Commissioner is set to recommend a decrease in workers’ compensation rates.

That’s not a mistake. In fact, the Commissioner will soon announce a rate reduction that industry experts expect will be in the high single-digits or low double-digits. If that happens, insurance companies will have the regulatory authority to dial back rates after many years of increases.

It’s likely many carriers will do just that.

So should employers start celebrating? Yes and no. While employers are getting a much-needed break, workers’ comp rates in California aren’t cheap by any measure. Companies need to effectively manage workers’ comp claims and have a safety program in place. Without a disciplined strategy, costs can still spiral out of control.

Read the full article on the TechFlash blog.

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Topics: Property + Casualty

2015 Economic Trends: An Optimistic Forecast

By Trindl Reeves, Principal, Chief Sales Officer, Commercial Department

clock January 8, 2015 at 11:01 AM

Between the Ebola epidemic, the disappearance of flight 370, ISSA declaring war on the world and a massive cyber attack on Sony Pictures, 2014 was a pretty scary year. However, when we look at the insurance market, we had the lowest year of insurable losses since 2009. Driven by good losses, the market is transitioning from premium rate increases to a gradual decline in rates. We can expect a lag in the reduction of rates, as it usually takes a couple years to see big changes.

As we begin 2015, let’s take a look at what’s going on in five specific areas of insurance: Property, Casualty/Excess Coverages, Employment Practices Liability, Workers’ Compensation and Data Security.

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Topics: Property + Casualty, Cyber & Data Security, Market Trends

Choosing a Commercial Insurance Broker

By Trindl Reeves, Principal, Chief Sales Officer, Commercial Department

clock June 2, 2014 at 10:00 AM

Selecting a commercial insurance broker can have a significant impact on the bottom line, but the process can be difficult to manage. There are three ways clients typically choose their broker:

Broker Interview

Interviewing your potential broker is highly effective, as it allows you to dig deeper than the written documents of an RFP. You can ask detailed questions to find out more about your prospective broker’s level of creativity and personality type. These factors can help determine if a broker is a good fit for your company.

RFP (Request for Proposal)

Many companies use this method to pick a broker, even though it is a very formal, time consuming process. Generally, a proposal team generates the RFP, which can run dozens to hundreds of pages long. Many times RFPs responses sound the same in writing so it becomes difficult to decipher which is the best response. If you use the RFP approach we recommend following the written responses with oral interviews so that you can really understand the differences between the brokers.

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Topics: Property + Casualty

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