Insurance Market Update
Owner/Operator Business Education
On The Changing Insurance Landscape
Insurance Market Update
Owner/Operator Business Education
On The Changing Insurance Landscape
Owner/Operator Business Education
On The Changing Insurance Landscape
Owner/Operator Business Education
On The Changing Insurance Landscape
This website serves as a centralized hub offering US Owner/Operators real-time information to facilitate planning for insurance in the unprecedented times, specifically for 2024 and beyond. It is consistently updated, sometimes even on a daily basis.
Insurance Rates are Up due to 40 year high Inflation (video) - April 11 2024
2024 CSU Hurricane Forecast - 4 April 2024
State Farm credit rating downgraded from A to B - 28 March 2024
US Homeowners Insurance up 55.47% since 2019 - 14 March 2024
2024 Forecast "Hurricane Season From Hell" - 4 March 2024
California - State Farm leaves after monster 2023 losses - 1 March 2024
Hawaii insurance rates skyrocket 100%-1000% after wildfire - 1 March 2024
Florida - Insurer of last resort is "not solvent" - 29 February 2024
Louisiana - Worst insurance crisis in history - 29 February 2024
Texas Wildfire - Update - 28 February 2024
Global insurance markets have stabilized - 26 February 2024
Affordability crisis and importance of Risk Management - SwissRe - 20 February 2024
Florida homeowners set to go up another 50% - 12 February 2024
Massive California Storm causes 10's of billions in damage - 6 February 2024
Federal Catastrophe Property Backstop will Increase Premiums - 23 January 2024
Federal Excess Property / Reinsurance Concerns - 15 January 2024
Auto insurance rates soar 20%+ in US - 12 January 2024
2023 confirmed as world's hottest year on record - 9 January 2024
Massive Earthquake Hits Japan triggering tsunami warnings - 1 January 2024
Record High Monthly Illegals Enter US including some on Terror. Watchlist - 31 December 2023
California unprecedented coastal waves 24-40 foot high - 30 December 2023
Weather anomaly warnings / disequilibrium not normal - 27 December 2023
State Farm's loss ratio hits record high - 20 December 2023
Bank of America says hard insurance market will continue to 2024 and beyond - 18 Dec. 2023
Winter Hurricane/Bomb Cyclone Hit US - 17 December 2023
Argentina Hit By Massive 100 mph Storm - 16 December 2023
2024 Atlantic hurricane season forecast is 50% above norms - 11 December 2023
Worsening of heatwave, droughts, wildfires, and floods - 27 November 2023
Hard Property insurance market expected to continue into 2024 - 21 November 2023
US Debt Interest Payments Nearly Double vs. 2020 - 16 November 2023
More insurance companies exiting California - 14 November 2023
Allianz reports highest natural cat ratio in a decade for Q3 - 10 November 2023
Four critical factors behind spiking non-catastrophic losses - 2 November 2023
Some Insurance Company Issues/Layoffs - October 2023
North Carolina says "perfect storm in the next 12-18 months" - 12 October 2023
Illinois Property Insurance Rates up 30% - 18 September 2023
Hurricane Lee set to be a Record Cat 4 Storm - 08 September 2023
National Property Insurance Crisis Sparks Senate Hearing - 08 September 2023
Hurricane Idalia hits US as Cat 4 Storm - 30 August 2023
Tropical Storm Idalia forms - State of Emergency in most of Florida - 27 August 2023
California hit by first tropical storm in 84 years - 17 August 2023
Hawaii wildfire sets deadly record - 13 August 2023
Severe thunderstorms account for 70% of Catastrophic Losses - 10 August 2023
FL Governor unprecedented skyrocketing insurance premiums and cancellations - 17 July 2023
US Heat Waves Continuing Across Country - 09 July 2023
Nationwide also takes action to pull back in California - 20 June 2023
AIG & Farmers also reported to pull-back from some catastrophe risks - 9 June 2023
Allstate stops issuing new policies in California - 6 June 2023
Property Catastrophe Rates up 33% on June 1 Renewals - 1 June 2023
Hard market (rising premium) conditions intensify in commercial property - 31 May 2023
State Farm decision highlights challenges in California's property market - 30 May 2023
NOAA Predicts Near-Normal 2023 Atlantic Hurricane Season - 23 May 2023
FEMA Releases New Flood Insurance Rates by Zip Code, Brace For Impact - 22 May 2023
D&O Prices Plummeting - Record Low Level - 22 May 2023
Higher Property Rates are here to stay, no wishful thinking - 1 May 2023
Insurers still wary on property catastrophe pricing - 24 Feb 2023
Property Insurance rates expected to jump another 40-50% in June - 17 Feb 2023
Turkey hit by M7.8 earthquake - 6 Feb 2023
US January Property Rates up 30%+, nearly 20 year high - 2 Feb 2023
Home Property Insurance Outlook - 1 Feb 2023
Renewals See Hardest Property-Catastrophe Insurance Rates in a Generation - 23 Jan 2023
Florida Homeowners Insurance Expected To Average 40% Increase - 19 Jan 2023
Property insurance rates to keep surging in 2023 - 10 Jan 2023
Catastrophe exposed rates continuing to rise fast - 9 Jan 2023
Rates now 165% higher than 2017 lows - 4 Jan 2023
No ILS capital coming to the rescue - Steve Evans | 20 Dec 2022
Attachment doubling, US renewals close with holes - 20 Dec 2022
Florida Property Surplus Down 23%, Loss Ratio at 147% - Steve Evans | 12 Dec 2022
Hurricane Ian's influence will be felt by all - Steve Evans (Swiss Re) | 9 Dec 2022
50%+ rate rise for US Property Reinsurance - Steve Evans (Goldman Sachs) | 8 Dec 2022
Hard insurance market will spell end for many - Fiona Robertson | 6 Dec 2022
Inflation will make 1/1 reinsurance renewals challenging - Market Insight | 6 Dec 2022
Grim picture for January 1 property reinsurance renewals - Bethan Moorcraft | 30 Sept. 2022
PROPERTY
Losses/Claims
Inflation (Government Spending)
- as the value of everything rises insurance premiums
are expected to rise proportional
DATA
Global Catastrophes
Severe Convective Storms (SCS)
Climate
Interest Rates / Bond Declines
Strikes/Protest/Civil Unrest/Looting/Smash and Grab
Geopolitical Tensions
LIABILITY
Judicial/Liability Hot Spots
Litigation/Attorney Fees
Nuclear Verdicts
Billion Dollar Events (2023 Summary)
Severe Storms/Tornado/Hail/etc.
Negligence is defined as an agent "failing to do something that a reasonable and prudent person would do, or doing something which a reasonable or prudent person would not do.".
Contact an Insurance Agent Licensed In Your State To Learn More
Insurance is a highly regulated US industry within Financial Services. The below activities always require an appropriate license. These activities include:
· comparing insurance products
· advising customers about their insurance needs or other insurance matters
· interpreting policies or coverages
· binding new, additional, or replacement coverage for new or existing customers
· binding coverage on or recording additional property under existing policies
· soliciting the sale of insurance by telephone, in person, or by other communication methods
The degree of Felony and penalty varies by the State in which the above happens. Consumers should report violations to their State Dept. of Finance Services.
https://www.insurancejournal.com/magazines/mag-features/2024/02/19/761025.htm
- An unlicensed person cannot “solicit” or “negotiate” insurance, which, according to the PLMA, equates to attempting to sell insurance or urging a person to apply for a particular kind of coverage from a particular carrier; and cannot conferring directly with or offering advice directly to a purchaser or prospective purchaser.
Contact an Insurance Agent Licensed In Your State To Learn More
Approved Brokers are required to present quotes and certain comparisons in a manner dictated by NOIT or Corporate Agreements. Other items (like Property/General Liability) are allowed to be presented in a way that brokers feel is best, and it is often difficult to determine which is which. It is suggested that you work with your broker to truly compare options, differences, etc. It is understood that using the required/dictated quote or comparison sheets might not truly represent coverage differences. Terms can be interpreted differently hence why in insurance ISO Form references are used. Each insurance policy has a custom coverage solution that does not fit into the required formats.
Familiarity with Local Laws and Regulations: An attorney licensed to practice in your state is likely to be well-versed with the state’s statutes, case law, and the rules and regulations that apply to your case and can provide you with legal advice that is based upon the specific laws and procedures of your state.
Representation in Local Courts: A lawyer licensed to practice in your state will likely have experience with the local court and judges. This is especially important if your case must be litigated in a specific court or jurisdiction.
Compliance with State Ethical Rules: An attorney not licensed to practice in your state may not be familiar with the specific ethical rules and regulations that apply to your case in your state. This can result in conduct, legal advice, or representation that does not comply with your state’s ethical rules for lawyers, which could be damaging to your case or your interests.
Source/Learn More: https://menzerlawfirm.com/blog/2023/05/can-an-attorney-from-another-state-represent-me/
Some Related Links Below
https://www.iii.org/article/what-employment-practices-liability-insurance-epli
The rise of sexual misconduct claims and potential coverage implications | Markel
Top EPLI Claims Trends, Stats & Examples | AmTrust Insurance (amtrustfinancial.com)
https://www.gbainsurance.com/EPLI-Insurance
Claims Examples: https://www.embroker.com/blog/epli-claims-examples/
Video by Embroker:
https://www.embroker.com/blog/epli-claims-examples/?wvideo=asdmlioduz
Contact an Insurance Agent Licensed In Your State To Learn More
Besides your claims/losses and the systems, premium are also driven by your Property Values and Sales. Even if rates were flat/same in a given year, if your Restaurants Building/Contents are worth more vs. last year and/or your Sales have risen, then you should expect that minimum % increase in your premium.
For example, lets' use your homeowners insurance as many understand this best. If
your homes value goes up 10% in a given year and thus you increased the value of
your home with your insurance company by 10%, your homeowners premium would
rise at least 10%.
Longevity of the broker and their respective insurance companies/markets is important. Leaving a long-term partner has left many over the years in tough positions. How long a Property insurance company has been supporting Owner/Operators is a great indicator of a programs abilities within the insurance marketplace and their long-term value to Owner/Operators. Remember, more than half of the brokers in early 2023 presented a new insurance company/market to Owner/Operators.
These are often confused and much different. Ask your licensed insurance agent which they offer and for the differences.
NOIT Glossary:
Click Here or visit https://noit.com/resources/glossary/
Other Terms:
ALS: Actual Loss Sustained
BI: Bodily Injury Read More
BI Coverage: Business Interruption Coverage Read More
BINDER: A legal agreement issued by either an agent or an insurer to provide temporary evidence of insurance until a policy can be issued. Read Full Definition
CAPACITY (insurance): The largest amount of insurance/reinsurance available from a given insurance company/market. Learn More
D&O: Directors and Officers
EPLI: Employment Practices Liability Insurance
EPRMA: Employment Practices Risk Management Association
EXCESS INSURANCE: Excess insurance covers a claim after the primary insurance limit has been exhausted or used up
FIP: Florida Insurance Program
GL: General Liability
LLOYD'S OF LONDON: Is a marketplace for insurance, not an insurance company per se. More than 80 “syndicates” and 50 managing agents underwrite at Lloyd’s. The primary competitive advantage over its closest competitors that Lloyd’s has had over the years has been its ability to pool capacity to insure large exposures. Lloyd’s has also traditionally been more innovative with respect to contract wording and has exhibited greater flexibility in insuring “problem” risks. Lloyd’s has benefited from the existence of a large and sophisticated brokerage community in London. It is also perceived by many in the business, as well as insureds, to be “user friendly”
MONOPOLY: A monopoly is a market structure that consists of only one seller or producer. A monopoly limits available substitutes for its product and creates barriers for competitors to enter the marketplace. Monopolies can lead to unfair consumer practices.
NOIT: National Operators Insurance Team (see NOIT for roles/responsibilities). Voting body appointed by NFLA with representatives from diversity groups, regions, and more.
ORMA: Owners Risk Management Association (see NOIT for roles/responsibilities)
PML: Probable Maximum Loss Read Full Definition
PUBLIC ADJUSTER: https://noit.com/resources/report-a-claim/#PublicAdjustersFAQ
RISK MANAGER: Roles and Responsibilities. Many O/O's have these on their team.
SHERMAN ANTITRUST ACT: https://www.law.cornell.edu/wex/sherman_antitrust_act
TIV: Total Insured Value (which usually includes Building, Contents, and Business Interruption)
TLPG: Tort Litigation Practice Group
UNAUTHORIZED INSURER: A fraudulent business that is posing as a legitimate insurance company. As the name suggests, unauthorized issuers are not registered with their state's insurance regulator, and as such are not permitted to legally sell insurance products.
The current years timelines can be fluid depending on Corp. and NOIT. However, you can leverage the past years to set expectations and plan accordingly.
Approved Broker
Work on the 2024 Renewal
Partner With Clients and Support System Throughout the Year
Support NOIT and Corp. with adhoc requests
Corp. Approval Process (Property/General Liability Only)
NOIT Meeting to approve changes for 2024 (September)
Broker Meetings at Corporate Headquarters (Late-October)
Corp. Provides New Broker and Insurer Agreements/Requirements (12/9)
Insurers Review Requirement changes to decide if they want to participate
Brokers Review Requirement changes
Brokers Finalize Insurance Markets, Reprice, Renegotiate, etc.
Brokers Submit To Corp. Required Agreement Signers (12/21)
Corp. and/or NOIT Provide Brokers Others Requirements
Brokers adhere to new Agreements/Requirements if they want to be "Approved"
Brokers provide other required items to Corp. per 2024 Agree. (12/31 or prior)
Execute/signing of all Annual Agreements (within 30 days after receiving correct draft)
NOIT Meeting (End of December)
Email from NOIT sent to all US Owner/Operators (1/3)
Agreement Finalization with Insurance Markets
Brokers provided renewal terms by national providers Gallagher/McGowan/Aon (1/12)
Clients Updated On Renewal, Expectations, etc.
Broker Update Their Internal Systems with Changes in Agreements and in Emails
changes to data feeds required, new 2/6 RSUI EPLI option, RSUI EPLI O/O deductible
exception/increase list, remove TLPG references, remove Lapointe references, new
policy numbers, Umbrella paperwork, etc.
Broker Final Negotiation of Terms, Options, Other Coverages, and Premiums
Brokers receive pricing for Excess Catastrophe Property (1/19)
Brokers provided high-level email from NOIT (1/22) - "start your engines"
EPLI (optional), Cyber (optional), other Approved Rules, Approved Broker Listing, Excess
Property details, Coverage Compare Template to return, etc.
NOIT Final Meeting in Hawaii (Late-January)
Brokers Send Insurance Proposals to Owner/Operators (2/5)
Bind Coverages / Send Confirmations of Coverage to Owner/Operators
3/1 - Brokers Bind Coverages with their direct insurance companies/markets
3/1 - Package Policy Effective Start Date
3/1 - Brokers support NOIT in reconciling their bind data: Umbrella, Quake, EPLI, Cyber, etc.
3/2 - Brokers support NOIT in reconciling their bind data: Umbrella, Quake, EPLI, Cyber, etc.
3/3 - Brokers support NOIT in reconciling their bind data: Umbrella, Quake, EPLI, Cyber, etc.
3/4 - Brokers support NOIT in reconciling their bind data: Umbrella, Quake, EPLI, Cyber, etc.
3/5 - Brokers support NOIT in reconciling their bind data: Umbrella, Quake, EPLI, Cyber, etc.
3/6 - Brokers support NOIT in reconciling their bind data: Umbrella, Quake, EPLI, Cyber, etc.
3/6 - Owner/Operators deposit invoice(s) to be paid to Broker
3/7 - Brokers support NOIT in reconciling their bind data: Umbrella, Quake, EPLI, Cyber, etc.
3/8 - Brokers start receiving policies from their direct insurance companies/markets
3/8 - NOIT Binds Coverage for Umbrella cc's broker
3/8 - NOIT Binds Coverage for CA Earthquake and cc's broker
3/8 - NOIT Binds Coverage for Excess Property cc's broker
3/11 - Brokers continue to support NOIT in reconciling their bind data: EPLI/D&O and Cyber
3/12 - NOIT Binds Coverage for EPLI/D&O cc's broker
3/12 - NOIT Binds Coverage for Cyber cc's broker
3/15 - Aon sends Broker Invoice for CA Earthquake
4/1 - All Insurers required to provide 2 specimen/sample policies to Corp.
4/1 - All Brokers required to provide AM Best Ratings and Carrier/Market Listing
3/15 - Aon sends Broker Invoice for Excess Property charges
4/1 - NOIT Invoice sent to Brokers for ORMA Fees
4/1 - NOIT Invoice sent to Brokers for TLPG Fees
4/23 - Aon provides final broker agreement to Brokers
4/23 - Aon/Brokers execute Excess Property agreement
TBD / May? - Brokers start receiving policies from NOIT Endorsed insurance companies/markets
Owner/Operator
Loss Prevention
Review Claims/Losses (at least monthly)
Plan/Budget for 2024
Submits Insurance Application
Receive Insurance Proposal(s)
Review Proposal With your Agent
Renew with your Broker and Send Payment timely
The world is changing and we are here to help you.
Whether a client or not, we are here!
Please reach out no matter your situation or status - we will do our best to help you and your business.
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