JEFF ALBRIGHT
Chief Executive Officer
jalbright@iiabl.com
(225) 236-1366
BENJAMIN ALBRIGHT
Vice-President of Strategic Initiatives balbright@iiabl.com
(225) 236-1357
KAREN KUYLEN
Director of Accounting & Finance
kkuylen@iiabl com
(225) 236-1353
JAMIE NEWCHURCH
Director of Insurance Programs
jnewchurch@iiabl.com
(225) 236-1350
KATHLEEN O'REGAN
Director of Communications & Events
koregan@iiabl.com
(225) 236-1360
BRANDI VAN PELT
Insurance Programs Administrator
bvanpelt@iiabl.com
(225) 236-1358
DUSTIN WAMBSGANS
Agency Consultant
dwambsgans@iiabl.com
(225) 236-1361
LISA YOUNG-CROOKS
Director of Member Relations
lyoung@iiabl.com
(225) 236-1351
Building Risk Insurance: Why Timing is Everything
Upcoming Events
4 Environmental Exposures Impacting Commercial Clients
The Best Technology is the Technology You Use
Six Underutilized Features in Agency Management Systems
Rescinded: Mandatory Payment of Expenses Incurred by Policyholders who Evacuated and/or were Prohibited From Using Their Premises Due to Hurricane Ida
IPFS Premium Finance Program for IIABL Members
IIABL Makes E&O Simple
Perfect Storm Creates 'Hardest Market Cycle in a Generation'
Is Providing a Replacement Cost Estimate To Lenders an E&O Exposure
Worrying Sign' as Homeowners Repair, Claim Times Increase but Digital Usage Declines
Advertiser Index
2023 Industry Partners
IIABL Officers & Board of Directors
Jeff Albright
April 2023
For the first time in years, there are reasons to be optimistic that the insurance industry may actually get help from the Louisiana Legislature this year. The abysmal property insurance market has legislators asking what they can do to attract more insurers to do business in Louisiana.
Here are some of the bills that could actually attract new market capacity to Louisiana.
HB 601 – Bad Faith Statute Clarifications
Importantly, the bill does not eliminate or reduce the penalties in the statute – if an insurer is truly a bad actor, they will still be hit with the full penalty and attorney’s fees.
The current bad faith statute creates a significant problem for policyholders because they do not know what is required to meet the statutory definition of “satisfactory proof of loss” which is the only way to put the insurer on the clock to pay within 30-days or face bad faith penalties. The language added by HB 601 provides a process by which the policyholder can move their claim forward by fulfilling their clearly outlined obligations in the claims process.
The proposed changes will also benefit insurers by providing clarity on the trigger for bad faith, which reduces unnecessary litigation. This should bring down claims costs without removing the requirement to settle claims in a reasonable time period, which is an important step in improving the property insurance market availability and affordability problems in Louisiana
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Admitted property & casualty insurance companies are the only private industry in Louisiana that suffers from government price controls. Rate regulation has not resulted in reasonable insurance premiums. On the contrary, some insurers do not operate in Louisiana, and others have left Louisiana because of these government price controls. Only 16 states have prior approval rate regulations like Louisiana. HB 489 will still allow the Commissioner of Insurance to disapprove filings that are unfairly discriminatory or violate Louisiana law. However, it would not allow the Commissioner to disapprove rates because he disagrees with the actuarial methodology.
Insurers will not do business in Louisiana if they cannot charge the premiums, they think they need. A free and competitive insurance market will regulate prices much better than bureaucratic government regulation. HB 489 will encourage more insurers to sell insurance in Louisiana.
Assignment of benefits is a practice in which the policyholder contractually gives another entity – often a contractor or attorney – the right to recover the benefits of the policy in exchange for services: repair of the building or representation.
This practice has led to massively inflated claims costs for insurers: when the contractor who is doing the repairs is also the one collecting under the policy, there is a profit incentive to inflate the cost of the claim. This was one of the driving factors behind the collapse of the Florida homeowners market (rectified in their recent special session) and is a contributing factor in Louisiana’s current Homeowners insurance market crisis
Assignment of benefits has also resulted in policyholder abuses In some cases, roofers are approaching desperate people with damaged roofs and requiring an assignment of benefits in order to begin repairs on the home Then, when the policyholder’s roof is repaired, and they go to repair the wet and damaged interior, the policyholder discovers that the roofer used too much of the policy limit on the roof repairs (under the assignment of benefits), and the policyholder does not have enough left to repair the interior of their building. The insurance contract is between the insurer and the policyholder – payments of policy benefits should go from the insurer to the policyholder, who can then decide how much to pay a given contractor.
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When a policyholder does not agree with their insurer on the valuation of their property insurance claim, they can get their own appraiser to value the loss and negotiate with the insurance company appraiser. If they cannot agree on the amount of the loss, they can engage a third “umpire” appraiser to resolve the dispute.
The problem for policyholders is that there is no standards for appraisers or a directory of appraisers that they can hire to assist them with their claim.
HB 604 establishes standards for appraisers, a registration process with the Department of Insurance, a process for appraisals, an “umpire roster” and related regulatory processes to help policyholders to navigate the appraisal system to resolve the amount of their claim without resorting to litigation.
The Louisiana Department of Insurance (LDI) promulgated Regulation 124 to implement the provisions of the Act No. 80 of the 2022 Regular Session of the Louisiana Legislature, which mandates that the Department promulgate rules and regulations for a catastrophe claims process disclosure guide.
Regulation 124 requires all property and casualty insurers settling a property insurance claim arising out of a state of emergency declared by the governor to provide this guide to the policyholder at the time of the claim.
The Catastrophe Claims Process Disclosure Guide has been uploaded to the department’s website HERE.
Although insurers are required to provide this guide to policyholders at the time of a catastrophe claim, the guide can also be a very helpful resource for agents to guide their policyholder through the claims process.
Share this Technical Advisory with all producers and agency staff who work with policyholders at the time of a claim and encourage them to share the guide with policyholders as part of the claims management process.
Whenever a state of emergency is declared by the governor, an insurer must provide a disclosure guide to all policyholders asserting a claim for damages caused by the disaster or catastrophic event made the subject of the governor’s emergency declaration.
The disclosure guide was created by the department and issued to all property and casualty insurers licensed in this state.
The disclosure form-guide has been uploaded to the department’s website HERE and insurers and agents are authorized to access and download it as needed to comply with Regulation 124 and with the statutory requirements set forth in R.S. 22:1897.
The insurer shall send the disclosure guide to the policyholder on the date that they adjuster begins an initial investigation of the claim.
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The insurer may deliver the disclosure guide to the policyholder and appropriate proof of timely delivery must be maintained by the insurer:
1.
United States mail: proof of such mailing shall be sufficient evidence to establish delivery of the disclosure guide, provided it reflects the date of the mailing and the policyholder.
2.
Electronic delivery: email delivery receipt or, if none, a copy of the as-sent email, shall be sufficient evidence.
3.
Hand-delivery: the insurer must complete and sign a Certificate of Hand-Delivery, verifying pertinent details related to the delivery of the disclosure guide, including the date and location of the delivery, and the name of the policy holder
Regulation 124 became effective March 20, 2023.
View Regulation 124 here.
The 119th IIABL Annual Convention & Exhibition will be at the Hilton Sandestin Beach Golf Resort & Spa June 18-21, 2023.
Paradise is a place of extreme beauty, delight, or happiness; a place of contentment, a land of luxury and fulfillment containing everlasting bliss. Louisiana is our paradise which led us to our theme for this year, “Louisiana Paradise.” All of Louisiana’s unique features create a paradise like no other. All corners of our great state celebrate our diversity and beauty that provide an everlasting bliss. Our agenda is inspired by the musical culture of Louisiana. We escape from one paradise to another during the summer to enjoy our home away from home at the Hilton Sandestin and bring a piece of our musical culture with us wherever we go. The unique character of the white sandy beaches provides the perfect backdrop for our treasured Annual Convention. So come to our other paradise and be prepared to pass a good time with your fellow Louisianians as we ‘Laissez les bon temps rouler!’
Get ready to put this speaker soundtrack on replay! You will learn from some of our industry’s most knowledgeable leaders and earn up to 12 hours of continuing education.
Our headliner, Jay Dardenne, Commissioner of Administration, will give his renowned
presentation, ‘Why Louisiana Ain’t Mississippi,’ which will showcase how Louisiana differs from every other state. The presentation will provide a look at Louisiana’s geography, demography, history, culture, and politics and include a “whirlwind tour” of every parish, laced with fact, lore trivia and music.
Creating the ultimate customer experience doesn’t have to be overwhelming. Everyone talks about creating a great customer experience, but few people really deliver one that’s special in any way. Dustin Wambsgans is a results-driven agency consultant who will discuss professional standards of customer care, how to use your AMS to serve customers, and the role of agency procedures in providing the ultimate customer experience during this three-hour workshop.
Spend a few hours with Selective’s Flood Territory Manager, Gregg Porter, to get up to speed on the most recent flood industry news, including NFIP policies, flood rating guidelines and claims processing. Selective’s three hour continuing education course not only offers you the opportunity to work one on one with an experienced flood insurance professional, but it also provides you with the tools and information needed to effectively speak flood.
The Louisiana insurance industry is going through another tough legislative session. We will get a chance to hear directly from Commissioner Donelon and the Louisiana Department of Insurance on the outcome of the Legislative Session and current LDI issues they are facing this year.
The work in the industry doesn’t stop in our state. IIABA is hard at work for our agents with new and ongoing initiatives that can impact your agency. Charles Symington, Executive Vice President, will give an overview to our members.
During our farewell tour, Jeff & Ben Albright will address how insurance was on everyone’s agenda this session. Legislators are prepared to address the crisis in the state’s property insurance market. IIABL is working for our agents at the capital and keeping you informed. After session, we all want to know how what happened affects us. Jeff & Ben Albright will review the legislation IIABL tracked during the 2023 Regular Legislative Session and break it down for you.
During our intermissions, we will have plenty of fun activities for you and your family to enjoy around the hotel. Some oldies but goodies include Frozen Drink Treats on the Veranda, Sunset Cocktail Reception on Sunset Deck and Good Time & Tan Lines Beach Tailgate on Center Beach.
Back by popular demand, IIABL will host Casino Night on Tuesday evening again. This year we have put in a special request for electricity #IYKYK. Attendees will receive “funny money” that you can use to play real casino games that will be set up in the Coastal Ballroom. We will have drinks and desserts, the New Orleans Ramblers Trio providing musical entertainment to compliment our theme, and a photobooth sponsored by RISCOM to capture your favorite party pics throughout the night. As Casino Night comes to an end, winnings will be turned in for raffle tickets to win exciting prizes.
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Don’t forget to pre-order your official Annual Convention t-shirt to commemorate our fun theme this year! All proceeds from our sales will benefit the Trusted Choice Relief Fund which is available to provide financial assistance to industry personnel impacted by catastrophic occurrences not covered by their own insurance or other grants and funding sources. T-shirts will be available for pick up at the Annual Convention on June 18 at the Registration Desk. T-shirts will not be available for purchase on-site and must be pre-ordered by May 10.
Register today, come learn from some of our industry’s most knowledgeable leaders, network with peers, carriers, and people who get things done, and most importantly, come have a darn good time!
We can’t wait to see you at the beach!
It’s a simple phrase, but one that has a big impact on our lives, relationships, jobs–even the overall economy. And it’s more and more common these days.
Experts agree that after three years of pandemicfueled adaptations, always-on remote availability, increased stress, and juggling of work and personal demands without clear guidelines or boundaries, we’re all exhausted.
That exhaustion is having serious repercussions on our physical and emotional health, and on the health of our businesses. According to a Gallup survey, nearly 60% of employees report that they are stressed at their jobs every day. Not only is this making us unwell, but it’s also “manifesting as decreased productivity and performance, nonotice quitting and workplace conflict” in the workplace, according to Harvard Business Review. Even higher-level executives are citing feeling tired and drained as reasons why they’re planning career switches, according to a staffing executive quoted by Korn Ferry.
Yikes.
So how do we right this ship? How do we encourage our people to rest and recover and, just as important, prevent burnout in the first place?
Harvard Business Review identified several ways companies can combat worker exhaustion. First and foremost, leading firms are adopting the strategy of “proactive rest.” This concept embraces the idea that rest shouldn’t just come after a period of stress or intensity, but rather should be instituted regularly to avoid burnout in the first place.
Proactive rest may take many forms, including giving PTO before demanding work periods, instituting days of the week where no meetings can be scheduled, regular wellness times, and mandatory vacation time.
Harvard Business Review also suggests the most effective companies will implement opportunities for discussion among employees to tackle challenging issues and topics without judgement or
“I’m tired.”WAHVE
consequences. Some will even enlist the help of trauma counselors to train managers on handling workplace conflict, including how to engage in potentially difficult conversations with employees.
As organizational psychologist Adam Grant put it: “Over time, well-being is vital to success. Daily exhaustion adds up to long-term burnout. Success can be attained without rest, but it isn't sustained without rest.”
It’s time we learn not just to rest, but how and when to rest.
What are some ways you take a break, and do you encourage those around you to rest as well?
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WAHVE (www.wahve.com) powers the delivery of talent and technology to the insurance industry. Our Work At Home Vintage Experts contract staffing talent solution pairs insurance organizations with pretiring, highly skilled insurance professionals in work-from-home positions. Our Brainwahve intuitive technology platform streamlines the candidate qualifying process and manages the recruitment lifecycle to recruit/retain the most qualified, diverse candidates.
Builders risk insurance covers materials, fixtures and equipment installed during the renovation or construction of a structure. Coverage is triggered if any of those items undergo physical loss or damage from a covered cause. Whether clients are personal lines or commercial lines, agents servicing course of construction accounts must grasp the importance of timing when it comes to securing coverage.
Generally, coverage should begin when building materials are delivered to a construction site. That requires the agent to stay in close contact with their client especially as supply chain hiccups can delay the manufacturing and delivery of plumbing, electrical, lumber and other building materials.
B U L D E R S R I S K I N S U R A N C E : W H Y T I M I N G I S E V E R Y T H I N G
However, being too early costs the client money. Securing an effective date before the owner or contractor is ready to begin building or remodeling starts the policy clock without insuring anything. By contrast, being too late can mean a shortage of coverage and an insured not having coverage for a loss that happens prior to policy inception.
In many cases, funding from a bank or other lending institution dictates the timing and coverage requirements. Oftentimes, a lender expects coverage as a condition of closing the loan. This means the policy inception date is the same as the loan's closing date.
In some instances, construction does not start on time due to unforeseen delays. If this is the case, the agent could request a cancelation and then issue a new policy with the lender's consent with a revised effective date. The policy term is then reset. If this can't be accomplished, the agent can let the policy term run its course, aiming to renew it. In this instance, it's important to select a provider who offers renewal options for the type of project.
If construction begins without coverage, there's a lot of risk. Some builders risk carriers won't insure projects that are already underway. Most likely, additional underwriting will be required, which delays coverage and could result in the submission being declined.
On top of that, the client won't have coverage for a loss. One example is if building materials are delivered to a construction site and they are stolen. If a policy wasn't secured, there's no coverage for the replacement materials.
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When securing a policy, it's also helpful to know the project's anticipated completion date, which is based on the length of time it takes to finish the job, not the scheduled policy term. Conversing with the client and reviewing the construction contract are the best ways to determine it.
The most important advice for independent agents is to stay in close contact with their clients, be curious about their projects and ask questions to ensure they get a policy with the right coverage.
Mary Stiglic has over 30 years of experience and is a marketing manager at US Assure, which exclusively distributes, underwrites and services Zurich's builders risk insurance program across the U.S.
IIAGNO
IIABR TopGolf Charity Event
IIASB May Luncheon May 25 The Shreveport Club Shreveport, LA
NeedFloodand/or Ethicsthismonth? Checkoutour calendar. AllCEcoursescan befoundonour websiteHERE.
I M P A C T I N G
C O M M E R C I A L C L I E N T S
Annemarie Mcpherson Spears IA News EditorEnvironmental liability insurance is the elephant in the room: the market is expanding, capacity is excellent, the risk is relevant to essentially every commercial client that comes across an agent's desk … and yet few agents are seeing it as an opportunity.
“Our research shows that fewer than 15% of licensed agents are actively working in the space, and yet 100% of commercial insureds are impacted by environmental exposures," says Chris Bunbury, president & CEO of Environmental Risk Managers Inc. (ERMI).
Those environmental exposures are becoming harder to ignore, with “ a combination of greater awareness of human impact on the environment and increases in science that show harm at very low levels of exposure to pollutants are increasing the overall risk," says David Dybdahl, CEO of ARMR Specialty Holdings. “At the same time, insurance companies are eliminating loss exposures to specific contaminants and that void in coverage is filled by adaptations of the environmental insurance product line."
All this leads to a market that is continuing to grow “20% to 30% a year," says Daniel Drennan, environmental practice leader at Amwins.
As far as capacity is concerned, “the environmental insurance market capacity has exceeded demand for the last 20 years or more," Dybdahl says. “If limits happen to be an issue, most carriers are willing to write excess of other carriers' underlying policies, so building towers is a very common thing we do now," Bunbury adds.
With great capacity and an expanding market, the biggest obstacle for independent agents is education. In the CIC designation, Dybdahl notes that the class guide skips right over the pollution exclusion, Exclusion F, in the commercial general liability policy. However, Environmental Risk Managers recently partnered with the National Alliance to create the Certified environmental Strategist (CeS) program designation to help educate agents about environmental liability.
As awareness of risks continue to prompt more stringent pollution exclusions, here are some of the biggest environmental exposures that impact
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commercial lines clients today:
1) Engineered chemicals. Thanks to scientific advancements, the impact of chemicals created by humans is just beginning to be measured, including per- and polyfluoroalkyl substances, known as PFAS or simply “forever chemicals," and microplastics.
From PFAS' presence in the blood of humans and animals around the world and its potential link to cancer, according to the Environmental Protection Agency, to microplastics in baby bottles, according to NPR, these engineered chemicals are inescapable. Other emerging risks include 6PPD, a tire preservative that when washed into rivers by rain has been found to be deadly to fish, according to the California Department of Toxic Substances Control.
“As testing gets better with technology, there's definitely more exposure for attorneys to link
specific chemicals to a specific disease," Drennan says. “While historically you couldn't test to a micro-level of what's in the environment or in someone's body, it's gotten better that's going to lead to more lawsuits."
2) Natural disasters. In 2022, the U.S. experienced 18 separate weather and climate disasters costing at least $1 billion each, with a total cost of at least $165 billion to rank third-highest in total cost behind 2017 and 2005, according to Climate.gov.
“If you have insureds located in areas with floods, hurricanes, tornadoes or earthquakes, they're good candidates for pollution coverage because we're seeing the amount of claims after natural disasters for environmental liabilities on the rise," Bunbury says. “It's something we're really noticing as more natural disasters occur."
3) Cyberattacks. Cyber policies have a pollution exclusion, Bunbury says, meaning that “agents should round out a cyber policy with a pollution policy," he says. “Cybera treatment plants and ca thousands of gallons of u into the river and neighb
Businesses beside waste not immune, either an that hackers can impact watercraft, trains, aircra plumbing and other syst computers, and a cyber resulting pollution liabil
4) Biohazards. The exclu from property and liabil swathes of insureds to lo all commercial buildings know that water intrusi 60% of all property claim three days to take care o drywall just about every
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“There's absolutely no training for insurance agents on fungi and bacteria exclusions, so they're not telling their customers about the effects of the exclusions," he continues. “It also helps to know that the average sub-limit for mold on a commercial property is about $15,000, while the average mold cleanup job in commercial buildings is $250,000."
AnneMarie McPherson Spears is IA news editor.
Catalyit Blog
According to the 2022 Best Practices Study1, agencies invest anywhere from 2.5% – 3.5% of their total revenue in technology. In my experience, many of the most forward-thinking agencies are investing far more than this in their technology stack.
There is no question that technology is and will continue to make a massive impact on our industry and the way that agents of today and tomorrow serve their customers. Investing in technology for your independent agency can be a game-changer, however, it’s important to have a well-thought-out plan to ensure that your investment pays off in the long run.
The right technology for your agency is the technology that you will use. Finding the technology that you will actually use requires a carefully thought-out plan as well as solid execution of that plan. When you are building out your strategy for investing in technology, consider implementing these steps; otherwise, you may find that your technology investment is really just an
expense inside your agency. It can only be an investment if the technology solves a problem, improves efficiency, is well-implemented, and is utilized across your entire agency. Without adoption, technology can actually have a negative impact on your agency, staff, and culture.
Here is an outline of the components of a solid plan for selecting and implementing technology inside your agency:
1.) Avoid the shiny-object syndrome and align technology with your business goals: Your technology investment should align with your business goals. Having a plan helps you determine what you want to achieve with your investment and how technology can help you achieve those goals. For example, if your goal is to increase customer satisfaction, investing in a customer relationship management (CRM) system could be a good option.
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2.) Team input and involvement: To define the goals for the technology, you need to find out what the pain points are for your team. This will help you define what the key problems are and narrow your search for solutions.
3.) Assess the tools you have: Often, the tools that are already implemented are not being utilized to their fullest potential. Technology is changing fast, and that includes both new technologies in the industry as well as technologies that have been here for quite some time. Reach out to your contact at your current technology providers and review your list of needs or problems you are trying to solve. You may learn that the solution is training, not a new technology purchase.
4.) Budget management: A good plan helps you manage your budget effectively. By creating a roadmap for your technology investment, you can identify the costs involved and allocate resources
accordingly. This can help you avoid overspending and ensure that your investment is within your budget.
5.) Risk management: Investing in technology can come with risks such as technical difficulties, security breaches, or integration challenges. A good plan includes a risk management strategy that identifies potential risks and outlines mitigation measures to minimize their impact.
6.) Prioritize needs: With so many technology options available, it can be difficult to determine which ones are essential for your business. A good plan helps you prioritize your needs and identify which technologies are most important for your business.
7.) Communicate and implement: To ensure that the new technology is implemented and utilized by the entire team, you need to involve them. Identify who is best to lead the implementation process and communicate expectations about key components of the change such as: the time requirements, purpose, changes needed, and, most importantly, what success looks like for everyone if the technology is implemented and utilized properly. One of the biggest reasons for failure in technology implementation is a lack of understanding of the purpose and impact of the change.
8.) Measure success: A good plan includes metrics that help you measure the success of your technology investment. By tracking key performance indicators (KPIs), you can determine if your investment is meeting your expectations and make adjustments if necessary.
Technology is not going away, and there is no question it will have a profound impact on the insurance industry as a whole. Investing in technology for your independent insurance agency can be a great way to improve efficiency, maximize productivity, and enhance the customer experience. However, to ensure that your
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investment pays off and protects your team and culture, it’s important to have a good plan that aligns with your business goals, includes input and involvement from your team, manages your budget and risks, prioritizes your team’s needs, is implemented and communicated well, and has a clear measurement of success.
For more information about planning for the success of your agency, visit www.agencyfocus.com or contact Carey Wallace at carey@agency-focus.com.
1 – Best Practices Study as reported by IIABA and Reagan Consulting
Unlock the full potential of your insurance agency with these six underutilized agent management system features – from automated reporting to real-time carrier submissions, discover how to streamline your operations and boost your bottom line
As the insurance industry becomes more and more competitive, it is critical for agencies to utilize every available tool and feature to stay ahead. One of the most important tools for an insurance agency is an agent management system (AMS). AMS software can streamline an agency’s operations, allowing agents to focus on providing exceptional service to their clients. However, many agencies are not fully utilizing the capabilities of their AMS. In this blog, we’ll explore some of the most underutilized features of AMS software, including integration with phone systems and messaging, digital marketing automation, sales and producer pipelines and analytics, carrier submission integrations, database cleaning tools, and automated reports.
Many AMS software programs offer integration with phone systems and messaging platforms, but few agencies take advantage of this feature. With phone system integration, agents can receive calls directly within the AMS software, eliminating the need for separate phone systems. Messaging integration allows agents to communicate with clients and team members through various messaging platforms, all within the AMS. This can increase efficiency and improve communication within the agency.
Go to Catalyit’s Phone Systems Guide
Digital marketing is becoming increasingly important for insurance agencies, but many are not utilizing the automation features available in
their AMS software Automation can streamline marketing campaigns, allowing agents to focus on providing exceptional service to their clients. AMS software can integrate with email platforms, providing agents with the ability to create and send targeted email campaigns. Additionally, many AMS programs offer pre-built email templates that agents can customize to their needs.
Go to Catalyit’s Marketing Automation Guide
3) Sales and Producer Pipelines and Analytics
Many AMS programs offer sales and producer pipeline tracking and analytics, but few agencies take full advantage of them. By utilizing these tools, agencies can better track their sales and revenue, identifying areas for improvement and making data-driven decisions. Additionally, AMS software can provide valuable insights into producer performance, allowing agencies to
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optimize their team’s productivity and identify training opportunities.
Go to Catalyit’s Sales Management Guide
4) Commercial and Personal Lines Carrier Submission Integrations and Real-time Connection
Carrier submission integrations are an important feature for insurance agencies, as they allow agents to submit applications and claims directly through the AMS software. However, many agencies do not take advantage of real-time connection capabilities, which can greatly speed up the submission process. Real-time connection allows agents to receive immediate responses from carriers, reducing wait times and increasing efficiency.
Go to Catalyit’s Commercial Lines Quoting/Rating Guide
Go to Catalyit’s Personal Lines Quoting/Rating Guide
Over time, an agency’s database can become cluttered with outdated and irrelevant information. AMS software can offer purging capabilities and database cleaning tools to help agencies keep their databases organized and upto-date. However, many agencies do not take advantage of these tools, leading to bloated databases that can slow down the AMS software. Another key consideration is the removal of personally identifiable information (PII) from the database to remain compliant with statutory minimums and not expose your agency to additional liability with those polices and data out of scope for retention.
Go to Catalyit’s Cybersecurity Guide
Automated reports can be a powerful tool for insurance agencies, providing valuable insights into the agency’s performance and productivity. However, many agencies do not utilize automated reporting or do not send reports to the appropriate roles within the agency. By scheduling automated reports to be sent to accounting and other key roles within the agency, agents can ensure that everyone is informed and working together towards shared goals.
Go to Catalyit’s Agency Management System Guide
In conclusion, agent management systems are powerful tools for insurance agencies, but many are not utilizing all the available features. By integrating phone systems and messaging, utilizing digital marketing automation, tracking sales and producer pipelines and analytics, using carrier submission integrations with real-time connection, purging databases, and automating reports, agencies can improve their efficiency, increase revenue, and provide exceptional service to their clients. It is critical for agencies to take advantage of these features to stay ahead in an increasingly competitive market. If you would like to learn more about how you can take full advantage of these features, please contact Catalyit today!
All authorized insurers and surplus iines insurers doing business in Louisiana are hereby given notice that Directive 218, issued on September 7, 2021, is hereby rescinded.
Directive 218 directed all authorized insurers and all surplus lines insurers doing business in Louisiana that, to the extent any insurance contract contained language implying the need for a civil authority to issue an evacuation order, such insurers were to treat all actions and communications by public officials in advance of Hurricane Ida as tantamount to an order to evacuate that fulfills any such policy requirement. On July 7, 2022, the Division of Administrative Law issued an order in In the Matter of State Farm Fire and Casualty Company and Dover Bay Specialty Insurance Company , Docket No. 2021-6585-INS, stating that Directive 218 is invalid and unenforceable
Baton Rouge, Louisiana, this 29th day of March 2023.
Imperial PFS is the IIABL endorsed premium finance program for all of your agencies premium finance needs. The size and independence of Imperial PFS provides the financial strength and flexibility to handle all of your accounts, ranging from large, complex deals to the small, straightforward accounts. Imperial PFS is one of the top premium financing companies in terms of premium dollars financed and the top company in terms of accounts financed.
IPFS Premium Finance Program for IIABL
IPFS has partnered with the IIABL to become the endorsed provider of premium finance As a member of the IIABL your agency has been approved for enhanced interest rates. By working directly with a finance company, your agency & the Big I generate additional revenue.
Ability to collect the insured’s down payment via ACH or Credit Card directly through our system
Ability to collect premium in full, for your agency through our portal Cancellation warnings via text message & email, to your insured
Submit agreements electronically - no need to fax or scan in a signed PFA
The IPFS Connect mobile app - make payments, update account information, receive push notifications, and much more E-forms - electronic mailings to the agency & insured
Renewals pre-populate in our system, to save your staff valuable administrative time
Baylie Babin, CISR, CPIA
District Sales Leader
March 2023
Integration with most major agency management systems - prevents re-keying information & errors by automatically populating the insured’s information in our quote system via AMS and Applied systems
Extremely competitive rates and flexible terms
Agency revenue programs
Hold cancellation up to nine days
https://www.ipfs.com/about-premium-financing
IPFS Payments for IIABL – Collect Premium in Full
IPFS’ Payments Portal allows you to collect premium electronically from your insured, via ACH or credit card. Our service is free to your agency & inexpensive for your client. Embed a link on your website or signature for quick and easy payments.
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No cost to the agency
Cheaper transaction fees to your insured
Can incorporate a premium finance solution and a pay in full option, via one payment link
No transaction limit – your insured can run up to $1,000,000 at one time
Consolidated reporting, one less vendor report to reconcile
Can be set up to include co-branding or white labeling (all communication to the insured will also include agency logo/colors)
IPFS Cost
ACH - $3-$5 charge passed to insured
CC – 3.19% charge passed to insured
https://www.ipfs.com/payments
As an independent agent, your clients trust you to handle their insurance needs But who do you trust to handle your own agency’s professional liability insurance? We understand that protecting the future of your agency is a major priority, and that you simply want to place your coverage with the most respected program in the business.
As an IIABL member, you have access to the Big “I” Professional Liability program, the most respected and comprehensive program in the business offering a variety of insurance products that are hand-selected for their superior reputation and exceptional performance A Professional Liability Committee comprised of Big "I" members oversees the program, recommending program enhancements. The Big “I” Professional Liability program has provided a reliable E&O program for more than 20 years. With comprehensive rates and a long-term market, the Big “I” Professional Liability program is properly positioned to meet your professional needs, protecting not only the future of your agency but also your career.
Through a careful selection of industry-leading companies, our association is able to provide members access to top-notch products that are designed to make you more competitive in the insurance marketplace.
Just like you, the for-profit subsidiary of IIABL is an independent agency We are a distribution channel that supports the independent agency system. We offer:
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Since we’re your association, it’s our job to understand what it takes to operate an independent agency, and to know your specific risks and exposures. You trust us to represent your interests at the highest political level and as your association we also want to provide you with the security of knowing you are getting the best overall E&O value in the marketplace not just a policy, but a comprehensive program. Contact your E&O Administrator today and join more than 23,000 Big "I" members nationwide who are taking advantage of this important member benefit.
Will Jones
30 March 2023
Ongoing severe inflation, escalating claims costs, record natural disaster losses and skyrocketing capital costs are creating one of the most unstable property-casualty insurance markets in years, according to a number of studies released this week.
2022 was the eighth year in a row the U.S. suffered at least 10 catastrophes causing over $1 billion dollars in losses, according to a new white paper, “Hard Market Cycle Arrives: Inflation, Natural Disasters, and More Straining Property Insurance Markets," by the American Property Casualty Insurance Association (APCIA) and University of South Carolina Associate Professor Robert Hartwig.
Among other factors, losses were driven by U.S. inflation hitting a 41-year high of 8% in 2022, peaking at 9.2% last June. Meanwhile, the price of single-family residential home construction materials has climbed 33.9% since the start of the pandemic, while trade services are up 27%, APCIA reported.
“The U.S. property-casualty insurance industry is facing significant pressure from rising economic inflation, legal system abuse, supply chain constraints, increasing catastrophic weather driving up losses, and historic cost increases for reinsurance and other forms of capital," said Karen Collins, APCIA vice president, property and environmental. “The combined effects are resulting in the hardest market cycle in a generation."
“This unusual combination of challenges has created a perfect storm resulting in a significant deterioration in personal lines loss results in 2022, according to Fitch and S&P Global Market Intelligence," Collins said. “Commercial and personal property lines customers, particularly those in high-risk regions, may feel the effects of recent, elevated cost trends."
“The growth of population, housing, and businesses in hazard-prone areas are exacerbating the effects of climate change, leading to more frequent and severe catastrophe losses," Collins continued. “The higher costs of capital and reduced reinsurance capacity are further exerting upward pressure on insurance rates and may result in stricter underwriting in catastrophe-exposed markets."
Insureds in some markets are seeing premium increases north of 50%, creating problems for agents and insureds alike, according to the “2023 U.S. Property Market Outlook" by RPS, pointing to the recent reinsurance renewal period at the beginning of the year as having a major impact at a time when insurers were already facing cost pressures.
“The average insurance carrier that deploys catastrophe business is looking at 30% to 80% increases in its reinsurance costs," said Wes Robinson, national property president at RPS. “This would be tough to bear at the best of times, but with the recent pressure on underwriting results in the direct market, many insurers have no choice but to pass these increases on to their insureds."
The effects of the hard market are compounded by significantly worse key financial results for U.S. p-c insurers in 2022 compared to a year earlier, according to preliminary results from Verisk, a leading global data analytics provider, and APCIA.
The industry experienced a $26 9 billion net underwriting loss in 2022, more than six times the $3.8 billion underwriting loss in 2021, the report said. The underwriting loss was the largest the industry has seen since 2011. Also, net income fell to $41.2 billion in 2022, compared to $62.1 billion a year earlier a 33 6% decline
“The insurance industry is being hammered by increasing input costs, natural catastrophes, legal system abuse, and resistance in some states to adequate rates," said Robert Gordon, senior vice president, policy, research & international for
APCIA, in a press release. “Insurers suffered a 14.1% increase in incurred losses and loss adjustment expenses (16.6% in Q4), contributing to a more than $76 billion contraction in insurers' surplus at a time when loss exposures are rapidly growing."
“Hurricane Ian and the effects of inflation resulted in major losses for property insurers last year, while accident severity continued to plague personal and commercial auto lines," said Neil Spector, president of underwriting solutions at Verisk.
Underwriting losses pushed the combined loss ratio for p-c markets up to 104%, according to a preliminary estimate by AM Best, the APCIA report says. That was the first underwriting loss since 2007.
Global economic turbulence is also having an impact on market capacity. “After similarly suffering significant losses in recent years, broader
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capital markets have also been pulling back, impacting catastrophe bonds and insurance-linked securities," APCIA said. “With higher interest rates, investors have alternative investment options that may provide higher investment returns, while the strong dollar has also made global reinsurance much more expensive for U.S. insurers, further constricting domestic capacity."
“The last time we saw this level of capital dislocation was during the 2008-2009 global financial crisis. At the same time, the sector is experiencing its most acute, cyclical price increases since the 2001-2006 period if not before," said David Flandro, head of analytics at Howden, in the firm's latest report.
Howden separately noted that, for property catastrophe reinsurance which has been the hardest hit line this year the global rate-online index rose an average of 37%, the largest yearover-year increase since 1992.
For agents, the challenges facing the market mean that conversations around risk placement strategies are going to get much more difficult, the RPS report noted.
“These conversations need to be started early as early as possible really because renewals are becoming a much more complicated process," Robinson said. “Insureds need to be made aware that they will be facing increased premiums at renewal and they could be quite large in some cases."
“They need to be educated about the reasons for these increases, but most importantly, they need to be made aware of what to expect so they can plan accordingly," he added. “Bad news late is always worse than bad news early."
Will Jones is IA editor-in-chief.
Q: Mortgage lenders are requiring agents to supply a replacement cost estimate (RCE) for refinance closings. Is this something the agents should be doing? Is it an errors & omissions issue?
Response 1: First of all, in my opinion, an agent should never refer to any document generated by the agency as an RCE. If you are using a service to determine the amount of insurance required for eligibility by an insurer, you should refer to it in those terms.
If the insured wants to know the replacement cost at a point in time or if a lender wants to know replacement cost at a point in time, they should hire the appropriate professionals who purchase professional liability insurance for that purpose.
You must understand the potential liability in telling someone who is depending on your advice that something is true when it may or may not be.
Response 2: I wouldn't do it. There are many reasons, but the first among them is that it's private between you and your client. I'd tell the bank that such items are private. If the client prefers to provide them, that's between the bank and the client. Talk to your companies and E&O carrier to clarify your internal rules for RCEs.
Response 3: It certainly could be an E&O issue in certain circumstances. The lenders need to use their own method to verify replacement cost, which, by the way, is not directly related to property and real estate values. The best practice is not to share this information.
If you calculate the RCE using software you purchase, it may also be a violation of the licensing agreement, so check with the vendor. If you calculate the RCE using the carrier's software, check with the carrier to see if you have permission to release it. They may not want you to and it may be a violation of their software licensing agreement.
Response 4: Here is an E&O Guardian article that, although it's a bit old, is still on point: “The Price is Right Considerations for Avoiding E&O Claims from Property Valuations." It is a very bad idea to furnish RCEs to third parties. The value is up to your insured.
Response 5: The agent must supply relevant insurance information. Providing a cost estimate is not within the responsibility of the agent. The homeowner must seek an appraisal from a licensed person in this field of expertise. Be cautious about involving a bank appraiser's valuation. The bank will only be concerned with an amount necessary to cover the amount of the mortgage, not a replacement value.
Response 6: Ask your E&O carrier if you or the insurer are required to provide an RCE estimate when selling homeowners insurance. These days it is a common request by homeowners' lenders, which is funny because they appraise the property during the loan underwriting process but do that based on sale values without regard to RCE and shift that burden to others.
In my experience, the agents typically use the insurer RCE tools to satisfy the lender. Those estimates have disclosures that the homeowners carriers use as the minimum limit they will accept for homeowners coverage. It doesn't mean that is
the true replacement cost of the property. When there is an extended replacement cost provision in the homeowners policy, it gives them some comfort of a buffer limit.
Response 7: You are correct in thinking your provision of an RCE might give rise to an E&O exposure, given that the choice of limits is ultimately the insured's to make. Your role does not include being an estimator. Perhaps the carrier will be prepared to provide one to the insured, given their direct relationship, which your client can choose to accept.
This question was originally submitted by an agent through the Big “I" Virtual University's (VU) Ask an Expert service, with responses curated from multiple VU faculty members Answers to other coverage questions are available on the VU website If you need help accessing the website, request login information
This article is intended for general informational purposes only, and any opinions expressed are solely those of the author(s) The article is provided “ as is" with no warranties or representations of any kind, and any liability is disclaimed that is in any way connected to reliance on or use of the information contained therein The article is not intended to constitute and should not be considered legal or other professional advice, nor shall it serve as a substitute for obtaining such advice If specific expert advice is required or desired, the services of an appropriate, competent professional, such as an attorney or accountant, should be sought
A combination of severe events, increasing prices and supply chain-related issues conspired to make 2022 the worst financial year for homeowners insurance providers. This coupled with the strain on digital tools designed primarily to help the industry respond more quickly and efficiently has led to increased dissatisfaction among customers, according to a recent study by J.D. Power, the “2023 U.S. Property Claims Satisfaction StudySM."
“The p-c industry playbook for the past few years has been to invest heavily in digital solutions that streamline the claims process for customers, while reducing costs and improving efficiency for carriers," said Mark Garrett, director, insurance intelligence at J.D. Power. “However, the longer cycle times have made it increasingly difficult to keep customers informed via digital channels and limit their need to contact their insurer with questions."
The study, which is based on responses from over 5,000 homeowner insurance customers who filed a claim between December 2021 and December 2022, found that while the overall satisfaction rating for the industry improved 3 points (on a 1,000-point scale), eight insurers' rankings declined. Nine improved year over year.
Insurers with the largest increases in satisfaction were able to limit their customers' need to contact them for information, a key difference between brands that had improved scores and those that had declined, according to the study. Additionally, companies that had improved the most were also able to keep the interactions with their customers streamlined, with only one or two representatives involved.
The study also found that satisfaction is notably lower approximately 60-70 points when customers who have indicated a preference for interacting with their insurer via phone or inperson are compelled to use digital tools. Further, the average claims cycle time the amount of time from reporting the claim to finished repairs is now 22 days, more than four days longer than a year ago and a week longer than what was reported in the 2021 study. The delays are even longer for those with multiple payments.
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Customers say they received the final claim payment after 31.5 days on average, which is nearly a week longer than a year ago. The increases have been driven by a combination of damage severity and continued delays getting the materials needed to complete repairs.
Also noted in the report is that “the increase in severity has driven down digital claim reporting as lower-severity claims are more likely to be reported digitally," Garrett said. “In fact, this is the first year J.D. Power has ever seen declining use of digital claims reporting, digital used as a primary channel for status updates and for submitting photos that were used for the estimate."
“This is a worrying sign for the industry, as digital tools are apparently not meeting customer needs," he added.
Nevertheless, there are steps insurers can take to improve customer satisfaction for longer, more complex repairs, according to the study. These include offering options for receiving status updates; providing accurate claim length expectations; limiting customer-initiated requests for information; and making representatives immediately available.
IIABL 2022-2023
PRESIDENT, MICHAEL SCRIBER
PRESIDENT-ELECT, ARMOND K. SCHWING
SECRETARY-TREASURER, BRET HUGHES
NATIONAL DIRECTOR, JOHNNY BECKMANN, III
PAST PRESIDENT, DONELSON P. STIEL
YOUNG AGENT REPRESENTATIVE, KRYSTAL GATHE
ANN BODKIN-SMITH
MATTHEW DEBLANC
CHRISTY DESOTO
ROB W. EPPERS
MATT GRAHAM
CHRISTOPHER S. HAIK
STUART HARRIS
ROSS HENRY
CHARLES H. LEBLANC
CRAIG MARTEL
LYDIA MCMORRIS
A. EUGENE MONTGOMERY, III
JOE KING MONTGOMERY
HARTWIG "ROBBY" MOSS, IV
ROBERT LOUIS PALMER, JR.
RANDY PERISE
ROBERT G. RIVIERE
ROBERT STONE
Scriber Insurance - Ruston
Schwing Insurance Agency, Inc. - New Iberia
Hughes Insurance Services, Inc - Gonzales
Assured Partners - Metairie
David H. Stiel, Jr. Agency - Franklin
HUB International Gulf South, Ltd. - Baton Rouge
Thomson Smith & Leach Insurance Group - Lafayette
Continental Insurance Services - Marrero
1st Insurance of Marksville - Marksville
Risk Services of Louisiana - Shreveport
Lincoln Agency - Ruston
Higginbotham Insurance - Lafayette
McClure, Bomar & Harris, LLC - Shreveport
Henry Insurance Service, Inc. - Baton Rouge
Bourg Insurance Agency, Inc. - Donaldsonville
Insurance Unlimited of LA, LLC - Lake Charles
Alliant Insurance Services - Baton Rouge
Community Financial Insurance Center, LLC - Monroe
Thomas & Farr Agency, Inc - Monroe
Hartwig Moss Insurance - New Orleans
Insurance Underwriters, Ltd. - Metairie
Blumberg and Associates - Ponchatoula
Riviere Insurance Agency - Thibodaux
Stone Insurance, Inc. - Metairie