IRMI Update—Issue #56
An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
January 7, 2003
In This Issue
Colleague,
My industry friends tell me that January 1 renewals were challenging, but
the market seems to be stabilizing. While rates are increasing, the rate of
increase has generally leveled off. For some middle market accounts, rate increases
are even offset by decreases in exposure bases, such as payrolls. However, umbrella
and excess coverage placements can still be problematic.
There is much confusion in the market with respect to terrorism coverage.
Small and midsized accounts with little exposure are often having terrorism
coverage thrown in at no charge. On the other hand, larger accounts or those
with some perceived exposure may see a charge of anywhere from 3 percent to
100 percent of the property premium. Insureds are having difficulty deciding
what is and isn't covered under the proposals and whether it is worth the premium
being quoted.
In the next issue, I'd like to share some renewal and terrorism coverage
experiences. What challenges have you faced and how have you dealt with them?
How bad were your premium increases? Did the added burden of issuing terrorism
quotes to existing accounts make the workload unbearable for January 1 renewals?
Has the pricing of terrorism coverage seemed "reasonable" or are some markets
being opportunistic? Are companies buying it? [See reader comments.]
If your January 1 renewal has you wishing you were in the alternative market,
or you are thinking it might be the place for your upcoming renewal, consider
attending "Captive Insurance Solutions for the Middle Market."
All of us at IRMI wish you a happy, healthy, and prosperous 2003.
Best regards,
Jack
Jack P. Gibson
President
IRMI
Avoid January 1 Renewal Dates—We have long
advised against using January 1 to renew your insurance policies because agents,
brokers, and underwriters have so many accounts renewing on that day (and many
reinsurance treaties also renew then). You just aren't going to get the personal
attention you can receive at other times of the year. The problems many people
encountered this year certainly ratify our suggestion. I'm told that the first
day of any calendar quarter is now a busy time for insurance professionals,
so you may be wise to choose the beginning of an off month, and definitely avoid
July 1.
Source: Derived from one of the recommendations in
101 Ways To Cut Your
Business Insurance Costs.
Suggest a Risk Tip. Send us a practical tip (less than 300 words) for identifying and managing risks,
buying insurance, managing claims, or filling gaps in insurance coverages. We'll
acknowledge your contribution and include your e-mail address.
There are now 374 articles on IRMI.com, and many more are in production.
Below you'll find summaries of some recent additions with links to the articles.
The Terrorism
Risk Insurance Act Of 2002—IRMI's Jeff Woodward looks at the new
Act and answers the questions: What are the significant provisions of the Act?
How will the language of standard property/casualty policies be shaped by those
provisions?
Will A Captive Work For Your Company? This Seminar
Will Help You Decide—The popular 2-day seminar, "Captives Insurance Solutions for the Middle Market," is back by popular demand! Learn how wholly owned, group, and rental captives
work and whether they can provide the help you need to solve your insurance
dilemma. This seminar receives such rave reviews we guarantee your satisfaction.
The seminars are scheduled for Las Vegas February 19-20; Chicago February 25-26;
and New York City March 4-5, 2003. Learn more about the seminar band our guarantee
by calling (800) 827-4242.
If you wish to propose a workshop or other session for the 23rd IRMI Construction
Risk Conference (to be held November 17-20, 2003, in Chicago) please send us
your submission by February 1. For more information, go to this Conference page.
How to Control Insurance
Costs—The third edition of 101 Ways
To Cut Business Insurance Costs without Sacrificing Protection is a virtual
how-to guide of cost-cutting strategies for every major line of coverage. Coauthor
Bill McIntyre says, "To control costs in hard markets like these, you have to
get back to basics. For example, you need to make sure your classifications
are right and check your experience modifier, and this book explains how you
can do it." The cost is only $34.95, and it will save you much, much more on
your next renewal.
Paul Siegel, an employment
law and litigation partner of Jackson, Lewis, Schnitzler & Krupman, writes the
employment law column for IRMI.com. He became an Expert Commentator in March
2000 and has written 12 articles dealing with all aspects of employment law,
including the Americans With Disabilities Act, arbitration, military leave rights,
OSHA ergonomics standards, and most recently the Sarbanes-Oxley Act. Click here for a list of all Mr. Siegel's IRMI.com articles. Read his biography for more information
on Mr. Siegel and his firm.
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