2010 CAAA Meeting 11 10 2010

10 Things to Review

Prior to Your Next

Renewal

Securities and investment advisory services are offered through

Securian Financial Services, Inc., member FINRA/SIPC. GCG

Financial, Inc. and Securian Financial Services, Inc. operate

under separate ownership. 102969 10/09

November 10, 2010

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Who is GCG Financial?

GCG Financial is a comprehensive financial

services firm offering a wide range of quality

financial products, insurance and employee

benefits programs to all types of businesses as well

as individuals.

With over 25 years of experience, GCG Financial

has built a tradition of “doing what is right” and

a trademark of “service that excels”

Our mission is to provide customized and

innovative solutions that enhance financial

security and create wealth.

To help achieve our mission, we provide the

resources, expertise and support necessary to

deliver outstanding service to our clients

We have over 30,000 individual clients and

4,000 corporate clients nationwide.

Ultimately, our success is measured by the

strength of our relationships.

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GCG Clients

It is not known whether the listed clients approve or disapprove of GCG Financial, Inc. or Securian Financial Services, Inc., or the advisory services

provided. These companies were selected randomly from our group clients with over a 100 lives.

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http://www.aflac.com/

http://www.dhha.org/Default.aspx

http://www.alliantcreditunion.org/home.php

http://www.aams.com/../../

http://www.wje.com/home.php

http://www.mbfinancial.com/

http://www.necdisplay.com/

http://feedingamerica.org/

Our Services

Personal fee-based Planning– Estate planning

– College funding

– Income protection

– Financial planning

Wealth accumulation– Mutual funds

– Annuities

– Investment Strategies

– Life insurance

Business Strategies– Succession strategies

– Key employee insurance

– Deferred compensation strategies

Employee benefits– Group: life, health, disability, dental

– 401(k)

– Executive compensation

Property/ Casualty Insurance– Property Insurance

– Worker’s Compensation

– General Liability

– Automobile

– Umbrella Liability

– Professional Liability

– Directors & Officers Liability

– Claim and Loss Control Services

– Surety Bonds

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10 Things to Review Prior to Your

Next Renewal

• John Elder is the Manager of Client Services & Brokerage at GCG Risk Management

Consultants, LLC, which is the Property & Casualty arm of Bannockburn, Illinois-based

GCG Financial, Inc. His responsibilities include the analysis of commercial programs,

brokering and negotiation with insurance carriers, proposal preparation and sales.

• Prior to joining GCG, John served as the Practice Leader of Risk Management Services for

HUB International Midwest, Ltd. in Chicago. He has true passion for the Property &

Casualty Insurance industry and a penchant for forging and leveraging interpersonal

relationships. He is a natural collaborator who is constantly moving toward optimal

performance and profitability.

• John understands insurance brokerage culture on its deepest levels and possesses vast

experience in securing and managing high-revenue accounts. His signature leadership style

is a composite of facilitation, delegation and supremely perceptive team building. He excels

in product knowledge, sales, marketing strategies, underwriting issues and administrative

functions. John thrives on the responsibility that accompanies high-end client management

and provides trusted and prudent counsel in all related affairs. From initiation to follow-up

and beyond, John delivers unparalleled customer service at every touch point.

• John graduated from Lewis University in Romeoville, Illinois with a B.A. Degree in Business

Administration. He has held a State of Illinois Insurance Producer License since 1978. Since

1985, he is an Accredited Adviser in Insurance. 5


Next Renewal

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Next Renewal

While insurance to most of you is a necessary evil,

our industry provides the protection you need;

If you have purchased the correct coverage.

Now is the time to review your program!

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Next Renewal

1. Protecting Client, Customer (and Employee’s) data,

it’s the law– Data breaches can be either electronic or paper

• Lost thumb drive, laptop, or even member records /files

– How much information do you have on your employees, member,

vendors?• Social Security number; Drivers License Numbers; Credit card/Debit

– Notification costs for a breach are large ($135-150 per record on

average)• Now required in 47 States

– Remediation (Credit repair services & litigation)

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Next Renewal

2. Don’t automatically Renew your coverage– Carriers send out renewal policies and invoices

– Clients are not apt to meet about insurance, so coverage is often

renewed as is

– Brokers often don’t review changes to operations and advise the

insurance coverages which are available

– Brokers become less consultative and more transactional, getting

renewal done

– Insurance reviews/audits are becoming a part of the past…

– Take the time to do it right.

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Next Renewal

3. Many clients make the mistake of buying Crime

coverage in their Property package (Discovery

issues)

– In the property package policy discovery is “Loss Sustained”

• Covering only losses occurring and reported during the policy

period

– Stand-alone policy (included in Management liability packages)

discovery is “Loss Discovered”

• Which covers losses up to the policy limit for losses covered for

as long as you have had the coverage. This covers losses over

multiple years

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Next Renewal

4. Know your experience and have it at hand

– You are who your losses say you are, make sure you have your

loss history

– Have current loss runs, So you are prepared, should your

situation change

• Ill law requires the carrier to advise you 60 days in advance if your pricing is

going to change more than 29%

– Actual losses tell your story; if your capital, maintenance, and

safety programs are working

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Next Renewal

5. Remember that Property values are your

responsibility.

– Do you have an appraisal, when was it last updated?

– Historical Properties cannot be insured at replacement cost

• Replacement is New (Drywall) for old (Lathe and Plaster)

• Old world craftsmanship is hard and expensive to replicate

• Insure it the way you want it!

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Next Renewal

6. Child care and summer camps can increase your

risks. Are you prepared/insured?

– Does your club allow one staff to be alone with minors?

– Do you perform background checks?

– How much sexual misconduct coverage do you have, or is it

excluded?

– If this is an exposure are you insure? What are the limits?

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Next Renewal

7. Are you getting certificates from those coming on

premises to perform services

– Painting, rodent/insect control, roofing, HVAC, arbor care, kitchen

maintenance

– If you don’t have their certificates with adequate limits then they

are sharing yours. Also your carrier will want additional premium

dollars at audit for workers’ compensation exposure

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Next Renewal

8. Fine Arts – Insuring the clubs treasures, what do

you need to consider?– Most clubs have accumulated large art collections (trophies, etc…)

• Is the property on loan to you? Or all owned by the club?

• Who is responsible for the insurance on the Loaned pieces?

• Do you know how much the historic mural in the Grand ballroom or entrance way

is worth?

• Does your appraisal cover these pieces?

• Does your policy provide adequate coverage/limits

• Is there any art stored off premises? Are you covered?

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Next Renewal

9. Employee Benefit Liability/ Fiduciary – Which if

either do you have?

– Does your general liability policy cover administrative mistakes

made in your benefit plans? • This coverage is called Employee benefit Liability

– Does the club have a 401K or pension plan?

– Do you know that the fiduciaries of the plan (Officers and board

members) are personally liable thanks to ERISA?

• If you buy Fiduciary coverage you transfer this exposure, for minimal cost

• If you have both Fiduciary and EBL you are paying double

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Next Renewal

10.Do you know what the NCCI Experience

Modification does for you?

– Do you know what your experience Modification is?

– Mods below 1.00 are better than average

– Mods over 1.00 increase your costs

– Your modification factor is driven by frequency of claims over the

last three years not counting the current year

– The loss you had last year stays with you for three years

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10 Things to Review Prior to

Your Next Renewal

Take the time to do it right –

Know your coverages and exclusions

Thank you for your time tonight

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Contact Us

GCG Financial, Inc.

3000 Lakeside Drive

Suite 200 South

Bannockburn, Illinois 60015

(847)457-3000

www.gcgfinancial.com

Corporate HeadquartersGigi Verrey, CLU, ChFC, CLTC

Senior Associate

847-457-3075

[email protected]

Additional Locations:

Denver, CO

Bloomington, IL

Glen Ellyn, IL

Oak Brook, IL

Springfield, IL

John Elder

Manager of Brokerage & Client

Services

847-457-3221

[email protected]

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http://www.gcgfinancial.com/

2010 CAAA Meeting 11 10 2010

Economy & Finance

Transcript of 2010 CAAA Meeting 11 10 2010