INSIDE - Professional Insurance Agents NE IA Magazine/2017_08_WINAug_17_web.pdfCome the end of...

Cover Image: Phil Roeder, Balloons & Corn, Iowa August 2017 | Published Monthly

SPECIAL REPORTTaxes — Next Up for

Republicans » 7

A Prediction: The End of Insurance & a Reason

That’s Not Right » 19

Wells Fargo’sInsurance Scandal » 26

Are You Holding Your Customers Accountable? » 28

INSIDE

Farmers Seminar 2017Tuesday, September 26, 2017

Details » 19

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Did you know that PIA’s company council, The PIA Partnership, has conducted nationwide research about the insurance buying preferences of small business owners?

The research is encouraging because it found that small business owners strongly prefer independent insurance agents as they make choices in today’s online world.

However, the results also serve as a wake-up call that agents must take steps to continue to demonstrate their value and also be more engaged online.

PIA and the companies belonging to The PIA Partnership have created a public website that helps agents understand PIA’s findings.

PIA members also have access to a private website containing a series of strategies and tools to help them stay ahead of online competition in commercial lines.

To access the newest PIA Partnership project, Small Business Insurance & The Internet — The Voice of the Commercial Lines Customer, visit us at www.pianet.com/voiceoftheclcustomer.

If you are not a PIA member and want to access all of the tools available through this program, contact us for a membership application or visit us online at www.pianet.com/joinpia.

National Association of Professional Insurance Agents400 N. Washington St., Alexandria, VA 22314-2353www.pianet.com | [email protected] | (703) 836-9340

http://www.pianet.com/voiceoftheclcustomer

http://www.pianet.com/joinpia

August 2017 | Main Street Industry News | www.pianeia.com | 4

PIA NE IA EVENTS

Special Report: Taxes — Next Up for Republicans | 7Healthcare reform and the repeal and replacement of the Affordable Care Act is pretty much dead for now. There may soon be an attempt at a bipartisan solution but as for now, it’s dead.

Pushing the Limit: NFIP Renewal | 11The Senate and the House are both looking at bills to renew the National Flood Insurance Program (NFIP).

ObamaCare:Insurance Support Now the Worry | 14President Trump is unhappy with Senate Republicans over their failure to pass even the “skinny” version of the repeal and replacement of ObamaCare. And when they refused to give it another shot, Trump tweeted that the party’s leadership are “total quitters.”

A Prediction: The End of Insurance & a Reason That’s Not Right | 19Nick Spooner is a technology expert working with PricewaterhouseCoopers (PwC). In a blog, he posted on the Financial Standard, Spooner said insurance could soon become obsolete.

Regulations, Business and Insurance | 21Just before leaving office President Obama’s administration changed the nation’s overtime rules and extended mandatory overtime pay to 4.2 million workers it said were not being treated fairly. It was blocked by a federal judge in December of last year.

Another Reason for an NFIP Fix | 22Come the end of September the National Flood Insurance Program (NFIP) expires. Both houses of Congress are working on renewal plans.

Wells Fargo’s Insurance Scandal | 26Wells Fargo is in deep trouble. This time instead of a credit card scandal, it’s insurance. Workers at the bank forced an estimated

2.1 million customers who purchased an automobile to pay for unnecessary insurance.

GEICO and Bad Faith:Insurance Organizations Concerned | 27The claim comes from a 2006 case. A GEICO customer was in a fatal car crash. The policyholder — James Harvey — had a $100,000 policy.

Commercial Lines — Looking Better | 27IVANS — a division of Allied Systems — tracks insurance rates. It found July figures for most commercial lines — while down from June — stayed in positive territory.

Are You Holding Your Customers Accountable? | 28Is a lack of customer accountability an issue in your agency? Do you ask yourself “Why is it always our fault when a customer has a loss that is not covered? They knew that they didn’t have that coverage.”

ADVERTISEMENTS

Contact us to place an ad. Cathy Klasi, Executive Director (402) 392-1611

Farmers Seminar 2017: Tuesday, September 26, 2017 | 19

Upcoming Events Calendar 2017 | 32

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9-A-2496 Ed. 10-15

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quick, your people professional, and you immediately provided

me relief from a stressful allegation. Thank you.”

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of improvement. The di-rection given by Company representatives was great.

The attorney was first class all the way.” Great Lakes Region

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PIA Association for Nebraska and Iowa is committed to focusing its resources in ways that cast the most favorable light on its constituents. We are dedicated to providing the type of programs, the level of advocacy, and the dissemination of information that best supports the perpetuation and prosperity of our members. We pledge to always conduct ourselves in a manner that enhances the public image of PIA and adds real value to our members.

Professional Insurance Agents NE IAAttention: EditorialMain Street Industry News920 S 107 Avenue, Ste. 305Omaha, NE 68114

Email: [email protected]: 402-392-1611www.pianeia.com

The PIA NE IA, Main Street Industry News reserves the right to edit your comments to fit space available. We respectfully ask that you keep the comments to 200-300 words.

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TOP STORIES

Healthcare reform and the repeal and replacement of the Affordable Care Act is pretty much dead for now. There may soon be an attempt at a bipartisan solution but as for now, it’s dead.

Now it is on to the second of the Republican Party’s top two priorities for this Congress and that they want done before the mid-term elections. It’s tax reform. If you’re wondering why that didn’t happen simultaneously or first, the leadership of the Republican Party and the president took on ObamaCare first because it has taxes in it that Republicans want gone and part of tax reform includes doing away with them.

Thus, ObamaCare was the first priority.

The PIA wants tax reform for independent insurance agents and for small business. The association supports the creation of a clear and simple tax code and one that reduces tax rates for small businesses.

On its webpage in Government Affairs, PIA National wrote, “Small businesses have been the backbone to this country’s economy for over 250 years; they stimulate the economy by creating jobs in our local communities and have a history of pulling this country

SPECIAL REPORT Taxes - Next Up for Republicans

out of recessions. Despite these significant contributions, they are hampered by overly burdensome laws and regulations.”

And that burden isn’t just at the federal level. State and local taxes are equally burdensome.

PIA Advocates for Independent Agents by:

• Supporting legislation in Congress to decrease the corporate income tax rate for small businesses.

• Working with Congress, the Small Business Administration (SBA) and the Internal Revenue Services (IRS) to create a simpler tax structure and eliminate unnecessary complexities to create a system that is clear and competitive.

• Monitoring the activities of the IRS and the SBA to ensure that the voices of small business owners are being heard before any changes are made to current tax code

A group called the Big Six has put together the basics of tax reform and both houses of Congress will now go about writing a plan.

Big Six:

• House Speaker Paul Ryan• Senate Majority Leader Mitch McConnell • House Ways and Means Committee

Chairman and Texas Republican Rep. Kevin Brady

• Senate Finance Committee Chairman and Republican Sen. Orrin Hatch of Utah

• Treasury Secretary Steven Mnuchin • White House National Economic Council

Director Gary Cohn

Ryan claims this agreement of principles is supported by the House, the Senate and the president. Basically, they are to:


TOP STORIES

• Make taxes simpler, fairer, and lower for hard-working American families

• Reduce tax rates as much as possible• Lower tax rates for small businesses so

they can compete with larger ones• Incentivize taxes for corporations in a way

that profits are brought back into the country

The Big Six announced the agreement on principles at a news conference late last week. They’re pleased with the results and said for the first time in years the people of the U.S. have elected a Congress and a president that can get tax reform done.

“We are all united in the belief that the single most important action we can take to grow our economy and help the middle class get ahead is to fix our broken tax code for families, small business, and American job creators competing at home and around the globe. Our shared commitment to fixing America’s broken tax code represents a once-in-a-generation opportunity,” the group said in a statement.

Families — the principles state — are at the heart of the reforms and so is small business.

“We also believe there should be a lower tax rate for small businesses so they can compete with larger ones, and lower rates for all American businesses so they can compete with foreign ones. The goal is a plan that reduces tax rates as much as possible, allows unprecedented capital expensing, places a priority on permanence, and creates a system that encourages American companies to bring back jobs and profits trapped overseas.”

The Big Six believe they have come up with a good balance, “And we are now confident that, without transitioning to a new domestic consumption-based tax system, there is a viable approach for ensuring a level playing field between American and foreign companies

and workers, while protecting American jobs and the U.S. tax base.”

The group expects the reforms to come out of committee quickly, “Our expectation is for this legislation to move through the committees this fall, under regular order, followed by consideration on the House and Senate floors. As the committees work toward this end, our hope is that our friends on the other side of the aisle will participate in this effort.”

Will the Republicans actually reach across the aisle? And will across the aisle actually reach back? That’s not likely. Speaking for the Democrats, Oregon Sen. Ron Wyden scoffed at the proposal and called it another set of vague ideas that benefit the rich. “Republicans are dripping tax ideas out like a leaky faucet with no specifics to back them up,” Wyden said.

It doesn’t appear anyone is in the mood to do anything bipartisan. Neil Bradley is the chief policy officer of the U.S. Chamber of Commerce. He said members of the House and Senate tax-writing committees will meet this month at the Reagan Ranch in California to begin drafting specifics and he is going to give a speech at the event.

Brady was asked if any Democrats would be there. Without hesitation he said, “No.”

The Chamber and other business bodies large and small want the reforms and are totally frustrated with the speed at which Congress is not getting the job done. “The engagement and enthusiasm for pro-growth tax reform from Trump administration officials and congressional lawmakers is what will propel this over the finish line,” Bradley said.

On the insurance side of the equation, Evan Greenberg — who heads Chubb — wants to see tax reform sooner rather than later. He is also calling for open trade and significant

TOP STORIES TOP STORIES

investment in the infrastructure. At Chubb’s second quarter earnings phone call, Greenberg challenged President Trump and Congress to get the job done.

“My views remain as they were. For our country, and for our economy to reach its full potential — which it is not right now — we need tax reform. We need infrastructure,” he said.

Greenberg called the state of our infrastructure shameful and says it puts the U.S. at a competitive disadvantage. That disadvantage, Greenberg said, is in a sort of a tax on us as other nations like China are making significant investments in theirs.

“An awful lot of this requires legislation. We need an administration that is focused, that is working with Congress, and we need a Congress that comes together to address these issues for our country,” he said.

That urgency is shared by Heidi Ganahl who is the CEO of the world’s largest dog-care franchise, Camp Bow Wow. “Politically, tax relief is the issue that can unite the factions of the Republican Party and even attract some Democrats, so it stands a better chance of passing than divisive issues like healthcare reform. This is vital for Republicans who need a win now.”

Bradley’s boss at the U.S. Chamber of Commerce and its CEO Tom Donohue just sent an open letter to Congress and all those aspiring to win a seat in the near future. He said failure is not an option. His organization has teamed with the Business Roundtable, the National Association of Manufacturers (NAM) and the National Federation of Independent Business (NFIB).

They, too, have sent a letter.

Former House Speaker Newt Gingrich is

working with a coalition of small business groups — Job Creators Network (JCN), FreedomWorks and the American Legislative Exchange Council (ALEC) — wanting tax relief and the U.S. Chamber of Commerce is also leading a push.

They want something done by Thanksgiving that looks like tax cuts for business, middle-income Americans and repatriation for large businesses so billions in profits offshore can be brought back into the country and put to work.

“I’m optimistic we might be able to get a pretty good consensus on tax cuts and get it passed and signed by Thanksgiving. If we don’t do something like that, we are in real trouble, and we have a real chance of having Nancy Pelosi as the next of Speaker of the House,” Gingrich said.

Small business — says a survey done by JCN — views tax reform as a very high priority and an even higher priority than ObamaCare repeal.

• 48.6% said tax cuts will help more than healthcare reform

• 8.6% want regulatory relief • 70% of the 500 small business owners

polled said they’d reinvest savings and give wage hikes to employees, hire new employees and expand

• Of those reinvesting, 23.8% will make capital investments

• 20.8% will raise wages for current employees

• 13.8% will make new hires• 8.8% will open new outlets• 31.4% said they’d pay off debts

And what is the biggest obstacle for tax reform?

• 26% say Democrats in Congress are the biggest obstacle


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• 5.2% blame Republicans• 11% blame President Trump• 20.2% say a biased media is also an

obstacle

JCN President and CEO Alfredo Ortiz said, “This poll confirms what economists have long known. If you want to create an economic revival on Main Street, then give tax dollars back to small businesses and they will make it happen by reinvesting in jobs, wages and infrastructure.”

Former Best Buy CEO Brad Anderson says the JCN survey is right on target. “It was great

to see from JCN’s poll that nearly one-quarter of small-business owners would use their tax savings to raise wages for their employees. This demonstrates that a tax cut wouldn’t just help businesses and the economy, but it would also address stagnating wages that are preventing Americans from keeping up with increasing healthcare, housing and other costs.”

By the way, the goal of the former Speaker — and his small business comrades — is to create a sense of urgency. This may just do that.

Sources: Forbes, PIA National, The White House, Carrier Management, The New York Times, The Hill

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The Senate and the House are both looking at bills to renew the National Flood Insurance Program (NFIP). PIA National likes the Senate bill but refuses to support what may come out of the House.

In a statement on NFIP reform, PIA National said, “The National Association of Professional Insurance Agents appreciates the work done by Senate Banking, Housing and Urban Affairs Committee Chairman Michael Crapo (R-Idaho) and Ranking Member Sherrod Brown (D-Ohio) on their bill, the National Flood Insurance Program Reauthorization Act of 2017 (S. 1571), which is currently before the committee. This initial legislation is an auspicious start in light of the fact that it provides a long-term reauthorization of the National Flood Insurance Program and has left untouched the Write Your Own (WYO) reimbursement rate for insurers, maintaining agent commissions.”

As for the House bill? PIA National is in strong opposition to the bill “passed out of the Financial Services Committee because it

NFIP RENEWAL

arbitrarily cuts the WYO rate, which is used by carriers to pay administrative expenses as well as agent commissions, among other things. Most WYOs have acknowledged that, for them to remain in the program, they will be forced to pass any cut to the WYO rate on to agents in the form of cuts to agent commissions.”

PIA National Vice President of Government Relations Jon Gentile said PIA will remain opposed to any legislation that cuts the WYO rate without robust protections for agents.

“We applaud this first step by Chairman Crapo and Ranking Member Brown to reauthorize this critical program used to protect against floods. PIA will now continue to work with members of the committee to supplement the bill by supporting efforts to expand the private flood insurance market, enhance mitigation programs and improve the claims process for policyholders, and include provisions meant to recognize the essential role independent insurance agents play in delivering this critical and often misunderstood program to consumers,” Gentile said.

Pushing the


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One thing that is certain, the NFIP reauthorization needs to happen before September 30th of this year. The looming deadline has the National Association of Insurance Commissioners (NAIC), the PIA and other insurance, realtor and economic groups concerned.

The NAIC does — however — like the House Flood Insurance Market Parity and Modernization Act because it gives those buying private flood insurance the same treatment by federally-backed mortgage lenders as those purchasing insurance from the NFIP.

NAIC President and Wisconsin Insurance Commissioner Ted Nickel said, “It is important to maintain a stable program to provide certainty for policyholders while also encouraging greater growth in the private flood insurance market as a complement to the NFIP. State insurance regulators support this legislation because it provides consumers with more options for coverage which could lead to more affordable prices.”

Other groups want reforms, too. For one, the number of properties in flood dangerous areas has jumped by 67% in the last 20-years. Or so says Evan Hecht who is the president of The Flood Insurance Agency — and agency that specifically sells flood insurance. Worse, Hecht said, “The number of properties that have had a third loss has increased 56%.”

He made that statement at a recent CAT Risk 2017 Masterclass held by Insurance Business America.

The Federal Emergency Management Agency (FEMA) administers the NFIP and it defines repetitive losses as:

• A property that has two or more claims of $1,000 or more over 10 years is repetitive

• A property with four claims of more than $5,000 each is called severe repetitive

• Two claims equaling the total of a building’s current value is also severe repetitive

Emergency Management Magazine says currently we have 11,000 severe repetitive-loss properties in the U.S. That number is growing. The NFIP says they account for 30% of the claims of its five million active policies.

FEMA task force member Joe Rossi — who chairs the Marshfield and Massachusetts Coastal Coalition — said, “These properties give the program a bad name, when the program was designed so no-one could be labeled non-renewable. The rates for these structures are significantly higher; they don’t get off scot-free. There are penalties.”

Another group wanting a say in how renewals are handled is the Natural Resources Defense Council (NRDC). It wants residents and homeowners to move to safer areas or not build in those areas at all.

NRDC head Rob Moore said for every $100 the NFIP and FEMA spend to repair and rebuild flood damaged homes, they spend $1.75 to move people to less flood prone areas. “Many of those homeowners would probably prefer to relocate somewhere where flooding is no longer a part of their life, and that would also save … the expense of having to rebuild these properties,” Moore said.

He’s suggesting a buyout be part of a flood policy if the owners don’t want to rebuild and Moore contends that will save the NFIP money in the long run.

Sources: PIA National, Business Insurance, Insurance Business America

PIA of Nebraska & Iowa(402) 392-1611www.pianeia.com


http://www.pianeia.com


TOP STORIES

President Trump is unhappy with Senate Republicans over their failure to pass even the “skinny” version of the repeal and replacement of ObamaCare. And when they refused to give it another shot, Trump tweeted that the party’s leadership are “total quitters.”

He’s also pushing Senate Majority Leader Mitch McConnell to get rid of the 60-vote rule that kept the bill from passing and said they all “look like fools and are just wasting time.”

Without the 60 vote rule the “skinny” plan would have passed — easily.

Trump is being ignored. Sen. Jeff Flake of Arizona blasted the president and said that rule is important. “I don’t want to lurch back and forth every couple of years from one extreme to the other. Those rules are there for a reason. They’re good. ... They invite us to work across the aisle,” Flake said.

The Senate’s number-two Republican Texas Sen. John Cornyn said don’t leap to conclusions. Something could yet pass. Just not now.

Here’s the worry now according to Tennessee Republican Sen. Lamar Alexander who chairs the Senate Health Committee. It’s worry about the state of the nation’s insurance markets.

“Tennessee’s state insurance commissioner [Julie Mix McPeak] says our individual insurance market is very near collapse.

ObamaCareInsurance Support Now the Worry

Unless Congress acts, many of the 350,000 Tennesseans who buy health insurance in that market — songwriters, farmers, the self-employed — face the real prospect of having zero options to buy insurance in 2018 and 2019,” Alexander said.

It’s also deep on the mind of health insurers who wonder what the Trump administration is going to do. Health and Human Services Secretary Tom Price said on Sunday that “no decision’s been made.”

Yet insurers are remembering President Trump’s tweet on Saturday saying he’s thinking of ending the subsidies to insurers which help them help the poor afford insurance. “If a



new HealthCare Bill is not approved quickly, BAILOUTS for Insurance Companies and BAILOUTS for Members of Congress will end very soon!” the president said and he promised that ObamaCare will implode “and soon,” the president said.

That said, Price told NBC’s Meet the Press that the administration will follow the law of the land. Or will he? White House spokeswoman Kellyanne Conway told Fox News Sunday that the president is going to decide this week what he’s going to do and if he’s going to make the subsidy payments.

White House Budget Director Mick Mulvaney told CNN’s State of the Union, “I talked to the president at length about that exact issue yesterday. What he’s saying is, look, if Obamacare is hurting people, and it is, then why shouldn’t it hurt insurance companies and, more importantly perhaps for this discussion, members of Congress?”

Trump wants members of Congress and their staffs to lose the subsidies that keep them from having to purchase insurance on the ObamaCare exchanges.

This was written on Tuesday morning early so by now the president may have made that decision. If so, Weekly Industry News will have analysis of it next week. But we also know the president has a habit of bouncing this way and that on these issues.

Key Republicans — like Senate Finance Committee Chairman Orrin Hatch of Utah and House Ways and Means Committee Chairman and Texas Republican Rep. Kevin Brady — want the president to guarantee those payments. “For those trapped in Obamacare, we must continue to look for immediate solutions to deliver relief, stop premiums from soaring even higher, and help people get the health care that’s right for them,” Brady said.

Plus, it might not be — politically — a good move. The Kaiser Family Foundation did a poll on how the people feel about Trump cutting those funds and about Republicans working to hasten the demise of ObamaCare. It found 61% of us say they’ll be responsible for future problems.

Andrew Slavitt who is the acting administrator of the Centers for Medicare and Medicaid Services (CMS) is worried about the president’s comments and so are insurers and insurer groups. Slavitt said cutting off the subsidy payments “will be felt by the middle class who will pay more to subsidize low income.”

America’s Health Insurance Plans (AHIP) predicts a 20% jump if those payments are cut off. And it’s getting support from McConnell who said, “Bailing out insurance companies, with no thought of any kind of reform, is not something I want to be a part of.”

And at that, Senate Minority Leader Sen. Chuck Schumer put it all in perspective. “If the President refuses to make the cost sharing reduction payments, every expert agrees that premiums will go up and health care will be more expensive for millions of Americans, the president ought to stop playing politics with people’s lives and health care,” he said.

The Senate’s number three Republican Sen. John Thune of South Dakota says that’s just not going to happen. “I guess I’m hopeful that the administration, the president will keep making them and if he doesn’t then I guess we’ll have to figure out from a congressional standpoint what we do,” he said.

Cornyn agrees and said if Trump fails to act Congress will and the president will have no political choice but to sign the legislation.

In the end, the vote surprised no one and the outcome came about because of failure


A few days later he laid out some things Democrats want to start the process. “At the very beginning, we should stabilize the system. Make permanent the cost sharing, which keeps premiums low. That is what we should do initially. Then, we should sit down and trade ideas,” Schumer said.

Schumer says he’s already reached out to House Speaker Paul Ryan about bipartisan collaboration. But he’s also encountered some resistance from McConnell who says the Republicans still aren’t willing to pour money into a losing proposition. Schumer agreed and said, “There has to be a give and take. My colleagues and my caucus know that.”

House Minority Leader Nancy Pelosi has also indicated wanting to work with Republicans on solutions. “Democrats extend the hand of friendship, and look forward to our working together in the regular order for the good of the American people,” she said.

Pelosi has also insisted that President Trump get involved and cooperate in the working together process or stay out of it altogether.

Rep. Joseph Crowley of New York is the chair of the House Democratic Caucus. He said, “We have stood ready with ideas and thoughts about how we can mend or improve the Affordable Care Act. It is really incumbent upon them to come join us and bring us to the table.”

Sources: The Hill, The Washington Examiner, Insurance Journal, OregonLive.com, The Washington Post

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to reach across the aisle. Sen. John McCain who a couple of days before cast a vote that allowed debate wanted bipartisan support and bipartisan cooperation to solve the healthcare crisis in this U.S. but didn’t get it.

McCain along with Alaska Republican Sen. Lisa Murkowski and Maine Republican Sen. Susan Snow voted no and it is McCain who is being blamed for the failure to advance the bill. In his comments on why he voted the way he did, McCain said, “We must now return to the correct way of legislating and send the bill back to committee, hold hearings, receive input from both sides of the aisle, heed the recommendations of nation’s governors, and produce a bill that finally delivers affordable health care for the American people.”

McCain and other Republicans — and the Democrats — blasted the way McConnell went about putting the various versions of the Senate bill together. Much of it was done behind closed doors with the majority Republicans learning of what was going on at lunch meetings and in other after-the-fact ways.

With the failure to advance the bill to a conference committee with the House, McConnell said he’s done and it’s time to move on, “What we tried to accomplish for the American people was the right thing for the country I think the American people are going to regret that we couldn’t find another way forward. Now I think it’s appropriate to ask, what are their [Democrat] ideas? It’ll be interesting to see what they suggest as the way forward.”

Schumer said he’s willing to work with Republicans and believes there is a “thirst” among them to work with Democrats. After the vote, he told McConnell and the Senate, “We are not celebrating. We’re relieved. Let’s turn the page and work together to improve our health care system.”

Stay tuned. This controversy and the push to reform,

replace or repeal ObamaCare isn’t close to over.

TOP STORIES

fmne.comAndy Kraus, CPCU | Vice President of Agencies | 800.742.7433 | [email protected]

FARM SEMINAR 2017

Featuring Bob Fulwider

Tuesday, September 26, 2017 Holthus Convention Center

York, Nebraska

Program Propping Up Your Property Placements

10 Most Common Property Insurance Concerns

AND Ethics Awareness

in the Rural Marketplace Applied for CE/ETH credits.

Schedule 8:30am Registration Continental Breakfast 9:00am Seminar Begins 12:00-1:00pm Lunch 4:00pm Seminar Concludes Location & Accommodations Holthus Convention Center 3130 Holen Avenue, York, NE Hampton Inn 309 W. David Drive, York, NE 402 362-0222 Holiday Inn Express & Suites 4020 Grand Avenue, York, NE 402 745-6272 Discount Earn a 5% credit applied to your Utica premium. (10% max.)

Bob Fulwider has worked tirelessly throughout his career on behalf of independent agents at the state and national levels since joining the family insurance agency in 1973. He has served on the Executive Committee of Independent Agents and Brokers of Iowa, including as President and State National Director, and has chaired the Farm Agribusiness, Personal Lines, Market Development and Government Affairs committees. Bob represented IIABA on the USDA Commission to Improve the Federal Crop Insurance Program and was invited by President Clinton to represent IIABA at the National Rural Conference.

Register Online at PIANEIA.COM or complete information below:

____PIA Member $80 ____Non-PIA Member $95 All registrations include lunch

Name: ___________________________________ Agency/Company: _________________________ NPN: ____________________________________ Address: _________________________________ Phone: ___________________________________ Email: ___________________________________ Credit Card or Check #: _______________________ Exp. Date ________________ Security Code: _____ Name on Card _________________________________

Mail to PIA of NE IA 920 S. 107th Ave., Ste. 305, Omaha, NE 68114

402 392-1611


The End of Insurance anda Reason That’s Not Right

Nick Spooner is a technology expert working with PricewaterhouseCoopers (PwC). In a blog, he posted on the Financial Standard, Spooner said insurance could soon become obsolete.

At the very least, Spooner notes, it will become unrecognizable in the near future. “For hundreds of years, the insurance industry has been inert. Its processes and products worked; it simply didn’t need to change. Insurtech is changing that. As fintech is doing to banking, Insurtech, the digitization of insurance, is transforming the insurance industry,” Spooner wrote.

His prediction goes something like the Internet of Things (IoT) — that interconnection of all devices from our cars to kitchen appliances — will make us so safe we won’t need insurance. “Connected smart devices will lead to less risk and smaller losses. For example, smart water heaters and pipes will alert manufacturers to a potential rupture before becoming critical. Result? Fixed pipes, hot water, dry carpets and no need to claim.”

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Safer devices means the need for insurance goes away. “With less risk, the nature of insurance will need to change as traditional risk models cease to apply,” he added.

Apparently, Spooner hasn’t paid much attention to the danger of the Internet of Things. Stuart Madnick is a professor of all kinds of things at MIT. Earlier this year he wrote an article for Forbes and talked about the danger of the Internet of Things.

“Two years ago an internet-enabled refrigerator was commandeered and began sending pornographic spam while making ice cubes. Baby monitors have been turned into eavesdropping devices and there are concerns about the security of medical devices, such as computerized insulin pumps. In October, thousands of security cameras were hacked to create a massive Distributed Denial of Service (DDoS) against Dyn, a provider of critical Domain Name System (DNS) services to companies like Twitter, AirBnB, etc. Then there is the recent


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disclosure of CIA tools for hacking IoT devices, such as Samsung SmartTVs, to turn them into listening devices. These are only a few examples highlighting the threats,” he wrote.

Madnick said in 2016 there were 6.4 billion devices connected to the Internet of Things. By 2020 that figure will reach 20.8 billion. And Spooner doesn’t see the need for insurance or the danger and the risk of the Internet of Things?

In his article Madnick counters Spooner’s logic and says the IoT has lots of threats. “First, devices are taken over to do something they are not intended to do, like a security camera that becomes part of a botnet attack. But also, devices can be commandeered to do exactly what they are intended to do but in a devious way. Think of directing a self-driving car to drive off a bridge. Consider the cyber-attack on Iran’s nuclear enrichment centrifuges to make them rapidly speed up and then suddenly slow down (imagine pushing down hard on the accelerator, and then the brake in your car), which eventually seriously damaged them. That flummoxed operators who had never planned a response to prevent something like that because why would you do that in the first place?”

And Madnick says hackers continue to come up with new and creative ways to attack your IoT devices. There is a need for — in addition to better security measures by manufacturers — insurance and insurers.

“Cyber warfare is an evolving risk, but human nature is focused on the way things are supposed to work. This blinds us to the way things can be made to work. So how do you weigh the risk of something you’ve never seen before and something you’ve never thought of? It’s a cliché but I compare much of the approaches to addressing cyber security to people driving their car by looking through the

rear-view mirror. That is, what will happen next year is likely very different than what happened last year,” Madnick wrote.

He says the biggest risk of all is consumers not changing — regularly — the passwords on the devices they have that operate on the Internet of Things. He liked that to leaving your door unlocked or wide open when you leave the house. “By changing passwords and taking other steps, consumers can get a layer of protection. It doesn’t mean an attacker can’t get through a locked door, but it is just so much easier to get through an open door,” he said.

Sources: Insurance Business America, Forbes

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Regulations, Business & Insurance

Just before leaving office President Obama’s administration changed the nation’s overtime rules and extended mandatory overtime pay to 4.2 million workers it said were not being treated fairly. It was blocked by a federal judge in December of last year.

Opponents — 21 states and the U.S. Chamber of Commerce — told the judge it would force many salaried employees to become hourly employees as it doubled the maximum salary — to $47,000 — that a worker can earn and be eligible for mandatory overtime pay.

The U.S. Department of Labor appealed and has now decided to take comments on the rule. However, it also made it clear that it does not agree with the new threshold set by the Obama administration. The department wonders if the $23,660 amount put into place in 2004 needs to be updated. Inflation could be considered as could employer size, industry and other factors.

The appeal by the Trump administration and the Labor Department’s noting that it does not agree with the Obama rule has ticked off labor groups. One group — the National Employment Law

Project, a union-backed organization — said the Obama administration took 300,000 comments before setting the threshold at $47,000.

In another regulatory matter, the U.S. House of Representatives has voted to drop a new rule issued by the Consumer Financial Protection Bureau (CFPB) that lets the customers of banks and credit cards to sue in groups if they feel they are mistreated.

Current rules allow banks and credit card companies to put language into contracts that forbid consumers from filing suit and forces them into negotiation and arbitration if there is a disagreement.

The vote 231 to 190 was strictly along party lines.

The vote was taken under the Congressional Review Act which allows both the House and Senate to repeal rules with simple majorities. The Senate has yet to act but a similar vote is being considered.

Sources: Insurance Journal


Another Reason for a National Flood Insurance Program FixCome the end of September the National Flood Insurance Program (NFIP) expires. Both houses of Congress are working on renewal plans. Once each one passes, a conference committee will be needed to work out the final bill.

A new report just out from the Natural Resources Defense Council (NRDC) shows how complicated renewal will be and maybe how Congress and the NFIP are missing the proverbial — and no pun intended since it’s about flooding — boat.

The NRDC’s Seeking Higher Ground report says for every $100 the NFIP spends to rebuild homes that have been flooded — some have to be rebuilt quite often — it only spends $1.72 to help those with the insurance move to somewhere less prone to flooding.

The report calls on Congress to amend what it’s doing for the NFIP renewal to include dollars to relocate instead of — as the report puts it — flood, rebuild, repeat. Some homeowners, the NRDC contends don’t

want to rebuild. Spokesman Rob Moore said they want out but can’t get out because their insurance rebuilds only.

“Flood insurance traps homeowners in a situation no one wants to be in: forced to rebuild in a location that will inevitably flood again. It’s time to start helping people move to higher ground, rather than make them wait for the next flood,” Moore said.

The report also notes with global warming and the prediction of rising seas that the NFIP’s current $25 billion in debt could rise even higher with millions more in payouts because of the flood, rebuild, repeat method.

Points from the report that support the NRDC position:

• On its books the NFIP has over 30,000 homes with severe repetitive losses

• On average these properties have flooded five times

• They flood on average every two years• • 60% of the 30,000 homes are worth

under $250,000 • They account for just 0.6% of the 5.1

million homes insured by the NFIP• However, they take up 9.6% of all the

damages paid by the NFIP from 1978 to 2015

• That’s $5.5 billion total• Of those homes, 1 in 10 have received

payments that have exceeded — over the number of times claims were filed — the value of the home

The report also predicts future costs:

• Rising sea levels could cause 2.5 million properties to continually flood

• Those damages could cost the NFIP

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an additional $447 billion to repeatedly rebuild homes that ought not be rebuilt

• Over 500,000 of the 16 million homes in this category are worth less than $250,000

• It would cost $52 billion to $163 billion to buyout those properties

• Compare that to the $72 billion to $224 billion to repeatedly rebuild them

Louisiana, Texas, New Jersey, New York, Florida and — believe it or not — Missouri are the states with the most at risk properties that will be flooded and rebuilt and then repeated.

The NRDC wants Congress to reauthorize the NFIP with reforms that will make it easier for these property


owners and for the taxpayers who subsidize the rebuilding of these homes.

• Options should be put into place to let those homeowners move rather than rebuild

• Require the disclosure of flood histories to people purchasing homes in these areas

• Make more flood data available to the public so taxpayers know where most of the flooding is occurring, the cost to them for those damages and what communities are doing to minimize damage

• Flood maps should show potential rising seas

Source: PropertyCasualty360.com

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Wells Fargo’s Insurance Scandal

Wells Fargo is in deep trouble. This time instead of a credit card scandal, it’s insurance. Workers at the bank forced an estimated 2.1 million customers who purchased an automobile to pay for unnecessary insurance. Some of them could not afford the extra cost and it sent them into a financial space where the auto had to be repossessed.

The company fired 70 executives over the mistake.

All this comes a year after Wells Fargo settled a decade old suit over issuing credit cards customers didn’t want. The firm settled with regulator for $185 million.

A suit has been filed over this scandal which put 250,000 of the 2.1 million customers into delinquency and caused 25,000 vehicles to be repossessed. One of the plaintiffs claims the reason the insurance was put into place was to get a kickback from National General Holdings for placing the business.

The insurer has not been sued.

One of the lawyers involved is Roland Tellis.

He said, “The revelation of this latest breach of customer trust appears to fit right into the Wells Fargo playbook of dirty deeds, and sadly comes as no surprise.”

Senate Banking Committee Democrat Sen. Sherrod Brown of Ohio and House Financial Services Democrat Rep. Maxine Waters of California want Wells Fargo’s Chairman Stephen Sanger and CEO Tim Sloan to testify as to what happened.

Both have sent letters to the Wells Fargo execs. Brown’s said, “Members should have the opportunity to question Mr. Sloan about the bank’s progress in addressing the damage it did to its customers.”

Wells Fargo’s consumer lending head Franklin Codel said, “We take full responsibility for our failure to appropriately manage the CPI program. The bank has publicly promised that it will do better. Our actions over the past year show we are acting on this commitment.”

Sources: Insurance Business America, Insurance Journal, Carrier Management, PropertyCasualty360.com

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Commercial LinesLooking Better

GEICO and Bad FaithInsurance Organizations Concerned

IVANS — a division of Allied Systems — tracks insurance rates. It found July figures for most commercial lines — while down from June — stayed in positive territory. Only workers’ compensation took a dip and fell close to 1.4% below July of last year.

• Commercial Auto: Rose 3.28%. That’s up from 2.41% in June.

• BOP: Jumped 3.65%. That’s down from June’s 4.11%.

• General Liability: Went up 1.85%. That’s also down from June’s 2.22% increase.

• Commercial Property: Rose 2.45% but that’s down from 3.52% in June.

• Umbrella: Up 1.40% and that’s up from 0.97% at the end of June.

• Workers’ Compensation: Down1.41%. And that’s down 0.86% from June.

Matt Foran of IVANS said, “The latest IVANS Index figures show that premium renewal rate change across the industry remained consistent, with Commercial Auto and Umbrella premium renewal rate change experiencing the greatest positive increase while Workers Compensation continues to trend more negatively.”

Sources: Insurance Journal, PropertyCasualty360.com

The claim comes from a 2006 case. A GEICO customer was in a fatal car crash. The policyholder — James Harvey — had a $100,000 policy. Nine days after the collision, GEICO sent a check for that amount to the estate of John Potts who died in the accident.

The estate rejected the check and instead sued Harvey for wrongful death. A jury then ruled against Harvey and awarded Potts’ estate $8.47 million.

Harvey then sued GEICO and said the insurer blew it and acted in bad faith by not working with the estate’s attorney to get them information requested before the suit was filed. The estate attorney wanted to know about Harvey’s business and personal assets since working at the time of the collision.

The jury in Harvey’s case ruled against GEICO. That decision was then overturned by the 4th District Court of Appeal. The case is now before the Florida Supreme Court.

The American Insurance Association (AIA), the National Association of Mutual Insurance Companies (NAMIC), the Personal Insurance Federation of Florida and the Property Casualty Insurers Association of America (PCI) have filed an amicus curiae brief. The concern — say the groups and the insurers they represent — is a ruling against GEICO that could expose other insurers to “bad faith liability far beyond what has long been established by this court.”

In their petition the organizations said, “Plaintiff’s position would constitute a sea change that would degrade bad faith law such


that mere negligence in claims handling could constitute bad faith, even in the absence of any evidence that the insurer was acting in its own best interests or without due regard for the interests of its insured.”

Source: Insurance Business America


Are You Holding YourCustomers Accountable?

Is a lack of customer accountability an issue in your agency? Do you ask yourself “Why is it always our fault when a customer has a loss that is not covered? They knew that they didn’t have that coverage.”

This is one of the bigger frustrations among insurance agencies, making it an appropriate errors-and-omissions (E&O) objective to focus on.

An agency would be hard-pressed to hold customers accountable without a well-documented file. When an E&O claim happens, the E&O carrier will look to secure the actual file in question, whether it’s paper or electronic, to review what is in it. This file will also be available to the plaintiff’s attorney. Solid documentation will make the E&O carrier’s job much easier. This assumes that the documentation is prompt, accurate, and professional. A file with sketchy documentation could prove to be a challenge in an E&O matter.

Document and memorialize in writingTwenty-five years ago, when a client would call with a question or a decision on a coverage,

the agency standard was to document that discussion in the agency file. Nothing more, nothing less. Today, that is not enough. While these discussions should be documented in the system, they should also be memorialized back to the client in a written format — by email, letter, etc. Without some form of documentation that confirms or memorializes the discussion to the customer, it will be the agency’s word versus the client’s word if an uninsured loss has occurred. You might be surprised about what a client will say in such instances.

The goal is to address any potential misunderstandings between what the customer told you or thought they told you and what you heard. Simply documenting the conversation in the agency management system does not help to identify a misunderstanding.

Documentation to the customer should occur in a variety of circumstances. Here are some examples:

• The client was given a proposal, but does not say “yes” to all the coverages proposed. There should be clear documentation on which coverages were purchased and which were not. Wording can be as simple as “at this time, the following coverages have not been bound …” followed by the list.

• The client asks about how coverage would

by Curt Pearsall, CPCU, AIAF, CPIA, President, Pearsall Associates, Inc. and Special Consultant to the Utica National E&O Program

TOP STORIES


apply, such as “Mom and Dad are now in a nursing home and the house is vacant. What do I need to know?” The answers to such questions must be accurate and documented.

• The client has signed the completed application. The best type of documentation involves something with the insured’s signature on it. Holding a customer accountable is enhanced when an agency can get their signature on a document. In virtually all legal jurisdictions, a customer will be held responsible for the accuracy of the information in an application if they signed it. Be sure to have the client review the application before asking them to sign it.

• The agency provides a quality proposal to the client. This should include 1) a


variety of limit options, 2) definitions of key insurance terms, 3) specimen policies to allow your client to read the actual forms that will be part of their insurance coverage, and 4) a list of other coverages for the client to consider. Since it is not possible to list all coverages, the disclaimer should state “coverages include, but are not limited to, the following…”

• Interaction with customers involving key information.

An added benefitMake “enhancing customer accountability” one of your agency’s goals. In addition to better protecting your agency from E&O claims, you may find your agency writing more business as well.

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August 8, 2017 CISR: Insuring Personal Auto Exposures Des Moines Hilton Garden Inn Des Moines/Urbandale

August 9, 2017 CPSR: Systems, Operations & Procedures Omaha Hilton Garden Inn- Omaha

August 15, 2017 Certificates and Additional Insureds: Navigating the Maze (NE) NE/IA Webinar: 12:00PM - 3:00PM

August 17, 2017 Tricks to Fix: Closing Coverage Gaps in Home, Work and Auto NE/IA Webinar: 8:00AM - 11:00AM

August 17, 2017 FLOOD INSURANCE NE/IA Webinar: 12:00PM - 3:00PM

August 17, 2017 Tricks to Fix: Closing Coverage Gaps in Home, Work and Auto (NE)

NE/IA Webinar: 8:00AM - 11:00AM

August 21 - October 13, 2017

MERG: Commercial Lines Coverage Basics Online Online Course

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MERG: Make Your New Employee A Winner Online Online Course

August 22, 2017 CISR: Insuring Personal Residential Property Davenport Saint Ambrose University

August 22, 2017 CISR: Insuring Personal Residential Property Davenport Saint Ambrose University

August 22, 2017 Street Level Ethics (NE) NE/IA Webinar: 12:00PM - 3:00PM

August 23-25, 2017 CIC: Personal Lines Institute Cedar Rapids Cedar Rapids Marriott

August 23, 2017 Additional Insureds: The Quandry NE/IA Webinar: 12:00PM - 3:00PM

August 24, 2017 PIA Annual Scholarship Golf Outing Ashland Iron Horse Golf Club

August 24, 2017 How to be the Agent Advocate at Claim Time NE/IA Webinar: 8:00AM - 11:00AM

August 29, 2017 And the CHAOS Continues NE/IA Webinar: 8:00AM - 11:00AM

August 29, 2017 E&O Loss Prevention NE/IA Webinar: 12:00PM - 3:00PM

September 6, 2017 Regarding Ethics NE/IA Webinar: 1:00PM - 4:00PM

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September 13, 2017 CISR: Agency Operations Hiawatha Kirkwood Linn Regional Center

September 13, 2017 CISR: Agency Operations Hiawatha Kirkwood Linn Regional Center

September 13, 2017 Home Business vs. Home Insurance NE/IA Webinar: 12:00PM - 3:00PM

September 19, 2017 CISR: Dynamics of Service Des Moines Hilton Garden Inn Des Moines/Urbandale

September 19, 2017 Commercial Property Claims that Cause Problems

NE/IA Webinar: 12:00PM - 3:00PM

September 19, 2017 CISR: Dynamics of Service Des Moines Hilton Garden Inn Des Moines/Urbandale

September 20, 2017 Top 12 Coverage Countdown NE/IA Webinar: 12:00PM - 3:00PM

September 21, 2017 Man Vs. Machine NE/IA Webinar: 12:00PM - 3:00PM

September 26, 2017 Executive & Management Liability NE/IA Webinar: 12:00PM - 3:00PM

September 26, 2017 Farm Seminar 2017: Propping Up Your Property Placements & Ethics Awareness

York Holthus Convention Center

September 27, 2017 Commercial Liability Endorsements To Watch Out For


October 4 - 6, 2017 CIC: Commercial Multiline Institute Lincoln Marriott Courtyard

October 10, 2017 CPIA 2: Implement for Success Omaha Hilton Garden Inn- Omaha

October 11 - 13, 2017 CIC: Commercial Casualty Institute West Des Moines Holiday Inn Hotel & Suites

October 11-13, 2017 CIC: Commercial Casualty Institute West Des Moines Holiday Inn Hotel & Suites

October 11, 2017 Street Level Ethics NE/IA Webinar: 12:00PM - 3:00PM

October 11, 2017 CPIA 2: Implement for Success Des Moines Hilton Garden Inn Des Moines/Urbandale

October 13, 2017 Tricks to Fix: Closing Coverage Gaps in Home, Work and Auto

Iowa Webinar: 8:00AM - 11:00AM

October 16 - December 8, 2017

MERG: Commercial Lines Coverage Basics NE/IA Online Course

October 16 - November 24, 2017

MERG: Delivering Quality Service (to the Customer and the Employer)

NE/IA Online Course

October 18, 2017 CISR: Agency Operations Des Moines Hilton Garden Inn Des Moines/Urbandale

October 18, 2017 CISR: Agency Operations Des Moines Hilton Garden Inn Des Moines/Urbandale

October 19, 2017 Cyber Liability - the 21st Century Peril NE/IA Webinar: 12:00PM - 3:00PM

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October 19, 2017 E&O Loss Prevention NE/IA Webinar: 8:00AM - 11:00AM

October 20, 2017 Insuring the Building Project - Builders & Risk Installation Coverage


October 24, 2017 CPSR: Commercial Casualty Kearney Holiday Inn Express

October 24, 2017 Additional Insureds: The Quandry NE/IA Webinar: 12:00PM - 3:00PM

October 25, 2017 Construction Defects: Property Damage and the ISO CGL


October 26, 2017 CISR: Personal Lines Miscellaneous Davenport Saint Ambrose University

October 26, 2017 CISR: Personal Lines Miscellaneous Davenport Saint Ambrose University

October 26, 2017 Current Trends & Changes: The Homeowner & Auto Marketplace


November 2, 2017 Certificiates and Additional Insureds: Navigating the Maze


November 6, 2017 FLOOD INSURANCE Nebraska Webinar: 12:00PM - 3:00PM

November 9, 2017 CISR: Commercial Casualty 2 Hiawatha Kirkwood Linn Regional Center

November 9, 2017 CISR: Commercial Casualty 2 Hiawatha Kirkwood Linn Regional Center

November 9, 2017 Home Business vs. Home Insurance NE/IA Webinar: 12:00PM - 3:00PM

November 14, 2017 CISR: Insuring Commercial Property Des Moines Hilton Garden Inn Des Moines/Urbandale

November 14, 2017 CISR: Insuring Commercial Property Des Moines Hilton Garden Inn Des Moines/Urbandale

November 14, 2017 How to be the Agent Advocate at Claim Time NE/IA Webinar: 12:00PM - 3:00PM

November 14, 2017 Leases & Contracts Vs. The Insurance Policy NE/IA Webinar: 8:00AM - 11:00AM

November 15-17, 2017 CIC: Life & Health Institute Omaha Hilton Double Tree Omaha SouthWest

November 16, 2017 Top 12 Coverage Countdown NE/IA Webinar: 12:00PM - 3:00PM

November 28, 2017 Regarding Ethics NE/IA Webinar: 1:00PM - 4:00PM

November 30, 2017 Commercial Property Claims that Cause Problems


December 7, 2017 Street Level Ethics NE/IA Webinar: 12:00PM - 3:00PM

December 7, 2017 Tricks to Fix: Closing Coverage Gaps in Home, Work and Auto


December 7, 2017 Street Level Ethics (NE) NE/IA Webinar: 12:00PM - 3:00PM

December 11, 2017 Commercial Liability Endorsements To Watch Out For


PIA NE IA EVENTS


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The Weather, Hurricanes & a Dire Prediction

The U.S. Climate Center says we’re not likely to see El Nino this winter. Oddsmakers at the center say the odds have fallen to 14% by the end of 2017 from above 50% earlier this year. Meanwhile, the chances of seeing a La Nina has gone to 27% in December of this year to February of next.

Michelle L’Heureux of the Climate Prediction Center said, “The chances for El Nino have really diminished. From last month to this month we are now favoring La Nina with slightly higher chances, but overall we are strongly favoring neutral.” was just 17% a month ago.

What does that mean? El Nino will put the brakes on hurricanes in the Atlantic and cause above average numbers of droughts and floods elsewhere. La Nina will keep the U.S. South warm and dry and bring colder weather to the Northern portions of the country.

As for hurricanes, August to early October is the busiest part of the annual hurricane season. So far, this year we’ve seen above-average storm activity but the August-October time period usually produces the most expensive storms. The Atlantic is the warmest this year that it’s been since 1950 and that means the likelihood of more storms and — worse — more intense storms during that time frame.

And what if one of those predicted hurricanes managed to have the same intensity of Hurricane Andrew which hit South Florida in mid-August of 1992. It did $26.5 billion in

damages in1992 dollars. Only $15.5 billion of that was insured which meant losses to society in general hit $11 billion.

Swiss Re took a look at Hurricane Andrew — which is the most devastating storm to ever hit Florida — and at what those damages would be if the same storm hit today. Those losses would be $80 to $100 billion and only $50 to $60 billion would be covered by insurance.

Having a little bit of fun with the data, Swiss Re moved the hurricane’s path 20 miles north to a direct strike on Miami. Losses then would be $100 billion to $300 billion and it would be the costliest disaster in U.S. history. And only a little over 50% of that $100 billion to $300 billion would be covered by insurance.

Martha Schwartz of Swiss Re put it in perspective. “The results serve as a wake-up call to the insurance industry, homeowners, small businesses, public officials and the private sector. A common response is ‘sticker shock,’ as some of the numbers are hard to fathom and rather unsettling. Although it is certainly difficult to wrap your mind around an economic loss in the range of USD 300 billion, it is critical in order to truly address present-day hurricane risk,” she said.

Another worry? The U.S. is getting complacent since we haven’t seen a major hit on U.S. soil since Wilma in 2005.

“Additionally, the US has not experienced a major (Category 3 or greater) hurricane landfall since Wilma in 2005. This extended quiet period can lead to complacency, and insurance take up rates begin to drop as memories of hurricanes fade. However, it is critical to point out that this quiet period does not translate to decreased risk: it’s not a matter of if a major hurricane will barrel through South Florida, but when,” Schwartz added.

Sources: Insurance Journal, Carrier Management, Insurance Business America

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