we believe that servic e is the key to a competit iv e …...Krist Insurance Group of Iowa, LLC 6600...
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Krist Insurance Group of Iowa, LLC 6600 Westown Parkway, Suite 250 West Des Moines, IA 50266 t h e k r is t in s u r a n c e g r o u p o f io w a , l l c w w w .k r is t in s u r a n c e .c o m 515-270-0909 800-965-7478 we believe that service is the key to a competitive advantage in the marketplace – that’s why it’s part of our name Net Written Premiums Fell 0.7% in 2007 (First Decline Since 1943) by 2.0% in 2008, and 4.2% in 2009, the First 3-Year Decline Since 1930-1933 Current pricing is at year 2000 level. The reduction in pricing in Commercial Lines insurance seems to be continuing, with the exception in some specialty lines. Overall rates are the lowest they have been in real dollars for over 60 years. (see chart). This is expected to continue - barring a bad hurricane season that tends to send a shiver through the market- both primary and reinsurance markets. The biggest fear is “the” Hurricane that goes up the entire east coast. Semi-soft Market Continues - The Cycle Continues - Property Casualty Update for Personal and Commercial Insurance Bonnie Finken returns to Krist Insurance after a three year hiatus. We are delighted to have Bonnie back with us. She worked for Krist for nine years where she started as our receptionist and worked her way up to Senior Commercial Account Manager. Bonnie is a Certified Insurance Service Representative (CISR), and has three parts of her Certified Insurance Counselor (CIC) Designation. “New” Account Manager- Rejoins Krist Insurance Welcome Back Bonnie Finken , CISR Cyber Liability This is a growing area of risk that we have spent substantive time educating our clients. With the incredible growth of the internet (much more in other countries than here), there is a growing exposure for most, if not all of our commercial clients. We have over six carriers providing, quite inexpensively, a variety of options to this growing area and it is not unusual to take 2-3 carriers to properly insure Cyber Liability. Your obligation to pay a claim for a breach to your system or data theft is real. This can be true even without a financial injury to a third party. Your cost can be largely due to the federal govern- ment’s notification requirements These include notification to each account/person that was violated; additionally the law re- quires purchase of credit score reports ( for each account/ person those who have had their information negligently breached ) to be able to watch their credit scores for 12 months at the business/ employers expense. This can be HUGE. A GL policy will cover liability for property damage. However, property damage is physical injury to tangible property. Informa- tion is not tangible property. A GL policy also excludes electronic data. This would be how Cyber Liability policy could fill in gaps of coverage. THIS IS INFORMATION FROM CNA You need cyber liability coverage if your business: • Rely on computers, networks or the internet. • Use email. • Store others info, such as company info, others trade secrets and private personal info. • Have customers who depend on their network related services or info in their care. • Have a contractual requirement for coverage. A Cyber Liability Policy covers clients for Liability claims where a security breach results in: • Privacy injury • Identity theft • Network damage • Theft of others information in their care, including trade secrets • Infection of others networks or data. • Costs to comply with applicable laws requiring clients to notify their customers or users if a security breach could potentially compromise private information. % of Total Physical Theft 36% Hacking 26% Accidental Release 20% Lost Media 11% Employee Act 6% Social Engineering 1% Breaches of Sensitive, Non-Public Information Please call us to discuss this coverage and how it may benefit you. According to data available from the Privacy Rights Clearinghouse, physical theft, hacking into systems and accidental release are the leading causes of breaches of sensitive or non-public information. Incident Frequency by Causes of Security Breach – All Industries 354 Recorded Privacy Breaches
Transcript of we believe that servic e is the key to a competit iv e …...Krist Insurance Group of Iowa, LLC 6600...
Krist Insurance Group of Iowa, LLC6600 Westown Parkway, Suite 250West Des Moines, IA 50266
t h e k r is t in s u r a n c e g r o u p o f io w a , l l c w w w .k r is t in s u r a n c e .c o m 5 1 5 - 2 7 0 - 0 9 0 9 8 0 0 - 9 6 5 - 7 4 7 8 w e b e l i e v e t h a t s e r v ic e is t h e k e y t o a c o mp e t it iv e a d v a n t a g e in t h e ma r k e t p l a c e – t h a t ’s w h y it ’s pa r t o f o u r n a me
Net Written Premiums Fell 0.7% in 2007 (First Decline Since 1943) by 2.0% in 2008, and 4.2% in 2009, the First 3-Year Decline Since 1930-1933
Current pricing is at year 2000 level.
The reduction in pricing in Commercial Lines insurance seems to be continuing, with the exception in some specialty lines. Overall rates are the lowest they have been in real dollars for over 60 years. (see chart). This is expected to continue - barring a bad hurricane season that tends to send a shiver through the market- both primary and reinsurance markets. The biggest fear is “the” Hurricane that goes up the entire east coast.
Semi-soft Market Continues - The Cycle Continues -
Property Casualty Update for Personal and Commercial Insurance
Bonnie Finken returns to Krist Insurance after a three year hiatus. We are delighted to have Bonnie back with us. She worked for Krist for nine years where she started as our receptionist and worked her way up to Senior Commercial Account Manager. Bonnie is a Certified Insurance Service Representative (CISR), and has three parts of her Certified Insurance Counselor (CIC) Designation.
“New” Account Manager- Rejoins Krist Insurance
Welcome Back Bonnie Finken , CISR
Cyber Liability This is a growing area of risk that we have spent substantive time educating our clients. With the incredible growth of the internet (much more in other countries than here), there is a growing exposure for most, if not all of our commercial clients. We have over six carriers providing, quite inexpensively, a variety of options to this growing area and it is not unusual to take 2-3 carriers to properly insure Cyber Liability.
Your obligation to pay a claim for a breach to your system or data theft is real. This can be true even without a financial injury to a third party. Your cost can be largely due to the federal govern-ment’s notification requirements These include notification to each account/person that was violated; additionally the law re-quires purchase of credit score reports ( for each account/ person those who have had their information negligently breached ) to be able to watch their credit scores for 12 months at the business/ employers expense. This can be HUGE.
A GL policy will cover liability for property damage. However, property damage is physical injury to tangible property. Informa-tion is not tangible property. A GL policy also excludes electronic data. This would be how Cyber Liability policy could fill in gaps of coverage.
THIS IS INFORMATION FROM CNA
You need cyber liability coverage if your business:
• Rely on computers, networks or the internet. • Use email. • Store others info, such as company info, others trade secrets and private personal info. • Have customers who depend on their network related services or info in their care. • Have a contractual requirement for coverage.
A Cyber Liability Policy covers clients for Liability claims where a security breach results in: • Privacy injury • Identity theft • Network damage • Theft of others information in their care, including trade secrets • Infection of others networks or data. • Costs to comply with applicable laws requiring clients to notify their customers or users if a security breach could potentially compromise private information.
% of TotalPhysical Theft 36%Hacking 26%Accidental Release 20%Lost Media 11%Employee Act 6%Social Engineering 1%
Breaches of Sensitive, Non-Public Information
Please call us to discuss this coverage and how it may benefit you.
According to data available from the Privacy Rights Clearinghouse, physical theft, hacking into systems and accidental release are the leading causes of breaches of sensitive or non-public information.
Incident Frequency by Causes of Security Breach – All Industries 354 Recorded Privacy Breaches
Work Comp Changes: 4.7% increase across all Workers Compensation codes. January 1, 2011 - Iowa as a state is running 117% combined loss ratio (losses plus loss expenses).
Average Rate Statewide Increase – 4.7%
Iowa Claims/Expenses Paid are 117% for 2009
Iowa Ranks bottom 22% for Workers Compensation Rates
Certificates Cancel Clause changes September, 1 2010All Iowa Certificates changed as of September 1, 2010 to the newly filed and adopted by all Iowa Acord (an industry standards company that files copyrighted forms for member insurers) insurers. This requires some education of those that hold certificates especially the cancel clause. The clause cannot be modified (due to copyright laws) and must be done per this copy-righted form for all carriers using Acord.
Iowa Rate Forecast 2011As we see the market for 2011 in Iowa, we do not expect rate increases of any magnitude for most commercial busi-nesses. We do expect Workers Compensation to increase slightly (see sidebar). Some specialty lines will also see some pricing pressure (Professional Liability related to construction, vacant commercial properties, loss pressures, for example). Overall planning recommendation for pre-mium is +/- 5% of Non-Workers Compensation premium. Workers Compensation of course, if you are of size, is tied to your modification factor which recovers premiums for past losses on a three year moving average. We have seen some re-pricing via redefinition in this area by the National Council on Compensation Insurance be redefining the Expected Loss Ratio (ELR) increasing minimum modifica-tion. We have special software which allow us to assist our clients in getting this information earlier. This will enable us to attempt to reduce reserves prior to modification cal-culation and defining the potential minimum modification to show the potential reward for good loss control. It can be significant over time.
As Chairman of the Technical Affairs Committee in Iowa, James Krist and Krist Insurance Services supports the request of ISO and ACORD to create a notification endorsement to allow those that want cancel information to be able to get it per a specific endorsement.Note: Special handling maybe required for those clients with multi-state certificate requirement.
Please note the cancellation definition for the Acord 25 Form below. It is the only one being used by the industry going forward (unless special arrangements are made). Should any of your contracts require cancel clause language, we are here to help educate the certificate holders as to these specifics. Please let us know when we can be of specific help here.
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL ___ DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES.
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS
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Items at Your FingertipsKrist Insurance Services is pleased to provide you with information resources in the Krist Resource Library on our company website (www.kristinsurance.com). This area will provide you with newsletters, topics of interest, videos and our webinars including the recent Health Care Webinar.
Some of our carrier partners, such as Indiana Insurance, who offer Loss Prevention and Risk Management toolboxes. Visit http://www.indiana-ins.com/ Managing Risk section for a complete listing of available topics.
Look for us also on Facebook. You can find Krist Insurance Services advertisements, special promotions and announcements. We have been utilizing Facebook to post a variety of insurance related issues.
Become a FAN today! Those who join our fan base and share a Service Experience will be eligible for a drawing for an HDTV. Drawing to be held on January 31.
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