Happy Wednesday! In this week's Big I Buzz, we are diving into AM Best's outlooks for both US Personal lines segment and the  P/C  commercial lines segment. 

AM Best Maintains Negative Outlook on U.S. Personal Lines Insurance Segment

AM Best maintains a negative outlook on the U.S. personal lines insurance segment for 2024 due to worsening results in personal auto and homeowners' lines, driven by escalating loss costs amid inflationary pressures. The report, "Market Segment Outlook: U.S. Personal Lines," acknowledges challenges in maintaining rate adequacy and notes elevated reinsurance costs due to increased catastrophe loss volatility. Despite solid capitalization levels and improved investment yields, insurers face erosion in their capital cushion, making a return to underwriting profitability unlikely in the near term. Factors like higher fatality rates, increased repair costs for newer vehicles, and ongoing inflation contribute to the escalating severity of losses. Catastrophe-related losses from events like Hurricane Idalia, wildfires, floods, and severe storms have further strained the segment, hinting at continued challenges ahead. Read more here. 

AM Best Maintains Stable Outlook for U.S. Property/Casualty Commercial Lines

AM Best maintains a "stable" outlook for the US property/casualty commercial lines segment owing to robust underwriting performance despite economic volatility, driven by consistent rate increases in major commercial lines until 2023. While most classes of business exhibit positive pricing momentum, workers' compensation and specific management liability classes experience rate decreases due to stringent regulation and strong multi-year underwriting performance. Strong underwriting results through 2023, fueled by prior rate hikes and economic expansion, are expected to persist, facilitated by disciplined risk selection and improved loss control strategies, reducing claims frequency and severity. Operating profitability benefits from higher reinvestment rates, particularly in longer-tailed casualty lines, though reserve development from prior periods might vary across different lines of business. Concerns linger over economic inflation, geopolitical risks, and rising social inflation impacting casualty lines. The report also highlights emerging markets such as evolving liabilities related to substances, technological advancements, climate exposures, and litigation financing. Insurers are leveraging technology for enhanced underwriting decisions amid a diverse landscape. The complete market segment report is available through AM Best's website, along with a video featuring Associate Director Alan Murray discussing the US commercial lines market segment outlook. Read the full article here. 

For more news, check out the Action News section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click  here  to add your email to our emailing list.

Happy Wednesday! In this week's BIg I Buzz, we are sharing tips to keep cooking fires from ruining your holiday and how financial fears are affecting life insurance sales. 

Keep Thanksgiving Cooking Fires at Bay

The National Fire Protection Association (NFPA) highlights Thanksgiving as a day witnessing three times more cooking fires than an average day, attributing 53% of reported home fires, 38% of home fire injuries, and 18% of home fire deaths to cooking mishaps. To safeguard against these incidents during holiday meal preparations, the NFPA stresses precautions. Their recommendations in case of a cooking fire involve swiftly leaving the building and shutting the door behind to contain the fire, contacting local emergency services, ensuring a clear exit path if attempting to extinguish the fire, and having pot lids nearby to smother small grease fires by turning off the burner, covering the pan, and allowing it to cool completely.

Here are 10 tips from FEMA for how to keep cooking fires from ruining your holiday: 

1. Stay near the food while you are cooking on the stovetop. If you leave the kitchen, turn off the stove burners. 

2. Most cooking fires start while frying food, so keep an extra-close eye on those dishes as they cook. 

3. Roll up your sleeves while you cook to reduce the chance of them catching fire. 

4. Keep an eye on children and pets to make sure they  stay away from the stove. 

5. If you see any smoke or grease boiling while cooking, immediately turn the burner off.

6. If you have an oven fire, keep the door closed and turn off the oven. Keep the oven door closed until it has fully cooled. 

7. Move flammable items - like dishtowels and curtains - away from the stove before you begin cooking. 

8. Turn pot handles toward the back of the stove to keep people from accidentally running into them and knocking them off the stove or tipping them over. 

9. Turkey fryers should only be used outdoors. They should also be placed on a level, sturdy surface away from flammable materials. 

10. Check your smoke alarms to make sure they are functioning properly before you begin cooking Thanksgiving dinner. 

Financial Fears Encourage, Inhibit Life Insurance Sales

LIMRA's recent research reveals a strong correlation between financial fears and the desire to purchase life insurance, with those harboring financial worries being over five times more likely to consider buying coverage. However, despite this inclination, affordability remains a significant barrier, leading many individuals to forgo purchasing life insurance. Jennifer Douglas from LIMRA emphasized the paradox where financial fears, while driving interest in life insurance, also hinder its acquisition due to affordability concerns. To bridge this gap, LIMRA suggests that financial advisors understand and address clients' core financial fears holistically, aiming to cater to underserved markets and close the life insurance gap. The study underscores the importance of trust between consumers and financial advisors, highlighting that individuals are more inclined to share their financial fears if they have a trustworthy relationship with a professional. This trust-based approach might encourage more comprehensive solutions tailored to individual financial concerns.

Give Back During the Holidays - IIAW Emerging Leaders Volunteer Event at Hunger Task Force in Milwaukee.
This year we are organizing a group volunteer outing at Hunger Task Force in West Milwaukee. We will be packing stockboxes which are boxes of healthy non-perishable foods for low-income seniors. This takes place at their warehouse at 5000 W. Electric Ave., in West Milwaukee. Must be able to lift 30 lbs. Register to volunteer here:  https://www.iiaw.com/events/EventDetails.aspx?id=1795468&group=

Don't forget if you haven't already updated your information to head back to this week's Big I Buzz email so you can receive our monthly email curated for you and your role. For more news, check out the Action News section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click  here  to add your email to our emailing list.

Happy Wednesday! In this week's Big I Buzz we are discussing the future of work and recent findings from J.D. Power 2023 US Auto Claims Satisfaction Study. 

Working it Out: Is Hybrid the Future of Work? 

In response to the pandemic, the traditional five-day office workweek is fading as a majority of employees prefer a hybrid model, working from home two or three days a week for better work-life balance and personal autonomy. Even major companies like Zoom are adopting this approach, leading to cost savings and increased morale. However, the shift has repercussions in downtown areas and related businesses. The CNBC article concludes that the five-day office workweek is becoming a thing of the past, and hybrid work is the new normal, offering greater choice and flexibility to employees. Read the full article here: https://www.cbsnews.com/news/working-it-out-is-hybrid-the-future-of-work/

Despite Delays in Auto Repair Cycle, Customer Satisfaction Improves

Auto insurance repair cycle times have reached an average of 23.1 days in 2023, a significant increase from 2022 and double the repair time in 2021 due to repair-shop backlogs and parts shortages. Surprisingly, this delay has not negatively impacted customer satisfaction, as insurers have effectively managed customer expectations and improved digital communications, according to the J.D. Power 2023 U.S. Auto Claims Satisfaction Study. Customer satisfaction with the auto insurance claims process has actually increased this year, driven by empathy and responsiveness at the beginning of the process and effective communication. Despite the longer repair times, overall satisfaction improved, except for rental experience, which declined. Amica Mutual ranks highest in customer satisfaction for the second year, demonstrating the importance of showing concern and keeping customers informed. Repair delays are attributed to supply chain and labor shortages, as well as an aging vehicle fleet. While relief is beginning to appear, insurers can further enhance customer satisfaction through improved communication, digital solutions, and empathy.  Read more here. 

Don't forget if you haven't already updated your information to head back to this week's Big I Buzz email so you can receive our monthly email curated for you and your role. For more news, check out the Action News section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click  here  to add your email to our emailing list.

Happy Wednesday! In this week's Big I Buzz, we have a few registration reminders that you won't want to wait on.

"How to Succeed in a Hard Market" featuring MarshBerry

1 to 5 p.m. (happy hour to follow) on November 2, 2023 at the Park Hotel in Madison, WI

Our afternoon of learning from MarshBerry is quickly approaching and registration will be closing soon. If you haven't already, click here to get registered. You'll learn how to better communicate your value in a hard market, improve your strategy for growing organically and improve your internal culture. Plus, following the event, join us for drinks and apps!

InsurCon2024 Attendee Registration Price Increases on November 1st

Join the IIAW as we celebrate 125 years at InsurCon2024, happening on May 15-16, 2024 at the iconic Lambeau Field! Don't wait to register, as our Early Bird pricing is only available until the end of the day on October 31st.  

If you haven't already, check out what's included with attendee registration:

• An Evening with Charles Woodson
  Includes Past Presidents' Cocktail Hour
  Charles Woodson Keynote Presentation
  Bottle of Charles' Whiskey or Wine
  Meet & Greet Led by Professional Photographer
  
  
• Meet Packers Head Coach Matt LaFleur
  Includes Meet & Greet with Matt LaFleur
  Cornhole Tournament
  Ultimate Tailgate Dinner
  
  
• E&O Risk Management Course
  Includes 3 Ethics CE Credits
  
  
• Insightful Panel Discussions
  IIAW Past Presidents' Panel
  Green Bay Packers Risk Management Panel
  CEO Panel
  
  
• Wisconsin's Largest Insurance Exhibitor Showcase
  Ability to network an win BIG prizes (cash, door prizes and Blackout Bingo prizes)
  
  
• Agency Appreciation Luncheon (Invite Only)
  Open to agency personnel, Exclusive Supporting Company Members and those who receive a special invitation. Includes access to the Champions Club, lunch, a presentation featuring Packers Director of Public Affairs, Aaron Popkey, and a fast-paced CEO Q&A
  
  
• Exceptional Dining Experience
  Agency Appreciation Luncheon (Invite Only)
  Ultimate Tailgate Cuisine During Tailgate Party
  Continental Breakfast
  Gourmet Lunch Overlooking Lambeau Field
  Evening Celebration Dinner in Lambeau Field Atrium
  
  
• Guided Lambeau Field Stadium Tour and Hall of Fame Tour
  Join us on Friday, May 17th to redeem your guided Lambeau Field Stadium Tour and self-led Hall of Fame Tour
  
  

Learn more about this year's milestone event and register before our Early Bird savings are gone: https://www.iiaw.com/page/insurcon 

Don't forget if you haven't already updated your information to head back to this week's Big I Buzz email so you can receive our monthly email curated for you and your role. For more news, check out the Action News section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click  here  to add your email to our emailing list.

Happy Wednesday! In this week's Big I Buzz, we are discussing 9 mistakes homeowners make when filing an insurance claim and a look at Q3 personal and commercial lines rates.

9 Mistakes Homeowners Commonly Make When Filing an Insurance Claim

According to the Insurance Information Institute's (Triple-I) review of claims date from 2017-2021 about 1 in 20 home policyholders will have a claim each year. Here is a list of nine common mistakes homeowners make when filing an insurance claim, according to Forbes Advisor: 

9. Filing too many claims - Insurance companies consider previous claims history when setting rates, and policyholders with a record of filing claims are likely to be considered a higher risk of generating more claims in the future. Forbes Advisor noted that sometimes it is wiser for a homeowner to pay for small repairs rather than filing a claim. 

8. Cleaning up too fast - While most people want to clean up after an accident as soon as possible, homeowners who have a loss such as a fire or flood should wait until all the damage is properly documented.

7. Not documenting damage - Forbes Advisors noted photos are a policyholder's friend when filing a claim and ideally they would have photos before and after the loss event. 

6. Waiting to file a claim - Policyholders shouldn't delay when filing a claim as this only prolongs the time it will take to get the property repaired. 

5. Not communicating clearly - Homeowners are often less than clear when describing property damage, and this poor communication can result in delays in the claims process. 

4. Not maintain a property - Insurance covers unexpected damage, not issues caused by failing to properly care for a home. Neglecting to correctly maintain a property can lead to a claim being denied, according to Forbes Advisor. 

3. Not having a home inventory - A complete list of a home's contents is a vital tool when dealing with an extensive loss. 

2. Having the wrong coverage - Along with not understanding what is covered, having the wrong type of coverage is a common mistake, according to Forbes Advisor, which gave the example of misunderstanding exclusions or confusing actual cash value with replacement cost. 

1. Not reading the policy - Not understanding what a policy covers can lead to disappointment when a homeowner goes to file a claim for an event that isn't covered, such as flooding. 

Read more here. 

Personal and Commercial Lines Rates Moderate in Q3

The third quarter of 2023 witnessed notable trends in the insurance industry, as reported by MarketScout. Personal lines in the United States held a composite rate of 4%, showing insurers' growing confidence in their results. However, concerns arise due to the record-breaking heat of the summer. For personal lines, home rates showed moderate increases, with homeowners under $1,000,000 value up by 3.7% and homeowners over $1,000,000 value up by 5.3%. In contrast, commercial insurance rates saw a more tempered rise, with business owners' policies (BOP) experiencing an increase from 3.2% to 5%. While reinsurers have been strict in the past, they are now showing signs of moderation, which is translating into better terms for insurers and customers. Increased interest rates are also contributing to the moderation in rates. The report suggests that some property underwriters anticipate ongoing rate hikes, potentially driven by the hottest summer on record in 2023. Furthermore, a report from the Consumer Federation of America highlights that CEOs of the top 10 personal insurance line businesses received substantial compensation as insurance prices continued to surge. Read the full article here. 

Don't forget if you haven't already updated your information to head back to this week's Big I Buzz email so you can receive our monthly email curated for you and your role. For more news, check out the Action News section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click here to add your email to our emailing list.