Did you ever wonder how it all began?

Did you ever take a minute to think about how it all got started?

Not the 'Big Bang Theory' or the Chicken or the Egg.

We mean us, this thing, the American insurance industry?

Swiss Re conducted a study and found:

• Insurance employs about 2.23 million people in America
• Gross insurance premiums totaled $1.16 trillion
• More than 4,000 companies underwrite insurance in America

(You can check out more from this study here)

But that doesn't tell us how it all began?

Well, according to PropertyCasualty360, in the mid-18th century Ben Franklin and other firefighters founded the first, lasting insurance company.

To learn more about the birth of an industry and fun facts about some companies we all know and love click here!

The Impact of 2011 Record Year of Cat Losses on Rates

It should not be news to anyone that 2011 was a record year for catastrophe losses.

Lisa Parry Becker with Wm B Parry & Son Ltd out of Bucks County, PA discusses the impact these losses are having / will have on rates in her blog.  In a conversation with Becker she explained that she "decided to do some research since there were obvious questions coming from clients about rate increases."

Who knows what we will see in terms of cat losses for 2012, so for now let's take a look back on 2011 and see what impact those losses are having on us today.

2011 Natural Disasters: Rate Increases on the HorizonBy: Lisa Parry Becker February 11, 2012

Fire Safety

Wildfires have been all over the news.  From Pennsylvania to Long Island, New Jersey to Upstate NY the dry conditions have brought about warnings by the National Weather Service with several fires breaking out in the past few days.

Here are some links from your friends at Jimcor Agencies that can prove helpful for the insurance community and their clients:

US Fire Administration
http://www.usfa.fema.gov/citizens/home_fire_prev/wildfire/

FEMA
http://www.ready.gov/wildfires

NFPA – National Fire Protection Association
http://www.nfpa.org/categoryList.asp?categoryID=244&URL=Safety%20Information/Safety%20tips%20&%20fact%20sheets

NRRA Implementation Process Reviewed by NAPSLO as seen in AA&B Magazine

NAPSLO's actions on implementation of the Nonadmitted and Reinsurance Reform Act (NRRA) are highlighted in the March issue of the American Agent & Broker magazine in an article by Executive Director Brady Kelley.

The article, Implementing NRRA, can be viewed online at the magazine's web site. The article reviews recent actions by states to modify their laws on taxing premiums, the status of the Nonadmitted Insurance Multi-State Agreement (NIMA) and Surplus Lines Insurance Multistate Compliance Compact (SLIMPACT), the prospects for tax sharing by the states, and the cost/benefits of tax sharing.

Jimcor Agencies is a proud member of NAPSLO.  Questions?  Contact Jimcor Agencies for more information.

The New "SEXY" Insurance

Cyber Liability is the new “sexy insurance” according to the National Underwriter P&C Magazine.
Sexy you say?
Well – those who have had losses I am sure do not find anything sexy about Cyber Liability. They just wish they had it!

Let’s take a look at the case in Minneapolis where a laptop was stolen out of a car. Most medical data includes all (if not some basic form) of an individual’s identity. That can include their social security number!
In the case in Minneapolis, the medical information had been shared with a third party and was presumed to be safe. However the third party did not encrypt the data. Therefore when the laptop was stolen the data was available to anyone and everyone.
So here are the questions – why was this third party able to download data and not have it encrypted? Was it written anywhere that it had to be encrypted? Who monitored the transaction of data?
As more questions from this case arise each day one thing is for certain – patient’s identities were stolen. Who knows how or when or why they will be used – but the information is out there in someone else’s hands.
The first step for the third party company was to contact the patients affected by this horrible situation. Once these parties were contacted some in the firm could begin looking at the how, why and when the event occurred.
“Notification costs usually end up being the biggest hit in these cases” shared Joe Schneider, RPLU and Jimcor’s Professional Liability manager.
“What people and companies don’t realize is that even if nothing went wrong and they took every safeguard – they may still have to notify clients that data has been compromised.”
Schneider continued that some carriers are simply adding on a data breach or cyber liability “rider” as part of the general policy. However clients need to understand that liability limits can be eroded by data privacy losses.
“With notifications making up the majority of the initial costs , usually averaging over $200 per record, it’s no wonder this coverage is being mentioned every time agents talk to their prospects or clients. If an agent is not mentioning this coverage they are not only losing an opportunity, they may be exposing themselves to an E&O claim.”
Schneider also explained that insurance agencies should all have the coverage in place for their own offices. Many go uninsured – and hopefully will see the need before they are hit with a loss.

So… back to this being “sexy insurance”… when you think about it what’s so sexy about losing someone’s identity and then having to pay the costs and fees to help them protect the information and get their lives back on track?

You read the article and decide if this is something you think your agency needs – or your clients’ need. If so call us or email Joe Schneider today.

Star Tribune article

Property Casualty 360 article

Special thanks to Business Insurance for the great cartoon!

Your Responsibility or Not?

What do you do when one company or MGA is following the rules and another is not? As an agent you want to write the business. Is it really your concern if the MGA is following all the state guidelines and filing the correct forms with the correct agency in a timely fashion? Is it your problem as an agent to know how the company you are writing with runs their operations and if they are abiding by state laws and regulations?
Sure, there are MGA’s and carriers out there that will place business just to get numbers on the books. They will not look for declination letters, or proper licenses, or proper appointments, etc. And some of these carriers and MGA’s have been successful operating this way for many years.
However as an insurance agent, you have a commitment to your insured to present the best insurance program – whether the premium is for $500 or $500,000. You have an obligation to know the laws in the state you are writing and abide by them. If a carrier or MGA is not abiding by the laws and regulations and you still choose to place business with them, where does that leave you (and your E&O) in the event of an uncovered loss?

Associations are working hard to make it easier for agents to write business across state lines. They are looking everyday to better define “home state” and make the instructions for writing in their state easier. But in the end it is your job as an insurance professional to know the laws. Impossible to know the laws in every state you say? Yes, it is. That is why you should be utilizing all of your resources – whether state or national trade association, state departments of insurance / finance, etc.

For example, are you aware of the Non-admitted and Reinsurance Reform Act (NRRA)? Do you know what the requirements are in each state? Here is a link to the Compliance Guide put together by AAMGA (www.aamga.org) detailing what is required and where each state stands with regards to this regulation.

http://www.aamga.org/files/NRRA/NRRAComplianceGuide_72611.pdf

The better informed you are, the more vital your input and knowledge is to your client(s).



Ask questions of your carriers and MGA’s and if they do not know the answer ask them where you should go to find the answer. Ask your trade associations. Be in the know… this is one of the many things that make independent agents more valuable than a click or a phone call.

Who Makes the Best Trade Show Booth Staff?

Most if not all of us have attended industry trade shows.  Recently Jimcor Agencies sent about 15 people to the PIA NJ/NY Joint Convention in Atlantic City, NJ.  This particular show is three days long, and draws approximately 2,000 industry professionals from around the Northeast US.
In walking around the convention center and looking at all the booths I did notice something that made the Jimcor booth different.
It wasn't the balloons celebrating our 25th Anniversary.  It wasn't the great location right near the entrance.
It was the positive attitude of the Jimcor employees.  Yes, we all wish the market was getting harder.  But if we walk around portraying a negative attitude, who would want to do business with us?
In a meeting prior to the trade show we discussed attire for the booth and the events, who would be attending which classes, who would man the booth when, etc.  We went over every detail.
But actually seeing the smiles on the Jimcor staff's faces, hearing them talk positively to everyone they saw no matter if they were a company, vendor or agent - it was great.
So what can you do in your office to make sure that only the positive attitudes are what people see?
Look at your culture.  What is your office like?  Do people regularly smile and laugh?  Sure, every now and then people have a bad day, but is there one person whose negativity threatens your entire office?
There is always that one person who is a great worker, but their attitude could use some adjusting.
Whatever you decide to do with that employee, DO NOT put them out there in front of your clients.  Think of how you would read someone who had that negative puss on their face, as opposed to the person (who may not be as knowledgeable) who is smiling and extending a hand listening to your concerns.
When looking around your office to see who should be attending an event, look for the people that invite opportunity.  These will not always be your best producers (and that is something else that you should be looking at).  These people will be the ones who even if something is happening in their personal lives, they are able to put it aside and concentrate on the positive of the moment - they put the client first.  These are the people that say "Good Morning" with a smile everyday, even when it is raining.
Consider what your staff would look like at the booth of a huge trade show.  How would your office be perceived?  What would people walk away thinking about your company?
Make sure whomever you have out there marketing for you knows the importance of a smile and eye to eye contact.
For a great article click here to learn more about "Who Makes the Best Trade Show Booth Staff" from AlexisExhibits.com.
To find out where Jimcor will be exhibiting next, email us at info@jimcor.com!