Area Agencies on Aging Insurance and Risk Management Issues by Jeff Cole McNeary Consulting Services

Insurance and Risk Management Issues Current Insurance trends by line coverage Insurance Market predictions for the next 12 months Insurance Program Tips General Insurance tips Summer workforce tips Open discussion

Current Insurance Trends by Line of Coverage Property General Liability Automobile Excess Liability Workers Compensation D&O

Current Insurance Trends for Property Insurance No credits Higher deductibles Restrictive underwriting

Current Insurance Trends for General Liability Insurance More exclusions Higher rates Restrictive underwriting

Current Insurance Trends for Automobile Insurance Vehicle use important Higher rates Higher deductibles Restrictive underwriting

Current Insurance Trends for Umbrella or Excess Liability Insurance Higher limits not available Higher per million premium Exclusions Restrictive underwriting

Current Insurance Trends for Workers Compensation Markets through larger agencies Loss experience important Smaller premiums limit markets Mandatory terrorism coverage charge Very restrictive underwriting

Current Insurance Trends for Directors and Officers Liability Insurance Minimum premiums are getting higher for not-for-profits Higher per million premium Higher per claim deductibles Over-kill underwriting

Insurance Market Predictions for the Next 12 Months Premiums Limits Insurers Brokers

Insurance Market Predictions for the Next 12 Months-Premiums Overall premiums increases up 20 percent (C I A & B -first quarter Survey) Auto increases 10-30% Property increases 10-20% D&O increases 10-30% EPL increases 5-20% General Liability increases 5-20% Workers Compensation 10-30% Insurers

Insurance Market Predictions for the Next 12 Months-Limits More willing to offer higher limits on most policies but still be expensive More willing to offer higher property limits Will continue to restrict D&O limits Will continue to restrict EPL Limits Higher umbrella limits should be available except over medical mal coverage

Insurance Market Predictions for the Next 12 Months-Insurers Low investment income gains will affect rates More instability and AM Best rating problems Require a ton of info on insureds Good loss ratio insureds will get the best pricing and terms Difficulties with Insurance Department Insurers

Insurance Market Predictions for the Next 12 Months-Brokers Less of them Risk Management Services-Claims/RC Insurers are being very selective of the brokers they contract with

Insurance Program Tips Time: Plan ahead Brokers/Agents: Institutional vs. market knowledge Underwriters: Go meet them Claim Adjusters: Let them know you are watching Showcase Cost: Seek an alternative for the mostly costly policy Coverage: Based on your claims history, how much is needed? Broker/Insurer Service: Require what you really need and get it in writing

General Insurance Tips Certificates of Insurance from contracted services Procurement-attract markets Keep good loss run records Know the difference between GL and PL Vehicle use policy Be the squeaky wheel Risk management audit Insurance Program reference book or manual

Preventing Injuries Among Seasonal Work Force Tips Make safety cool Keep a sharp eye out Repeat messages frequently Train Buddy up Hold managers accountable Reward

McNeary Insurance Consulting Questions????