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​ Leaders and Criticism — The Positives Outweigh the Negative

Posted By PIA Staff Reporter, Tuesday, October 30, 2018

David Dye trains leaders. In the words of his website, Dye works with leaders who want to “achieve breakthrough results without losing their soul (or mind) in the process.”

His three books aim for that kind of result. They are:

•  Winning Well: A Manager’s Guide to Getting Results Without Losing Your Soul

•  The Seven Things Your Team Needs to Hear You Say

•  Glowstone Peak - a book for readers of all ages about courage, influence, and hope

Dye says, “Too often, leaders take criticism or negative feedback and either ignore it (at the cost of their credibility) or overreact to it and paralyze themselves. Critical feedback can be a gift, but it’s how you use that gift that makes the difference.”

His lessons apply to leaders but they can also apply to people in all walks of life. And with that, he points out 10 ways to get the most out of criticism when it comes your way.

1. First, he says it is important to be aware of your emotions.

Critical feedback is hard to take sometimes but to get the most out of the experience emotional control is critical. “Manage your emotions, get perspective, and then consider the value (or lack of it) in what you heard. Remember that if you’re moving things forward and making a difference, you will tick people off, and they may be critical of you for all the right reasons,” he wrote.

2. Second, look for patterns.

If the criticism comes from one person file it away. Two people means you need to pay attention. When three or more give you the same feedback then it’s time to take notice. “The pattern doesn’t mean you’ve done something wrong — it could be that or could be that there’s some additional information they need, or that you need to clarify who owns a decision, or clarify the MIT,” Dye noted.

3. It is very important to ask why.

Sometimes criticism is just for the person pointing a finger. For some putting another person down builds themselves up. “If you suspect you’re receiving this kind of criticism, ask them why they’re sharing. When they respond defensively, it’s usually a sign their feedback was more about them than it was for genuinely helping you,” he wrote.

4. Once criticism comes, look for the cause.

Most complaints come because of symptoms. Those criticizing sometimes aren’t aware of the underlying causes of the issue. “Look beneath the criticism for a valid cause — something that would be worth paying attention to,” Dye said.

5. Be curious.

Don’t blow off criticism. Listen intently and really hear what the person is saying. Let that truth influence ongoing decisions. “Even if the person’s feedback doesn’t apply in the way they intended, the fact that you listened and valued what they had to say builds your credibility and influence,” and that’s a positive Dye said.

6. Test the criticism.

Is there value? Check with those you trust to tell you the truth, with mentors or with a life coach. Dye said, “Let them know what you’ve heard and that you’d like their honest perspective.”

7. Show gratitude.

It’s difficult to criticize. For some people it’s nearly impossible. “They’ve done you a favor,” he writes. “Caring truth-tellers are rare. Cherish them.

8. An option is to ignore the criticism.

“Imagine what a mess it would be if authors, movie directors, and restaurant managers tried to react to every critical review they receive. It’s impossible to satisfy everyone (and some people don’t want to be satisfied — they just criticize to be noticed),” he wrote.

9. Respond where you can.

Do this when it makes sense and when the changes requested are consistent with your values and in line with the company vision or with your mission. However, “be clear about how you are responding to the feedback you receive. And if something prevents you from responding, be clear about that too.”

10. Move on.

Dye’s final advice, “You’re not perfect. You’re not going to be. Learn and apply what you can, then move on.” 

Criticism is part of life. Dye said he’s used to it and always takes President Abraham Lincoln’s advice when criticism comes his way.


“If I were to try to read, much less answer, all the attacks made on me, this shop might as well be closed for any other business. I do the very best I know how — the very best I can; and I mean to keep doing so until the end. If the end brings me out all right, what’s said against me won’t amount to anything. If the end brings me out wrong, ten angels swearing I was right would make no difference,” Lincoln said.


Source link: LetsGrowLeaders

Tags:  Criticism  David Dye  Leadership advice  PIA Western Alliance 

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Save the Date: PIA Western Alliance to Head Up Montana Agent Forum

Posted By PIA Staff Reporter, Tuesday, October 30, 2018


Save the Date!

PIA Western Alliance

Montana Agent Forum

(Formerly Montana Joint Conference)

October 10 - 11 2019

Best Western GranTree

Bozeman, MT

Tags:  Bozeman  Montana Agent Forum  MT  October 10 11 2019  PIA Western Alliance 

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Data Breaches — The New Reality for 2018

Posted By PIA Staff Reporter, Tuesday, October 30, 2018


So far 2018 has been a pretty good year for criminals targeting companies and individuals. A lot of major firms got hit and hit hard. The most recent is Cathay Pacific Airlines. It lost the personal and private financial data of 9.4 million people. Facebook’s famous hack happened this year as did Macy's, Adidas, Sears, Kmart, Delta, Best Buy, Sonic, Whole Foods, Arby’s and others.

These attacks are costly. Or so says IBM’s 13th annual Cost of a Data Breach study. The research is considered the industry’s gold-standard and is conducted by the Ponemon Institute. The study found the global average cost of a data breach is up 6.4% when compared to 2017 and hit an average $3.86 million.

The average cost for each lost or stolen record containing sensitive and confidential information also jumped considerably. It rose by 4.8% to $148 per record.

WalletHub just did a study of data theft and fraud and mined some interesting data of its own. The PIA Western Alliance states are in bold:


Most ID theft per capita

1. Tie — District of Columbia, Michigan

3. Florida

4. California

5. Maryland


Fewest ID theft complaints per capita

47. Maine

48. Iowa

49. Vermont

50. West Virginia

51. South Dakota


The difference between the best state for ID theft complains and the worst state is 4x

Highest average loss amount due to online ID theft

1. Tie — Ohio, North Dakota, West Virginia

4. Nebraska

5. New Jersey


The lowest average loss amount due to ID theft

47. Rhode Island

48. Alabama

49. South Dakota

50. Indiana

51. District of Columbia


The difference between the highest states for average loss amount and the worst states is 22x


Most fraud complaints per capita

1. Tie — District of Columbia, Florida, Georgia

4. Nevada

5. Delaware


Least fraud complaints per capita

47. Nebraska

48. Vermont

49. Iowa

50. South Dakota

51. North Dakota


The difference between the worst state for fraud complaints per capita and the state with the fewest is 4x


Highest average loss amount due to fraud

1. Wyoming

2. Tie — California, Arizona, Idaho, Nevada


Lowest average loss amount due to fraud

47. Mississippi

48. Tie — Delaware, Georgia

50. Rhode Island

51. District of Columbia


The top-10 most impacted states for data theft and fraud. Two of then — Nevada and California — are PIA Western Alliance states.

1. Nevada

Total score — 72.66

ID theft rank — 2

Fraud rank — 5

Policy rank — 27


2. Florida — 69.11

3. New Jersey — 68.52 — #1 ID theft rank

4. Delaware — 68.34


5. California

Total score — 64.12

ID theft rank — 6

Fraud rank — 17

Policy rank — 16


6. District of Columbia — 63.89

7. New York — 62.17

8. West Virginia — 62.10

9. Michigan — 61.67

10. North Dakota — 61.64


The rest of the PIA Western Alliance States

14. New Mexico

Total score — 59.38

ID theft rank — 13

Fraud rank — 21

Policy rank — 27


18. Oregon

Total score — 57.06

ID theft rank — 33

Fraud rank — 4

Policy rank — 18


21. Arizona

Total score — 56.35

ID theft rank — 17

Fraud rank — 16

Policy rank — 41


33. Washington

Total score — 49.31

ID theft rank — 27

Fraud rank — 38

Policy rank — 18


38. Idaho

Total score — 45.48

ID theft rank — 37

Fraud rank — 43

Policy rank — 5


39. Alaska

Total score — 44.38

ID theft rank — 38

Fraud rank — 39

Policy rank — 18


43. Montana

Total score — 42.72

ID theft rank — 41

Fraud rank — 42

Policy rank — 27


WalletHub also offered some security information:


Emphasize Email Security: It’s obviously important to use strong passwords for all financial accounts, but you may not realize how essential it is to focus on email. Your primary email address will likely serve as your username and means of resetting your password on other websites. If it’s vulnerable, all of your other accounts will be, too. As a result, make sure to use an especially secure password and establish two-step verification for this account.


Sign Up for Credit Monitoring: Credit monitoring is the best way to keep tabs on your credit report. It provides peace of mind in the form of alerts about important changes to your file, including potential signs of identity theft. WalletHub offers free monitoring of your TransUnion credit report.


Leverage Account Alerts & Update Contact Info: Setting up online management for all of your financial accounts (e.g., credit cards, loans, Social Security), and keeping your phone number, email address and street address up to date will make them harder for identity thieves to hijack. Establishing alerts for changes to your contact info and other suspicious account activity will serve as a safeguard.


Use Common Sense Online: Don’t open emails you don’t recognize. Don’t download files from untrustworthy sources. Don’t send account numbers and passwords via email or messenger applications. And don’t enter financial or personal information into websites that lack the “https” prefix in their URLs.


Source links: IBM, WalletHub

Tags:  criminals targeting companies  cyber crime  data breaches 2018  insurance content  pia western alliance 

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It's a training tool so powerful that we're giving it to our members FREE

Posted By PIA Staff Reporter, Tuesday, October 30, 2018


Q: Are the calculators easy-to-use?

A: If you can put numbers in an Excel spreadsheet, you can use this tool to enter your own data and create "what if" data scenarios that are specific to your insurance agency.

The tool will take your data and adjust factors to reveal opportunities for improved retention, increased sales goals and account-rounding activities (for up to the next 5 years).

Since results from these calculator tools are not static, agencies can create “what if” scenarios and improve their bottom-line results by adjusting factors including improved retention, increased sales goals and ramping up account-rounding activities.


Q:  Then what?

 A:  Agencies are then offered three turn-key approaches.for use in their own agencies.

(1) The first approachentitled “Asking Customers The Right Questions” is built on a proven strategy successful agencies are already using to enhance both growth and profitability.

(2) The second turn key approach.focuses on both retention and lead generation. It is the “Claim Alert Lead Program” and directed towards an agency’s current homeowners clients.

(3) The third turn-key deliverable tool, “Conducting a Young Driver Seminar” is designed to help enhance an agency’s overall image not only with their current customers, but potentially, with everyone in their community.

Each of these approaches is comprehensive and includes a series of guides and step-by-step instructions for implementation by an agency.


Q: How much does it cost to utilize this tool?

A:  This valuable tool, with powerful analytics, is FREE to PIA agent members by PIA National and the PIA Partnership. You must be a member and logged into PIA National to access the Partnership program tools.


Apply for membership PIA Western Alliance


Q:  Who came up with this tool?

A: The PIA Partnership, originally established as the Company Council of Executive Officers (CCEO) in 1996, is a group of insurance companies that share resources and work closely with PIA National to conduct research and develop tools and resources designed to benefit professional independent insurance agents.


Q:  Who are the participating carriers in the PIA Partnership


Tags:  Growth and Profit Tool  Membership Benefits  PIA  PIA Western Alliance  PIA Western Alliance Growth and Profit Tool 

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Around the PIA Western Alliance States

Posted By PIA Staff Reporter, Tuesday, October 30, 2018


Proposition 103

is 30-Years Old: The Consumer Federation of America (CFA) says California’s Proposition 103 — the insurance reform law — has saved consumers and California’s drivers $154 billion.

Since 1989 — the Consumer Watchdog says — auto liability premiums have dropped by 5.7%. Liability premiums — however — have risen in the state and around the nation by 58.5%.

Prop 103 author and Consumer Watchdog founder Harvey Rosenfield said, “Three decades ago, California voters joined together with tens of thousands of small donations to put Proposition 103 on the ballot and pass it, despite an unprecedented $63 million campaign of lies and deception by the insurance industry.”

The statement comes on upcoming 30th anniversary of the bill’s passage. “$154 billion is a 30th birthday gift from Prop 103 to the people of California, rewarding a battle against insurance company overcharges and abuses that has been waged every day for the last three decades,” Rosenfield noted.

Source link: Insurance Business America



Work Comp Changes for First Responders

Six legislators have joined in a bipartisan effort to support a bill to allow first responders to get workers’ compensation coverage for psychological injuries.

Current law says such a claim can only be filed when physical injuries accompany the incident. House Democratic Leader Mat Erpelding is a Boise Democrat and the bill’s primary sponsor. He said, “For too many years, (first responders) have not had the ability to get the services they need as a result of the job.”

Senate Majority Leader and Boise Republican Chuck Winder agrees and supports the bill.

Source link: Idaho Press



Work Comp Earnings

Nevada’s work comp program Employers Holdings, Inc. posted third quarter earnings of $47.6 million. The profits hit $1.43 per share and after adjustments ended up at 98-cents per share. Revenue was $228.9 million.

Shares have declined — however — by almost 10% since the start of 2018.



From the Department of insurance: The Oregon Division of Financial Regulation recently announced the following Proposed Rulemaking hearing

Establishes reimbursement rates for out-of-network services provided at in-network health care facilities

Rules affected: OAR 836-053-1600, 836-053-1605, 836-053-1610, 836-053-1615

Adopt definitions of: anesthesia conversion factor; base units; base rate; CMS; CPT; CPI adjustment; director; geographic rating area; modifier adjustment; out-of-network reimbursement; physical status units; Q modifier adjustment; and time units.

ORS 743B.287, as amended by Senate Bill 1549 (2018), requires an insurer offering a health benefit plan and a health care service contractor to reimburse an out-of-network provider for emergency services or other covered inpatient or outpatient services provided at an in-network health care facility. The statute directs the Department of Consumer and Business Services (DCBS) to promulgate rules for calculating reimbursement rates.

The statute requires that reimbursement be equal to the median allowed amount paid to in-network health care providers by commercial insurers in this state, based on data collected under ORS 442.466 for the 2015 calendar year, adjusted annually using the U.S. City Average Consumer Price Index for All Urban Consumers (All Items) (CPI-U) as published by the Bureau of Labor Statistics of the United States Department of Labor. It allows reimbursement to be adjusted based on the differences in allowed amounts paid to health care providers in certain geographic areas of this state.


Filed: October 23, 2018

Public hearing: November 27, 2018 1:30 p.m.

Last day for public comment: December 4, 2018, 5 p.m.

The agency requests public comment on whether other options should be considered for achieving the rule's substantive goals while reducing the negative economic impact of the rule on business.

For more information on this proposed rule, please visit the Division's website:



Rules to change for commercial drivers with diabetes

An upcoming change in federal rules will make it more convenient for commercial driver license holders who use insulin to control diabetes to meet medical requirements.

If you have questions about the federal medical requirements, contact a Certified Medical Examiner listed on the FMCSA National Registry or FMCSA Medical Programs:

Website: www.fmcsa.dot.gov/regulations/medical

Email: FMCTECHSUP@dot.gov

CDL holders who pass their medical examination after Nov. 19, 2018, will no longer need a federal exemption or state waiver. Instead, they will use a glucometer device that measures their blood sugar level daily and stores the results for the medical provider who manages their diabetes.

Each driver’s current waiver or exemption will remain valid until its expiration date, but after Nov. 19 CDL holders can switch anytime to the new process by getting a new medical examiner’s certificate. A copy of the new medical certificate still must be filed with DMV anytime one is issued.

Once a CDL holder with a waiver or exemption gets a new medical certificate under the new rules, it is important for the driver to inform DMV when filing their new certificate.

Drivers need to send their new certificate to DMV in one of two ways:

Email a photo of the new certificate with “Waiver Clerk” in the subject line, name and license number to dsmec@odot.state.or.us.

Mail a copy to: DMV – DSU Waiver Clerk, 1905 Lana Ave. NE, Salem OR 97314.

To switch to the new method, a medical provider must fill out an assessment form from the Federal Motor Carrier Safety Administration. Form 5870 will be available at the FMCSA medical site here: https://www.fmcsa.dot.gov/regulations/medical

The driver’s medical provider who manages their diabetes will need 90 days of test results to complete the assessment. CDL holders are encouraged to start working with their medical provider before their current waiver expires because of the 90-day period.

A 90-day medical examination certificate may be issued if the driver is unable to start the new method in time to provide 90 days of test results and otherwise meets CDL medical requirements. A CDL holder who uses insulin for diabetes can then accumulate the needed test results to qualify for the one-year certificate.

Drivers who wish to change their driving type to non-excepted interstate after they get a new medical examination certificate can do so by visiting their local DMV office.


The Oregon Division of Financial Regulation recently announced the following Proposed Rulemaking hearing


Adoption of 2018 Annual and 2019 Quarterly Statement Blanks and Instructions for Insurers

Rules affected: OAR 836-011-0000

Rule Summary:

Amends for the purpose of prescribing: (1) the required financial statement forms, with instructions, to be filed annually by insurers; (2) the required financial statement forms, with instructions, to be filed quarterly by insurers; and (3) the required annual statement supplements, with instructions, to be filed by insurers, for the 2018 annual and 2019 quarterly reporting years.


Need for Rules:

ORS 731.574 requires insurers to file annual financial statements with the Director of the Department of Consumer and Business Services, and authorizes the Director to prescribe use of the annual statement blank and instructions prepared by the National Association of Insurance Commissioners (NAIC) for such purpose. The Director has chosen to exercise such authority through rulemaking, and has routinely updated the rule to reflect the then current blanks and instructions.

Commencing with the 2018 reporting year, the Director added a NAIC quarterly statement blank requirement to the rule in response to a concern that it did not clearly express such filing expectation. Inclusion of the quarterly statement blank requirement provides guidance to insurers, and is consistent with accreditation standards established by the NAIC.

Filed: October 24, 2018

Public hearing: November 27, 2018 9:00 a.m.

Last day for public comment: December 4, 2018, 5 p.m.

The agency requests public comment on whether other options should be considered for achieving the rule's substantive goals while reducing the negative economic impact of the rule on business.

For more information on this proposed rule, please visit the Division's website:




From the Department of Insurance: R2018-11 proposed rule posted

We have released the proposed rule language on (R 2018-11). The Commissioner is considering adopting rules for property insurers, except commercial, to provide goods and/or services to their insureds in order to mitigate or prevent losses.

We scheduled a public hearing on the rule:

When: November 27, 2018 at 12:00 p.m.

Where: Office of the Insurance Commissioner, 5000 Capitol Blvd, SE, Tumwater, WA 98501

Comments on the proposed rule language are due November 26, 2018; please send them to rulescoordinator@oic.wa.gov.


Adverse notifications stakeholder draft posted

We released a stakeholder draft for the Adverse notifications rule (R 2018-09). The purpose of this rulemaking is to increase consumer awareness of agency help for consumers with their insurance-related questions. It also promotes fair and efficient regulation of insurance by requiring contact information for the Office of the Insurance Commissioner on adverse notifications sent by insurers.

When: November 8, 2018 at 3:00 p.m.

Where: 5000 Capitol Blvd SE, Tumwater WA 98501

Comments on the stakeholder draft are due November 9, 2018; please send them to rulescoordinator@oic.wa.gov.


Charitable Gift Annuities proposed rule posted

We are starting the proposed rulemaking (R2018-14) to update and clarify accounting requirements for the definition of unrestricted net assets for charities that issue charitable gift annuities.

Comments are due Nov. 26, 2018; please sent them to rulescoordinator@oic.wa.gov

For more information, including the notice of proposed rulemaking (CR-102), please visit the rule’s webpage — https://www.insurance.wa.gov/charitable-gift-annuities-r-2018-13?utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term=

Adjuster licensing special education criteria proposed rule posted

We are starting the proposed rulemaking (R2018-14) to create new and amend some existing sections of WAC 284-17-123 to clarify the special education condition found in RCW 48.17.380(3)(d) for an adjuster license candidate.

Comments are due Nov. 27, 2018; please sent them to rulescoordinator@oic.wa.gov

For more information, including the notice of proposed rulemaking (CR-102), please visit the rule’s webpage — https://www.insurance.wa.gov/adjuster-licensing-special-education-criteria-r-2018-14?utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term=


Short-term medical plans rule adopted

The federal government recently adopted a rule related to short-term limited duration insurance.  The federal rule would substantially expand the allowable duration of this type of insurance.  In response to the federal rule, the Insurance Commissioner has clarified the standards and process for the filing of short-term limited duration medical plans sold to Washington consumers.

The Insurance Commissioner’s rules set the maximum duration of short-term limited duration medical plans at three months, establish minimum standards for these plans and include consumer disclosure requirements.  

For more information, including the adopted rule (CR-103), please visit the rule's webpage — https://www.insurance.wa.gov/short-term-medical-plans-r-2018-01?utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term=

Tags:  Around the PIA Western Alliance States  Harvey Rosenfield  Insurance  PIA Western Alliance 

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Last Call — The Annual PIA Montana Conference

Posted By Staff Reporter, Tuesday, October 23, 2018

The annual Montana joint conference opens in Missoula this Thursday, October 25th - October 26th

The conference will be held at the DoubleTree by Hilton Missoula Edgewater.

The title sponsors this year are Liberty Mutual and Safeco. Click here to see the other sponsors of the annual conference.

It’s not too late to pre-register. Or you can register on opening day. What is important — if you’re a Montana agent employed by an agency or self-employed, or CSR, or a marketing representative — is that you attend.

Since it is the only statewide conference of the year, the annual Montana conference is the only place where you can learn from industry experts, network with other agents and company representatives and have some fun.


  • And don’t forget we’ve got a great Trade Show that will showcase the latest in products and services. Trade Show theme is Board Games.  Come visit with our company partners, play some games and be part of it all!


  • Agents are also eligible for the conference grand prize of $500.


  • As we do every year, the PIA of Montana will give out our annual agent of the year and company person of the year awards. The awards will be given out at the Awards Luncheon on Thursday.


  • Another big plus for attending — and some think the most important plus — is education. You can earn you up to 12 CE Credits. Five is possible Thursday and another seven can be picked up on Friday.


Here are the sessions:

  Technology Impacts on Our Industry and How ACT Helps Agents Respond — 3 CE

  X,Y, and Z – Can Younger Generations Keep Insurance Alive? — 2 CE

  Defending Employment Claims from the Beginning — 2 CE

  Safety in Montana: There is Hope! — 1 CE

  Uber, Lyft & The Ride Share Economy — 2 CE

  Employment Practices Liability Coverages — 3 CE

  Legislative Changes — 1 CE

  Errors & Omissions: It’s not a problem until it’s a problem — 3 CE

  BnB Rentals, Drones, Autonomous Vehicles and other Miscellaneous things that Cause Loss Issues — 3 CE


Find out more information

Click here to register

Click here for the agenda

Click here for more information on the sessions

To reserve your room at the DoubleTree by Hilton Missoula Edgewater, click here

Tags:  2018 Montana Joint Conference  Missoula Montana  PIA Events  PIA Western Alliance 

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An Insurance Agent Nightmare? Google Gives Insurance Another Shot

Posted By Staff Reporter, Tuesday, October 23, 2018

In 2016 Google tried insurance. Failed. Bagged the idea of providing auto insurance to the general public. But did Google fully dump the idea of being involved in insurance?


Maybe not.

Capital G is the investor. It’s Google’s equity investment fund firm. Capital G has picked up a minority interest Applied Systems. Many independent insurance agents use the technology and cloud-based software provided by the company.

Agents may — says Applied Systems CEO Reid French — see this Google’s second foray into insurance as a threat. He assures us that it is not.

“There are many agents that have wanted to have greater access to high technology. The vast majority will view this, with the facts, as super-duper positive for Applied and for the industry,” he said.

No financial terms were disclosed but French said it is a significant investment. “It’s not small. They made a legitimate commitment…it’s real money,” French added.

Google says it is going to give as much as it gets. Applied Systems will have access to artificial intelligence, machine learning and digital marketing. Those are huge for any business.

Another worry of insurance — and consumers — is that Google will use this as a way to gather consumer data for its own use. French said this is not true at all.

If you were going to be misinformed, you might say Google entered this partnership to get access to all the insurance data that exists in Applied’s cloud or customer applications. The short answer is none of them have any rights to our customer data,” French said.

One thing it will do — he said — is learn the business of insurance. “Our industry deserves the ability to use that kind of technology, and I think it sets us up really, really well for the next digital age of insurance,” French said.

By the way, if you’re curious. Applied Systems picked up $388 million in revenue through the third quarter of this year.

Capital G is also upping its investments in other companies like Lyft, Airbnb, SurveyMonkey and Zscaler. It’s CEO Gene Frantz said the company wants bring “some of the world’s leading experts at Google and Alphabet [together] to drive innovation within the global insurance ecosystem.”

By the way, we know that Amazon — like Google — has been poking at the idea of getting involved in insurance. Rumors now are spinning wildly that Uber is also going to get into insurance and set up an insurance company for its drivers.

Uber’s Curtis Scott said no, no, no. The company will be an “intelligent purchaser” of insurance and work with insurance carriers, agents and brokers to place insurance for its drivers and that’s as far as it will go.

“No, to be honest, we’re trying to get out of the insurance business. Insurance companies are good at being insurance companies and that’s hard to do,” he said.

The company has — however — partnered with Allstate, Farmers, James River Insurance and Progressive to help its drivers purchase commercial insurance. Other companies — not working directly with Uber but that provide coverage for ridesharing drivers — include Geico, Slice, State Farm, American Family, Liberty Mutual, MAPFRE, Mercury, Erie, Travelers, and MetLife.


Source link: Carrier Management, Insurance Journal

Tags:  applied systems  capital g  Google  insurance content  insurance industry  pia western alliance 

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Too-Big-To-Fail — Prudential Gets Some Relief

Posted By Staff Reporter, Tuesday, October 23, 2018

MetLife fought the too-big-to-fail designation and won. So did AIG. Now Prudential is off the hook, too.

Some background. As part of 2010’s Wall Street Reforming Dodd-Frank Act, all large banks were automatically given the Systemically Important Financial Institution (SIFI) designation. It’s also called too-big-to-fail. That means their failure could be very destructive to the U.S. economy so they are now subject to more regulation and increased financial scrutiny.

Other financial institutions are targeted in Dodd-Frank as well. Among the targets are insurance companies. AIG automatically — and rightfully — received the designation. So did MetLife and Prudential.

MetLife fought the designation in court and won. As noted at the beginning of this story, the Financial Stability Oversight Council (FSOC), headed by Treasury Secretary Steven Mnuchin, dropped AIG’s designation and now has dropped Prudential’s.

The reasoning of Mnuchin, the Trump administration and FSOC, is to move away from specific companies and to instead focus on broader risks. “The Council’s decision today follows extensive engagement with the company and a detailed analysis showing that there is not a significant risk that the company could pose a threat to financial stability,” Mnuchin said. “The Council has continued to act decisively to remove any designation that is not warranted.”

Prudential — who almost fought the designation when it was first given but decided against taking action — is happy to lose the SIFI moniker.

In a statement, Prudential said, “We are pleased with this decision, which affirms our longstanding belief that Prudential never met the standard for designation. This outcome reflects Prudential’s sustainable business model, capital strength and comprehensive risk management, which have and continue to enable us to fulfill our promises to our customers, deliver consistent performance and meet regulatory obligations.”

The National Association of Insurance Commissioners (NAIC) has fought the FSOC and the SIFI designations for insurers behind the scenes. The association — and other insurance groups and individual insurance commissioners — has said all along that the state regulations insurance companies are under is sufficient to monitor what they are doing financially. 

During the Obama administration those arguments fell on deaf ears. Now things have changed. And changed for the better. Current NAIC President and Tennessee Insurance Commissioner Julie Mix McPeak put it in perspective and said, “This action reflects a greater appreciation of the state insurance regulatory regime and enhancements made to our group supervisory tools.”

Maine Insurance Commissioner Eric Cioppa is the NAIC president-elect. He also agrees with the decision. “The rationale justifying the de-designation reflects a revised analytical approach that is consistent with the insurance business model and its regulation,” he said. “My predecessors have done an excellent job educating the Council on how insurance is regulated and the tools state insurance departments employ to address any potential risks.”

Not everyone is happy with the FSOC decision. Gregg Gelzinis of the Center for American Progress said the decision makes no sense. He contends Prudential’s financial footprint is larger today than it was when the company received the SIFI designation.


“Under Secretary Mnuchin’s watch, the number of nonbank financial companies facing enhanced scrutiny has dwindled to zero. If another such company triggers or aggravates the next financial crisis, decisions such as this will be to blame,” he said.


Last. The other non-bank SIFI designation was given to GE Capital. The company did some restructuring and its SIFI label was removed in 2016.


Source links: Insurance Journal, NAIC

Tags:  AIG  insurance content  insurance industry  metlife  PIA Western Alliance  Prudential 

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Good news! The First Half of 2018 — Very Good for Insurers

Posted By Staff Reporter, Tuesday, October 23, 2018


ISO — a Verisk Analytics business — and the Property Casualty Insurers Association of Amercia (PCI) regularly analyze the financial results of the nation’s insurers. In the analysis of the first half of 2018, the ISO and PCI found that the post-tax income of insurance more than doubled when compared to the first half of 2017.

 The income figure is $34 billion compared to less than $17 million a year ago.


The two associations say lower catastrophe losses, rising premiums and a jump in investment income is the reason for the incredible increase. 

  Losses and loss adjustment expenses from catastrophes dropped from $18 billion to $14.6 billion

  Net written premiums rose 13.3% compared to 4.1% a year ago

  The premium increases are found in rising auto rates and reinsurance changes

  Underwriting saw a $6 billion net gain and is up from the $4.6 billion underwriting loss last year

  Net investment income rose 14.6% to $26.9 billion compared to $23.4 billion in 2017

  The net income increase came from dividends from subsidiaries that aren’t insurance focused

  Net income after taxes is up to $16.9 billion from 7.5% last year

  The combined ratio improved to 97.7% from 101.9%

  The annualized rate of return on average surplus doubled to 9% from 4.2%

  Net written premiums jumped 10.9% compared to 4.2% in 2017

Robert Gordon is the PCI’s Senior Vice President for Policy, Research and International. He said, “The property/casualty insurance industry got off to a solid start in 2018. There were fewer catastrophic events in the first half of the year, which helped improve the combined ratio to 96.2 percent, the strongest result in the last decade.”

 He also noted that not all is rosy going forward.


“For the second half of 2018, the industry still faces the tail end of the wildfire and hurricane seasons, including losses from Hurricanes Florence and Michael; but the industry is in good health with a strong balance sheet to serve consumer needs and is enjoying record-high J.D. Power customer service ratings,” he said.


Source links: Reinsurance News, Carrier Management, Insurance Journal

Tags:  insurance content  iso  pci  PIA Western Alliance  property casualty insurers association of america  verisk analytics 

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Can you guess which states have the highest workman's comp rates?

Posted By Staff Reporter, Tuesday, October 23, 2018


The Oregon Department of Consumer and Business Services does a national workers’ compensation rate survey every couple of years. Though it covers all states, the report is titled the Oregon Workers’ Compensation Premium Rate Ranking Summary.

The report finds New York and the PIA Western Alliance state of California with the highest work comp rates in the nation. That’s bad news for the Golden State. However, high as they are, rates did fall in California as they did — on average — for the rest of the nation. And they fell considerably.

Premium rates from the 51 jurisdictions surveyed had a median cost of $1.70 per $100. That’s a huge drop — 7.6% — from 2016’s $1.84. It is the most the average rate has fallen since 2012.

Jay Dotter and Chris Day authored the survey for Oregon’s insurance department. Dotter said,


We’ve noticed that generally everyone’s still moving down. It’s the most we’ve seen for a while. For (National council on Compensation Insurance) states, loss costs have been dropping,” Dotter noted. “We’ve been seeing that the losses due to medical and indemnity have been going down.”


Day said the full report won’t be out for another couple of months so the figures could change a little.


The worst rates:

New York’s rate is $3.08 — or 181% of the median

California is second at $2.87 — or 169% of the median

New Jersey is third at $2.84)

The PIA Western Alliance state of Alaska is fourth at $2.51

Delaware’s $2.50 is fifth


The lowest rates:

North Dakota — 82-cents

Indiana — 87-cents

Arkansas — 90-cents

West Virginia — 91-cents


By the way — Oregon — who did the study, sits at 46th and has a $1.15 rate.


Here are the rate averages in the PIA Western Alliance States:

Alaska — $2.50 - $2.99

Arizona — Under $1.50

California — $2.50 - $2.99

Idaho — $1.50 - $1.99

Montana — $2.00 - $2.49

Nevada — Under $1.50

New Mexico — $1.50 - $1.99

Oregon — Under $1.50

Washington — $1.50 - $1.99


Source link: Insurance Journal

Tags:  insurance content  oregon department of consumer and business service  pia western alliance  workman's compensation 

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