Special Report: Nationwide’s Commercial Lines Protection Survey — Part 2

Last week we did the first part of a story on Nationwide’s recent commercial lines protection survey. To get its statistics, the insurer asked for responses from commercial property owners, business owners and construction owners and builders as well as independent insurance agents who sell commercial property insurance.

Agency principals and producers and CSRs were interviewed in wildfire risk states that include the PIA Western Alliance states of Washington, Oregon, Idaho, Montana, California, Nevada, Arizona and New Mexico as well as Utah, Wyoming, Colorado and Kentucky.

The hurricane prone states samples came from North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi and Texas.

Here are the results of the second half of the survey:

Most property owners think they are prepared for a severe weather event at their business and most agents agree with their assessment.

Agents: 69% of agents believe their customers are prepared

59% of owners say they are very prepared

10% are extremely prepared

30% say they are somewhat prepared

1% say they are not prepared at all

Property owners: Nationally — on average — 67% say they prepared

Breaking it down the national numbers:

8% are extremely prepared

59% say they are very prepared

33% think they are somewhat prepared

62% of owners in the wildfire-prone states say they are prepared:

17% say they are extremely prepared

45% claim they are very prepared

37% are somewhat prepared

1% are not prepared at all

In the Hurricane-risk states, 70% claim to be prepared:

9% contend they are extremely prepared

61% say they are very prepared

29% say they are somewhat prepared

1% are not prepared at all

All business owners have a plan to prevent damage to their property and believe their workers know what to do during a severe weather events

National average: 98%

Wildfire prone states average: 94%

Hurricane prone state average: 97%

A breakdown of the severe weather response statistics

Leadership knows what to do:

National average: 100%

Wildfire prone states: 100%

Hurricane prone states: 99%

Workers know what to do:

National average: 96%

Wildfire prone states:  91%

Hurricane prone states: 94%

There is a plan in place to keep the business operational if a severe weather even occurs:

National average: 86%

Wildfire prone states:  77%

Hurricane prone states: 82%

Almost all property owners are currently working with an agent to make sure they are adequately covered for severe weather.

Worked with an agent to ensure appropriate coverage for a severe weather event — national average:

Yes, and I have coverage currently: 82%

Yes, in the past but don’t currently have coverage: 18%

Wildfire-risk states:

Yes, and I have coverage currently: 83%

Yes, in the past but don’t currently have coverage: 16%

No, I have not done this: 1%

Hurricane-risk states:

Yes, and I have coverage currently: 88%

Yes, in the past but don’t currently have coverage: 12%

Less than half of agents prioritize promoting insurance carrier solutions and resources for protecting against severe weather to their clients.

42% of agents say this is a priority

30% say yes, but they don’t prioritize it

29% of agents say yes, but only if the customer asks

17% of agents say no.

Agents surveyed say most of their clients do not have an appropriate level of coverage for severe weather.

The percent of commercial clients with an appropriate level of severe weather insurance coverage:

More than 50% — 48%

Less than 50% — 52%

Breakdown for 48% which is 90% to less than 60%

90% to 100%: 0%

80% to less than 90%: 1%

80% to less than 80%: 2%

60% to less than 70%: 13%

50% to less than 60%: 33%

Breakdown for 52% which is 40% to less than 10%

40% to less than 50%: 34%

30% to less than 40%: 14%

20% to less than 30%: 3%

10% to less than 20%: 1%

Less than 10%: 0

Most property owners are willing to spend more to increase the resiliency of their structures. Residents living in the wildfire states are willing to spend the most.

The average amount they’re willing to spend: $20,000

Willingness to spend more to increase the business structure’s resiliency nationally: 53%

Willingness to spend more to increase the business structure’s resiliency in wildfire-risk states: 57%

Willingness to spend more to increase the business structure’s resiliency in hurricane-risk states: 66%

Most property owners have talked to an agent about ways to mitigate severe weather damage.

Wind damage

National: 78%

Wildfire states: 71%

Hurricane-risk states: 75%

Roof damage

National: 69%

Wildfire states: 72%

Hurricane-risk states: 76%

Water intrusion

National: 61%

Wildfire states: 35%

Hurricane-risk states: 71%

Agents regularly discuss how to mitigate weather damage with their contractual liability insurance clients.

Wind damage

Frequently: 86%

Often: 33%

Sometimes: 49%

Rarely: 14%

Weather intrusion

Frequently: 81%

Often: 41%

Sometimes: 40%

Rarely: 19%

Roof damage

Frequenty: 80%

Often: 34%

Sometimes: 47%

Rarely: 20%

Outside of national news and websites, these are the top sources of information about mitigating severe weather risk are government, insurance carriers and trade outlets.

Severe weather risk prevention resources nationally:

1. National News: 67%

2. Online web searches: 66%

3. Government provided resources: 45%

4. FEMA resources: 34%

5. Insurance providers: 49%

6. Trade outlets: 25%

7. Other property owners in my areas: 18%

Severe weather risk prevention resources wildfire-risk states:

1. National News: 77%

2. Online web searches: 68%

3. Government provided resources: 44%

4. FEMA resources: 42%

5. Insurance providers: 30%

6. Trade outlets: 29%

7. Other property owners in my areas: 19%

Severe weather risk prevention resources hurricane-risk states:

1. National News: 73%

2. Online web searches: 58%

3. Government provided resources: 50%

4. FEMA resources: 57%

5. Insurance providers: 33%

6. Trade outlets: 20%

7. Other property owners in my areas: 12%

Source link: Nationwide Severe Weather Risk Survey — https://bit.ly/3IdrYDQ

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


PIA WESTERN ALLIANCE VALUES OUR STERLING PARTNERS

More Industry News