Category: Property & Casualty

The Current State of Auto Coverage What you should know

Most businesses and individuals in the U.S. are experiencing considerable rate increases on auto coverage due to significant losses in the market. In 2016, carriers experienced a 13% spike in auto losses – their worst underwriting performance for the line since 2001 – and S&P projects that auto losses will increase by another nearly 7% this year, hitting a record high of approximately $154 billion. With the combined ratio at a 15-year high of 110%, it’s no surprise that carriers have been seeking rate increases into the double digits across their entire auto book.

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ACE-Navigator: Support for Your Workplace Injury Management Process

The once-popular television crime documentary 48 Hours got its name from a law-enforcement principle that the most critical time in solving a homicide case is the first 48 hours. In short, a case can go “cold” quickly, placing a premium on a swift, thorough and well-orchestrated response by investigators. A similar dynamic is present in worker’s compensation, although the critical window is often quite a bit shorter. The consequence of a delayed or incomplete response to a workplace injury or incident is routinely a sharp escalation in costs. 

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Service Interruption and Business Income … Are You Covered?

When it comes to explaining the need for various types of coverage to a client, we are often stuck using hypothetical scenarios. Recent developments in North Carolina’s Outer Banks provide a real-time example of a sometimes confusing coverage, business income.

On July 27, PCL Construction drove a steel casing through an underground cable that supplies power to parts of North Carolina’s Outer Banks. As a result, vacationers left and residents were without power for about a week. This loss of power could not have come at a worse time for the businesses in this area. Based on last year’s tourism numbers, Hatteras Island businesses could have easily lost $2 million for each day of the outage, according to Dare County officials. Some businesses may be able to withstand the loss of revenues for this time, while other businesses face the real possibility of closing the doors for good unless they have insurance coverage for the lost revenue. 

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Affordable Housing’s Economic Impact

The economic impact of affordable housing at the local level is significant. In fact, the development of affordable housing in communities has many short- and long-term economic benefits. This industry combines the investment potential of real estate development with the mission of helping low- and moderate-income individuals and families, while impacting the local economy through job creation and increased government revenue.

 Impact on Employment

One of the primary ways affordable housing positively impacts the economy is through direct and indirect job creation. In Virginia alone, it is estimated that from 1996-2016 266,135 short-term jobs and 10,245 long-term jobs were created due to affordable housing development, according to a report from the Virginia Housing Alliance. Another study released earlier this year, concluded that a total of 329,000 jobs were supported throughout New York State between 2011 and 2015 due to the construction or preservation of affordable housing units. 

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Run-off Insurance A Necessity in Today's Market

Today’s merger and acquisition (M&A) landscape is hyper active. In 2016 alone, there were more than 12,000 M&A deals in the U.S. These opportunities often create significant financial opportunity for the purchasing and selling entities. Alternatively, during the same period corporate bankruptcies totaled over 46,000, revealing that many companies are facing significant difficulties.

Both M&A events and bankruptcies typically lead to significant changes in a company’s corporate structure, which in turn impacts the exposures faced by its directors and officers (D&O), and their respective insurers. So, how does a D&O policy respond to changes in the structure of a business? When should management consider run-off insurance for ongoing protection?  

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