Insurance Journal TV » Policy & Regulation

How New NRRA Regulations and California’s AB315 Will Change the Surplus Lines Industry

bpedroso — Mon, 01 Aug 2011 22:49:20 +0000

Jerry Sullivan, the head of the Sullivan Group, gives his views, largely positive, on how the Dodd-Frank NRRA regulations will require changes in the way the surplus lines industry operates, in this interview with Insurance Journal’s Charles Boyle.

Consolidation Nation

bpedroso — Mon, 13 Jun 2011 18:52:55 +0000

The big state agency that oversees insurance producers in New York State will soon become a whole lot bigger — and that’s left a lot of agents in the Empire State wondering just how that will affect them.

New York Evaluating Certificates of Insurance Problems

bpedroso — Wed, 18 May 2011 17:08:59 +0000

When clients ask insurance agents to alter certificates of insurance, it can create a lot of legal and liability issues. In New York, where it’s a major problem, some lawmakers are considering penalizing clients for even asking for changes. It could go a long way to eliminating a lot of those problems, says Dick Poppa, head of the Independent Insurance Agents & Brokers of New York.

Hone in on the “Home State” Definition in New Surplus Lines Regs

mtolk — Fri, 06 May 2011 10:00:13 +0000

On July 21, 2011, the Nonadmitted and Reinsurance Reform Act must be implemented. Key to complying with the new regulation, according to insurance regulatory attorney Richard Brown, is an understanding of the “home state” definition.

California Gears Up To Meet New Surplus Lines Guidelines

mtolk — Thu, 05 May 2011 10:00:42 +0000

With the Nonadmitted and Reinsurance Reform Act July 21, 2011, implementation deadline looming, California is gearing up to comply with new surplus lines regulations.

Interstate Compacts? Forget About Them

mtolk — Mon, 02 May 2011 20:56:16 +0000

In preparation for new surplus lines regulations, states are considering whether to join a surplus lines tax allocation compact to share surplus lines premium taxes. Recent activities have called into question whether large states are willing to participate in an allocation compact. But insurance regulatory attorney Richard Brown says it’s not important whether states join a compact or not.

N.Y. Agents Seek Principles for Health Insurance Exchange

bpedroso — Fri, 29 Apr 2011 15:06:20 +0000

Federal health care reform laws mandate that every state sets up a health insurance exchange. In New York, insurance agents plan to weigh in on the creation of the exchange by forming a coalition of trade groups to advocate for core principles for it.

Tips to Prepare for Surplus Lines Tax Reporting Changes

bpedroso — Wed, 27 Apr 2011 10:00:04 +0000

The surplus lines industry is facing a new deadline. On July 21, 2011, the Nonadmitted and Reinsurance Reform Act must be implemented. In this interview, insurance regulatory attorney Richard Brown shares what effects the NRRA will have on surplus lines brokers.

More information from Richard Brown on the effects of the NRRA can be found at www.insurancejournal.com.

Revealing Commissions is a Pain in the Neck

bpedroso — Fri, 22 Apr 2011 18:47:19 +0000

New York insurance agents must now reveal to their clients how much they’re paid, thanks to “transparency” regulations that went into effect in January. Agents say the that new regulation has created significant, daily problems in their offices. Among those problems: compliance, paperwork and potential E&O issues.

Spring Flooding Renews NFIP Anxiety

bpedroso — Wed, 20 Apr 2011 22:27:19 +0000

Agents across the country are concerned about what will happen in September when the most recent extension of the National Flood Insurance Program (NFIP) expires. On the wish list for a future program: A longer term solution to flood coverage that includes better protections — like business interruption —for property owners.

Catastrophe Models Don’t Tell Entire Story, Says Pioneer Clark

bpedroso — Mon, 11 Apr 2011 17:55:29 +0000

Karen Clark, who pioneered catastrophe modeling for property/casualty insurers, thinks insurers, rating agencies and regulators have become over-reliant on the models. The models are great tools but they are not always the best tool for all purposes and do not give the complete picture. Other approaches must also be used, says the consultant who now heads Karen Clark & Co.

Gridlock in a Divided Congress? Maybe Not.

bpedroso — Mon, 21 Feb 2011 14:47:53 +0000

The nation now has a divided Congress: Republicans control the House, Democrats control the Senate. For many, this is a recipe for gridlock. But Leigh Ann Pusey, president and CEO of the industry’s American Insurance Association, isn’t so sure. In this interview with Insurance Journal’s Andy Simpson, she predicts the Obama Administration and a divided Congress may be able to work together on economic issues.

Will Deficit Debate Affect Flood Insurance? Taxes?

bpedroso — Mon, 07 Feb 2011 12:15:59 +0000

Following the November elections, Congress and the White House, as well as states, have signaled that they will be focusing on deficit and debt issues in the year 2011. Might this debate affect the National Flood Insurance Program? Lee Ann Pusey, president and CEO of the industry’s American Insurance Association, thinks that is possible. In this interview with Insurance Journal’s Andy Simpson, she also suggests that the industry will have to be vigilant on the tax issue as states could be looking for new revenue sources.

Industry Can Count on Slow Economic Recovery in 2011

bpedroso — Mon, 31 Jan 2011 13:00:39 +0000

Insurance Information Institute Chief Economist Steven Weisbart gives his economic outlook for 2011.

How November Elections Changed Insurance Power in Washington

bpedroso — Fri, 21 Jan 2011 18:47:34 +0000

The November elections brought change to Washington as Republicans took control of the House of Representatives from Democrats. Leigh Ann Pusey, president and CEO of the industry’s American Insurance Association, discusses what the November elections may mean for the key Congressional committees that deal with insurance issues in this talk with Insurance Journal’s Andy Simpson.

Leadership In an Age of Uncertainty

bpedroso — Mon, 04 Oct 2010 22:01:59 +0000

The September 11 attacks, Hurricane Katrina, the financial crisis, and more recently the BP oil disaster– all events that have contributed, in the opinion of Kevin Kelley, CEO of Ironshore, to what is our age of uncertainty. At the recent MarketScout Entrepreneurial Insurance Symposium in Dallas, Kelley shared his thoughts on how the insurance industry can navigate and thrive in these times by when everybody seems to be just waiting for the next crisis.

Markets in Motion: Medical Marijuana Dispensaries

creese — Tue, 28 Sep 2010 23:58:09 +0000

Medical marijuana dispensary owners are vulnerable to some exposures that are unique to their business and product, but they also face many of the same exposures as other businesses, such as general liability and employment practices liability and data breach.

Some in the insurance industry have been hesitant to work with the medical marijuana segment because of the high risk and constantly changing state laws. However, the demand for coverage has increased in recent years and more insurance companies are looking into how they can specialize in this class.

In this edition of Markets in Motion, MyNewMarkets.com Associate Editor Amy O’Connor speaks with Burns & Wilcox in Sacramento, Calif., about how they are working closely with dispensaries to make sure their coverage needs are met, and with a Sacramento dispensary owner about how her insurance agent has helped protect her business.

How Some Florida Property Insurers Manage to Succeed

creese — Tue, 15 Jun 2010 20:21:21 +0000

About 50 Florida property insurers reported losses in 2009, even though there was no major storm. But that also means there were at least as many not losing money. What do they know, what are they doing, that the others aren’t? Insurance Journal’s Andy Simpson asked Kevin McCarty, insurance commissioner; James Graganella, president/CEO, Southern Fidelity and Capitol Preferred; and Jay Newman, chairman, one-year old Sawgrass Mutual for their thoughts on what makes some insurers more successful than others in the Sunshine State.

Some Florida Insurers Get a Break on Citizens Take-Out Policies

creese — Thu, 03 Jun 2010 00:25:40 +0000

For a number of years, Florida has had a program allowing insurers to take policies out of the state-backed Citizens Property Insurance. The original deal was that they took them out and had to stay on the policies for three years. Insurance Commissioner Kevin McCarty is relaxing that rule and allowing some of the insurers to non-renew some of the riskiest take-out policies early. He estimates it will affect about 20,000 to 30,000 policies. Jeff Grady of the Florida Association of Insurance Agents says agents aren’t thrilled about this change. In fact, he thinks it’s an indication that the whole take out program is a failure.

Florida’s Mitigation Credit Program: What Went Wrong?

creese — Thu, 27 May 2010 21:25:35 +0000

Florida’s program of premium credits for storm-proofed homes has been one of the contributors to the financial woes of some property insurers. The program appears to have encouraged fraud with millions of dollars in credits being awarded based on questionable inspections. Re-inspections found error rates as high as 80%. So how did such a well-intentioned program get out of control? The answers– and some fingerpointing– in this interview come from agency, carrier and regulatory points of view.

Florida’s Property Insurance Market 1 Year From Now

creese — Thu, 27 May 2010 18:36:31 +0000

Florida insurance leaders are asked to look beyond current legislation and the hurricane season to what they would like to see in the state’s property insurance market a year from now. Insurance Commissioner Kevin McCarty would like to see the state tackle some fundamental issues including coastal development, building codes and the government’s role in risk sharing. Insurance Journal’s Andy Simpson also speaks with Jeff Grady, president/CEO, Florida Association of Insurance Agents; James Graganella, president/CEO, Southern Fidelity and Capitol Preferred; and Jay Newman, chairman, one-year old Sawgrass Mutual.

Florida’s Troubled Property Market: The Agents’ View

creese — Thu, 27 May 2010 17:58:43 +0000

Insurance Journal’s Andy Simpson interviews Jeff Grady, president/CEO, Florida Association of Insurance Agents, on Florida’s troubled and politicized property insurance market, the Citizens’ takeout program, reinsurance requirements, MGAs, how SB2044 will help and what more needs to be done to fix the system. Grady discusses how important the market is to independent agents and isn’t shy about criticizing policymakers, public adjusters and Gov. Charlie Crist.

Why Florida Is Rethinking Its 1-in-100 Reinsurance Requirement

creese — Wed, 26 May 2010 23:42:00 +0000

Reinsurance for that 1-in-100 year storm. That’s a criterion that the Florida Office of Insurance Regulation has used for years in assessing property insurers’ reinsurance programs. It’s also a standard that some rating agencies use. But Florida Insurance Commissioner Kevin McCarty has decided to take a fresh look. He wants to look not just vertically at the exposure of the 1-in-100-year storm but also horizontally at the frequency of more moderate storms. Why the change now? McCarty, agents and two CEOs give their views.

MGAs Called Critical for Florida Property Market

creese — Mon, 24 May 2010 21:47:31 +0000

In Florida it’s not uncommon for an insurance holding company to have an affiliated managing general agency to which it pays fees. Those fees have come in for some criticism lately by some who think that insurance companies that say they are losing money are actually funneling profits to their MGAs. State officials have looked into two cases. However, even the critics agree that the model of the MGA has been important historically and will be critical to the future of the Florida property insurance market and any problems with it are really manageable.

Florida Insurance Chief: 85% Medical Ratio Will Hurt Agents

creese — Fri, 21 May 2010 16:46:46 +0000

Federal healthcare reforms call for major group health insurers to be held to an 85% loss ratio while insurers in the small and individual markets would have to achieve 80%. The government has some flexibility in setting the final ratios. Florida Insurance Commissioner Kevin McCarty is among those who thinks the ratio needs to be carefully defined and possibly lowered to ensure availability of sufficient products to consumers and a role for insurance agents.

Assessing Florida’s Omnibus Bill, SB2044

creese — Tue, 18 May 2010 00:11:57 +0000

Florida insurance leaders rate the recently passed property insurance legislation (SB2044) and how they expect it to help carriers, agents and consumers. Insurance Journal’s Andy Simpson interviews Jeff Grady, president/CEO, Florida Association of Insurance Agents; Kevin McCarty, insurance commissioner; James Graganella, president/CEO, Southern Fidelity and Capitol Preferred; and Jay Newman, chairman, one-year old Sawgrass Mutual.

Florida’s McCarty on Why Rates Are Not The Problem in Homeowners Market

creese — Wed, 12 May 2010 20:09:43 +0000

Florida has not deregulated homeowners insurance rates as some wanted and the Office of Insurance Regulation has been busy handling insurer rates filings—more than 1,300 since last April. Since January, close to 400 requests have been filed, with about 225 of all different types and sizes approved. Insurance Journal’s Andy Simpson asked Florida Insurance Commissioner Kevin McCarty about the rate increases granted over the past year and his agency’s approach to pricing regulation.

When Main Street Met Washington

bpedroso — Mon, 22 Mar 2010 22:04:52 +0000

Earlier this month, more than 1,000 Main Street insurance agents from around the country descended on Washington D.C. to lobby their congressmen about key issues facing their businesses. Insurance Journal was invited to film two groups of agents – one from Mississippi, another from Connecticut – as they made the rounds on Capitol Hill to sound off on health care reform, taxes and other issues. For agents, it was the opportunity not only to voice their opinions, but also to get an insider’s look at the day-to-day workings of American politics.

P/C Insurers Eye Healthcare Reform Spillover Effects

bpedroso — Tue, 22 Dec 2009 20:40:56 +0000

The ongoing debate over health care reform in Congress is not just a concern to health insurers. Property/casualty insurers, too, are watching for any spillover effects from provisions that have been considered, according to Dr. Robert Hartwig, president and economist at the Insurance Information Institute.

States, Insurers Grapple with Subsidized Property Insurance Markets

bpedroso — Tue, 22 Dec 2009 20:29:51 +0000

The exposure of various states’ residual markets for property insurance has grown from $55 billion to nearly $700 billion in the last two decades. Dr. Robert Hartwig, president and economist of the Insurance Information Institute, discusses how this has become a serious problem, particularly in Florida, for both public officials and private industry.

Another Tort Crisis Is Coming, Warns P/C Insurance Economist

bpedroso — Tue, 22 Dec 2009 20:23:27 +0000

When Democrats took control of Congress, an era of tort reforms ended, according to Dr. Robert Hartwig, president and economist at the Insurance Information Institute. In this interview with Insurance Journal’s Andrew Simpson, Hartwig warns that as a result of current politics favoring trial attorneys, another tort crisis is on the horizon.

Insurance Opportunities In the New Decade

bpedroso — Tue, 22 Dec 2009 19:52:14 +0000

The recession has taken its toll on many traditional businesses. But the good news is that, as these businesses recover along with the economy, there will also be opportunity for insurers to address the needs of some new growth industries over the next decade, according to Dr. Robert Hartwig, economist with the Insurance Information Institute. The new decade will be about more than insuring windmills.

Insurers Can’t Count on Investments, Advises III’s Hartwig

bpedroso — Tue, 22 Dec 2009 19:40:49 +0000

Property/casualty insurers’ investment income has been down and it isn’t going up any time soon, according to Dr. Robert Hartwig, president and economist for the Insurance Information Institute in this interview with Insurance Journal’s Andrew Simpson. How will insurers perform and price products in this environment and will regulators take note? Hartwig also discusses the prospects of insurers raising capital in today’s economy.

Insurance Regulators Take On Climate Change

bpedroso — Mon, 21 Dec 2009 19:04:42 +0000

Climate change is in the news and the insurance industry and those who regulate it are very much in the middle of the debate, as evidenced by the activity at the recent meeting of the National Association of Insurance Commissioners in San Francisco. Insurance Journal asked Commissioners Joel Ario of Pennsylvania and Mike Kreidler of Washington why climate change is important to them and the industry.

Media, Tech Markets Converge: Dodell On Keeping Up

bpedroso — Mon, 07 Dec 2009 19:51:27 +0000

The world is changing, with virtually every business now facing both media and technology exposures. Insurance needs to keep up, says Leib Dodell , former president and CEO of Media Professional Insurance, who is now part of the team launching a new specialty E&O facility based in Kansas City called ThinkRisk Underwriting Agency. In this interview with Insurance Journal’s Andrew Simpson, Dodell discusses how the insurance industry might adjust to keep up with the convergence of the media and technology marketplaces.

Economic Recovery Is Real But Uneven: Insurance Economist

bpedroso — Thu, 03 Dec 2009 00:14:07 +0000

Dr. Robert Hartwig, president and economist at the Insurance Information Institute, is the “go-to guy” when it comes to understanding economic and policy trends that affect the property and casualty insurance industry. He’s had a busy year explaining trends to insurance groups around the country. In this interview with Insurance Journal’s Andy Simpson, Dr. Hartwig touches on a number of subjects: the recovery, the financial challenges that face property/casualty insurers, and a new tort crisis in the making. Hartwig also discusses the future economy and the opportunities it might offer for the industry.

The Politics of Young Independent Agents

bpedroso — Mon, 15 Jun 2009 21:54:01 +0000

Imagine a world in which every independent agent is under age 40. How might agencies run differently? How might industry politics change? Young agent Joey O’Connor, vice president with Daniels & Eustis Agency in Louisiana, and the chairman of Big I’s Young Agent Committee, describes this brave young world in this interview with Insurance Journal’s Andrew Simpson.

Washington Reforms Depend on Agents, State Regulators

bpedroso — Wed, 10 Jun 2009 23:21:40 +0000

Health care reform and a financial services regulation overhaul are on the fast track in Congress and with the Obama Administration. The nature of the reforms will depend not only whether independent agents can get their message across to lawmakers but also on the credibility of state regulators, according to Charles Symington, senior VP for government affairs for the Independent Insurance Agents & Brokers of America (Big I).

How Main Street Agents Get Heard in Washington

bpedroso — Wed, 10 Jun 2009 23:12:50 +0000

It’s a new political climate in Washington. Charles Symington, senior VP for government affairs for the Independent Insurance Agents & Brokers of America (Big I), discusses how independent agents are working with Congress and the Obama Administration amid the AIG and Wall Street scandals. This is part of an interview with Insurance Journal’s Andrew Simpson on a day when Big I members from across the country met with their elected representatives on Capitol Hill.

Smart Growth in the P/C World

bpedroso — Wed, 10 Jun 2009 22:01:03 +0000

Being too big to fail is not really an issue in most of the property/casualty business, says Bob Restrepo, CEO of State Auto Insurance, a super regional carrier that is looking to grow and balance its personal and commercial book. Restrepo discusses growth and the pricing, acquisition and competitive environment in these excerpts from a wide-ranging interview with Insurance Journal’s Andrew Simpson.

Republican Woes and Insurance Agents in Washington

bpedroso — Thu, 21 May 2009 16:32:27 +0000

Republicans have limited power to influence the agenda in Washington these days on health care reform, the future of insurance regulation and other issues of concern to independent agents, notes Bob Rusbuldt, CEO and president of the Independent Insurance Agents of America (Big “I”).

Health Care Reform at Top of P/C Agents’ Agenda

bpedroso — Thu, 14 May 2009 23:38:37 +0000

Congress and the Obama Administration are serious about healthcare reform and the Big “I” and its CEO Bob Rusbuldt are as well. Rusbuldt explains why P/C agents have a stake in the politics of health care reform.

Demotech on Florida Property Insurance and Domestic Insurers

creese — Thu, 07 May 2009 00:42:42 +0000

Insurance Journal’s Andrew Simpson interviews Joseph Petrelli of the actuarial firm Demotech, Inc. on the Florida property insurance market, the state hurricane fund and the contingency plans of the domestic property insurers.

What Most Irks Independent Agents With Their Carriers

creese — Tue, 05 May 2009 21:18:20 +0000

Ask property casualty independent agents today what irks them most about their working relationships with their carriers, and the answer might be a surprise. It’s even ahead of compensation as a concern. Bob Rusbuldt, CEO and president of the Independent Insurance Agents and Brokers of America, explains.

N.Y. Insurance Chief Dinallo: Beyond AIG

creese — Wed, 04 Mar 2009 21:09:15 +0000

New York Insurance Superintendent Eric Dinallo has been in the middle of the AIG bailout, bond insurance and federal regulation crises and debates. But he has also dealt with producer compensation, reviving the Insurance Exchange, workers’ comp reforms and other matters. In this exclusive interview with Insurance Journal’s Ken St. Onge, Dinallo discusses the last 12 months and how his department has managed.

Mississippi Rebuilds Its Markets

bpedroso — Wed, 26 Nov 2008 01:26:31 +0000

Miss. Commissioner Chaney says wind pool modernization, better building code enforcement and carrier recruitment efforts are starting to to pay off in this recent interview with Insurance Journal’s Kenneth St. Onge at the 2008 National Association of Insurance Commissioners annual meeting.

Ohio Commissioner Lays Out Opposition to Federal Oversight, Cat Plan

bpedroso — Thu, 20 Nov 2008 00:59:49 +0000

As public servant, attorney and community leader, Mary Jo Hudson officially took office as the 46th director of the Ohio Department of Insurance on Jan. 8, 2007. Not shy in letting consumers, agents and other regulators know where she stands, Director Hudson spells out why she opposes an optional federal charter and the adoption of any national catastrophe plan that would include Ohio residents paying for the problems that resident face in coastal areas. On the proactive side the Director revived the Agent Council in Ohio and says that agents enjoy her “open door” policy. Hudson boasts that agents have provided plenty of insight regarding their specific industry and business concerns. She values that input and says it definitely helps in her role as keeper of the gate for consumers and the industry.

Louisiana’s Bright Spots and Challenges

bpedroso — Wed, 05 Nov 2008 23:58:13 +0000

Despite the challenges faced by the state of Louisiana since Hurricanes Katrina and Rita wrought their havoc in 2005, there are bright spots in the state’s property and casualty insurance industry, says Louisiana Commissioner of Insurance Jim Donelon. The workers’ compensation market is healthy and the property market is gaining ground. It’s not all rosy, the market in South Louisiana is still tough, but Donelon says regulatory improvements are paying off. In an interview with Insurance Journal’s Ken
St. Onge at the National Association of Insurance Commissioners meeting in National Harbor, Md., Donelon elaborates on Louisiana’s bright spots and challenges, and discusses myriad other topics, including the near meltdown of American Insurance Group Inc.

Massachusetts Commissioner Sizes Up Managed Competition

bpedroso — Wed, 05 Nov 2008 22:10:43 +0000

Since it went into effect earlier this year, deregulation has brought both hiccups and pleasant surprises to the Massachusetts personal auto insurance industry. In this exclusive, wide-ranging interview with Insurance Journal’s Ken St. Onge, Insurance Commissioner Nonnie Burnes reflects on those ups and downs, as well as other key issues facing the Bay State’s property/casualty insurance landscape. Among them: coastal property problems, workers’ comp issues, relationships with independent agents and the trickle down effects of the AIG bailout.

Kentucky Insurance Commissioner Defends State Regulation

bpedroso — Wed, 05 Nov 2008 18:55:03 +0000

Kentucky Insurance Commissioner Sharon Clark believes that despite the recent government bail-out of AIG, insurance companies and consumers will weather the storm. Above all, Clark feels states should have final say in individual regulatory functions. In contrast, Clark says the insurance department’s fraud unit cooperates effectively with the federal government on investigative efforts through the U.S. Postal Service or through the U.S. Attorney’s General office. Internet-based fraud is a major focus, Clark says. Disaster response is high on the commissioner’s radar and when she took office, Clark became the first director of consumer protection and established a disaster response team.