Laurence Aikens’ Post

An interesting bit of insurance history from Coverager: "Ebenezer Hazard could be seen as the insurance world's Eli Copter: his first name means "stone of help" in Hebrew, and his last name—well, you get the idea. Hazard stumbled into insurance in the late 18th century, much like many of us do—unexpectedly. After graduating from what is now Princeton University, he became Postmaster General in the 1780s, streamlining the postal system. But he stirred controversy by replacing stagecoaches with faster, cheaper post riders, disrupting news distribution during pivotal Constitutional debates. George Washington dismissed him over this. Hazard then co-founded the Insurance Company of North America (INA) in 1792 (incorporated in 1794), the first US company to insure both buildings and their contents. INA was a powerhouse. At its peak, the company kept operational expenses below 25% of its premium income—well below the industry average of over 40%. This efficiency allowed it to retain more profit and invest strategically, making it one of the most financially stable insurance firms of its time. Yesterday's INA evolved into today's Chubb through a series of acquisitions. After struggling to compete with direct writers despite diversifying into life and workers' compensation insurance, INA merged with Connecticut General Life in 1982 to form CIGNA. In 1999, ACE acquired CIGNA's P&C operations, including INA. Finally, in 2016, ACE acquired Chubb and rebranded under the Chubb name, transforming INA into part of a global insurance leader through strategic mergers and acquisitions."

#FridayFacts Audience? Commercial insurance consumers/buyers and those who are impacted financially by marketplace turmoil. Fear not, there are ways to lesson the impacts. The property & casualty insurance marketplace is as chaotic and challenging as we have seen in multiple decades. Insurers are reducing capacity (or leaving altogether) in regions impacted by frequent and severe weather events, excessive jury verdicts and legislative/executive outcomes that hinder their ability to collect adequate premium. Fewer players = fewer options. Fewer options = less competition. Less competition = higher pricing (typically). On the property side, ongoing inflation, supply chain issues, material availability, catastrophic claims, investment income results, etc., contribute to pricing (see: premium) increases. Regulators in each state (not federal oversight) annually audit insurer financials. More frequent and severe claims ultimately lead to higher rates and an increase in reserves (money set aside to pay claims). Sticking to claims; nuclear verdicts (multi-million dollar awards) are climbing in number and location. Investors are fueling (supporting) plaintiffs in civil lawsuits. Several states are considering legislation to limit/combat the practice, but problematic today, eg. outspending defendants (policyholders/insurers). Cyber incidents (criminal activity) continue to plague businesses, public entities and individuals alike. The black hats are seemingly one step ahead of the white hats at all times. Claim frequency and severity (see: extortion, etc.) still rising. Insurers are adding wind/hail + water damage specific deductibles to their property forms in many regions; including Indiana. A wind/hail + water damage deductible > than a standard property deductible. Ways to combat the noted negatives? Avoid "market mayhem." Market mayhem = multiple agencies/agents communicating with several insurers at the same time -- sending mixed messages and presenting different skillsets and insurer relationships. While that approach may seem reasonable, it likely weakens your position, eg. inconsistent message, dissimilar specification data, insurer/underwriter adhesion, loss prevention challenges, program design variations, etc. In short, a specific, intentional, individual message (submission) delivered to multiple insurers/underwriters by one agency/agent removes the uncertainty and potential for mixed messages to the marketplace. In closing, we (IMG) have a tremendous roster of insurer contracts and the knowledge and expertise, in many industry segments, to help commercial insurance buyers navigate the turbulent marketplace ... and provide a Total Cost of Risk (TCOR) assessment in the process. #IMG #marketmayhem #trustedadvisor

On June 3, 1919, The Supreme Life Insurance Company (formerly Liberty Life Insurance Company) was the first Black-owned and operated insurance company in the northern United States. FAIR INSURANCE POLICIES FOR BLACKS IN CHICAGO Frank L. Gillespie was an Arkansas-native and insurance agent for Royal Insurance Company. He quickly noted the inferior quality life insurance policy provisions offered African Americans by the White-owned insurance agency. The Supreme Liberty Life Insurance Co. (also referenced to as Supreme Life Insurance Company) was incorporated in 1919 by an investment group headed by Gillespie. The first Black-owned insurance agency outside of the U.S. southern states offered African Americans a better quality life insurance than offered by White-owned agencies of the time. By 1921, Gillespie raised $100,000 to issue life insurance policies to Chicago's African American residents. By 1925, the company had written more than $5 million in insurance policies and opened branch offices in Michigan, Kentucky, Missouri, and Washington D.C. It was one of the few Black insurance companies to survive the Great Depression. After the Great Depression, Supreme Life expanded into one of the nation's largest minority insurance companies. #blackmenspeak #africanamericanhistory #americanhistory

As I continue to look into the Florida Property Insurance Market, there are some clear winners as respects rating, lobbying for, working with, or investing in the newer Florida "Citizens takeout" insurers. These new takeout companies are entrusted to service tens of millions, if not hundreds of millions of public assets and instead are taking advantage. These clear winners include (so far in my research): - Demotech Ratings - The Southern Group, Miller & Associates and AAIS in Tallahassee, where former leaders and influencers of the Florida Office of Insurance Regulation are now working - Greenberg Traurig in Miami - Investment firms Blackrock, Vanguard, State Street, Geode, Dimensional and American Century, who seem to really understand this market! - Not to mention a few CEO's whose pasts seem marred with insurer failures but who seem to keep getting leadership roles in new start-ups that sometimes overstate assets and/or cannibalize the books of the old companies. Seems Heritage's old CEO's new incarnation is called Slide, and they are taking A LOT of Citizen's takeout business propping up their financials and potential future IPO. It also seems many of these start-ups do not write any business besides Citizens' takeouts. And there is a legion of claims folks - TPA's, independent adjusters, and even allegedly public adjusters, supporting the network which seems to often not pay or underpay claims. Stay tuned for a great deal more analysis. Florida property insurance is truly fascinating stuff! Hopefully Florida CFO Jimmy Patronis is going to lead the state into a better period of more reasonable property insurance rates, coverage and claims payment.

Here is just another major win for one of my carriers here locally! 32nd straight year from AM Best review of A+ (Superior) Rating. If you have questions about having me shop your business to Sentry let me know. Rating confirms the mutual insurance group’s financial strength and ability to pay customers’ current and future claims. STEVENS POINT, Wisconsin (July 17, 2023) – After concluding its annual review, AM Best assigned Sentry an A+ (superior) rating for a 32nd consecutive year. In doing so, the insurance industry’s lead rating authority pointed to the mutual insurance group’s “innovative initiatives” as positioning it as a leading commercial casualty writer. “Our strategy for success involves accessing new markets, investing in new technologies that better serve the business and our customers, and developing a strong talent pipeline,” said Pete McPartland, Sentry Chairman of the Board, President, and CEO. “Our efforts, led by a unified management team and dedicated associates, pave a path for a strong future for Sentry—one where we’re leading the way in an evolving business landscape.” Fewer than 10% of U.S.-based property and casualty insurance companies earn the A+ rating—even less have achieved it for more than three straight decades. This past year, elevated inflation, catastrophic weather events, and volatile investment markets strained the insurance industry. “In a challenging year, Sentry outperformed standards for premium growth and profitability, solidifying our position as one of the best-capitalized companies in the insurance industry,” said Todd Schroeder, Chief Administrative Officer and Chief Financial Officer. The A+ (superior) rating speaks to the soundness of Sentry as a company. In support of the rating, AM Best points to Sentry’s balance sheet strength, which it ranks as “strongest” for risk-adjusted capitalization. AM Best also recognizes Sentry’s disciplined investment management strategy and consistent operating results, the latter of which is “fueled by management’s innovative initiatives.” It also noted Sentry’s well-diversified business mix, offering a broad range of commercial and personal property and casualty coverages throughout the U.S.

Allianz Global Corporate & Specialty (AGCS) to focus on U.S. Large Corporate and Specialty insurance with sale of U.S. MidCorp and Entertainment businesses to Arch Insurance Group Inc. North America for total transaction value of $1.4 billion AGCS will continue to leverage its competitive advantages in the strategically important U.S. insurance market through its Large Corporate and Specialty business as part of its Allianz Commercial strategy The transaction includes risk transfer for Allianz, as Arch is assuming approximately $2 billion of loss reserves associated with the business. The cash payment from Arch, together with an estimated $1.0 billion of Allianz capital supporting the business, is expected to result in $1.4 billion of total transaction value for Allianz Group. Approximately 500 employees from Allianz are expected to transfer to Arch as part of the agreement. Going forward, AGCS U.S. will focus on its Large Corporate and Specialty business, where U.S. brokers and clients benefit from Allianz’s strong global and industry-specific capabilities across underwriting, claims, and risk consulting, including multinational insurance programs and alternative risk transfer. “This strategic step for our U.S. business allows us to leverage our strengths in these important market segments, where we have deep expertise in addressing our clients' most complex risks,” said Tracy Ryan, AGCS Chief Executive Officer for North America and member of AGCS’s Board of Management. “We are proud of our employees who have served our U.S. MidCorp and Entertainment clients and brokers over the years. We are confident that they will be a strong addition to Arch, ensuring continuity for our partners.”  The businesses subject to sale are underwritten by Fireman's Fund Insurance Company’s and its subsidiaries, namely American Automobile Insurance Company, Chicago Insurance Company, Interstate Fire & Casualty Company, and National Surety Corporation and collectively totaled $1.7 billion of gross premium written in 2023.

Send me a private message to learn why I think CLIC has one of the best IUL’s in the business! #livingbenefits

𝗨𝗽𝗱𝗮𝘁𝗲𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗖𝗮𝗹𝗶𝗳𝗼𝗿𝗻𝗶𝗮 𝗙𝗔𝗜𝗥 𝗣𝗹𝗮𝗻 Many consumers have been struggling to place their property coverage and have had to turn to the California FAIR plan, the state's "insurer of last resort". This has resulted in heavy insurance premiums with very limited coverage that may not meet current standards. Insurance Commissioner Ricardo Lara has announced a significant agreement to modernize the California FAIR Plan as part of an ongoing effort to stabilize the insurance market and address the property insurance crisis, where we continue to see traditional carriers opting to leave California and often leaving the FAIR plan as the only available option. This modernization is a key element of Lara’s Sustainable Insurance Strategy, the largest reform since 1988's Proposition 103. 𝗠𝗮𝗷𝗼𝗿 𝗰𝗵𝗮𝗻𝗴𝗲𝘀: 1. 𝗘𝘅𝗽𝗮𝗻𝗱𝗲𝗱 𝗖𝗼𝘃𝗲𝗿𝗮𝗴𝗲: • New high-value commercial coverage option with limits up to $20 million per building. • Higher limits for residential policies to meet today’s property values and coverage needs. 2. 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆: • A new financial formula to protect policyholders in extreme loss scenarios, ensuring long-term security. 3. 𝗜𝗺𝗽𝗿𝗼𝘃𝗲𝗱 𝗧𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆: • Increased public reporting on FAIR Plan activities and customer service metrics. 𝗪𝗵𝗼 𝗱𝗼𝗲𝘀 𝘁𝗵𝗶𝘀 𝗶𝗺𝗽𝗮𝗰𝘁? • Consumers and Businesses: This initiative ensures a reliable safety net for those who cannot find insurance coverage in traditional markets. • Homeowners Associations and Builders: More robust coverage options and financial safeguards mean better protection and peace of mind. • Agricultural Sector: Enhanced coverage limits provide much-needed security for farms affected by wildfires and other risks. 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 𝗳𝗿𝗼𝗺 𝗞𝗲𝘆 𝗦𝘁𝗮𝗸𝗲𝗵𝗼𝗹𝗱𝗲𝗿𝘀: • The California Farm Bureau, Community Associations Institute, California Building Industry Association, and California Association of REALTORS® have all voiced strong support, emphasizing the importance of these reforms for their respective communities. Commissioner Lara's efforts are paving the way for a potential improvement in the insurance market in California, ensuring that everyone from homeowners to business owners can find the coverage they need. For more details, you can read the full article at

Insurance company State Farm projects it could drop more than one million California policies over the next five years due to impending financial instability. June filings submitted to the California Department of Insurance found that if the insurance company continues to decline, its sector involving property insurance, comprised of homeowner's insurance and business liability, could face a total policy count drop from 3.1 million to under 2 million in just five years, the San Francisco Chronicle reported. Founded in 1922, State Farm is the third most popular insurance brand in the United States, according to YouGov. It serves more than 91 million policies and accounts in industries including auto, fire, life, health, commercial, and financial services. The insurance company is California's largest home insurer. It serves more than 1.2 million homeowners in residential or business properties and has additional customers in condo homeowners associations. #CAInsuranceCrisis #HomeownersInsurance #CADOI #StateFarm #Newsweek: https://lnkd.in/eU4x_aTf

Unveiling the Secrets of Home State County Mutual Insurance Introduction In today's unpredictable world, insurance stands as a shield against unforeseen risks. When it comes to protecting your assets and loved ones, Home State County  Insurance emerges as a reliable partner. #HomeStateCountyMutualInsurance