| Monday, August 31, 2015 |
| Nine Things To Do, When What You’re Doing Isn’t Working |
| If you’re stuck-and you want things to change-you have to do what you would otherwise consider being outrageous. Sometimes you’re doing everything right and still not getting the results you expect. You’re doing the work, you’re sticking to the plan, you’re improving, preparing, being brutally honest about expected outcomes, but all your hard work doesn’t seem to be working. You’re not building up momentum. You’re not making enough money. You don’t even seem to be able to notice small improvements-something to give you the hope that your long-term plan is going to pay off. You’re tempted to give up. The facts seem to indicate that your plan is failing. And logic tells you that you need to change direction. Do something else. Pivot. Jump ship. Find another path forward. The reality about achieving success is that most of what you have to do in order to achieve success doesn’t feel successful along the way. Your life has to get a whole lot harder before it starts to get any easier. So, how do you manage your emotions and strengthen your will in those long stretches where you’re working to get to where you want to be? How do you stay focused and inspired when you don’t have the results you want to make you feel inspired to do more?
1. Take care of your body, mind, your friends, and your finances. 2. Spend time each day thinking about why you want to achieve success in the first place. 3. Be brutally honest about your effort and the results you’ve earned so far. 4. Ask for help from people who will give you wildly uncomfortable advice. 5. Avoid negative people, mindless entertainment, and anything distracting. 6. Focus on doing at least one thing each day that matters. 7. Go out of your way to help someone else solve their problem with your money or time. 8. Start journaling, meditating, or spending quiet time to clear your mind. 9. Reframe your situation as a battlefield and your mission as life-or-death.
It takes radical behavior to achieve different results; little changes won’t work, and small strokes won’t move you closer to your goals. At LMA, every day we live we grow. And our readers and supporters grow with us. Thanks for being a part of our world.
|
| Hurricane Season Heating Up, Office Addresses Insurer Catastrophe Reporting |
| The Office of Insurance Regulation announced issued the below regarding insurer catastrophe reporting:
In the event of a hurricane or other natural disaster causing catastrophic damage in the state of Florida, it will likely trigger a data call to collect claims and other relevant insurer information. See Section 624.307, Florida Statutes.
Insurance companies will be notified when to begin reporting county and statewide information related to the event and how to submit it using the simplified Catastrophe Reporting Form 2015. General company, contact and statewide modeling information along with claims data addressing the following lines of business will be collected: homeowners, dwelling, mobile homeowners, commercial residential, commercial, flood (private and federal), business interruption, and other. Companies upload the requested information via the Data Collection and Analysis Modules (DCAM) at specified time intervals as determined by the Office.
The Office intends to use the aggregated data in summary reports and other materials in order to provide the general public with information concerning the impact of a catastrophic event on Florida’s insurance industry.
|
| NAIC Releases 2014 Insurance Department Resources Report- Volume Two |
| WASHINGTON, D.C. (August 4, 2015) – The National Association of Insurance Commissioners (NAIC) released the second volume of the 28th edition of the Insurance Department Resources Report (IDRR) to help state insurance departments assess their resources and to provide those regulated information about our industry. The report details how state insurance regulate an increasingly complex and competitive industry and contains statistics on Premiums by State, By Line of Business and Budget Information. The first volume, published in June, included data on staffing, budgeting and examination information. The second volume includes admitted premium by state, by line of business; excess and surplus lines premium; and relational statistics including budget as a percent of revenues, budget as a percentage of premiums and revenues as a percentage of premiums. For more information, visit www.naic.organd we are happy to share our version of these handy tools as well.
|
| Mergers and Acquisitions |
| Every week, we read about another agency that has been acquired by a larger conglomerate and we wish our friends well that took the leap to make a change in their business life As a matter of fact, there were over 300 insurance agency acquisitions in 2014 in the US and Canada. According to a report Chicago-based Optis Partners, an investment banking and financial consulting firm providing services to the insurance distribution industry shared that the last half of 2014 was the start of a prolonged active period for agent-broker M&A transactions. Although not leading the pack recently, the traditional public broker acquirers, Brown & Brown and Arthur J. Gallagher, and joined by Marsh McLennan Agency, will be active on the M&A front. There will also likely be continued expansion and growth of the current dominant PE backed firms.
The report went onto say that the agency-brokerage business is awash with baby boomer principals reflective of America’s demographics. It is estimated that more than 30% of all the equity in the system is owned by those baby boomers. The industry, unfortunately, has simply not adequately addressed the process of perpetuation-succession planning. Without a sound perpetuation plan in place, the only option for many of these baby boomer firms is to sell to a third-party in order for the principals to capitalize the value of their firm. The PE backed and public brokers will be front and center to make many of these transactions.
Given an active, vibrant and well capitalized buy-side community, combined with a significant number of firms needing a third-party sale, there could be a large number of transactions for many years into the future. Consequently, a number of the boomer firms may disappear over the next 10 to 15 years. The wave may be slow and steady although it will likely be long. It is too early at this time to prognosticate; it does, however, have the prospect to be significant with a permanent change to the landscape and a relatively material reduction in the number of agent-broker firms.
|
| Public Hearing on Citizens’ Proposed
Rate Changes Held |
| The Florida Office of Insurance Regulation (OIR) conducted a public hearing on August 25 to discuss Citizens Property Insurance Corporation’s proposed 2016 rate changes for its business in the multi-peril and wind only Coastal Account (CA), Commercial Lines Account (CLA) and the Personal Lines Account (PLA). Several top officials from the Florida Office of Insurance Regulation were in attendance, including Insurance Commissioner Kevin McCarty, the agency’s general counsel and senior managers who oversee property & casualty rate filings. Citizens representatives included President and CEO Barry Gilway, Chief Risk Officer John Rollins, Chief Actuary Brian Donovan, Forecasting & Research Director Paul Kutter, Corporate Analytics Director March Fisher, and Chief Financial Officer Jennifer Montero. Citizens has said its proposed rate package lowers rates for nearly half of Citizens’ personal lines policyholders while responding to increased water loss claims and continued inadequate rates for its remaining policyholders along the coast. Listed in the chart below are the proposed rate changes as filed by Citizens. The Florida Office of Insurance Regulation is required, per statute, to render a decision on these filings right after Labor Day.
While Mr. Gilway commented on the proposed rate package lowering rates for nearly half of the state-run insurer’s personal lines policyholders, he also noted a “disturbing” rise in water-damage claims in South Florida that has pushed his office to request an average 3.2 percent rate increase for many policyholders. Gilway went on to say that if it were not for the significant increase in the noted water damage claims over the past couple of years, Citizens would be requesting an average statewide rate decrease. In pinpointing the problem the Citizens chief executive said there are no major differences in the age of homes or other characteristics between Southeast Florida and other areas of the state so it leads you to the obvious conclusion, and the conclusion basically is there is more fraud associated with these types of claims. Therefore, Citizens customers in Miami-Dade, Broward, Palm Beach and Monroe counties, which comprise a large portion of Citizens’ portfolio, are more likely to see rates increases than homeowners in other parts of the state under the rate proposals. And the reason is the water claims, Mr. Gilway said.
After the hearing Citizens’ President and CEO provided additional comments regarding water-damage claims originating in Southeast Florida and that 30 percentage of those claims that arrive at the insurer’s office with legal representation. According to Citizens’ data, 90 percent of those claims with incoming legal representation are filed by Dade County policyholders. To further shed light on the subject, Citizens reported its receiving about 1,000 water-damage claims per month.
The effective date of the proposed rate change for all three accounts (Coastal, Commercial Lines and Personal Lines) is Feb. 1, 2016, for new and renewal business.
|
| National Council Makes Annual Comp Insurance Rate Filing, OIR Responds |
| On 8/20/15 the National Council on Compensation Insurance (NCCI) made its annual Workers’ Compensation Insurance rate filing with the Office of Insurance Regulation (OIR or Office) for proposed premium rates effective January 1, 2016. The Council’s rate filing proposes a statewide average premium decrease of 2.2%. This includes a statewide average rate decrease of 1.9% and a reduction of the fixed expense cost applicable to every workers’ compensation policy in Florida from $200 to $160.
The NCCI’s proposed rate reduction is likely more evidence of the tremendous industry and marketplace calming effect brought about by the Florida Supreme Court’s ruling this past January that the workers’ compensation law bars injured workers from seeking additional benefits in civil court. The court case (Morales v. Zenith Insurance Company SC13-696) was one that challenged a key provision of the state’s workers’ compensation law.At issue was the so-called “exclusive remedy” provision of the law that essentially codifies a compromise between labor and management stretching back to the 1930s.Under the provision, employers agree to provide medical and wage-loss benefits, regardless of who is at fault, in exchange for injured workers forgoing their rights to sue in civil court. We will continue monitoring the OIR’s work on the NCCI filing and keep you posted regarding developments. Click HERE to review a complete overview of the NCCI rate filing and there will be a hearing in October.
|
| Office of Insurance Regulation Reveals 2016 Legislative Initiatives to Cabinet |
| Earlier this month at the most recent meeting of the Florida Cabinet (functioning in its role as the Financial Services Commission), the Office of Insurance Regulation revealed its proposed legislative initiatives for the upcoming 2016 Legislative Session. The initiatives were presented by OIR Chief of Staff Belinda Miller. Although no specific amendatory or bill drafted language accompanied the initiatives, the following list as presented is helpful in understanding legislative changes the Office says it will be seeking in 2016:
2016 OIR Legislative Initiatives
Health Maintenance Organization Solvency Modernization * Application of Risk-Based Capital Standards to HMOs * Application of Writing Ratios to HMOs Risk Management Analytical Tools * Adoption of Own Risk & Solvency Assessment (ORSA) standards for insurers * Adoption of Corporate Governance Annual Disclosure for insurers Health Insurance Protections for Consumers * Protection from out-of-network “surprise” medical and emergency services bills
LMA will remain heavily involved in all legislative endeavors potentially impacting our clients and partnering stakeholders to make certain consumers are protected and a healthy, robust insurance marketplace is maintained.
|
| Florida Man Gets 6 Years for Staging Car Crashes, Filing False Claims |
| A 50-year-old Jacksonville, Florida, man has been sentenced to six years in prison for staging car crashes. Duval County State Attorney’s Office announced that Guillermo de la Vega pleaded guilty earlier this month to two counts of participating in an intentional motor vehicle crash and two counts of false insurance claims. The Florida Times-Union reports authorities began investigating fraudulent person injury protection claims in 2011. They originated at a Jacksonville rehabilitation clinic that authorities say provided bogus treatment for nonexistent injuries. After the clinic received money for the treatment, officials say de la Vega paid those who participated in the fake crashes. The Duval County State Attorney’s office has done an excellent job of working with several of us in the insurance fraud arena and we applaud them for this latest arrest. If you have information on potential insurance fraud and want to discuss with us, please do so and we will guide you accordingly.
|
| LMA is Going through Some Changes….We Have Both Good and Sad News to Share |
| LMA’s beloved team members, Sarah Kelly and Meghan Kelly (unrelated but truly sisters) are starting new journeys in their professional careers. Sarah was recruited to be the Sales Director for the beautiful and historic Wakulla Springs Lodge, about a half hour from LMA offices. She has a particular talent for meeting and event planning and her reputation in North Florida as an event planner extraordinaire is well-known. Without Sarah’s diligent attention to my calendar and other details of a hectic schedule, I would have wound up in Pensacola when I should have been in Miami! We wish Sarah well and we know she will accomplish great things in her new job. We are pleased to welcome Jennifer “Jen” Roddenberry to assume Sarah’s duties and Jen has hit the ground running. You will hear Jen’s voice when you call the office.
In addition, please congratulate Meghan Kelly, LMA’s Chief Operating Officer affectionately called the “Coordinator of Chaos,” as she has accepted a position with the Department of Defense in Washington, DC as a State Legislative Affairs Specialist. Meghan will be working with state elections officials to ensure that our military men and women have unfettered voting access while deployed or living overseas. Together, Meghan and I launched Lisa Miller & Associates seven years ago in 2008. Working along side me, Meghan excelled at operations, external affairs, marketing, communications and business development functions and has been a true partner beside me as I have grown LMA. Meghan has tackled every task, project and challenge with determination and diligence, never shrinking from anything thrown her way. During these years, Meghan has always risen to the occasion, never missing a beat while always maintaining a sense of humor! Please join me in wishing great things for Meghan in her new adventure.
|
| Erika Dissipates Over Northern Caribbean but Became Outstanding Exercise |
| For much of this past week, state executives, emergency management officials and leaders within our industry were on high alert planning and preparing for the probable Florida landfall of the first hurricane in more years than some can remember. Much has changed in our state since the last hurricane slugged its way across the Peninsular but basic human nature has not. So, last week’s extensive media coverage of the approaching Erika triggered a fair degree of hurricane anxiety among Floridians which was, in many ways, a good thing. Homeowners were reminded about what is and is not covered by their residential insurance policies and helpful information about renters, flood, auto and other lines of coverage also received spotlight attention. Erika presented a great opportunity for insurers to run through their disaster response and catastrophe claims handling procedures, mutual aid agreements, OIR’s routine CAT reporting requirements and a host of other disaster preparation protocols.
LMA and its entire team was also on high alert and we were ready to assist our insurer and claims adjusting clients with any needed support. We have active, open-lines of communication with our DFS friends in the Division of Agent & Agency Services and during this time of year we stand ready to be your advocates should emergency adjuster licenses be needed. Please contact us directly if you have any questions about OIR communications to industry, emergency adjuster licensing, laws that govern public adjusting after disasters or have any other needs we can assist with. The exercise Erika presented was much needed and timely because as of this morning we are closely monitoring the progress of newly formed Tropical Storm Fred. Fred is approaching the Cape Verde Islands and will then begin its trek westward across the Atlantic Ocean. We’ll keep monitoring and thinking only good thoughts, and until we visit with you again,
All my Best, Lisa and the LMA Team
|
| Erika Dissipates Over Northern Caribbean but Became Outstanding Exercise |
| A 50-year-old Jacksonville, Florida, man has been sentenced to six years in prison for staging car crashes. Duval County State Attorney’s Office announced that Guillermo de la Vega pleaded guilty earlier this month to two counts of participating in an intentional motor vehicle crash and two counts of false insurance claims. The Florida Times-Union reports authorities began investigating fraudulent person injury protection claims in 2011. They originated at a Jacksonville rehabilitation clinic that authorities say provided bogus treatment for nonexistent injuries. After the clinic received money for the treatment, officials say de la Vega paid those who participated in the fake crashes. The Duval County State Attorney’s office has done an excellent job of working with several of us in the insurance fraud arena and we applaud them for this latest arrest. If you have information on potential insurance fraud and want to discuss with us, please do so and we will guide you accordingly.
|
