Verisk Telematics Data Integrates with Honda Now, giving new opportunities for usage-based insurance innovation

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September 03, 2020

(Jersey City, NJ, Economic & Insurance News by Insurance Market 360 – www.insurancemarket360.com) – On Aug. 6, Verisk announced that auto insurers can access information from owners of connected Honda and Acura vehicles to help Verisk in delivering their usage-based insurance (UBI) programs to a wider audience.

“Data from consenting Honda drivers will be available across Verisk’s portfolio of telematics products, expanding the reach of the Verisk Data Exchange and helping our insurer customers launch or scale-up their UBI programs,” said Karthik Balakrishnan, general manager of Verisk’s telematics business. “We are making more OEM data available to insurers, so they can reach more of the market and reward safe drivers.”

Car owners must consent, but insurers can access driving behavior data during the quoting process for Acura and Honda drivers with The Verisk Driving Score and Verisk Driving Data. Both allow insurers to use historical driving behaviors to apply UBI discounts immediately.

The Verisk Driving Score is filed and available for use in 43 states. Verisk Driving Data targets insurers with their own UBI scoring algorithms, and provides normalized, cross-OEM driving data that can be customized to meet the insurer’s specifications.

“When you combine Honda’s expansive presence in the auto market with the breadth and depth of our telematics solutions, we believe this will unlock tremendous opportunities for all of our telematics’ stakeholders. Automakers, insurers, and consumers will all win,” said Balakrishnan.

Verisk is also powering a new Driver Feedback tool for drivers of eligible models that utilize the HondaLink or AcuraLink mobile apps. Owners who opt in get an individualized Driving Score as well recommendations meant to promote positive behavior change. Vehicle owners may also receive offers for driving behavior-based auto insurance discounts from participating insurers through Verisk’s Discount Alert. Insurers can notify participating drivers about potential discount offers, using the Verisk Driving Score or the insurer’s own proprietary score to identify preferred risk segments.

Source: Verisk Analytics.

IVANS Index for 2020 Second Quarter shows increasing premium renewal rates year over year

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September 02, 2020

(Tampa, FL, Economic & Insurance News by Insurance Market 360 – www.insurancemarket360.com) – On July 9, IVANS (a division of Applied Systems) announced that in the second quarter of the year, the IVANS index showed an increase in the average premium renewal rate change for nearly all major commercial lines of business, compared to 2019, except for workers’ compensation. The Workers’ Compensation average premium renewal rate change was negative.

Of note, Business Owners Policy, General Liability, Property, and Umbrella experienced higher average premium renewal rate change than the first quarter of the year. Commercial Property continues to hit record premium renewal rate highs, with a jump of 5.51% in April.

Premium renewal rate change by line of business for Q2 2020 highlights include:

  • Commercial Auto: Premium renewal rate change averaged 4.72% for the quarter, with a quarter high in April at 4.80%.  The quarter low for premium renewal rate change was in June at an average of 4.63%.
  • BOP: Quarter premium renewal rate change averaged 4.97%, representing an increase over last quarter’s average of 4.65%. BOP premium renewal rate change finished the quarter at 4.64% in June.
  • General Liability: Q2 premium renewal rate change increased from Q1 2020, averaging 3.29% relative to 3.08%. The quarter premium renewal rate change reached its low of 3.23% in May, which is still higher relative to all average premium renewal rate change for General Liability experienced in Q1 2020.
  • Commercial Property: Q2 premium renewal rate change increased to 5.29%, reaching a quarter – and year to date – high in April at 5.51%.
  • Umbrella: Quarter premium renewal rate change averaged 3.25% versus 3.06% in Q1 2020. Umbrella premium renewal rate change for the quarter reached its high in June at 3.56%.
  • Workers’ Compensation: Average premium renewal rate change for the quarter reached -2.41%, down from Q1 2020 average of -1.81%.

“The Q2 IVANS Index results show a continued hardening in the market as premium renewal rates for nearly all major commercial lines of business increase year over year, with the exception of Workers’ Compensation,” said Brian Wood, vice president of Data Products Group. “As the pandemic begins to impact the industry, we will continue to monitor premium renewal rate changes via the IVANS Index, delivering guidance for brokers as they advise customers and for insurers to evaluate which lines of business to invest in.”

Download the complete Q2 IVANS Index report here.

Source: IVANS.

https://www.ivansinsurance.com/en-us/news/press-releases/2020/q2-2020-ivans-index-results-released/

Progressive offers pet insurance

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September 1, 2020

(MAYFIELD VILLAGE, Ohio, and Boise, Idaho, Economic & Insurance News by Insurance Market 360 – www.insurancemarket360.com) – Individuals bond with their pets, and it’s become increasingly obvious just how important that bond is. More and more, people are looking for insurance that can help them to pay when their cherished pet suffers a medical emergency or needs an expensive treatment.  Progressive recognizes that need and has developed a relationship with Pets Best, a part of CareCredit and Synchrony, which allows them to offer Progressive Pet Insurance by Pets Best

Progressive Pet Insurance by Pets Best is available to all U.S. companies looking to add pet insurance as a voluntary employee benefit. It will be written and serviced by Pets Best.

This voluntary benefit offering is just the latest in Progressive’s collaborations with Pets Best pet health insurance since 2009.

The American Pet Product Association (APPA) reports that approximately 85 million households in the U.S. spent a combined $29.3 billion on veterinary care.

“Pet ownership in this country is at an all-time high, and costs for veterinary care continue to rise as we see more sophisticated medical technologies and improved treatment options.   To help address this challenge, many pet owners are turning to pet insurance for protection,” said Chris Middleton, Senior Vice President and General Manager of Pets Best. “This expanded product offering with Progressive allows us to reach even more business owners, HR managers, brokers and decision makers who turn to Progressive for their commercial insurance needs.”

Employers pay nothing extra if they opt to add Progressive Pet Insurance By Pets Best to their benefit offerings. Pet insurance is available to companies of all sizes and can be added anytime. It offers employers the option to pay for all of the pet insurance or just a portion, passing a portion to the employee. Or, companies can choose to have their employees pay the premiums directly. Payroll deduction is also available to companies with at least 250 employees.

“We understand that employers are looking for ways to create more comprehensive and competitive benefits packages,” said Drew Purcell, Business Development Leader at Progressive. “Employees are placing increased importance on work perks that complement their lifestyles and recognize what’s important to them. By offering pet insurance as a voluntary benefit, employers can tap into the strong bond that many people have with their pets.”

Progressive Pet Insurance by Pets Best provides employers and their employees flexibility. The pet health benefit is easy to implement and can integrate on any benefit enrollment platform. Enrollees can select the amount of coverage that best fits their needs and have access to a free 24/7 Pet Helpline to address any pet wellness questions or concerns.

Companies interested in offering pet health insurance as a voluntary benefit can learn more by visiting.

Source: Progressive Casualty Insurance Company.

https://progressive.mediaroom.com/news-releases/?item=122473

ISO Introduces Optional Endorsement for Damage to Underground Utility Lines

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August 30, 2020

(Jersey City, N.J., Economic & Insurance News by Insurance Market 360 – www.insurancemarket360.com) – On July 16, ISO launched a homeowners insurance endorsement that covers damage to underground utility lines. That’s not always part of a standard homeowners’ insurance policy, and it’s also not always covered by the cities where the lines are installed, so if something happens, homeowners could be on the hook.

The new endorsement for the ISO Homeowners Program can provide coverage for damage to underground pipes, wires, and some buried equipment. The damage could be caused by a variety of happenings, like explosions, tree root growth, and wear and tear.

“Claims arising from buried utilities often come as a surprise because deterioration is hidden until a loss of service occurs,” said Doug Caccese, president of ISO Personal Lines. “Excavating the line, fixing or replacing it, and repairing related damage can cost thousands of dollars. Our new endorsement is the kind of value-added enhancement that many consumers are looking for in today’s competitive homeowners market and that our insurer customers can now offer.”

Policyholders could also obtain coverage for additional living expenses should their homes be uninhabitable. They may also obtain coverage to compensate for a loss of rental income.

But that’s not all. As a complement to the endorsement, ISO introduced associated rules and loss costs. The state-by-state filing process for the new endorsement started in June 2020.

To learn more about ISO’s new homeowners endorsement for underground utility lines, visit https://www.verisk.com/insurance/capabilities/underwriting/personal-property/forms-loss-costs-and-statistical-reporting/.

Source: Verisk Analytics.

https://www.verisk.com/press-releases/2020/july/iso-introduces-optional-endorsement-for-damage-to-underground-utility-lines/

Second Quarter Nonfarm Business Sector Report, Preliminary

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August 27, 2020

(Washington D.C., Economic & Insurance News by Insurance Market 360 – www.insurancemarket360.com) – United States Bureau of Labor Statistic released the second quarter non-farm business sector labor productivity preliminary report on August 14, 2020.

According to the report, labor productivity increased by 7.3 percent while output decreased by 38.9 percent.   The 7.3 percent rise was the largest rise since the second quarter of 2009.

Hours worked faced a decrease of 43.0 percent. Changes are seasonally adjusted annual rates.

Nonfarm business sector annual rate for unit labor cost increased 12.2 percent in the second quarter of 2020. A 5.7 percent increase in unit labor cost was realized over the last four quarters.

The report includes additional data, analysis, insight, and information. The announcement can be viewed on the Bureau of Labor Statistic’s website.

Source: United States Bureau of Labor Statistic.

https://www.bls.gov/news.release/prod2.nr0.htm

Marsh reveals global commercial insurance pricing increase of 19% in 2020 Q2

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August 26, 2020

(New York NY, Economic & Insurance News by Insurance Market 360 – www.insurancemarket360.com) – For the eleventh quarter in a row, the global commercial insurance pricing increased in the second quarter of this year, Marsh’s quarterly Global Insurance Market Index revealed. The Global Market Index measures the change of global commercial insurance premium pricing at renewal. It represents the world’s major insurance markets and comprising nearly 90% of Marsh’s premium.

The 19% increase is the largest since 2012, when the index launched. As with the first quarter, average price increases were driven by increases in property insurance rates and financial and professional lines. Highlights of the report reveal these things:

Global property insurance increased 19%. Global financial and professional lines increased 37%. Global casualty pricing increased 7% on average. Composite pricing in the second quarter increased for the seventh consecutive quarter.

Several regions had double-digit pricing increases. The U.S. saw an increase of 18%; the UK saw an increase of 31%; Continental Europe had a 15% increase. The Pacific region saw a 31% increase too. Pricing increases in these regions were largely driven by increases in property and directors and officers (D&O) coverages.

D&O prices for US public companies increased 59% on average. In the United Kingdom, D&O pricing increases were, on average, more than 100%.

Source: Marsh Inc.

https://www.marsh.com/us/insights/research/global-insurance-market-index-q2-2020.html

Why You Should Get California Contractor License

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Why You Should Get California Contractor License

A government-issued license is one of the basic requirements to operate as a contractor or subcontractor in the United States. In California State, the license is issued by the Department of Consumer Affairs, Contractors States License Board (CLSB). Without a license, you cannot work on any project that has a total cost of $500 and above, including labor and materials.

This applies to contractors, specialty contractors, subcontractors, and anyone engaged in the business. You must be licensed to submit a bid for any project worth that amount within the state. The rule applies to all businesses or individuals who construct or alter any structure such as building, road, highway, parking facility, or excavation, railroad.

What are the Benefits of Becoming a California Contractor License?

Apart from being a requirement of the law, the following are some of the benefits you stand to gain if you become a licensed contractor in California:

It Gives Your Brand Credibility

If you desire growth and expansion of your firm in this Land of Milk and Honey, then becoming licensed is a must. Prospective customers often do a background check before offering their projects to a contractor. It gives a credible first impression of you. For instance, having your license number proudly displayed on your business card will make people trust your brand as legit and reliable.

It Helps Your Business Grow

It also allows you to bid on larger projects that require a license. Also, without a license, you cannot submit a bid for public works job.

In addition, there are some projects that will require taking a loan to complete them. Your license will be one of the first things you will be asked to present before you can get a loan from any financial institution, such as banks.

Get More Hands for Your Project

It also allows you to hire more workers to get a project done in real time. Without a license, you may face legal action for not carrying worker’s compensation insurance. Remember, workers comp is part of the requirements for the California contractor license.

Helps You Get Paid for the Work Done

As a licensed contractor, you have nothing to worry about in terms of being paid after delivering a project in accordance with the contract signed with your customer. For example, if a customer tried to outsmart you or deny you of your due payments, you have all the right to use the court to get your money. This is a privilege that cannot be leveraged by an unlicensed contractor. Also, under the Business and Professional Code section 7031, a customer is allowed to reclaim all money paid to any unlicensed contractor. This is a situation that could bankrupt a business, especially if you have spent lots of money and time executing the project.

Steps to Getting California Contractor License

In all, the process involves seven (7) different stages as follows:

Step I

Determine if You Are Eligible: You must be at least 18 years of age, have a minimum of 4 years journeyman level work.

Step II

Complete Application: Here, you will be asked to choose a license application that pertains to your specific line of business. All application forms will require filling in your Individual Taxpayer Identification Number or a Social Security number.

Step III

Submission of Application and Fees Payment: Your application must be submitted with a fee of $300

Step IV

Fingerprint: The CSLB will review your application. After this, you will be asked to undergo fingerprint screening as part of the board’s mandatory criminal background check.

Step V

Work Experience Verification: You will be required to present certain documentation to confirm if you meet the minimum work experience requirements.

Step VI

Examination: You will have to take and pass written law and trade examinations unless you meet the requirements for a waiver.

Step VII

Get Your License: If you have passed the exam or received a waiver, you will be issued your license. Eureka! You have become a licensed contractor in the Golden States!

Understanding California Contractor License Classifications

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Apart from being a compulsory requirement of the law, having a contractor license increases your chances of winning a project bid in California State. Depending on your line of business, your California contractor license will be issued under any of these three business and professional code classifications: A Class, B Class, or C Class.

Classification A: General Engineering Contractor: 7056

You will be classified under this category if your main contracting business is in connection with fixed works that require specialized engineering skill and knowledge. This includes the individuals and businesses in divisions like drainage, irrigation, flood control, water supply, and inland waterways, harbors, docks and wharves. Others are shipyards and ports, dams, reclamations, works, railroads, etc.

Classification B: General Building Contractor: 7057

A general building contractor is someone whose contracting business relates to a structure being built or modified. You will need this classification if the project requires two or more different trades or types of subcontractors. As a general contractor with this California license code, you may also take a subcontract or prime contract for carpentry or framing project.

Classification C: Specialty Contractor: 7058

The California Class C license code is for specialty contractors who are into crafts or trades that do not fall within the scope of a general contractor. Such include those who engage in services and testing of fire extinguishing systems, installation and laying of resilient floor covering, carpets, linoleum, etc. Those who specialized in roofing, plumbing, concrete, and heating, ventilation, and air conditioning (HVAC) will also be under this category.

Eligibility for California Contractor License

California contractor licenses are issued by the Department of Consumer Affairs Contractors State License Board. To become a licensed contractor, you will need to be at least 18 years old, present evidence of $15,000 bond, and be a citizen or legal resident in the United States. Other requirements include fingerprint screening as part of the criminal record background check. Additionally, you must pass the basic license examination or qualify for a waiver.

Getting Additional Classification

Additional classification is allowed if you have an existing license. You can add any of the three above classification to the already existing license, provided you have the skill set for the intended additional category and meet the examination requirements. You may also remove a classification from your license if you feel it is no more needed. Keep in mind that to re-add a removed classification to your license, you will need to reapply for it with a fee.

Other Licensure Application Types

Apart from the above three classes, there are other trades that require certifications. If you perform any of the following along with your specialization, you will need to get them, more like additional classification to your existing license:

–       Home Improvement Salesperson (HIS)

–       Asbestos Contracting Works

–       Hazardous Substance Removal and Remedial Actions Work

California Contractors License Requirements

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Each of the 50 states in the United States has its own laws that contractors must comply with. In California State, the Department of Consumer Affairs, Contractors States License Board (CLSB) is saddled with this responsibility. The board is also responsible for administrative services to contractors and their clients and investigating related complaints.

California Contractor License Requirements

To become a licensed contractor in the Golden State, you will need to:

–       Be at least 18 years of age

–       Be a U.S. citizen or legal resident

–       Provide passport photographs

–       Hold a $15,000 worth of bond

Who Needs the License?

According to the CLSB, becoming licensed is a must if you are to work on a project with the total cost (materials and labor) of $500 and above. This involves all businesses or individuals who construct or alter any structure, such as building, road, highway, parking facility, excavation, or railroad. The requirement applies to contractors, specialty contractors, subcontractors, and anyone engaged in the business. It is a major prerequisite that must be fulfilled before you can submit a bid for a project within the state.

Penalties for Working Without a License

Being an unlicensed contractor is a gross violation of the California state law. It can lead to criminal or civil actions against any offender. If you are caught contracting jobs or advertizing yourself as a contractor for jobs worth $500 and above, the CSLB will initiate legal or criminal action against you up in the following ways:

FIRST OFFENCES:

This is usually treated as a misdemeanor, carrying a possible sentence of up to 6 months in jail and/or a fine of $500. Depending on the outcome of the investigation, it can also attract a potential administrative fine $200 to $15,000.

SUBSEQUENT VIOLATIONS

Subsequent convictions will increase the penalties, which could cost a fine of 20% of the total price of the project done, or a $4,500 fine. Such an offender shall also be confined to jail for at least 90 days.

It is, therefore, highly recommended to get the license and avoid legal actions that could lead to a setback for your business. The consequences can also ruin your overall trajectory and long-term projection.

What if I Don’t Meet the Requirements for a License?

If you do not meet the California licensing requirements for contractors, you may qualify for a license under a “qualifier.” A qualifier, according to CSLB, is a person captured on the board’s records who meets the requirements for a license.

Can I Work in Another State With California Contractors License?

California has contractor license reciprocity with Utah, Arizona, and the Nevada States. If you are to work in any of these states with CSLB license, or vice versa, you stand a higher chance of landing the job than in other states. This doesn’t automatically guarantee you the right to work contract with those state’s license, but it removes some of the requirements in the license examination.

The advantage will help fast-track the bidding process as you get to complete the whole process ahead of other potential competitors. You might also qualify for a waiver for some of the examination requirements. Bear in mind that reciprocity agreement doesn’t work in all classifications of California contractor license. It is awarded only in specified, similar classifications. For example, Arizona license code A-21 for landscaping will be accepted as equal to California landscaping license code C-27. Any contract outside the accepted code will not be authorized.

Contractors Insurance: The Importance of Additional Endorsements

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It does not matter which sector you operate in as a contractor, the need for financial protection cannot be overemphasized. Apart from meeting the requirements of the law, having a contractor’s insurance policy will help protect you against liability from damages and lawsuit.

How Does It Work

Contractor insurance primarily serves as a risk management tool that gives financial protection when your business is involved in peril or accident that causes financial loss. It is a contract between a firm and an insurance company. You will be charged a specified premium amount as the cost for the financial coverage, which will be provided by the insurance company in the eventuality of damages. You will have the liberty to choose the kinds of disasters or accidents you would want protection for, which will basically depend on your needs, budget, and/or preferences. The financial coverage will be offered according to the dictates of the contract signed.

Additional Insured Endorsements for Contractors

In most cases, basic contractor insurance policies don’t offer robust coverage that will best serve policyholders’ business interests. There are some projects you will need to subcontract, and would like to have coverage for as many subcontractors working with you. Your basic contractor insurance will not cover those subcontractors; hence, the need for additional endorsements to fill the vacuum.

How to Get Additional Endorsement

Just like every other insurance policy, getting additional endorsement comes with certain requirements, restrictions and complications, which must be understood from the onset.

To start with, you will need to define those you want to add in the endorsements clearly. The added insured can be an individual or an organization. There are different languages for additional endorsements for different purposes. You may get it for ongoing operation or completed operation.

Ongoing Operations

The language (terms and conditions) of an ongoing operation will be amended to accommodate the added insured individual or organization in the “WHO IS INSURED” definition of the contract. It will only address liability or loss arising from ongoing operations caused by the named entities.

Completed Operations

Completed operation option provides coverage against liability, loss, or injury to a third party once the contracted operation ceases. It is a crucial financial tool that provides relieves and helps you maintain stability in your business. Take, for instance, a roofing project you completed six months ago started linking, and you are sued by the property owner. Instead of dolling out repair cost from your pocket, your completed operation additional endorsement will come to your rescue.

If any lawsuit emanates from the contract, court judgment will be based within the scope of the language in the contractual agreement. It is therefore essential to understand the terms of a policy to the letter.

Blanket Additional Insured Endorsement

Also known as an automatic endorsement – blanket additional insured endorsement is designed to automatically accommodate those entities or individuals that were not initially named in the agreement.

Who Needs Additional Insured Endorsement?

An additional insured endorsement is a must-have debt management tool for every small, medium, and large scale contractor in the United States. Having it will help save your business from distress and bankruptcy resulting from a lawsuit.