Specialty Insurance Blog

Car Rental Insurance Update

An article today in the Hartford Courant (see here) provides an additional perspective on our prior post on car rental insurance (see here).  The article points out that you probably do not need to purchase insurance from the car rental company, but then goes on to qualify that advice.

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The Art of the Ask

Whether it is raising capital or closing a sale, insurance agents and brokers will be asking for money; an order.  Focusing on raising capital, a recent article in Business Week SmallBiz entitled The Art of the Ask provides advice that is similar to a typical sales process.  The key concept is moving a prospect from no relationship to one where the ask is expected.

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Technology & Media Liability Claim Examples

Technology and media professional liability insurance losses do occur, and some result in significant claims.  Euclid Managers Blog has three claim scenarios (here) involving:

• eCommerce & Denial of Service
• Defamation (by a Publisher)
• eCommerce & Disabilities

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Growth in the Soft Market

The soft insurance market is upon us with a vengeance.  For us, this means that pricing is down, terms are more generous and accounts are moving.  For many organizations a flat top line is the primary goal, and moderate declines in revenue the rule.  However, some organizations manage to combine an aggressive strategy with disciplined execution and grow in the soft market.

A recent publication (see here) by the Clarion Group, a management consultant, offers one perspective on growth which may (or may not) be applicable to our difficult market environment:

To sustain growth, a company must maintain a continuous pipeline of business-building initiatives...Most companies are preoccupied with existing businesses

The article discusses separating the new initiatives into stages to increase the chances of success.

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Credit Cards, Insurance & Rental Cars

As we all know, car rental companies charge massive fees for the insurance equivalent provisions in a car rental agreement, and credit card companies often provide coverage for this exposure.  Does it really work?  Two articles (here and here) point out some of the pitfalls, and a couple of insurance sites offer only limited comfort.

The two articles note that the coverage offered by credit card companies can still leave a renter with unexpected exposure.  Articles at AM Best (see here) and III (see here) point out the need to check with your providers.  Not great comfort or guidance for consumers.

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Update - See recent post here.

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NY – A Changing Regulatory Approach

The New York Insurance Department is taking a new approach to insurance regulation called principles-based regulation (see here).  A specific draft regulation (Regulation 185, see here) focuses on desired outcomes rather than the details or technicalities of traditional regulation.  One of the principles requires fairness in dealing with conflicts of interest and another requires clear and full disclosure.  New York Insurance Superintendent Eric Dinallo commented:

We expect to turn regulation from periodic 'gotcha' exams into a continuing dialogue. Companies that deal honestly with the department can expect to be treated honestly in return.

The New York Insurance department is also working on a draft regulation requiring all insurance producers to disclose the value of their compensation to clients (see here).  According to Steven Nachman, Deputy Superintendent for Frauds and Consumer Services, the regulation would:

ban any New York broker from accepting any compensation from an insurer if not disclosed to the client beforehand

While parts of this are certain to be controversial, a more principled approach to regulation is a strong step in the right direction.

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