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Lighthouse Property Insurance Corporation Announces Merger Closing

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Lighthouse Property Insurance Corporation Announces Merger Closing

ORLANDO, FL. – Lighthouse Property Insurance Corporation (Lighthouse) completed its previously announced merger plans with sister carrier, Prepared Insurance Company (Prepared). The combined company allows Lighthouse to assume the Prepared portfolio and write directly in the state of Florida, resulting in a unified carrier with over $200 million of gross written premium. Lighthouse also owns Lighthouse Excalibur Insurance Company, a Louisiana domiciled carrier with just over $60 million of gross written premium.

“We’re excited to bring the Lighthouse family to Florida,” said David Howard, President. “Now, Prepared joins Lighthouse as one company with over $50 million in policyholder surplus and 170,000 homes insured across the Southeast.”

Prior to the merger, Lighthouse offered property and casualty insurance policies in Louisiana, Texas, North Carolina, and South Carolina. With the acquisition of Prepared, Lighthouse will begin to offer its portfolio of insurance products to the residents of Florida.

“Lighthouse now has diversity across five states. That should give both our agents and policyholders the confidence that we are here, and we are here to stay,” said Bruce Bessire, Director of Sales. “We’re going to be a good partner today, and a good partner 10 years from now.”

Beyond the name change, Bessire made it clear that the transition to Lighthouse will be seamless. The current servicing, underwriting, and claims process for Florida policies remain the same. Lighthouse will continue to provide the same best-in-class service Prepared agents, and policyholders are used to receiving. “The only difference is that we’re now stronger as one company,” said Bessire.

“Due to the ongoing challenges of Florida’s homeowners insurance industry, now is the perfect time for a financially strong and trusted carrier to enter the market,” said Howard. “In a state with 20 million people, carriers in Florida will enjoy an opportunity to write very good business.”

Lighthouse holds a Financial Stability Rating® of A, Exceptional, from Demotech, Inc. and has been in business for 12 years. Since 2008, when the company first began writing homeowners policies in Louisiana, they have continued to expand their geographic footprint, revenue, and capital base, increasing statutory surplus each year.

For more information on Lighthouse, please visit: https://www.lighthouse.insurance/.

Only 22% of Generation Z Say They Are Prepared To Be Life Insurance Beneficiaries or Know About Life Insurance Claims

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Only 22% of Generation Z Say They Are Prepared To Be Life Insurance Beneficiaries or Know About Life Insurance Claims

WASHINGTON – America’s Generation Z— which has grown up as digital natives and is more likely to be engaged in social activism—is less engaged when it comes to life insurance. According to a recent survey from the National Association of Insurance Commissioners (NAIC), only 22% of Generation Z say they are prepared to be a life insurance beneficiary.

Despite the fact that 45% of Generation Z (18–23 years old) surveyed say they are listed as a beneficiary on a friend or relative’s life insurance policy, just 22% say they’re prepared with the information they need. Another 21% say they don’t know whether they’re a beneficiary at all.

According to the survey, just 23% of Generation Z beneficiaries say they know where the policy is stored, and only 25% know the name of the insurance carrier. Lack of the right preparation, including awareness of beneficiary status and basic policy information, leads to millions of dollars in unclaimed life insurance benefits each year.

To help consumers who do not have all the information that they need when a loved one passes away, the NAIC maintains a free tool to look up information, the Life Insurance Policy Locator (LIPL) tool.

The LIPL has helped 70,552 consumers locate life insurance policies and annuities on deceased loved ones, with a total claim amount of more than $885 million in benefits since its introduction in 2016. It’s free to use and available online, eliminating the need to contact multiple companies or agents to find a policy or identify whether there is a policy.

 

Survey Methodology

More than 1,000 consumers were surveyed online using SurveyMonkey between Jan. 2–13, 2020. Respondents included approximately equal numbers of Generation Z (18–23 years old), millennials (24–39 years old) and baby boomers (56–74 years old).

About the NAIC

As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. For more information, visit www.naic.org.

4 in 10 Agents Say They’ll Continue Working From Home Post-Pandemic

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4 in 10 Agents Say They’ll Continue Working From Home Post-Pandemic

SPRINGFIELD, Va. – A Channel Harvest Research survey of U.S. independent insurance agencies reveals about half expect to make no permanent transition to working at home when the pandemic is over, and all staff would return to the office.

However, 27% said at least some staff would continue to work from home, and 10% said that all employees would work at home. About 13% said they weren’t yet sure what they would do.

Each year, Channel Harvest conducts an extensive survey of thousands of independent agents around the U.S., and recently published its 2020 report. Its first pandemic-related instant poll was conducted April 15-16, with the latest May 20-21. Some 200 agents responded to each.

When combining those who say they’re going back to the office along with those who aren’t sure, the result is that 63% of agents say they have no firm plans to continue remote work once the pandemic is over, noted John Campbell, Channel Harvest principal. “And that’s probably an underestimate, as people tend to overestimate their ability and willingness to change things,” he said.

Morale Holding Up

In a follow-up to the April poll, agents were asked to rate the overall feeling and morale among their workforce on a scale of 0 (terrible) to 10 (wonderful).

Just 7% reported low morale (0-3 on the scale), down from 9% a month ago. And 38% said average (4-6), which is unchanged. Some 55% said morale is good (7-10), up slightly from last month. “Morale is holding, and agents generally are looking forward to a return to normal, rather than a new normal,” said Campbell.

Revenue Shifts

About half of respondents reported their agency revenue has dropped since the crisis started in early March, Channel Harvest found. This is an increase from the April survey, where 41% had reported a decrease.

On the other hand, 17% said they have posted increased revenue during the crisis, up from 10% in the April survey.

Life at Home

Many agents offered their opinions of working at home, and those who pre-planned for remote work were grateful they had prepared ahead of time with technology, phone systems and workflows. Here are some related comments:

  • “I had changed to a work-at-home status several years ago. We are able to perform all of our duties via phone, email, video conference or, meeting at their home/office just as well as in our own office.”
  • “We have learned a lot — will come through this with new skills.”
  • “Working from home has been a dream! I have no desire to return to the office. I would prefer to continue working in the privacy and safety of my own home.”
  • “Our agency did a test run on the virtual office concept in 2011. The best thing about this crisis is that 98% of all our mail is now received by email, whereas back in 2011 it was 75%. Now it’s possible to not have a physical office to process the incoming mail. We can drop mail in the working folders and allow staff to pick out their clients to process.”
  • “My agency embraces technology and supports their employees. We were very proactively sent home with our computers and phones, to start working at home. It was seamless — I have worked at other agencies. This is by far the most impressive one, from leadership, management and our tech support. The clients do not even know we are working from home when they call in for something.”
  • “I’ve been working from home full-time since our state stay-at-home order. We now have the possibility to work from home full time and our company can look for a smaller space when the lease is up. I have felt less stressed and my quality of life has improved. I miss my work family but we stay in touch and continue to keep our culture.”
  • “Remote officing works! Agencies better get behind this or risk losing their employees to agencies that do!”
  • On the other hand, some respondents say they will be happy to return to the agency office:
  • “It has been hard to stay out of the office and not personally see our clients. We have a relationship with most of them and feel not being there personally is not right. We have two staff members who have been going into the office and only using the lobby for contact. No one is going back to the offices. We are a very friendly group and this has been a real change for us.”
  • “Now that we are back in the office partially, we are seeing a better flow. People are happier now.”
  • “It will be a fight to get everyone back to the office. My goal is to start with volunteers after Labor Day and have everyone here by 12/31. But I suspect some like being at home and do not want to return. Some will be afraid to return.”

Some respondents also commented on revenue issues:

  • “The most difficult issue is generation of leads/new business opportunities. It has seemed insensitive to consider calling on owners who have had to deal with employee safety, devastating economic impact, and employee retention these past months.”
  • “I feel sales will increase … once clients feel somewhat comfortable with virus and another increase does not happen. If a second wave occurs it will be devastating for many people.”

About Channel Harvest Research: Each year, Channel Harvest pulses independent insurance agents in a syndicated, quantitative survey to ask 1) what they’re looking for in a carrier relationship, 2) how their carriers are performing against those preferences, and 3) their views on important issues in the insurance marketplace. Thousands of agents across the U.S. are invited to complete the survey via email solicitations from Channel Harvest and from participating insurance carriers. For information about the 2020 survey report, contact John Novaria, Channel Harvest’s industry relations director, at john@Aartrijk.com.

Swiss Re Corporate Solutions Launches HAIL, a Parametric Insurance Solution for Businesses Operating in 11 Hail-Prone States

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Swiss Re Corporate Solutions Launches HAIL, a Parametric Insurance Solution for Businesses Operating in 11 Hail-Prone States
  • Designed to protect companies from the financial impact of hail events
  • Addresses gaps in traditional insurance coverage in the event of a major hail storm
  • Uses third-party data provider (CoreLogic®) to trigger the pre-agreed pay-out
  • Hail can cause significant financial disruption to individuals, businesses and communities
  • In 2019, severe thunderstorm events caused almost USD 20 billion in insured losses in the United States, with four events causing more than USD 1 billion

NEW YORK –  Swiss Re Corporate Solutions (SRCS) expands its parametric offering with the launch of HAIL, a parametric hail insurance cover. The new solution is designed to protect companies in the United States from the financial impact of a significant hail event, such as physical damage, lost revenue due to business interruption, or significant retentions in traditional property policies.

SRCS signed a strategic agreement with CoreLogic®, a leading provider of hail data in the United States, to serve as its data provider. CoreLogic® delivers a proprietary hail verification model to verify the maximum hail size both at the location and in the surrounding area. SRCS will rely on CoreLogic® hail size metrics to determine whether a parametric policy is triggered.

Similar to other parametric solutions offered by SRCS, HAIL combines the customer location data with a pay-out table that outlines policy amounts for reported hail size at said location(s) during an event. In the days after a hailstorm, CoreLogic® provides the necessary hail size data. When a customer has hail damage and the hail size calls for a pay-out under the policy, instead of waiting for a loss evaluation, the payment is released soon thereafter. The customer is free to use the money for any financial loss associated with the event.

“We are excited to bring a parametric HAIL product to market in collaboration with CoreLogic®, a proven leader in the hail verification space,” states Cole Mayer, Vice President Innovative Risk Solutions. “The speed of pay-out, transparency in claims adjustment, and flexibility in the use of the funds make this a powerful tool to supplement traditional insurance policies or to buy as a standalone product if traditional coverage is less available.”

“Our mission at CoreLogic® is to help people find, buy and protect their properties. We deliver the industry’s most precise hail data solution that quantifies risk and verifies event location and severity from the same source data,” said Steve Brewer, Executive of Insurance & Spatial at CoreLogic®. “With our hail models, Swiss Re Corporate Solutions can confidently structure hail risk transfer solutions to better protect policyholders, slash cycle times and significantly reduce claims adjusting expense following hailstorms.”

HAIL is currently available in 11 states across the U.S.: Colorado, Illinois, Indiana, Iowa, Kansas, Minnesota, Montana, Nebraska, Oklahoma, South Dakota and Texas.

For more information about SRCS Innovative Risk Solutions, please contact your insurance agent or broker or visit Corporatesolutions.swissre.com.

About Swiss Re Corporate Solutions
Swiss Re Corporate Solutions provides risk transfer solutions to large and mid-sized corporations around the world. Its innovative, highly customized products and standard insurance covers help to make businesses more resilient, while its industry-leading claims service provides additional peace of mind. Swiss Re Corporate Solutions serves clients from offices worldwide and is backed by the financial strength of the Swiss Re Group. Visit corporatesolutions.swissre.com or follow us on linkedin.com/company/swiss-re-corporate-solutions and Twitter @SwissRe_CS.

Property & Casualty Insurers Raise Digital Games as COVID-19 Elevates Customer Expectations, J.D. Power Finds

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Property & Casualty Insurers Raise Digital Games as COVID-19 Elevates Customer Expectations, J.D. Power Finds

Significant investments in direct-to-consumer website and mobile design have helped property and casualty (P&C) insurance companies improve their digital service and shopping experiences. According to the J.D. Power 2020 U.S. Insurance Digital Experience Study,SM released today, property and casualty insurers have made across-the-board improvements in clarity of information, but many still struggle with the balance of too much information and a minimalist approach.

“The COVID-19 pandemic has thrust digital shopping and customer self-service solutions into the spotlight,” said Tom Super, head of property and casualty insurance intelligence at J.D. Power. “Even before the pandemic, property and casualty insurers were investing heavily in digital to capture the growing legions of customers and prospects who are experiencing their brands largely via web and mobile. Across the board, we’ve seen the fruits of those investments: overall satisfaction scores for both new insurance shopping and existing account servicing have risen sharply during the past year.”

The study, now in its ninth year, evaluates digital consumer experiences among P&C insurance shoppers seeking quotes and existing customers conducting typical policy-servicing activities. The study examines the functional aspects of desktop, mobile web and mobile apps based on five factors: ease of navigation; appearance; availability of key information; range of services; and clarity of the information. The study was conducted in partnership with Centric Digital, the leader in digital intelligence, and Corporate Insight, the leading provider of competitive intelligence and user experience research to the financial services and healthcare industries.

“The line between brand and digital brand is rapidly disappearing as the lion’s share of insurance shopping and customer support interactions move to digital platforms,” said Michael Ellison, president of Corporate Insight. “Increasingly, insurers’ ability to balance providing the right information at the right time in a format that represents their unique identity will be the key differentiator that separates industry leaders from the rest of the pack.”

Following are key findings of the 2020 study:

  • P&C industry meeting customer digital expectations—for now: Overall customer satisfaction with the P&C insurance customer service experience improves 9 points year over year (on a 1,000-point scale) and overall satisfaction with the shopping experience improves 18 points, as the past several years of investment in digital start to pay off. However, customer expectations continue to rise, with shoppers consistently accessing more information than they have in the past, across more channels than ever before.
  • TMI vs. minimalist mobile-first design: Finding the right balance when it comes to information density has been a challenge for insurers, with many providing too much complex and expansive information and others pushing heavily to a mobile-first approach. The ability to provide just the right amount of information is a key driver of customer satisfaction.
  • Forming a clear digital identity becomes key: Facing growing competition from insurtech start-ups and traditional carriers, property and casualty insurers need to be selective about the information they provide and how they present it digitally, with the objective being to create a corporate identity that flows from their overall brand strategies.

Study Rankings

GEICO ranks highest in the service segment for a third consecutive year with a score of 885. Allstate (877) and Liberty Mutual (877) rank second in a tie, while American Family (867) ranks fourth.

National General ranks highest in the shopping segment with a score of 835, which is up 43 points from 2019. Kemper (820) ranks second and Erie Insurance (818) ranks third.

The 2020 U.S. Insurance Digital Experience Study is based on 12,867 evaluations and was fielded in February-March 2020.

For more on the U.S. Insurance Digital Experience Study, visit https://bit.ly/3dvBtNK

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, Asia Pacific and Europe.

Corporate Insight (corporateinsight.com) is the recognized industry leader in competitive intelligence, user experience research and consulting services to the nation’s leading financial services and healthcare institutions for over 25 years. Its best-in-class research platform and unique approach of analyzing the actual customer experience help corporations advance their competitive position in the marketplace.

Property & Casualty Insurers Raise Digital Games as COVID-19 Elevates Customer Expectations, J.D. Power Finds

Liberty Mutual Appoints Steve Deane North America Chief Claims Officer, Global Risk Solutions

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Liberty Mutual Appoints Steve Deane North America Chief Claims Officer, Global Risk Solutions

Liberty Mutual Insurance has appointed Steve Deane North America Chief Claims Officer for Global Risk Solutions (GRS), Liberty Mutual’s global commercial and specialty lines (re)insurer, which provides a full range of innovative traditional insurance, specialty and reinsurance risk solutions to businesses around the world.

As Chief Claims Officer of GRS North America, Deane will lead a 3,000-person team of claims professionals focused on delivering best-in-class service and outcomes to GRS customers.  Deane will be responsible for all aspects of executive claims management and service delivery.  He will report to GRS North America President Tracy Ryan.

Prior to joining Liberty Mutual, Steve Deane led The Hartford’s Group Benefits & Workers Compensation Claims organization.  Before that, he was an attorney at Robinson & Cole, LLP, working on the insurance litigation team.

“Our claims service is a defining strength for Liberty Mutual, and I’m excited to have Steve leading this team,” said Ryan. “Steve brings a wealth of multi-line claims experience, having held a variety of roles in workers compensation, liability and complex claims. His strong experience and leadership skills will help continue to build on the value our claims organization delivers.”

About Liberty Mutual Insurance

At Liberty Mutual, we believe progress happens when people feel secure. By providing protection for the unexpected and delivering it with care, we help people embrace today and confidently pursue tomorrow.

In business since 1912, and headquartered in Boston, today we are the sixth largest global property and casualty insurer based on 2019 gross written premium. We also rank 77th on the Fortune 100 list of largest corporations in the U.S. based on 2019 revenue. As of December 31, 2019, we had $43.2 billion in annual consolidated revenue.

We employ over 45,000 people in 29 countries and economies around the world. We offer a wide range of insurance products and services, including personal automobile, homeowners, specialty lines, reinsurance, commercial multiple-peril, workers compensation, commercial automobile, general liability, surety, and commercial property.

For more information, visit www.libertymutualinsurance.com.

Genesee’s Georgia Office Welcomes Derek Sinclair to the Marketing Department

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Genesee’s Georgia Office Welcomes Derek Sinclair to the Marketing Department

Derek Sinclair has joined Genesee General’s Marketing Department in Alpharetta, Georgia. Derek’s primary role will be calling on agencies in the Mississippi and Alabama territory assisting them navigate through all the product offerings of Genesee. Derek has 18 years of experience in the insurance industry including production, retail agency sales and claims adjusting across the commercial and personal lines business. During his career, Derek Sinclair has specialized in the commercial lines with his previous position with Oxford Insurance Agency in Oxford, Mississippi. He is a 2002 graduate from the University of Mississippi with a degree in Insurance & Risk Management. Derek resides in Tupelo, Mississippi. In his spare time, he enjoys spending time with his wife of 9 years, Anna, their 3 young children, and anything outdoors.

6 in 10 Homeowners in High-Risk Flood Zones Don’t Have Flood Insurance, ValuePenguin.com Study Finds

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6 in 10 Homeowners in High-Risk Flood Zones Don’t Have Flood Insurance, ValuePenguin.com Study Finds

NEW YORK – Where disasters are concerned, 2020 is destined to go down in history as the year of the COVID-19 pandemic — but that doesn’t make the threat of seasonal weather events any less urgent. As the Atlantic hurricane season approaches, and severe flooding overwhelms parts of central Michigan – ValuePenguin.com has just published a report showing cities where homeowners face the greatest financial risk and exposure to flooding.

According to ValuePenguin.com’s analysis:

  • Across the 100 largest U.S. cities, there are only four active flood insurance policies for every 10 houses located in high-risk flood zones, or what FEMA designates as “100-year Floodplains”. Most of these policies are concentrated in regions such as Florida and Louisiana, where homeowners are widely aware of the flood risks and are adequately prepared.
  • In seven of those 100 major cities, there are fewer than two active flood insurance policies for every 100 houses located in a high-risk flood zone. These cities are Boise, Idaho, Riverside, California, Detroit, St. Louis, Cleveland, Minneapolis, and Youngstown, Ohio.
  • Homeowners in 100-year floodplains do not realize that their homes have a 26% chance of being flooded over the duration of a 30-year mortgage. FEMA maps out areas at high risk of flooding through the use of the 100-year floodplain — also referred to as special flood hazard areas (SFHAs), which have a 1% chance of flooding in any given year. While that may not sound like a high level of risk, it becomes substantial when multiplied over several decades.
  • FEMA’s changing maps are behind why so many homeowners in high risk flood zones don’t have flood insurance. Climate change and more accurate mapping techniques are placing more homes in the 100-year floodplain. There may be a lag between homes getting hit with the high-risk designation and getting notice that they now need flood insurance. Additionally, lenders and homeowners can appeal the flood zone designation of a property to avoid the expenses associated with flood insurance.
  • The average cost of flood insurance is $708/year but the rates vary greatly depending by property and location. Because standard homeowners insurance does not cover flood damage, it’s important for homeowners to obtain effective flood insurance as a separate flood insurance policy as soon as possible to mitigate the financial fallout from floods.

ValuePenguin.com analysts did a deep dive into data from the National Flood Insurance Program, as well as New York University’s Furman Center to identify the relationship between the number of active flood insurance policies and the number of owner-occupied housing units located in the 100-year floodplain. To view the full report, visit: https://www.valuepenguin.com/flood-insurance-coverage-cities

Top 50 Cities Where Homeowners Face the Biggest Risk From Floods
City Total housing units Housing units in 100-year floodplain Active flood insurance policies Homes With Flood Insurance
Boise, ID 252,922 8,718 1 0.00%
Riverside, CA 1,521,284 40,083 344 0.90%
Detroit, MI 1,891,400 57,380 495 0.90%
St. Louis, MO 1,234,148 26,863 307 1.10%
Cleveland, OH 956,075 14,738 196 1.30%
Minneapolis, MN 1,412,408 40,624 609 1.50%
Youngstown, OH 260,750 5,003 89 1.80%
Cincinnati, OH 917,451 23,599 477 2.00%
Pittsburgh, PA 1,107,264 22,111 447 2.00%
Grand Rapids, MI 407,242 8,883 181 2.00%
Akron, OH 314,191 6,790 140 2.10%
Chicago, IL 3,800,969 75,848 1,713 2.30%
San Francisco, CA 1,763,363 48,411 1,137 2.30%
Rochester, NY 471,973 9,231 235 2.50%
Ogden, UT 211,632 2,933 77 2.60%
Dayton, OH 368,556 9,503 275 2.90%
Orlando, FL 964,253 142,388 4,169 2.90%
Columbus, OH 832,255 27,324 917 3.40%
Bakersfield, CA 289,529 14,136 496 3.50%
Milwaukee, WI 671,344 17,172 609 3.50%
Albuquerque, NM 378,660 20,749 738 3.60%
Springfield, MA 254,960 5,735 204 3.60%
Syracuse, NY 289,354 5,907 228 3.90%
Hartford, CT 507,998 23,674 919 3.90%
Worcester, MA 377,803 8,842 344 3.90%
Boston, MA 1,900,927 134,685 5,323 4.00%
Providence, RI 693,380 44,686 1,881 4.20%
Allentown, PA 343,328 7,822 340 4.30%
Birmingham, AL 505,097 19,518 897 4.60%
Atlanta, GA 2,202,308 69,013 3,301 4.80%
Kansas City, MO 880,710 16,577 805 4.90%
Richmond, VA 514,700 11,092 605 5.50%
Madison, WI 273,123 7,901 447 5.70%
Toledo, OH 272,553 10,221 579 5.70%
Salt Lake City, UT 394,677 3,008 172 5.70%
Buffalo, NY 519,952 7,262 420 5.80%
Knoxville, TN 387,132 6,323 381 6.00%
Tulsa, OK 418,311 24,611 1,497 6.10%
Fresno, CA 321,955 4,734 291 6.10%
Memphis, TN 560,530 22,364 1,465 6.60%
Tucson, AZ 446,769 20,176 1,460 7.20%
Spokane, WA 233,817 1,717 126 7.30%
Harrisburg, PA 244,633 10,156 793 7.80%
Wichita, KS 269,297 10,813 884 8.20%
Oklahoma City, OK 550,954 21,956 1,808 8.20%
Modesto, CA 180,169 2,518 214 8.50%
Lancaster, PA 206,297 3,976 376 9.50%
Las Vegas, NV 857,131 9,751 930 9.50%
Chattanooga, TN 236,121 13,090 1,272 9.70%
Dallas, TX 2,606,732 93,600 9,335 10.00%

 

About ValuePenguin.com: ValuePenguin.com, part of LendingTree (NASDAQ: TREE), is a personal finance website that conducts in-depth research and provides objective analysis to help guide consumers to the best financial decisions. ValuePenguin focuses on value, assessing whether the return of a particular decision is worth the cost or risk of that option, and how this stacks up with the other possible choices they may have. For more information, please visit www.valuepenguin.com, like our Facebook page or follow us on Twitter @ValuePenguin.

Alabama Insurance Alliance Welcomes Waggoner as Agency Development Director

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Alabama Insurance Alliance Welcomes Waggoner as Agency Development Director

Alabama Insurance Alliance, Inc. (AIA), the leading alliance of independent insurance agencies in Alabama, announced that Angie Waggoner has recently joined its staff as Agency Development Director. In this role, she will be directly responsible for agency development and consulting services of AIA member agencies across Alabama.

Angie comes to AIA with a CIC designation, over 20 years of experience in the insurance industry, and a strong grasp of the Alabama market. She started her insurance career working for an independent agency and spent the last seven years as a senior sales executive for a large insurance company.

“I am thrilled to be part of the AIA team. My entire career has been spent in the insurance industry and I look forward to working one-on-one with member agents to achieve greater levels of success,” she said.

“We are very excited to welcome Angie to the AIA team,” said Sam Everette III, president of AIA. “With a proven track record of establishing and maintaining positive relationships to achieve new business growth, Angie’s expertise is well suited to support our members.”

Angie will work closely with Gretchen Jackson, AIA Regional Director, across the state. Together, they will be a resource for agencies facing start-up challenges, growing personal and commercial lines, technology adoption and usage, as well as new business and retention strategies.

An Alabama native, Angie resides in Greenville with her husband, Kerry, and teenage son, Stephen. She and her family enjoy spending time together catching baseball games and visiting different major and minor league baseball parks.

Best’s Special Report: Insurers Continue To Reduce Hedge Fund Exposures

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Best’s Special Report: Insurers Continue To Reduce Hedge Fund Exposures

OLDWICK, N.J. –  For a fourth straight year, the U.S. insurance industry reduced its hedge fund investments, by $2.6 billion in 2019 to $11.9 billion, with the property/casualty segment reporting a year-over-year reduction of 22%, the largest among the major industry segments, according to a new AM Best special report.

“Overall, rating units that reduced their holdings did so by almost $2.9 billion, while those that increased did so by $1.0 million”

The Best’s Special Report, titled “Insurers Continue to Reduce Hedge Fund Exposures,” states that the continued pullback leaves the property/casualty segment with $6.3 billion of hedge fund investments. The life/annuity segment (L/A) saw a fourth straight year of reductions of more than 10% (11.9% in 2019 to $5.1 billion). The health segment’s holdings also ticked down by roughly $100 million to approximately $490 million; however, hedge fund holdings are concentrated, as fewer than a dozen health insurers invest in this asset class. The report notes that the 2019 declines occurred despite the hedge fund industry posting a return of more than 11%, just the second time industry returns have exceeded double digits in the last six years.

Insurers’ hedge fund investment trends have followed the broader market, according to the report, as more than $97 billion in total hedge fund asset flows were pulled back in 2019. Companies rated by AM Best account for nearly 96% of the U.S. insurance industry’s total hedge fund holdings. Additionally, hedge funds are held predominantly by larger organizations, with more than 85% of holding held by companies with $1.25 billion or more in capital and surplus. “Overall, rating units that reduced their holdings did so by almost $2.9 billion, while those that increased did so by $1.0 million,” said Jason Hopper, associate director, industry research and analytics, AM Best Rating Services. “Many insurers continue to say they are not getting the returns needed for the fees and capital requirements costing them in the current environment.”

Insurers continue to modify their hedge fund investment strategies, with some notable changes in 2019. They substantially pulled back from long/short equity hedge funds, with book-adjusted carrying value declining by nearly $2 billion, the largest pullback. The health segment all but eliminated its exposure, while the life/annuity segment reduced its exposure by 56%, and the property/casualty segment by 36%. Multi-strategy also saw a decline of over $600 million, though it remains one of the two top options for all segments.

Higher-rated insurers generally have the capital and expertise to better absorb risk. AM Best will continue to monitor trends in hedge funds, as well as insurers’ alternative investments.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=297365.

To view a video discussion with Hopper about the report, please go to http://www.ambest.com/v.asp?v=ambhedgefunds520.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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