Premium renewal rates rise in all sectors but comp: Ivans

Published by Sharlie Reynolds on January 16, 2019

See below from Business Insurance. Once again, comp was the only major commercial sector to see premium price relief in 2018.

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Insurance premium renewal rates in the fourth quarter rose across nearly all major commercial lines compared with the previous quarter, except in workers compensation, according to the 2018 Ivans Index.

Premium renewal rate changes in commercial auto averaged 4.66% in the fourth quarter, which was higher than any quarter in the previous year, which saw its high in September 2017 with an average premium renewal rate change of 4.5%.

In the business owner policy sector, the fourth-quarter premium renewal rate change averaged 4.23%, which was 0.8% greater than in the third quarter. According to Ivans, BOP experienced the most variability in average premium renewal rates between 2017 and 2018.

Although general liability began 2018 with lower average premium renewal rates, the rate change rose 0.44% in March 2018 compared with the same quarter in 2017. That trend continued with the premium renewal rate change averaging 2.54% in the fourth quarter, an increase of 0.19% compared with the third quarter.

Commercial property experienced quarter over quarter increases in 2018, ending with an average rate change of 3.74% in the fourth quarter, which was 0.4% higher than the third quarter. Umbrella also experienced higher premium renewal rate changes in 2018, finishing the fourth quarter with an average renewal rate change of 2.42%, an increase of 0.7% over 2017.

Workers comp average premium renewal rates, however, dropped to -3.04% from the third-quarter average of -2.76%. The average premium renewal rate change in workers comp also consistently fell compared with 2017, except for during December.

Libertate/RiskMD Merge with Ballator Group

Published by Sharlie Reynolds on December 18, 2018

ORLANDO, December 18, 2018 / PRNewswire / —

IMMEDIATE RELEASE: RiskMD and Libertate Insurance merge with Ballator Insurance Group

Ballator Insurance Group (“BIG”) and Libertate Insurance/RiskMD have merged to combine forces in support of insurance placements and data management for Professional Employer Organizations (“PEO’s”). BIG and its senior management team have created multiple risk-bearing entities with specialization in “governmental entities”, “not for profits” and “automotive dealers”. Libertate is a general agency focused on the property and casualty insurance needs of the PEO industry and RiskMD manages data based on a recently patented process.

“The combination of these entities is truly accretive” according to the head of Libertate, Paul Hughes. “I have known the management team of Ballator for many years and we share common values, beliefs and vision. They are going to be a tremendous influence in the next chapter of supplying best of class capacity, data management and professional consultation to our PEO clientele. Our combined capabilities allow us to go very deep in what we are able to offer whether as an insurance agent, a due diligence/data consultant or overall trusted advisor. Our resources are now greater than ever before.”

According to Ballator CEO Shane Caldwell, “We are very excited about the the addition of Libertate to the Ballator group of companies. Libertate’s specialty focus and RiskMd’s innovative technology will prove to be a great enhancement for our team members and clients.”

The combination of Libertate’s premiums with that of B.I.G. brings overall property and casualty premiums under management to close to $200m.

Florida comp rate cut 13.8% in commissioner’s final order

Published by Sharlie Reynolds on November 13, 2018

It’s official…effective January 1st, workers’ compensation rates in Florida will decrease by -13.8%. We will share the new rates as soon as we get our hands on them.

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Florida Insurance Commissioner David Altmaier has issued a final order for a 13.8% workers compensation rate decrease for 2019.

This applies to both new and renewing workers comp policies effective in the state as of Jan. 1, according to a statement issued on Friday by the Office of Insurance Regulation.

The final rate reduction is slightly larger than the 13.4% decline submitted by the National Council on Compensation Insurance in August.

Workers compensation rates in the state have been significantly impacted in recent years by two major court decisions: in Marvin Castellanos v. Next Door Co. et al., the Florida Supreme Court ruled 5-2 that Florida’s mandatory attorney fee schedule was unconstitutional while in Bradley Westphal v. City of St. Petersburg, the Florida Supreme Court ruled that the state’s 104-week cap on temporary total disability benefits was unconstitutional.

Tennessee Insurance Commissioner Approve 19% Comp Rate Cut

Published by Sharlie Reynolds on November 6, 2018

It’s official…comp rates in Tennessee will be dropping -19% as of 3/1/19. See more below from Business Insurance News.

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Tennessee Department of Commerce and Insurance Commissioner Julie Mix McPeak has approved a 19% reduction in workers compensation rates in the state.

The 19% reduction was recommended by the National Council on Compensation Insurance in August and the commissioner approved the decrease on Oct. 31, according to a statement issued by the department on Monday. The reduction will become effective on March 1.

Previous reductions of 12.6% and 12.8% were approved for 2018 and 2017, respectively, according to the statement.

Rate reductions have been attributed to reforms of the state’s workers comp system and fewer significant workplace injuries, according to the statement.

Workers’ Compensation Insurance 13.8% Rate Decrease for 2019

Published by Sharlie Reynolds on November 5, 2018

See below from FAPEO’s Robert Skrob regarding the impending workers’ compensation rate decrease in Florida.

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TALLAHASSEE, Fla. – Florida Insurance Commissioner David Altmaier issued an Order Friday notifying the National Council on Compensation Insurance (NCCI) that its 2019 rate filing proposing a 13.4 percent decrease, if amended by November 7, 2018, will be approved as a slightly larger workers’ compensation rate decrease of 13.8 percent. Approval of a revised rate decrease is contingent on the amended filing being submitted with changes as stipulated within the Order. If approved by OIR, the revised rate decrease would become effective on January 1, 2019, for new and renewal business.

19% Workers’ Compensation Rate Decrease Proposed for Tennessee

Published by Sharlie Reynolds on September 12, 2018

NCCI is recommending a sizable rate decrease for Tennessee at -19%. If approved, the decrease will be effective 3/1/19. See more information below from Insurance Journal.

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The National Council on Compensation Insurance (NCCI) has filed for a 19.1 percent decrease for workers’ compensation voluntary market loss costs in Tennessee – the largest recommended decrease since reforms to the state’s workers’ compensation system were passed in 2013.

The filing, made towards the end of August, is based on premium and loss experience for policy years 2015 and 2016, according to a filing executive summary released by NCCI. If approved the rates would go into effect March 1, 2019.

NCCI said the proposed decrease is attributed in part to a continued decrease in Tennessee’s lost-time claim frequency. NCCI also noted that both indemnity average cost per case and medical average cost per case have remained “relatively stable” in recent years after adjusting to a common wage level.

The proposed changes in voluntary loss cost level by industry group are as follows:

If approved, the rate decrease would be the eighth consecutive reduction in workers’ compensation rates. Last year, NCCI filed for a rate reduction of 12.6 percent and a 12.8 percent reduction was approved in 2016. Insurance carriers combine NCCI’s loss cost filings with company experience and expenses to develop insurance rates. In 2017, the Tennessee Department of Commerce & Insurance noted that since Tennessee introduced significant changes to its workers’ compensation system in 2014, NCCI filings have totaled loss cost reductions of more than 36 percent.

The workers’ compensation reforms that took effect in 2014 included the creation of a new administrative court system to handle workers’ compensation claims – moving the state’s claims process from a tort system to an administrative one. The reforms also established medical treatment guidelines and provided a clearer standard in determining to what degree an injured worker’s medical condition may have contributed to the cause of an on-the-job injury.

In June, a study by the Workers Compensation Research Institute (WCRI) attributed a drop in the average total cost per workers’ compensation claim of 6 percent in 2015 in part to the state’s workers’ comp system reforms.

“Most of the 6 percent decrease in the average total cost per workers’ compensation claim in Tennessee was from a 24 percent decrease in permanent partial disability (PPD) benefits. Total costs per claim incorporate payments for medical treatments, indemnity benefits, and expenses to manage claims,” said Ramona Tanabe, WCRI’s executive vice president and counsel, said in a statement at the time.

The WCRI study, which compared Tennessee workers’ compensation systems in 17 other states, also noted that worker attorney involvement has decreased in recent years and that time to first indemnity payment within 21 days of injury in Tennessee was similar to the other study states during 2016/2017. The study used claims data with injuries dating back to Oct. 1, 2014, and payments made through March 31, 2017.

Insurer trade group the Property Casualty Insurers Association also noted the impact the 2013 reforms have made in the state.

“Tennessee has had excellent financial results in the workers compensation market following the workers compensation reforms of 2013,” said Jeffrey L. Brewer, vice president of PCI Public Affairs. “Claims frequency continues to decline as a result of automation and improved employer safety programs. Loss costs appear to be stable.”

A spokesperson for TDCI said in an e-mail to Insurance Journal that it would be premature for the department to comment on the potential for a rate reduction given that the figures are preliminary and still need to be examined by actuaries. Commissioner Julie Mix McPeak has 90 days from the filing date to make a decision on the filing.

Gradient A.I., spun out of Milliman, looks to midsize insurers for growth

Published by Sharlie Reynolds on August 20, 2018

We are very excited for our friends at Gradient A.I. and look forward to introducing their best-in-class predictive analytics model to our family, friends, clients and prospects. Congratulations Stan and team!

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Stan Smith, founder and CEO of gradient A.I., has acquired the company from its former parent, the insurance advisory firm Milliman.

Gradient provides predictive analytics and data warehousing services to insurance companies, powering its underwriting and claims-management models with AI. There’s a staff of about 20 who are coming with Smith in the new era of the company. Terms of the deal were not disclosed

Smith joined Milliman in 2013 to start gradient after launching a series of startups including a predictive modeling service for supply-chain management. Milliman decided to spin the unit out because it felt it didn’t dovetail with its consulting services.

“There wasn’t alignment, so I purchased what I didn’t already own from the business,” Smith explains.

Gradient’s current clients are risk pools, self-insured companies and small mutuals. These include the Connecticut Interlocal Risk Management Agency (CIRMA), The Builders Group and A.I.M. Mutual.

“It’s a tough space to start but if you prove yourself you can move up,” Smith says. “We’re fortunate that a lot of the clients we’ve worked with are happy to share knowledge and experience.”

The database that gradient works off of includes data from its clients, Milliman and other third-party sources. Smith says the company anonymizes information as much as it can, and segregates as needed depending on usage agreements. Now, the goal is to operationalize it for bigger clients.

“We’re seeing a pull from the midmarket — bigger than we initially targeted. These are carriers up to a billion dollars in premium,” Smith says. “Even companies with hundreds of millions in premium have a small number of anomalous outcomes. Having a big data set, because we started in Milliman, will help.”

Published by Digital Insurance

Author: Nathan Golia

Senator Nelson Fundraiser Held On Campus at Libertate Insurance

Published by Sharlie Reynolds on May 4, 2018

One of the best things about working out of a non-traditional office is the opportunity to house really cool events. The recent NAPEO fundraiser for Senator Nelson did not disappoint!

On Friday, April 20th, Libertate was fortunate enough to participate in this fabulous event that raised money for Senator Nelson who has been a long-time supporter of PEO initiatives such as the Small Business Efficiency Act (SBEA). Additionally, he helped educate his fellow legislators on how to address PEOs and the Affordable Care Act (ACA). Thanks to Senator Nelson, NAPEO and to all of those that participated.