Every year I am startled to realize that it’s time again to begin the annual insurance renewal dance. APEI will be sending out renewal applications to brokers in the next couple of weeks, so you should expect to be hearing from your broker soon.
Although it’s still too early to promise anything, here is a short version of what you might expect when you get your insurance quotes later this spring:
- No Decrease in Property Rates. Hurricane Sandy ruined it for the rest of us. Sandy put the pinch on many large property insurance companies, who therefore are pressing for higher rates. Fortunately APEI has had few major property losses in recent years, meaning that we can expect our rates to remain fairly stable. However although rates should be stable, we expect most members will be increasing their property values, hence raising their premium.
- Flat Liability and Auto Rates. APEI members continue to have good loss experience for these lines of business, and consequently overall program rates should remain fairly flat. Of course, individual premium rates will vary, because a member’s individual loss experience is the single most significant factor in determining liability or workers’ compensation premium rates.
- Higher Medical Costs Mean Higher Workers’ Compensation Rates. We are anticipating workers’ compensation rate increases of as much as 10% program-wide, due to ever-increasing medical costs for these claims. We continue to push for constructive legislative reforms to address this problem, but to date no bills have been introduced. If you have the chance, please encourage your legislators to consider changes to the workers’ compensation system to bring medical fees under control.
As always, this time of year provides excitement tinged with a hint of trepidation. In the coming months we will be busy working with our excess and reinsurers to put together the best possible program for our members. At the same time we will be working with your insurance brokers to gather necessary information and develop quotes as quickly and efficiently as possible. This year, reinsurers are requiring complete and accurate underwriting information (the stuff you put in the renewal application and schedules), so please pay careful attention to detail. Thanks.