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TULIP MEDIA GROUP Toll Free : ( 877 ) 719-8919 TulipMediaGroup . com
Tulip Media Group Erika MacLeod Jessica Embree Stacey O ' Brien
Alicia Ambrose
Vinnie Hager Peter Diamandis Melissa Ambrosini Scott Stratten Eric P . Wokas Robin Manougian Gwenyth P . Luu
All images sourced from Tulip Media Group or iStockcom unless otherwise identified .
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2 LETTER FROM THE PRESIDENT
3 IT AIN ’ T OVER ’ TIL IT ’ S OVER Eric P . Wokas
4 HALSTED : 145 YEARS OF ADAPTABILITY Gwenyth P . Luu
6 HOW XPRIZE WORKS Peter Diamandis
8 HOW TO AVOID BURNOUT Melissa Ambrosini
10 SALES CLOUD Scott Stratten
12 THE GAME CHANGER : RISK MANAGEMENT IN THE AFTERMATH OF THE SURFSIDE TRAGEDY Robin Manougian
WELCOME
As we head into fall we are faced with a multitude of issues that continue to have a negative effect on the insurance marketplace . The California wildfires continue to burn almost 2 million acres as of the end of August according to the CA . gov website . The Dixie fire has burned over 860,000 acres and is only 55 % contained , while the Caldor and Monument fires have burned 176,000 and 26,000 acres and are only 25 % contained . The Caldor and Monument fires are closing in on Lake Tahoe and other areas that have not burned in over 100 years . Damage to Tahoe is unprecedented in California fire history .
Hurricane Ida made landfall 16 years to the day after Hurricane Katrina in New Orleans , LA leaving over a million folks without power for weeks and the damage yet to be surveyed . It was estimated that Ida had caused almost $ 20 billion in insured damages in Louisiana , Mississippi , and Alabama before slamming through New Jersey , New York , and Connecticut dumping up to 13 inches of rain in a few hours . We are taking flood claims from many areas that have never flooded before here in New Jersey . Many people do not realize that 35 % of all flood claims are not in special flood hazard areas according to the National Flood Insurance Plan ( NFIP ). The $ 20 billion estimate is certain to increase over the next few months as the damage is surveyed .
The Champlain Towers South Condominium building collapse in Surfside , Florida was one of the deadliest building collapses in US history leaving 97 people confirmed dead . The circumstances leading up to the collapse will be investigated and litigated for years to come . However , its effects were immediately felt in the tightening of the insurance underwriting of older buildings on the coast . Umbrella liability , already suffering from large premium increases and reduced limits due to Nuclear Judgments ( See our Summer 2021 R & B Magazine ) became even more difficult to purchase . For a more in-depth look at this loss , my colleague Robin Manougian addresses this tragedy in her article : The Game Changer : Risk Management in the Aftermath of the Surfside Tragedy ( Page 12 ).
All of this continues to lengthen an already long hard market . According to the Council of Insurance Agents and Brokers ’ ( CIAB ) Commercial Property / Casualty Market Report , Q2 2021 was the 15th consecutive quarter of increased premiums , with respondents reporting an average increase of 8.3 % across all-sized accounts .
Premiums increased for all lines of business for the 5th consecutive quarter , though price increases for all lines moderated in Q2 2021 compared to previous quarters . The only exception was cyber , which recorded the highest premium increase out of all lines , 25.5 %, surpassing a 17.4 % increase in Umbrella by a significant margin .
I have not seen such a prolonged hard market in my 32 years in the insurance business . At a recent conference I attended ( virtually ) they were predicting the prices for insurance would continue to increase at least through 2022 and probably beyond . These catastrophic storms are much more frequent and severe in terms of insured damage-causing carriers to continue to increase pricing , restrict coverage , and reduce capacity in order to stay ahead .
As we approach budget season , once again you need to plan for your insurance costs to continue to increase for next year .
VINNIE HAGER , PRESIDENT , JGS INSURANCE EST . 1919 JGSINSURANCE . COM