PUBLISHER Tulip Media Group
MANAGING EDITOR Erika MacLeod
GRAPHIC DESIGN Heather Crossman
CONTENT COORDINATOR Stacey O ' Brien
ADVERTISING ( LOCAL ) Alicia Ambrose
CONTRIBUTORS Vinnie Hager David Velasco Barry E . Fields Vanessa Van Edwards Andrew Davis Neil Patel Robert A . Travis Gwenyth P . Luu Ken Hager Eric P . Wokas
PHOTOGRAPHY Images sourced from Tulip Media Group or iStock . com unless otherwise identified
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JGS Insurance Risk & Business Magazine TM is published by Tulip Media Group . All content , copyright © 2021 , Tulip Media Group . All rights reserved . Risk & Business Magazine TM is a valued and recognized trademark of Tulip Media Group . This publication may not be reproduced , all or in part , without written consent from the publisher . Every effort has been made to ensure the accuracy of all content in this publication , however , neither the publisher nor JGS Insurance will be held responsible for omissions or errors . Articles , reports and information contained herein reflect the views of the individuals who wrote or prepared them and do not necessarily represent the position of the publisher or JGS Insurance . The material herein is intended for educational and informational purposes only . Nothing herein is to be considered the rendering of insurance advice for specific cases or circumstances . Communication of any legal information contained herein does not constitute an attorney-client relationship , nor convey legal advice or recommendation of any kind . Do not rely on information contained herein to replace consultation with qualified brokers , attorneys or other professionals in your jurisdiction . Please address all editorial and advertising inquiries to Tulip Media Group , Email : Erika @ TulipMediaGroup . com . Tulip Media Group is not held responsible for the loss , damage or any other injury to unsolicited material ( including but not limited to manuscripts , artwork , photographs and advertisements ). Unsolicited material must be included with a self-addressed , overnight-delivery return envelope , postage prepaid . Tulip Media Group and JGS Insurance will not give nor rent your name , mailing address or other contact information to third parties . Subscriptions are complimentary for qualified individuals .
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CONTENTS
Memorial Day traditionally is the unofficial start to summer here in New Jersey . While this year ’ s Memorial Day weekend was hampered by a three-day nor ’ easter that brought cold weather , rain , and sustained winds , it still had a celebratory feel to it . With Governor Murphy lifting the mask requirements for vaccinated individuals in most indoor situations , along with the capacity limitations on most venues , we were not going to let a little “ weather ” hold us back ! Restaurants were at capacity , bars were full , and there was a sense of things returning to normal at the Shore . Hopefully a good sign that summer 2021 will be a boost to reopening the economy and a return of businesses that have been hampered or shuttered in the past 16 plus months since the start of the pandemic .
A look at insurance market conditions still indicates that we are in the midst of a “ hard market ” with respect to premium pricing and underwriting capacity . While prices increased again in Q1 2021 , there were further signs that the pace of premium increases in 2020 moderated slightly . The average premium increase across all-sized accounts was 10 percent in Q1 2021 , down from Q4 2020 at 10.7 % and Q3 2020 at 11.7 %.
According to the Council of Insurance Agents & Brokers ( CIAB ) Commercial Property / Casualty Market Report Q1 2021 ( January 1 - March 31 ):
• Q1 2021 was the 14th consecutive quarter of increased premiums , with respondents reporting an average increase across allsized accounts . As with previous quarters , premiums increased the most for large
Welcome !
LETTER FROM THE PRESIDENT
accounts , at 12.9 %, followed by medium accounts at 10.9 %, and small accounts at 6.3 %.
• Premiums increased for all lines of business , including Workers ’ Compensation , for the 4th consecutive quarter . Highest among them was again Umbrella , with an average premium increase of 19.7 %, followed , notably , by Cyber at 18 %.
• Underwriting tightened significantly for troubled lines like Cyber and Umbrella . Additionally , capacity contracted for both of those lines , with nearly 80 % of respondents reporting a decrease in capacity for Umbrella and 73 % reporting the same for Cyber .
• Respondents indicated that the COVID-19 pandemic ’ s impact was still being felt in Q1 2021 . Most respondents said the pandemic impacted pricing , availability of coverage , renewals , and underwriting trends .
Our magazine cover spotlights one of the main reasons for the dramatic turn in the Umbrella market : “ Nuclear Verdicts .” An article by Ken Hager ( page 14 ) is worth reading for a better understanding of how this issue is not going away anytime soon . We do not expect the Umbrella market to get better in terms of pricing or capacity even if we start to move toward a soft market in other lines of insurance , unless this issue gets addressed legislatively .
Looking forward to spending time eating and drinking with friends in person this summer ! Wishing you all a great summer 2021 . +
Vinnie Hager , President JGS Insurance est . 1919 JGSINSURANCE . COM
2 LETTER FROM THE PRESIDENT
3 SCORE FOR THE CURE TO TYPE 1
DIABETES- David Velasco
4 REFERENCE-BASED PRICING - Barry E . Fields
6 PRIMING PSYCHOLOGY - Vanessa Van Edwards
2
8 WHO IS NOT YOUR CUSTOMER ...
- Andrew Davis
10 USING YOUR OWN BRAND AS YOUR SEO SECRET WEAPON
- Neil Patel
12 THE CIRMS DESIGNATION
- Robert A . Travis
13 5 HUGE CHALLENGES INSURANCE COMPANIES FACE - Gwenyth P . Luu
14 WHAT ’ S A NUCLEAR VERDICT - Ken Hager
15 UNQUALIFIED DRIVERS Eric P . Wokas