Risk & Business Magazine JGS Insurance Winter 2019 - Page 3

Welcome! LETTER FROM THE PRESIDENT I am thrilled to welcome to the JGS family, the team at the John Manougian Insurance Agency (JMI) located in Silver Spring, Maryland! In September, JGS Insurance acquired the agency and will be expanding our footprint in the metro- Washington, DC, region. The team will be led by Chris and Robin Manougian as practice leaders. JMI was founded in 1970 by John Manougian and is currently serving the needs of more than 600 community associations throughout the metro- Washington, DC, area. Both JGS and JMI have developed a specialty over the past four decades in community association business insurance, and both are family- owned businesses whose principals have known and respected one another for more than 25 years! “This is a terrific marriage of two strong agencies,” stated Robin. “JGS brings the strength of a larger infrastructure, additional markets, and a similar strong philosophy on service that will allow us to represent our clients more efficiently in an ever-evolving industry climate. JGS understands the unique and complicated nature of community associations and the importance of keeping ahead of coverage exposures and trends. Our long- held goal—to be the most knowledgeable insurance practitioners and to offer unparalleled service to our clients— perfectly aligns with JGS Insurance.” We are excited they elected to join JGS! You can check out Robin’s first contributing article—on Tree Liability— on page 6. I mentioned in my last note that we were starting to see slight increases in the marketplace for property insurance and double-digit increases for commercial automobile. More and more reports are coming out indicating that the insurance market is “hardening.” A “hard market” in the insurance industry is defined by the International Risk Management Institute as “the upswing in a market cycle, when premiums increase and capacity for most types of insurance decreases.” While I don’t anticipate large fluctuations in the marketplace (20%– 50%) as we have in past hard markets (2002–2004), we are certainly seeing consistent pricing increases. In addition to property, we are now experiencing increases in liability, directors and officers liability, and other lines. If you are looking at your budget for 2020 insurance, I would expect a minimum rate increase of 5–10% overall for those businesses with little to no loss experience. For those accounts that have had some losses, or aging buildings that have not been updated, you will probably be looking at 10%–15% rate increases in 2020. We are also seeing a decreased capacity for some lines of business for high-limit umbrellas. There are certainly steps you can and should be taking to mitigate some of these increases and make your organization a better risk to the insurance carriers. Often times, you are making changes and upgrades to your buildings, mechanics, staff training, and safety training as part of your normal course of business. Are you communicating these changes to your broker? Any updates or preventative measures you are taking should be communicated to your broker so that it can be presented when marketing. I wish you all a wonderful holiday season and a healthy and prosperous 2020! + Vinnie Hager, President JGS Insurance est. 1919 JGSINSURANCE.COM 3