Risk & Business Magazine Spectrum Insurance Magazine - Spring 2019 | Page 3

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WELCOME
feature
SIMON SINEK
THE SCIENCE OF WHY
CONTENTS
Welcome to the spring 2019 edition of Risk & Business Magazine. Spectrum
Insurance Group is pleased to provide this magazine as a valuable resource for your
company. The purpose of the magazine is to bring you relevant content to help
your business succeed. Inside this edition, you’ll find many great articles related to
business insurance, employee benefits, safety/risk management, employment law,
banking, financial management, and general business topics. We think you will
find these articles informative and useful to the success of your business.
When Spectrum Insurance Group was started in 2007, one of the core values
we established was to provide value-added services to our customers. Risk &
Business Magazine provides another outlet to help inform and educate not only our
customers but all businesses located throughout the state of Wisconsin. What’s
good for all businesses in Wisconsin is good for Spectrum Insurance Group!
28 COMMERCIAL PROPERTY COINSURANCE State of the Insurance Market in 2019
The current pricing environment for property/casualty insurance is seeing modest
increases, with commercial and personal auto rates rising by mid-to-high single
digits, homeowners and commercial property rates rising by low- to mid-single
digits, and commercial casualty rates showing smaller changes, according to a
Moody’s Investors Service rate change and trend survey of insurers it rates.
Workers’ compensation dividends remain at very high levels in Wisconsin even
with the six percent average rate decrease effective October 1, 2018. Continued
downward rate pressure will ultimately lower dividends as insurers’ results
continue to erode in workers’ comp. All eyes will be on WCRB to see what the next
rate change in October brings. Employers can more than likely expect another
average rate decrease to offset reductions in dividends.
Given catastrophes and rising construction costs, watch for property rates to
continue upward on a moderate pace. Commercial property insurers sought overall
rate increases of about four percent in 2018, an increase from overall declines in
2015–16 and flat pricing in 2017. Expect insurers to continue boosting rates by low
single digits. While the 2018 catastrophes will keep the upward pressure on loss
costs and rates, the P/C market has ample capital to absorb the latest events and
limit the overall rate increases.
Despite significant rate increases since 2012, commercial auto remains one
of the worst performing P/C insurance lines, although there has been gradual
improvement because of rate increases of about 9.5 percent in 2018, following
increases of seven percent in 2017. Insurers see commercial auto loss costs rising by
four to five percent in 2018–19, reflecting increased miles driven, higher attorney
involvement in claims, a jump in large claims (over $10 million), and a tight labor
market with transportation firms hiring inexperienced drivers.
Overall, businesses should expect rate increases on their auto premiums but flat
pricing on property, general liability, and lower workers’ compensation rates. It’s
difficult to predict how much longer we will remain in the current soft market
for premiums as many forces influence insurance. Catastrophic losses and major
cybersecurity events are some of the most tangible, easy-to-measure indicators of
where the market is headed.
30 HEALTH CARE CONSUMERISM Sincerely,
3 LETTER FROM THE OWNER
5 CYBER LIABILITY
6 WORKERS’ COMPENSATION COSTS
8 OVERTIME REGULATIONS
9 YOU'VE GOT 18 SUMMERS
Jim Sheils
10 GRIT
Angela Duckworth
12 SPONSORED CONTENT
Joe Pulizzi
14 7 CORE BELIEFS OF GREAT BOSSES
Dr. Travis Bradberry
20 THIS ONE HABIT HOLDS TOP LEADERS BACK
Judith E. Glaser
22 OUR VALUES
Shawn Hunter
24 TOP 7 SOFT SKILLS
John DiJulius
25 A SUCCESSFUL SAFETY AND HEALTH PROGRAM
26 SOCIAL ENGINEERING
Darrel Zaleski, Owner
SPECTRUMINSGROUP.COM
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