Risk & Business Magazine Spectrum Insurance Magazine Summer 2018 | Page 3

16 WELCOME feature DR. MARSHALL GOLDSMITH: BAD HABITS OF SMART LEADERS CONTENTS 4 THE FIRST 24 HOURS AFTER AN INJURY 6 DIRECTORS & OFFICERS INSURANCE FOR PRIVATE COMPANIES 9 TO BUY OR TO BUILD,THAT IS THE QUESTION Expert Tim Miller Weighs In 10 BODY LANGUAGE TIPS FOR ENTREPRENEURS 12 FIVE WAYS A BUSINESS LOSES SALES 14 FIND MORE TIME IN YOUR DAY Welcome to the summer 2018 edition of Risk & Business Magazine. Spectrum Insurance Group is pleased to provide this magazine as a valuable resource for your company. Our purpose is to bring relevant content to help your business succeed. Inside, 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 trust you will find these articles informative and useful to the success of your business. Each year, policyholders approach their insurance brokers with one common question: Are my premiums going to go up? This may seem like a simple inquiry, but many factors play into the rise and fall of insurance rates — factors that can differ dramatically year over year. As predicted, 2017 was mostly a buyer’s market for P&C insurance. In fact, most policyholders enjoyed rate decreases. Both market capacity and competition for new business remained strong, thus keeping prices down overall. Furthermore, insurance industry surpluses reached an all-time high of over $700 billion in mid-2017. However, while pricing predictions remained accurate throughout last year, a string of natural disasters and high-profile cybersecurity events had a sweeping impact on the market. These unpredictable, large-scale losses will continue to have a broad influence on insurance pricing for 2018. Between Hurricanes Harvey, Irma, and Maria, the estimated total losses for commercial lines ranged from $85 billion to $100 billion. Those figures create a situation where losses and expenses are outpacing overall premium growth for many insurers. To further complicate things, a dangerous cyber landscape remains in the forefront of underwriters’ minds. The Equifax breach alone is expected 22 TEN PUBLIC SPEAKING TIPS to cost international insurance markets as much as $150 million. This and other expensive breaches will likely lead to pricier cyber insurance 24 INTERVIEW BETTER: terms in 2018. Organizations must protect against high-profile data Myth’s Exploded breaches and impostor fraud if they are to reduce their risks, especially as a broad-level focus on cyber, crime, and reputational risk loss mitigation is 26 EMPLOYMENT PRACTICE LIABILITY INSURANCE: imminent. More Than Wrongful Termination and Sexual Harassment WHERE IS THE MARKET HEADED IN 2018? 28 PREPARING YOUR BUSINESS FOR DISASTER 20 STEPS TO BUILDING AN ONLINE INFLUENCE 30 COMPLIANCE BULLETIN It’s difficult to predict how much of an effect the major losses of 20 17 will have on the market in 2018. While many forces influence insurance, catastrophic losses and major cybersecurity events are some of the more tangible, easy-to-measure indicators of where the market is headed. Overall, organizations should brace for rate increases and a hardening renewal market spurred on by devastating events. Sincerely, Darrel Zaleski, Owner SPECTRUMINSGROUP.COM 3