Login to Big "I" Markets  /  Retrieve Password      April 25, 2017

In This Issue:
AIG Affluent Homeowner    |    Special Feature    |    Flood    |    Webinars
A robust variety of coverages for your clients' small businesses. Proprietary BOP product, Workers' Comp, Commercial Automobile, & Commercial Umbrella.
Provides comprehensive professional liability coverage for architects, engineers, and surveyors with the expertise to understand a firm's needs and the decision-making authority to get the job done.
Chubb and its predecessor companies have offered unparalleled stability and protection for small boats, yachts, luxury mega-yachts, and more.

By Michael Welch, Big I Advantage Marketing Assistant

Say you want to start amassing a collection of exotic cars. Where would you begin? You could start by checking out the auctions and hiring professionals to scour the world for rare finds. Of course if you're Jay Leno, they will come to you.

Now you'll need a place to keep and display them. Then you'll need a house that complements the collection with entertainment areas, bars, artwork, pools and double digit numbers of bedrooms and bathrooms.

Who has that kind of time? I know I don't. Fortunately for a mere $250 million you can just buy all of it at once. Now that you've dropped a quarter of a billion you'll need to protect it. So even more fortunately, AIG can cover that car collection and the house and all other stuff that comes with it. From Amelia Island to Pebble Beach, policyholders of AIG Private Client Group, a division of the member companies of American International Group, Inc. (AIG), are used to receiving best-in-show accolades for their collector vehicles. They also expect the best when it comes to insurance protection. AIG offers solutions that measure up to the best craftsmanship on wheels. Here are a few examples of the level of claim service AIG offers to high-net worth automobile owners.

Whether your clients are just beginning a dream collection or already own a stable of multi-million dollar beauties, they can benefit from AIG's superior coverage and services. Features of AIG's collector auto insurance include:
  • Market appreciation coverage, up to 150% of agreed value
  • Diminution in value for partial loss
  • True worldwide coverage, including transit
  • Newly acquired coverage
  • Unparalleled claims handling
  • Referral service for shipping, restoration and appraisals
  • Consultation for garage facility construction and security
  • Vulnerability assessments and loss prevention programs
Please note, the primary home is required in order for AIG to consider the automobile coverage. AIG's Private Client Program is available nationwide. Log into www.bigimarkets.com and click on "Affluent Program - New Business", or contact Nancy Doherty at nancy.doherty@iiaba.net or (800) 221-7917 ext. 5389 or Aysha Jordan at aysha.jordan@iiaba.net or (800) 221-7917 ext. 5382 to learn more.  
Big 'I' Personal Umbrella
Download our PUP Declination Form to Use with Each Personal Lines Client
Agents know that offering personal umbrella coverage to every client is essential. But did you know that the Big "I" has developed a customizable declination form that you can use to document that you've offered umbrella coverage in your client files? Visit www.iiaba.net/RLI to download the form from the right hand menu. Simply add your agency name to the bottom using the PDF form field.

For clients who choose to invest in umbrella coverage, here are some policy features from our standalone umbrella partner RLI:
  • Limits up to $5 million available ($1M in NM)
  • Excess UM/UIM available in all states.
  • The insured can keep their current homeowner/auto insurer
  • New drivers accepted - no age limit on drivers
  • Up to one DWI/DUI per household allowed
  • Auto limits as low as 100/300/50 in certain cases
  • Competitive, low premiums for increased limits of liability
  • Simple, self-underwriting application that lets you know immediately if the insured is accepted
  • E-signature and credit card payment options
  • Immediate coverage available in all 50 states plus D.C.
Learn more at www.iiaba.net/RLI.  

Keep Abreast of National Flood Insurance Program Changes

"The sea never changes and its works, for all the talk of men, are wrapped in mystery." - Joseph Conrad

While the sea may never change, flood insurance through the National Flood Insurance Program does. Some of the change is aimed at providing a better customer experience for policyholders while other changes continue the implementation of the Biggert-Waters Flood Insurance Reform Act and the Homeowner Flood Insurance Affordability Act. A new series of short videos explains the key elements of changes to the NFIP that are effective April 1, 2017.

This series is presented in three short video segments. Watch them all or just those you'd like to review. The series covers the following topics:

Segment One: Premiums and Surcharges
Segment Two: Newly Mapped Multiplier
Segment Three: Pre-FIRM Substantially Improved Buildings and Updates to the Community Rating System List

FEMA periodically issues WYO Program Bulletins related to legislative changes and clarifications to the NFIP Flood Insurance Manual. FEMA recently published Bulletin w-17010 - October 1, 2017 Program Changes.

The NFIP also offers free online courses covering basic and advanced flood insurance topics through the FEMA Emergency Management Institute's Independent Study Program. Visit the NFIP Training pages for agents or claims adjusters for course details, or view this list of NFIP courses offered through the Independent Study Program.

We can't talk about flood without mentioning the Big "I" Flood program! Big "I" Flood and Selective's relationship helps deliver members an unparalleled flood program. Together, we offer agents several layers of support to meet any and all flood insurance needs. Get to know the Big "I" and Selective staff and get your flood questions answered. With personalized support, competitive commissions, and an easy-to-use quoting platform, it is an easy decision to start writing your flood business through the Big "I" Flood-Selective partnership today. Learn more at www.iiaba.net/Flood.  


Remember that you can view the following webinars 24/7 by checking out the BIM Webinar Library. To do that log onto Big "I" Markets and click on "Publications".
  • AIG Private Client Group Homeowner - Collections CoverageNEW
  • Chubb Masterpiece Homeowner - Overview NEW
  • CBIC Architects & EngineersNEW
  • AIG Private Client Group Homeowner - Automobile NEW
  • AIG Private Client Group Homeowner - Overview NEW
  • TravPay
  • Commercial Lessor's Risk
  • Affluent Homeowners
  • Travel Insurance
  • Community Banks
  • Affluent Homeowner
  • Real Estate E&O
  • RLI Personal Umbrella
  • "Oh, by the way...Flood Sale"
  • Habitational
  • Student Housing

For all you folks who recently registered for Big "I" Markets, remember you can participate in a webinar from the comfort of your office to help you learn how to navigate around the system. Every Thursday at 2:00 p.m. EDT we'll show you how to navigate the Big "I" Markets platform, including how to submit a quote! A recording of this webinar can be found under "Publications" after logging into Big "I" Markets.

Big "I" Product Webinars

  • NEW - Thursday, April 27 - 1:00 - 2:00pm EDT. "Learn About New DocuSign Payments Feature Webinar". Thursday, April 27 at 1 p.m. ET to learn about DocuSign Payments, a new feature that enables digital payment with an e-signature.

    The webinar will also feature a product demonstration on how the Big "I" is using DocuSign Payments for its new cyber liability program enrollment process.

    With DocuSign Payments, users get paid instantly, enabling them to spend more time growing their business and less time following up on time-consuming payment processing. Because the process is simultaneous, secure and paperless, you will now be able to provide an easy, efficient process for your customers.

    Contact Brett Sutch with any questions regarding the webinar or the Big "I" member-exclusive discount on DocuSign products.

    Register here Cost: Free.
  • NEW - Thursday, May 18 - 2:00 - 3:00pm EDT. "AIG Affluent Coverages - Comprehensive Webinar". Please join us and Lisa Gelles of AIG Private Client Group for a comprehensive webinar on Thursday, May 18. During the presentation, we will cover each of the four core lines of business - homeowner's; auto; umbrella and valuable items. We will review coverage features and benefits, as well as suggestions for marketing high-net-worth coverage to your clients.

    Register here Cost: Free.  

Big "I" Virtual University Webinars

Don't miss the following education opportunities provided from the Big "I" Virtual University experts that focus on topics agents need to know to make a smart start in 2016. For more information, contact national staff.

  • NEW - May 10 - 2:30 - 3:30pm EDT. "Are You Insuring ALL the Right People". Who qualifies as an insured in the commercial general liability (CGL) policy and the business auto policy (BAP)? More importantly, how should the insured be listed on the policy? You must be careful who you list as and how you list an insured. Get this wrong and there may be NO coverage (an E&O nightmare). Only attend this session if you are interested in learning: who is granted insured status in the CGL and BAP; who you can and should extend coverage to in these forms; who is not and should not be included; and the weird requests additional insureds often make.

    Click here to register. Cost: $69


Lemonade: "Brokers and Bureaucracy" vs. "Bots and Machine Learning"

By Paul Buse, President of Big I Advantage®

However annoying you might find the characterization of our great industry as the banal "Brokers and Bureaucracy" followed by equally clichéd "Bots and Machine Learning" you have to give Lemonade its due when one of the world's largest financial services and insurance company joins them as an investor.

Last year after its September fanfare and launch, we wrote here on Lemonade's heavy reliance on credit scores and how that might not seem--let's say--all that altruistic. Their use of significant premium penalties for having a claim seemed to add to that. With that knowledge tucked away, what do the facts say about how this upstart is doing now that they are neighbors in our insurance bureaucracy?

Enter the insurance regulatory system where all insurers licensed in any state are required to report details on their operations. These filings are publicly available. Scanning an insurer's "Yellow Book" can tell you a lot and, as students, you should know that you can obtain what is probably fairly described as "extreme detail" on any insurer. The National Association of Insurance Commissions' online store "InsData" makes available nearly every insurer's annual and quarterly reports. I paid my $25 and below are some points that might interest you.
  • Direct Written Premiums: For all the fanfare, a relatively unimpressive premium total so far. Written premiums for 2016 were $179,715 after the much ballyhooed start-up on 9/15/2016. At $500 a policy (a guess), that's about 350 insureds.
  • Capital Burn Rate: It's unfair to assess profitability of anyone so early in start-up mode, but the burn rate of capital would get my attention if I invested with premiums coming in the door at only $1,600 per day. The burn-rate for 2016 equates to a negative Net Income of $1,884,719. With stated capital in the "Management Discussion" of $10,700,000 in holding company parent, Lemonade, Inc. as of 1/31/2017, they would appear to have some time to get thing started but they will have to make progress or move some more cash to the actual licensed insurer, Lemonade Insurance Company, as they show $5,665,766 as "Surplus as Regards Policyholders."
  • Licenses: They are now licensed in NY, IL, NC, RI and TX but have given up trying in AK, IN, KS, KY, SC, SD, UT, VT and WV. They never attempted to get licenses in DC, MS, WA and WY. Presumably they continue to pursue authorization to conduct business in the other 38 states.
  • Claims: They have claims paid out of $3,941 and total incurred losses, including all reserves for unknown claims and development of $11,028. With premiums coming in at the end of the year, the earned premium is only $24,502. That would then be a pure loss ratio of about 45%.
  • CEO/President: The CEO and CFO of Lemonade Insurance Company are different than the public face of Lemonade and the three guys in T-shirts in the launch videos talking about their definition of peer-to-peer, flat fees, and how insurance as we know it is evil.
  • Foreign Ownership: Ownership of this evil-avoiding insurer on our U.S. shores is actually very foreign. There is listed ownership of the parent corporation by 71.2% by individuals and limited partnerships from Cayman Islands, Israel and Great Britain. The organizational chart leaves unanswered who/what owns the remaining 28.8% of the ultimate parent. There is also an Israeli technology company (Lemonade, Ltd.) and a NY licensed insurance agency (Lemonade Insurance Agency, LLC)
Have a question or view? Feel free to share it with me at paul.buse@iiaba.net. It's hard to predict how Lemonade will do and so-called "disrupters" are seemingly everywhere. Next week, I'll share some information on an investigation we are engaged with to create the ultimate Millennial insurance product to offered exclusively to you on Big "I" Markets. Watch for that as we'll want your input.

Here are the top three items that got BIM agents clicking from our last edition... see what you missed!
  1. Event Liability
  2. Chubb Recreational Marine - Coming Out of Lay-up Tip Sheet
  3. Chubb Recreational Marine - Coming Out of Lay-up Brochure

Congratulations to our agent in District of Columbia on a Vacant Dwelling - Non-standard sale of $9,454 in premium!  

TFT Archives    |    Big "I" Markets Help Desk    |    Email Us    |    703-647-7800  (9am-5pm ET)    |    BACK TO TOP

You have received Two for Tuesday because you are a registered member of Big "I" Markets. Two for Tuesday is a weekly newsletter designed to provide you with information concerning commercial products and services available to you through Big "I" Markets. (Product availability varies by state.) IIABA, your professional association, along with its subsidiaries, including Big "I" Advantage, Inc., works hard to bring information to you about valuable products and services that could enhance your ability to succeed in the industry's competitive environment. If you do not wish to receive Two for Tuesday click the link below.
Click here to unsubscribe.
IIABA Social Channels
Share on Facebook Share on Twitter Share on LinkedIn Share Share