June 2020 Edition
As the economy slowly reopens, we are keeping a watchful eye on the skyrocketing commercial insurance prices. Globally, they have risen the most in the UK and the Pacific Regions, but here in the US, we are still in double digits.

Both articles I have included this month are must-reads and have some great information on what got us here and what to expect in the second half of 2020.

You will also notice a couple of new items in this issue. Information on a great new product, Specialty Cell Captive and a new partner, InsuranceExpert.com.

If you have any questions about the information in these articles, call me directly. If you have questions about implementing a Captive, also, call me or visit our  Captive 101 section  on our website.

We appreciate your business!
Larry Papola
Lawrence J. Papola, Jr.
Captives: A Broker's Friend, Not Foe
It’s easy to see how the coronavirus crisis has dealt a massive blow to the global economy, with the aviation and hospitality sectors among the hardest hit during the pandemic-induced lockdowns.
For the insurance industry, though, the repercussions have been far more complicated – 
Get Your Insurance Quotes From The:
Insurance Experts provides expert knowledge and assistance to individuals, families, and business owners who are making decisions about the proper insurance coverage for their needs. We’re here to help you cover losses you shouldn’t have to on your own.

Let our team of experts guide you through the daunting task of selecting the right insurance coverage for you or your business:
  • Life
  • Disability
  • Long-Term Care
  • Business
  • Personal
  • Captive
  • ...More
Captive Claim Highlight
Client Profile
Industry:   Banking
Specialty:   Investment Management Firm
Location :   Connecticut
Claim Information
Description: One of our Insureds was issued an Information Document Request (IDR) from the Internal Revenue Service (IRS) for one of their benefit practices. Through their Captive Actual Net Loss Insurance Policy "Administrative Actions" coverage, the Insured was able to recoup “extra expenses” associated with this document request.
Line of Coverage:   Administrative Actions
This exposure was elected for coverage by the client under their captive policy. This resulted in a claim payment amount of approximately $5,000.
*Please note that each claim will undergo an independent investigation and thorough review process. Various components specific to the claim at hand will be assessed thoroughly to determine if the loss is covered by the policy.
Our Specialty Cell solution may be your answer!

What is a Specialty Cell Captive?
A private insurance solution designed to provide customizable coverage options for unique or difficult exposures business owners face. This type of captive can provide competitive and affordable alternatives to the commercial insurance market for P&C producers and their clients.

Designed to Address Difficult Insurance Challenges
We have developed game changing risk management programs which can be tailored to meet your client’s specific program needs. Our low frequency-high severity policy form provides considerable design flexibility, offering potential solutions for a wide variety of hard market challenges, including the following:
  • An increase in commercial premiums – where renewal prices may be significantly greater than prior years.
  • Your client’s loss history warrants more favorable renewal pricing.
  • An Increase in deductible limits. For instance, is the existing commercial carrier requiring your client to significantly increase the deductible on their policies? Are self-insured retention layers increasing to unreasonable levels?
  • Introduction of new policy exclusions – is a renewal coverage contingent upon acceptance of a coverage exclusion for exposures previously covered?
  • Imposition of sub-limit caps – renewal policies may present coverage limitations which are more stringent than prior coverage.
  • Carrier non-renewal – if your client is facing a non-renewal of coverage or excess layers; coverage may be unavailable or subject to significant premium increases.
  • Clients that need customizable coverages – loss of key customer, loss of key supplier, legislative/regulatory changes and business interruption, to name a few.
  • The inability to obtain specialized types of coverage from commercial third-party insurers.
This program can provide protection against risks which prove to be too costly in commercial markets or may be generally unavailable. 

Have an opportunity you wish to discuss? Please contact me today:
June 2020 Calendar
JUN 3 : World Bicycle Day
JUN 5 : World Environment Day
JUN 8 : World Oceans Day
JUN 14 : Flag Day
JUN 21 : Father’s Day
JUN 20 : Summer Solstice
June is Observed as:
National Safety Month
Men’s Health Month
Commercial Insurance Prices Skyrocket Globally – Marsh

Global average commercial insurance prices spiked 14% in the first quarter, according to a new report by  Marsh. The increase – the largest since Marsh’s Global Insurance Market Index was launched in 2012 - comes despite the minimal impact of the COVID-19 pandemic on pricing in the quarter.

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Suite 101
Syosset, NY 11791

Office: 1-833-US-CAPTIVE
Fax: 888-929-6565