James O'Connor

The collapse of Baltimore's Francis Scott Key Bridge has significant implications for the food trade industry. Our latest blog explores the disruption in logistics, potential economic impacts, and the crucial role of insurance in risk management. Read the full analysis here: https://bit.ly/3JpJKo0 #BaltimoreBridgeCollapse #FoodTradeDisruption #LogisticsChallenges #EconomicImpacts #InsuranceRiskManagement #SupplyChainDisruption #FoodIndustryAnalysis #RiskMitigation #InfrastructureFailure #BusinessContinuity

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FLORIDA INSURANCE MARKET SEES FIRST REINSURANCE PRICE DECREASE IN YEARS! According to the Florida Office of Insurance Regulation (OIR), for the first time in years, its Annual Reinsurance Data Call has found that, on average, insurance carriers operating in the state have seen a decrease in the price of their reinsurance. This comes at a time when the regulator is keen to highlight the successes achieved with legislative changes focused on property insurance, which continue to have a positive effect. Florida’s Insurance Commissioner Michael Yaworsky highlighted the increasing interest in writing business in Florida. Among the notable news in recent weeks, State Farm said it sees increasing opportunities to underwrite property business in Florida, while a ninth new insurer, Trident Reciprocal Exchange, has been recently approved. Also of note, Progressive Insurance executives met with the Insurance Commissioner and have committed to continuing to invest in their businesses underwriting in Florida. “Today’s announcements are a further indication of the continued strengthening of Florida’s property insurance market,” said Yaworsky. “OIR will continue to work with Florida-based and national carriers, like Progressive, to recruit and retain business so that all Floridians may benefit from a strong market.” The FLOIR points to increased participation in depopulation of Florida’s Citizens Property Insurance Corporation as well, with insurers approved to assume 768,692 policies from Citizens in 2024, an 858% increase since 2022. So far, that has resulted in 132,445 policies being removed from Florida Citizens, while Citizens’ exposure has reduced $64,852,563,061 this year thanks to these depopulation efforts. Indicative of the improving Florida property insurance market, the 180-day average request for homeowners’ rates as of August 1st 2024 is just 1.2%, FLOIR said. In fact, twelve insurers have filed for a rate decrease to take effect in 2024 and 24 companies have filed a zero percent increase, which FLOIR said covers 1.8 million policies in Florida. But, perhaps most importantly for the health of Florida’s insurance market, is the appetite of the reinsurance market to support its carriers. Preliminary results from the latest Annual Reinsurance Data Call indicate that the risk-adjusted change in reinsurance cost decreased on average -1.7% from 2023, which is the first decrease in years, FLOIR explained. A vote of confidence from the reinsurance community can very much help Florida’s primary insurance market back to health. But, sufficient stability in reinsurance combined with renewed confidence in Florida’s property insurance market legislation, is certainly helping and depending on how the state fares through the rest of the hurricane season, the state could find conditions for its insurers even better next year. https://lnkd.in/eEn6E6VT

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BMS Group Tropical Update 10/10/2024  Hurricane Milton’s landfall near Siesta Key, Sarasota, represents a significant event in Florida’s history with major storms. As the 44th major hurricane to strike the state since 1851, #Milton demystified the local belief that Sarasota is protected by Native American burial grounds. Notably, this is the first direct hurricane impact on Sarasota since record-keeping began. With winds reaching 120 mph and a pressure of 954 mb, Milton became the fifth Gulf Coast hurricane to make landfall this year, three of which struck Florida. This year’s heightened hurricane activity continues to contrast sharply with the period from 2006 to 2017 when no major storms made landfall in the Gulf. The rapid succession of two major hurricanes in Florida, the shortest gap since 1950, highlights the growing risks the region faces. While Tampa narrowly escaped the worst of Milton's wrath, Sarasota and surrounding areas faced significant impacts. Preliminary assessments suggest that Milton could be the most severe hurricane to hit the Tampa Bay area in decades, possibly prompting the insurance industry to reevaluate its strategies for addressing such “Gray Swan” events. Despite many buildings adhering to Florida's stringent wind design codes, older structures remain vulnerable, and power outages across the region have raised concerns about the extent of storm-related damage. In addition to the hurricane's direct effects, Milton spawned over 45 preliminary tornadoes, making it one of the most prolific tornado-producing storms in the state's history. The insurance industry will closely monitor the situation as damage reports unfold, especially with the threat of additional tropical activity as the hurricane season progresses, which we will look at with this BMS Tropical Update. #TropicalUpdate #HurricaneSeason #Insurance #Reinsurance If you want more details on the specific impacts on the insurance industry, please click the link below. https://lnkd.in/g7fn-Ywa Below is the latest BMS iVision Verisk Respond 3-second wind gust product. This product helps clients better understand aspects of damage, such as areas with the highest wind gusts. However, there is much more. Other wind products, like the duration of winds and severe weather elements like extreme rainfall and tornado swaths from Canopy Weather, are also provided and shown. 

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Loss Control & Risk Management Services...and do not forget about claims Advocacy! With the pending hurricane descending upon parts of Florida tomorrow, (please take this one seriously - there will be serious levels of storm surge in parts of the coastal area), I am reminded of the importance of preparing for a loss BEFORE it happens. Whether you live in a high brush-fire area in states like CA, WY, MT and CO, coastal Florida, Texas or Louisiana (and other high CAT coastal areas), engage with your broker to help ensure you have taken the necessary steps to protect your property. I think this should be an annual discussion especially if you added real estate to your overall portfolio.

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BMS Tropical Update 09/27/2024 The "No Surprises" initiative aims to provide the insurance industry with insightful updates on tropical events like Hurricane Helene, highlighting the event's unique impacts on insurance-related concerns. While agencies like the National Hurricane Center provide vital forecasts, these BMS Tropical Updates focus on key nuances relevant to insurers, such as tree fall, storm surge, building density, and how catastrophe risk models might respond. Hurricane Helene made landfall in Florida’s Big Bend as a Category 4 storm, marking a record eight Category 4 or 5 U.S. Atlantic hurricane landfalls since 2017. Despite clear warnings, the event underscores the ongoing production gap in flood insurance, with many affected areas having minimal coverage, leading to significant uninsured losses. We need to remember the catastrophic models likely do not have events that match Helene forward speed, size, and intensity, and it will be a few days until they can provide realistic events for loss estimate. As Helene continues to affect inland areas, particularly the Appalachian region with record rainfall, flooding and potential landslides, the insurance industry is gleaning new insights for future preparedness. While additional work on intensity forecasting is needed, improved forecast models did accurately predict Helene’s severity. In response to these challenges, research teams and technology, such as drones and Doppler radar, captured valuable data during Helene, offering critical information for future loss analysis. Additionally, advanced storm mitigation measures, like Tampa General Hospital's AquaFense, showcased effective ways to limit damage. Despite Helene’s destruction, the insurance industry’s ability to adapt and build resilience continues to evolve. For more detail above below, take a few minutes to read and get educated on a unique aspects of #Helene that you likely won't read any other place. ⬇ https://lnkd.in/g_4PA7TJ Below is the BMS iVision 3 second wind gust swath, which is a geospatial data layer BMS clients can use to understand wind impact to specific risk better and apply damage ratio to get an idea of loss. This data layer from Verisk Respond gets updated four times a day and depicts at a high resolution what types of wind gusts could be experienced over the entire life of the storm. Other data layers include 1 wind speed, wind duration, and accumulated rainfall. #HurricaneHelene #TropicalUpdate #HurricaneSeason #Insurance #Reinsurance

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Hey, everyone....cyber is NOT something to be taken lightly (see forwarded post from Kurtis Suhs). Most policies are written to exclude bad foreign agents, who are the vast majority of violators. Your Captive Insurance Company can write policies to cover these holes in coverages and EXPAND the breadth and width of them, AND, if you have reasonable claims, YOU can reap the rewards of your good claims history by keeping your premiums....not the insurance companies. If you want to know more about how Captives can work for you and your business, happy to have a conversation. Stay safe out there! #CPA #CFO #riskmanagement #insurance #business #finance #financialmanagement #advisor #financialadvisor #interimCFO #insuranceagent #broker

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Record-warm Atlantic Ocean temperatures and a shift to La Niña conditions have led forecasters to predict an extremely active Atlantic hurricane season in 2024. Learn how to build business resilience to mitigate risk for hurricane-prone properties. https://aon.io/3WYt2nX #AtlanticHurricane #Resilience #Risk #Property

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Hurricane Helene made landfall this week as a Category 4 hurricane, causing widespread damage, devastating flooding, and leaving millions without power. So many resources and tools to help from our talented teams. Stay safe and access direct claims information immediately.   Gallagher is ready to help ➡ https://lnkd.in/gnu5KC92   #insurance #riskmanagement #claims #safetyfirst

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BMS Tropical Update 8/17/2024 Ernesto made landfall at 5 am AST as an 85 mph category 1 hurricane with a pressure of 972 mb. As mentioned in the BMS Group Tropical Update (linked below) earlier this week, what is impressive is how the insurance hub of Bermuda can be in the crosshair of so many named storms, given its overall size (21 sq miles) in the large North Atlantic Ocean (16M sq miles). Bermuda is no stranger to storms, with nine storms near the island since 2020. Remember, just in 2020, Hurricane Paulette hit with 90 mph winds, and the eye passed directly over while turning N.E. Last hurricane season, Lee tracked just to the island's west as a large hurricane. In its long history, Bermuda gets brushed by a named storm every 1.69 years and hit by a hurricane about every four years. Thus far, the impacts will be minimal. As of this morning, BELCO (Bermuda Electric Light Company Limited) is reporting about 26,445 customers without power. They serve about 36,000, so a good percentage of the island is without power.  https://lnkd.in/gYMNQy7K However, the other important thing to remember regarding building damage is that Bermuda has very strict building codes. It's the world's insurance hub, and its residents know the risk and how to mitigate it. Now, this season has had 5 named storms. This does not seem like much, and it isn’t just about climatology for the date, but three of the 5 have been hurricanes. All three have made landfall, so from a landfall perspective, 2024 has provided more meaningful days of landfall compared to other busy seasons like 2022 and 2023 since (Texas Beryl 80 mph 979 mb, Florida Debby 80 mph, 979 mb, Bermuda Ernesto 85 mph 972mb) have been hurricanes impacting land and spread out over a couple of months now. It may not be as interesting as 2017 or 2005, but it could be by the end of the season, which leads to the question of what is next. As talked about in the last BMS tropical update posted here ⬇ https://lnkd.in/gq6PRqE6 The most active part of the Atlantic hurricane season is between August 20th through October 10th. The next named storm likely won’t come until at least August 28th, and even the global models don’t have much activity until U.S. Labor Day (Sept 2nd). This will flatline ACE to bring it to the 1991-2020 average. (Shown Below) However, with a peak season, the hurricane switch could be flipped at the start of September. Patterns of enhanced convection over Africa will fuel some impressive tropical waves in the weeks ahead. This represents favorable intraseasonal forcing as we head toward the peak of hurricane season 2024. Still, overall, the chances now of reaching 23 named storms for the season are looking like a bust unless there is hyperactivity well into the tail part of the hurricane season.  #Bermuda #Ernesto #TropicalUpdate #HurricaneSeason #Insurance #Reinsurance

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Hurricane Beryl continues to break various weather records, which this BMS Group Insight will highlight. We will also provide an initial look at the impacts it has had in Grenada, St. Vincent, and the small islands in between, including Carriacou. This update also explores the potential impacts of Beryl on Jamaica and the U.S. The long-range forecast indicates an increased likelihood of potential impacts that could pull Beryl north closer to the U.S. coastline early next week. This is in part due to the evaluation of the weakening upper-level ridge of high pressure of the Southeast and a short wave trough of low pressure. For more details on Beryl, click the link below. Below BMS iVision and the Verisk Respond 5-day forecast 3-secong wind gust forecast for Beryl shows it will rapidly weaken later today once it starts to hit an area of 40 kts of wind shear and continue to weaken as it nears the Yucatan coastline on Friday. Beyond day 5, the insurance industry should focus on the ensemble mean shown in the blog post. #Beryl #TropicalUpdate #Insurance #Reinsurance #RiskManagment #CatModeling Link To More Great Content ⬇ https://lnkd.in/gXNp72Ur

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Risk-A-Thon Chicago is in the books! What an incredible day spent learning and growing with the most amazing people. If you haven’t made it to one of these events yet, YOU need to go. #insurance #risk #cpcu #cpcurocks

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Welcome to the another day of Alphabetical April with your host Mickey Siegel! Today’s letter is “T” as in #TimeElement. Over the last few decades, the risks and requirements for more environmental liability coverage has led to a sharp rise in many #GeneralLiability policies including limited pollution coverage extensions or sudden and accidental coverage for pollution exposures. While this is a great way for additional coverage to be provided to clients, be warned, it is NOT a replacement for a true Environmental Policy with a separate insuring agreement. One of the most common exceptions seen in these coverages is a Time-Element-Based exception, which, as the name suggests, will not exclude coverage if a pollutant event occurs within a set number of hours and subsequently reported in a set number of days. There is always a duty to report damage as quickly and thoroughly as possible, but the Time-Element-Based exception can also lead to a major E&O headache if this was not adequately described to the insured prior to binding. As always, be aware of the coverages, exceptions and exclusions in the policies you purchase and issue. If you are not sure, just reach out to those amazing Underwriters at companies like J.M. Wilson For more information on this and other E&O mistakes that can be made, I encourage everyone to read this IRMI article for some more details. #ExcessAndSurplus #EnvironmentalInsurance #Errorsandomissions #TimeIsJustASocialConstruct

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As organizations prepare for the 2024 Atlantic Hurricane and U.S. Wildfire seasons, we encourage you to review your current property policy to ensure that your locations, coverage, limits and deductibles afforded therein are aligned and optimized to your risk management needs, particularly with respect to catastrophic coverage where aggregate limits may apply. Throughout the year, locations may be added and removed from the schedule of values, therefore as you review your policy, look for noted changes, particularly if you have added any new locations or facilities. If you feel your current agent or broker may not be accurate with your current exposures and risk, I am happy to review this information with you to address any questions or concerns you may have. Aon, as the leader in the industry, has the ability to approach the market should you wish to change that relationship, alter your current coverage, limits, or deductibles in any respect. Should your organization sustain a loss Aon’s Claims Preparation team can immediately assist. Aon's Claims Preparation, Advocacy and Valuation team can be a key partner for disaster-impacted organizations by offering a full range of loss recovery solutions, including claims advocacy. Our risk consultants bring unparalleled industry experience in claim handling, advocating on behalf of our clients and helping them prepare and present ever challenging claims toward a goal of a fast and favorable recovery. To stay up-to-date on the latest storms and catastrophic events, and to subscribe to our Cat Alerts, visit Aon’s Impact Forecasting Site. https://lnkd.in/ejN8QjtW #Property, #Claims, #Hurricanes, #Advocacy, #LossManagement, #BusinessInterruption, RIMS (Risk and Insurance Management Society, Inc.), Florida RIMS Educational Conference, RIMS Tampa Bay Chapter, FEI | Financial Executives International, FEI Tampa Bay, FL Institute of CFOs (fiCFO)

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If you had a busy weekend, you might have missed the tropical activity occurring in the Atlantic Basin. The goal of this BMS Insight is to update the insurance industry and, more importantly, to discuss the impacts of Major Hurricane Beryl and what the future might hold for the U.S. insurance industry. In the short term, the situation is not ideal for the Windward Caribbean Islands. In fact, our BMS iVision Verisk wind swath product is off the charts in terms of intensity to be expected over the small island of Carriacou north of Grenada. Beyond the Caribbean impacts, there is still considerable uncertainty in the long-range forecast. As of right now, there is about a 10% chance of insurance impacts to Texas, and the probability will increase or decrease later in the week as there is more clarity with how the upper air pattern over North America will evolve. But if you are a model watcher, there is valuable insight into what to look for as we start a week of model watching as Major Hurricane Beryl crosses the Caribbean Sea. Below is our BMS Group iVision's last forecast on Hurricane Beryl and its expected wind swath across the Caribbean Sea. The forecast ends as Beryl enters the Bay of Campeche, so stay tuned for what the future might hold for U.S. impacts. To get even more great detail click the link below. ⬇ https://lnkd.in/gqA_n9HH #Insurance #Reinsurance #TropicalSeason #Beryl #RiskManagment

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A new report from Aon revealed global insured losses due to national disasters hit $102 Billion at the end of September and are on track to pass last year’s total of $125 Billion. Category 3 Hurricane Milton hit Florida in early October, so its losses were not included in the $102 Billion. Hurricane Helene was the costliest insured loss event during the first nine months of this year. Full article linked in the comments below.    #insurance #weather #loss  

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In 2023, Florida saw a significant surge in both the admitted and surplus lines' commercial insurance markets, with premiums jumping over 42%. This growth highlights the market's resilience amidst rising litigation costs, which hit a record $3.5 billion. Notably, high-value commercial policies saw a 72% increase in demand. The surge in litigation was influenced by a rush of lawsuits before recent tort reforms. Despite these challenges, the market continues to adapt and expand. #Florida #InsuranceNews https://lnkd.in/gwMhGhJi

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BMS Tropical Update 10/06/2024  Tropical Storm Milton is presenting a rare and concerning weather event for the insurance and reinsurance industry. Forming in the Bay of Campeche, Milton is taking an unusual eastward path towards Florida, a track only two storms have taken since 1850. With the storm projected to pass near the highly populated Tampa Bay area, the situation is reminiscent of the worst-case "Gray Swan" events that the insurance industry has long feared. The storm's potential intensity is uncertain, with forecasts ranging from a Category 1 to Category 5 hurricane, highlighting the need for vigilance. The combination of warm Gulf waters and favorable upper-level conditions could allow Milton to intensify rapidly, increasing the risk of severe storm surges and wind damage, particularly for a region that has not experienced a storm like this in decades. The Tampa Bay area, with its extensive waterfront property and a population that has ballooned from 450,000 in 1946 to 4.1 million today, faces significant risks from Milton’s approach. A major hurricane could lead to catastrophic flooding, especially if the storm's track funnels water into the bay. This scenario would submerge key areas like Tampa Airport and Downtown Tampa. The storm could also bring strong winds across central Florida, impacting cities along the I-4 corridor. With Milton poised to be the fifth landfalling hurricane of the 2024 season, this could further strain the insurance industry, which is already dealing with damages from previous storms this season. Now is the time for the industry and residents to prepare for potentially devastating impacts. This BMS Tropical Update provided more detail on the insights above, but specific of impacts cannot be discussed yet due to the intensity uncertainty. Click Link Here: ⬇️ https://lnkd.in/gQZdQf_b Below is a look at the BMS iVision Verisk Respond 3-second wind swath, which shows just one of the forecast scenarios for Milton. In this case, there is some weakening before landfall. However, an expanding wind field could complicate the storm surge situation along the west coast of Florida. Please note this is just one forecast solution. The Tropical Update shows all options.

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2024 is off to an active start for severe convective storms (SCS) in the United States. SCS is an umbrella term for a range of hazards that stem from severe thunderstorms, including tornadic and straight-line winds, as well as large hailstones. I think the weekend outbreak in the middle of the country will almost certainly rank as the third (maybe the fourth or fifth) SCS event to cause over $1-Billion in total economic loss as ranked by NOAA's Billion Dollar Disasters. Severe Storms from March 13 - 15 of this year caused over $ 4b in losses due to severe storms that impacted many Central and Southern states. Kansas, Oklahoma and Missouri were affected by up to baseball-sized hail damaging homes, vehicles, businesses. Illinois, Indiana, and Ohio were impacted by hail, high wind and dozens of tornadoes including a deadly EF-3 striking northwest Ohio. Storms in the first few days of 2024 caused nearly $2b in losses due to a southern tornado outbreak and East Coast storm that impacted more than a dozen states. At least 39 preliminary tornadoes were clustered around the Florida Panhandle through the Carolinas, while hundreds of high wind reports were scattered up the East Coast. The strongest tornado was an EF-3 that caused significant damage around Panama City Beach, Florida after an intense waterspout moved onshore. Adam Smith Our team here at Demex focuses on building financial resilience to SCS for insurers who back these losses. We are proud partners with Gallagher Re who estimate that the costliest peril for insurers in the first quarter of 2024 was SCS and early global estimates exceed $11b of insurance losses. Gallagher Re said this marked the second-most expensive first quarter for SCS claims after last year’s record-setting SCS losses of $15b in Q1. Steve Bowen Insurance is a critical mechanism in global economic resilience in the face of a changing climate and an economy of growing value in assets that lie in harm's way. There are times when insurance claims drive the economy by expediting financial recovery. Insurance payments benefit not only those directly affected by loss, but others as well. For example, claims payments end up at auto repair shops and home improvement retailers to fix cars, and rebuild homes. By supporting these businesses, economic growth is further stimulated. AMS Committee on Financial Weather/Climate Risk Management Payments to policyholders in 2023 alone and isolated to only the impact from SCS amounted to $ 70 billion in this country (according to our friends and partners at Aon). Daniel Hartung Insurance companies don't have to manage this risk alone. Our team here at Demex has already built nearly $65m in new financial coverage for insurers to become more resilient to SCS losses. This protection can prevent such losses should from driving credit downgrades, insolvencies, and market withdrawal. The Demex Group

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