Vincent J. Gaffigan

It was a challenging renewal (health insurance) season here in the U.S. - but even more challenging Globally. (7% vs 11.68%, respectfully) Most important - are the medical conditions driving the costs. Building a wholistic strategy that supports these conditions not only is the best way to mitigate the cost trends, but also the best way to create a program that best serves it’s workforce. The graph below outlines what conditions are driving costs globally. (Source: Lockton 2025 Global Medical Trend Report)

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A #nuclearverdict is a jury award of at least $10M versus an organization. These awards have a large impact on rising rates for #commercialinsurance and are part of the reason for insurance premiums increasing - even if your organization has not had any claims. Product liability, auto accident, and medical liability cases account for two-thirds of all reported nuclear verdicts. #insurancerates #insuranceindustry

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What share of #opioids prescribed in #workerscomp is prescribed to #injured workers FIVE years or more after their injury? Revealed opioid #utilization and prescribing trends identify another feature of state #medicalpixels. Join me next Thursday, September 19 at 2:00 pm Eastern to find out more. #workerscompensation #NCCI

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With recent events like Hurricanes Helene and Milton devastating the Southeast U.S., it's clear that operational efficiency in P&C Insurance is no longer just a goal—it's a necessity. While the prospect of short-term disruption and spending may seem daunting, embracing AI and automation can empower insurers to streamline processes and redeploy resources effectively, ultimately strengthening the industry for the long haul. My colleague, Nathan Golia, Senior Analyst on Celent's P&C Insurance team, explores essential digital transformation strategies that insurers should implement to revolutionize their operations: https://lnkd.in/ew72x-Yd #OperationalEfficiency #AI #insurance

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With liability claims on the rise do you carry enough liability insurance? An excess or umbrella liability insurance is one of the most economical ways to protect your assets from a lawsuit. Call our office to discuss option that best suits your needs.

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Pollution is one significant risk that manufacturers face. Pollution incidents can lead to operational disruptions, regulatory fines, costly cleanup, and legal liabilities. Help safeguard your manufacturing clients with Chubb’s Pollution Liability Insurance. Learn more: https://lnkd.in/e5CFYQUY

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How we transformed an Insurance Co.'s most critical exposure Many think their most critical risk... ...is directors and officers liability. We won't argue it. Personal asset protection for them, their C-suite executives, and their board of directors. Always top of mind. But, for most of our insurance company clients... Historic loss data + Our loss modeling shows that "bad faith" is your biggest exposure. Your highest probable risk. Higher than D&O. Also your worst possible exposure. What's second? Cyber. Where does D&O rank? A distant third. The transformation started for this insurance company when we aligned on this, first. How'd we do it? We looked at losses in our bad faith data set. Our data comprises bad faith litigation over the past twenty years. Highly credible. (LexisNexis & public record) An industry gold standard for publicly available litigation data on bad faith lawsuits. Don’t just take our word for it. Recently, insurance underwriters told us our data set “might be the best they've seen.​​​​​​​​​​​​​​​​“ Better than their own loss data! If you're interested in a similar discussion, DM me or book a 1:1 call w/ us. P.S. Why should you listen to me? - I've traded in the global insurance markets over 85,000 hours. - Nearly three decades. - Since '05 I've specialized in financial institution clients. - Over the past decade we've served over 100 insurance companies, placing $150MM in premiums into the commercial market, and helped resolve $250MM+ in claims recoveries.

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BMS Group Tropical Update 10/09/2024  Hurricane Milton, though downgraded from Category 5 to Category 4, is still approaching landfall with significant uncertainty regarding its exact path, which will greatly influence potential insurance industry losses. The storm's eye has become offset, and unfavorable conditions are weakening its structure. While landfall is expected around Longboat Key, Florida, late tonight as a Category 3, even minor wobbles in its track could influence whether it makes landfall closer to Tampa or further south near Venice, FL. This significant uncertainty will impact which areas experience the strongest winds and storm surge. The National Hurricane Center’s forecast has shown a southern bias, and the greatest wind threats appear concentrated around Sarasota, with the Tampa Bay area expected to see reduced impacts. Milton’s tightly compact core remains intact, and the key question is how much it will weaken before landfall, which will, in turn, determine the extent of damage, particularly in areas with older housing stock and less stringent building codes. The storm surge threat has decreased for Tampa Bay, but communities to the south, like Punta Gorda and Port Charlotte, are expected to face record-breaking surges. Rainfall will be heavy, especially in central and northern Florida, with up to 18 inches in some areas contributing to river flooding. Saturated soil conditions will exacerbate tree fall and power outages. While Milton's landfall may not match the catastrophic losses feared yesterday, it is still expected to have a significant impact on the insurance industry, which has already incurred $16B in losses this season. The ultimate cost from Milton will depend on its final strength and path, but total event losses could still reach up to $15B. However, yesterday's much higher loss scenarios are likely off the table. For more details on the specific impacts on the insurance industry, click the link! https://lnkd.in/d8fhTZTP #TropicalUpdate #HurrianeSeason #Milton #Insurance #Reinsurance Below is the latest BMS iVision Verisk Respond 3-second wind gust product. These forecasts of the Milton path are updated four times daily and provide insurance carriers with a view of the areas that could see the highest wind gusts. 

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This is a great piece explaining why workers' compensation is performing so well compared to other casualty lines. A couple key takeaways: Higher payrolls are generating more premium which offsets higher claim severity, the opposite of what we are seeing on the liability lines. Workers' compensation remains competitive for buyers. Stable conditions and longer payment tail has carriers competing for business. Are you leveraging your workers' compensation line to support your other casualty lines? You should be. #StormReport #Workerscompensation https://lnkd.in/ejg5pgbw

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For all RMI Majors starting their #FallSemester, here are the great Dr. MaryAnn Boose’ Fundamental Questions for picking a specific Risk Management & #InsuranceCareer. [Dr. Boose was my Academic Advisor at Indiana State University]: 1. What interests you most? A. Personal Lines (Helping Individuals) vs. Commercial Lines (Helping Entities) B. Property & Casualty Insurance (#RiskManagement) vs. Life & Health (Employee Benefits) C. Being a Subject Matter Expert (Industry &/or Product) OR a Generalist 2. Based on the previous answers, which areas of the Industry interest you? A. Advising Individuals on their Personal Insurance & Risk Mgmt. Needs B. Working at a Non-Insurance Company as a Risk Manager &/or #EmployeeBenefits Manager C. Working at an Insurance Agency or Broker D. Working at an (Re) Insurance Carrier E. Other, Specialty, Consulting Remember, your RMI journey is about finding the perfect intersection of your passions and the industry's needs. Dr. Boose' questions were a great help to me and are timeless. Best of luck this semester! #TalentPipeline #CareerOpportunities #InsuranceIndustry

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Some good news for employers: while benefit costs continue to rise, Marsh McLennan Agency's Employee Health & Benefits Benchmarking report indicates that Midwest employers are projected to see lower than average changes in total health benefit costs compared to other areas of the country. With open enrollment underway, we're providing our findings to you free of charge, so that you can cut costs while making plan enhancements. Download now at the link. #EmployeeBenefits

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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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Will insurance be a limiting factor for projected growth in Texas? Insurance companies manage aggregates (accumulations of risk exposure in geographically concentrated areas) to avoid cascading losses from a single event, and are generally allergic to hail these days. I hear from developers that they can't stomach the insurance deductibles, and I'm beginning to hear rumblings from banks that they're not sure they want to finance projects in Texas anymore. According to SEIA, Texas has 32GW of solar today. I came across this data analysis from Michael Thomas suggesting another 18-20GW of solar to be built in the next 18 months. At minimum, I highly encourage a developer to take the long term view here - invest in resilience (better modules, steeper stow angles, etc) - the insurance market *WILL* catch up over the useful life of the asset.

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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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Employers face a tricky predicament in satisfying the benefit needs of four distinct generations. In a recent AZ Big Podcast episode, my colleague Elise Thorpe, M.B.A. shared how to tailor insurance to a multigenerational workforce without breaking the bank, helping to attract and retain talent. #MarshMMA #EmployeeBenefits

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In its 10th year, the Global Insurance Symposium was held last week in Des Moines, Iowa. It brought together insurance industry regulators, executives, and leaders for insightful sessions and productive discussions on elevating digital customer experiences, accelerating transformation, and leading innovation. I was happy to be part of the panel with Dave Stangis, Doug Bujakowski, Charlie Sidoti, and Jonathan Godfread on “Climate Risk: How Insurers Can Weather the Storm.” The discussion could have lasted all day.  The panel closed out with the question of what is the most important thing the insurance sector should be considering/factoring into their business models over the next 12 months: Data Integration: Insurers can integrate meteorological data and climate models into their underwriting processes to gain insights into the potential risks associated with specific geographic areas. This includes historical weather patterns, climate projections, and other relevant environmental data. Risk Assessment Tools: Developing advanced risk assessment tools that incorporate meteorological data and climate models can help insurers evaluate the potential impact of extreme weather events on their portfolios. These tools can provide a more comprehensive understanding of the risks involved and help insurers make more informed underwriting decisions. Scenario Analysis: Conducting scenario analysis based on climate models allows insurers to assess the potential impact of different climate scenarios on their portfolios. By simulating various weather conditions and their effects on insured properties, insurers can better understand the range of potential risks they face and adjust their underwriting practices accordingly. Tailored Pricing and Coverage: Using meteorological data and climate models, insurers can develop more tailored pricing and coverage options for policyholders based on their specific risk exposures. This can help ensure that premiums accurately reflect the level of risk associated with a particular property or location, ultimately leading to more sustainable underwriting practices. Collaboration with Scientists and Researchers: Insurers can collaborate with meteorologists, climatologists, and other scientific experts to enhance their understanding of climate risks and improve the accuracy of their underwriting models. By leveraging the latest research and data-driven insights, insurers can stay ahead of emerging climate-related challenges and adapt their underwriting practices accordingly. Investment in Resilience Measures: Insurers can also invest in resilience measures aimed at mitigating the impact of extreme weather events on insured properties. This could include promoting risk reduction initiatives, encouraging the adoption of sustainable building practices, and incentivizing policyholders to implement measures that improve the resilience of their properties to climate-related risks. #GIS2024 #Insurance #Reinsurance #ClimateChange

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