Greg Crabb, President and CEO – Roundtable speaker, How to Move Forward on Legal System Abuse Reform,

Steve Donnelly, Chief Service Officer – Presenter and speaker, Litigation Management Hot Takes: Insights from the Task Force,

Enjonli Hutchison, Risk Management Manager; Kathleen Babilon, Risk Management Specialist; George Pavarini, VP of Complex & Specialty Commercial Claims – Presenter and speakers, The Nuclear Verdict Experience for Commercial Auto,

Ryan Anderson, Risk Management Technology Manager – Presenter and speaker, Exosuit Case Study: Deploying Exosuits to Improve Worker Well-being and Improve Productivity,

Matt Latham, Purchasing Manager – Presenter and speaker, Pitch to Approval: Building a Business Case for CLM,

Ashley Parker, Senior Risk Management Consultant – Presenter and speaker, Claims Management: A Key to Your Safety Program,

Marcus Rasberry, Risk Management and Lead Property Specialist – Podcast guest and speaker, Insurance and the Psychology of Risk,

George Pavarini, VP of Complex & Specialty Commercial Claims – Presenter and speaker, 91黑料网 Response to Social Inflation and Reptile Litigation Tactics,

Abbi Brock, Rotational Claims Specialist – Worker鈥檚 Compensation – Roundtable presenter, Functional Capacity Evaluations and Use in Worker鈥檚 Compensation Litigation,

Stay tuned for more in Q2! We鈥檒l share the latest news, media mentions and speaking engagements from 91黑料网 right here on the聽Newsroom聽each quarter.

Why This Matters

Vehicle accidents can have a ripple effect on businesses. , there were over 19,500 traffic-related fatalities in the U.S., with commercial vehicles involved in over 400,000 crashes annually. These incidents come with significant costs鈥攎edical, legal, property damage, and lost productivity鈥攖hat can be overwhelming for employers. That鈥檚 why having a streamlined, efficient claims process is so critical.

What Sets Us Apart

鈥淲e鈥檝e designed the Auto Direct Repair Program to do more than just fix vehicles鈥攚e鈥檙e focused on delivering a superior experience,鈥� says Matt Michalski, 础尘别谤颈蝉耻谤别鈥檚 Vice President of Claims Programs & Shared Services. 鈥淥ur policyholders can rest easy knowing their vehicles are in good hands, and we鈥檙e making sure the claims process is faster, smoother, and easier than ever.鈥�

Not only does the program include real-time updates, concierge-level service, and expedited scheduling, but it also comes with a lifetime repair guarantee. This means that repairs are guaranteed for as long as you own the vehicle. With this peace of mind, businesses and individuals alike can focus on what matters most鈥攇etting back on the road quickly and without stress.

鈥淲e鈥檙e committed to making auto claims as easy as possible,鈥� Michalski adds. The Auto Direct Repair Program isn鈥檛 just about fixing cars鈥攊t鈥檚 about providing a streamlined experience that minimizes downtime, reduces stress, and gets our customers back on the road faster.鈥�

Benefits at a Glance

• Over 2,400 pre-screened and insured shops across the U.S., where repairs are handled by experts you can trust.
• We keep you informed at every stage, so you always know where things stand.
• Expedited scheduling and a streamlined claims process mean you won鈥檛 be left waiting.
• Lifetime repair guarantee
• 91黑料网 handles payments directly with the repair shop鈥攏o need to wait for checks to clear.

For more information on how the Auto Direct Repair Program can streamline your repair process, visit our website.

Farmington Hills, Mich., October 3, 2024 鈥� 91黑料网 Insurance is pleased to announce the appointment of聽Matt Michalski as Vice President of Claims Programs & Shared Services.

In his role, Michalski will oversee the Auto Fast Track Unit, Express Claims Center, and Claims Operations. His responsibilities will include analytics, systems, vendor management, third-party administrator (TPA) management, special investigations unit, and Medicare compliance.

Michalski brings over three decades of expertise in the property and casualty insurance sector. His career began at a major auto insurance company, where
he started by writing collision damage estimates. Prior to joining 91黑料网, he held significant leadership positions at several prestigious insurance companies. Most notably, he served as Chief Operating Officer for a top-rated insurance company.

鈥淲e are very excited to have Matt join 91黑料网 to lead our Claims Programs & Shared Services functions,鈥� said Kimberly Vaughn, Vice President of Claims. 鈥淗is extensive experience and dedication to excellence are pivotal as we continue to enhance our service model and maintain industry-leading Net Promoter Scores.鈥�

Michalski earned a Bachelor of Arts in Political Science from Allegheny College in Pennsylvania and a Master of Business Administration from the State University of New York at Buffalo.

About 91黑料网 Insurance
91黑料网 is a leading provider of commercial property and casualty insurance solutions for U.S.-based construction, manufacturing and healthcare businesses. Licensed in all fifty states and available through an exclusive network of elite independent agents, the company upholds an 鈥淎鈥� (Excellent) financial strength rating, industry-leading service scores, and multiple awards for innovation. 91黑料网 has been in business for more than 100 years and is consistently named among the best places to work in the industry and throughout the nation. To learn more, visit amerisure.com.

The Impact of Rising Building Costs

The year 2020 witnessed an extraordinary sequence of 63 , ranging from Midwestern tornadoes to Western wildfires and Southeastern hurricanes, intensifying the challenges posed by the COVID-19 pandemic. As communities and businesses sought to rebuild, the demand for labor and building materials surged, triggering in costs.

Fast forward to 2023, global insured losses , marking a record-setting year for catastrophic events. According to reports from Aon and Gallagher Re, severe convective storms (SCS) represented . In the United States, six out of the ten most expensive events were attributed to SCS events, further underscoring the escalating frequency and severity of natural disasters. And since January 2020, national reconstruction costs have risen by an average of 8.1%, with material costs experiencing a 5.2% increase on average. Lumber prices, in particular, have in certain regions, exacerbating the financial strain on businesses and the urgent need for robust risk management strategies to mitigate the impact of future catastrophes.

What is ‘Insurance to Value’?

is a fundamental concept in risk management, representing the ratio of the insurance coverage amount to the actual value of the asset being insured. In the context of property insurance, if the insured value is less than the actual value of the property, it results in an incomplete Insurance to Value ratio. Inadequate ITV can leave policyholders exposed to substantial financial loss in the event of a claim, underscoring the importance of regularly reassessing coverage to align with the true value of assets.

The Implications of ITV

Inflation has also had a profound impact. Nonresidential with a 37% increase over the past four years. 65% increase in fabricated structural steel. 37% increase in the price of concrete products. Machinery and equipment costs have increased 22% over the same period. And as the cost-of-living rises, so does the value of assets; failure to adjust insurance coverage in response to inflation can result in inaccurate ITV ratios, leaving policyholders underinsured. For instance, if the value of real property or equipment appreciates due to inflation and insurance coverage remains static, the ITV ratio declines, potentially leading to financial vulnerability in the face of unforeseen events.

of rising building costs on Insurance to Value (ITV) is crucial to ensuring appropriate coverage in the event of a loss. Delays in post-loss recovery due to skilled labor shortages and expensive materials may expose businesses to exceeding policy limitations, with prolonged recovery times potentially surpassing the period of indemnity. But the consequences of an inaccurate or artificially low ITV extend beyond immediate cost savings; underreported values can lead to underinsurance or trigger coinsurance penalties. Notably, an inaccurate ITV is a primary cause of property claim litigation, as policyholders may find themselves inadequately covered in the event of a total loss.

Strategic Imperatives

Amidst the complexity of inflationary pressures and volatile market conditions, insurance agents play a pivotal role in guiding policyholders through the intricacies of ITV calculations. Here are some for agencies to consider:

• Proactive Client Engagement: Think about initiating mid-term meetings to educate policyholders about the implications of rising building costs and the importance of maintaining adequate coverage. By fostering open communication and providing insights into market dynamics, agents can empower clients to make informed decisions about their insurance needs.
• Precision in Rebuilding Cost Estimates: Be sure to conduct thorough reassessments of buildings, contents, and equipment replacement cost estimates to ensure alignment with current market trends. By staying abreast of supply chain disruptions and labor shortages, you can anticipate potential delays and cost fluctuations, thereby mitigating policyholder risks.
• Contingency Planning for Supply Chain Disruptions: Given the prolonged impact of supply chain disruptions, work with policyholders to develop robust contingency plans for sourcing and procurement. Diversifying supply chain networks and exploring alternative sourcing options can also help mitigate the impact of disruptions on reconstruction efforts. And, considering the extended timelines for recovery due to supply chain disruptions, it’s also essential to factor in these delays when calculating business income. By accurately assessing the potential impact of prolonged recovery periods on cash flow, you can make informed decisions and ensure your continuity even in the face of unforeseen challenges.
• Vigilance in Policy Review and Revision: Collaborate closely with policyholders including comprehensive reviews of policy limits and sub-limits to ensure adequate coverage. By advocating for policy terms that reflect the true replacement costs of assets, you can safeguard businesses against the risks of underinsurance and coinsurance penalties.

Looking Ahead

In a landscape marked by inflation, rising building costs, and frequent catastrophic events, policyholders, insurers, and agents must collaborate to navigate the complexities of Insurance to Value, ensuring that coverage remains commensurate with the evolving value of assets.

By addressing these challenges head-on, the industry can adapt to the changing landscape and continue to provide robust protection for individuals and businesses alike. Fostering proactive client engagement, precision in rebuilding cost estimates, and vigilance in policy review are essential strategies for agents navigating the shifting terrain of ITV with confidence and resilience. The pursuit of accurate Insurance to Value serves as a cornerstone for protecting policyholders against potential losses and fortifying their financial resilience.

The information provided in this article does not, and is not intended to, constitute legal advice; instead, all information, content, and materials contained in this article are for general informational purposes only.聽 Policyholders should speak to their agents directly to address any concerns they may have regarding their ITV.

When following the proper channels, businesses can benefit from the support that comes with coordinating the claims process through an expert. Claims representatives have proven knowledge and experience to settle claims at the lowest possible amount while also providing lifecycle claims handling, offering customized support, and detecting potential fraud. Claims representatives are also able to close the claim as soon as possible, helping with the prevention of high litigation costs.

Claims Costs & Reporting Lag Time

Depending on business size, the cost of a claim can impact a company鈥檚 Experience Modification Rate (for Workers鈥� Compensation) and underwriting discretionary pricing. (EMR), also known as experience modification factors or an experience modifier, are a comparison of a company鈥檚 expected Workers鈥� Compensation claim costs versus the actual claim costs.

To support strong EMR results and reduce overall costs, it is in a company鈥檚 best interest to report a claim as soon as it occurs. There are numerous studies confirming that the sooner an insurance carrier can work on claim management, the lower the ultimate payout will be. In fact, according to a research brief on the relationship between accident reporting lag times and claim cost in Workers鈥� Compensation by the the median cost of claims reported one day after an incident was significantly lower than claims that were reported two weeks after an incident.

Best Practices for Claims Handling

It is crucial to report a claim immediately to your company鈥檚 insurance carrier to enable the carrier to assign an expert to handle the claim, create a case number for the incident, and begin to control the cost. If a claim occurs during your policy period, make sure to report the claim as soon as possible directly through the insurance carrier鈥檚 website or phone number.

Reporting claims promptly will benefit your company and, ultimately, help keep insurance costs low.

Learn More

础尘别谤颈蝉耻谤别鈥檚 SureClaims experience leverages cost-saving practices to help protect your bottom line. Minimize total costs through technology, clinical expertise, medical provider collaboration, and negotiation services, including medical bill review, injury fraud prevention, early return-to-work programs, risk mitigation, managed medical costs and our digital first notice of loss portal.