I hope that everyone in attendance at the convention enjoyed themselves and we appreciate your being there. There were so many people that mentioned just how large of a turnout we had. Again, thank you!
Here is an update on what exactly went on during and after the covention:
1. During the convetion the board met with Brad Smith and John Sparrow.
2. The September Insurance Board Meeting.
3. I met with an Insurance Board member and a former VP.
The meeting with Brad and John was very cordial. Each party spoke and asked questions; both sides expressed thanks for the opportunity to talk. Brad, like Mr. Haney, expressed his commitment to the agency delivery system. There were mixed reviews afterwards, but the majority of board members seemed to feel the responses from the CEO and VP of sales were pretty standard to what they had been
The September Board Meeting:
This meeting was spent mostly on the cause-and-effect of the upcoming rate increases. One board member in particular spoke on the true need for such a drastic change and the effect it could have now and in the future of our company. I’m sorry to say, it appeared to fall on deaf ears.
Here are some facts as presented by the home office:
•117.35 combined loss ratio from January to September. In average, with UW income, stock market, and other income, we put 14 million back in reserve. That being said, as of the end of August, after the worst storms to hit Kentucky times TWO, we have lost $25 million out of reserves.
•2011 ended at 120.79; we are now at 117.35, and as a company, we have 875 million in reserve. (I love math, so if we had the same numbers that we have had this year for 35 straight years, we would be at $0 reserves.) We are—as of August 31—10,987 members behind quota. Only six counties have been able to meet the quota.
Here are somethings still on the table and are sure to be implemented in 2013: 1% wind/hail deductible; 1% total deductible; third party earthquake coverage; ACV with a buy-back endorsement.
The PIMS project was mentioned. 24,000 pieces of property, 63% of our business, has been reinspected. Resulting in:
•7% being cancelled
•42% having one or more changes made
•51% having no changes made
By the way, we have 700,000 structures insured.
Barren, Rowan, and Bourbon are still not posted??
Your clients that will be renewed in December can be viewed now OnBase. You can see where their coverages and premiums were and what will be changing. This is just a suggestion, but you might want to place a phone call to them impending good news or suggest options to lower their premium, such as higer deductibles. It may just help save some of your business.
The last meeting I had the night before the Board Meeting was very interesting as it involved a former VP and an insurance board member. I also asked and acquired the permission to have them meet with our Board. This I will set up probably in November before the December Federation meeting, if possible, or in January. The results will be published here.
So in the meantime, good luck selling- oh yeah, we aren’t suppose to sell! So happy working! If anyone needs anything please call me and may God bless you, because 2013 is looking to be an interesting ride in the Bureau. Hopefully we will all look back and just say, “Wow.”
Thanks again for your support and I look forward to visiting all of your districts in 2013.
Mickey Sirls
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