phone or online, at the end of the day they want and need to buy insurance and hear advice from another person with whom they are comfortable and who they trust. That’s what insurance is: Peace of mind, and knowing that someone will be there when you really need them. As an industry, we need to remember that.” Olderman said the importance of relationships goes beyond those of producers and their clients. The insurance community could work together to combat an image problem and support each other, he said.
“This community is our greatest asset and the very thing that will ensure our future,” he remarked. “I am proud to be counted among the ranks of professional, independent insurance agents.”
■
He urged his colleagues to continue their participation in PIA and endeavors that would improve both their image and professionalism. “Make it your mission to forward our industry,” he said. “Encourage your staff and smart up-and-comers to get involved with PIA ... the investment any individual makes [toward forwarding the industry] is rewarded many times over and most importantly, it builds our community.”
continued from page 5
Thabault, commissioner of BISHCA. “It is also important to recognize that businesses across Vermont have worked hard to create a culture of safety at their workplaces, and the reduced costs that many employers will experience with this rate decrease are a direct result of their efforts.” In particular, the state officials noted that loss costs will decline significantly for two primary Vermont industries – dairy farms with an 18.9% decrease and ski areas with 12.9%.
Loss costs are the main components used to calculate premiums in the voluntary market. According to BISHCA, about 93.4% of the market in Vermont is able to find coverage without going to the assigned risk market.
Residual market rates are set to de-
cline by an average of 2.9% as a result
of BISHCA’s decision. The National
Council on Compensation Insurance
(NCCI), which makes advisory loss
cost and rate filings in all New Eng-
land states except Massachusetts, had
recommended a 1.0% rate decrease for
the involuntary market, but BISHCA
opted for the steeper drop.
According to a recent presentation from NCCI, workers’ compensation premium volume has continued to drop in Vermont, resulting in deteriorating underwriting results and combined ratios. Premium volume dropped to $174 million in 2008, down from a recent high of $207 million in 2006.
Vermont’s combined ratio jumped to 94% in 2007 from 83% in 2006. However, this was nowhere near the high of 169% of 1999, NCCI data showed.
The poor underwriting results are a departure from the overall national position, where comp insurers remain in better shape.
There was a “modest” uptick in claim frequency during the most recent policy year in Vermont, NCCI noted, while nationally, frequency is still declining.
■
Voluntary loss costs dropped an average of 13% in Vermont last year, the largest decrease since 1997. In 2008, loss costs were cut by an average of 4.2%.
Conn. Dept. Fines Zurich
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continued from page 5
The company complied with the stipulation and final order, and will submit a compliance report to the commissioner within 90 days, according to the Dept. In agreeing to comply with the stipulation, Zurich said it is not admitting to any of the allegations.
“Several of the alleged violations related to differences of interpretation of the applicable law and/or department bulletins, and we felt it best to resolve the issues in a constructive fashion rather through an adver-sarial proceeding,” Zurich said in a prepared statement. “Moreover, we have pro-actively agreed to change certain of our business practices going forward.” ■
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