The U.S. property/casualty industry earned 17% more after taxes in 1996 than it did in 1995, helped by a strong fourth quarter in which pre-tax underwriting losses were 32.7% less than the year before. For the full year, underwriting losses declined by 4.9% from 1995. Other contributors to the overall earnings gain for 1996 were a 59.5% increase in realized capital gains and a 2.0% increase in net investment income.
Net premiums grew 3.5% in 1996, slightly less than the 3.6% and 3.7% gains of the previous two years. The industry's consolidated surplus (assets minus liabilities) rose 11.5% during 1996.
The figures were released by the Insurance Services Office (ISO) and the National Association of Independent Insurers (NAII). They represent consolidated estimates for the entire industry based on reports of insurers that account for 96% of the country's property/casualty business.
CNA offers program for municipalities
CNA Insurance introduced a municipal insurance program designed to cover all the day-to-day operations of municipalities, cities, towns, villages and counties in all 50 states. Coverages can be packaged or customized based on what applies to each municipality.
The program provides standard property and liability coverages and other specialized coverages such as public official liability and bond, law enforcement liability, employment practices, pollution liability and boiler & machinery. Golf courses, marinas and other municipally owned property also can be covered.
For more information, contact Bruce Weaver, vice president, CAM marketing, at CNA Commercial Insurance: (312) 822-5413 or visit the program's website: http://cam.cna.com/muni.
Hanover introduces wholesalers package
Hanover Insurance Company is offering a new commercial package called Premier Pac for Wholesalers which is designed for a wide range of wholesalers and distributors. The property form of the package has 40 more built-in coverages than standard policies and the liability form has 19 additional coverages, according to Hanover.
The property protection includes $500,000 of business income and extra expense coverage. Coverage of stock can be boosted by 25% for peak seasons. Other coverages include: property in transit ($50,000), property off premises ($100,000) and salespersons' samples ($25,000).
Liability coverage includes a limit of $100,000 for government-ordered product recalls. Wholesalers and distributors of food (except beverages) are not eligible. Premier Pac for Wholesalers has been filed in 23 states.
More information is available from Hanover regional offices or Greg Shannon: (508) 855-3307.
Royal program provides variety of executive coverages
Royal Insurance USA introduced a collection of various coverages known as Management Assurancesm Portfolio for mid-market and larger commercial accounts. The client can choose from the following coverages in Management Assurance, using them individually or in the full portfolio:
D&O liability--protecting the personal assets of directors and officers and which may include indemnification coverage for a company's directors and officers, employees and the entity itself; employment practices liability--including but not limited to discrimination, sexual harassment and wrongful termination; fiduciary liability--protecting corporate assets and personal assets of the fiduciaries, trustees and administrators of a company's benefit plans; crime protection--including employee dishonesty, with the option of coverage for theft, disappearance, robbery, safe burglary, depositor's forgery, computer fraud and funds transfer coverage; kidnap and extortion coverage.
Among the general portfolio features of Management Assurance are: the option to purchase insurer duty to defend coverage, flexible and bilateral discovery periods and automatic runoff coverage with predetermined maximum costs for claims-made coverage parts; and single or multiple year policy periods.
The special features in the directors and officers liability coverage part include: the insured's retention applies only to defense costs and is waived for all claims if the insured is not legally liable to pay any amount other than defense costs; automatic employment practices liability coverage is included for directors and officers; all private companies can have the coverage endorsed to guarantee a quote for initial public offerings; there is punitive damages coverage for securities claims where insurable.
In the employment practices coverage part there is no exclusion for reductions in force or mass layoffs and no purposeful or intentional acts exclusion. Also, class action only coverage can be purchased.
The policies will be written through Royal's branch offices. Further information is available at Royal's website: www.royal-usa.com or from the Financial Products Customer Center: 800-697-7564.
Insured catastrophe losses are light in first quarter
The Property Claims Services (PCS) division of American Insurance Services Group reported relatively light insured losses from catastrophes in the first quarter of 1997. "We identified six catastrophes and estimated a total of $675 million in losses," said Gary Kerney, assistant vice president of PCS.
That ranks the quarter seventh on the list of first quarters, way behind the first quarters of 1993 ($2.93 billion including the bombing of the World Trade Center in New York and March storms in 20 states from Texas to Maine) and 1994's $14.5 billion which included the $12.5 billion Northridge earthquake.
In the first quarter of 1997, the industry handled 364,000 claims, according to PCS, compared to the record-setting 1,389,200 in the first quarter of 1994 and the 1,217,000 in 1996 which included the Blizzard of '96 and other severe winter storms.
Jewelers Mutual expands appraisal liability program
Jewelers Mutual Insurance Company expanded its jewelry appraisal liability program for jewelers and jewelry appraisers who meet specific criteria for appraisal work. The jewelry appraisal liability coverage now can be added to Jewelers Mutual's Businessowners policy, Craftsman policy and Combination policy.
The Businessowners policy is used for most retail jewelry businesses; the Craftsman policy covers bench and repair jewelers and jewelry appraisers; and the Combination program is for larger jewelry businesses.
Originally the company's appraisal liability coverage was developed for retail jewelers who received only a small portion of their income from appraisal work. Jewelers Mutual President Ron Harder points out that over the last few years insurance companies have begun requiring better jewelry appraisers and appraisers, leading to the need for additional coverage.
To qualify for coverage under the new program, jewelers and jewelry appraisers must meet specific criteria such as appraisal education, affiliation with recognized jewelry or appraisal associations, appraisal experience and appraisals that meet the company's guidelines.
Jewelers Mutual does business in all 50 states and, with a Canadian partner, insures Canadian jewelers also.
Reliance opens up distribution of waste haulers program
Reliance Specialty, which previously offered a program for waste haulers through a managing general agent, will now offer the coverage directly through agents. To be eligible to write business in the program, an agent must either be under contract with Reliance or have a large book of waste haulers business--in the $500,000 premium range.
The Reliance Specialty program, which has been in existence for more than 10 years, targets privately owned sanitation contractors involved in the collection and disposal of refuse and recyclable material. Eligible risks include: residential and commercial trash/recyclable haulers; transfer and recycle station operators who collect, haul, sort, compact, resell or dispose of waste from private homes; and businesses that collect construction debris.
Coverages offered in the program include: property--real and personal property; automobile--liability, including hired and nonowned, and physical damage coverage on a stated amount or actual cash value basis; general liability--comprehensive general liability (occurrence and claims-made forms are available).
For more information contact Jim Gow: (215) 636-8577 or go to Reliance's web site: www.reliance.com and click on products and services to find Specialty. *