Blog | Top O' Michigan Insurance Solutionshttps://tomia247.com/blog/2024-03-29T08:05:11+00:00Blog
Come back often for all the latest insurance news updates.What Businesses Need to Know About the Insurance Market Outlook for 20222022-01-16T21:44:02+00:002024-03-28T12:52:17+00:00Tyler Bartoshhttps://tomia247.com/blog/author/TBartosh/https://tomia247.com/blog/what-businesses-need-to-know-about-the-insurance-market-outlook-for-2022/<p><span>The last few years have been a challenge for many businesses due to a number of reasons (some more obvious than others). Some of these factors have also had a negative effect on the insurance industry after years of relative stability, which has accelerated a hardening insurance marketplace. This means that many segments of the insurance industry are becoming less friendly to insurance buyers. Going into 2022, we should be prepared for a challenging insurance environment to remain but we could expect some improvement from 2021. In this blog, we'll do an overview of the 2022 insurance marketplace and kick off a series of blogs on this topic so businesses (and individuals) can be more prepared when reviewing their insurance solutions.</span></p>
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<p style="text-align: center;"><span style="color: #00529b; font-family: SourceSansProRegular, 'SourceSansPro Regular', Arial; font-size: 1.7em;">What is a 'hard' insurance market?</span><br/><strong></strong></p>
<p><span>The commercial market is cyclical and that means that over time, we have witnessed a fluctuation between hard and soft markets. A 'hard' insurance market can be characterized by stricter underwriting, restricted terms of coverage, less capacity and less competition - which unfortunately also mean increased premium costs. On top of that, insurance carriers are more likely to exit certain unprofitable lines of insurance. Over the years, we have witnessed this in a number of industries including areas of healthcare, towing, transportation, and hospitality.</span></p>
<p><span>We have seen the market harden for a short time on a few occasions but the last sustained hard market occurred in the 1980's. Our agency President, <span style="text-decoration: underline;"><strong><a href="https://www.linkedin.com/in/bdbartosh" rel="noopener" target="_blank">Brian Bartosh</a></strong></span>, recalled some of the unique ways we secured coverage for our clients. In some instances, agents negotiated with multiple companies to "share" the exposure when the limits needed were too high for one company's capacity.</span></p>
<p><span><img alt="Average Premium Changes - Zywave" height="auto" src="https://www.tomia247.com/media/uploads/Stock%20Images/average_premium_changes_-_zywave.png" style="display: block; margin-left: auto; margin-right: auto;" width="75%"/></span></p>
<p style="text-align: center;"><em>The graphic above provided by Zywave (via The Council of Insurance Agents & Brokers) shows the cyclical nature of the insurance market from 1999 - 2021.</em></p>
<p></p>
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<h4 style="text-align: center;">What factors are causing the 'hard' insurance market?</h4>
<h4><img alt="Hard Market Economy Insurance" height="auto" src="https://www.tomia247.com/media/uploads/Stock%20Images/istock-1278695302.jpg" style="float: right;" width="40%"/></h4>
<p style="text-align: left;"></p>
<p style="text-align: left;"><span>Many factors affect the cost of insurance but the following are a few of the common contributors:</span></p>
<ul>
<li style="text-align: left;"><span>The <strong>Economy</strong></span></li>
<li><strong>Inflation</strong></li>
<li><strong>Catastrophic (CAT) Losses </strong></li>
<li><strong>Inconsistent Underwriting Profits</strong></li>
<li><strong>Return on Investments</strong></li>
<li><strong>The Cost of Reinsurance</strong></li>
</ul>
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<h4 style="text-align: center;">What factors influence my insurance rates?</h4>
<p>While the reasons above can make it difficult for consumers to secure their desired coverage at the expected price, there are additional factors that influence your insurance rates. Here are a few of the main components that factor in when pricing your coverage:<strong></strong></p>
<h4 style="text-align: center;"><img alt="Insurance Rates Premium" height="auto" src="https://www.tomia247.com/media/uploads/Stock%20Images/istock-1249714483.jpg" style="float: right;" width="40%"/></h4>
<ul>
<li><strong>Industry</strong> - Of course, certain industries carry more risks than others. For instance, the pricing, coverage conditions and availability are significantly different if you're a crane operator versus a retail store. </li>
<li><strong>Size of you Business</strong> - The Liability and Workers Compensation are driven by <span style="text-decoration: underline;">sales</span> and <span style="text-decoration: underline;">payroll</span>. So the larger your business, the more likely you are to pay higher premiums due to volume of sales and payroll. This can also factor into your auto policy for a fleet of vehicles, employment practices liability, cyber liability and more.</li>
<li><strong>Coverage - </strong>Obviously, the type of insurance you're seeking will also affect your annual insurance costs. Not only the policy types (Property, General Liability, Auto, Umbrella, Employment Practices Liability, etc) but also the limits or values selected.
<ul>
<li><strong>Total Insurable Value (TIV) </strong>- The more property coverage required to protect your business, the higher your premium will be.</li>
<li><strong>Liability Limits</strong> - Each layer of liability you add on will increase the cost. For instance, many businesses start with limits at $1,000,000 and co up from there.</li>
</ul>
</li>
<li><strong>Claims History </strong>- As mentioned above, if you're in a high risk industry that is more likely to experience a loss or a catastrophic loss, that will impact your rates. In addition, if your business's claim history (confirmed with 'Loss Runs') will also have an impact on insurance rates. If you are experiencing frequent claims or severe claims, the underwriters tend to view your business as one that is more likely to file a claim.</li>
<li><strong>Risk Management - </strong> This is a broad term but can be designed to help control not only your up front insurance costs but also to avoid future losses. Security and safety procedures in place can help provide some financial relief while you can also look to "self-insure" some exposures with a higher deductible or simply financing the risk through other methods.</li>
</ul>
<p>While insurance buyers may face more complex decisions regarding their insurance during a hard market , with some additional preparation, they are not without recourse. It is important to be proactive when addressing your risk management plan and to be educated on the trends that influence your insurance. It was not mentioned above but <strong>Loyalty </strong>can also be helpful when renewing your insurance. Some companies we work with have demonstrated extreme consistency in pricing year to year and underwriters are often more flexible since they understand the history of the risk. So it is not always advantageous to jump at the next 'shiny object' <span style="text-decoration: underline;">without careful review and consideration</span>.</p>
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<h4 style="text-align: center;">What trends do I need to watch for in 2022?</h4>
<p><img alt="2022 Insurance Trends" height="auto" src="https://www.tomia247.com/media/uploads/Stock%20Images/istock-695433280.jpg" style="float: right;" width="40%"/></p>
<p>Unless you have been living under a rock, you are most likely aware of the economic and social challenges we're collectively facing. These challenges will continue to shape our economic and insurance trends for 2022 and beyond. Let's take a look at a few of those trends to consider when making decisions for your business.</p>
<ul>
<li><strong>Economy -</strong> This is a very encompassing word which includes a number of sweeping developments for consideration.
<ul>
<li><span style="text-decoration: underline;">Labor Shortages</span> - Businesses have had to adjust in a number of ways to attract and retain talent. The pandemic has caused many workers to reevaluate their employment priorities while many unemployed individuals have become apprehensive of returning to the workforce. To help combat the labor shortages, businesses have gotten more creative and generous with their workplace adjustments including referral bonuses, work from home, additional benefits, new technology and flexible hours. Businesses will need to continue to push the envelope to attract and retain their employees. </li>
<li><span style="text-decoration: underline;">Supply Chain</span> - Whether it was the dependency of products produced overseas or the strained transportation industry, a range of supply chain disruptions have taken place since the onset of the pandemic. You've seen the images of shipping containers stuck at port, truck driver shortages and even theft of packages directly from the trains. The supply chain issues don't stop with physical goods, it has also led to a "service supply chain" issue where processing and response time have bottle necked. It is important to understand these challenges and develop contingency plans if possible to pivot your operations.</li>
<li><span style="text-decoration: underline;">Inflation </span>- The issues above have in large part, fueled the rising inflation issues. When we are seeing inflation rates well above 6%, this means the cost to repair or replace property has increased and vehicle repair expenses are surging. Insurance carriers are often forced to increase prices to keep pace with these volatile trends.</li>
<li><span style="text-decoration: underline;">Social Inflation</span> - You may have heard this term used in reference to rising cost of insurance. Social inflation refers to the societal trends that influence the rising costs of insurance claims and lawsuits. There are a number of factors that hit the ever-rising social inflation costs including litigation funding by third parties, tort reform, length of time to settle due to the backlog in the courts, plaintiff-friendly legal decisions and large jury rewards.</li>
</ul>
</li>
<li><strong>Extreme Weather - </strong>Unfortunately, while we dealt with a virus and economic disruption, extreme weather events likes hurricanes, wildfires, tornadoes, and hailstorms have continued to rage on. Many experts believe that severe storms, temperatures, wildfires and flooding will be the new norm. With an increase in frequency and severity, insurance costs are sure to follow.</li>
<li><strong>Social Movements</strong> - We cannot ignore the surge in social movements to push for accountability and equality. Regardless of which side of the fence you're on, they are here to stay. Not only have protests and civil unrest rippled through cities, other movements like the #MeToo movement have helped with sexual harassment issues in the workplace. These movements have caused an increase in employment related lawsuits impacting certain lines of insurance coverage to defend.</li>
</ul>
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<h4 style="text-align: center;">What should I expect for insurance pricing in 2022?</h4>
<p>Insurance pricing forecasts are based on industry reports for various lines of insurance. These are not a guarantee or premium rates and should only be viewed as general information (not insurance or legal advice). According to Zywave's 2022 P&C Market Outlook, various lines of insurance</p>
<p><img alt="2022 Insurance Market Forecast" height="auto" src="https://www.tomia247.com/media/uploads/blog/2022_market_forecase_zywave.jpg" style="float: right;" width="60%"/></p>
<p> coverage are expected to rise but some more than others. The table to the right shows what they have projected per line of business.</p>
<p><span class="textRed"><strong>DO NOT PANIC!</strong></span> We have outlined a number of factors that have made the insurance buying process complex and it may feel unpredictable. While it may seem that rate increases will continue through 2022, some data suggests this may be wishful thinking by insurers. Not all lines of coverage are experiencing heavy losses or rate increases. <a href="https://www.insurancejournal.com/magazines/mag-features/2021/12/20/645852.htm" rel="noopener" target="_blank"><strong><em>"AM Best has revised its market segment outlooks to stable for workers' compensation, commercial property and surety. The outlooks for commercial auto, general liability, medical professional liability, and professional liability are negative." </em></strong></a></p>
<p>So, regardless of what the insurance market is doing, there are a few ways you can achieve better results in your insurance renewal process.</p>
<ol>
<li>Plan ahead and with ample time to take inventory of your current coverage needs, make adjustments and seek other potential solutions.</li>
<li>Work with an independent agent that has the knowledge and access to markets to help provide you with options. Your agent is your direct line of communication to the company and has established relationships with the underwriters.
<ul>
<li> This means to have information available, be honest and up front with your agent so they can help protect your exposures.</li>
<li>Top O' Michigan acts as your 'expert buyer of insurance' and can help navigate this process with you.</li>
</ul>
</li>
<li>Be proactive with your risk management plan. Be sure to address any potential loss control recommendations such as repairing property, using methods of risk transfer including contracts, or improving safety measures.</li>
<li>And remember, the insurance market is cyclical so we should expect it to level again as the financial climate adjusts. </li>
</ol>
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<h5 style="text-align: center;">For more risk management guidance or questions about your policy's coverage limits, <a href="https://www.tomia247.com/about/contact-us/" rel="noopener" target="_blank" title="Contact Us">contact us today.</a></h5>
<p><a href="https://www.tomia247.com/about/contact-us/" rel="noopener" target="_blank"><img alt="Contact Us" height="auto" src="https://www.tomia247.com/media/uploads/icons-and-logos/istock-609801866.jpg" style="display: block; margin-left: auto; margin-right: auto;" width="50%"/></a></p>
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<h2><span>More Industry News</span></h2>
<p><span>Want to stay up to date on the latest community and insurance news? You can find more on important topics on<a href="https://www.tomia247.com/blog/" rel="noopener" target="_blank" title="TOMIA Blog"> </a></span><a href="https://www.tomia247.com/blog/" rel="noopener" target="_blank" title="TOMIA Blog"><span>our blog</span><span>.</span></a></p>
<p><strong>About Top O' Michigan Insurance Solutions:</strong></p>
<p>At Top O’ Michigan Insurance Solutions, we pride ourselves on using our skills to provide clients with competitive pricing, stability and understanding, and peace of mind. With seven locations throughout Michigan and 24/7 client access, our team is your 'expert buyer' of insurance for home, auto, farm, boat, motorcycle, business owners, workers compensation, bonds, life and health, employee benefits and more.</p>
<p>We will provide unparalleled and caring service to our clients through our knowledgeable staff and give back to our employees, agency, industry and our communities. Part of our mission is to give back to the Michigan communities we serve. This is something we take action on through We Care and you can learn more about our community outreach at <a href="https://www.tomia247.com/about/community-involvement/" rel="noopener" target="_blank" title="TOMIA247.com/WeCare">TOMIA247.com/WeCare</a>.</p>
<h6><strong>National Resources, Locally Sourced.</strong></h6>
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<p><i><span>Disclaimer: </span></i><span><em class="x-el x-el-span c2-9 c2-a c2-3g c2-s c2-o c2-3i c2-3j c2-3">This Blog/Web Site does not provide insurance or legal advice. This site is for educational purposes only as well as to provide you with general information and a general understanding of insurance, not to provide specific legal advice or specific contract advice. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute a client relationship. </em></span></p>
<p><span><em class="x-el x-el-span c2-9 c2-a c2-3g c2-s c2-o c2-3i c2-3j c2-3">The information on this Blog/Web Site is not intended to be a substitute for professional insurance or legal advice. Always seek the advice of a licensed agent in your state pertaining to insurance and legal issues.</em></span></p>
<p><span>Author: Tyler Bartosh</span></p>
<p><span>Sources: <span style="text-decoration: underline;"><strong><a href="http://www.zywave.com" rel="noopener" target="_blank">Zywave</a></strong></span>, <strong><span style="text-decoration: underline;"><a href="https://www.insurancebusinessmag.com/ca/news/specialty-insurance/hard-market--global-pandemic--sucker-punch-for-hospitality-industry-229213.aspx" rel="noopener" target="_blank">Business Insurance Canada,</a> <a href="https://www.jdsupra.com/legalnews/looking-ahead-to-2022-a-guide-to-2843821/" rel="noopener" target="_blank">JDSUPRA.com,</a> <a href="https://www.insurancejournal.com/magazines/mag-features/2021/12/20/645852.htm" rel="noopener" target="_blank">InsuranceJournal.com</a></span></strong><a href="https://keystoneinsgrp.com/" rel="noopener" target="_blank"></a></span></p>5 Strategies for Reducing Health Benefits Costs in 20222021-11-05T14:54:48+00:002024-03-29T08:05:11+00:00Tyler Bartoshhttps://tomia247.com/blog/author/TBartosh/https://tomia247.com/blog/5-strategies-for-reducing-health-benefits-costs-in-2022/<p>For the past two decades, health costs have increased each year. This happens for a variety of reasons, such as inflation or, say, a global pandemic. With that in mind, employers can bank on prices going up in 2022.</p>
<p>According to a PricewaterhouseCoopers (PwC) report, medical costs are projected to increase 6.5% in 2022. This is about average for the past decade; although, it is slightly lower than the 7% increase projected this year (as more spending goes toward the COVID-19 pandemic).</p>
<p>Yet, 6.5% is still a considerable increase, especially when so many budgets have been reallocated or slashed due to the pandemic. That’s why employers must think both strategically and creatively about how they can lower their health benefits expenses in 2022.</p>
<p>This article includes five ways to help reduce spending without compromising benefits quality.</p>
<h4>1. Control Drug Spending</h4>
<p>Drug prices are rising faster than any other medical service or commodity. Prices are now 33% higher than they were in 2014, according to GoodRx. This is a significant problem during inpatient procedures, where individuals aren’t usually given an option to select a generic medication—patients rarely know what drugs they’re given until after the fact. Even in routine prescription scenarios, employees may be prescribed name-brand medications simply due to physician preference.</p>
<p>Employers can educate employees on the price differences between name-brand and generic medications. Doing so can help employees understand that they can save money while still receiving the same quality treatment.</p>
<p>Additionally, employers may consider introducing varying levels of prescription drug coverage. For instance, fully covering generic prescriptions or drugs used for chronic conditions. For higher levels (e.g., specialty drugs), employers may cover less of the costs. Ultimately, employers will need to determine the appropriate coverage levels for their unique workplaces.</p>
<h4>2. Encourage Active Benefits Participation</h4>
<p>Beyond drug spending, employers can help limit overall health costs by making employees active participants in their health care. This means encouraging employees to improve their health literacy, research treatments and price shop.</p>
<p>Price shopping, in particular, should be easier in 2022, given the new <a href="https://www.cms.gov/hospital-price-transparency">hospital price transparency rule</a> that took effect Jan. 1, 2021. Employees will now be able to see specific prices for procedures and other services. This incentivizes employees to educate themselves before making costly health decisions.</p>
<h4>3. Offer Savings Accounts with Carryovers</h4>
<p>Health plans with savings components are becoming more popular each year. That’s because these tax-advantaged savings accounts empower employees to control their own spending and improve their health literacy. The accounts include health savings accounts (HSAs), flexible spending accounts (FSAs) and others.</p>
<p>Many accounts allow for fund carryover year to year, or allow employers to add that option onto their plan designs. Allowing carryover encourages employees to contribute more funds, since they’re no longer “use it or lose it.” Since many employers match contributions up to a limit, more money added to these accounts means greater tax savings for everyone.</p>
<h4>4. Embrace Virtual Health Options</h4>
<p>One major takeaway from the COVID-19 pandemic has been that virtual solutions can offer high-quality outcomes. This is so true that many companies are allowing employees to work remotely permanently. Virtual health options are no exception to this trend.</p>
<p>There are countless telehealth services available these days. Individuals can connect with health professionals in just a few clicks—no waiting times or driving to a clinic. Additionally, individuals will not need to take large chunks of time off work, allowing for greater productivity. As such, telehealth solutions are often much less expensive than a typical in-person doctor visit. Even the Centers for Medicare and Medicaid Services (CMS) acknowledges the <a href="https://www.cms.gov/newsroom/press-releases/cms-proposes-physician-payment-rule-improve-health-equity-patient-access">usefulness of telehealth services</a>, seeking to expand access.</p>
<p>Employers can consider adding telehealth services into their plan designs. In some cases, it may be cost-efficient for employees to schedule a virtual health visit before an in-person appointment, under certain circumstances. In any case, having a telehealth option expands access to care and lowers expenses for everyone.</p>
<h4>5. Consider Plan Funding Alternatives</h4>
<p>A more drastic option for reducing health costs is restructuring how plans are funded. For instance, a self-funded plan may be more cost-effective than paying a monthly premium for a fully insured plan. Other options include level-funding or reference-based pricing models, each of which carries its own set of administrative rules and legal constraints.</p>
<p>Funding decisions should not be taken lightly and should be based on several factors, such as the size of an organization, risk tolerance, and financial stability. Employee financial stability should also be considered, especially while the effects of the COVID-19 pandemic can still be felt. Employees may not be able to burden large premium increases, constraining some plan funding flexibility options.</p>
<p>Historically, employers have shifted costs onto their employees (usually through higher premiums) as a way to reduce spending. However, that trend is not expected to be widespread in 2022. Considering the tight labor market and how many individuals are struggling financially due to the pandemic, employers will likely be hesitant to shift too much of the burden. Doing so may cause employees to seek other jobs or simply forego preventive care, which can lead to chronic conditions and higher future health care costs.</p>
<h4>Conclusion</h4>
<p>Employers have a variety of ways in which they can help contain health care expenses. Choosing the right method will depend on unique employee populations and budgets.</p>
<p>Reach out today for help strategizing your best options.</p>
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<p><iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen" data-mce-fragment="1" frameborder="0" height="315" src="https://www.youtube.com/embed/3UJz2PZ9n-w" width="560"></iframe></p>
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<p><strong>Brought to you by the insurance professionals at Top O' Michigan Insurance Solutions</strong></p>
<p><strong>This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice. © 2020 Zywave, Inc. All rights reserved.</strong></p>How Can I Save Money on My Business Insurance?2020-07-10T14:07:26+00:002024-03-28T09:43:05+00:00Tyler Bartoshhttps://tomia247.com/blog/author/TBartosh/https://tomia247.com/blog/how-can-i-save-money-on-my-business-insurance/<h1>How can I save money on my business insurance?</h1>
<p><span>Let's face it, most people want value when purchasing something. Whether that is a safe and reliable vehicle at an affordable price, quality craftsmanship in remodeling your home (without breaking the bank) or your business insurance package - quality and price are important. </span></p>
<p><span>So you may be wondering, how can I keep my insurance premiums down so that I can afford the best coverage (also known as Value)?</span></p>
<p><span> </span></p>
<div>
<h5 class="x-el x-el-h5 c2-42 c2-43 c2-c c2-d c2-44 c2-n c2-28 c2-27 c2-29 c2-3 c2-45 c2-4 c2-16 c2-5 c2-6 c2-7 c2-8">How Can I Keep Premiums Down?</h5>
</div>
<ol>
<li><strong class="x-el x-el-span c2-9 c2-a c2-3g c2-s c2-3h c2-3i c2-3">Avoid Losses -<span> </span></strong>Insurance is similar to your credit. The cost is typically lower for those with better claim histories. If you are having more frequent losses or more costly losses, your premiums will reflect that because it may suggest there will be more losses in the future. Some businesses may struggle to obtain insurance at all or it won't be affordable if the loss history is too bad. However, if you have hit a streak of 'bad luck' or are unable to correct certain risks, do not worry!<span> </span><u class="x-el x-el-span c2-9 c2-a c2-3g c2-s c2-o c2-3i c2-3l c2-3">By working with the right independent insurance agent, they can help with loss control, risk improvement and negotiating on your behalf.</u></li>
<li><strong class="x-el x-el-span c2-9 c2-a c2-3g c2-s c2-3h c2-3i c2-3">Manage Risk -</strong><span> </span>As mentioned above, the cost of claims and/or the frequency of them can negatively impact your insurance costs. Create a safety culture at your company and be sure to make it publicly known. By enforcing the employee handbook, use of Personal Protective Equipment (PPE), safe driving, caution signs, safety meetings, drug testing, etc., you can make your business more appealing to insurance companies to compete on. Ask your independent agent about specific actions you can take or implement to reduce your premium.</li>
<li><strong class="x-el x-el-span c2-9 c2-a c2-3g c2-s c2-3h c2-3i c2-3">Choose a higher deductible -</strong><span> </span>The deductible is the amount of money you pay before your insurance policy kicks in. As you increase your deductible, the more of a discount the insurance company can provide. Be sure not to set your deductible so high that it will become a financial burden on the business after a loss. Determine your "pucker factor"- the level of stress or amount you can afford.</li>
<li><strong class="x-el x-el-span c2-9 c2-a c2-3g c2-s c2-3h c2-3i c2-3">Shop around -</strong><span> </span>The cost of insurance will vary from company to company, so it can be helpful to have several options where companies are competing for your business. By working with an independent insurance agent, you can also save time on "shopping" for insurance the right agency has access to the top companies. It is important to compare coverage and price for the best value. REMEMBER, the cheapest isn't usually the best!</li>
<li><strong class="x-el x-el-span c2-9 c2-a c2-3g c2-s c2-3h c2-3i c2-3">Bundle or Package Policies -<span> </span></strong>You can maximize additional discounts by combining multiple policy types with the same carrier such as Property, Liability, Workers Compensation and Business Auto. However, it may not always be to your advantage as some companies provide better coverage or value added services than others. You can also often buy more coverage on a Businessowners Policy (BOP) than to buy coverages individually.</li>
<li><strong class="x-el x-el-span c2-9 c2-a c2-3g c2-s c2-3h c2-3i c2-3">Work closely with your independent agent -<span> </span></strong>All and all, there are a number of ways you can positively impact the bottom line with the right insurance solution. The more you share with your agent, the better they can help protect your business. The right agent won't try to sell you as much insurance as they possible can but rather be an expert buyer of insurance on your behalf and implement strategies to help your business. </li>
</ol>
<h5><a href="http://www.theinsurancegeek.com" rel="noopener" target="_blank"><span style="text-decoration: underline;"><strong>Learn more at TheInsuranceGeek.com</strong></span></a></h5>
<p><span style="text-decoration: underline;"><strong><img alt="" src="https://www.tomia247.com/media/uploads/featured_images/insurance_geek_tile.png"/></strong></span></p>
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<p><span><em class="x-el x-el-span c2-9 c2-a c2-3g c2-s c2-o c2-3i c2-3j c2-3">This Blog/Web Site does not provide insurance or legal advice. This site is for educational purposes only as well as to provide you with general information and a general understanding of insurance, not to provide specific legal advice or specific contract advice. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute a client relationship. </em></span></p>
<p><span><em class="x-el x-el-span c2-9 c2-a c2-3g c2-s c2-o c2-3i c2-3j c2-3">The information on this Blog/Web Site is not intended to be a substitute for professional insurance or legal advice. Always seek the advice of a licensed agent in your state pertaining to insurance and legal issues.</em></span></p>
<p><span>Author: The Insurance Geek</span></p>
<p><span>Learn more at TheInsuranceGeek.com</span></p>Auto Insurance Reform Bill Passed2019-05-29T21:42:35+00:002024-03-29T01:16:18+00:00Tyler Bartoshhttps://tomia247.com/blog/author/TBartosh/https://tomia247.com/blog/auto-insurance-reform-bill-passednow-what/<h2><strong>Michigan Lawmakers Pass Auto Insurance Reform Bill</strong></h2>
<p style="font-weight: 400;">After more than four decades under the current no-fault system, Michigan is about to see major reform for the first time since the No-Fault Automobile Insurance Law took effect in 1973. <span>Last week, Governor Whitmer signed a bill into law that contains a number of sweeping changes to the No Fault Act. While we are still reviewing all 125 pages of the law to understand these changes and their potential impacts, we thought we’d share a brief summary given the current level of interest.</span></p>
<p>In a statement on Friday, May 24, Governor Gretchen Whitmer wrote:</p>
<p><em>"This plan will help drivers from Detroit all the way to the U.P. It guarantees lower auto insurance rates for eight years, protects people’s choice to pick their own insurance and coverage options while preserving the safety net, and bans insurance companies from using discriminatory non-driving factors when setting rates."</em></p>
<p style="font-weight: 400;">As reported in last Friday’s NewsNow, the legislature overwhelmingly passed a bipartisan no-fault reform package after weeks of negotiations between the legislative leadership.</p>
<ul>
<li style="font-weight: 400;"><span></span>Allows an insured person to select an Unlimited, $500,000 or $250,000 Personal Injury Protection (PIP) option. </li>
<li style="font-weight: 400;"><span></span>Allows seniors on Medicare to opt out of purchasing PIP coverage entirely, and allows Medicaid recipients to purchase a PIP policy of $50,000. </li>
<li style="font-weight: 400;"><span></span>Permits enhanced coordination with health insurance. For insureds who select the $250,000 PIP option, the bill will allow for 100% PIP reduction with health coverage that covers injuries related to an auto accident. </li>
<li style="font-weight: 400;"><span></span>Includes a mandatory rate rollback on the PIP line of the auto policy. The rollbacks are:
<ul>
<li style="font-weight: 400;">10% for Unlimited coverage</li>
<li style="font-weight: 400;">20% for $500,000</li>
<li style="font-weight: 400;">35% for $250,000</li>
<li style="font-weight: 400;">45% for $50,000</li>
<li style="font-weight: 400;">and 100% PIP reduction for Medicare or Enhanced opt-outs.</li>
</ul>
</li>
<li style="font-weight: 400;">Freeze PIP rates until 2028</li>
<li style="font-weight: 400;"><span></span>Increases current minimum coverage of residual liability insurance from $20,000/$40,000 to $50,000/$100,000.</li>
<li style="font-weight: 400;"><span></span>Increases the mini-tort provision from $1,000 to $3,000.</li>
<li style="font-weight: 400;"><span></span>Prohibits the use of most non-driving rating factors. Insurers will still be allowed to use credit information and territory as a rating factor.</li>
<li style="font-weight: 400;">Creation of a statutory form by <a href="https://www.michigan.gov/difs/" rel="noopener" target="_blank">Department of Insurance and Financial Services (DIFS)</a> that requires the insured's signature acknowledging coverage level. This is a consumer protection issue since the current no-fault system has been in place for over 40 years and has been advocated for by <a href="https://www.michagent.org/home" rel="noopener" target="_blank">Michigan Association of Insurance Agents</a>.</li>
<li style="font-weight: 400;">Establish an anti-fraud unit within DIFS</li>
<li style="font-weight: 400;"><span>Implement a medical fee schedule for medical services based on Medicare fee schedules</span></li>
<li style="font-weight: 400;"><span>Place limitations on family-provided attendant care services to 56 hour per week</span></li>
</ul>
<p style="font-weight: 400;"> <strong>What's Next?</strong></p>
<p style="font-weight: 400;"> Important to note is the date the new law goes into effect: <strong>July 1, 2020</strong>. We will be your source in the upcoming weeks and months on the changes resulting from no-fault reform and the impact these have Michiganders. </p>
<p style="font-weight: 400;"></p>
<div class="clearfix"></div>
<h2><strong>Will the auto insurance reform bill actually save you money?</strong></h2>
<p><strong><img alt="" src="https://www.tomia247.com/media/uploads/wallet-669458_640.jpg" style="display: block; margin-left: auto; margin-right: auto;" width="400"/><br/></strong></p>
<p style="font-weight: 400;"><strong>MCCA Change</strong>: <strong>Effective July 1, 2019,<span> </span></strong>the MCCA Assessment is increasing $28<span> </span>per vehicle, per year.</p>
<p>The assessment for Antique and Collectible Autos is increasing $5.00 per vehicle,<span> </span>per year.</p>
<p>While this senate bill took an important step towards reforming the outdated and broken Michigan no-fault system, often times bills include loop holes. There are many professionals who believe it may not have the same impact as expected. </p>
<p style="font-weight: 400;">This bill also does not address the issue of collision costs. Have you looked at your most recent collision repairs? With new technology in windshields, bumpers and other areas of the vehicle, the cost for repairs in increasing rapidly.</p>Disability Insurance - How Much Do You Need?2019-05-06T21:06:54+00:002024-03-28T10:11:55+00:00Tyler Bartoshhttps://tomia247.com/blog/author/TBartosh/https://tomia247.com/blog/disability-insurance-awareness-month/<h3>How Much Disability Insurance Do You Need?</h3>
<p>May is Disability Insurance Awareness Month which means this is a great time to begin the conversation of how you can protect your ability to earn an income. One third of workers are concerned about becoming sick or disabled and not being able to work - yet only 20% have disability insurance. <sub>2018 Insurance Barometer Study, Life Happens and LIMRA.</sub></p>
<p>According to the Life Happens survey in 2018, 88% of employed Americans know much more about their favorite TV show than their disability insurance(41%). Often times, individuals don't imagine becoming disabled in their lifetime however, you actually have a 3 in 10 chance of suffering a disability that keeps you out of work for 90 days or longer at some point during your working career.<sup>1</sup> You may think if you don't work in a dangerous profession, that you won't need disability insurance. Keep in mind that 90% of disabilities are caused by illnesses, not accidents.<sup>2</sup></p>
<p>Are you thinking about disability insurance and how you can protect your financial future yet? So where do you start? The first step is determining how much disability insurance you need. You can use a simple worksheet like this:</p>
<p><iframe frameborder="0" height="1567" scrolling="no" src="https://onedrive.live.com/embed?resid=A68573B9B4F90B3B%215387&authkey=%21AAttdfbPpLo6y0o&em=2&wdAllowInteractivity=False&AllowTyping=True&Item='DI%20Budget'!B1%3AE33&wdHideGridlines=True&wdDownloadButton=True&wdInConfigurator=True" width="700"></iframe></p>
<p>Once you've determined what amount you need for disability, reach out to your insurance solution provider to protect your income at 800-686-8664, <a href="mailto:ClientService@TOMIA247.com">ClientService@TOMIA247.com</a> or <a href="https://www.tomia247.com/about/contact-us/" rel="noopener" target="_blank">contact us here</a>!</p>
<p><sup><span>1 The Real Risk of Disability in the United States, Milliman Inc., on behalf of the LIFE Foundation, May 2007</span></sup><br/><sup><span>2 The Council for Disability Awareness, Long-Term Disability Claims Review, 2010</span></sup></p>