< Previous58BEST’S REVIEW • SEPTEMBER 2022 What AM Best Says ($1.3 billion). MPCI rates are closely tied to agricultural commodity futures prices and their implied volatility. Since 2019, commodity prices have risen significantly, driving the increases in the MPCI rates. In addition, the Risk Management Agency (RMA), part of the U.S. Department of Agriculture (USDA), implemented a new hurricane policy endorsement in 2020, with over $1 billion attributable to this new cover in 2021. The Federal Crop Insurance Corporation (FCIC) reinsured 131 types of commodities under its reinsurance agreements for the 2021 crop year. The majority of MPCI premium is attributable to corn, which accounted for $5 billion of premium in 2021. The top four crops (corn, soybeans, wheat, and cotton) account for over $10 billion, or approximately 75%, of total MPCI premium. All other agricultural commodities insured are included in the remaining 25%. Commodity prices of the top four crops each had double-digit increases year– over-year, led by soybeans at 27.6%. Texas led all other states with $1.4 billion of MPCI premium in 2021, about 10% of the entire MPCI program. Iowa and North Dakota both reported over $1 billion, followed by Illinois at $979 million. The Standard Reinsurance Agreement (SRA) assigns each state to one of three groups. Group 1, consisting of Illinois, Indiana, Iowa, Minnesota, and Nebraska, accounted for more than $4.1 billion of premium in 2021. The majority of premium, at $9.2 billion, comes from the 28 states in Group 2, led by Texas, North and South Dakota, California, and Kansas. Group 3 features the remaining 17 states, largely located in the Northeast region, as well as Utah, West Virginia, Wyoming, and Hawaii. These are significantly smaller markets for crop insurance products, with a combined $405 million of MPCI premium in 2021. Revenue products drive premium volume, with more than 70% of total premium attributable to this coverage type in each of the most recent five years. In 2021, $10.6 billion of premium came from revenue policies, 77% of the total. In 2021, private products reached a record $1.3 billion of premium, likely a byproduct of farmers looking for risk transfer solutions after significant hail activity in 2020. BR Best’s Rankings US Multi-Peril Crop – Top 20 Carriers – 2022 Edition Ranked by 2021 multi-peril crop direct premiums written. RankAMB#Company Name DPW ($ millions)Market Share (%) 20202021YoY Change (%)20202021 1018498Chubb INA Grp 1,934 2,643 36.617.917.7 2005658QBE North America Insurance Grp 1,636 2,517 53.915.116.9 3018878Sompo Holdings US Grp 1,919 2,376 23.817.716.0 4018549Zurich Insurance US PC Grp 1,584 2,241 41.514.615.1 5004835Great American P & C Insurance Grp 914 1,144 25.28.47.7 6018171FMH Insurance Grp 654 954 45.96.06.4 7003116Fairfax Financial (USA) Grp 597 867 45.15.55.8 8018540American International Grp 520 780 50.04.85.2 9018733Tokio Marine US PC Grp 527 701 33.14.94.7 10018557XL Reinsurance America Grp 163 179 10.21.51.2 11004233Farm Bureau Property & Casualty Grp 119 164 37.71.11.1 12000302COUNTRY Financial Property Casualty Grp 76 118 55.00.70.8 13003133American Agricultural Insurance Company46 58 27.00.40.4 14018887Church Mutual Insurance Grp 38 43 14.40.30.3 15018543Nodak Insurance Grp 36 41 13.30.30.3 16000088State Farm Grp 24 32 29.60.20.2 17004232United Farm Bureau of Indiana Grp 15 23 54.30.10.2 18002445Rural Mutual Insurance Company4 5 19.30.00.0 19002903Farm Bureau of Idaho Grp 3 3 12.70.00.0 20018783Aspen US Insurance Grp 17 1 -96.90.20.0 Total Multi-Peril Crop10,826 14,888 37.5100.0100.0 Source: AM Best data and research59BEST’S REVIEW • SEPTEMBER 2022 Underwriting & Loss Control Tennis, Anyone? How Insurance Can Be a Major Player in the Game Best’s Underwriting Reports and Best’s Loss Control Reports provide insight into the lines of coverage, exposures and loss control for tennis clubs. The U.S. Open Tennis Championship commenced at Flushing Meadows, New York, on Aug. 29. Over the years, the tournament has been filled with memorable moments, such as Arthur Ashe becoming the first African-American man to win the Open in 1968, the battle between sisters Venus and Serena Williams in 2001 and the “18 minutes of chaos” in the match between John McEnroe and Ilie Nastase in 1979. There also are those who miss tournaments due to injury. Earlier this summer, Rafael Nadal was forced to withdraw from Wimbledon in the semifinals with an abdominal injury. Athletes can get insurance to protect themselves, but there are other ways in which the worlds of tennis and insurance intersect. Tennis centers and clubs also can be at risk for potential lawsuits in the case of employees and players getting injured. In 2014, the Randolph Tennis Center in Morris County, New Jersey, was forced to close temporarily after a partial collapse. The center was awarded $4.9 million to cover the cost of repairs, upgrades and business interruption, according to the Cohen Seglias Pallas Greenhall & Furman law firm. Editors from AM Best’s Underwriting and Loss Control Resources recently examined one such risk, associated with recreational and training tennis centers. The biggest liability is injury, Tom Fontana of World Insurance Associates told AM Best TV. Facilities also need to make sure the insurance company covers the club, the pro and the facility. Best’s Underwriting Reports identifies eight lines of coverage for tennis clubs: Automobile Liability, General Liability: Premises and Operations, Professional Liability, Workers’ Compensation, Crime, Property, Business Interruption, and Inland Marine. Best’s Hazard ranks the risk exposure for the lines of business as Low (1-3) and Medium (4-6). Following are excerpts from the Lines of Coverage reports that have the highest hazard index rankings. Lines of Coverage General Liability: Premises and Operations Premises and operations exposure for tennis clubs will be moderate. Although most injuries will come from slips, trips, and falls, there is the potential for player injuries. Tennis players could run and crash into walls or fences that too closely surround the court. Sponsorship signs hanging on walls surrounding tennis courts could potentially fall on visitors. The exposure will increase if the insured holds overnight tennis camps, tournaments, or other events that draw large crowds. A cyber insurance liability exposure also will exist for most clubs. Also, tennis clubs that sell food and/ or tennis equipment (rackets) will experience a slight General Liability: Products — Completed Operations exposure. Workers’ Compensation Tennis clubs will have a moderate Workers’ Compensation exposure. Most claims will arise from injuries received while maintaining tennis courts. Employees also may have to work at heights while repairing lights. Employees who give tennis instruction may be injured by slips, trips, and falls on the court, from the use of automatic ball machines, or accidentally getting struck by a student wielding a racket. Employees performing administrative tasks could experience repetitive motion injuries as well as eye strain from working at computers. The exposure will be increased for clubs that hold large tournaments or sponsor tennis camps. The exposure will also be increased for clubs with swimming pools or fitness facilities on the premises. Professional Liability Tennis clubs generally will have at least one tennis professional on hand to instruct members and to teach classes to beginners. Many clubs also run summer tennis camps, which Best’s Hazard Index Line of Coverage Best’s Hazard Index General Liability: Premises and Operations5 Workers’ Compensation5 Professional Liability4 Business Interruption460BEST’S REVIEW • SEPTEMBER 2022 Underwriting & Loss Control may have several professionals on hand to teach a larger number of students, often young children. Some facilities operate exclusively as a tennis school with several tennis professionals present at all times. The injuries that will occur from improper instruction will be small, consisting primarily of strains, sprains, and shoulder and arm injuries (e.g., rotator cuff tears and repetitive motion injuries like tennis elbow). Claims of abuse and molestation are possible. Tennis clubs generally will have a minor Professional Liability exposure. Because a gray area exists between General Liability: Premises and Operations and Professional Liability, it is recommended that they be written by the same carrier for the same amounts. Business Interruption The Business Interruption exposure for tennis clubs will be minor. Because of the large size of the facilities that usually will be required to house them, finding a satisfactory temporary or permanent location may be difficult. Therefore, most clubs will probably prefer to rebuild rather than relocate in the event of a total loss. The time it takes to rebuild depends on the size of the insured’s facilities. Large tennis clubs may have several buildings on the premises (e.g., retail shop, restaurant); a loss to more than one structure will extend the time needed to rebuild. There also may be a peak season. Loss Control Some Aspects of On-Site Inspection Related to General Liability: Premises and Operations: • What is the layout of the premises? • Is there adequate aisle space between desks in office areas? • What is the condition of the insured’s floors and floor coverings? • Are the insured’s public restrooms easily accessible to all visitors? • Number of tennis courts, locations (indoors or outdoors). • What surface materials are the insured’s courts made of? • For indoor courts, shock-absorbing padding applied to any support columns and other fixed obstructions, along with walls, that surround courts. • Evacuation routes posted where they can be easily seen by visitors. – Best’s Review Staff Get a fresh perspective on the global insurance industry with AM Best’s comprehensive news and research service. With a new name and a new look, this streamlined resource delivers fast, efficient navigation to the real-time news, research and thought leadership you need to make informed decisions. Best’s News & Research Service was formerly known as Best’s Insurance News & Analysis. Contact customer_support@ambest.com with subscription questions. STAY UP TO SPEED WITH BEST’S NEWS & RESEARCH SERVICE 22.BNRS18D Our Insight, Your Advantage ™ Learn More: sales@ambest.com 333Ȑ ) !/0Ȑ +)ˏȼˏȬȏȅȎȭˏȊȈȏȥȇȇȅȅ For more on this and other risk classifications, visit Best’s Underwriting & Loss Control Resources.61BEST’S REVIEW • SEPTEMBER 2022 Book Store Virtual Selling: How to Build Relationships, Differentiate, and Win Sales Remotely The pandemic and other recent global events have changed the sales landscape and created a greater shift into virtual interaction. Today’s sellers face more challenges than ever and can no longer sell the way they did before the pandemic, said Andy Springer, chief client officer at global sales training company Rain Group and co-author of the book, Virtual Selling: How to Build Relationships, Differentiate, and Win Sales Remotely. The following is an edited transcript of an AM Best TV interview with Springer. How did the idea for the book come about? The landscape in early 2020, particularly from a seller’s perspective, changed almost overnight. In just a few months, many sellers were forced out of their normal face- to-face interactions with buyers and were thrust into what we define as the new normal of virtual selling—moving from a three-dimensional environment into two dimensions. That shift involves a completely different skill set and approach for sellers. But what we saw very quickly from our global client base was that sellers were struggling. What should insurance agents and brokers do to adapt and win more sales via virtual selling? Sellers in the insurance space were thrust onto a screen. In some cases, they’ve never met the people with which they’re engaging and building business. That loss of dimension needs to be taken into account in terms of making that human connection. How do we do that on a screen instead of in person? How do we engage and evolve a conversation in a way that keeps people wanting to stay connected? And then, how do we progress the relationship in this virtual world so we’re able to realize a successful outcome for the buyer and they get what they want, solve their problems, realize their objectives and make the purchase? Everything I did before may now have to change, and I may need to develop new skills. So it’s having that awareness, understanding and openness to learning, and then providing the platform sellers need to build successful virtual selling interactions. How can producers lead successful virtual sales conversations? The four most important areas of virtual selling are connect, engage, collaborate and influence. Many sellers are going to miss that time between the lobby meet-and- greet and the casual chatter in the conference room that eases them into the business conversation. Sellers now need to make a purposeful effort to work rapport building and casual conversation into their agendas. And with virtual, you often get less time so you need to create more impact. You need to plan for it and have your questions ready to make that human connection. BR —Lori Chordas Author: Pandemic Has Changed How Agents and Brokers Sell Rain Group’s Andy Springer said buyers prefer the digital landscape because they can control that environment. Go to Amazon to find these and other books. Send us your book recommendations at bestreviewcomment@ambest.com. AM Best Business Trilogy AM Best details the history of AM Best, the history of credit rating agencies, and the life of Alfred M. Best. The Company—A History of AM Best The Industry—A History of Credit Rating Agencies The Man—A Biography of Alfred M. Best T h e AM B e s t B u s i n e s s Tr i l o g y The Industry The Company The Man Industry Theee A History of the Credit Rating Agencies AM B est T h e A M B e s t B u s i n e s s T r i l o g y The Industry The Company The Man AM B est A History of AM Best Company Theeee T h e A M B e s t B u s i n e s s T r i l o g y The Industry The Company The Man AM B est A Biography of Alfred M. Best Man Theee AM Best TV Visit www.bestreview.com to watch the interview with Andy Springer. Lori Chordas is a senior associate editor. She can be reached at lori.chordas@ambest.com.62BEST’S REVIEW • SEPTEMBER 2022 App Store Self-Management App The insurance industry says it wants to empower people to proactively manage their insurance and risk—and one company says it’s found a way to help households organize and optimize their insurance needs all in one space. Marble, a company that provides a platform for people to self-manage their insurance, now has an app that also allows households to earn rewards such as gift cards or cryptocurrencies. Best’s Review discussed the app with Adi Sundar, chief technical officer, Marble. Following is an edited transcript of an AM Best TV interview with Sundar. What was the inspiration for the app? In the last five to 10 years you’ve seen a lot of innovation in the fintech space, a lot of really good products that have made investing a lot easier. But that hasn’t really been done in the insurance space. It’s been a lot of innovation and distribution but not a lot in actually organizing and building tools to help consumers. So once we realized that we knew that was sort of where we wanted to go. We started off in 2020 building a web app. But then once we built the mobile app we really were inspired by a lot of our users telling us they wanted to be able to see all their insurance policies, all the coverage details, the payment details, everything in one place, in one app. Does providing that all-in-one insurance rewards platform make it user-friendly? The reason people stay and why we have some of the best retention numbers in the industry is because we think it makes it so much easier to have all your documents, all your information, all your coverage details in one place. How does it provide a secure service so that people can protect their households and what they love, particularly when there is a catastrophe? We’ve sort of put a lot of these terms in layman’s terms. Insurance is a very dense and sometimes a hard-to- understand financial product that you often have, even though it’s required by law to have it. If you have a mortgage or obviously if you drive, many people don’t really understand what is and is not covered. Could you elaborate on how the app helps take control of issues using one account and how it helps people shop for lower rates using the spam-stopping tools? We allow you to come on to the platform whenever and not just when you’re shopping at your insurance policies by giving us either your credentials or uploading your declarations page. And then we save that securely in our back end and display that to you and you can shop whenever you’re ready. BR —Tom Davis App Helps Empower Households to Manage Insurance, Risk Marble provides a platform for people to earn rewards for protecting their property. BEST’S CREDIT RATINGS MOBILE APP Instant Access to Best’s Financial Strength Ratings 22.MK132D Our Insight, Your Advantage ™ Learn More: www.ambest.com/mobileapp www.ambest.com • (908) 439-2200 AM Best TV Visit www.bestreview.com to watch the interview with Adi Sundar. Tom Davis is managing editor. He can be reached at tom.davis@ ambest.com.STAY AHEAD OF THE CURVE Best’s State Rate Filings ® helps you keep up with US P/C program innovations, find out which competitors are entering which markets, and create targeted product development strategies. 22.BSRF005D Our Insight, Your Advantage ™ Learn More: sales@ambest.com www.ambest.com s (908) 439-220064BEST’S REVIEW • SEPTEMBER 2022 Trending: Best’s News Trending: Best’s Review 1. Top Global Insurance Brokers - 2022 Edition 2. Standing the Test of Time - 2022 Edition 3. Stormy Weather: In Florida, Property Claims Face Litigation Backlog 4. World’s Largest Insurance Companies - 2022 Edition 5. AM Best: US Medical Professional Liability Faces Headwinds as Outlook Is Negative Trending: BestWire $ 1. Best’s Rankings: Progressive Surpasses State Farm to Become Largest US Total Auto Writer in 2021 2. Field of Nine Candidates Vying for California Insurance Commissioner Nod 3. DeSantis Signs Florida Insurance Reforms, but Concern Remains for Hurricane Season 4. Florida House OKs Property Insurance Bill, Sends It to Governor’s Desk 5. Progressive Posts $542.9M Second-Quarter Net Loss on Property Goodwill Impairment Trending: AM Best Webinars 1. How Insurers Are Countering Climate Change by Building Resiliency 2. How Layered Protection Supports Insurance Identity Fraud Management Trending: AM Best TV - News Coverage 1. Vlogging, Work Pressures Accelerate Potential for Distracted-Driving Accidents 2. Aon’s Bowen: La Nina Conditions Could Create Another Above-Average Hurricane Season in 2022 3. Travelers’ Ives: New Hires at Greater Risk of Workplace Injury 4. Author: When Integrating Technology, Companies Risk Becoming Tech-Shackled 5. Federal Reserve Issues Largest Rate Hike in Nearly Three Decades Climate Change Top Content Includes Top Global Brokers, Standing the Test of Time and Other AM Best Rankings Trending content also includes coverage of the Florida property market and Progressive’s second-quarter net loss. These were the top trending items from May 23-July 22, 2022. Features, news articles and videos were based on page views. Webinars were based on webinar attendance. The above content can be viewed on demand at www.bestreview.com or by visiting AM Best’s home page at www.ambest.com. $ Payment or subscription required. Go to www.ambest.com/advertising to learn more about how to advertise in Best’s Review, BestWire, AM Best Webinars and AM Best TV. Global Brokers Auto Insurance Distracted Driving65BEST’S REVIEW • SEPTEMBER 2022 Trending: Best’s Research Trending: Best’s Special Reports 1. Best’s Impairment Rate and Rating Transition Study – 1977 to 2021 $ 2. First Look: Three-Month 2022 US Property/Casualty Financial Results $ 3. First Look: Three-Month 2022 US Life/Annuity Financial Results $ 4. Mortality Risk Worsening Due to COVID-19 $ 5. Favorable Hedge Fund Returns Lead to Book Value Increases for Insurers $ Trending: Best’s Market Segment Reports 1. US Cyber: The Hardest of the Property/Casualty Markets $ 2. Market Segment Outlook: Japan Life Insurance 3. Market Segment Outlook: Mexico Insurance 4. Kazakhstan Insurance: Business Lines Demonstrate Resilience and Growth as Economy Recovers 5. Market Segment Outlook: Peru Insurance Trending: Best’s Commentary 1. Despite New Reform Law, Florida Property Insurers to Face Continued Financial Pressures $ 2. Market Preparedness for IFRS 17 in the MENA Region Varies 3. Embedded Insurance Gradually Gains Traction 4. Spike in Pandemic-Related Claims for Taiwan’s Non-Life Segment 5. Pandemic Spurs Innovation Initiatives Among Caribbean Insurers Trending: AM Best TV - Research Coverage 1. AM Best’s Briefing - The Florida Property Market in Flux 2. AM Best’s Briefing - Cyber: Increasing Demand, Skyrocketing Prices, Accelerating Risks. How Do Insurers React? 3. AM Best: Mortality Risk Will Continue to Be Fueled by Pandemic 4. AM Best’s Briefing - Ratings Perspective on Non-Catastrophe ILS 5. AM Best: Vertical Integration Growth Continues in US Health Care Industry Trending Research Includes Reports on Mortality Risk, the US Cyber Market and Florida Property Insurers Other trending research covers reports on hedge funds, Japan’s life market and embedded insurance. These were the top trending research and commentary reports from June 23-Aug. 4, 2022. $ Payment or subscription required. Best’s News & Research Service subscribers can download PDF copies of all Best’s Special Reports, Best’s Commentaries and Best’s Market Segment Reports along with supporting spreadsheet data at www.ambest.com. Florida Property Market Cyber Impairment66BEST’S REVIEW • SEPTEMBER 2022 AM Best Webinars For details or to register for webinars, go to http://www.ambest.com/conferences/webinars.asp View These and Other AM Best Webinars • How Insurers Are Countering Climate Change by Building Transparency • Rating Perspective on Non-Catastrophe ILS BR Streaming Live Inside Today’s Surplus Lines Market Apanel of industry leaders in the surplus lines sector of the U.S. insurance market will review the market as well as highlights of a new report on that sector. This complimentary AM Best Webinar is co-sponsored by the WSIA Education Foundation and Lexington Insurance Co. Thursday, Sept. 8, 11:30 a.m. ET. On Demand AM Best’s Briefing – Captives: Stepping in Amidst Capacity and Pricing Challenges AM Best and industry experts discuss the current state of the captive market, delving into such issues as capacity constraints in the marketplace, hardening market conditions, increased social and economic inflation, and the innovative solutions various types of captives can provide. Moderator John Weber, senior associate editor, AM BestTV, is joined by Andrew Baillie, program director, global insurance, AES Corp.; Colin Donovan, president, STICO Mutual Insurance Co., RRG; Nancy Gray, regional managing director, Americas, Aon; and Dan Teclaw, associate director, AM Best. Webinar Highlights What Insurers Need to Know About Next-Gen Cyber Threats Cyberrisk continues to evolve as scams, ransomware and phishing exploits become more sophisticated, targeting new areas of vulnerability. Covering these exposures means better understanding of the threats and the insured. Experts in (re)insurance and digital forensics explore emerging cyberrisks and what insurers must do to address them. This complimentary AM Best Webinar was sponsored by Munich Re. Dishing on Data: Advice From Data Scientists on How to Leverage Traditional and Nontraditional Data Sources Apanel of industry experts examines the current data landscape, explores new data sources and discusses how to use existing data sources in new ways. The conversation includes such topics as advances in entity resolution, attributes and algorithm selection. This complimentary AM Best Webinar was sponsored by LexisNexis Risk Solutions. How Next-Gen Telematics and Vehicle Build Data Are Driving Better Risk Assessment for Auto Insurers Panelists discuss how telematics data from connected vehicles and vehicle build information from advanced driver-assistance systems can work together to provide more power to predict driving risk. This complimentary AM Best Webinar was sponsored by LexisNexis Risk Solutions. Panel to Discuss the State of the Surplus Lines Sector Professionals also examine the captive insurance market as well as explore emerging cyberrisks and telematics. To Read the Magazine Online Go to www.bestreview.com. On Social Media Go to @AMBestCo on Twitter, follow AM Best Information Services on LinkedIn and on YouTube. For information about how to follow AM Best on social media, go to www.ambest.com/socialmedia. Best’s Review delivers a comprehensive package of property/casualty and life/health insurance industry news, trends and analysis monthly. Find us on the internet at www.bestreview.com. The latest edition of Best’s Guide to Understanding the Insurance Industry is available on Amazon.GET THE BEST PERSPECTIVE FOR NAVIGATING RISK Best’s Financial Strength Ratings • Best’s Issuer Credit Ratings Best’s Issue Credit Ratings • Best’s Rating Evaluation Service Best’s Rating Assessment Service • Best’s Preliminary Credit Assessment Best’s Performance Assessment for Delegated Underwriting Authority Enterprises Our Insight, Your Advantage ™ Learn More: www.ambest.com (908) 439-2200 22.MK132ENext >