risk management credit changes - independent agent · 2018-05-19 · insured/applicant will qualify...

General Public Release

Risk Management Credit ChangesAnnette Ardler, Richard Lund, and Jim Hanley (in spirit)



The information contained herein is CONFIDENTIAL and

PROPRIETARY INFORMATION of Swiss Re Corporate Solutions. This

document is intended for the exclusive use of authorized individuals

as Program Managers of the property and casualty insurance agents'

errors and omissions program. No one may share or disseminate any

information contained herein without the express written consent of

Swiss Re Corporate Solutions.

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Table of Contents / Agenda

• New Filing Wording

• Staff Attendance

• Stakeholders

• Grandfathering

• New Curriculum – E&O 101, 201, 301

• Credit Change Highlights

• Questions???


New Filing Wording

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Effective January 1, 2020


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I. Apply the following credits/debits in a multiplicative manner to the developed premium:

1. Risk Management Credit. Apply a credit of 10% for attendance at a Risk Management Seminar

approved by Westport Insurance Corporation. To qualify for the Risk Management Credit the following

requirements must be met:

a. The Insured/Applicant must be a member of the Risk Purchasing Group.

b. The Seminar may be live or on-line and must be a minimum of three (3) hours.

c. The requirements for Risk Management Seminar attendance are:

Insured Agency

Staff Size

Position in Insured Agency Total Attendees

Required

1 – 4 Active Agency Principal, Owner, Partner, or Officer 1

5 – 11 1 - Active Agency Principal, Owner, Partner, or Officer

And any combination of Producers or CSR's

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12+ 1 - Active Agency Principal, Owner, Partner, or Officer

And any combination of Active Agency Principal, Owner,

Partner, Officer, Operations Manager, Producer, or CSR's

25% of staff

However, no more than a

max of 15 attendees.

*Active Agency Principal, Owner, Partner, or Officer is defined as participating in daily operations of the agency;

owners who are investors or have no active participation of the agency are not included.


a. In lieu of attendance in a Risk Management Seminar, Insured/Applicant may complete a written exam

approved by Westport Insurance Corporation, and answer at least 70% correctly.

b. The credit is applicable for two (2) consecutive policy terms.

c. The Insured may qualify for credit by attending another seminar during the second year of the

discounted term and prior to the policy period expiration date.

d. For the purposes of the Risk Management Credit, the producer for the risk purchasing group will

maintain verification as part of the Insured/Applicant's policy file.

e. If 50% or more of the staff attend the risk management seminar or complete the written exam, the

Insured/Applicant will qualify for an additional 5% credit.

f. For agencies who qualify for the Risk Management Credit, an additional 5% credit will apply based

upon receipt and review of agency coverage checklists.

g. For agencies who qualify for the Risk Management Credit, an additional 5% credit will apply if the

Insured/Applicant completes and implements the Critical and Urgent Improvements from a

voluntary website Operational Efficiency Review. The credit is valid for four (4) consecutive policy

terms (not to exceed a total of 48 total consecutive months). The credit is applied at the first policy

year following completion of the audit.

h. The maximum total Risk Management Credit is 20%.

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Agency Staff Size Total RequiredAttendees

1 – 4 1

5 – 11 3

12+ 25%Max of 15 attendees

Staff Attendance

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Agency Staff Size Total Required Attendees

1 1

2 – 7 2

8 – 20 4

21 – 50 6

51+ 10

Current FilingNew Filing


Stakeholders

• State Association– Program Managers– Education Directors

• Instructors

• IIABA

• Swiss Re

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• Program Managers

– Verifying eligibility every 2 years rather than 3 years

– Communicate new qualifications to your members

– Tracking qualifications/verification to keep in your file

– Agency Management System

– Implementation/Grandfathering Dates

– May have to hold January 2020 Auto Renewal Quotes until October 2019

– EOPC 2019 – further discussion on changes

– Conference Call – September 2019

State Association

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• Education Directors

– Swiss Re/IIABA presentation at 2018 Education Convocation

– Class outlines to file for CE credit in your state

– Update information on association website

– Review association marketing materials; create new materials (if needed)

– Revise class schedules (3 hours v. 6 hours)

– Conference call with Swiss Re/IIABA 1st Quarter 2019

State Association (continued)

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• Conference call with instructors September 2018

• FAQ’s to help explain changes

• Updated Teaching Materials – access via State Association and E&O Happens website

• Invite their input on updates to Meeting the Challenge of Change modules

• Consult for input on E&O 101, 201, 301 Curriculums

• Conference call with instructors 2nd Quarter 2019

Instructors

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• Develop test administration for exam

• Review marketing materials for updates

• E&O Happens – update website

• Create class outlines (with Swiss Re) for use by Education Directors

• Meeting the Challenge of Change – review modules for content updates

• Reviewing PowerPoints for updates

• New Curriculums for E&O 101, 201 and 301

IIABA

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• Rate Filings

• Policy Decisions screen updates

• Risk Management Guide (prints with policy) – revise wording

• Review marketing materials; create new ones if needed

• Policy Decisions Manual – potential update with new screen shots

• Application question – under review

• Claims Coding Review to include class recommendations

• UW Standards – review for updates

• Swiss Re Audits – work with Jim Burke for any changes

• New Curriculums for E&O 101, 201 and 301

Swiss Re

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Grandfathering

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• Qualified & Currently Has Credit prior to January 1, 2020

– will continue on the 3 year path until needs to requalify; then new filing rules will apply

– claims activity could jeopardize credit

• Qualifies for Credit January 1, 2020 and after

– new rating rules will apply

How will it work?

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New Curriculum –E&O 101, 201, 301

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• Using current modules, creating a Beginner (101), Advanced (201) and Experienced (301) recommended curriculums

• State Associations can use them to plan their education calendar

• Will help members identify classes within their knowledge level

• Way to tailor risk management education to your members!

E&O 101, 201 and 301

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Credit Change Highlights

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• Reducing from 3 years to 2 years

• Reducing from 6 hours to 3 hours

• Simplify who needs to attend

• Define “Owner/Officer/Partner”

• Not lost due to claim activity

• Up to additional 10% credit can be earned for:

– Coverage Checklists = 5%

– 50%+ staff attendance = 5%

– Voluntary Website Audit = 5%

• New option – Written Exam in lieu of class/seminar/webinar attendance

Highlights

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Questions???

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Legal notice

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©2018 Swiss Re. All rights reserved. You are not permitted to create any modifications or derivative works of this presentation or to use it for commercial or other public purposes without the prior written permission of Swiss Re.

The information and opinions contained in the presentation are provided as at the date of the presentation and are subject to change without notice. Although the information used was taken from reliable sources, Swiss Re does not accept any responsibility for the accuracy or comprehensiveness of the details given. All liability for the accuracy and completeness thereof or for any damage or loss resulting from the use of the information contained in this presentation is expressly excluded. Under no circumstances shall Swiss Re or its Group companies be liable for any financial or consequential loss relating to this presentation.

risk management credit changes - independent agent · 2018-05-19 · insured/applicant will qualify...

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