Industry News

To assist Californians displaced by the current and recent wildfires throughout the state, Insurance Commissioner Ricardo Lara issued a notice to all California property and casualty insurance companies urging them to cover additional living expenses (ALE) for those policyholders who remain under mandatory evacuation.

Mississippi Insurance Commissioner Mike Chaney advises consumers to purchase masks, hand sanitizer, and disinfectants and add them to their “Go Bag” in case they must evacuate because of a storm. A Go Bag’s contents should include cash (if the power goes out, credit cards won't work). Consumers should keep cash on hand for replenishing supplies. Medications also need to be packed because pharmacies might be closed, and hospitals could be overwhelmed.

A battery-powered radio will be useful for getting news and information if the electricity is out and cell towers are down. Every family member and pet requires a gallon of water per day if tap water becomes unsafe to drink. Chaney adds that consumers should include a copy of their insurance policies so they can quickly file a claim once the danger has passed. Consumers should review and be familiar with their insurance coverage. Other important documents include Social Security cards, passports, birth certificates, and driver’s licenses.

As delays continue to plague the process, policymakers are still negotiating over what to include in the next coronavirus relief package, which is likely to be the last major coronavirus law passed before the presidential election. PIA National continues to support the creation of a Recovery Fund that will enable small businesses to receive the relief they need to stay afloat and keep their workers employed. PIA National is also working on other vital issues that we believe need to be addressed in pending legislation. -more-

Google is allowing employees to work from home through next summer as it braces for longer-term effects of COVID-19 on the workplace and beyond. “To give employees the ability to plan ahead, we’ll be extending our global voluntary work from home option through June 30, 2021 for roles that don’t need to be in the office,” wrote Google CEO Sundar Pichai in a memo obtained by CNN Business. “I hope this will offer the flexibility you need to balance work with taking care of yourselves and your loved ones over the next 12 months.”

Observers say treating remote working situations as a temporary disruption to an organization now may need rethinking.

Many small business owners may not think they need cyber liability coverage, but small businesses are extremely vulnerable to security threats. And that’s why PIA members can sell PIA cyber insurance to their clients!

PIA and ABA Insurance Services have worked with Great American E&S Insurance Company (rated A+ by A.M. Best) to create a cyber insurance program that responds to the most common threats facing small and mid-sized businesses.

The PIA enhanced cyber insurance policy covers both first- and third-party loss for the most common cyber risks such as social engineering, funds transfer fraud, ransomware, network interruption, data breach, network security, and media liability. In addition to the seven coverage parts, PIA members’ clients are provided with special PIA enhancements and reduced rates compared to Great American’s standard program for social engineering coverage.

PIA members who sell the PIA cyber insurance receive 12.5% in sales commission.

Agents are able to purchase the same PIA cyber insurance for their agency for a significantly reduced rate through their local PIA affiliate producers.

Getting started is easy. Protect your clients today.

On June 3, the U.S. Senate passed H.R. 7010, the Paycheck Protection Program Flexibility Act, by unanimous consent. The bill extends the window for businesses to be able to spend the funds loaned under the program. The House passed this bill on May 28^th. It was signed into law by the president.

The legislation allows businesses that have received Paycheck Protection Program (PPP) loans to spend a smaller percentage of the money, 60 percent instead of the current 75 percent, on payroll and other qualifying expenses and still maintain forgiveness eligibility.

PIA National had urged Congress to repeal the PPP’s payroll requirement altogether, a move that would have provided small businesses with maximum flexibility as they struggle to stay solvent during this difficult time. The bill does give businesses some new flexibility by allocating more time for them to use their PPP funds—24 weeks instead of eight—and extending the deadline for rehiring workers from June 30 to the end of this year.

READ: S&P Analysis: The Paycheck Protection Program Impact On Jobs: (More) Help Wanted

PIA National will continue to work to improve the PPP in future legislation considered by Congress.

A Kaiser Family Foundation poll released on May 27 found that 48 percent of Americans said they or a family member has skipped or delayed medical care because of the pandemic, and 11 percent of them said the person’s condition worsened as a result of the delayed care. Since March, hospitals, health systems, and private practices dramatically reduced inpatient nonemergency services to prepare for an influx of COVID-19 patients. The poll also found that about 3 in 10 adults have had trouble paying household expenses.

According to the poll, nearly 7 in 10 of those who had skipped seeing a medical professional expect to get care in the next three months. Despite a significant number of adults saying they delayed care, 86 percent of adults said their physical health has “stayed about the same” since the onset of the outbreak in the United States. Nearly 40 percent of Americans, however, said stress related to the coronavirus has negatively affected their mental health.

Nearly 1 in 4 adults said they or a family member in the next year will likely turn to Medicaid, the federal-state health insurance program for low-income residents.

As the global pandemic of COVID-19 continues to affect the way we do business, PIA is highlighting specific programs that may be useful to you right now. We hope this is helpful.

Why care about this now? During this pandemic, your clients are finding themselves at home working remotely. Computer hackers can use this time to deploy aggressive ransomware attacks, and sophisticated social engineering scams to try and trick them into divulging sensitive information, so it is important that you educate your clients and protect them. As a PIA member, you can offer cyber liability insurance that responds to the most common threats facing small and medium-sized businesses.

What is it? PIA and ABA Insurance Services (ABAIS) have worked with Great American E&S Insurance Company (rated A+ by A.M. Best) to create a cyber insurance program tailor-made for small and mid-sized businesses. The PIA enhanced cyber insurance policy covers both first- and third-party loss for the most common cyber risks such as:

• Social engineering

• Funds transfer fraud
• Ransomware/extortion
• Network interruption
• Data breach
• Network security
• Media liability

In addition to the seven coverage parts, PIA members’ clients are provided with special PIA enhancements and reduced rates compared to ABAIS’s standard program for social engineering coverage.

PIA members who sell the PIA cyber insurance receive 12.5% in sales commission.

If you’re interested in purchasing cyber insurance for your agency, you can purchase the same PIA cyber insurance for a significantly reduced rate through your local PIA affiliate producers.

The insurance industry largely sidestepped the economic onslaught of the coronavirus outbreak, losing 4,400 jobs in April as the pandemic ballooned the nation’s unemployment rate to 14.7 percent, according to the U.S. Department of Labor’s Bureau of Labor Statistics (BLS). The April national unemployment rate represents the largest one-month jump since records began in 1948, the BLS said.

However, the industry-wide drop in the insurance industry was much lower than that seen in other sectors of the economy, representing a small proportion, about 0.16 percent, of the 2,813,100 workers employed in the insurance industry.

Meanwhile, BLS released figures for employment at the nation’s insurance agencies and brokerages in March 2020 over February 2020, reporting they were up 0.20 percent with 852,400 jobs. Employment within the direct property/casualty insurers sector was flat.

As stay-at-home measures were introduced in response to the COVID-19 pandemic, several scams and cybersecurity risks emerged as more people began spending more time on digital devices. The National Association of Insurance Commissioners (NAIC) notes that cyber criminals are targeting companies and individuals with scams involving vaccines and treatment, shopping, charities, phishing and malware, apps, investments, and vulnerable populations.

READ: Alert Clients to These COVID-19 Scams

Like many regulators in recent weeks, the Utah Insurance Department has been alerting consumers to various COVID-19 related scams, including fraud aimed at Americans’ economic stimulus dollars. Utah insurance regulators also have been concerned with COVID-19 fraud aimed at seniors. To that end, the Utah Insurance Department recently showcased tips from the Coalition Against Insurance Fraud, such as never responding to robocalls, unknown texts, emails, or door-to-door solicitors; avoiding “free” COVID-19 tests, vaccines, supplies, or treatments; and verifying any requests for Medicare or Medicaid information before responding