league of american bicyclists 2014 insurance program planning discussion marla peters, sr. vice...
TRANSCRIPT
League of American Bicyclists 2014 Insurance Program Planning
Discussion
Marla Peters, Sr. Vice [email protected]
Rene Waterson, Vice [email protected]
260-672-8800
American Specialty Insurance & Risk Services
December 9, 2013
Goals for Call
Provide Insurance Program Overview • Program Summary and 2013 Results• Factors affecting 2014• 2014 Plans
Receive input from call participants
Program Summary and 2013 Results General Liability (GL) and Participant Accident
(PA) automatically included
594 organizations purchased coverage• 81% bicycle clubs; 19% advocacy organizations
New Structure Implemented in 2013:• Advocacy Organizations (i.e., those with little or no
regular ride activity) Flat premiums apply (GL only for those with no regular rides) Special events (i.e., rides with participation fees) can be covered
for additional premium• Bicycle Clubs
Premium based on per member rates (subject to minimum premium) plus applicable special event premium
• Special Events (i.e., rides with participation fees) Must be scheduled and per participant rates apply (subject
to minimum premium per event)
Program Summary and 2013 Results Cont’d
Optional Coverages # that Purchased• Directors and Officers Liability 140• Bike Refurbishment 29• Nonowned/Hired Auto Liability 15• Excess Liability Limits 11• Optional Participant Accident 3
LCI’s receive General Liability coverage for their individual education activities
Historic Rate Summary (based on bicycle club member rates)
Year Rate Change Min. Premium Change
2003 1.45 77
2004 1.57 8.3% 84 9.1%
2005 1.65 5.1% 91 8.3%
2006 1.69 2.4% 93 2.2%
2007 1.69 Flat 93 Flat
2008 1.49 -11.8% 83 -10.8%
2009 1.49 Flat 83 Flat
2010 1.49 Flat 83 Flat
2011 1.55 4.0% 83 Flat
2012 1.80 16.1% 88 6.0%
2013 2.30 27.7% 123 39.7%
2014 (proposed)
2.67 16.1% 129 4.9%
Historic Claims Summary Roughly 7 General Liability claims per insurance year
(small number of claims with potential to be very large)• 2 claims (1 paid, 1 pending) of roughly $400k from
pedestrians struck during club events in past 7 years Growing number of Participant Accident claims that are
costing more on average over time• 113 claims in 2012 up from 46 in 2008 • Average cost of $1,650 in 2008 up to $2,250 in 2012 • Average loss per club has more than doubled in this
timeframe• 2013 losses are anticipated to be greater in number and
cost We have had no paid Directors and Officers or Employment
Practices claims
Factors Affecting 2014
Large General Liability losses as well as continued increasing Participant Accident losses require an increase in rates and minimum premiums again this year, but a much smaller increase than 2013
Tightening General Liability insurance market conditions for amateur sports associations remain a factor impacting premium increases
2014 Plans Continue current program structure and
limits/benefits. Proposed rates are as follows:Current GL/PA Proposed GL/PA Change
Advocacy Organization – No rides 68 (GL only) 75 (GL only) 10.3%
Advocacy Organization – Minimal rides 133 140 5.3%
Bicycle Club (per member)
First 1,000 members 2.30 2.67 16.1%
Second 1,000 members 2.01 2.32 15.4%
Over 2,000 members 1.72 1.97 14.5%
Minimum Premium per Club 123 129 4.9%
Special Event (per participant)
First 1,000 participants 2.45 2.84 15.9%
Second 1,000 participants 1.94 2.24 15.5%
Each participant over 2,000 1.39 1.61 15.8%
Minimum premium per event 133 140 5.3%
2014 Proposed Rates Cont’d
Current GL/PA Proposed GL/PA Change
Education (optional benefit)
Classroom only – all LCI taught 30 (GL only) 33 (GL only) 10.0%
Classroom only – not all LCI taught 40 (GL only) 44 (GL only) 10.0%
On-bike – all LCI taught 120 126 5.0%
On-bike – not all LCI taught 160 168 5.0%
Bike Refurbishment (optional, if applicable) 60 (GL only) 66 (GL only) 10.0%
Year-Round Office Space 50 (GL only) 55 (GL only) 10.0%
Discussion Items
Program Structure• Thoughts on increasing minimum premiums in
the future to off-set rates?• Does the current coverage and pricing
structure accommodate the needs of bicycle clubs and advocacy organizations?