Join us at any of the upcoming, free Acrisure compliance webinars!
Click here to download the calendar of upcoming webinars
If you have any questions or need assistance, please reach out to your Gulfshore Insurance Account Manager.
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in employee benefits insurance including group medical, dental, vision, life insurance, short and long term disability, voluntary life, employee assistance programs, wellness programs, individual life insurance, and more. Our insurance and risk management advisors are experts can provide valuable services including benefits plan design and administration, human resources support, funding options, compliance assistance, benefit administration, and enrollment services. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
The Florida Insurance Commissioner has approved a statewide overall workers’ compensation insurance rate decrease for 2023. The rate decrease applies to both new and renewal workers’ compensation insurance policies effective in Florida as of January 1, 2023. This approval reflects an overall average rate decrease of 8.4%. While the state rates play a major part in the determination of premium, changes in a specific company’s payroll and experience modification rate will also impact renewal premiums.
For more information about the filing, read the official release from the Florida Office of Insurance Regulation.
If you have any questions or concerns regarding this information, please contact us. We are here to assist you and happy to answer any questions you have.
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in business insurance including liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, and more. Our insurance and risk management advisors are industry specialists for condominium associations, golf and country clubs, oil and petroleum marketers, construction, landscaping, churches and non-profits, and work comp. Navigating insurance requires an experienced and trusted insurance agent who understands your business risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
Why are insurance carriers continuing to remain under a moratorium for placing new policies?
- While most insurance carriers remain under a moratorium and are not willing to place new insurance policies in Collier and Lee Counties, a few have reopened. Most carriers continue to uncover the extent of hurricane damage which occurred in our area and are not expected to reopen in the immediate future. The driving force for remaining closed in the immediate future hinges on the carrier’s ability to secure and maintain reinsurance for their long-term financial strength.
When is the moratorium expected to end?
- Insurance carriers are waiting until 01/01/23 to negotiate their re-insurance contracts to determine the cost and availability of Property insurance. We are expecting to see the market establish more concise guidelines and adequate rate filings at that time.
Are rates expected to increase due to Hurricane Ian?
- While we have been in a “Hard Market” for several years, analysts are predicting this hard market will continue for some time with higher rates and fewer options due to Re-Insurance costs and limited capacity.
How can buyers who are under contract secure proper insurance at this time?
- Buyers should confirm if the property has been affected by Hurricane Ian. Homes which sustained water damage require the necessary water mitigation steps have been taken and documentation of the condition of the property via inspection.
- While NFIP Flood markets are open, Homeowners and Condo markets continue to be very limited. The few Home and Condo markets which are open may have less desirable terms and conditions with water and mold exclusions. Be sure that that your buyers have reviewed the terms carefully and are aware of any policy limitations.
What if the property sustained damage which the buyer intends to address after closing?
- Homes which experienced damage will need to be insured under a Builder’s Risk policy until the necessary repairs have been completed. Once the work has been completed, the policy can be rewritten to a Homeowners Form including contents.
- Ideally, if the seller addresses the necessary repairs prior to closing, buyers will have a better chance of securing proper Home and Condo coverage.
If the seller files a claim, can the new buyer secure insurance?
- Homes with open claims will not be eligible for a new policy until the claims are closed. Claims must be closed for new home buyers to secure proper coverage.
Is it true that if a homeowner files a Flood Claim, the Flood Insurance on that property goes up?
- The NFIP will not surcharge for one flood loss; however, after a second flood claim of $1,000 or more in a 10-year period, the property is considered a Repetitive Loss Property and will surcharge.
What is the difference between Flood and Wind claims?
- Flood claims are as a result of rising waters and storm surge. Flood adjusters will look at the water mark on the interior and exterior of the home to determine the extent of flooding.
- Wind claims are as a result of hurricane force winds which can cause wind driven rain, damage to the roof and structure where rainwater enters the home.
- Some homeowners have experienced a combination of the two, with homeowners and flood carriers paying their proportionate amount of the claim.
Tips
- While your buyers may be tempted to pay cash and close on a new property without insurance, please keep in mind they may have unrealistic expectations of insurance costs once the market re-opens. Additionally, we are still in hurricane season and will be self-insuring in the event of another storm.
- Obtaining Wind coverage on high valued properties is very limited. Homes which are mitigated with high impact windows or shutters, and properties which are maintained exceptionally well, will have the best results when shopping the market.
- Citizens is open and operating business as usual and will write homes and condos with a replacement value up to $700k.
- Time will tell how Hurricane Ian claims will impact the insurance market long-term. Stay tuned!
Andrea Pelletier, CPRIA, CPIA is Client Advisor and Partner at Gulfshore Insurance specializing in Private Risk Services. Andrea works with successful individuals and their families on creating and customizing package insurance solutions in the areas of luxury homes, car collections, jewelry, fine arts, watercraft, and personal excess liability. Comments and questions are welcome at apelletier@gulfshoreinsurance.com
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in home and homeowners insurance, car and auto insurance, boat and yacht insurance, property insurance, umbrella insurance, valuables insurance for fine art, jewelry, wine, and more. Navigating insurance requires an experienced and trusted insurance agent who understands your high net worth risks and exposures. Gulfshore Insurance services Naples, North Naples, Port Royal, Park Shore, Pelican Bay, The Moorings, Naples Beach, Marco Island, Bonita Springs, Sanibel Island, Captiva, Fort Myers, Sarasota, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
On Oct. 20, 2022, the Equal Employment Opportunity Commission (EEOC) issued a new poster titled “Know Your Rights: Workplace Discrimination is Illegal,” which updates and replaces the previous “EEO is the Law” poster. Under the Title VII of the Civil Rights Act (Title VII) and other laws enforced by the EEOC, employers with 15 or more employees must prominently display the new poster at their work sites.
Background
Laws enforced by the EEOC generally prohibit employment discrimination based on certain protected traits, including race, color, religion, national origin, sex, disability and age. These laws also require employers to display a workplace poster that describes their prohibitions and requirements.
Updates in New Poster
The new “Know Your Rights” poster includes the following differences from the previous version:
- Uses more straightforward language and formatting;
- Notes that harassment is a prohibited form of discrimination;
- Clarifies that sex discrimination includes discrimination based on pregnancy and related conditions, sexual orientation or gender identity;
- Adds a QR code for applicants or employees to link directly to instructions on how to file a charge of workplace discrimination with the EEOC; and
- Provides information about equal pay laws for federal contractors.
Poster Display Requirements
Employers must place the new poster in a conspicuous location in the workplace where notices to applicants and employees are customarily posted. The EEOC also encourages employers to post the notice on their websites. In most cases, electronic posting should be in addition to a physical posting. However, an electronic poster may be the only one if there is no physical workplace, if employees work from home and in similar situations.
Click here to download the poster.
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in employee benefits insurance including group medical, dental, vision, life insurance, short and long term disability, voluntary life, employee assistance programs, wellness programs, individual life insurance, and more. Our insurance and risk management advisors are experts can provide valuable services including benefits plan design and administration, human resources support, funding options, compliance assistance, benefit administration, and enrollment services. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
In 2022, most employers’ health care costs increased. According to recent industry data, current signs are also pointing to significantly higher health care costs in the upcoming year. Employers now face the difficult task of reigning in rising health care costs and keeping employee coverage affordable while trying to remain attractive to current and prospective talent despite their shrinking budgets.
Many employers are worried about controlling rising health care costs and providing employees with affordable and quality care options. This article explores employer expectations regarding health care costs, reasons health care costs are rising and strategies employers are implementing to address increasing costs.
Employers Expect Health Care Costs to Increase
Reports from industry experts seem to agree that employers expect major increases in health care costs in 2023. Data from Willis Towers Watson’s 2022 Best Practices in Healthcare Survey found that U.S. employers’ health care costs are projected to increase 6% next year, compared with an average 5% increase experienced in 2022. Early Mercer survey results suggested that U.S. employers expect their health care costs per employee to rise 5.6% on average in 2023.
Those costs may increase even more if employers fail to take action to curb rising health care costs. If employers fail to make any changes—such as expanding telemedicine options and digital health care resources—employers believe the costs for their largest health care plans will grow by 7%. The International Foundation of Employee Benefit Plans reported that employers anticipate a 7.5% median increase in medical plan costs in 2023.
An analysis from global professional services firm Aon predicted employer health care costs will increase by 6.5% in 2023, with the average costs per employee reaching $13,800. Based on Aon’s analysis, this prediction is below the current inflation figure reported in the consumer price index, but it’s significantly higher than the increase in health care costs employers saw from 2021 to 2022. Additionally, HR and employee benefits consulting firm Buck found employer health care costs in 2023 are projected to increase between 5.8% to 6.9% in its 2022 National Healthcare Trend Survey.
Why Health Care Costs Are Increasing
There are a few reasons health care costs are increasing. While most employers had lower claim costs during the COVID-19 pandemic, medical plan costs are returning to pre-pandemic levels as health care utilization rebounds. Utilization has especially increased for employees dealing with severe chronic diseases and late-stage cancer due to missed or delayed care during the pandemic. Additionally, many employees are struggling with long COVID-19. Even those employees who have recovered from COVID are experiencing cardiovascular and neurological diseases, which is causing employer health care costs to increase.
Inflation is also causing health care costs to rise, and it will likely drive up costs moving forward; however, due to the long-term nature of provider contracts, some employers may not immediately feel the cost increases caused by inflation. In addition, the recent trend of consolidation among hospitals, physician practices and commercial insurers is triggering higher health care prices for private insurance. Other factors contributing to increased health care costs include new technology, novel prescription drugs, specialty drugs and catastrophic claims.
Employer Strategies for Managing Health Care Costs and Improving Affordability
Traditionally, employers have addressed rising health care costs by shifting increased costs onto employees through higher premiums. While some employers are continuing to implement this strategy, most employers do not want benefit choices to interfere with their recruiting efforts due to the state of the labor market. Therefore, employers are using multiple strategies to manage their health care costs while attempting to improve affordability for employees.
These strategies include the following:
- Switching to low-deductible health plans
- Structuring payroll contributions to reduce health care costs for employees
- Employing programs to combat fraud, waste and abuse
- Increasing health care plan budgets
- Contracting directly with high-quality, cost-competitive hospitals and physician networks
- Requiring employees to use cost-effective medical centers or obtain preapproval for scheduled inpatient services
- Offering employees health care navigation and concierge support services
- Evaluating prescription drug costs, particularly for specialty drugs
- Providing telemedicine or virtual care services
- Implementing new benefit programs, such as wellness programs, or using vendors
- Expanding voluntary benefit offerings, such as supplemental health insurance for catastrophic events
- Supporting and effectively managing employees with chronic conditions, long-term illnesses and complex diseases
- Seeking help from insurance brokers to detail organizational health care spending and educate employees on shopping for health care services
Rising health care costs are causing employers to reevaluate health care plan designs and offerings. By gathering data and using it to predict where and when increased costs may occur, employers can determine the best strategies to address growing health care costs.
Summary
Employers of all sizes are looking to offer quality health care benefits in 2023 while focusing on employee affordability and accessibility. This will be difficult as prices increase and employer budgets shrink as a result of the current economic environment. Employers can act now to proactively prepare for anticipated health care price increases and find long-term solutions to mitigate rising costs.
Click here to download the bulletin.
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in employee benefits insurance including group medical, dental, vision, life insurance, short and long term disability, voluntary life, employee assistance programs, wellness programs, individual life insurance, and more. Our insurance and risk management advisors are experts can provide valuable services including benefits plan design and administration, human resources support, funding options, compliance assistance, benefit administration, and enrollment services. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
