Cox Insurance

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2021: Monitoring Industry Trends

Like seemingly every corner of the world and most other industries, the insurance market has been impacted by the events of this past year. 

Material prices are at an all time high, we have supply chain issues for vehicle parts, new safety protocols that have impacted human interactions at the time of a claim – just to name a few. Things cost more, take more time, and inevitably feel different.  We miss the old days but are embracing the new!

While a lot in life was put on pause or certainly forced to slow down, the threat of a loss never takes a break.

Homeowner’s Insurance

Weather events and construction costs continue to increase

We continue to see an uptick in both the frequency and severity of convective storms. This is having a major impact on our local homeowners market. At a national level, we have seen some huge catastrophes in the past couple of years—from severe weather in Texas and Florida to all the fire devastation in California. The Iowa Derocho just this past August was the costliest thunderstorm in U.S. history.

Weather events with a $1billion price tag have more than doubled this decade compared to last.

There is a tremendous amount of volatility in weather patterns creating uncertainty in the homeowners insurance market as it relates to coverage offerings and pricing outlook. 

On top of this, the construction and real estate markets continue to boom at historic levels. According to the National Association of Home Builders, material prices are up 180% since this time last year. Have we hit the peak? When will it pop? Time will tell…. 

Auto Insurance

Underinsured drivers and auto safety improvements

The auto market is an interesting study in its own right. While auto usage is down significantly due to the pandemic and remote work, the reality is that roads still present their own unique set of challenges.  In our home state of Minnesota, even with less drivers on the road, we saw a 30% increase in fatal accidents in 2020.  We’re on pace to exceed that already in 2021.

Another concern we continue to monitor are uninsured drivers.  1 in 8 drivers does not have insurance.  Once you factor in drivers who are under-insured – 25% of the cars on the road don’t have sufficient coverage. This is fueled by easy to access online providers (i.e. the “name your price” and “15 minutes could save you” companies) and quite frankly a lack of reform at the state level to create minimum requirements that are more inline with today’s cost of living standards.

1 in 4 drivers likely does not have adequate insurance, creating a potentially dangerous situation for all drivers.

What is exciting are the advancements in car safety. All the buzz is around going fully autonomous, but the real difference makers are the advanced safety features (sensors, cameras, crash avoidance, etc) that your every day vehicle now has when you drive it off the lot.  

The increase in safety features is matched by the increased cost to repair.  A basic windshield replacement commonly used to be $400-$500. Today, by the time you get the glass with the sensors in it, install and calibrate it is a $1500 bill. The same logic applies to bumpers, headlamps, etc.

Overall though, auto insurance seems to be much more stable compared to its counterpart on the homeowners side. We anticipate a ton of disruption and innovation here in the next decade. We’re buckling up, pun intended, to push for positive change to a system that has moved at a snails pace for decades.

It’s important to plan now

Insurance is not just a product, it’s a promise. It’s peace of mind. With change, new decisions are needed. Strategies tweaked. Plans get adjusted. We feel fortunate that we get to play a role in protecting the well being of our clients.  In these uncertain times, it is more important than ever to have a well thought out plan.  We think it is wise to invest in your future, by protecting it now. From our entire team, we thank you for the opportunity to serve you and to do this together.

We’re here for you

At Cox Insurance, our number one priority is customer service. Never hesitate to contact your advisor if you have a question about your policy or want advice regarding a claim.

Authored by: Taylor Cox, President

Cox Insurance provides Home, Auto, Liability and Commercial insurance that exceeds expectations. For a personalized quote, please contact us here.

“Top 12 clues a storm-chaser is at your door”

Due to recent hail storms, “storm-chasing” contractors are showing up in affected areas. The Star Tribune recently published an article with heads-up information about what to watch for when hiring a company to repair hail damage.

The top 12 clues to watch for are:

1. “We’re working with your neighbor!”
Storm-chasers win by being first. 

2. They show up faster than humanly possible.
Storm-chasers insist that you need to get your roof fixed quickly.

3.  They convey a sense of urgency.
Storm-chasers insist that you need to get your roof fixed quickly.

4. They’ll offer to nail down some tarps.
They’re not doing you any favors.

5. They want to put a sign in your yard before you’ve signed anything.
They’ll beg and plead to put a sign in your yard.

6. They’ll cover your deductible.
This is illegal, but it happens. Your contractor can’t reimburse you for your insurance deductible.

7. They want you to sign something on the first visit.
They’ll tell you it’s simply a permission slip to inspect your roof, but it’s not.

8. They want you to call your insurance company, now.
Again, this is about creating a sense of urgency and locking you in.

9. Bashing the competition.
Good local contractors know who their competition is, and they view them as colleagues, not enemies. 

10. They won’t give you proof of the damage.
Good contractors will take pictures of storm damage and show it to you.

11. They’ll promise the world.
They’ll tell you they can get your insurance company to pay for new gutters, windows, siding, and all of that other stuff.

12. Their vehicle isn’t local.
Storm chasers won’t drive vehicles lettered up with local contractor information.

Read the full article

Reuben Saltzman. “Top 12 clues a storm-chaser is at your door” Star Tribune, https://www.startribune.com/top-12-clues-a-storm-chaser-is-at-your-door/572214302/. August 25, 2020.

Since 1950, Cox Insurance Associates has provided personal and commercial risk management services as an independent agency. The heart of our business is building genuine relationships with our clients and business partners. We work as a team toward collective goals, inspired by a commitment to provide an outstanding insurance experience.

We are proud to be a third-generation, family-owned business celebrating our 70 year anniversary. Learn more about our core values, read recent news, and meet our outstanding team! 

Navigating Risk Management for Businesses in 2020

We are living in some unique times right now. The global pandemic has created so much uncertainty in almost every aspect of our lives, both personally and professionally. If you are a business owner, how has COVID-19 affected the business that you have worked so hard to build?

These additional stresses certainly have not been fun to navigate. While we won’t be able to provide much advice personally on how to cope during these unique times, from a business perspective we can help entrepreneurs navigate through the increased volatility of running a business during this pandemic. In particular we help business owners navigate the often-confusing world of business insurance and risk management.

Background

For 70 years, Cox Insurance has been a stable force in the community, providing risk management services for individuals, families and businesses. That stability is something we are proud of and the mission has remained the same – provide insurance and service that exceeds expectations.

It’s with that mission in mind that during the past 6 months, Cox Insurance has put an emphasis on providing more focus for business owners in the community. With the added complexity of the pandemic, it’s become more apparent that business owners need help more than ever. Business owners who work tirelessly to run their company are finding less time to work on important aspects of their business like risk management.  It’s during challenging times like this that it’s more important than ever to evaluate all areas of risk or put their business in further jeopardy.

To that point, that’s where customers rely on Cox Insurance and our business advisory approach. By understanding their business on a deep level, we can identify areas of risk and possible solutions. The best part to our approach means our work doesn’t stop there. Our ultimate goal is to continue to work with our customers throughout the year on key touchpoints, thus ensuring their risk doesn’t change much from the program design. It also helps us to identify new threats or changing tolerance from the customer. This proactive approach is something that is often missing in our industry, and something we hope to change. It’s with this approach that customers can then focus on other areas of their business and have trust that this key area of their business is well protected.

How We Can Help

Cox Insurance advisors are available to help any business owner who:

  • Needs help simplifying and/or consolidating a complex risk program.
  • Is experiencing tight cash flow situations and needs to reevaluate their current insurance program to check that their payroll and sales exposures match their new forecast.
  • Is planning to or has made recent capital expenditures like acquiring new businesses or new buildings/equipment.
  • Feels they haven’t been paid attention to through careful stewardship planning, and that their broker “just goes through the motions.”
  • Is in growth mode. Chances are you have outgrown your coverages.
  • Has questions about cyber liability and data protection.
  • Needs a business advisor or strategic resource to help navigate during these unique times.

We encourage anyone who has questions to reach out to our team. Often times we can improve their programs simply by getting together and discussing their needs.

Be Well,

Derek Gruber
Director of Commercial Lines

A message to the Cox community: an update on COVID-19

To our clients + partners:

We hope everyone is doing their best during these unique and unprecedented times. We have been closely monitoring the events over the past few weeks and have taken every precaution to keep our team and building safe.

Our staff is up and running, working remotely with our full capabilities. We’ve suspended visits to our office and are encouraging phone and video conferencing whenever possible. If you need us for anything, we’ll be there for you.

INDUSTRY UPDATES:

Carriers are doing everything they can to assist in easing the hardship. Many companies are offering a billing grace period or waiver of late fees/cancellations for a period of time. It varies by company and circumstance so if you have any concerns, please reach out to us for assistance.

If you have an open claim, please let us know if you have any questions or concerns about how it may be impacted. We anticipate possible delays due to social distancing regulations, impacted businesses, and delays in parts and materials. Urgent and life safety matters will still be handled with the highest priority.

We’re actively receiving our mail and documents, but there could be a slight delay in processing. Any time sensitive material will be sent electronically.

FOR COMMERCIAL CLIENTS:

Because many businesses are limited in operations (or in some cases shut down completely), we have received a lot of inquiries from our Commercial clients. The most common questions relate to Business Income coverage.

Business Income coverage is a type of property insurance. In general, coverage is triggered by “direct physical loss of or damage to property by a covered cause of loss.” A communicable disease (like COVID-19) may not be covered without a physical loss of or damage to property.

We have also received inquiries regarding Civil Authority coverage. The same requirement for “direct physical loss or damage to property caused by a covered cause of loss” applies and COVID-19 may not be covered.

However, you should not allow these assumptions to keep you from taking action and filing a notice of loss. We feel it’s best for the carrier to make an official ruling based on how your policy would respond in these circumstances. If you think you may have a claim, please reach out and we will submit it to the carrier.

During these unique times, there certainly could be a number of ways for a business to manage their coverage and navigate their overall risk management with some proactive strategies. We encourage you to contact us to assess your options.

These are challenging and unchartered times for everyone. Be safe, stay healthy, and know that we are all in this together.

Best,

The Cox Insurance Team

Derek Gruber joins Cox Insurance as Director of Commercial Lines

Cox Insurance is excited to welcome Derek Gruber to the newly-established position of Director of Commercial Lines. He joins Kevin Schroeder (Cox Insurance Partner & Advisor) and the support team to further develop the agency’s commercial insurance division. Derek will be responsible for strategic growth initiatives and will work to enhance the insurance programs the agency offers to businesses in the Twin Cities area. 

Derek comes to Cox Insurance with 18+ years of experience in the industry and has previously worked with a national carrier, a brokerage firm, and most recently a local independent agency. His background and expertise will help improve how the agency delivers customized commercial insurance programs.

“Given his diverse background and skillsets, Derek brings a unique perspective that will help us continue to build for our future. This is a great opportunity for our team to collaborate with our clients and business partners in a new and improved way,” says Taylor Cox, President.

Cox Insurance has an unwavering commitment to remaining an independent insurance agency. The expanded commercial lines division will strengthen the agency’s overall ability to serve a broader client base. 


 

About Cox Insurance

Since 1950, Cox Insurance Associates has provided personal and commercial risk management services as an independent agency. The heart of our business is building genuine relationships with our clients and business partners. We work as a team toward collective goals, inspired by a commitment to provide an outstanding insurance experience.

We are proud to be a third-generation, family-owned business celebrating our 70 year anniversary. Learn more about our core values, read recent news, and meet our outstanding team!