Non-competes

Those on the agency side of the insurance business may want to take a look at an interesting article in Rough Notes May 2009 edition on page 26 titled: “Implementing Non-Compete Clauses.”

Scot Dickerson

Money in the bank

If you get laid off between 9/08 and 12/09 there is a good chance the government will subsidize your heath (Cobra) insurance costs for 65% of the normal charge, for up to 9 months, if you don’t piggy-back on your spouses coverage and, as a family, make less than $250k adjusted gross income ($125k for an individual).

Kaiser Foundation estimates an average savings of $6200 over 9 months.

On another note... Watson Wyatt Consultants says most employer cost-cutting actions have peaked, and that most are planning no further hiring freezes, restructuring changes, layoffs or salary freezes.

No particular industries were mentioned, so I’m assuming the best for ours!

Harvey Dorland

Soft Market?

Based on a recent survey conducted by RIMS Survey, commercial risk buyers saw a soft market in the first quarter, although signs point to the market beginning to harden. Despite economic turmoil, most buyers found commercial insurance premiums flat or down slightly for most North American businesses. Industry experts believe the market will continue to be firm, meaning that rates would decrease at a lesser extent than they have been. In particular the lines of directors and office liability, errors and omissions and also fidelity bonds have seen some substantial hardening.

I’ve heard from some recruiters within NIRA that they are seeing projects specifically related to this projected hardening of the market.

Scot Dickerson

Money in the bank

Historically, the insurance industry hires in any market, albeit in down periods there is a slowdown in terms of quantity.

During recessionary times the bread & butter disciples of underwriting, claims, and actuarial, have a tendency to be very strong and in demand, and there has been some pretty steady growth in product management and IT.

Key positions such as producers in all disciplines are also in high demand.

As a side note... kind of interesting in that traditionally insurance stocks outperform the Dow.

Not lately – in 2008 they fell by 47% compared to the Dows 33.8%.

Money in the bank

Got a bad boss?

Business Week says... be patient, as the clock is probably ticking on him or her.

I agree.

I’ve run into situations every year or two where all of a sudden 3, 4, or 5 people want me to find them a new position because of this “bad boss”.

While it’s nice to have a number of new candidates, this is certainly the wrong reason.

I tell them to be patient - and in the meantime I’ll try to unload this person onto one of my “bad clients”.

Frequently works, and I’ve got a number of x-candidates who will always be grateful.

Money in the bank

Just read a pretty lengthy Forbes article from their investment team.

Tenor in a nutshell was that when mortgage rates drop to 4.5% and stay there, or lower, good things will happen.

It puts dollars in everyone’s pocket immediately – “a stimulus plan that actually works immediately”.

It creates a frenzy of refinancing, which gets rid of the majority of the toxic assets on lenders balance sheets – allowing them to get back into giving credit again.

Helps dry-up the large volume of foreclosures, as people will be buying again.

Sounds like a plan!

Harvey Dorland

Money in the bank

Kind of interesting...

According to several recent studies, we would rather make $100k if our neighbors also make $100k, than we would $200k if our neighbors make $300k.

Huh??....

I’d move to a $200k neighborly area and take the $200k if it seemed to be that much of a problem!

National and regional independent agent P&C carriers wrote $800M less premium in 2007 (year 2008, don’t know) versus $5B and $4B increases in 2006/2005.

You’d think that as a result 2008 search positions would have been correspondingly fewer than the previous 3 years, but I didn’t notice it until probably 10/08.

It’s probably 40% quieter so far this year, but the first quarter has tended to be that way for the past 6 years or so.

Hope it’s just a first quarter trend!

Harvey Dorland