How to Make Your Own Amica, The FDIC’s insurance program for small businesses, is on the rise and its growing numbers are prompting some companies to go all out to meet the requirements of the program.
But some of those companies are having trouble getting coverage on the marketplace and have been left out of the pool of insureds.
A few weeks ago, an insurance broker and I had the chance to ask some of these insurance brokers how they’re doing and what they expect to see in the marketplace in the coming months.
The response: “As you might imagine, there’s a lot of excitement and demand for coverage.
In fact, the market is in an incredibly high demand right now.
That’s been our focus in the past, and it’s our focus this time around.
It’s been a long time since we’ve had such a robust market, but it’s only going to get stronger.
In terms of what we expect to get in the market, we’ve seen a lot from both our industry and other issuers,” said Brian St. Clair, president and chief executive officer of Cigna.
“Our focus has been on our small business customers and on those customers who are the most vulnerable to the financial challenges of a crisis.
Those are the folks who are really going to be impacted the most.””
We are still focused on small business, but our focus has moved to our consumers and our customers that are more vulnerable.
In other words, our focus is to help our customers, and that includes the uninsured, and the uninsured are the ones we want to help,” he added.
“We have been extremely diligent in getting coverage for our small businesses and our consumers, and I believe we have the largest pool of coverage in the industry, but we’re not there yet,” said Andrew Zimbalist, vice president of the American Institute of Certified Financial Planner.
“If you are a small business owner and you’re facing any sort of crisis, the coverage you have now may not be enough.
If you’re an individual, you may have a little bit of insurance, but you don’t want to be on the uninsured.
And so we want that to improve, but the next steps are really for consumers to understand that we have this very robust marketplace, and they should be confident that we are working hard to make sure that we provide the best possible coverage.”
“You don’t have to be a large employer to have a small plan, but there are a lot more small businesses than large employers that may need a small policy,” added Alan Mazzucchelli, vice chairman and chief operating officer of Anthem.
“We think we’re doing a good job, and we think it’s really important to be very proactive in our business and to be transparent with our customers and in the process of getting them coverage.
I think that’s our mantra and we believe that’s what we’re really striving for in our marketplace.
And, for some small businesses that have no other options, the ability to get the full FDIC coverage can be critical to their ability to survive in a crisis,” he said.
“When we have an insurance policy in the pool, it gives us an opportunity to get our business up and running, to be able to make money, to make investments, to take care of our employees.
We’re working very hard to ensure that our customers have that coverage and we’re going to provide it.”
I asked St. Claire about the question of what to expect in the future.
He said, “The way we look at this, is if we can be as responsive as possible, we can keep our rate structure and be as flexible as possible.
And if we are as responsive, we’re able to give our customers access to the best rate that we can provide.
We think our rate plan is very competitive and that’s really our priority.”
So far, the response has been positive.
The Insurance Institute for Highway Safety, a nonprofit trade group, recently reported that more than 60% of insured drivers had access to at least one FDIC plan.
The other 33% had access only to the insurance offered by the state of New York, and those who had no coverage were not receiving any help at all.
And in some cases, they were getting help only to have their rates drop.
But there’s still a lot that remains to be done.
When we first launched our program in September, we had about 300,000 insured drivers and more than 8.5 million insured small businesses in the program, according to the Insurance Institute.
And of those insured drivers, more than one in four (26%) had at least 1,000 vehicles, including more than 6% of all small businesses.
While that is still far below the level of the industry we were talking about a year ago, it’s still far more than we’ve ever had before.”In terms