Risk & Business

As the young generation of business owners emerge, their use of Robo-Advisors is booming.  The Millenials are very comfortable using algorithmic robots to get advice on just about everything.  Financial advice is now common place. You don't have to look to far to find computer based financial services that business owners can use. But what about insurance and risk management?  Well, the Millenials are demanding that the insurance industry get in the game. They are looking for "Robo-Advisors, to help them learn about insurance and "advise" how to buy the right policies and save money. Basically , they are describing the role of the insurance agent. However the Millenials would rather use Robo-advisors, to learn and then go find an agent to purchase when they are ready. This process is all based on the younger generation's adversion to being sold.  So attention all agents out there, be part of their learning process and be ready when the young business owners come

It is early in the year and already Mother Nature has given us some pretty wild weather. Flooding in the mid-west and east has again put a strain on the National Flood program.  This program backed totally by the federal government is in need of some help. Currently the program is 20 billion in debt and the storms keep happening. In order to fix it and make it sound financially, the rates have to increase and private insurers have to get in the game. In every Federal program politics rule, and having the political will to do the right thing is not in the foreseeable future. The federal government has to realize that private businesses need to get involved to bail out the program.  Homeowners need to realize that rates will have to increase to keep coverage viable. If these two things don't occur, the program will collapse under a mountain of debt. Keep your eye on this one folks. Until next time be careful out there and know your risks. G. Kevin Nemith, President of CNC Insurance