RSA S WATER DAMAGE COVERAGE NOVEMBER 2015.

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1 RSA S WATER DAMAGE COVERAGE NOVEMBER 2015.

2 AGENDA Introduction & Expectations Course Aim and Learning Objectives RSA s Waterproof Coverage Endorsement. Selling RSA s Waterproof Coverage Processing RSA s Waterproof coverage in WebBusiness Best Practices for Water Mitigation End Remarks 2

3 COURSE AIM AND LEARNING OBJECTIVES

4 COURSE AIM This session has been created to provide you the independent broker with an info session/course on RSA s new water damage product. The course will provide you with a general understanding of RSA s Water Damage products, while also providing you with best practices to align it with your customers needs, and enter it into your respected quoting tools and RSA s WebBusiness tool. 4

5 OBJECTIVES After todays session you will be able to: Describe RSA s Waterproof Coverage Endorsement. Explain the features and benefits of RSA s Waterproof Coverage Endorsement. Employ best practices for adding Waterproof coverage to Vendor Quote Tools and RSA s business tool, WebBusiness Identify some best practices for flood, sewer back-up and water damage mitigation. 5

6 RSA S WATERPROOF COVERAGE ENDORSEMENT

7 Is the weather getting better or worse? 7

CLIMATE CHANGE REALITY Over the past 60 years, average temperatures in Canada have increased by more than 1.3 C about twice the global average due to global warming.

8 CLIMATE CHANGE REALITY Over the past 60 years, average temperatures in Canada have increased by more than 1.3 C about twice the global average due to global warming. There is more carbon dioxide in the atmosphere then at any point in the last 800,000 years The populations is expected to reach up to 8 billion people by Our efforts to combat climate change have been inadequate. 8 Source: Insurance Bureau of Canada June 2015

9 FLOOD QUICK STATS Weather has become wetter, with an average 12% increase in rainfall across the country. As a result, Canadians now cope with an additional 20 days of rain per year, compared to the 1950s. It is projected that for some regions in Canada, storms that used to strike every 40 years will occur every 6 years by The wetter, warmer environment has led to more violent, extreme weather patterns, including storms and floods. Source: Insurance Bureau of Canada June

10 FLOOD HISTORY Calgary Floods June 19, Toronto Flood July 8, billion in insured losses! 10 Source: Insurance Bureau of Canada June 2015

11 Based on recent estimates, the Canadian insurance industry pays $1.7 billion each year in claims due to water damage. Source: Insurance Bureau of Canada June

12 What is RSA s Waterproof Coverage? 12

13 RSA s WATERPROOF COVERAGE ENDORSEMENT Presenting RSA s new exciting Waterproof Coverage Endorsement! A water damage product that is easy: To explain for brokers For your customers to understand A combined product that offers value add to your customers! Easier Claims adjudication with less guesswork to determine the cause of loss and whether coverage applies. 13

14 RSA s WATERPROOF ENDORSEMENT PRODUCT Waterproof is a new comprehensive product which includes: Flood coverage Sewer Back-up (SBU) Other water damage coverages. Flood Sewer Back-up Other Water Damages 14

15 RSA s WATERPROOF ENDORSEMENT LAUNCH Launched in response to the industries challenges with the emerging water peril, such as events similar to Calgary and Toronto Coverage summary includes: Breaking out or the overflow of a body of water or a watercourse: Whether natural or man-made, provided the break out or overflow is caused solely by rainfall or rainwater, but flood does not include a break out or overflow of water from a watercourse or body of water containing salt-water. Covers sudden and direct physical loss or damage caused by the backing up or escape of water, from a sewer, sump, septic tank, eaves trough, downspout or drain or caused by flood. Calgary Floods Toronto Flood 15

16 When is RSA s Waterproof Coverage launching? 16

17 RSA s WATERPROOF COVERAGE - LAUNCH RSA s new Waterproof Coverage is launching: Launch Date: November 15, 2015 New Business Effective Date: November 17, 2015 Renewal Effective Date: January 17, 2016 Save the Date! 17

18 Who is eligible for Waterproof Coverage? 18

19 RSA s WATERPROOF COVERAGE - ELIGIBILITY This coverage will be available to all risk types that are currently eligible for the Water Damage Extension (SBU) #21029 coverage (except for Mobile risk types) This coverage is optional. It may be given upon renewal by endorsement. Only need to purchase one coverage per qualifying risk type. 19

20 RSA s WATERPROOF COVERAGE - QUALIFICATION This coverage will follow the zoning, limits and deductibles/differentials, as the current Water Damage Extension (Sewer Back Up) coverage. The Water Damage deductible applies to this coverage. Any discounts/surcharges that apply to the Water Damage Extension (SBU) will extend to Waterproof Coverage. 20

21 RSA s WATERPROOF COVERAGE - GRC Guaranteed Replacement Cost (GRC) available: If the GRC Provision applies to the insured location, it is amended as follows: If loss or damage caused by any single water event exceeds the amount of insurance for Coverage A, We will only pay the cost of repairs or replacement up to 125% of Coverage A. 21

22 WATERPROOF COVERAGE ENDORSEMENT FORM #21030 (NOVEMBER 2015) 22

23 What differentiates RSA s Waterproof Coverage from the competition? 23

24 RSA s WATERPROOF ENDORSEMENT FEATURES First company to do a coast to coast initial launch! Our coverage is: Easy to read less complicated product Allows for easy qualification verification (if you have SBU, you may have Waterproof) Easy claims processing Offer combines flood and sbu in one endorsement. We allow the following discounts (vary by brand): Claims Free Discount Broker Loyalty Discount Long Term Discount 24

25 RSA s WATERPROOF ENDORSEMENT CUSTOMER BENEFITS Existing SBU coverage on renewal is reduced to sewer, septic, sump with a reduction of up to 10% in premium New Waterproof coverage optional if selected will have coverage for SBU and flood (no need for separate endorsements). Waterproof follows same zoning and limits of coverage as SBU 25

26 RSA s WATERPROOF ENDORSEMENT BROKER BENEFITS The brokers may encounter an E&O situation with carriers who have nothing on the table in the foreseeable future in terms of an offering. There is less chance of E&O with our combined endorsement then adding SBU and forgetting to add/key flood and vice versa. Competitive pricing 26

RSA s WATERPROOF COVERAGE COMPETITIVE ANALYSIS Product Competitor Benefits Customer only has to purchase one product Waterproof coverage on All Products RSA offers both except that we cap GRC at 125%

27 RSA s WATERPROOF COVERAGE COMPETITIVE ANALYSIS Product Competitor Benefits Customer only has to purchase one product Waterproof coverage on All Products RSA offers both except that we cap GRC at 125% We allow the following discounts (vary by brand): Claims Free Discount Broker Loyalty Discount Long Term Discount Customer has to purchase both products competitor product offer is limited Removed coverage for Single limit and Guaranteed Replacement cost No discounts 27

28 SUMMARY WATERPROOF COVERAGE ENDORSEMENT Waterproof is a new comprehensive product which includes: Flood coverage Sewer Back-up (SBU) Other water damage coverages This coverage will be available to all risk types that are currently eligible for the Water Damage Extension (SBU) #21029 coverage, making it easy to qualify for. Only one of these coverages is allowed per qualifying risk type. Attractive benefits for including many discounts 28

29 LEARNING ACTIVITY (BROKER SCENARIO) Time: 3 Minutes Method: Individual You will be provided with a few common scenarios that you may experience on the job. Next, Analyze the scenario Determine how you will position RSA Waterproof Coverage 29

30 BROKER PERSONA # 1 (KATRINA LOPES) One of your customers Katrina is calling you and would like to know more about RSA s Waterproof coverage. You (Broker) Katrina (Customer) Hey, what is covered under RSA s new Waterproof Coverage Endorsement? 30

31 BROKER PERSONA # 2 (MIKE KNIGHT) One of your customers Mike is calling you and would like to know if there are any discounts available for RSA s Waterproof coverage. You (Broker) When is the product available? Mike (Customer) Hey, are there discounts available for Waterproof Coverage? 31

32 BROKER PERSONA # 3 (JOE LACKEY) Joe is calling you, as he is interested in the RSA s new Waterproof Coverage. He would like to know how Waterproof Coverage compares to the competitor s flood product. You (Broker) Joe (Customer) Hey, how does Waterproof Coverage compare to the competitor s product? 32

33 WATER DAMAGE ENDORSEMENT LIMITED SEWER BACK- UP

34 What types of Water Damage Coverage does RSA now Offer? 34

35 RSA S WATER DAMAGE COVERAGE OFFERINGS Consists of two endorsements: New - Waterproof Coverage Endorsement : New combined flood and sewer backup coverage option New form #21030 Revised - Water Damage Extension Endorsement: Renamed: Water Damage Endorsement Limited Sewer Back-up Reduced sewer backup coverage at a discounted rate Revised wording #

36 RSA s WATERPROOF COVERAGE ENHANCEMENTS CURRENT Water Damage Extension (Sewer Back up) ( ) Water Damage Deductible applies Coverage for loss from sewer, septic, sump, drains, eaves, downspout. Sewer Back-up Revised Water Damage Endorsement -Limited Sewer Back-up ( ) Water Damage Deductible applies Removed coverage for drains, eaves, downspout Added anti-concurrent causation exclusion Now only covers losses due to sewer back-up, septic and sump Sewer Back-up WATER DAMAGE OPTIONS New Waterproof Coverage Water Damage Deductible applies Combines SBU and Flood in one endorsement (salt-water damage excluded for flood) Using same zones and coverage options as SBU Competitive premiums in low risk zones Flood Sewer Back-up 36

37 WATER DAMAGE EXTENSION (SBU) #21029 REVISED! The Water Damage Extension wording #21029 has been revised to exclude some types of loss that will now be covered under the new water damage (SBU) & flood coverage (Waterproof) form # NOW EXCLUDED: coverage for downspouts, drains and eaves and includes an anti-concurrent restriction for flood. This means: only losses caused directly by sewer, septic and sump will be covered by this endorsement The revised wording #21029 (2015) will be included with the policy declaration for all renewals when this coverage exists for a period of 1 year (January 17, 2016 January 16, 2017). All policies with SBU coverage today will renew on the revised wording form #21029 (provided they have not moved into a no write zone), This coverage will continue to be available to all risk types that are currently eligible for SBU. Premiums for this coverage have changed. 37

38 WATER DAMAGE ENDORSEMENT LIMITED SEWER BACK-UP FORM #21029 NOVEMBER

39 SBU/FLOOD ZONES/ELIGIBILITY Premiums for the policy limit forms are based on the following: Water zone; Coverage A (dwelling building) amount; Policy form; Sewer Backup and Flood claims history. Premiums for sub-limits are based on the water damage zone, policy form, and sewer backup and flood claims history. 39

40 SBU/FLOOD ZONES/ELIGIBILITY CON T There is a new zone created (zone 9), where flood coverage (Waterproof) will not be available. Zone 9 applies in BC, AB, MB, ON and NB., but does not apply in Newfoundland, Nova Scotia and PEI. Water Damage - Limited SBU (Form #21029) is available for risks in zone 9. Limits and deductible amounts available in the new zone will follow the existing SBU criteria 40

41 SBU/FLOOD ZONES/ELIGIBILITY Premiums are based on a standard $2,000 deductible ($1,000 in Manitoba) Grading Index/Postal Code look up is available in the on-line manual to identify the SBU/Flood Zone On renewal some zones have shifted to incorporate flood model data All new risks with a prior sewer back up or flood loss must be referred before binding (fully completed Water Damage Questionnaire #20355 required) 41

ATLANTIC Coverage limits available for Water Damage SBU and Waterproof: Up to $100,000 in NS, PEI, NB Number of zones by province: NL available in zones 1 to-3 NS available in zones 1 to 5 NB

42 ATLANTIC Coverage limits available for Water Damage SBU and Waterproof: Up to $100,000 in NS, PEI, NB Number of zones by province: NL available in zones 1 to-3 NS available in zones 1 to 5 NB available in zones 1 to 4 and 9 for SBU, no write zone 9 for Waterproof Coverage PEI available in zones 1 and 2 Sample Waterproof Coverage Nova Scotia Homeowners Zone 1 (no water losses) Cov Limit Premium $25,000 $97 $30,000 $107 $40,000 $126 $50,000 $156 $75,000 $182 $100,000 $203 42

43 BRITISH COLUMBIA WATERPROOF available in Zones 1 to-3 LIMITED SBU available in Zones 1 to-3, and Zone 9 Sample Premium Waterproof Policy Limits, no prior SBU losses Zone 1. Homeowners Coverage A $300,000 and below $50 $300,001 - $600,000 $60 $600,001 - $1,000,000 $73 $1,000,000+ $112 43

44 ONTARIO WATERPROOF AVAILABLE Zones 1 to-7, Not available in Zone 8 or 9 WATER DAMAGE SBU AVAILABLE Zones 1-to 7, and Zone 9, Not available in Zone 8 (current no write zone) Sample Zone 1 Waterproof premium Homeowners, Policy Limit, no prior losses Coverage A RSA Premium WA Premium $300,000 and below $115 $115 $300,001 to $600,000 $137 $135 $600,001 to $1 Million $188 $179 Premiums vary slightly between WA and RSA due to different discount structures 44

PRAIRIES Waterproof available in zones 1-to 5, not available in zones 6, 7, 9 Limited SBU available in zones 1-to 5 and zone 9, not available in zones 6 or 7 (existing risks in zones 6/7 with up to

45 PRAIRIES Waterproof available in zones 1-to 5, not available in zones 6, 7, 9 Limited SBU available in zones 1-to 5 and zone 9, not available in zones 6 or 7 (existing risks in zones 6/7 with up to $10,000 SBU are not eligible for flood coverage. SBU is grandfathered for existing risks in these zones) Sample Premium - Alberta Waterproof Zone 1 Homeowners, No prior SBU losses, Policy Limits Coverage A $300,000 or less $147 $300,001 - $600,000 $194 $600,001 - $1,000,000 $263 45

46 WATER DAMAGE DEDUCTIBLE In 2014 RSA introduced a standard Water Deductible that applies to: All Water Damage coverage included in all policy forms. If the Water Damage Limited Sewer Back Up Endorsement or the Waterproof Coverage Endorsement is purchased, the Water Damage Deductible will apply to any claims covered under these endorsements. Options are available to decrease or increase the Water Deductible Minimum Water Damage Deductible is $1,000 Water Damage Deductibles must never be lower than the risk deductible Base deductibles vary by Province and Product. 46

47 SUMMARY WATER DAMAGE ENDORSEMENT LIMITED SEWER BACK-UP There will be a new no write zone (9) that will allow purchase of the revised #21029 limited SBU. The new combined coverage will not be available in zone 9. Revised Water Damage Endorsement - Limited Sewer Back-up ( ): Standard Water Damage Deductible Removed coverage for drains, eaves, downspout Added anti-concurrent causation exclusion Now only covers losses due to sewer back-up, septic and sump Limits and deductible amounts available in the new zone will follow the existing SBU criteria 47

48 LEARNING ACTIVITY (WD CASE SCENARIOS) Time: 3 Minutes Method: Individual You will be provided with a few common scenarios that you may experience on the job. Next, Analyze the scenario Determine if: it is correct. a further recommendation is required. 48

49 CASE SCENARIO # 1 Jerry Bishop Jerry lives in New Brunswick. He has requested to add the new Waterproof Coverage Endorsement form # Jerry s postal code is in Zone 9 a no write flood zone. In processing Jerry s request, the WEB screen indicates a message: RISK IS IN 'NO WRITE FLD' ZNE-REMVE WATERPRF COV/MAY ADD SBU. Can the broker process Jerry s request for form 21030? Explain. 49

50 CASE SCENARIO # 2 Hilda Ratner Hilda lives in AB. She recently purchased a new home and wants to add the new Waterproof Coverage. Hilda already has Limited Sewer-Backup Coverage and is requesting to have both forms: Waterproof Coverage Endorsement form #21030 Limited Sewer Back-Up Endorsement form #21029 Can the broker process Hilda s request? Explain. 50

51 CASE SCENARIO # 3 Frank lives in Ontario Frank wants to purchase the new Waterproof Coverage Endorsement form #21030 for his home. Can you process Frank s request? Explain. 51

52 CUSTOMER COMMUNICATION FOR WATERPROOF COVERAGE

53 CUSTOMER LETTERS A customer letter has been created to communicate to existing policy holders that have purchased SBU (#21029) that this coverage has been amended and the option to purchase the new flood/sbu combined coverage is available (#21030). All Water Damage changes are being incorporated into one generic customer letter with individual legal disclaimers and branding logos. A new customer letter will be attached at renewal for one year when the risk location has the Water Damage Limited SBU coverage (#21029) Effective : January 17, 2016 to January 16,

54 CUSTOMER LETTER - excerpt 54

55 PRINT New form #21030 will attach to the policy declaration when Waterproof Coverage is selected. The new coverage will print in the same spot as the current SBU coverage on the declaration page. Below is an example of how the coverage will print: 55

56 PRINT The new form #21030 will not print at repeating Renewals. When a risk with Waterproof coverage (HWDF) is re-located to a No Write zone during New Business Reissue or Amend, the system shall automatically cancel the coverage with reason code 02. The following Important message will print on the declaration: Water damage coverage has been removed from one or more locations on your policy as we no longer offer the coverage in this geographical area. Please contact your broker if you have any questions. When a risk with Waterproof coverage (HWDF) is re-located to a zone where Policy Limit is not allowed, the system will automatically default to the defined default limit, and the following important message will print on the declaration: Your water damage coverage has been reduced. Please contact your broker if you have any questions. 56

57 WATER DAMAGE DEDUCTIBLE DIFFERENTIAL: Currently, the water damage deductible differential is tied to the SBU coverage. Therefore, when no SBU coverage is selected, there is no premium change when the water deductible is reduced.. Additional premium will now apply when Water Damage Deductible $1,000 or $1,500 is selected and there is no Water Damage - Limited SBU or Waterproof Coverage on the risk. An additional $25 shall be charged when the water deductible is amended to $1,500 and no Water Damage - Limited SBU or Waterproof Coverage is selected. An additional $40 shall be charged when the water deductible is amended to $1,000 and no Water Damage - Limited SBU or Waterproof Coverage is selected. in MB $1,000 WD deductible is standard, no additional charge applies 57

58 PROCESSING RSA S WATERPROOF COVERAGE IN WEBBUSINESS

59 VENDOR IMPACT Currently no ability to select flood coverage on vendor system today, for RSA. Vendors have built the capability to have SBU/Flood combined coverage available for RSA. 59

60 WATER DAMAGE CHANGES ARE NOT APPLICABLE TO: Any other product / risk types not currently offering SBU SK, QB, Territories 60

61 How do you quote Waterproof Coverage on Applied Rating Systems? 61

QUOTING APPLIED RATING SERVICES Waterproof coverage is available for selection under Water Damage Extensions Coverage is selected by checking off the Overland Water box and selecting the desired

62 QUOTING APPLIED RATING SERVICES Waterproof coverage is available for selection under Water Damage Extensions Coverage is selected by checking off the Overland Water box and selecting the desired deductible and limits. When entering limits, please use the Building limit field only. You will have the option to select Full or Partial limits. *Note: if the risk is in a zone where policy limits are not offered, Full coverage will give maximum zone limits. 62

QUOTING APPLIED RATING SERVICES - CONT As the limit is entered into the Building Limit

Outbuildings Note that it is not required that SBU be selected with Waterproof.

63 QUOTING APPLIED RATING SERVICES - CONT As the limit is entered into the Building Limit field, messages will trigger as a reminder that rates are not available for Contents and Outbuildings Note that it is not required that SBU be selected with Waterproof. If both SBU and Waterproof are selected, a message will trigger as a reminder that SBU is included. Any SBU deductible or limit that was previously entered will be matched to the Waterproof deductible and limit. If risk is located in a no-write flood zone, an error message will trigger to advise. 63

64 How do you quote Waterproof Coverage on IntelliQuote? 64

65 QUOTING INTELLIQUOTE Waterproof Coverage is selectable under the endorsements step of the Coverage Item Wizard, titled Water Coverage and Sewer Backup You can amend your coverage limits and deductible by selecting Coverage Items and navigating to the corresponding tab. The limit and deductible amount for Waterproof coverage are selectable via drop down 65

66 QUOTING INTELLIQUOTE Limit Entry Deductible Entry 66

67 QUOTING INTELLIQUOTE Waterproof will display under Endorsements/Extensions on the quote. As Sewer Backup is included in Waterproof Coverage, if both are selected you will receive a message indicating that Sewer Backup was not rated. 67

68 How do you add Waterproof Coverage on WebBusiness? 68

WEBBUSINESS WATERPROOF COVERAGE SELECTION Waterproof coverage is optional and will not be pre-selected. Waterproof is mutually exclusive to SBU 21029; you cannot select both on the same risk.

69 WEBBUSINESS WATERPROOF COVERAGE SELECTION Waterproof coverage is optional and will not be pre-selected. Waterproof is mutually exclusive to SBU 21029; you cannot select both on the same risk. Risk types that automatically pre-select SBU will continue to do so. In order to add the Waterproof endorsement, SBU must be deselected. Waterproof is selectable under Additional Coverages: Waterproof limits are entered/defaulted in the same way as SBU: 69

WEBBUSINESS WATERPROOF COVERAGE ERROR MESSAGES As Waterproof and SBU are mutually exclusive, if both Waterproof and SBU are selected, the following errors will trigger on rating: If an

70 WEBBUSINESS WATERPROOF COVERAGE ERROR MESSAGES As Waterproof and SBU are mutually exclusive, if both Waterproof and SBU are selected, the following errors will trigger on rating: If an invalid limit is entered, the following error will trigger on rating: If Waterproof is selected on a risk located in a no-write flood zone, the following error will trigger on rating: 70

71 MITIGATION

72 FLOOD MITIGATION TOOLS FOR BROKERS Climate Smart is a page dedicated to severe weather located on You will find useful tools that you can use to educate and have discussions with or help mitigate flood risk with your customers. These include: Loss Prevention Checklist Discussion Guide Water Damage Mitigation Tips Several links to valuable IBC s resources and media 72

73 END REMARKS

74 LEARNING OUTCOMEs Now that learning is done, you should able to: Describe RSA s Waterproof Coverage Endorsement. Explain the features and benefits of RSA s Waterproof Coverage Endorsement. Employ best practices for adding Waterproof coverage to Vendor Quote Tools and RSA s business tool, WebBusiness Identify some best practices for flood, sewer back-up and water damage mitigation. 74

75 END REMARKS In the next couple weeks: Your Regional Account Manager will be reaching out to you 75

76 Thank you for your time! 76

RSA S WATER DAMAGE COVERAGE NOVEMBER 2015.

RSA S WATER DAMAGE COVERAGE NOVEMBER 2015. INTRODUCTION AND EXPECTATIONS INTRODUCTIONS John McNeil, BA, CIP, CTDP Facilitator Manager Learning and Development, RSA (National Sales and Distribution) Amy