Insurance to Value (ITV) is one of our biggest initiatives. And I am guessing one that you are hearing about from others besides Millers. In order to write Habitational and Commercial LRO business profitably, it is imperative our properties are not underinsured. We know this is not an exact science and we look forward to working with you to make sure our customers’ properties are properly insured to the best of our combined abilities.
We will be introducing a Per Unit Water Damage Deductible to remain a competitive and viable insurer in the Condo Association marketplace. Many carriers have stopped writing – or exited entirely from – the Condo Association market. We do not want the same to happen here at Millers. These past few months have been a reminder of why this valuable tool is utilized by so many of our competitors.
We will be implementing a minimum $2,500 deductible for our Apartment and Condo Association accounts. Deductibles are an important tool for us to control costs and reduce frequency of smaller claims, and this change will help us maintain competitive in our Habitational book and be a market of choice. Larger deductibles may be required for accounts with large building values or loss frequency. These minimum deductibles will allow us to begin insuring accounts that we would otherwise have said no to.
Our account pricing process will be focusing more on the account characteristics and expected future losses. This will be an ongoing and evolving process, and just a regular practice of our day-to-day Underwriting.
We will no longer reinstate Direct Bill Accounts if that customer has gone into cancellation three times in a single policy period. This is referencing those accounts where the payments were received prior to the cancellation date but we were forced to send multiple cancellation notices. These accounts are an added expense to the company and are some of our poorer performing accounts. We know there are sometimes errors on our side, or special circumstances, and we will work with you on those as they arise.