Tokio Marine Highland Responds to Hurricane Milton: Read More

Tokio Marine Highland

Tokio Marine Highland

Forecasters Predict Active, Above-Average Hurricane Season

Hurricane season begins June 1 and forecasters are gearing up for yet another above-average year of storm activity. Researchers from Colorado State University (CSU) are predicting 19 named storms during the Atlantic hurricane season, which runs through November 30. Of those storms, forecasters expect nine to become hurricanes and four to reach major hurricane strength of a category 3 or greater (see CSU chart below).

Forecasters from the National Oceanic and Atmospheric Administration (NOAA) reached a similar conclusion, predicting the seventh consecutive above-average hurricane season. NOAA is forecasting a likely range of 14 to 21 named storms, of which six to 10 could become hurricanes, including three to six major hurricanes (category 3 or greater).

Researchers point to the likely absence of El Niño, or the warming of waters in the central and eastern tropical Pacific, as the main driver for an above-average hurricane season. According to the report, the current La Niña conditions, with cooler than normal water temperatures, may continue to weaken and transition to neutral conditions by this summer. However, researchers say they do not anticipate El Niño for the peak of the Atlantic hurricane season.

So where will the 2022 season stack up against prior years? Phil Klotzbach, research scientist in the CSU Department of Atmospheric Science and lead author of the report, says this season exhibits characteristics similar to 1996, 2000, 2001, 2008, 2012 and 2021. Overall, researchers say storm activity in 2022 will likely be about 130% of the average season from 1991-2020.

Colorado State University (CSU) Forecast for 2022 Hurricane Activity

Are Your Clients Prepared for Hurricane Season?

Given the forecast for an active season and an increased risk of flood damage caused by heavy rains, storm surge and inland flooding, agents and brokers should make sure their clients are prepared. With inflation and the rising cost of construction materials sending recovery and rebuilding costs soaring, it’s even more critical than ever before to ensure your clients have the coverage they need to protect their most valuable assets and help them recover quickly should they experience a damaging event.

Tokio Marine Highland’s private flood solutions offer higher limits, broader coverages and more stable and competitive rates than what is available from the National Flood Insurance Program (NFIP). With more than 30 years of industry-leading expertise, our wide range of private flood solutions can provide your clients peace of mind. To learn more about our comprehensive flood offerings or to have us quote your potential target risks, view our Private Flood Insurance page, or contact us at PrivateFloodSolution@tmhighland.com.

7 Common Flood Compliance Violations: What Are They?

Did you know that among flood compliance violations, seven are the most common? You may find that your institution can easily avoid these violations when you learn what they are.

You’ve heard or read about federally regulated financial institutions being cited for not complying with the mandatory purchase provisions¹ of the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994. You also know that there may be monetary penalties for noncompliance. In 2021, 28 financial institutions were fined a total of $5.26 million for various flood compliance violations² – an average of almost $188,000 each!

What are these seven common violations and what can you do to help ensure your institution is compliant?

1. Not having the proper documentation. Always keep a paper or electronic copy of the Standard Flood Hazard Determination Form and a record of ALL other compliance actions you take in the loan file.

2. Allowing waivers of insurance without proper justification. Remember, if the borrower disputes the flood zone determination, ONLY flood map changes through FEMA’s letters of map amendment or revision can justify waiving the flood insurance requirement.

3. Not sending notice to the borrower. You must send written notice to the borrower who is being required to obtain flood insurance and the borrower must sign or acknowledge the notice. You must also provide the borrower reasonable time to obtain flood insurance for loan closing purposes. For existing loans, if proof of insurance is not provided or the coverage amount is insufficient, the borrower must be provided with 45 days’ notice to submit acceptable proof of insurance.

4. Not requiring sufficient insurance. Make sure you have documented procedures to require a coverage amount that is at least the lesser of the following amounts: (a) the outstanding principal balance of the loan; (b) the maximum amount of coverage available through the NFIP for the type of property; or (c) the insurable value of the property (i.e., 100% replacement cost value less the value of the land).

5. No proof of insurance in loan file. This is a critical part of documentation requirements so make sure your loan file has a copy of the insurance declarations or other acceptable proof of insurance. Again, you must document ALL your compliance actions in the loan file.

6. Not purchasing required flood insurance If after the 45 days’ notice the borrower has not provided proof of acceptable insurance, you must purchase insurance.

7. Not requiring insurance on condo unit, commercial property, building under construction, second mortgage and HELOC loans. Remember that even if only part of the association property is in an SFHA, you must require flood insurance for the condominium unit that secures your loan. The mandatory purchase requirements apply equally to commercial, construction, and second mortgage or HELOC loans. Additionally, you must consider all liens to ensure that there is sufficient insurance to restore the property or satisfy all liens in case of a loss.

We hope this information encourages you to review your flood compliance program – starting with flood zone determinations, borrower notifications, and lender placement.

If you would like more information or assistance in understanding the flood insurance requirements, contact your Tokio Marine Highland representative, visit our Private Flood Insurance page, or download our lender placed flood insurance product sheet. We are ready to assist you.

¹ 42 U.S.C § 4012a
² https://www.bankersonline.com/penalty/penalty-type/flood-civil-money-penalties
The information provided above does not, and is not intended to, constitute legal advice; instead, all information provided is for general information purposes only.

Tokio Marine Highland’s Kiran Achen Named Chicago CIO of the Year

Chicago, IL – Today, Tokio Marine Highland’s Chief Information Officer Kiran Achen was named the 2022 Corporate Chicago CIO of Year. The ORBIE Awards, presented by ChicagoCIO, recognize CIOs who have demonstrated excellence in technology leadership.

“It is a great honor,” Achen said. “This is a recognition for everyone at Tokio Marine Highland and for all of our accomplishments. I want to thank my team, without whom these achievements would not be possible, our vendor partners who have helped us find success, and our business partners and leadership team. Without their support, empowerment and trust, I would not be here representing our organization. I want to congratulate all of my fellow nominees and finalists. It was an honor to be in your company and I am truly humbled.”

Photo of Kiran Achen.
Kiran Achen, CIO

Achen joined Tokio Marine Highland as CIO 2018, with the responsibility of defining and implementing a technology strategic vision aligned to the company’s growth and performance goals, and the challenge of transforming a family-run business into a data- and analytics-driven digital insurer. Under his leadership, Tokio Marine Highland’s IT organization has been instrumental in delivering solutions that have grown the company from $165 million in gross written premium (GWP) in 2017 to $322 million GWP in 2021.

“Winning this award in this competitive field is amazing,” said Pat Blandford, CEO of Tokio Marine Highland. “Kiran was judged by his peers against the best talent in the Chicago area. They saw what I see. His consistent approach to developing his team and listening to his business partners makes him an invaluable part of our team. I am incredibly proud and so pleased he is being recognized.”

The CIO of the Year ORBIE Awards were launched in 1998. Finalists and winners are selected through an independent peer review process, led by prior ORBIE recipients, and based upon leadership and management effectiveness, business value created by technology innovation, and engagement in industry and community endeavors.

For more information about the 2022 CIO of the Year Orbie Awards, visit the ChicagoCIO website.

About Tokio Marine Highland

Tokio Marine Highland is a leading property and casualty underwriting agency that offers distinct specialty risk management solutions, including private flood, construction, fine art, specialty property, real estate investment and lender-placed insurance. Tokio Marine Highland also includes Precise Adjustments, a wholly owned subsidiary that provides industry-leading claims capabilities.

Founded in 1962, Tokio Marine Highland Insurance Services, Inc. (formerly WNC Insurance Services, Inc.) is a wholly owned company of Tokio Marine Kiln, one of the largest carriers in the Lloyd’s of London insurance market, rated A+ by Standard & Poor’s for financial strength, and a member of the Tokio Marine Group. Tokio Marine Highland’s home office is located in Chicago, IL, with operating centers in Dallas, TX, Irvine, CA, Miami, FL, Naperville, IL, and South Pasadena, CA.

For more information, visit our website at www.tokiomarinehighland.com.

Spring Showers Bring Risk of Flooding: Are Your Clients Prepared?

Spring is here, and for many areas of the country, that means increased risk of flooding from the threat of heavy rainfall. According to data from the National Oceanic and Atmospheric Administration (NOAA), five of the six costliest floods since 1980 were spring floods or the result of heavy spring precipitation that led to conditions that set the stage for severe flooding events during the summer months.

While forecasters from the National Oceanic and Atmospheric Administration (NOAA) are not predicting the severe, widespread flooding experienced during the 2019 spring season, several areas of the country are still at an above-average risk of flooding, including the Great Lakes and Ohio River Valley regions. Researchers are anticipating less severe flood risk for the eastern half of the continental U.S. this spring, but also anticipating yet another above-average Atlantic hurricane season that warrants risk assessment and insurance considerations sooner than later.

Are Your Customers Protected?

When working with your customers, it is important to consider the following:

  • One out of every four of your customers will likely experience a flood event. In areas of moderate- to high-risk, there is a 26 percent chance of experiencing a flood over the term of a 30-year mortgage.
  • More than 20 percent of flood insurance claims occur in moderate- to low-risk zones where coverage is not lender-required, according to the Federal Emergency Management Agency (FEMA).
  • Flood damage is the nation’s most common and costliest natural disaster, yet less than 20 percent of homeowners are protected.
  • Only one inch of water in a building can cost tens of thousands of dollars in damage. Even minimal flood insurance coverage can protect your clients from directly incurring the cost of such a devastating loss.

Wider Range of Options, Better Coverages with Private Flood Insurance

There has never been a better time to talk with your customers about the risk of flooding and that private flood insurance solutions offer higher limits, broader coverages and more stable and competitive rates than what is available from the National Flood Insurance Program (NFIP).

For more than 25 years, Tokio Marine Highland has been a trusted source for private flood insurance, so you can be confident in our knowledge, underwriting expertise and longevity when presenting your customers with our innovative flood solutions. To learn more about Tokio Marine Highland’s comprehensive flood offerings or to have us quote your potential target risks visit our Private Flood Insurance page or contact us at PrivateFloodSolution@tmhighland.com.

Tokio Marine Highland Adds Fine Art to its Suite of Specialty Insurance Offerings

Chicago, October 11, 2021 – Tokio Marine Highland, a leading property and casualty underwriting agency, announced today it has successfully launched fine art insurance for personal and commercial risks, further enhancing its broad suite of specialty risk management solutions.

Christiane Fischer was appointed President of the Fine Art Division, responsible for providing strategic leadership and delivery of the company’s custom insurance solutions for the fine art market, including art dealer, exhibition, museum, and private and corporate collection coverages. An experienced authority on fine art insurance, Fischer previously served as President & CEO at AXA Art Insurance Corporation from 2004 to 2019, growing the company into a market leader during her tenure.

“Christiane’s reputation and deep expertise are highly respected in the fine art world,” said Pat Blandford, Chief Executive Officer of Tokio Marine Highland. “Her leadership and the team she is building will position Tokio Marine Highland at the forefront of the fine art insurance space. Our legacy has been built on serving niche, specialty insurance markets, and this new product line is a perfect complement to the innovative products and services our customers have come to know and expect.”

“I am very passionate about the fine art insurance world and I’m eager to join an organization in the midst of an exciting transformation,” Fischer said. “We look forward to providing brokers with custom solutions to meet the complex needs of their clients, and offering top-notch service and hands-on claims management. We have a highly qualified team who share my commitment in providing the best fine art insurance experience in the industry.”

Fischer is a member of the board of trustees of the Isamu Noguchi Museum of Art, the International Foundation for Art Research (IFAR), the Conservation Center, the Conservation Council of the Solomon R. Guggenheim Museum, and the National Jewelry Institute.

Founded in 1962, Tokio Marine Highland (formerly WNC Insurance Services) is a wholly owned company of Tokio Marine Kiln, one of the largest carriers in the Lloyd’s of London insurance market, rated A+ by Standard & Poor’s for financial strength, and a member of the Tokio Marine Group.

About Tokio Marine Highland

Tokio Marine Highland is a leading property and casualty underwriting agency that offers distinct specialty risk management solutions, including private flood, construction, fine art, specialty property, real estate investment and lender-placed insurance. Tokio Marine Highland also includes Precise Adjustments, a wholly owned subsidiary that provides industry-leading claims capabilities.

Founded in 1962, Tokio Marine Highland Insurance Services, Inc. (formerly WNC Insurance Services, Inc.) is a wholly owned company of Tokio Marine Kiln, one of the largest carriers in the Lloyd’s of London insurance market, rated A+ by Standard & Poor’s for financial strength, and a member of the Tokio Marine Group. Tokio Marine Highland’s home office is located in Chicago, IL, with operating centers in Dallas, TX, Irvine, CA, Miami, FL, Naperville, IL, and South Pasadena, CA.

For more information, visit our website at www.tokiomarinehighland.com.