R&R Insurance Blog

Eating a well-balanced diet is the key to maintaining a healthy body. Improving your diet, in fact, could help you live longer and reduce the chances of developing costly chronic diseases such as heart disease, stroke and diabetes.

The Academy of Nutrition and Dietetics encourages everyone to eat healthy. This includes the foods that you might eat at work. “Healthful eating habits shouldn’t stop once you get to work,” says registered dietitian nutritionist Jennifer Bruning.

Nearly 25% of employed adults consume foods and beverages at work at least once a week—items that often are high in calories and include refined grains, sugars and sodium, according to a study by the Center for Disease Control and Prevention (CDC) in 2019.

Below are a few tips for a healthier lifestyle:

• Plan out your meals ahead of time
• Bring your own lunch to work
• Eat the rainbow of fruits and vegetables
• Stick to correct portion sizes
• Carry a water bottle with you

Small changes can lead to improved health benefits!

For more information on how to maintain a healthier lifestyle, read here.

You can't open a publication these days without hearing about rising insurance prices.  As discouraging as this is to your wallet, perhaps some insight on WHY this is happening will make it a little more tolerable.

Pricing continues to be impacted by increased litigation around social events relating to #MeToo, cyber breaches, social media and safety.  According to a Q4 2019 Market Scout report,

• D&O increased 8.25%
• Commercial auto increased 8%
• Property prices rose 5.25%
• Excess liability rose an average of 5.5%
• Workers compensation decreased an average 1% in Q42019, continuing a downward trend for the year

The Wall Street Journal article, is citing several factors accounting for the rising prices:

• Several years of large catastrophe losses
  • The current price increases are partly due to hurricanes, wildfires, and other catastrophes of 2017 & 2018 that cost the global industry more than $200 billion
  • During periods without catastrophic claims, you'll generally see lower insurance prices.  Following large natural disasters or other big losses, you'll generally see a rise in prices or reduction of exposure to certain risks.
• Continued low interest rates
• Non-catastrophe claims
  • Property losses from building fires and mechanical breakdowns have increased
• Social-inflation have increased liability-insurance claims
  • There is a greater tendency to sue insurers and for juries to hand out higher rewards

What can be done?

The good news, according to Insurance Journal: you can take a proactive approach to gaining control over your risk management program.  By creating long-term plans it helps to see where to make investments in the overall risk - not just the rising cost of premium, but also risk improvements and funding higher deductibles for the long term.  Having the additional resources from a safety and loss control standpoint advising you along the way will help your overall strategic goals. 

In today's market, properly managing loss control and mitigating exposures can make the most impact in total cost of your risk management program.

Despite slight declines in accident rates, auto insurance rates have been on the rise for the past decade.  American car insurance rates have risen 29.6%, outpacing inflation and the increase in average car prices.

According to an article by Wired, a few culprits are to blame:

• Vehicle theft is rising
• Extreme weather, fueled by climate change, can destroy cars in a shorter amount of time
• Hurricane Harvey wrecked close to 1 million cars in 2017

The biggest culprit in rising auto insurance rates: the newer technology features within the cars themselves.

The reason: the sensors that power the systems make cars much more expensive to fix when they do crash.  Dent a steel bumper and a couple hits of a hammer will fix the issue.  Dent a bumper on a newer vehicle and it could mean repairing or replacing a camera, a radar, and ultrasonic sensors.  And then have everything calibrated!

Those who pay for blind spot warning, driving alertness monitoring, lane departure warning, night vision, or parking assistance systems may not actually save anything, depending on the insurance company.

Not to be overlooked, other leading causes of higher auto insurance costs:

1. Shift from halogen to carbon fiber.  It's lighter and stronger than steel or aluminum, but when damaged needs to be replaced.  In general, the cost of repairs has risen 5% to 6% annually since 2015, however frequency of crashes has dropped by 2% to 3%.  The gap explains the steep rise in rates.
2. Distracted driving. Smartphone use has risen from 35% to 81% in the past decade and have accounted for more than two-thirds of crashes.  Inattention behind the wheel has been blamed for the recent rise in traffic fatalities among pedestrians.  Insurance companies have responded by increasing rates for smartphone violations by as much as 23% year-over-year.

On the bright side, these higher rates may not last.  As mechanics learn to replace and calibrate sensors and as the prices of parts begin to fall, repairs should get cheaper.

Effective 2/1/2021, the Workers Compensation Rating Bureau (WCRB) will no longer issue courtesy postcard reminders to employers eligible to file for the Wisconsin Contractor's Premium Adjustment Program.

Read the full Circular Letter from the WCRB

WCRB will mail an orange WCPAP postcard notification to complete the WCPAP Online Application for one more renewal cycle (fiscal year 2020). 

Beginning with policies effective 7/1/2021 eligible employers should create their own reminders to complete their WCPAP Online Application every year. 

REMINDER: employers must submit a WCPAP Online Application every year, no less than 90 calendar days prior to the first day of the month of their worker’s compensation policy renewal.  The WPAP Online Application is updated every year on the evening of September 30th.  Therefore, you may complete this online application as soon as October 1st, regardless of your policy effective date.

Policies Expiring	WCPAP Online Application Deadline*
January	November 2
February	November 3
March	December 1
April	January 1
May	January 31
June	March 3
July	April 2
August	May 3
September	June 3
October	July 3
November	August 3
December	September 2

*Updated as of January 2020 - dates subject to change

 

In early January 2020 the Department of Homeland Security issued the following urgent bulletin concerning retaliatory cyber-attacks: https://www.dhs.gov/ntas/advisory/national-terrorism-advisory-system-bulletin-january-4-2020

There are no specific direct threats yet but, as mentioned, there is a significantly elevated risk and high likelihood of a Cyber-attack by Iran (a state sponsor of terrorism) in retaliation to recent events. 

While it is not likely that our customers in Wisconsin will be directly targeted, it is highly likely customers will be impacted by the contingent cyber exposures of a state sponsored retaliatory cyber-attack.   The likely impact would be because the major cloud and network systems our customers depend on would be down:

• Denial of service attacks
• Network interruption
• Contingent business income and sales loss

This is why a true cyber policy that contains coverage for all of this is more important than ever!   

We are being proactive and want to help now before a loss occurs!  

• Get a quote today and it can be done with a few quick questions: click here to request a quote answering 7 simple questions
• A true cyber insurance policy is not as expensive as you might think and covers not only direct cyber-attacks but contingent exposures around systems your company depends on.   
• One of our top carriers also features a reimbursement for upfront cyber defense costs, up to $3,000, on IT risk mitigation to help make IT systems safer and mitigate risk.  

We urge you to please contact Jason Navarro (Director of Cyber Crime) and/or complete the 7 step questionnaire so we can help implement an adequate cyber-program with you.  

This holiday season, you may find that online shopping is a convenient way to check items off your list. While shopping from the comfort of your couch has its benefits, have you considered the risks involved with having a package delivered to your front door? Package thieves, sometimes referred to as “package pirates”, are stealing millions of packages every year. According to a study done by C+R Research, 31% of individuals had a package stolen last holiday season. On average, stolen packages can be an expensive loss. According to a study by Ring last year, the median value of a stolen package was about $250. With the Holiday season among us and online shopping on the rise, you and your family may want to discuss some options to keep your gifts and deliveries safe. Here are a few tips for how to prevent a package theft from happening at your door step.

1. Outdoor Security Camera

   Installing a camera at your front door is a great way to provide piece of mind, and can deter a thief from attempting to steal your package. Doorbell camera systems such as Nest and Ring are user-friendly and easy to install. These home security systems will allow you to view a live stream of your home from your personal smart phone, so you always know who is knocking at your door. Most doorbell camera systems will notify you when activity is detected, so you’ll know exactly when your item is delivered (even if they don’t ring the doorbell!). Use this function to prevent a package theft by stopping at home to bring your item inside, or even teaming up with neighbors by asking them to hold your package temporarily.

2. Ship to Work or to Friend/Family’s Home

   For some individuals, stopping at home in the middle of the day might not be an option. A great alternative is to have your item shipped to your workplace. Speak to your manager and see what your company policy is- most employers understand that you spend most of your time at work therefore it may be acceptable to receive deliveries there. Sometimes workspace is limited though, so brainstorm people you know that are usually home during the day. Family members who are retired or friends that work from home would be great people to reach out to! The more the merrier when it comes to preventing package theft in our community.

3. Amazon Hub Locker or In-Store Pick Up

   If you are shopping on Amazon, there is now an option to ship packages under 20lbs to an Amazon Hub location. Instead of having your package shipped to a home or business, you can select a “Pickup Point” in your area and have your item shipped to a secured locker kiosk. These Kiosks are located in more than 900 cities and towns across the US! You can use an easy online locator tool to find one near you. They tend to be at neighborhood grocery stores, banks, pharmacy and other easy to access locations. You will receive an email when your item is delivered, and you must pick it up within 3 days of delivery. When you arrive for pick up, just enter your unique pick up code, retrieve your item from the locker, and you are good to go!
   
   Alternatively, if you are shopping at an online retailer other than Amazon, check to see if there is an “in store pick up” option. Insider tip: call the store directly if you do not see a “ship to store” option online. Often times, stores will offer free shipping when you ship to their location!

Online shopping has become a common part of our lives, and its safe to say its here to stay. That being said, porch theft has become all too common as well. Being aware of the risk is the first step to protecting your deliveries. Taking a few moments to consider the above tips may save you from being a part of the staggering porch theft statistic. We hope that these tips were helpful, and wish you have a very happy Holiday season!

On Friday, Nov. 15, 2019, the Trump administration released its final rule regarding hospital price transparency. This final rule will take effect January 1, 2021, a year later than originally proposed.

Hospitals will now be required to provide easily accessible billing information to patients. This means having all standard charges available online and in one single data file that can be “read by other computer systems,” according to a CMS press release.

Learn more here about the final rule released by the Centers for Medicare and Medicaid Services (CMS) regarding hospital price transparency.

Many employee benefits are subject to annual dollar limits that are periodically updated for inflation, such as HSAs, health FSAs, and transportation fringe benefit plans. The IRS recently released Revenue Procedure 2019-44 revising the Health Care FSA and Limited Purpose FSA maximum for 2020. For tax year 2020:

• The dollar limitation for employee salary reductions for contributions to health flexible spending arrangements is $2,750, up $50 from the limit for 2019.
• The monthly limitation for the qualified transportation fringe benefit is $270, as is the monthly limitation for qualified parking, up from $265 for tax year 2019.

The IRS typically announces the dollar limits that will apply for the next calendar year well in advance of the beginning of that year to give employers time to update their plan designs and make sure their plan administration will be consistent with the new limits. Check out our convenient chart with all of the major IRS benefits limits for 2020!

Contact a Knowledge Broker for more information.

Think of this as a friendly alert to double check your personal retirement contribution amounts with your HR or payroll department to ensure you continue contributing at the maximum amount as that limit has increased for 2020.

For business owners, this is great information to share with employees who are maxing out so they can continue fully maximizing their retirement savings potential.

Looking for additional guidance personally or for your employees?  Reach out to R&R Wealth Management with questions: MyKnowledgeAdvisor.com / 262.696.5167.

 

2020 Contribution and Benefit Limits

For 401(k) and other Qualified Plans

Type of Limitation	2020	2019
401(k), 457 and 403(b) maximum annual elective deferral limit	$19,500	$19,000
401(k), 403(b), or 457 plans catch-up contribution limit for individuals aged 50 or over	$6,500	$6,000
Defined contribution plan annual limit	Lesser of: $57,000, or 100% of compensation	Lesser of: $56,000, or 100% of compensation
SIMPLE maximum annual elective deferral limit	$13,500	$13,000
SIMPLE 401(k) or SIMPLE IRA catch-up contribution limit for individuals aged 50 or over	$3,000	$3,000
Traditional IRA contribution limit	Lesser of: $6,000, or 100% of compensation	Lesser of: $6,000, or 100% of compensation
Traditional IRA catch-up contribution limit for individuals aged 50 or over	$1,000	$1,000
Defined Benefit plan annual limit under section 415	$230,000	$225,000
Annual allowable compensation limit for deduction, benefit and contribution purposes	$285,000	$280,000
Highly Compensated Employee	$130,000*	$125,000*
Key Employee/officer in a top heavy plan	$185,000	$180,000
Income subject to Social Security tax	$137,700	$132,900

 

*Applies for determining Highly Compensated Employees for the 2020 plan year.

Limits stated above are subject to the provisions of the plan. Refer to your plan document or contact your plan consultant (TPA) for more information.

The content of this document is for general information only and is believed to be accurate and reliable as of posting date but may be subject to change.

Online retailer Amazon recently announced that you can now use your flexible spending account (FSA) or health savings accounts (HSA) to purchase eligible medical products on its site. Amazon’s FSA and HSA stores enable you to add your respective health payment card to the site and shop for your eligible products as you would shop for any other item.

Some examples of eligible medical expenses include the following:

• Bandages
• Eyeglasses
• Blood glucose monitors

For more information about using your respective health payment card through Amazon, read more here.