Federated Update Brian Grogan Account Executive Federated Rural Electric Insurance Exchange
Mar 28, 2015
Federated Update
Brian GroganAccount Executive
Federated Rural Electric Insurance Exchange
YEAR END 3/31/2010 2009
Total Assets $351.7 Million $368 Million
Surplus $109.9 Million $ 110 Million
Net Margins $ 12.5 Million $ 4.5 Million
Combined Loss & Expense Ratio 100.9% 98.2%
Finance Update
Property Inventory Valuation
Replacement Cost Value The amount it would take to replace
property with like property of the same quality and construction.
Property Inventory Valuation
Actual Cash Value Working rule-of-thumb definition:
replacement cost new at the time of loss, less depreciation.
Property Inventory Valuation
Book Value The dollar amount of property
shown in a company’s books.
Property Inventory Valuation
Market Value The amount that a piece of property
could be sold for in the open market.
Property Inventory Valuation
Insurance to value Making sure that the amount of
insurance that you carry is enough to cover all of your property at its Replacement Cost Value.
Extra Expense Coverage
Provides reimbursement for additional necessary expenses incurred because of an insured property loss.
$50,000 limit is automatically included in all ARB policies for Extra Expense Coverage. Higher limits are available
Extra Expense Coverage
Do I have enough coverage?
Federated Information Security Liability Program
Could This Happen to You A laptop within your organization containing
sensitive information is lost or stolen Sensitive information is accidentally sent to the
wrong fax number or email address A disgruntled employee steals sensitive
information and sells it to information thieves, or even a competitor
A hacker located in Nigeria hacks into your network and sells all of your customer data leading to customer identity fraud
A vendor whom you outsource services to has a breach to their network which also affects your customer base.
What are the Risks?
The key exposure is disclosure. Examples include the theft of customers’ names with social security numbers, credit card or bank account data; essentially any personally identifiable information.
Utility Companies also have significant exposures through their distribution / member connection and infrastructure systems.
Security & Privacy Liability
• Security Liability is where unencrypted computerized information or paper documents containing personally identifiable non-public information is acquired or accessed by an unauthorized person
• Privacy Liability is the violation of privacy
laws or regulations that permit individuals to control the collection, access, transmission, use, and accuracy of their personally identifiable financial information.
Direct Loss of Data Breaches
Coverage
Individual Policy limit s from 1 to 2 million
Security/Privacy Civil Liability Coverage is for 3rd party defenses
Employee Privacy Coverage Regulatory Defense and Penalties Notification Cost & Crisis
Management
Extended Security
Vendor Risk Management Security Certifications Insiders may be predators Responsibility rests with the data
collector Traditional insurance
Underwriting Process Quote Submission Process:• Basic Application- online• Underwriting examines the
security of the company and points out key concerns• Quotes turned around quickly• Insurance sits above the client’s
best efforts
Where do I go with
questions?
Visit our website:
www.federatedrural.com
Questions can be submitted
electronically when you request
a quote
Your Federated Account
Executive
Investing in the Future of Co-ops
Each year Federated sets aside a portion of our members’ premiums to be returned to statewide associations in support of the safety and training programs provided.
$2.3 Million
Thank You