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Holiday Greetings

It's Thursday afternoon, and I'm closing up the Geek Cave for the week. I want to get a head start on my Christmas shopping. Before I go, I just want to thank all of you for the support you've given this blog and the podcast during 2011. I hope you've enjoyed reading and watching as much as I enjoyed creating it.

Whichever of the three major holidays (Christmas, Chanukah and Kwanzaa) you celebrate, or if you don't celebrate any of them, I wish you a happy and blessed time over the next several days. Rest up, because 2012 will be even busier than this year was. Why, someone in the office just told me something about there being an election next year. I wonder if there's anything in the papers about that...

I'll leave you with some holiday giggles, courtesy of an a capella Celtic music group from Denver called Pandora Celtica. If you like this song, I heartily encourage you to check them out. 

Always look on the geek side of life. 

Santa-is-Missing

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This is Indeed a Hairy Proposition

It's fair to say that a surprise announcement coming out of Cincinnati was the mane event in the insurance world yesterday. Head & Shoulders, a leading brand of anti-dandruff shampoo, announced that it has purchased an insurance policy from Lloyd's of London covering Pittsburgh Steelers' safety Troy Polamalu's hair for $1 million. A Lloyd's spokesman described the 29 year-old player's tresses as "truly legendary." Polamalu, who is of Samoan descent, has reportedly not cut his hair in seven years, making it something of a trademark for him, though Steelers fans are also quick to point out his 20 tackles and three interceptions during the 2009 season. I suppose his on-field accomplishments should be noted, but come on -- we're talking about hair that has its own Web site.

I admit it: I'm envious of the underwriters who put this deal together. When I was a commercial lines underwriter, I worked on boring stuff like contractors and factories and shopping malls. No one ever sent me an application for coverage on anyone's hair, let alone hair for which the NFL should invent a new category of holding penalties. This is the height of insurance geekery, the likes of which other insurance challenges cannot compete. Retros? Yawn. Multi-layer property coverage on a downtown Los Angeles skyscraper, including earthquake coverage? Ho-hum. Liability insurance for the entire World Cup tournament? That is so last June. Specialty insurance on an athlete's locks? Now we're talkin'.

As a card-carrying insurance geek, I can't help but contemplate the following questions regarding this stunning development:

• What causes of loss does the policy cover? Dryness? Discoloration? Sudden pattern baldness? Entanglement occuring as Polamalu lays a devastating hit on an unfortunate wide receiver? How did the underwriter negotiate this? "Okay, we'll cover scalp injuries arising out participation in football games, including warm-ups, pre-game excercises, practices, and showers and grooming after the game, but no way am I covering split ends."
• What are the exclusions? Is the policy null and void if he wakes up some morning and decides it's time for a mohawk? What about bad hair days?
• Is there a deductible? If so, is it a flat dollar amount or some percentage of the value of the loss? Does the percentage grow as the amount of the loss grows? "No deductible if it can be fixed in an afternoon at a salon. Anything worse than that, the first five percent is out of pocket."
• How will Lloyd's figure out what a loss is worth? Does it depend on the percentage of hair that's damaged? The true exposure here is the ends. He doesn't appear to have much in the way of bangs, and anyway he's wearing a helmet during those times of maximum threat to his coiffure. Does Head & Shoulders have coverage for potential lost income from sales of Polamalu's specialty shampoo, Hair Endurance for Men?
• Finally, how the heck do you figure out a price for something like this? No matter how the underwriter determined the premium, the price probably makes as little sense as the average airfare. Pump a few drinks into him and I'm sure the underwriter will admit he pulled the price out of his...hat.

Mark August 30, 2010 as a day to remember in insurance history. A new opportunity for insurance professionals everywhere has appeared. A new subject of coverage, a new source of revenue. However, if you're in a position to capitalize on this development, I suggest you do so in a hurry. If it turns out to be merely a fad, you will once again learn that sad lesson of life:

Hair today, gone tomorrow.

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IIABNY Inks Joint Marketing Pact With GEICO

(Apr. 1, 2009 -- DEWITT, NY)  The Independent Insurance Agents & Brokers of New York today announced it has signed an agreement with auto insurer GEICO to form a joint venture. The four-year deal gives the insurance giant access to the not-for-profit trade association’s 1,800 member agencies in return for cash and options on stock in Berkshire Hathaway, GEICO’s parent company. IIABNY did not disclose the amount of the contract, but sources hinted that it is in the eight-figure range.

As part of the agreement, IIABNY will display the GEICO logo along with the Trusted Choice® logo on all web sites, advertisements, letterhead, business cards, and other promotional materials. On top of the payments to New York’s oldest insurance producer trade association, GEICO plans to establish an advertising fund for use by IIABNY members.

“As a long-time admirer of GEICO’s operations, I am very pleased that our two organizations have agreed to work together,” said Neal Sullivan, IIABNY chair of the board and president of Sullivan Insurance Agency in Mahopac. “The professionalism of IIABNY’s member agents combined with GEICO’s advertising prowess and low, low prices will provide a synergy that will benefit both organizations.”

A joint advertisement featuring GEICO’s trademark caveman at a sporting event in the Carrier Dome in Syracuse is planned. IIABNY is headquartered in Dewitt, New York, a Syracuse suburb.

IIABNY President and CEO Dick Poppa said, “A fifteen-minute phone call can save you fifteen percent. In our case, it earned much more than that. We are very pleased to be able to partner with one of the most respected names in insurance.”

“If you believed one word of this, all I can say is happy April Fool’s Day,” Poppa added.

Insurance a Humbug?

If you're like me, you've read Charles Dickens' novel A Christmas Carol more times than you can remember (in fact, I'll probably read it again this week.) Dickens' literary masterpiece has been the subject of hundreds of parodies, satires, and re-tellings, so it was inevitable that someone in the insurance industry would take a crack at it. I whole-heartedly recommend Chris Amrhein's piece in the new issue of American Agent & Broker Magazine. Chris is a long-time IIABNY continuing education instructor, and his piece will bring a little holiday smile to your face and also probably cause you to nod in agreement. Underneath the humor are some valid points. I'm a dedicated technology advocate, always ready to try out new software that looks cool. However, I do think that the efficiencies we've gained from technology have come at a price. That price is careful and personal attention and underwriting of individual risks. I understand why insurers have automated underwriting functions, but this is still a people business. The personal touch is becoming an endangered facet of the business, and that's unfortunate.

At any rate, enjoy Chris's story!