Can We Take Control of the Industry’s Insurance Destiny?
April 4, 2017
Bob Johnson, NAID CEO
When NAID embarked on the Downstream Data Coverage insurance pathway, it did so primarily because the professional liability coverages members were purchasing did not protect them or their customers. Exclusions of claims resulting from the intentional acts of rogue employees and poor breach coverage language were universal in other policies. Since then, as data protection insurance has been rapidly evolving and competitive, there are policies that have reacted. As a result, some members are finding professional liability coverage they believe is just as good as Downstream Data… and they can get it from their familiar broker too.
Unfortunately, industry professionals who believe another policy “is just as good as Downstream” – whether they are right or wrong about that – are missing the point. If all NAID wanted to do was fix the policy language, it could have done that without creating a new brand.
NAID stated its goal from day one – to create a Captive Insurance group, which would allow it to dramatically lower premiums by establishing a low claims history for a large group of similar services. However, in order to do this, we need to build the “large group” first. NAID is not giving up on this dream for our members.
For those who say, “I got a similar policy for $100 per year less,” two things. One, I implore you to speak with a Downstream Data broker (1.877.710.2498) about today’s coverage and pricing to really compare policies, because that amount of savings on a comparable policy is frankly doubtful. Two, and more importantly, know that while you win a small battle, you are losing the entire war. Your actions are delaying the day when the industry can take control of both premiums and policy language. You are implicit in delaying the day when all can have exactly the right coverage for significantly less than you will ever pay on the open market.
We can take control of the industry’s insurance destiny, when as an industry, we band together. And when we achieve success, those not currently supporting it will also line up to save more money.