On April 17, 2019, I attended the Pennsylvania Association of Mutual Insurance Companies (PAMIC) Small Company Eastern Group Meeting at the Pine Barn Inn, located in Danville, Pennsylvania. A few days prior to the meeting, the barn had experienced significant storm damage with tornado’s touching down in Millville and other nearby towns. The experience highlighted the real-life impact and importance of the insurance industry.
If you have not attended the Small Company Meetings previously, I highly recommend you attend. There was a good collection of diverse size Companies and participants attending the meeting, including CEOs, CFOs, COOs, Board of Directors, Agents, and reinsurers. Ron Gallagher, Executive Director of PAMIC, provided a legislative update on current events impacting the Pennsylvania insurance industry.
The following are some key points addressed during the meeting:
- Pennsylvania Insurance Department (PID) Corporate Governance Annual Disclosure (CGAD)
PAMIC recently received a draft of the PID’s Corporate Governance Annual Disclosure template for review. Prior to the meeting, comments had been provided by PAMIC to Joseph DiMemmo, Deputy Insurance Commissioner and others at the PID for review.
- Cybersecurity in the Pennsylvania Legislative Session
Ron informed the group that Commissioner Altman has communicated to PAMIC that cybersecurity will be included in the 2019 Pennsylvania Legislative Session. The team at BSSF has seen several states adopt cybersecurity laws in 2018, one of those states being our neighbors in Ohio. Following the trend, we would expect that Pennsylvania will adopt cybersecurity laws at some point in the future. Ron also discussed that PAMIC has added cybersecurity training as part of the website’s online training for its members.
- Corporate Governance Annual Disclosure at the PAMIC Executive Roundtable
Ron discussed the upcoming PAMIC Executive Roundtable on June 12th and 13th at the Omni Bedford Springs Resort. With the upcoming reporting deadline for Corporate Governance Annual Disclosures on June 1, 2020, the entire agenda of the Executive Roundtable meeting will be focused on CGAD. BSSF will be participating in the education agenda at this meeting.
- Career Exposure for the Insurance Industry
The attendees at the meeting discussed the challenges of exposing students to the insurance industry in order to maintain a pool of future employees and avoid a labor shortage. Ron discussed working with the Insurance Agents and Brokers Association in the future on these efforts.
In conclusion, BSSF is recommending that management consider attending the upcoming PAMIC Executive Roundtable in order to learn some timely information concerning best practices to use in preparation of your Company’s first CGAD filing for Pennsylvania.
ABOUT THE AUTHOR
Scott A. Esworthy, CPA
Scott is a Principal with BSSF, specializing in the audits of property and casualty insurance entities (P&C) and employee benefit plans. His expertise in these areas extends beyond the Central PA region. Scott and his team serve clients in the Mid-Atlantic Region, with a focus in Pennsylvania, New Jersey, Maryland, Delaware, Virginia, Ohio, and New York.