Spring sometimes brings a strange mix of weather, and this April, in the news as well. As I write, Muammar Gaddafi and Charlie Sheen are playing tug of war with the headlines, techies are foaming at the mouth over the iPad 2 and the Wisconsin governor has signed union-busting legislation that could reintroduce the glory days of the Industrial Revolution.
And then there's the economy. According to the latest figures from ADP, and the U.S. Dept. of Labor, February hiring was up, initial claims for unemployment benefits were down, and small to midsized companies seemed to be leading the charge to economic recovery.
But adding some frozen rain to that sunny forecast, there are also reports of corporate layoffs—not surprisingly in the government and nonprofit sectors with the threat of funding cutbacks. A new report by outplacement consulting firm Challenger, Gray & Christmas Inc. indicates that job cuts at U.S. companies increased in February for the second consecutive month and reached the highest total since March 2010. Retail, government and nonprofit employers were doing most of the layoffs, according to the study.
More frightening was the index of global food prices, which climbed to a new record high in February. The index, which measures monthly price changes for a food basket composed of cereals, oilseeds, dairy, meat and sugar, averaged 236 points in February, up 2.2 percent from January's record and rising for the eighth month in a row.
With Libya still unsettled and growing concerns over more unrest in the Middle East, gas prices are skyrocketing, bringing with it worries about transportation costs and the possibility of pass-along increases in food prices and other essentials—and more worries about the possibility of inflation.
All of these trends have an impact on insurance sales and risk management. For example, government cutbacks are changing the landscape of public entity risk mitigation.
And big changes in Congress could finally pave the way for reform of the long-suffering NFIP flood program. With the heavy flood warnings that are especially prevalent this spring, a fully functioning NFIP would be a welcome sight for homeowners and businesses in most parts of the country.
Finally, on a more positive note, our cover story takes a look at the incredible growth of social media activity by insurers, agents and brokers Whether you're just sticking your toes in the water, or you're already at Michael Phelps levels, this article by Rick Morgan and Charles Wasilewski of the Aartrijk branding firm will give you some great ideas.
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