Articles

Auto Insurance Market to Shrink by 70% by 2050: Report

Autonomous vehicle technology, a rise in on-demand transportation and a shifting of liability to manufacturers will shrink the auto insurance sector by more than 70 percent or $137 billion by 2050, according to updated research by KPMG. In a 2015 report, KPMG said the market would shrink by as much as 60 percent by 2040….

Survey: Agents Suggest How Carriers Can Move from ‘Good’ to ‘Great’

One would expect to see high levels of satisfaction between an independent agency and its top carrier, but that isn’t always the case. Peeling back the layers usually reveals fertile ground for improvement and shows the path to higher performance and more profitable agency-carrier relationships, according to preliminary findings in a new industry study. The…

How Training in Property Underwriting Can Help Cyber Underwriters

by Lisa Doherty

A single cyber event can create multiple exposures with potential effects on one or more of a company’s insurance policies. Cyber underwriters grappling with liability from such events would do well to learn from property underwriters who have a wealth of experience addressing similar issues in the following three areas: Aggregation Exposure Until recently, aggregation…

Ironshore CEO Kelley Talks Goals Under Liberty Mutual

by Mark Hollmer

Longtime Ironshore Inc. CEO Kevin Kelley said his company has a genuine shot at becoming a “premier” specialty property/casualty insurance company, both domestically and abroad, now that Liberty Mutual Insurance is its corporate parent. “I am dead serious,” Kelley said. “We can build a premier specialty property/casualty insurer. By knowing and utilizing the resources of…

5 Tips for Selling Umbrella Insurance

by Frank Medina

Whether you’re new to selling insurance or you’re an expert at it, you may have found umbrella insurance is one of the products that lots of people do not understand, and may need more convincing to buy, than say, homeowner’s insurance or auto insurance. Below are some tips to help you successfully sell umbrella insurance….

Cyber Liability Sales Show More Growth, Price Stability: Report

Businesses are buying more cyber insurance and prices for the coverage are stabilizing, according to a recent survey by The Council of Insurance Agents and Brokers. The survey of about 100 commercial lines brokers found that about 32 percent of respondents’ clients purchased some form of cyber liability and/or data breach coverage in the last…

Commercial Auto: It’s A Long Road Ahead to Profitability

The commercial auto market has a long road ahead to reach profitability after five consecutive years of underwriting losses from 2011-2015. While many insurers upped rates in 2016, the year appears to be coming in with another significant underwriting loss. There isn’t a fix-all solution for the industry to get back on track, experts say….

Agency E&O Exposures to Watch: Certificates, Carrier Ratings and Alternative Markets

It seems agencies today have more challenges than ever. Below are three tips to reduce errors and omissions (E&O) exposures. 1. Send Certificates of Insurance I would love to share with you a story regarding a multinational company that demanded they be listed as an additional insured on dozens, maybe even hundreds or thousands, of…

Top 10 Technical Fouls to Avoid When Filing Environmental Claims

Claims are where the rubber meets the road for an insurance policy. For some lines of coverage, like workers’ compensation, the protocol for filing claims is routine and automated, with incidents emailed or faxed into a central insurance company location. For others, like environmental policies, claims are infrequent and usually severe. This can present a…

Report: Agency Organic Growth Under Pressure

Agencies and brokerage firms reported that their organic growth fell to 3.9 percent in the first quarter of 2017, the weakest growth rate since 2011. According to Reagan Consulting’s Organic Growth and Profitability (OGP) Survey, the drop had a lot to do with a sluggish economy in the first quarter. “Soft property/casualty insurance pricing certainly…

What to Know About Underwriting Restaurants & Bars

Liquor liability claims are on the rise for the bar and nightclub sector. The number of insurance carriers willing to write tough to place establishments has dwindled fast, according to Marc Adler, Managing Director, Burns & Wilcox Brokerage in Scottsdale, Ariz. “Liquor liability claims have increased. Assault and battery claims have increased so underwriting approaches…

Carriers Turn to Agents As Auto Insurance Sales Stagnate: J.D. Power

Amid a second straight year of stagnant auto insurance shopping activity and modest rate increases, auto insurance companies have grown increasingly reliant on great customer service, personalized advice and strong agents to win over their customers, according to the J.D. Power 2017 U.S. Insurance Shopping Study. With average premiums increasing by a modest 2-3 percent…

Report: How Firms Rate on Cyber Readiness and Why Some Don’t Buy Coverage

A study of 3,000 companies in the UK, U.S. and Germany, reveals that more than half (53 percent) of businesses in the three countries are ill-prepared to deal with cyber-attacks. Fewer than one-third (30 percent) qualify as “expert” in overall cyber readiness. The survey, conducted for specialist insurer Hiscox, assessed firms according to their readiness…

Hippo Launches with Promise of 60-Second Homeowners Insurance Quote

An insuretech company launched in California today with the promise of providing online homeowners insurance quotes in 60 seconds in what the Mountain View, Calif.-based company is calling “the most fundamental redesign of home insurance in recent times.” Hippo Insurance announced its launch in California and is offering what it says is “a vastly more…

Cyber Insurance: Many Choices Now That There Is No Choice

Every organization, of every size and operational orientation, needs cyber insurance to manage its exposures in this age of networked information. That was one thing speakers agreed on at the recent 2017 Cyber Liability Symposium held by the Professional Liability Underwriting Society (PLUS). No organization is off the radar for bad actors who relentlessly seek…