Articles

Experts: Whether Public or Private, Flood Insurance Is a Must

Tropical Storm Imelda hit the Texas Gulf Coast on Sept. 17, 2019, as a fairly low-level tropical storm but that doesn't mean it was an inexpensive one in terms of property damage, especially with regard to flooding. Imelda drenched Southeast Texas for three days, saturating some areas with as much as 43 inches of rain. The National Flood Insurance Program (NFIP) paid out around $738 million on 11,...

What the Construction Market Could Look Like in a Post-Pandemic World

The construction industry is one segment of the economy that could emerge from the pandemic stronger. That's good news for construction insurance experts. But moving forward comes with a few challenges as contractors adjust to jobsites in a COVID-19 world. Danette Beck, national construction practice leader at Valhalla, N.Y.-based USI Insurance Services, says her construction clients are tackling...

AM Best: Coronavirus Could Further Stress an Already-Stressed D&O Insurance Market

Players should expect the directors and officers insurance market to "undergo radical changes" based on 2019 results and the "unprecedented turbulence" created by the COVID-19 pandemic, according to an A.M. Best report. A.M. Best expects that the efforts to address rising litigation and the market hardening that have been going on for a few years to continue for some time, with increases likely to...

Report: Insurance Regulators Should Tackle Climate Change 'Systemic Risk'

Climate change is a systemic risk with wide-ranging potential physical impacts, according to a new report that also serves as a call-to-action for U.S financial regulators to do more to deal with a changing climate. An eventual transition to a net-zero carbon economy and "other socio-economic ripples" are likely to manifest in cumulative and unexpected ways and are even now creating risks for U.S....

Survey: Pandemic Raised Bar for P/C Insurers' Online Service, Shopping Experience

Significant investments in direct-to-consumer website and mobile design have helped property/casualty insurance companies improve their digital service and shopping experiences. Consultants at J.D. Power say insurers have made across-the-board improvements in clarity of information, but many still struggle with the balance of too much information and a minimalist approach, according to an analysis...

Transparency Is Key for Insurance Agents Handling Coronavirus Claims

Business interruption insurance has been a much-debated topic during the coronavirus crisis, with some businesses already pushing back against virus-related claim denials. Chris Boggs In several cities, groups of businesses have filed lawsuits challenging virus exclusions in their business interruption policies, such as recent claimants in Philadelphia and Chicago. Additionally, legislators in var...

Cybersecurity Expert Tells Industry to 'Better Prepare' Clients for Evolving Ransomware Attacks

The insurance industry has been working to educate policyholders about the cyber risks their businesses face for many years, but the increasing frequency of ransomware attacks on businesses and municipalities is elevating this ever-changing risk to a new level that experts, including insurers, are unsure how to handle. Cybercrime is nothing new to cyber experts, but the sophistication of cyber att...

P/C Insurer Losses for Event Cancellation Business Could be Substantial: A.M. Best

Although event cancellation insurance represents a very small percentage of overall property/casualty premium, the losses for carriers that write this line of business amid the COVID-19 outbreak still could be significant, according to a new AM Best commentary. Losses on this line of business could have a compounding effect as carriers navigate other lines of business exposed in the pandemic such...