Articles

7 Red Flags to Spot Fraudulent Business Interruption Claims

by Tiffany Couch

Insurance is the safety net that protects individuals and companies in case of damage, theft, injury, illness or loss. Fire, floods, earthquakes, tornadoes and freak accidents can quickly decimate a thriving business. When disaster strikes, business owners turn to their agent or broker to help pick up the pieces. While the majority of business interruption…

Moody’s: What’s Happening, What’s Next for P/C Insurance Pricing

The current pricing environment for property/casualty insurers is “modestly positive,” with commercial and personal auto rates rising by mid-to-high single digits, homeowners and commercial property rates rising by low-to-mid-single digits, and commercial casualty rates showing smaller changes, according to a Moody’s Investors Service rate change and trend survey of insurers it rates. “Through 2019, we…

7 Critical Areas Directors & Officers Should Watch in 2019

by Priya Cherian Huskins 

Risk management involves looking around the corner to spot future threats. When it comes to director and officer liability, the question is this: What’s on the horizon for directors and officers in 2019? Here are seven critical areas of risk management to consider as you plan for 2019. 1. Securities Class Actions on the Rise…

Profitability Issues Remain in Commercial Auto, But Turnaround is Coming

by Mark E. Ruquet

Despite insurers’ best efforts to increase rates to compensate for losses, commercial auto continues to be an unprofitable line. In less than a decade, despite continued increases in premiums, two major carriers have exited the business. The line’s poor performance is said to be the result of years of underpricing for frequency and severity. But…

Travelers Risk Index: Businesses Believe a Cyber Attack is Inevitable

Cyber risks are the No. 2 concern across all business sizes and industries, and the percentage of businesses reporting they have been the victim of a cyber attack has doubled, according to a new industry report by Travelers Cos. The latest results of the 2018 Travelers Risk Index shows that 52 percent of respondents believe…

Moody’s: How U.S. P/C Commercial Insurers Will Fare Through 2019

The outlook for the U.S. property/casualty commercial insurance sector for the next 12 to 18 months remains stable given healthy core earnings and sound balance sheets in the view of analysts at Moody’s Investors Service. “Commercial insurers held up well despite the large catastrophes of 2017 and will generate good core earnings in 2018-19,” says…

Cannabis: Striking a Balance Between Federal and State Laws

by Patrick Wraight

Currently, 30 states and the District of Columbia have legalized the use of cannabis in some form. Some states restrict use to medically necessary uses, while other states have legalized recreational use. Still other states have formally (or informally) de-criminalized its use. The beauty of the American system of government is that the federal government…

The E-merging Risk that Keeps on E-volving: Cyber

6 Reasons Cyber Remains Top Emerging Risk Property/casualty insurance experts may not agree on everything but there is a consensus that the most important emerging risk for the industry remains the five-letter word: CYBER. It is not new, of course, but it stays atop emerging risk lists because of its dynamic and pervasive nature. Insurance…

When Small Business Needs Specialty Insurance

by Bryan Salvatore

Small business used to be associated with small exposures — simple business risks addressed with simple insurance products. However, changing customer needs and expectations, technology advancements, new regulations and evolving legal environment issues have dramatically changed the way small business owners run their companies. Small business is no longer simple. Small-business owners say employment-related issues,…

Report Outlines Climate Change Risks Faced by Insurance Sector

A newly issued report that’s being touted as the “first important review of climate risk by an international financial standard setting body” may get the attention of the insurance community. If it does, mission accomplished. That’s what the report was designed to do, according to its authors. The report is from the International Association of…

Flood Model Changes Help Hiscox Re & ILS Enter U.S. Flood Market

by L.S. Howard

Less than 12 percent of U.S. homeowners have a flood insurance policy, despite the fact that flooding is the country’s most common natural disaster, said Katy Sivyer, underwriter for North America and the Caribbean at Hiscox Re & ILS. This is why Hiscox Re & ILS launched a new U.S. personal lines flood product late…

Cybersecurity Tops D&O Liability Risks: Willis Towers Watson

Cybersecurity is the top directors and officers (D&O) liability concern for organizations today, while claims brought by employees, including claims for harassment or discrimination, and regulatory enforcement risks are also critical D&O exposures. According to Willis Towers Watson’s 2018 Management Liability (Directors and Officers) U.S. Survey, the top D&O risks in the coming year include…

Solving the Condo Coverage Puzzle

Have you ever watched someone try to finish a jigsaw puzzle with pieces missing? There are still a few hundred pieces to place, but there is one open space in the middle of a grove of trees that beckons to be filled. The puzzler spends hours combing through pieces that look like that hole. Eventually,…

Sam Walton’s 10 Rules to Run the Agency

by William Schoeffler & Catherine Oak

Sam Walton built the world’s largest retail store in the world: Walmart. In his autobiography, Sam Walton: Made in America, he detailed some of the keys that helped him build Walmart into an enduring company that has held the number one spot on the Fortune 500 for almost two decades. Walton developed 10 basic rules…

Survey: Conflicts of Interest Top List of Lawyers’ Malpractice Claims

New malpractice claims against lawyers are being driven by inadequate safeguards against conflicts of interest, along with participation in certain expanding and complex practice areas, according to a new study by insurance broker Ames & Gough. In its annual survey of lawyers’ professional liability claims, Ames & Gough examined the trend by polling nine of…