Articles

15 Emerging Risks to Watch That Are Not Cyber

by Andrew G. Simpson

When insurance experts are asked what they see as the most important emerging risk for the property/casualty insurance industry, their consensus is cyber in some form. And while cyber obviously poses tremendous risks, some experts are also eyeing a variety of other emerging risks. These include risks inherent in government and insurance policies, not to…

How Technology Startups Are Saving Lives, Property in Construction Segment

by Martha Notaras 

Construction has a major problem: every year, construction sites suffer $11 billion in losses due to damage from fire and water, worker accidents, and theft. In addition, a fifth of all worker deaths in the U.S. – nearly 1,000 in 2016 alone – occur on construction sites. To date, many startups in construction tech have…

What Agents Should Know About the Cryptocurrency Market

by Don Jergler

Cryptocurrency and blockchain entities may seem like a hot market for insurance agents looking to specialize, but right now there are not many insurers willing to write it. Before jumping in, agents would be wise to consider partnering with a wholesale broker with expertise so they can become familiar with the crypto landscape, according to…

How Autonomous Vehicles Will Change Insurance Market

by Denise Johnson

Though it’s estimated that by 2025 auto insurance premiums will drop by $25 billion as a result of the adoption of driverless cars, the insurance market is expected to recover through new lines of coverage, according to a report by market analyst Accenture released last year. In fact, new coverage lines will generate substantially more…

Experts: One of the Biggest Gaps in Cyber is Explaining it to Customers

by Don Jergler

What’s one of the biggest gaps in cyber? Good communication between the insurance industry and customers, who are in need of more than just products to help protect them from risks in the rapidly changing digital world. That was the consensus from a panel of experts speaking last month at the annual PLUS conference in…

Reputation Institute Identifies P/C Insurers with Best Reputations

USAA Insurance has the highest and best overall reputation among insurers, according to a new report from the Reputation Institute. The insurer landed in the top spot based on criteria including strong reputation, relevancy, expressiveness (brand strength, informativeness, relevancy), products and services, governance, citizenship and innovation. USAA topped the 2018 U.S. Insurance RepTrak ranking —…

Market Pressures Lead to Underwriting Losses for Medical Professional Liability Insurers

U.S. medical professional liability insurers reported an underwriting loss again last year, according to Fitch Ratings in a new report that says the results are drawing more scrutiny around reserves that are shrinking. For the second consecutive year, the medical professional liability insurers (MPLI) market reported a statutory underwriting loss, with a 102 combined ratio…

Casualty Losses Provide Impetus for 2019 Rate Firming: Willis Towers Watson

Commercial insurance buyers are facing upward pricing pressure across most lines of business in 2019, driven in part by escalating losses in the casualty insurance market, according to a report by Willis Towers Watson. The report, designed to be a guide for North American insurance buyers preparing for upcoming insurance program renewals, cited a relatively…

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

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…