Articles

Today’s Hot Markets: Buyers Hungry For EPLI, Cyber and More

by Andrea Wells & Amy O'Connor

Insurance Journal examined industries experiencing changes, challenges, expansions and growth in the past year. Here are five industry sectors and insurance markets that could offer opportunities for agents and brokers in the property/casualty insurance industry in 2018. Employer Liability and Harassment From actors speaking out against Hollywood mogul Harvey Weinstein to thousands of others speaking…

Insurance Research Council: Rate of Uninsured Motorists Rising Nationwide

Nearly one in eight U.S. motorists is driving around uninsured and putting insured drivers at greater risk in the event of an auto accident, according to a study. The study, directed by the Insurance Research Council (IRC) and co-sponsored by The Hanover Insurance Group, found that 13 percent of all U.S. motorists were uninsured in…

What’s Inflating Agribusiness Insurance Costs?

Agribusiness clients are acutely aware of the high premiums they pay for workers’ compensation, premises liability, health insurance and the steps they can take to mitigate those costs. On the other hand, automobile liability has historically been a low-cost, low-visibility afterthought. Not anymore. The risk associated with catastrophic vehicle-related losses is on the radar of…

SMEs Underestimate Cyber Risks Which Could Prove ‘Fatal’: Allianz Report

by L.S. Howard

Small- and medium-sized enterprises are waking up to the realities of cyber risks but still underestimate their exposures, according to a report published by Allianz Global Corporate & Specialty (AGCS). For medium-sized companies with annual revenues between €250 million ($308.9 million) and €500 million ($617.8 million), cyber incidents rank as the top risk for the…

How Bad Was P/C Insurers’ Underwriting Loss in 2017?

The U.S. property/casualty industry recorded a net underwriting loss of $23.5 billion for year-end 2017, according to preliminary results from A.M. Best. That was $18 billion bigger than the underwriting loss in 2016. The 2017 underwriting loss was mainly due to an estimated $52.9 billion paid out for catastrophes, more than double what P/C insurers…

5 Strategies for Success in Small Business Market

The small business market is big. The U.S. small commercial market represents about one-third of the total commercial lines market and generates between $99 billion and $103 billion in direct written premium, according to a 2016 McKinsey & Co. report. It could be a much bigger market as more businesses are being started. Since 1994,…

On the Water: As Boating Season Kicks Off, Help Insureds Prepare

Boat show season is well under way and this year will ring in as another strong year for new boat sales – that’s good news for insurance professionals writing boats. The close of 2017 marked the sixth consecutive year of growth in new boat sales and recreational boating expenditures, according to the National Marine Manufacturers…

Medical Marijuana Gaining Favor as Treatment in Workers’ Compensation

Though states and the federal government remain at odds on marijuana legalization, the drug is gaining traction as a viable treatment in workers’ compensation claims. In a recent discussion with Claims Journal, Brian Allen, vice president of government affairs for Mitchell, and Mark Pew, senior vice president of PRIUM, a division of Genex Services LLC,…

Commercial Auto Market Still Facing Uphill Climb

The difficult job of moving commercial auto insurance to a profitable place has not gotten any easier. More vehicles on the road thanks to a rebounding economy, more miles driven, distracted drivers and “nuclear” verdicts are all adding to troubling performance trends in the commercial auto segment. That’s not all. “At an industry level, we…

What to Expect in Workers’ Compensation Pricing in 2018

Workers’ compensation rates in 2018 will be mixed, with some programs seeing pricing flat to down and others seeing spikes, according to a market prediction from the broker USI. In other words, market trends should continue as they did in 2017, according to the USI report. “In 2017, we saw a continued downward trend in…

EPLI Claims Reach Tipping Point Amid Anti-Sexual Harassment Movement

From Hollywood mogul Harvey Weinstein to famed television journalist Matt Lauer, to thousands of others speaking out through the social media movement #MeToo, sexual harassment allegations from individuals who claim to have been victimized by their employers and colleagues continue to surface. The insurance industry is expecting a wave of employment practices liability insurance (EPLI)…

Top 10 Employment Discrimination Charges in 2017

A total of 84,254 workplace discrimination charges were filed with the Equal Employment Opportunity Commission (EEOC) nationwide during fiscal year (FY) 2017, according to the federal agency. The EEOC said it secured $398 million for victims in the private sector and state and local government workplaces through voluntary resolutions and litigation. The enforcement and litigation…

Consolidation Continues: The Squeezing of Wholesale Brokers

by Andrea Wells

Wholesale insurance brokers have been selling off their businesses and it’s not because they are all ready to retire. As in the retail agency segment, consolidation among wholesale brokerages is being driven by buyers with plenty of money to spend, the fast pace of technological changes and aging owners. But more wholesalers are also deciding…

Former U.S. Security Expert: 5 Ways the Insurance Industry Can Improve Cybersecurity

“The insurance industry has a great record of solving problems where government regulation didn’t because the government either didn’t know how to regulate, or the government wouldn’t regulate,” Richard A. Clarke, former National Coordinator for Security, Infrastructure Protection and Counter-Terrorism for the United States, told attendees at a recent cybersecurity insurance forum in Santa Clara,…

Experts: Parametric Insurance Role to Expand, Including for U.S. Disasters

by Denise Johnson

Recent catastrophic losses due to extreme weather events have led to a growing interest in parametric insurance in the U.S., according to industry experts. Parametric coverage is also gaining traction as hazard modeling continues to improve, weather stations more accurately gauge wind speeds and satellites snap images that reveal the extent of flood damage. Some…