Insurance litigation increased 30% in 2022  June 23rd 2023

Insurance litigation increased 30% in 2022

Business liability, hurricane and home insurance cases were the major drivers of the increase.

In 2022, insurance cases litigated in federal district courts increased 30% compared with the year prior, according to Lex Machina. In total, there were more than 18,912 insurance cases litigated in federal district courts this past year.

Overall, $381 million in total damages were awarded across 123 cases in 2022. Business liability, hurricane and home insurance cases were the major drivers of the increase.

Wearable technology and how it's revolutionizing the workers' comp space

This article was produced in partnership with AmTrust.

Desmond Devoy, of Insurance Business America, sat down with Woody Dwyer, director of loss control at AmTrust Financial Services, about the emerging technology that can make workplaces safer and pre-emptively reduce workers’ compensation claims.

Wearable technology the size of a cell phone and smaller can help prevent workers’ compensation claims before they become an issue by providing real-time insight.

A recent webinar by AmTrust Financial Services – available now on demand - helped brokers learn more about the technology being developed, and currently available, that can help their clients keep employees safe, and lessen workers’ comp interactions.

“There’s a wearable sensor that is like the size of a smartphone that you wear,” explained Woody Dwyer (pictured), director of loss control with AmTrust. It sits in a harness or on your belt and “measures a number of things from ergonomic risk factors to ambient temperature to noise.”

For the companies that utilize these wearable sensors, there will need to be accommodations made – such as possibly boosting the power of Wi-Fi on site.

Technology versus the human touch – why it doesn't have to be one or the other

This article was produced in partnership with Duck Creek Technologies.

Desmond Devoy, of Insurance Business America, sat down with Sasha Korol, senior director of research and innovation at Duck Creek Technologies, to discuss the results of a worldwide survey looking at how consumers viewed insurance.

People need people, and a new global survey has found that, when it comes to communicating with their insurance companies, many still want that human touch.

In Duck Creek Technologies’ newly-released “Global Consumer Insurance Insights” survey for 2023, the second-annual report underlined that while technology is here to stay, people still have a massive role to play. The survey found that 44% of consumers would prefer to interact with a human – up from 35% in 2022 – once a policy is in place.

Pennsylvania governor signs insurance data security act

Pennsylvania governor Josh Shapiro has signed into law a bill designed to safeguard the insurance industry from cyber threats.

Pennsylvania Insurance Data Security Act, also known as House Bill 739, was signed last week as Act 2 of 2023 after it passed both the Pennsylvania House and Senate with unanimous, bipartisan support.

Under the new law, insurance licensees, including companies and individuals (with certain exceptions for small businesses), are now required to perform thorough risk assessments to identify potential cyber threats and determine the likelihood and potential damage associated with these threats.

Fitch: US Insurance Market Forecast to Withstand Losses From Large Hurricane This Year

With ample capital, Fitch Ratings’ latest annual ‘U.S. Hurricane Season’ report indicates U.S. property and casualty (P/C) and reinsurers can absorb losses if a large hurricane makes landfall this year.

Hurricane Ian was the only storm to touch down in the US in 2022 but brought sizeable insured losses totaling $60 billion, turning the year into one of the costliest on record.

The homeowners insurance market in Florida bore the brunt, with direct loss ratio climbing to more than 125 percent.

“Several of the largest homeowners’ insurers in Florida have actively reduced policies in force through significant rate adjustments, targeted non-renewals and enhanced underwriting restrictions as a way to manage overall exposure,” said Senior Director Chris Grimes.

In April, the Florida Office of Insurance Regulation levied a 1 percent emergency assessment on all covered lines of business except auto, according to Fitch, in order to secure funds to cover claims payments relating to the liquidation of United Property & Casualty Insurance Company.

Preliminary hurricane forecasts for the year indicate a below average season is expected, “with the probability of a storm hitting the U.S. Atlantic coast comparable to long-term historical averages,” the report stated.

June/July midyear 2023 reinsurance renewals will be challenging for Florida primary underwriters, according to the report, due to increased selectivity and the many companies that have “either partially or completely withdrawn from the property catastrophe market.”

“Sharp changes in reinsurance pricing and underwriting conditions have improved market profit potential, spurring actions indicative of renewed optimism by several established carriers,” said Senior Director Brian Schneider.