Climate/Change/Sustainability/ESG
Tropical Storm Alberto: The first named storm of 2024 hurricane season
An enormous storm system sweeping across the Gulf of Mexico strengthened Wednesday into Tropical Storm Alberto, the first named storm of the 2024 Atlantic hurricane season, as parts of Texas braced for almost a foot of rain. Areas of Mexico could be deluged with 20 inches.
The National Hurricane Center issued a tropical storm warning for the Texas coast from San Luis Pass south to the mouth of the Rio Grande River. Gov. Greg Abbott issued a disaster declaration for 51 counties and activated three platoons of the Texas National Guard, including more than 40 personnel, 20 vehicles and Chinook helicopters.
"Several hazards will be felt over South Texas through Thursday due to the large extent and slow movement of this system," the National Weather Service in Corpus Christi warned.
The Era of Super-Wild Weather Is Already Here
Wildfires in Canada that burned continuously for over a year. Floods that brought Dubai to a standstill. Deadly heat blanketing the streets of New Delhi. The first half of 2024 has laid bare the catastrophic extremes that now characterize the rapidly changing climate on every continent.
This week, millions of people along the eastern seaboard of the US — the country’s most populated coastal region — will swelter under a heat dome. Temperatures in Manhattan’s Central Park are set to reach 95F (35C) by Friday. At the southern end of the coast, meanwhile, Florida is in its second week of battling torrential rainfall so intense near Sarasota that it has odds of occurring just once in 500 to 1,000 years. Damages could top $1 billion.
Lightning Caused $1.2 Billion in US Homeowners Claim Payouts in 2023; Severity Trends Upward for the Year
More than $1.2 billion in lightning-caused U.S. homeowners insurance claims were paid out in 2023 to more than 70,000 policyholders, with $194 million attributable to Texas alone, according to the Insurance Information Institute (Triple-I.).
Based on national insurance claims data compiled to coincide with Lightning Safety Awareness Week (June 23-29, 2024), the Triple-I estimates that:
The total value of lightning-caused U.S. homeowners insurance claims was up more than 30% in 2023 ($1.27 billion) from 2022 ($950 million).
The number of lightning-caused U.S. homeowners insurance claims increased by 13.8% between 2022 and 2023, from 62,189 to 70,787, with numbers from the top 19 claims states contributing to more than half (57%) of the total.
The average cost per lightning-caused claim increased 14.6% from $15,280 in 2022 to $17,513 in 2023. “Rising inflation, including higher replacement, construction and labor costs impacted claim costs for the year,” said Sean Kevelighan, CEO, Triple-I. “Lightning Safety Awareness Week highlights the dangers lightning poses to life and property and how insurers and policyholders are reducing these risks through effective mitigation efforts.”
Severe convective storms are among the most common, most damaging natural catastrophes in the U.S. The result of warm, moist air rising from the earth, they manifest in various ways, depending on atmospheric conditions – from drenching thunderstorms with lightning, to tornadoes, hail, or destructive straight-line winds.
News
CDK outage: Car dealerships' software shut down after cyber attack
A cyber attack on software provider CDK Global upended operations at car dealerships across the U.S. on Wednesday.
CDK spokesperson Lisa Finney said the company shut down most of its systems “out of an abundance of caution" for customers. By Wednesday afternoon, the company had restored its core document management system and digital retailing solutions.
"We are continuing to conduct extensive tests on all other applications, and we will provide updates as we bring those applications back online," Finney said in an emailed statement.
Finney did not respond to questions on how many dealerships were impacted, but CDK’s website says the company works with more than 15,000 retail locations across North America.
Homeowners brace for 14% insurance rate hike as insurer tries to stabilise market
In Florida, homeowners may soon face a significant increase in their insurance premiums, as the Board of Governors of troubled insurer of last resort Citizens Insurance has approved a substantial 14% rate hike. This increase, the highest allowed by the state, aims to stabilize Florida's insurance market and reduce the financial burden on Citizens Insurance, the state’s insurer of last resort. The state’s governor, Ron DeSantis has referred to the insurer as “insolvent” in the past.
Recent years have seen Citizens become the largest property insurer in Florida, responsible for 18% of the market, but state officials have been actively working to transfer policies from Citizens to private insurers to mitigate financial risks associated with major hurricanes. Since October, over 400,000 policies have transitioned to the private market. "We've seen more than 400,000 Citizens policies move to the private market. Why is that a good thing? Number one, it eliminates risk exposure for Citizens, but number two, it shows the private market is healthier," explained Mark Friedlander from the Insurance Information Institute.
Friedlander emphasized that this rate hike is essential for enhancing the competitiveness of Florida’s insurance market. "You are purchasing insurance from Citizens at a discounted rate. Many people may not think that; they think 'I'm paying so much, what are you talking about?' But you are buying Citizens Insurance at an artificially low rate."
West Palm Beach homeowner Laura Bongarzone has felt the impact of rising insurance costs firsthand, telling CBS12 news that she had seen her premiums that were $2,800 in 2020 jump to $5987 this year.
Research
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Take Cover: Lightning Caused $1.2B in Homeowners Claims in 2023, Says Triple-I
Damage to U.S. homes due to lightning resulted in $1.2 billion in homeowners insurance claims in 2023, up 30% from 2022..
The number of lightning-caused U.S. homeowners insurance claims increased by 13.8% over 2022, with numbers from the top 19 claims states contributing to 57% of the total, according to the Insurance Information Institute (Triple-I)
Personal lines insurance: A difficult market - WTW
It was not that long ago that obtaining personal insurance was a relatively straightforward process. In most areas of the country homeowners and drivers could easily secure affordable policies with comprehensive coverage from a variety of insurers. Shopping for insurance often meant comparing a few quotes and choosing the best option without much hassle. The market was competitive, and policyholders benefited from reasonable premiums and broad coverage.
Fast forward to today and the landscape has dramatically shifted. The personal lines insurance market, in a hard market cycle for several years now, is facing even more significant and severe challenges in almost every region of the country. Factors such as on-going catastrophic weather events like the recent multiple convective storms in the Midwest U.S., high repair costs, stubborn inflation impacting building material and auto parts, excessive litigation coupled with social inflation, reinsurance costs and restrictions, as well as the prevailing hard market, all are contributing to a more complex and costly environment for policyholders. Below we break down those issues, how they are impacting insureds, and how insurance carriers are reacting.
Home insurance challenges and their impact on insureds Weather and storms Policyholders are increasingly facing higher premiums and deductibles due to the rising frequency and severity of weather events. According to the National Oceanic and Atmospheric Administration, 2023 saw a record 28 $1 billion catastrophic losses in a single year. 2024 is on track to be just as bad as well as predicted to deliver a higher that usual number of hurricanes. Tornados, severe thunderstorms, hail, floods and other damaging events have led to a surge in claims, which in turn have driven up the cost and the availability of home insurance. These types of weather events are not only happening in traditional high-risk areas like Florida and other coastal communities, but also in other regions and states that once were considered low risk and safe. Now homeowners are finding it increasingly difficult to obtain affordable coverage and many more face policy cancellations.
Commentary/Opinion
Don’t Get Caught Up in the Buzzwords | Insurance Thought Leadership
Someone entering the industry in a first job capacity could easily be overwhelmed by the “alphabet soup” that is the jargon of insurance.
Seriously, what does it mean for a business to “invest in a modern data integration platform that transforms processes and enhances the company’s solution stack”?
Buzzwords and abbreviations aside, the baseline translation must have real, tangible value. In this instance, the meaning behind the buzzwords is about investing in a solution that speeds digital transformation by operationalizing big data and automating processes for a competitive edge.
So, yes, even the explanation can sound like a collection of acronyms and abbreviations that explain very little. And insurance companies, agents, brokers, managing general agencies (MGAs), service providers, vendor partners and policyholders alike must be able to make sense of the most commonly used buzzwords and provide a translation that will help even a novice navigate the data integration space.
Jamie Peers is vice president of Synatic
InsurTech/M&A/Finance💰/Collaboration
SafetyCulture looks to secure US capacity
SafetyCulture Care MGA is working on securing new underwriting capacity and partnerships to expand into the US and UK.
In 2023, we reported that The Hartford was collaborating with this MGA. However, recent communications suggest this partnership might no longer be in place as The Hartford logo is no longer displayed via SafetyCulture’s site.
SafetyCulture Care was launched in Australia three years ago to utilize data and insights from SafetyCulture, a global technology company that provides digital tools and solutions designed to enhance workplace safety, to prioritize preventive measures and “operational excellence.” Last year, it launched a commercial package product in collaboration with Allianz. This product offers higher coverage limits, catering to larger market segments.
6 top Insurance Claims companies and startups in Israel in 2024
INSURANCE CLAIMS COMPANIES SNAPSHOT
We're tracking Leo Chief of Stuff, Click-Ins and GeoX Innovations
Leo Chief of Stuff, Click-Ins and more Insurance Claims companies in Israel from the F6S community. Insurance Claims forms part of the Legal industry, which is the 51st most popular industry and market group. If you're interested in the Legal market, also check out the top Legal Services, Legal Support, LegalTech, Legal Compliance or Corporate Law companies.
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Events
ITC Vegas 2024 - The world’s largest gathering of insurance innovation
Event Date: Tuesday, October 15 – Thursday, October 17, 2024
Event Location: Mandalay Bay Convention Center 3950 Las Vegas Blvd S Las Vegas, NV 89119
ITC Vegas combines unbeatable networking with what’s new and next, ensuring your time will be spent meeting more people, sourcing more solutions, and creating valuable partnerships.
Discover solutions to your biggest challenges, gain access to unique and meaningful education, and meet the insurance industry’s best and brightest. Join the insurance event that doesn’t just bring the industry together – it moves the entire industry forward.
The future of insurance is here – at ITC Vegas. If you aren’t here, you are missing out on the conversations that are propelling the industry forward