News
AccuWeather Increases Total Damage and Economic Loss Estimate From Helene to Between $225B-$250B
AccuWeather Increases Total Damage and Economic Loss Estimate From Helene to Between $225B-$250B
AccuWeather has increased its estimate of the total damage and economic loss from Hurricane Helene in the U.S. to between $225 billion and $250 billion.
The update accounts for new verified information, including the loss of life, the immediate and long-term costs of healthcare for storm survivors and injured first responders, extended power outages, infrastructure reconstruction projects for utilities, highways, bridges and railroad tracks, major business and travel disruptions, as well as long-term losses to tourism, technology, renewable energy and other industries across the southern Appalachians and southeastern U.S., according to AccuWeather.
Hurricane Helene Likely To Roil Florida's Already Imperiled Insurance Market
Following the storm's path of destruction through Florida and states further north, financial damage is projected to reach as high as $34 billion, which raises the need for clients to tap lawyers for multiple reasons.
Following the storm's path of destruction through Florida and states further north, financial damage is projected to reach as high as $34 billion, which raises the need for clients to tap lawyers for multiple reasons.
Commentary/Opinion
Autonomous vehicles could render personal auto insurance obsolete by 2044, new report finds
Welcome back to the latest episode of The Future of Automotive on CBT News, where we put recent automotive and mobility news into the context of the broader themes impacting the industry
I’m Steve Greenfield from Automotive Ventures, and I’m glad that you could join us.
This week’s lead story has to do with how autonomous vehicles could dramatically disrupt personal automotive insurance.
According to a brand new report from Morningstar, self-driving cars could make personal auto insurance largely obsolete within 20 years. A more likely, moderate scenario forecasts that personal insurance could remain necessary for a few more decades, until 2060.
The firm’s new report, called “Insuring Autonomy: Analyzing the Implications of Self-Driving Cars for the Auto Insurance Industry,” finds that by 2044, in the most aggressive adoption scenario, most cars on the road could be automated to a level where liability shifts from driver to the auto manufacturer.
Morningstar believes that wide adoption of autonomous vehicles likely means that car insurance would be replaced by product liability insurance, which would ultimately be borne by the auto manufacturers when Level 4 or 5 autonomy is achieved.
How will the 2024 elections impact P&C insurance?
This election could clarify some contentious issues.
The next administration may offer tax incentives or subsidies for green homes and energy-efficient vehicles, which will impact P&C providers
On Nov. 5, 2024, citizens on the United States head to the polls to decide who will sit in the Oval Office come January 20th and who will run the U.S. Congress as well as state government posts.
Besides selecting the country's future leaders, this election also could clarify some contentious issues for the the property and casualty insurance sector and its customers.
Climate/Change/Sustainability/ESG
Tropical Storm Milton to hit Florida as major hurricane
Tropical Storm Milton is expected to continue strengthening significantly before hitting the Florida Peninsula as a major hurricane next week, according to the National Hurricane Center in Miami.
"Given the track over the very deep warm waters of the Gulf of Mexico and little shear for the next couple of days, rapid intensification is explicitly forecast," NHC hurricane specialist Eric Blake said in a Sunday morning update.
Located about 310 miles west-northwest of Progresso, Mexico, Milton was producing sustained winds of 65 mph and moving east-southeast toward the Florida Peninsula as of 10 a.m.
The NHC's latest forecast tracks shows the storm hitting Florida's west coast as a major hurricane sometime Wednesday.
Atlantic Hurricane Activity Predicted to Surge Through Mid-October 2024
Colorado State University’s latest hurricane activity forecast, covering October 1-14, 2024, predicts an extremely active two-week period in the Atlantic.
The forecast indicates a 99% probability of above-normal tropical cyclone activity, driven by multiple storm systems that are currently developing or already active. This surge in activity is largely attributed to favorable atmospheric conditions, including reduced vertical wind shear and the current phase of the Madden-Julian Oscillation (MJO), which is conducive to storm formation in the Atlantic.
Nowhere in America Is Safe From Climate-Fueled Storms and Fires
Forecasters had warned for days that Hurricane Helene was likely to cause widespread devastation.
But when the powerful storm struck Florida and barreled through the eastern US last week, killing more than 180 people and taking whole communities offline, it still managed to come as a shock.
Florida’s Big Bend, where Helene made landfall, previously went decades without a hurricane strike. In the past year or so, it has now seen three. The western half of North Carolina, once held up as a haven from the worst impacts of climate change, has been paralyzed by floods.
Lauren Rosenthal and Brian K. Sullivan
Legal System Abuse/Social Inflation
Companies ask US judiciary group to force lawsuit funding disclosures
More than 100 major companies from the technology, pharmaceutical, automotive and other sectors have urged the U.S. judiciary to adopt a nationwide rule requiring disclosure of third-party litigation funding in lawsuits.
Companies including Amazon.com, Google, Cisco, Meta, Comcast, Exxon, Zurich, Eli Lilly, Bayer, Ford, Pfizer and Novartis submitted the letter, opens new tab on Wednesday to the federal courts’ Advisory Committee on Civil Rules, in advance of a hearing by the committee next week.
Litigation funding, where a financier backs clients' cases in exchange for a cut of an eventual settlement or judgment, has become a multibillion-dollar industry in recent years.
Some U.S. courts require disclosure of outside funding, but there is no uniformity across the judiciary.
The companies either had no immediate comment or did not immediately respond to a request for comment about the letter, which was organized by defense-focused Lawyers for Civil Justice.
Legal system abuse drives rising costs for US households and businesses – APCIA
The rising cost of doing business, owning a home, and driving a car in the US is not solely due to inflation, according to insights from the American Property Casualty Insurance Association (APCIA).
Legal system abuse, driven by aggressive attorney advertising, frivolous lawsuits, and third-party litigation funding, is contributing to a growing litigious environment that is pushing up costs for both consumers and businesses. This trend has placed a burden on state economies, sparking calls for legal reforms aimed at curbing these rising costs.
Data provided by APCIA highlights the scope of the issue. In 2023, plaintiff lawyers spent $2.4 billion on more than 26 million local legal services ads, a more than 5% increase from the previous year.
Additionally, investments in US litigation funding climbed to $15.2 billion in 2023. APCIA notes that this influx of funds from investors looking to profit from others' lawsuits has exacerbated the strain on the legal system, further driving up costs.
Events
ITC Vegas 2024 - The world’s largest gathering of insurance innovation
Insurtech Consulting and our ‘Connected’ newsletter are proud media partners of ITC Vegas 2024
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
Register now and save, $200 off. Use promo code 200ITC1813 Code not valid on Independent Agent, Startup, Groups, or LATAM tickets. Discounts only apply to new registrations.
Announcements
Duck Creek Launches Payments Facilitator End-to-End Payment Solution | Insurance Innovation Reporter
The new solution simplifies insurance carriers’ payments, delivering secure transaction capabilities as part of the Duck Creek Platform.
Duck Creek Technologies (Boston), a major provider of a core system/insurance platform and related solutions for the property/casualty industry, has introduced its latest insurance-focused payments solution, the Duck Creek Payments Facilitator. The vendor describes the new offering as a modern, end-to-end payment solution that caters to the nuances of payments within insurance by providing carriers with access to digital payment methods for both collecting and disbursing funds.
People
CCC Intelligent Solutions reports retirement of CSDO, departure of CCCSO
In a regulatory filing, CCC Intelligent Solutions Holdings announced the retirement of Mary Jo Prigge and the departure of Michael Silva.
Mary Jo Prigge, Executive Vice President, Chief Service Delivery Officer of the company notified the company that she will retire from her role with the company no later than December 31, and the firm expects that, following her retirement from this role, Ms. Prigge will continue in a part-time advisory capacity to senior management.
Michael Silva, Executive Vice President, Chief Commercial & Customer Success Officer of the company will be departing the company due to role elimination effective no later than December 31, 2024.
“As a result, the company is consolidating their roles in order to streamline its operations in continued support of its customers and to deliver on our expected long-term growth. An executive search has been initiated to find a leader for this new consolidated role,” the filing stated.
Sidney Wolk obituary: Roadside assistance company founder went big
Sidney Wolk's Cross Country Motor Club started in 1972 and became one of the largest nationwide roadside assistance companies. It is now known as Agero.
In the early 1970s, Sidney Wolk saw an opportunity to offer national, 24-hour, 365-day roadside assistance. He also recognized that foreign brands newer and lesser known to U.S. consumers would benefit from offering “peace of mind” round-the-clock service.
OBITUARY
The Horatio Alger Association mourns the loss of Sidney Wolk, a distinguished 1999 Horatio Alger Award recipient.
Born to Russian immigrants in Boston, Mr. Wolk’s journey from selling newspapers as a child to becoming a successful entrepreneur is a testament to his hard work and perseverance. He dedicated his life to helping others, particularly through his involvement with the Horatio Alger Association, Greater Boston Aid to the Blind and support for youth in need. His legacy will inspire future generations to reach for their dreams and uplift those around them.
We are grateful to Mr. Wolk for his many contributions and extend our deepest condolences to his wife, Deanna, his children, and his friends during this time.