AM Best TV & Audio
AIR Worldwide: Insured Cat Losses Average $100B
The company’s 2020 Global Modeled Catastrophe Losses report helps insurers identify potential growth opportunities. AM Best TV and AM Best Audio report on stories from a number of sectors within the insurance industry.
- February 2021
For modeled events, insurers pay an average of nearly $100 billion in annual catastrophe claims, said Caroline McMullan, manager, AIR Worldwide. Still, many western regions with mature markets for catastrophe risk protection have a sizable protection gap.
Rather than replace traditional insurers, insurtechs have become partners, said George Woods, senior vice president, global strategic advisory, Guy Carpenter.
Frustrated by traditionally low takeup rates for earthquake coverage in western and central states, insurers are devising new types of coverage, broader public-private programs and new approaches to mitigation. When it comes to earthquakes, “sadly, the homeowners will shoulder a significant burden of that loss,” said Andy Tran, senior vice president, Swiss Re America.
The private flood market is poised to help close the flood insurance gap, said John Dickson, president and CEO, Aon Edge. Persistence, innovation, investment and community are the “pillars” of reaching potential policyholders.
Insurers must be careful not to use data to discriminate against customers, said Mitch Wein, senior vice president, research and consulting, Novarica.
Pay-per-mile auto insurance is on the rise, thanks to people driving less during the pandemic, said Liz Rozier, director, auto insurance, LexisNexis Risk Solutions.
Using advanced driver assistance systems (ADAS) lowers bodily injury claims by 27% and property damage claims by 19%, said John Kanet, director, auto vertical market, LexisNexis Risk Solutions. Vehicle architecture, however, can make it difficult to share ADAS information, said Andrew Hart, director, SBD Labs, SBD Automotive, during a recent AM Best TV panel.
As COVID-19 cases continue to increase, so do the number of legal challenges and potential liability claims, according to an AM Best TV panel. “A lot of the claims have been in the business interruption area,” said Laura Foggan, partner, Crowell & Moring’s Washington, D.C., office and chair of the law firm’s Insurance/Reinsurance Group. “The challenge is that property policies are exactly that. They are policies that are designed to cover property losses.”
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D&A Helps Identify Factors Affecting Longevity, Pensions
Industry experts talk with AM Best Audio about the use of data and analytics to address risk, and why many agents are optimistic about 2021.
Jennifer Haid, CEO, Club Vita, explains the various factors that are influencing longevity, and the technology being deployed to address risk.
David Zeornes, business development executive, Aon Programs, discusses a recently released survey showing that 93% of insurance agents are looking at the new year with a “glass half-full” mindset—and why they have such optimism.
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