Every week The Friday Five will bring you interesting news and information from around the insurance industry.
Colorado Hailstorms Lead to Skyrocketing Insured Losses
The hailstorms that hit Northern Colorado and the Denver-metro just over a week ago carried a $276.4 million insurance price tag. The storms followed a Southern Colorado hailstorm a week earlier that caused an estimated $169 million in insured losses. There are two things to note about the two storms: peak hail season in Colorado is just getting started, and rising insurance premiums are probably on a lot of people’s minds. The state typically gets hail from April through September, with hailstorms peaking in June and July. The storms usually produce golf ball sized hail, but the recent storms have brought baseball-sized and larger chunks of hail. Also attributed to rising damage costs are newer cars with more automation, which are more expensive to repair and often take longer to fix. Read Don Jergler’s Insurance Journal article, Fury of Hailstorms Battered Colorado, Insured Losses ‘Skyrocketing’.
Millennials Not Really Interested in Autonomous Cars
From PR Newswire: A new survey on cars, driving and autonomous vehicles challenges the conventional wisdom about the nation’s largest generation and suggests the demise of the car among millennials was overstated during the recession. Long thought to be less interested in vehicle ownership and driving, 81 percent of millennial drivers taking part in the nationwide survey said they like, love or are passionate about driving, in line with Gen Xers (78 percent) and baby boomers (79 percent). Fifty-seven percent of all drivers – including 64 percent of millennials – believe a movement will be needed to preserve the driving experience when autonomous cars are the norm. Read the press release, ‘Why Driving Matters’ survey: Despite image of being indifferent toward cars, millennials like driving and want to see it protected as the age of autonomy nears.
Rapidly Evolving Technology Continues to Disrupt Industry
Excerpted from Stephan Hochburger’s Insurance Journal article, ‘Partnering with Insurtech to Transform Rather Than Disrupt Insurance’: Historically, the insurance industry has operated more slowly than less regulated industries in terms of new product development. Since insurance rates have to be risk-adequate, fair and nondiscriminatory, the rate assumptions underlying these new products were based on the sound mathematical analysis of the past predicting the future. Today, the insurance industry is being confronted, at a seemingly ever-increasing pace, with new exposures that require the rapid development of new insurance products and service solutions.
Hurricane Season Sleepy So Far
Excerpted from Dennis Mersereau’s Forbes article, Atlantic Hurricane Season Snoozing as June Comes to a Close: No news is good news when it comes to hurricanes. The Atlantic hurricane season is about as quiet as it can get for this time of the year. We’ve only had one named storm so far—Alberto—and it formed before the official start of the season. It’s common to go long stretches without any tropical activity during the early summer months when the season is just beginning. We’re still more than two months from the historical peak of hurricane season.
Millennials Advised to Buy Life Insurance
Excerpted from ‘Why life insurance is utmost important to Millennials’ on FinancialExpress.com: Getting the right life insurance policy is crucial for any Millennial who is looking to build a strong financial future for himself and his prospective families. However, being preoccupied with paying off student loans, kick-starting their careers and maintaining their social profiles, Millennials are not able to dedicate much time to life insurance. Understanding the nuances of financial planning and the importance of life insurance in that, is crucial for the younger generation. Known to become one of the wealthiest generations and with improving standards of living, the Millennials could do well with an adequate level of life insurance in their financial portfolio.