Every week The Friday Five will bring you interesting news and information from around the insurance industry. This week: data insights and fire claims, locating lost life insurance, IoT benefits.
Data insights drive accurate policy pricing for fire claims
California wildfires contributed heavily to making 2017 an expensive year for catastrophe claims, accounting for 30% of all fire loss costs. While 2018’s numbers have yet to be finalized, the recent Camp and Woolsey fires indicate that the trend is only worsening. Fire peril is increasing sharply in both severity and proportion of catastrophe claims. Property & casualty carriers, therefore, need to rethink their fire-specific products with more effective geographic and fire-data-driven approaches. Read more in Data insights and fire claims by George Hosfield and Bill Brower for PropertyCasualty360.
Insurers or consumers: who benefits from IoT?
Excerpted from Pat Rabbitte’s article on The Sociable, Who will benefit from IoT disruption in home insurance?: The Internet of Things (IoT) has shown much promise to disrupt many industries, but for home insurance, who will benefit most, customers or agencies? When it comes to home insurance, there has been little in the way of innovation in recent years. However, at the consumer end of the IoT market, the use of home sensors is becoming popular. A network of household sensors could also be utilized to bring about improvements in customer service within the insurance industry.
Locating missing life insurance policies
Excerpted from Life insurance locator helps people find lost life insurance policies for free by Deb Stanley for Channel 7 Denver: When a loved one passes away, it can be difficult to find their life insurance policies. While some people put all their important documents in one place, others do not. But the State of Colorado has help. The life insurance policy locator can help beneficiaries find old life insurance policies.
Insurers still guarded about marijuana coverage
As more and more states legalize marijuana, the industry is an opportunity for insurers. But there are still risks in play that could limit wider carrier participation according to a new report. One of the key barriers is the federal government still classifies it as a controlled substance, continuing its status as an illegal drug even as individual states increasingly legalize its use. Because marijuana is not legal at the federal level, some carriers see marijuana insurance as a “debatable” move. Read more in Insurers Remain Cautious About Marijuana Insurance Market on InsuranceJournal.com.
Congresswoman wades in on consumer data and auto insurance
Excerpted from Zachary Warmbrodt’s Politico article, Tlaib takes on auto insurers in fight over consumer data: Rep. Rashida Tlaib plans to introduce legislation that would prevent consumer credit data from being used to set auto insurance rates, a practice that the Michigan Democrat says leads to discrimination against low-income Americans. For Tlaib, it’s a critical local issue because Michigan has some of the highest auto insurance rates in the country. Though insurers don’t expect the bill to become law, the industry is keeping a close eye on the legislation.