Every week The Friday Five will bring you interesting news and information from around the insurance industry. This week: LexisNexis partners with GM, high turnover plagues insurance industry, and speeding worst driving behavior.
LexisNexis Risk Solutions Partners with GM
LexisNexis® Risk Solutions announced that it was selected by General Motors (GM) as part of a Preferred Partnership for connected car data. As part of this partnership, GM joins a group of automakers within the LexisNexis® Telematics Exchange, a device-agnostic telematics ecosystem that allows automakers and insurers to share consumer-approved driving behavior data. This partnership is great news for our insurance customers who will now have access to summarized event data from the largest automaker in the U.S., representing ~17% market share. Read more in our press release.
Industry still seeing high turnover
Excerpted from Solving the insurance industry’s turnover rate, by Travis Batiza for PropertyCasualty360: Insurance agent turnover is becoming a massive problem in the industry today. Eighty-three percent of agents quit within three years, while 30% quit within three months, according to Centric Consulting. All too often, poorly-designed onboard training programs fail to set new agents up for future success, dragging them to one of two fates: either failing to meet their quotas and consequently getting fired, or feeling unsatisfied with their income and leaving a company on their own accord.
Home insurance non-renewals consequence of fires
California data shows insurance companies did not renew some 350,000 policies in wildfire high risk areas since 2015. Members of the industry have noted that the number of non-renewed policies have remained steady year-over-year and there are still policies available in these high-risk areas. Interestingly, the data used shows that more non-renewals during this time period were initiated by policy holders. Read more in Kathleen Ronayne’s AP article on The Mercury News, Insurers drop almost 350,000 California homeowners in high-fire-risk areas.
Small business happy with commercial coverage
Excerpted from US Small businesses are happy with their commercial insurance at eSellerCafé: Small business owners have never been more satisfied with their insurance providers, according to the J.D. Power 2019 US Small Commercial Insurance Study. The all-time high satisfaction score of 844 (on a 1,000-point scale) follows three years of stagnant satisfaction levels and is the result of insurance company investment in technology, servicing, product expansion and dedicated infrastructure designed to support small business customers.
Speeding strong predictor of crashes, says study
Researchers at Canada’s University of Waterloo examined data from 28 million trips for possible links between four bad driving behaviors — speeding, hard braking, hard acceleration and hard cornering — and the likelihood of crashes. Their analysis of data from on-board devices in vehicles revealed speeding is a strong predictor of crashes, while statistically significant links for the other kinds of aggressive driving couldn’t be established. Read more in Among Bad Driving Behaviors, Speeding is Strongest Predictor of Crashes on InsuranceJournal.com.