Every week The Friday Five will bring you interesting news and information from around the insurance industry. This week: LexisNexis launches Recall Clarity, beware fraudsters after storm, insurance digital transformation.
LexisNexis Launches Recall Clarity
According to the NHTSA, over 1,000 recalls were issued in 2018 affecting more than 35 US million motorists. This process has become increasingly more difficult due to changes in vehicle ownership on secondary markets. This week, LexisNexis Risk Solutions announced the launch of LexisNexis® Recall Clarity, a solution that assists auto manufacturers in the owner identification process for safety-related recalls. Click here to read more about Recall Clarity.
In storm aftermath, fraudsters take advantage
Excerpted from Fake Claims, Price Gouging, Bogus Contractors: How Fraudsters Steal Disaster Aid, by Natalie Anderson, Jake Goodrick and Peter Nicieja for Insurance Journal: As the scale and frequency of major disasters escalate, millions of dollars in federal, state and insurance payments intended for recovery efforts are being stolen by fraudsters taking advantage of chaos in stricken areas. Losses to disaster fraud are estimated at 10% of disaster-related insurance payouts and FEMA spending. More precise losses are difficult to quantify due to the challenges of identifying, reporting and prosecuting fraud.
Insurers on the road to digital transformation
The digital transformation is already underway in the insurance industry. Customer expectations, requirements for improved efficiency, and growth initiatives require that all businesses adopt modern tools, systems, and processes to succeed. Almost 70% of insurers report that they are somewhere along the journey to digitally transform, a clear sign they recognize that customer expectations are at an all-time high. Read more in Bil Pierznik’s Property Casualty 360 article, How marketing furthers insurance digital transformation.
Construction insurance market seeing a boom
Excerpted from Underwriters Get Picky and Other Trends in Construction Insurance by Andrea Wells for Insurance Journal: Construction insurance specialists say their insurance market is strong with plenty of capacity and underwriters competing for the best accounts. According to specialists interviewed by Insurance Journal for their assessment of the market, the boom in the construction business has allowed underwriters to refine their appetites and be more selective and focus on profitable accounts.
Drone usage in commercial insurance: benefit? Or risk?
Drones are providing insurers with opportunities and capabilities previously not possible. They are also presenting a number of potential risks and exposures for insurers, such as privacy, property, and bodily injury, along with growing concerns over technology risks. According to the Federal Aviation Administration, 2.85 million small drones could fill the sky by 2022, and 450,000 of them will be used for commercial purposes. Read more in the Property Casualty 360 article, Drone use in commercial insurance: Potential liability risks for insurers, by Lori Hunter and Auvied Homaizad.