Every week The Friday Five will bring you interesting news and information from around the insurance industry. This week: CCPS, climate change impacts on insurance, the country’s speediest drivers
CCPA and the insurance industry
Excerpted from Reading the Fine Print: What Insurance Companies Need to Know About the CCPA, on JDSupra.com: As businesses everywhere rush to comply with the California Consumer Privacy Act (“CCPA”), which became effective January 1, 2020, insurance companies find themselves in a particularly precarious position because of the sheer amount of information they collect. All aspects of insurance—from accepting an application to underwriting to handling a claim—involve processing, transferring, and storing consumer information.
Climate change impacts on insurance
Increased losses thanks to weather events around the world and in the United States (primarily along the coasts) are putting a burden on the insurance world. In Norway, there has been an increasingly high amount of insurance claims relating to rain and water damage events and several localities are making preparations for a wetter climate. Similarly, preparation for the will be key to hundreds of U.S. cities that will need to adapt. Planning will also be required on a household level such as the increased need for air conditioning and the effect on farms and agriculture. Read more in Chris Casaleggio’s Property Casualty 360 article, How Changing Weather Patterns Affect Insurance Claims.
Commercial rates determined by a few
Excerpted from A Few Industries Drive Commercial Insurance Rates Higher for Everyone, by Kim Palmer for Crain’s Cleveland Business: Businesses across the board are paying more in insurance premiums. One of the main drivers is an increase in the size of jury verdict awards that are overwhelming the commercial auto industry. The commercial trucking (or carrier) industry is helping drive the overall rate hikes in commercial insurance.
Life insurers must do more to educate
According to a study last year from nonprofits LIMRA and Life Happens, fewer than 6 in 10 Americans have life insurance, and half of those who do don’t have enough. While some people don’t buy it because they’re convinced they don’t need it, others may not be purchasing because they are confused about the details, or view it as an unnecessary expense. Maurie Backman, in her article 3 Things You Need to Know About Life Insurance, on The Motley Fool, sets out to educate consumers about life insurance. Life insurers should also take advantage of these tips to help educate their customers and prospects.
Drivers are the speediest in these states
Researchers recently paired speed limit data with recorded traffic ticket data to compare the rate in which speeding tickets are issued in states with high and low-speed limits. They found that drivers in the top-ranked states re both more likely to speed, due to slower limits, and more likely to receive a traffic infraction for the action. Danielle Ling lists them in a slideshow in her Property Casualty 360 article, The Worst States for Speedy Drivers.