Every week The Friday Five will bring you interesting news and information from around the insurance industry. This week: managing California’s wildfire risk, recruiting top talent for insurance
Managing California’s future wildfire risk
Excerpted from Chris Folkman’s Insurance Journal article, A Tale of Two Californias: Managing Wildfire Risk in the Year 2030: For most of the 20th century, the insurance industry considered wildfires to be little more than a benign nuisance. They occurred frequently but rarely resulted in more than a handful of claims, and underwriters priced for them in the same way as other attritional sources of loss like theft, breakage and sewer back-up. And then came the 2017 and 2018 seasons.
Tips for recruiting the best employees
December graduations are over and June celebrations are just around the corner. As the next wave of new talent wraps up their education and heads out into the market, it’s the perfect time for insurance carriers to start thinking about how to recruit for today and the future. Erin Hendrick, in her Property Casualty 360 article, The Best Career You Never Considered, provides tips for putting your best foot forward in the recruiting game.
New auto insurance law help for Michigan drivers
A new consumer-focused website and hotline are now available to help prepare for the overhauled Michigan auto insurance system that begins in July. In anticipation of the new system, more insurance carriers are applying to offer auto policies in Michigan, which grows the total number of authorized auto carriers to more than 100. Read more in JC Reindl’s Detroit Free Press article, Michigan Launches Consumer Website, Hotline for New Auto Insurance Questions.
Life insurance in wake of Secure Act
Excerpted from Ed Slott’s Financial Planning article, Why Life Insurance is the New Stretch IRA: Advisors should move quickly with new estate planning advice for clients now that the Secure Act has passed. This law, which eliminated the stretch IRA plan for most non-spouse beneficiaries and replaced it with a 10-year rule, is already effective for deaths that occurred in 2020. While planners can still help clients maintain their goals, the vehicle used to transfer money after death will have to change from the IRA to — I propose — the better, more tax-friendly life insurance.
Georgia contemplating higher cell usage fines
Two years ago, Georgia law banned holding a cellphone while driving. But the measure let drivers off with a warning the first time and set the maximum fine for the second violation at only $50. Offenders also face higher auto insurance premiums. Evidence shows the law is working, with Georgia’s motor vehicle fatality rates falling 7% since its passage. Now a state representative wants to double the fines and eliminate the first-time warning. Some state lawmakers, however, are questioning the proposal. Read more in Jeff Amy’s Claims Journal article, Some Leery of Higher Fines on Georgia Drivers Using Phones.