March 20, 2020

Coronavirus effect on life insurance market

Excerpted from How COVID-19 is Impacting the Life Insurance Business on Insurance News Net:  When a worldwide event such as COVID-19 consumes the news, life insurance becomes an increasing subject of interest. While little is known about how insurance companies will manage underwriting decisions surrounding COVID-19, what is now becoming a greater challenge are required off-site medical exams for approval with some life insurance policies. Information regarding medical exams is unfolding, and more will be known as carriers begin reporting to the general public.

Cyber risks may grow amidst telecommuting

In coming weeks, more workers will be required to work from home to avoid exposure to COVID-19. This new reality presents a new risk: cyberattacks. Although insurers have been working to secure their systems against cybercrime for many years now, additional steps should be taken to ensure that the growing number of work-from-home employees can connect to secure remote networks. Read more in Coronavirus Work-From-Home Response May Expand Cyber Risk, by Jim Sands for Insurance Journal.

Payment grace period extended by some insurers

Excerpted from Coronavirus Sparks Extended Insurance Payment Grace Periods, by Amy Danise for Forbes: Americans who are suffering financially from job fallout due to the coronavirus may have relief coming for insurance payments. Some auto and homeowners insurance companies are making moves to offer financial assistance to customers. And California has made a sweeping order that all insurance companies must offer at least 60-day grace periods for insurance payments to Californians.

Early predictions for 2020 hurricane season

The 2020 hurricane season is still a couple of months away, but early predictions are showing that weak westerly winds from El Niño could mean more storms this year. The westerly winds produced by El Niño act as a preventative measure from tropical storms forming. One of the key elements to tropical development is low intensity of upper-level wind shear, or disruptive winds in the atmosphere. When wind levels are low, a moist environment is ripe for pressure build-up which eventually can yield a tropical system. Read more in Joe Mario Pedersen’s Orlando Sentinel article, More Hurricanes Possible this Season with a Weaker El Niño, Experts Say.

Digital transformation continues to impact industry

Excerpted from The Power of Disruption: Digital Transformation in Insurance, by Sumit Taneja and Rupesh Malik for Property Casualty 360: The insurance industry is rapidly undergoing a digital transformation, enabled by artificial intelligence (A)I technologies such as machine learning (ML), neural networks, natural language processing (NLP) and computer vision. This evolution will fundamentally change the insurance industry from its current state of “detect and repair” to “predict and prevent,” transforming every aspect of the industry in the process.