Every week The Friday Five will bring you interesting news and information from around the insurance industry. This week: using data to assess wildfire risk, claims automation, coronavirus uncertainty.
Data-driven strategy for managing wildfire risk
Excerpted from Strategies for Addressing Wildfire Risk, by Bill Brower and George Hosfield for Claims Management magazine: U.S insurance carriers are challenged to reduce their exposure to loss as wildfires consume ever-larger areas of the country. While carriers have gotten better at analyzing claims, a possible new recurring pattern of headline-making wildfires, like the most recent one in Australia, could keep many carriers in a stalemate in their ability to assess, price and underwrite risks affectively.
Claims automation has arrived
Excerpted from Automating claims for drivers & insurers, by Bill Brower for Property Casualty 360: At this point in time, it has become accepted that automation is either on its way to your industry or has already arrived. For many auto insurers, automation has not only arrived but has transformed the overall claims process for the better. It’s a win-win situation for both insurers and customers, with automation helping insurers do their jobs more efficiently and providing more convenience for their customers.
Uncertainty around Coronavirus losses
The devastating effects of the coronavirus has dominated news cycles recently, and not only has it disrupted life for millions, but has also sharply impacted economies around the world. Businesses should evaluate whether and how their operations and revenue may be affected by the coronavirus and then closely analyze whether existing insurance policies potentially provide coverage for the losses. Pamela Hans and Marshall Gilinsky cover the types of coverage and claims that may be impacted in their Insurance Journal article, Insurance Coverage for Losses Stemming from the Coronavirus.
Top GDPR data breaches
As technology continues to intertwine with our everyday lives, data breaches and cyberattacks continue to grow. Regulations like the European Union’s General Data Protection Regulation and the California Consumer Privacy Act have been implemented to protect user’s privacy and data and penalize organizations that fail to do so. For businesses that operate on a global scale, as many in the P&C insurance industry do, this has meant adapting business practices to adhere to these regulations in order to avoid fines, reputational loss, class-action lawsuits and much more. Jacob Denny, in his Property Casualty 360 article, highlights The countries with the most GDPR data breaches.
Insurance and winter ice woes
Excerpted from Tim McKendry’s Property Casualty 360 article, Accounting for ice dams when underwriting property insurance policies: Ice dams are a common threat in northern states during the colder months, and they can result in sizeable property damage claims. Though most insurance policies don’t typically cover ice dam removal, resulting interior and exterior damage may be included. Insurance professionals should be knowledgeable about the matter so that agents can provide informed coverage advice, underwriters can accurately assess risk, and adjusters can correctly evaluate claims.