Written by: The Friday Five

Every week The Friday Five will bring you interesting news and information from around the insurance industry. This week: Coronavirus impact on U.S. auto insurance shopping, new water loss correlation study.

Coronavirus impact on U.S. auto insurance shopping

The Q2 2020 Insurance Demand Meter, which highlights trends from Q1, reveals how the coronavirus pandemic is impacting U.S. consumer auto insurance shopping through April 2020. According to the Meter, shopping events have closely mirrored other national developments with the pandemic – from a marked decrease correlated to the stay-at-home orders to an increase that appears to coincide with the timing of the federal stimulus checks. The report additionally highlights COVID-19’s impact by age group, geography and shopping channel. Download the Insurance Demand Meter report for more information.

New water loss correlation study available

A new insurance claims study reveals that in-line water shutoff systems correlate with a decrease in water claims events by 96%. Further underscoring the value of incorporating smart home technology, the study also found that those without water shutoff systems reported a 10% increase in water claims events over the same time period. The study measured changes in the number and severity of water-related home insurance claims with the Flo by Moen Smart Water Shutoff device against an uninstalled control group of homes in the same geolocation one year before and after installation. Download the study, Smart Home Technology Promises New Opportunities, for more information.

Reduce disputes with contributory data

A common pain point for auto insurance carriers is handling consumer disputes. They take valuable time to investigate, more time to correct and introduce delays to other customers awaiting service or processing. Additionally, disputes can cause negative consumer experiences, especially if not handled quickly and properly. Carriers can reduce their total disputes by nearly 9% by reporting fault information when contributing data to a database. Read more in Vincent Braddy’s blog article, Using Contributory Data to Reduce Consumer Disputes.

Proposed federal program for insurers

In response to the immense financial challenges facing U.S. operations in light of the COVID-19 pandemic, the National Association of Mutual Insurance Companies, the American Property Casualty Insurance Association, and the Independent Insurance Agents & Brokers of America have proposed a new customer-focused federal program to help businesses meet the financial challenges from future pandemics. Named the Business Continuity Protection Program, the solution would provide revenue replacement assistance for payroll, employee benefits, and operating expenses following a presidentially-declared viral emergency. Read more in Insurance Groups Unveil the Business Continuity Protection Program by Heather Turner for Property Casualty 360.

Heavy rains in Michigan lead to flooding

Excerpted from Michigan in State of Emergency as Flooding Displaces Thousands, by David Welch and Derek Wallbank for Property Casualty 360: After two days of heavy rainfall, water from Lake Wixom breached one dam yesterday evening and then another late at night. Better weather on Wednesday has at least given the region a respite from heavy rain, but the Tittabawassee River is still expected to crest at a record 38 feet on Wednesday evening. The Michigan State Police said that about 130 soldiers and more than 40 specialized vehicles from the Michigan National Guard arrived in the area at about 4 a.m. to evacuate citizens, augment emergency plans and offer logistics support. 

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