The Friday Five

August 7, 2020

Every week The Friday Five will bring you interesting news and information from around the insurance industry. This week: new auto trends report released, cleanup after Isaias and court rules in coronavirus case.

New U.S. auto trends report released

LexisNexis® Risk Solutions introduces its U.S. Auto Insurance Trends Report, which aggregates annual market data about auto insurance shopping, underwriting and claims. The report explores how technology is increasingly shaping the auto insurance lifecycle. It includes recommendations for how insurers can leverage these trends to enhance their quoting, underwriting and claims processes in a rapidly evolving market. Click here to read the press release and download the report.

Court rules for insurer on business disruption

A D.C. Superior Court judge has sided with the insurer in a case brought by the owner of several restaurants over business interruption due to the coronavirus shutdown. The judge ruled that the restaurants’ insurance policy is not triggered because the shutdown did not amount to direct physical loss. As Andrew Simpson writes in his Insurance Journal article, D.C. Judge Rules For Insurer, Dismisses Restaurants’ Business Interruption Claims, “[The plaintiffs] argued that the losses were physical because the coronavirus is “material” and “tangible” rather than abstract. But the judge found the plaintiffs offered no evidence that the virus was present in their inured properties and found that the mayor’s orders did not have any material or tangible effect on the insured’s properties.”

Cleanup begins after season’s first hurricane

Recovery efforts have begun throughout the East Coast in the aftermath of Hurricane Isaias. The Northeast was hit particularly hard as high winds knocked out power for millions of Americans. Many of them are still in the dark days after the storm. Damage assessments and cleanup efforts begin as both NOAA and Colorado State University update their forecasts for the 2020 hurricane season, now calling for an “extremely active” season, predicting 10 to 15 named storms. Read Danielle Ling’s Property Casualty 360 article, Hurricane Isaias recovery begins as NOAA updates hurricane season forecast.

Perception gap between agents and customers

Excerpted from Insurance Agents Think They Offer Value. But Some Customers Have a Different View, on Business owners and consumers are rethinking their finances and insurance needs due to the current economic uncertainty. However, new research suggests insurance customers and their agents are not always on the same page; there are gaps between what agents and their customers think and agents may not be giving customers everything they want.

Stay compliant when acting on a lead

Excerpted from Paul Gipson’s Property Casualty 360 article, Calling and Texting: How Insurance Companies Can Be Compliant: Calling and texting are great tools to engage consumers, but it is not without legal and regulatory risks. Insurance companies must be mindful of the FCC’s Telephone Consumer Protection Act (TCPA), a regulation that has already put thousands of companies in the compliance crosshairs. Insurance companies can put their business at legal and financial risk each time they act on a lead because the TCPA allows consumers and law firms to bring lawsuits over even minor compliance lapses. This is true even when a franchise, subsidiary, or storefront engages with a consumer.