The Friday Five

April 2, 2021

Every week The Friday Five will bring you interesting news and information from around the insurance industry. This week: helping life insurers create a better customer experience, claims from Suez Canal trouble.

Better customer experience for life insurers

Management Research Services has teamed up with LexisNexis Risk Solutions to make dynamic changes within the life insurance industry with a new workflow that can help life insurers to efficiently verify and authenticate customers while saving time by adding pre-fill data at the point of sale. Read the press release.

Claims from Suez Canal trouble

Excerpted from Insurers of Container Ship Aground in Suez Canal Face Millions in Claims by Carolyn Cohn and Jonathan Saul for Insurance Journal: he owner and insurers of one of the world’s largest container ships stuck in the Suez Canal face claims totaling millions of dollars even if the ship is refloated quickly, industry sources said on Wednesday. The ship’s owner, Japanese firm Shoei Kisen KK, and its insurers could face claims from the SCA for loss of revenue and from other ships whose passage has been disrupted, insurers and brokers said.

Protecting your business from natural disaster

Insurers don’t have to just worry about “hurricane season” in the Gulf and Atlantic states or ice storms and snow squalls in the north. Over the past few years, it’s become clear that severe weather and natural disasters can occur regardless of time and place. While there’s no way to prevent natural disasters, organizations should always have emergency preparedness plans in place. Doug Dvorak, in his Property Casualty 360 article, Insurance and natural disasters: Protecting clients and their businesses, provides helpful tips for insurance carriers to help protect their businesses in the event a significant weather event occurs.

Pandemic-related refunds face criticism

Excerpted from John Egan’s and Jason Metz’s article, Scrutiny Intensifies Over Auto Insurance Pandemic Refunds: Auto insurance companies have been criticized for their refunds to customers that were based on the reduction in driving (and claims) during the pandemic. Now they’re feeling even more heat over their handling of auto insurance premiums. California Insurance Commissioner Ricardo Lara demanded that auto insurers report how they plan to issue additional refunds to auto insurance policyholders in California who he says were overcharged in 2020 despite lower accident risks amid the pandemic.

Commercial rates forecasted to rise

Excerpted from Forecast: Commercial insurance rates to climb by nearly 12% in 2021, by Debra Costa for The North Bay Business Journal: The commercial insurance rate hikes that have been ongoing since 2017 are expected to continue into this year, with double-digit increases anticipated for most lines of insurance, according to a new report. The rate increases continue a trend that’s been driven by different factors depending on the line of insurance. These range from increased litigation and jury awards, higher property claims costs from a growing number and intensity of natural catastrophes, and higher medical costs for injury claims, to higher reinsurance costs for insurers for extraordinary claims.