The Friday Five brings you interesting news and information from around the insurance industry. This week: new LexisNexis Risk Classifier with Medical Data, 2021 hurricane update.
New Life Segmentation Model
LexisNexis® Risk Solutions has announced the availability of LexisNexis® Risk Classifier with Medical Data, the first solution to combine up to six sources of behavioral and medical data and provide life insurers with a predictive mortality model that allows them to more accurately rate risk and help competitively price policies. This innovative solution was developed to improve the life insurance experience for insurers and consumers, giving life insurers more predictive, valuable data for an in-depth picture of risk so that more consumers can get access to the life insurance they need to protect their loved ones. Read the full press release.
Senate weighs in on business interruption claims
According to the National Association of Insurance Commissioners, of the 8 million businesses with commercial insurance policies that included business interruption coverage, 83% also included a clause excluding claims from viral contamination, disease or pandemic, leading to 82% of claims being closed without payment. The Senate subcommittee on securities, insurance and investment is looking into solutions. Read more in the ROI-NJ article, Senate committee ponders: Should insurers have to pay business interruption claims caused by pandemic?
Who is impacted most by rising home insurance rates?
Rising home insurance premiums disproportionately impact seniors and homeowners with low credit scores, according to a new study from insurtech platform Matic, whose mid-year survey reviewed trends from 45,000 policies and 3.2 million quotes. It found that home insurance premiums grew an average of 4% year over year. The survey found that increasing home insurance premiums disproportionately affects those with FICO scores below 580 – as homeowners with this factor saw the largest increase in premiums at an average of 6.4%. Read more in Ryan Smith’s Insurance Business Magazine article, Revealed – who is being disproportionately impacted by rising home insurance rates?
Commercial CAGR expected to rise
The worldwide commercial insurance market is anticipated to see a compound annual growth rate of 8.5% by 2028, reaching a value of more than $1.22 trillion, according to Valuates Reports. The market was valued at $692 billion in 2020. The gains are expected to be propelled by the increasing need for insurance among businesses, while government regulations that mandate coverage for workers’ comp and liability coverage are also expected to lift the market. Read Steve Hallo’s Property Casualty 360 article Commercial insurance to see 8.5% CAGR through 2028 to learn more.
Early-season hurricane update
The remaining months of the 2021 Atlantic hurricane season are expected to be active, and storm numbers have increased in the latest outlook released Thursday by The Weather Company. The July outlook calls for 19 named storms, eight hurricanes and three major hurricanes. The slight uptick in named storms and hurricanes is because of the season’s quick start and continued indications for a favorable pattern in the tropics. The outlook includes the five named storms and one hurricane that have already developed. Read more in the Weather.com article, Atlantic Hurricane Season Update: It Won’t Stay Quiet for Long, But It Won’t Be as Active as 2020