The Friday Five

August 27, 2021

The Friday Five brings you interesting news and information from around the insurance industry. This week: new LexisNexis Insurance Demand Meter, COVID-19 liability claims.

New Insurance Demand Meter shows continued shopping increase

The latest edition of the LexisNexis® Risk Solutions Insurance Demand Meter reports the overall annual U.S. auto insurance shopping rate rose to 41.6% in Q2 2021, as market conditions over the past year spurred traditionally stable segments to shop their insurance.  While shopping grew 1.1% year-over-year (YOY) in Q2, new policy growth reached 8% despite volumes consistent with Q1 2021. The Meter shows a “Nuclear” reading as compared to Q2 2020’s low volumes and market hurdles. Read the full press release.

Insurers anticipating COVID liability claims

Liability insurers are scaling back the cover they offer companies ahead of an expected wave of discrimination claims as employers call staff back to their desks after 18 months of pandemic-induced home working. There have been around 2,950 COVID-19-related employment lawsuits in the United States since the start of the pandemic, ranging from disputes over remote working to workplace safety and discrimination, law firm Fisher Phillips says. Read more in the Insurance Journal article, Insurers Expect COVID-19 Liability Claims Against Employers as Employees Return by Carolyn Cohn, Noor Zainab Hussain and Kirstin Ridley.

Consumers still uneasy with AI

Excerpted from Consumers Voice Unease with AI-only Home & Auto Claims, by Steve Hallo for Property Casualty 360: While the shift to tech-forward insurance processes is underway and the industry shows a willingness to embrace it, new consumer research is showing auto and home insurance policyholders aren’t quite confident in a fully automated experience. More than 70% of consumers said they would be uncomfortable purchasing insurance without speaking to a person, while 64% said they’d be uncomfortable filing claims on a website or app without human interaction. Further, 60% said they would rather switch insurance companies than let artificial intelligence review their claims.

Cost increases may leave homeowners underinsured

Excerpted from Patrick Nelson’s KOAA News 5 article, Cost of building materials and labor may cause homeowners to be underinsured: Insurance experts say many people may be shocked to find out their policy no longer covers the cost of replacing their homes. By law insurance companies have to justify their premiums, but experts say current economic conditions, along with the impact of storms and wildfires in recent years has led to justified price hikes.

Don’t ignore small business customers

Small businesses are feeling neglected by their insurance carriers and agents. Insurers may want to pay more attention to these small business insurance customers, especially those with commercial auto and workers’ compensation policies. According to the J.D. Power 2021 U.S. Small Commercial Insurance Study a lack of proactive support and personalized attention has put a strain on customer satisfaction among small commercial insurance customers, with customer satisfaction declining 15 points in the last two years. Read more in the Insurance Journal article: ‘Hey, Insurance Industry: What About Us?’ Ask Small Businesses as Satisfaction Wanes.