The Friday Five brings you interesting news and information from around the insurance industry. This week: new identity management study, Florida property insurance loss crisis.
New Identity Management study available
A new insurance industry research study reveals that insurance carriers saw an increase in consumer digital activity across both underwriting (77%) and claims (76%) during the coronavirus pandemic and indicated this recent increase in digital activity has in turn spurred more identity fraud activity, according to 67% of survey respondents. Authored by Aite-Novarica Group and presented by LexisNexis® Risk Solutions, Insurance Fraud: Rethinking Approaches in the Digital Age provides advice for carriers on how to identify vulnerabilities and ways to mitigate these vulnerabilities, while providing the ultimate customer experience to genuine consumers. Read the full press release and download the report.
Florida property insurance losses create crisis
Excerpted from Florida property insurance market’s ‘staggering losses’ are ‘not sustainable’, by John Haughey for the Washington Examiner: Many Florida property insurers are seeking double-digit rate hikes citing ballooning reinsurance costs, “loss creep” from 2017-18 hurricanes, coastal flooding and litigation. Florida lawmakers have attempted to slow the surges with their 2019 adoption of an “assignment of benefits” reform bill and this year’s approval of Senate Bill 76, which slashes time to file claims from three years to two, reduces attorney “multiplier fees” and allows insurers to cover only the depreciated rather than the full value of replacing roofs more than 10-years-old.
Credit for quoting ban overturned
Washington insurers may continue credit-based rating practices after a Superior Court judge granted summary judgment to invalidate the state Insurance Commissioner’s emergency ban of credit history in quoting personal lines insurance policies. The order prohibiting insurers from using credit scores to set rates stated that consumer protections provided by the CARES Act resulted in incorrect information recorded by credit bureaus for some consumers, making them unreliable as a predictive tool for insurers. Read more in Heather Turner’s for Property Casualty 360 article, Washington’s credit ban in insurance quoting.
Tesla auto insurance goes to Texas
Excerpted from the Insurance Journal article, Tesla Auto Insurance Expanding into Texas This Week: Tesla will launch its own brand of auto insurance in Texas this week, founder Elon Musk said during a Oct. 7 shareholders call. In January the state insurance department approved a revised policy form submitted by Redpoint County Mutual Insurance Co. for a Tesla Insurance program for private passenger autos. The Tesla Insurance website says it provides Tesla vehicle owners “with up to 20% lower rates, and in some cases, as much as 30%.” The company says its insurance covers physical damage, bodily injury and liability as well as additional financial protection against theft of the car, and damage to the car for events other than traffic collisions.
Renewed interest in life insurance
According to the J.D. Power 2021 U.S. Individual Life Insurance StudySM, an increase in customers’ awareness of their own mortality, combined with the ability to park assets in a tax-advantaged plan, is helping drive increased interest of— and customer satisfaction with— life insurance plans. Consumers are also taking advantage in a federal tax code change that makes it possible for policyholders to build more cash value in their plans. Read more in Pandemic and Tax Code Change Spur Interest in Life Insurance, J.D. Power Finds, on InsuranceNewsNet.com: