Among the themes running through Triple-I’s 2022 Joint Industry Forum (JIF), a dominant one was the growing importance of predicting and preventing losses, versus the property/casualty insurance industry’s traditional emphasis on transferring risk from policyholders to insurers and assessing and paying claims when they arise. Increasing severity of weather- and climate-related events, compounded by rising … Continue reading JIF 2022 Wrap-Up:From Risk Transferto “Predict & Prevent”→
Litigation costs could add between $10 billion and $20 billion to insured losses from Hurricane Ian, adding to the woes of Florida’s already struggling homeowners’ insurance market, says Mark Friedlander Triple-I’s corporate communications director. Early estimates put Ian’s insured losses above $50 billion. “Based on the past history of lawsuits following Florida hurricanes and the … Continue reading Lawsuits Threatento Swell Ian’s Price tag→
By Max Dorfman, Research Writer, Triple-I A recent AM Best report finds that traditional reinsurance capital will decrease by approximately $40 billion by the end of 2022, lowering the total to $435 billion. This 8.4 percent decline comes after substantial increases of 15.5 percent for 2019, 8.9 percent for 2020, and 10.7 percent in 2021. … Continue reading Report: Traditional Reinsurance Capital Declining→
By Max Dorfman, Research Writer, Triple-I Insurance fraud costs the U.S. $308.6 billion a year, according to recent research by the Coalition Against Insurance Fraud (CAIF). And, while staffing within insurers’ Special Investigation Units (SIU) is a pain point, CAIF found that use of anti-fraud technology is on the rise. CAIF notes that hardest-hit insurance … Continue reading Tech Gains Tractionin Fight Against Insurance Fraud→
Louisiana, Florida, and Michigan are the three least affordable states for personal auto insurance, according to a new report by the Insurance Research Council (IRC). The three most affordable states, IRC finds, are Hawaii, New Hampshire, and North Dakota. The state-by-state affordability rankings by IRC – like Triple-I, an affiliate of The Institutes – are … Continue reading IRC Releases StateAuto InsuranceAffordability Rankings→
Two U.S. agencies have agreed to explore the potential need for a federal mechanism – analogous to the one put into place for terrorism insurance after the 9/11 attacks – to address the growing cybersecurity threat to critical infrastructure. The perceived need to do so speaks to the growing complexity and interrelatedness of this and … Continue reading Complex Risks in a Complicated World:Are Federal Government “Backstops” The Answer?→
Already this year, three Florida insurers have been declared insolvent due to their failure to obtain full reinsurance as the 2022 hurricane season bears down. “We have the potential of a massive failure of Florida insurers, probably the worst on record,” says Triple-I communications director Mark Friedlander. According to Friedlander, the $2 billion reinsurance fund … Continue reading Fla. P&C Crisis Worsens As Hurricane Season Begins→
“Social inflation” refers to rising litigation costs and their impact on insurers’ claim payouts, loss ratios and, ultimately, how much policyholders pay for coverage. It’s an important issue to understand because – while the tactics associated with it typically affect businesses perceived as having “deep pockets” – social inflation has implications for individuals and for … Continue reading Social Inflation:Eating the ElephantIn the Room→
The insurer for the Champlain Towers South condo association has said it will make an up-front payment to resolve damage claims related to the 12-story beachfront property in the Miami suburb of Surfside, Fla., that collapsed on June 24, 2021. “We want to make it known that James River Insurance Company has made the decision … Continue reading Long-Term ConsiderationsFrom Condo Collapse→
A recent study by the Geneva Association on the topic of “social inflation” addresses the challenges of defining and quantifying the phenomenon. More important, it takes on the question of what insurers and reinsurers can actually do about it. “Social inflation is a term that is widely cited in insurance debates but it is often … Continue reading What Is Social Inflation? What Can InsurersDo About It?→
