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?
“Social inflation” refers to rising litigation costs and their impact on insurers’ claim payouts, loss ratios, and, ultimately, how much policyholders pay for coverage. While there’s no universally agreed-upon definition, frequently mentioned aspects of social inflation are growing awards from sympathetic juries and a trend called “litigation funding”, in which investors pay plaintiffs to sue … Continue reading Social Inflationand COVID-19
“Social inflation” is the name used to describe growth in liability risks and costs related to litigation trends. A new white paper by the Insurance Research Council (IRC) examines this phenomenon and shows that insurers’ losses across several business lines have accelerated rapidly in recent years – much more rapidly than economic inflation alone can explain. Some … Continue reading IRC Study: Social Inflation Is Real, And It Hurts Consumers, Businesses
My first Triple-I Joint Industry Forum (JIF) did not disappoint. Between panel discussions and conversations with thought leaders and decision makers from across the insurance industry, I learned a lot and accumulated insights and leads that will feed this blog for some time to come. At a high level, an informal poll during one session … Continue reading JIF 2020 Crystal Ball