Risk

The stay-at-home mandates, school and business closings, and increased remote work arrangements emanating from COVID-19 resulted in a significant decrease in motor vehicle accident frequency in 2020, with that trend continuing into 2021. There are many other, less obvious forces that actuaries and company management should consider as 2021 year-end reserves are analyzed.

About 20 nations have signed on to a deal to stop funding foreign fossil fuel projects -- with a last-minute entry by Italy. But the impact of the accord is undermined by the absence of key countries like China.

Success demands an innovation-driven formula with four main components: speed, accuracy, scale and customer experience. To do this and change the economic equation, here are five efficiency strategies recommended by Verisk.

A crucial point that many businesses engaged in the B2B sharing economy are increasingly aware of is that engagement often carries considerable liability risk, which is why it is of utmost importance for businesses to insure against this risk with robust verification services.

The Federal Emergency Management Agency in April announced the first significant update to the beleaguered National Flood Insurance Program, which covers about 5 million properties. Premiums have risen steadily, but the program is more than $20 billion in debt, thanks in part to rising seas and stronger storms. Now, a quarter of the participants will see lower costs, while the remainder will see premiums rise in increments as high as 18% annually.

Recent EY research confirms how the pandemic fundamentally changed consumer needs, how they plan to increase their financial security, and what insurers can do to seize the opportunity.

Global warming was ranked as the biggest risk to society over the next five to 10 years in a report released Tuesday by French insurance giant AXA SA. While that also topped the ranking in 2018 and 2019, it was outstripped by diseases and pandemics last year as the virus spread across the globe.

As many as 2.4 million homes are at risk of losing protection in 2021 as year-long grace periods expire – though new disasters may extend their shields. In all, 18% of the state’s households could effectively lose protection, the largest single group since the moratorium law took effect three years ago.

In other news: Hippo launches Builders Program; handdii wins the 2021 ACORD Insurtech Innovation Challenge New York; Blockchain-backed title insurance launches in five states.

Many insurers are focused on ransomware risk protection even though other new vulnerabilities are emerging from remote work. Recent statistics point to a troubling increase in ransomware and phishing, web application attacks and other emerging cybercrime tactics.

Carriers, pressed by lower expense insurtech models that emphasize direct-to-consumer engagement and new, rich data sources, are beginning to encounter a bifurcation of risk and client characteristics.

Over half or 62%, of insurers, say they will invest in risk management over the next year, with 55% saying they’ll invest in customer and employee data protection, according to the FIS’ 2021 Readiness Report.

Several companies are using artificial intelligence and data analytics to better map properties for coverage in potential high-risk wildfire areas.

Climate change is exacerbating extreme and freak weather events so rapidly that even the insurance industry is struggling to keep up.

The risk models insurers had previously relied on need to be adapted for today’s challenge.

Continuity and speed are just two benefits of payment automation, says VPay's Elisa Logan.

With the growing vulnerabilities and uncertainty of our highly globalized and connected world, actions in one place can spread rapidly to have global effects.

Amid record low travel and vehicle miles traveled, speeding and crashes in cities around the United States have increased.

Ruth Foxe Blader, managing director with venture-capital company Anthemis, is responsible for identifying insurtechs that are helping carriers minimize risk.

CHIME, a professional association for chief information officers, and AEHiS, which represents chief information security officers, seek tighter control of devices for security purposes.