Personal Lines

New research shows how COVID has moved insurance from seeing change on the horizon to feeling the impact of customer change in the decision-making process.

Fraud exceeds $300 billion a year in the U.S., nearly four times the previous official estimate, in 1995, partly because the internet allows new forms of cheating. 

During the last five years, 89 weather and climate disasters in the U.S. caused $788 billion in damage. In 2022, nine events have exceeded $1 billion in losses.

Newly available data will be ingested into weather models to improve forecasting for carriers, reinsurance companies and even insurance linked securities. 

While many factors contribute to social inflation, analysis suggests that an increase in non-fatal auto accidents may be one of the most influential.

There is no simple cure to the ills of social inflation, but a sustained and consistent effort by insurers can start to address some of the symptoms.

Coastal home and business owners need adequate protection now as much as ever, especially as climate change leads to more severe and frequent storms. 

Property-casualty insurers should stress test their operations and consider ways to counter potential inflation impacts on both sides of their balance sheets.