New Reserving Practices Made Possible by Modern Technology, Methods
Proper reserving ensures insurance companies have the financial strength to pay claims and other expenses. Thanks to modern technology supporting sophisticated models and richer data, some forward-thinking actuaries are unearthing new approaches to fine-tune reserving. Specifically, they are looking to develop reserves on a per claim rather than an aggregate basis. My Actuarial Review […]
Cyber Coverage Is Unprofitable, Now What?
Cyber coverage was once very profitable. But that is no longer. As I report in my recent article, Cyber Challenges, the growth of ransomware attacks and undisciplined underwriting practices are pressuring a line already considered too risky for most insurers. The line’s overall unprofitability was bound to happen. Sooner or later, profitability challenges hit every […]
Driverless Commercial Trucks Wait at the Intersection of Insurance
Driverless commercial trucks are evolving much like their private-passenger counterparts. There are basically two paths. Vehicle manufacturers are either moving to near-autonomous vehicles practically whole cloth or are evolving trucks and cars piece by piece. Both approaches make sense for different markets. The innovators expect the insurance industry to get on board. Insurers, however, are […]
Social Inflation Impact Begs for Quantification
Social inflation was attracting a lot of attention before COVID-19 hit the scene. Search the internet for buzz words like “nuclear verdicts” and “reptile theory” and you’ll see what I mean. Before COVID-19, insurance company presidents and experts pointed to the phenomenon as a force behind rising premiums for most commercial insurance lines. But I was skeptical. […]
How COVID-19 Will Impact Health and P&C Insurance
COVID-19 will have vast implications on both health and property and casualty insurance lines. Two of my articles, which are cover stories for two award-winning insurance industry magazines, offer the details. The May 2020 issue of Leader’s Edge covers the impact that the coronavirus will have on health care. Actuarial Review’s May/June 2020 issue looks […]
Climate Change Pressures Higher Property Insurance Premiums
Climate change is already pressuring premiums for homeowners, commercial and other types of insurance coverage. California homeowners in wildfire-prone areas are being turned down for coverage. The National Flood Insurance Program (NFIP) will be increasing premiums this spring. My article in the January issue of Leader’s Edge, Climate Appetite, explains why businesses should consider the change […]
The Truth about Advanced Driver Assistance Systems (ADAS)
Advanced driver assistance systems (ADAS) are helping drivers with reducing auto accidents and will impact the future of driverless cars, but there are limitations. “My latest article in Actuarial Review is a must-read for consumers and the insurance industry that serves them. Moving Parts: ADAS Go For a Ride moves beyond the generalizations to help […]
Commercial Auto Unprofitability Not All That It Seems
Commercial auto insurance is an unprofitable mess. It’s putting some companies out of business. Among the other commercial lines, commercial auto sticks out like a sore thumb. Unprofitable for eight years, the line is making life difficult for insurance agents, brokers and their clients. My article, “Commerical Auto Woes“, takes an in-depth and rare look […]
Marijuana Industry Insurance Options Grow, But Practical and Moral Issues Remain
The marijuana industry is attracting more attention from business insurance agents and brokers. As I explain in my Leader’s Edge article, Budding Business, the burgeoning legal pot industry is calling for more insurance options. However, insurance companies selling business insurance are not exactly jumping at the chance to offer the full array of coverages enjoyed […]
Emerging Risks Insurers Are Watching — and So Should You
Emerging risks are a mixture of perception and reality. If you asked executives in 1999 to name one of their top concerns, many would have answered Y2K. It turned out Y2K caused a lot of hysteria and a lot of computer consultants made a ton in the process. Then there are the risks that people […]
