Expectations for the Property & Casualty Insurance Industry in 2016
Posted on Jan 15, 2016 in Insurance Developments and Trends | Comments Off on Expectations for the Property & Casualty Insurance Industry in 2016
The Insurance Information Institute has released the results of a survey of property and casualty insurance industry leaders. A majority of executives anticipate no increase in profitability for workers compensation, personal auto, homeowners, or commercial lines in 2016. Rather, executives expect increased regulatory scrutiny and attempts by the federal government to expand its role...
The Future of Tracking Devices and Usage-Based Insurance
Posted on Jan 13, 2016 in Insurance Developments and Trends | Comments Off on The Future of Tracking Devices and Usage-Based Insurance
According to the Wall Street Journal, some consumers have said they are wary of using tracking devices offered by insurers to assess their driving and potential for discounts for good driving. Insurance companies are increasingly using personal data to assess risk and fine-tune their pricing of policies—or at least to provide discounts. As insurers have tested tracking devices, they...
The Potential Value of Telematics in Insurance Claims Handling
Posted on Dec 11, 2015 in Insurance Developments and Trends, Technology Impacting Auto Insurance | Comments Off on The Potential Value of Telematics in Insurance Claims Handling
Through vehicle telematics, data on a wide variety of driving behaviors (acceleration, deceleration, braking, and more) can be obtained through the vehicle’s engine control units (ECUs). Such data is already being used by insurers in pricing and underwriting, but the new frontier for telematics could be claims handling. According to Donald Light, the director of Celent’s...
Connecticut Issues Bulletin Banning Price Optimization
Posted on Dec 4, 2015 in Insurance Developments and Trends, Insurance Regulation | Comments Off on Connecticut Issues Bulletin Banning Price Optimization
In a recent bulletin, Connecticut became the 16th jurisdiction to ban price optimization in insurance pricing. Connecticut Insurance Commissioner Katherine L. Wade stated that the Department “views price optimization as a discriminatory practice and therefore a violation of state insurance law.” Wade specifically cited factors such as a customer’s “propensity to shop for insurance or...
Auto Insurance Sector is Shrinking
Posted on Oct 23, 2015 in Insurance Developments and Trends | Comments Off on Auto Insurance Sector is Shrinking
Consulting firm KPMG released a study that claims within the next 25 years the private passenger auto insurance industry may shrink by as much as 60 percent. Reasons for the diminishing market include safer vehicles, an increase in on demand car service, and autonomous technology. By factoring in accident frequency and severity assumptions, KPMG estimates the industry will insure less...
Disagreement in the Insurance Industry over Price Optimization
Posted on Oct 23, 2015 in Insurance Developments and Trends | Comments Off on Disagreement in the Insurance Industry over Price Optimization
The insurance industry has seen a growing debate over price optimization, including the formation of a National Association of Insurance Commissioners (NAIC) task force designed to investigate such practices. Many industries use price optimization to set prices depending on what a consumer would pay for a good or service, but the accepted practice in the insurance industry—with the...
