Welcome to iLeads Insurance Market Minute, where we bring you the latest, most relevant news regarding the insurance market. Last week you were reading Insurers Lobby For Federal Pandemic Insurance Program. This week we’re bringing you: Why It’s Time For The Insurance Industry To Live Up To Its Promise
Does “All Risk” insurance cover pandemics?*
The question of whether an “all-risk” insurance policy should cover business losses resulting from the COVID-19 pandemic continues to dominate industry headlines, as a Miami, FL-based casino sues its insurer over a denied claim.
Operators of Magic City Casino filed the lawsuit in federal court in South Florida last week, The News Service of Florida reported. The complaint names four insurance companies, which allegedly wrongfully denied the casino over business interruption losses. The four companies named are AXA XL Insurance Group, Indian Harbor Insurance (an AXA subsidiary), Hallmark Specialty Insurance, and Ategrity Specialty Insurance.
The lawsuit claimed that the four had sold “all-risk” property insurance policies to the casino, which includes covering business interruption losses. Read more in-depth here.
Why Elon Musk’s autonomous driving ideas don’t worry insurers*
Five years ago, the impact of technology on auto insurers was thought to be straightforward: Self-driving cars were coming soon, and they would be so safe, and people would need car insurance about as much as printed newspapers.
If only it had been so simple.
Instead, technology is coming to cars, and insurance, much more gradually. Insurance companies like Allstate, Progressive, and Berkshire Hathaway’s Geico are embracing it, but in a measured way. And the impact on their business seems likely to be slow and steady, rather than rapidly transformative.
Instead of self-driving cars, the auto industry is moving cautiously toward better safety equipment and information sharing. Research into autonomous and more-connected vehicles is helping to make those goals more attainable. And insurers are settling for baby steps like in-car monitors that let customers get discounts if they let carriers track how often they accelerate, swerve or stop suddenly — all behavior tied to accident rates. That means change is coming, but much more slowly, to a once-hidebound business that tech seers thought was next in line to get disrupted. Read more in-depth here.
Why it’s time for the insurance industry to live up to its promise*
If the for-profit world of business is suffering as a result of the coronavirus, you can imagine the toll that the pandemic has taken on non-profit sectors around the world. Volunteering Australia noted that the decline in volunteering during COVID-19, and specifically from February to April this year, has been substantial, with 65.9% of volunteers estimated to have stopped volunteering. Similar trends have been observed in other countries, including Canada, the US, the UK, and across Asia-Pacific.
The impact of the pandemic has also been reflected in the bottom lines of non-profit associations. Imagine Canada found that almost three-quarters of surveyed non-profits reported that donations are down, while a similar percentage of organizations in the US surveyed by La Piana Consulting reported a drop in revenue. Read more in-depth here.
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