Welcome to iLeads Insurance Market Minute, where we bring you the latest, most relevant news regarding the insurance market. Last week you were reading Pricing Trends Are Helping Reinsurers Counter Major Claims Uncertainties. This week we’re bringing you: Innovation in Workers Compensation Risk: Getting Ahead of Risk and Injury
Climate Change Ranks as Top Concern for Insurers, Replacing Pandemic*
Climate change has returned to the top of the list of insurers’ biggest concerns as the vaccine roll-out and gradual lifting of health restrictions see pandemic fears ease in many countries.
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.
“Climate change is back at the top of the agenda,” AXA Chief Executive Officer Thomas Buberl said in a statement. “This is good news, since last year we feared that the explosion of health risks may overshadow the climate emergency.”
Insurers are being increasingly challenged by global warming as extreme weather events wrought by climate change are expected to keep rising. Just under a fifth of the 3,500 insurance professionals polled across 60 countries expressed faith in public authorities to mitigate the crisis.
Fund’s cybersecurity suit against title insurer dismissed*
A federal district court has dismissed a cybersecurity lawsuit filed by a pension fund against a title insurance company that had earlier reached a settlement with the U.S. Securities and Exchange Commission in the matter.
The U.S. District Court in Los Angeles last week agreed to dismiss the lawsuit filed by the St. Lucie, Florida-based St. Lucie County Fire District Firefighters Pension Trust Fund against Santa Ana, California-based First American Financial Corp., which charged the title insurer with misrepresenting its security practices and controls to investors, according to the ruling in In re First American Financial Corp. Securities Litigation.
Also named as defendants were the company’s CEO, chief financial officer and chief information security officer.
On June 15, without admitting or denying the SEC’s findings, First American agreed to pay a $487,616 penalty for allegedly failing to disclose a cybersecurity vulnerability.
Last Wednesday’s ruling states that a flaw in the system used by First American gave rise to a breach that led to the access of more than 350,000 documents without authorization, starting in June 2018 and continuing for 11 months.
Innovation in Workers’ Compensation: Getting Ahead of Risk and Injury*
Workers’ compensation claims can significantly impact a business’s productivity and bottom line. Out-of-work employees cause company leaders to deal with the burden of a smaller workforce, training replacement staff, and taking additional measures to ensure employee safety. With the National Council on Compensation Insurance reporting the average cost for a workers’ comp claim at $41,003, the stakes are high. For businesses looking to protect their employees and reduce injuries, emerging technologies play an important role. Independent agents have an opportunity to advise businesses on risk mitigation through partnerships with carriers that are investing in new ways and advanced technology solutions to reduce risk to workers.
Understanding Workplace Risks
One of the leading workers’ compensation risks is ergonomics-related incidents, such as manual material handling and repetitive upper extremity movements that cause musculoskeletal disorders, strains or sprains. In 2020, the Bureau of Labor Statistics reported 28% of manufacturing injuries were related to strains, sprains and tears. Mitigating these types of injuries helps to protect employees and reduce the need for businesses to use temporary help.
Leveraging AI Technology to Reduce Risk
Emerging technologies, from water sensors to telematics and more, are having a broad, positive impact on insurance coverage risk reduction. Many companies have already seen the advantages of automation powered by AI technology, and can now reap the benefits this technology offers in reducing workplace injuries. Examples of advanced technologies to mitigate risk in the workplace include:
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