Welcome to iLeads Insurance Market Minute, where we bring you the latest, most relevant news regarding the insurance market. Last week you were reading Data Breach At Insurer Affects Up To One Million Customers. This week we’re bringing you: Lemonade CEO Calls Insurance The ‘Single-Most Destructible Industry On The Planet’
Insurers ask to hike rates by 25%*
Over the last 40 years, the NOAA calculates that climate and weather disasters have cost the US $1.75 trillion in damage – and those costs, when insured, obviously trickle down to policyholders.
When a hurricane like Dorian, that battered North Carolina last year runs up costs, so premiums have to rise – which is why insurance companies in the state are requesting approval for a hike of up to 25% from August 2021.
Mike Causey, North Carolina’s Insurance Commissioner told reporters that the NCRB (North Carolina Rate Bureau) had made the request – which averaged out at 24.5% across the state.
The Department of Insurance can now accept the proposal, or more likely, try to haggle that number down. If both parties can’t come to an agreement within 50 days, then Causey will ask for a hearing.
Despite their heavy payouts following last year’s hurricane, there is no guarantee that carriers will get what they ask for – back in 2018 the NCRB asked for just over 17% – settling for a far less impressive 4%.
Insurers set to recover quickly from COVID-19 hit: Swiss Re*
The global nonlife insurance sector will see a swift recovery in premium growth next year, driven by strong and broad-based rate hardening in commercial lines, Swiss Re Ltd. said Wednesday in a report.
Global nonlife premiums will grow by 1.1% this year and recover to an average annual growth rate of 3.6% in 2021 and 2022, the Swiss Re Institute sigma report said.
The outlook reverses its June forecast which predicted stagnating premiums.
“COVID-19 has impacted the insurance industry, although less so than we initially feared,” and insurance demand in advanced markets was better than expected, Swiss Re said in the report.
Advanced market nonlife insurance premiums are forecast to grow by close to 3% in both 2021 and 2022, led by Asia and the United States, the report said.
China will remain the fastest-growing market with premiums up an estimated 10% annually over the next two years, it said.
The upswing in rates has broadened across commercial lines in almost all regions with casualty business, which had remained soft until 2018, seeing rate hardening, notably in the U.S. and Europe, Swiss Re said.
“Market conditions from both the demand and supply sides point to continued pricing strength,” Andreas Berger, CEO of Swiss Re Corporate Solutions said in a statement.
Lemonade CEO calls insurance the ‘single-most destructible industry on the planet’*
Daniel Schreiber, chief executive of insurance provider Lemonade, explained how building the company with a focus on technology and customer delight is powering its business and customer growth.
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