Welcome to iLeads Insurance Market Minute, where we bring you the latest, most relevant news regarding the insurance market. Last week you were reading How Pandemic Insurance Can Be Available To Businesses In The Future. This week we’re bringing you: Ralph Lauren Sues Insurer For $700 Million Over Restricted Business Loss Claim
NCCI on the direct and indirect impacts of the pandemic*
“Business as usual” is what the National Council on Compensation Insurance (NCCI) has promised as it navigates through COVID-19 challenges to complete its workers’ compensation rate filing season for 2021. The organization, which gathers workers’ compensation data, analyzes industry trends and provides objective insurance rate and loss cost recommendations in 38 states, intends to “make rate filings […] according to the normal schedule,” despite a distinct lack of COVID-19 data and ongoing uncertainty around how the pandemic will develop.
The NCCI has made several COVID-related changes over the last few months, as Jeff Eddinger (pictured), senior division executive – regulatory business management at the NCCI, explained: “We began collecting payroll for furloughed workers, so that [it] would not be used in the premium calculation for those workers that were at home and not performing their usual job duties. A second rule change we made was to exclude COVID claims from the experience rating calculation. In addition to that, we’ve also been tracking orders or proposed legislation on different COVID compensability presumptions.” Read more in-depth here.
Bet against the banks but don’t bet against the insurance companies*
There is a grim calculus for insurers handling coronavirus claims, laid bare by Legal & General’s half-year results. It paid out £36m in life insurance claims to the families of those who sadly died from Covid-19 – but made a £32m gain from mortality, as it will pay out pensions for fewer years than expected as the elderly pass away.
In late March, the Bank of England strong-armed banks into halting dividends and bonuses and made it clear that insurers should consider doing the same too.
But while the guidance made sense for banks, facing huge losses from bad debts, for insurers coronavirus has turned out very differently – with some parts of their business doing rather well. Read more in-depth here.
Ralph Lauren sues insurer for $700 million over restricted business loss claim*
Ralph Lauren is suing its insurer after the American fashion label was barred from claiming the full amount of its business loss insurance.
The fashion company saw first-quarter losses of $112 million, and revenue dropped 66% overall compared to last year. Ralph Lauren’s wholesale business for the quarter also saw a staggering 93% drop.
When Ralph Lauren filed a claim for its financial losses resulting from the pandemic, its insurer Factory Mutual Insurance allegedly attempted to limit coverage. The fashion company had purchased the “all-risk” insurance policy just last year, which is worth $700 million. Read more in-depth here.
Featured iLeads Solution:
Looking for the most qualified leads? iLeads insurance leads might be the answer. Learn more…
We are ready to help you navigate through the COVID-19 insurance environment.
Finding highly affordable leads to keep sales coming in
At iLeads, we have many great solutions for insurance agents at a low cost. If you’d like to see how we can help you bring in consistent sales for a great price, give us a call at (877) 245-3237!
We’re free and are taking phone-calls from 7AM to 5PM PST, Monday through Friday.
You can also schedule a call here.