In this segment of The Connected Podcast, we dive into current news and events affecting the insurance ecosystem, with a focus on the impact of self-driving cars and natural disasters on the industry.
First, a Morningstar report titled “Insuring Autonomy: Analyzing the Implications of Self-Driving Cars for the Auto Insurance Industry” forecasts that personal auto insurance could become largely obsolete within 20 years under an aggressive adoption scenario of self-driving cars. By 2044, liability may shift from drivers to manufacturers, considerably changing auto insurance’s relevance.
Next, we hear the troubling story of Jeff Rapkin, a Florida resident affected by Hurricane Ian. Heritage Property and Casualty Insurance provided him a mere $15,000 payout despite an original damage estimate of $231,368.57 by adjuster Jordan Lee. Whistleblowers allege insurers systematically altered damage reports to reduce payouts, raising concerns about the integrity of the insurance claims process following natural disasters. Hurricane Helene, another recent catastrophic event, caused substantial damage estimated between $15 billion to $34 billion, with Moody’s emphasizing the broader economic impacts.
Finally, Canadian financial regulator Peter Routledge stressed at the National Insurance Conference of Canada the escalating costs of insuring against climate risks. He noted that extreme weather poses significant financial burdens, potentially making certain high-risk areas uninhabitable or necessitating relocation, highlighting broader implications for both insurers and communities.
This episode paints a vivid picture of the challenges and evolving dynamics within the insurance industry in light of technological advancements and increasing climate risks.
In a recent episode of The Connected Podcast, the focus was on the pivotal stories currently shaping the insurance industry. The podcast covered a variety of insightful reports and surveys that highlight significant trends and concerns within the ecosystem.
First, Texas has taken center stage in wind and hail claims due to rising labor and material costs in storm-ravaged areas. According to Verisk Property Estimating Solutions’ quarterly property report from April to June 2024, although overall claims assignment volume remained stable, non-catastrophe claims slightly increased, while catastrophe claims saw a reduction. This trend emphasizes the ongoing importance of disaster preparedness for insurers and related stakeholders.
Moving to the automotive sector, a 2023 survey by LexisNexis Risk Solutions revealed that 76% of vehicle owners declined free trials of connected services due to a perceived lack of value, while nearly half of those who enrolled use OEM apps regularly. This survey aimed to better understand the expectations and needs of used vehicle owners.
Artificial intelligence (AI) emerged as a major topic with a study by hyperexponential uncovering that nearly 7 in 10 actuaries and underwriters fear being replaced
