In this week's news will talk about how US homeowners' insurers hit record low, Hurricane Beryl to cause up to $3 billion in insured losses, and much more…
Revolutionizing insurance connectivity with Ivans
In a recent conversation with Nicole Panteloucos from Insurance Business, Kathy Hrach, senior vice president of product management at Ivans, discussed how their cutting-edge technology is revolutionizing connectivity and driving operational excellence across insurance carriers, MGAs, and independent agencies.
Ivans’ advanced software facilitates seamless communication among insurance carriers, MGAs, and independent agencies, streamlining the transfer of crucial information such as policy details, claims data, billing information, compliance forms and other essential documents.
The Ivans 2022 Connectivity Survey revealed that 90% of agencies place more business with carriers offering connectivity, highlighting that tools like Ivans are beneficial for agency profitability. However, many agencies are either unaware of the full range of download services available or mistakenly believe they are utilizing all options.
Ivans’ advanced software facilitates seamless communication among insurance carriers, MGAs, and independent agencies, streamlining the transfer of crucial information such as policy details, claims data, billing information, compliance forms and other essential documents.
The Ivans 2022 Connectivity Survey revealed that 90% of agencies place more business with carriers offering connectivity, highlighting that tools like Ivans are beneficial for agency profitability. However, many agencies are either unaware of the full range of download services available or mistakenly believe they are utilizing all options.
US homeowners' insurers hit record low
The US homeowners’ insurance market has encountered its worst underwriting results since at least 2000, with population shifts into regions increasingly prone to weather-related events playing a significant role, according to a recent AM Best report.
The “Migration to CAT-Prone Areas Adds to US Homeowners’ Insurers’ Performance Volatility” report highlights a staggering $15.2 billion underwriting loss for 2023. The loss more than doubles the previous year’s figure and marks the worst in over two decades, with 2011’s $14.8 billion loss being the next highest.
Urbanization and population growth in areas vulnerable to natural disasters are compounding the issue, the report indicates. US Census data shows that California, Florida, Georgia, North Carolina, Texas, and Washington collectively accounted for 53% of the nation’s population growth from 2010 to 2020, all states known for severe weather events.
The “Migration to CAT-Prone Areas Adds to US Homeowners’ Insurers’ Performance Volatility” report highlights a staggering $15.2 billion underwriting loss for 2023. The loss more than doubles the previous year’s figure and marks the worst in over two decades, with 2011’s $14.8 billion loss being the next highest.
Urbanization and population growth in areas vulnerable to natural disasters are compounding the issue, the report indicates. US Census data shows that California, Florida, Georgia, North Carolina, Texas, and Washington collectively accounted for 53% of the nation’s population growth from 2010 to 2020, all states known for severe weather events.
From earth to orbit: insurance for space tourism
From the historic moment in 1969 when Neil Armstrong first set foot on the Moon, marking mankind’s giant leap, technological progress has been remarkable.
Scorpius Space Launch Company (SSLC) made headlines this past February as the first-ever commercial company to successfully land their Type V propellant tanks on the Moon. Following closely, Virgin Galactic completed its most recent commercial space trip just last month. Indeed the race to space tourism is in full swing with trailblazers like Blue Origin and SpaceX also leading the charge.
With the global market for space tourism estimated at $977.4 million in 2023 and projected to exceed $6 billion by 2030, the sector is poised to be a lucrative opportunity for insurance brokers too. As developments unfold, the reality of a mainstream space tourism insurance market might be closer than we think, making understanding the risks of space travel increasingly crucial.
Scorpius Space Launch Company (SSLC) made headlines this past February as the first-ever commercial company to successfully land their Type V propellant tanks on the Moon. Following closely, Virgin Galactic completed its most recent commercial space trip just last month. Indeed the race to space tourism is in full swing with trailblazers like Blue Origin and SpaceX also leading the charge.
With the global market for space tourism estimated at $977.4 million in 2023 and projected to exceed $6 billion by 2030, the sector is poised to be a lucrative opportunity for insurance brokers too. As developments unfold, the reality of a mainstream space tourism insurance market might be closer than we think, making understanding the risks of space travel increasingly crucial.
Revealed – top cyber insurance carriers
Insuramore has ranked the top underwriters of cyber insurance based on gross direct premiums written (GDPW) in 2023.
Insuramore noted: “This analysis indicates that GDPW for cyber insurance can be estimated globally at just over US$15.7 billion in 2023, rising to more than US$16 billion if captive insurers are also included, and with the US continuing to account for over a half of the total once underwriters operating in Bermuda and at Lloyd’s of London are added to those based in the US itself.
Insuramore noted: “This analysis indicates that GDPW for cyber insurance can be estimated globally at just over US$15.7 billion in 2023, rising to more than US$16 billion if captive insurers are also included, and with the US continuing to account for over a half of the total once underwriters operating in Bermuda and at Lloyd’s of London are added to those based in the US itself.
Hurricane Beryl to cause up to $3 billion in insured losses
Verisk’s extreme event solutions team projects that Hurricane Beryl will cause insured losses to onshore properties in the US amounting to between $2 billion and $3 billion.
Beryl, which had crossed the Windward Islands as a Category 4 hurricane by July 1 and became the earliest Category 5 hurricane recorded in the Atlantic, achieved peak intensity on July 2 with sustained winds of 165 mph.
Despite initially favorable conditions for further intensification, Beryl’s structural imperfections limited it to a Category 1 hurricane at landfall near Matagorda Bay, Texas, around 4am CDT on July 8. The storm made landfall with maximum sustained winds of 80 mph and a central pressure of 979 mb before progressing inland.
Beryl, which had crossed the Windward Islands as a Category 4 hurricane by July 1 and became the earliest Category 5 hurricane recorded in the Atlantic, achieved peak intensity on July 2 with sustained winds of 165 mph.
Despite initially favorable conditions for further intensification, Beryl’s structural imperfections limited it to a Category 1 hurricane at landfall near Matagorda Bay, Texas, around 4am CDT on July 8. The storm made landfall with maximum sustained winds of 80 mph and a central pressure of 979 mb before progressing inland.
