Agency Tips

Weekly News Roundup: November 18th

From your teeth to the UK, here are the top insurance stories of the last week!

 

 

The Insurance industry is ever-changing and keeping up with everything that happens can be difficult. 

With that in mind, here are some of the recent stories from around the insurance world that we found interesting.

1. Lloyd’s Uses Insurance To Predict England Will Win World Cup

The Insurance Company Lloyd’s of London has predicted England will win the world cup by comparing the cumulative amount all players are insured for. Players are insured through a variety of metrics including age, gameplay, and contracts. Lloyd’s is going for a third consecutive world cup prediction win after getting their predictions correct previously with Germany and France. 

Insurance is often tied directly to our perception of value. And while we can't predict the future, Insurance provides a clear way to see just how valuable we view something. 

Football or soccer ball at the kickoff of a game - outdoors

2. Stolen Australian Insurance Data Leaked To The Dark Web

Australian Health Insurance company Medibank Private Ltd. had the data of hundreds of customers leaked this week on the dark web. The leak appears to be part of a ransom attack that snatched the private information of up to 9.7 million customers. Medibank has stated it will not pay the ransom and expects more data to be leaked soon. The company is expected to lose 129 million dollars from this leak and its stock has slumped 20% since the hack was detected earlier this month. 

This story provides another warning to private and public companies to increase their data security. Not just for your customer's safety, but also for your bottom line. 

3. World Bank Announced new Facility to Combat Climate Cost

The world bank had announced it will be hosting a facility called the Global Shield Financing Facility. Which is designed to help countries suffering heavy economic loss due to climate change. German Chancellor Olaf Scholz has announced that it will offer 170 million euros to the program. 

As climate change continues to worsen, so too will the damage caused by catastrophic weather. As the world bank puts its plans into place, your agency should also look to the future. Insurers must be ready for this and adjust their business models accordingly. This would also be a good time to begin to explain the benefits of insurance dedicated to climate disasters to your policyholders. 

double exposure of hand drawn texture globe on wood table near note book and glasses

4. UK Government Pushes Forward With Long-Awaited Insurer Reforms

The UK government has released a statement saying it plans to move forward with insurer reforms. The plan will cut insurers' capital buffer or risk margin by 30% for general insurers and 65% for life insurers. 

The Prudential Regulation Authority, the branch of the Bank of England that supervises financial institutions, will also expand its powers. The organization will now be able to publish specific results of insurers' capital stress testing instead of just aggregate data which is what is allowed now. 

Supporters say this change in regulation could bring much-needed investment to the British economy. However, the PRA was against deregulation and argued the government should tighten up regulations in some places. 

Big Ben in sunny day, London

5. Massachusetts passes dental insurance regulation

Massachusetts has become the first state in the US to introduce a uniform “medical loss ratio” after voters passed Question 2 when they went to the polls on Tuesday. An MDL is the share of total premiums collected that "must be spent on improving the quality of care" instead of going to other places like administrative costs or profits earned and salaries. The bill requires 83% of premiums on patient expenses. Insurers who fail to meet these guidelines will be forced to provide patients with rebates.

This ballot is only for Massachusetts now. However, it marks a growing sentiment among the American people for more regulated and available healthcare in the United States. Insurance companies should watch these changes and be ready to comply with other ballot measures in the future. 

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