Specialty insurance sector could be facing a massive coronavirus hit

Insurance Business America | April 02, 2020

A new release from financial analysis firm Demotech has revealed that in addition to the business interruption insurance segment, there is another sector facing immense stress caused by the COVID-19 pandemic – credit insurance. According to the release, there were 102 insurers as of December 31, 2019 that reported direct premium written for credit insurance. Direct premium written for credit insurance for those insurers was $2.2 billion at year-end 2019. Of the 102 credit insurers, the top 20 writers accounted for more than $1.9 billion – 86% of the total amount. Among the top 20 writers, credit insurance comprised about 7% of their books of business. Demotech suggested that insurers that write credit unemployment insurance will see a surge in claim frequency and severity due to the unemployment resulting from efforts to mitigate the coronavirus outbreak in the first and second quarters of 2020. The analytics firm hopes that the top 20 credit insurance writers’ adequate diversification of their books of business will allow them to manage this spike in exposure due to the pandemic.

Spotlight

While it might sometimes feel like a very settled market, motor insurance is changing as consumers’ needs change. A combination of the social and economic effects of the Covid-19 pandemic, inflationary forces and increased public concern about the environment are altering the way many U.K. consumers use their cars. One consequence of these changes is growing interest in non-annualised policies (NAPs) for motor insurance.

Spotlight

While it might sometimes feel like a very settled market, motor insurance is changing as consumers’ needs change. A combination of the social and economic effects of the Covid-19 pandemic, inflationary forces and increased public concern about the environment are altering the way many U.K. consumers use their cars. One consequence of these changes is growing interest in non-annualised policies (NAPs) for motor insurance.

Related News

CORE INSURANCE, RISK MANAGEMENT

Idelic Introduces Idelic Insurance Agency for Fleets

Idelic | January 19, 2023

Idelic Inc. recently announced the launch of Idelic Insurance Agency, LLC, a technology-driven managing general agent (MGA) aimed at providing commercial fleets with tailored insurance coverage. The insurance pricing will reflect the fleets’ risk improvement by using the Idelic Program, a comprehensive approach to improving driver safety and reducing crashes. Idelic Insurance Agency also aims to provide a modern approach to improving insurance outcomes by allowing fleets to use technology and processes to reduce losses. The insurance agency will price renewals based on the fleets’ successful adoption and results. The Idelic Program consists of two major components: Safety Suite® and Driver Safety Playbook. Safety Suite® is the best driver performance management platform in the trucking industry. It collects driver risk data and uses machine learning algorithms to identify high-risk drivers. Meanwhile, the Driver Safety Playbook is an excellent guide to engaging drivers, providing coaching and step-by-step professional development plans made by working with insurers and trucking's safest fleets. On average, fleets utilizing Idelic Program can witness a 20% decrease in preventable crashes in the first year. "Commercial auto fleet insurance is inherently complex with a multitude of nuances from fleet to fleet. The process of evaluating risks has traditionally relied on underwriter experience and judgment, but insurers are increasingly looking for a more data-driven way to evaluate risks. Idelic Insurance Agency will do just that," stated Michael Gramm, Senior Vice President of Insurance at Idelic Insurance Agency. "By working closely with fleets that choose to use the Idelic Program, we can better leverage critical driver behavior data to quote policies that reflect their reduced crash risk," he added. (Source – Business Wire) The Idelic Program and Idelic Insurance Agency are timely solutions to help fleets combat rising insurance rates and reduce losses significantly. However, fleet insurance costs and availability are once again among the Top 10 motor carrier executive concerns listed by American Transportation Research Institute (ATRI). About Idelic Inc. Pittsburgh-based Idelic is a software provider dedicated to delivering the best insurance outcomes for fleets. The Idelic Program combines process and technology in a tool designed for and proven successful among fleets and insurers alike. Additionally, the program uses predictive analytics to identify risky drivers and professional development plans to help change behavior patterns and provide insurers with evidence of long-term improvements in crash reduction to negotiate lower rates. The company's experienced technical and industry experts understand the trucking and insurance industries' needs and provide tailored solutions to clients' real problems.

Read More

RISK MANAGEMENT,INSURANCE TECHNOLOGY

AF Group Successfully Acquires AmeriTrust Group

AF Group and AmeriTrust Group | January 10, 2023

AF Group, a widely-acclaimed holding company, recently acquired AmeriTrust Group. The acquisition, which was first announced in April 2022 and now received regulatory approval, brings together two world-class, Michigan-based insurance organizations operating in the property and casualty market. Daniel J. Loepp, President and CEO of AF Group's parent company, Blue Cross Blue Shield of Michigan, commented, "Adding a trusted and respected company like AmeriTrust to the Blue Cross Blue Shield of Michigan enterprise is exceptional news for our organization." He further states, "We look forward to the expanded capabilities and talented team AmeriTrust will add to AF Group's industry-leading expertise in the property and casualty space, enabling greater service offerings to agents and customers." (Source: PR Newswire) The acquisition empowers AF Group to provide its customers with a broader range of products and services while solidifying its increasingly powerful position and standing in the market, which has grown tremendously over the last decade. Acknowledged for its financial strength as Ward's 50 company and A.M. Best's ‘A’ (excellent) rating, AF Group is also known for its award-winning people-first culture. "We could not be more pleased to welcome the AmeriTrust team to our organization," expressed Lisa Corless, President and CEO of AF Group. "The work and commitment of AmeriTrust associates has led to a very strong reputation in the industry, and we're excited to add their expertise and capabilities as we broaden our product offerings to the benefit of our partner agents and shared policyholders nationwide," she concluded. (Source: PR Newswire) About AF Group AF Group is a globally-known holding firm headquartered in Lansing (Michigan), whose affiliated insurance brands are premier suppliers of creative, specialist insurance solutions. Owing to the strength of AF Group and its brands, its customers have access to qualified insurance specialists as well as the support needed to keep prices low and workers safe. The dedicated and committed team at AF Group uses industry-leading best practices, analytics, and resources to manage risk and limit loss for its policyholders while growing relationships with its valued independent agent partners. About AmeriTrust Group, Inc. Based in Southfield (Michigan), the company is a highly acclaimed specialty, niche-focused commercial insurance underwriter and provider of insurance administration services in the commercial property and casualty insurance industry. AmeriTrust provides insurance solutions to a variety of trade, industry, professional associations, governmental entities, affinity groups, and independent agents. Carrier activities include six insurance firms that are licensed in all 50 states, both admitted and non-admitted.

Read More

CORE INSURANCE, INSURANCE TECHNOLOGY

Inszone Insurance Services Completes Acquisition of Larry Fu Insurance Agency

Inszone Insurance Services | March 17, 2023

Inszone Insurance Services: a rapidly growing, national provider of benefits, personal and commercial lines insurance, announced today the acquisition of Larry Fu Insurance Agency, Inc. The addition of Larry Fu Insurance Agency to the Inszone Insurance team is a strategic move that brings together two trusted insurance providers with a shared commitment to exceptional customer service. Founded in 1979, Larry Fu Insurance Agency has built a strong reputation as a family-owned and operated business, providing exceptional service to its clients for over 40 years. Larry and Shirley Fu started their business from the ground up, and their dedication and hard work have earned them a loyal clientele from all over the Bay Area and Southern California. "Larry Fu Insurance Agency has a long-standing reputation for exceptional customer service and market expertise, making them a perfect fit for Inszone Insurance," said Chris Walters, CEO of Inszone Insurance Services. "Their values align with ours, and we are excited to welcome the Larry Fu Insurance team to the Inszone Insurance family." As part of the acquisition, clients of Larry Fu Insurance Agency can expect to receive the same exceptional service and care they have come to expect from Larry Fu Insurance Agency, now under the Inszone Insurance brand. This acquisition is just one of many that Inszone Insurance Services plans to make as it continues to expand its national footprint and serve clients with exceptional insurance placement capabilities and personalized service. About Inszone Insurance Services Founded in 2002 and headquartered in Sacramento, California, Inszone is a full-service insurance brokerage firm that provides a broad array of property & casualty insurance, along with employee benefits solutions. With a strong, experienced management team, Inszone continues to grow organically, as well as through acquisitions. With 40 locations across California, Arizona, Nevada, Utah, Colorado, Michigan, Missouri, Oregon, Texas, and Illinois, the company is looking to further expand throughout the United States.

Read More