A survey from TIAA finds 51% of employers think employees would want $2,700 monthly throughout retirement, instead of a $500,000 lump sum upon retirement. The survey also finds 57% of employers think employees would get retirement income from nonguaranteed sources, while 14% of employers say income would come from an in-plan annuity.
A survey from Cerulli Associates finds 34% of people with a variable annuity are unsure of the reason they bought the product. That is likely because of variable annuities' versatility within portfolios, rather than confusion about the product, says Scott Smith of Cerulli.
The Centers for Medicare & Medicaid Services has approved New Jersey's request to create a reinsurance program, which the state expects will lower Affordable Care Act insurance premiums by as much as 15% next year. The program, which will draw funding partly from enforcement of a state penalty for residents who do not enroll in health coverage, will help insurers shoulder costs for the sickest patients.
The heightened risk of wildfire in California is unlikely to decrease until November as the threat is expected to continue as the Santa Ana winds reach the state during the fall. July was the state's hottest month on record, and higher temperatures and dry conditions have been contributing factors to 101 large fires that have burned 1.8 million acres nationwide this fire season.
The International Association of Insurance Supervisors and the Sustainable Insurance Forum have released a report that says supervisors should conduct "ongoing and intensifying scrutiny" of climate-change risks such as extreme weather events that insurers face. The report notes a rising trend in physical, transition and liability risks as well as insured and economic losses.
The Los Angeles subway system will adopt body scanners to detect suspicious materials such as weapons or explosives from 30 feet away, and customers who opt not to undergo screening won't be allowed to ride on the subway. This is the first instance of a US mass transit system installing body scanners, and the Transportation Security Administration has tested scanners at stations in New York City, New Jersey and Washington, D.C.
An investigation found that Redding, Calif., fire inspector Jeremy Stoke was killed by a "fire tornado" that was about 1,000 feet wide and had wind speeds as high as 165 mph. Smoke from wildfires in California has caused Seattle's air quality to fall to its worst level on record and has even reached Maryland and other parts of the Mid-Atlantic.
The San Francisco area has a more than 70% chance of experiencing an earthquake of magnitude 6.7 or greater in the next 30 years, according to the US Geological Survey. The USGS and experts are raising concerns about the seismic resilience of San Francisco's skyscrapers, and Glenn Pomeroy of the California Earthquake Authority said appropriate insurance for homes is crucial.
An analysis by the Center for Economic and Policy Research found that about half of people age 65 and older rely on Social Security for half of their income and about one-quarter get 90% of their income from it. The analysis also found that women and people of color rely on Social Security more than other groups.
Insured losses resulting from first-half catastrophes were $20 billion worldwide, down from $30 billion in the same period last year and below the $35 billion average, according to Swiss Re. First-half global economic losses were $36 billion, compared with $64 billion in the first half of 2017 and the long-term average of $125 billion, Swiss Re said.
- Page 1