Cyberattacks on vehicles are on the rise, with incidents increasing sixfold over the past four years, according to Upstream Security, while the number of connected cars is expected to reach 775 million by 2023, expanding the opportunities for hackers. "Each new service connected to a vehicle is a new potential entry point for hackers," Upstream states in a report.
About 60% of homeowners are underinsured by 17% of their home's cost, according to surveys from Marshall & Swift/Boeckh, while surveys of fire victims in California found that more than half of respondents were underinsured. Rising construction costs can result in underinsurance, as can property upgrades and natural disasters not covered under traditional homeowners insurance, such as flooding.
Insurers need to move from being product-centric to a customer-centric approach and need to prioritize the use of data and analytics, according to Toni Tomic of IBU Insurance at SAP. "Whether it's making the payments process easier, providing tailored coverages or managing huge amounts of data, digital transformation is now at the core of the insurance ecosystem," Tomic writes.
A major storm could disrupt holiday travel on the East Coast from Thursday into the weekend, and the storm could lead to increased small stream and river flooding in the Mid Atlantic and some flooding in New England. Storms in the Northwest could potentially lead to landslides and flash floods, while snow in higher elevations may raise the avalanche risk.
Katharine Wade, Connecticut's insurance commissioner, will leave her position on Wednesday after serving four years, and the department's Life and Health Division Director Paul Lombardo will take over the job on an interim basis. Connecticut Gov.-elect Ned Lamont has not announced his selection to fill the commissioner position.
Pennsylvania will lower workers' compensation rates by 14.74% starting in January, based on two filings approved by the state's insurance commissioner. One of the filings was intended to rectify a data error resulting from a carrier's overstatement of 2016 claims that resulted in overall loss costs that were 8.9% higher than they should have been.
A federal judge in Texas has ruled that the entire Affordable Care Act is unconstitutional following the repeal of the law's individual mandate penalty, but administration officials said the law, which could end up before the Supreme Court, stands while the decision is appealed. Legal experts questioned the rationale behind the ruling's discussion of congressional intent, noting Congress considered unraveling the entire law but ultimately did not do so.
FEMA has begun paying out flood claims related to the Oct. 16 flooding in central Texas, for which FEMA's National Flood Insurance Program has received more than 800 home claims. Insured losses from the claims are at $22 million and could surpass $30 million after all claims have been paid.
The Bank for International Settlements said that in the coming months, the normalization of monetary policy by central banks worldwide will likely set off sharp market sell-offs. Fourth-quarter market turmoil was "not an isolated event," according to a BIS report.
Producing a reliable "paycheck" to meet monthly living expenses can be a challenge for retirees, writes Michael Kitces of Pinnacle Advisory Group. He offers three strategies for generating consistent retirement income for retirees who don't want to use an annuity.
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