Lincoln Financial is pulling some insurance products from New York because its electronic signature process does not comply with the state's insurance sales standard, Regulation 187. NAIFA-NY President Gary Cappon said the rule and carriers leaving the state are the group's top advocacy issues, adding that it plans to work with state regulators and lawmakers to come up with "common sense solutions that will create a more favorable environment."
Climate change has been a key focus of the insurance industry as it tackles environmental, social and governance issues, including Aon's goal to achieve net-zero greenhouse gas emissions by 2030. "We want to help using the risk mitigation skills we have, the risk transfer capabilities, the access to alternative capital, modeling to be able to help these clients as they transition," Aon President Eric Andersen said.
Third-party litigation financing has become more frequent, experts say, and
APCIA has called for disclosures for these arrangements. "[I]f you have an overarching financial interest or stake in the outcome of litigation by non-lawyers, that is a little troubling," said Stef Zielezienski, executive vice president and chief legal counsel at APCIA.
Almost 30% of respondents to an Aite Group survey said they have been the victim of insurance-related identification fraud. Insurers should focus on consumer education and enhance biometrics and authentications to protect consumers, the report stated.
Most commercial lines experienced year-over-year increases in renewal rate changes in the second quarter, according to a report from Ivans Insurance Services. Commercial property and workers compensation lines experienced decreases in second-quarter renewal rate changes when compared with first-quarter results, Ivans reported.
Aon has reported that insured losses from natural disasters reached a 10-year high of $42 billion in the first half of 2021, but overall economic losses came in below the 10-year average. The US accounted for 72% of the losses.
Superior Court Judge Mary H. Strobel has ruled that California Insurance Commissioner Ricardo Lara is allowed to order the Fair Access to Insurance Requirements Plan to expand coverage for homeowners seeking insurance in wildfire-prone areas. Lara can force FAIR Plan to cover liability, but it must be tied to property damage, Strobel said.
The increased frequency of cyberattacks on critical infrastructure has forced cyberinsurers to change underwriting standards, increase prices and lower thresholds for ransom payments. "The ways of the past no longer work into the future, but never has this coverage been needed more," said Joshua Motta, co-founder and chief executive officer of insurer Coalition.
More hospitals and health care employers are pushing for employees to get coronavirus vaccinations, with the trend partially spurred by a federal judge's decision last month. However, legal experts note that additional litigation could be forthcoming, and some hospital systems might be reluctant to mandate vaccinations out of concerns about losing key staff.
Private equity firms acquired a bigger chunk of the life insurance market in 2020, growing their holdings of insurers' cash and invested assets by 39% to $471 billion, according to analysts at the Capital Markets Bureau. It's not yet clear to regulators what effect, if any, increased private equity holdings could have on the industry.