The Friday Five: Week of December 9, 2019

by Jen Smoldt on December 13, 2019

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If you care about what’s happening in the world of property and casualty (P&C), then this is the place to be. Each week, we serve up a bite-size roundup of the latest news, hot topics, and (admittedly subjective) tidbits to keep curious insurance professionals, like you, in-the-know.

Quote of the Week:

“I am calling on insurance companies to push the pause button on issuing non-renewals for one year to give breathing room to communities and homeowners while they adapt and mitigate risks, give the legislature time to work on additional lasting solutions, and allow California’s insurance market to stabilize.” -Ricardo Lara, California’s Insurance Commissioner

  1. California has issued a mandatory one-year moratorium...On insurers who refuse to renew policies in wildfire disaster areas in Northern and Southern California. Going a step further, Commissioner Lara called on insurance companies to voluntarily cease all non-renewals related to wildfire risk statewide until December 5, 2020.
  2. On the other side of the world…Australia’s bushfires continue to rage with 680 homes destroyed and more than 2.5 million acres of bushland burned. While NASA has hotspot data for the region, there’s still a lack of boundary data. Here’s what insurers can do... 
  3. Floodplain protection = Billions in savings...New research has found that every $1 dollar invested in floodplain protection in the U.S. would return at least $5 in savings from avoided flood damages in the future. Right now, flood losses in the U.S average nearly $10 billion annually. 
  4. Got political violence? A new survey from Willis Towers Watson shows more companies reported that they had experienced political risk losses in 2019, with 54% of respondents having experienced a loss as a result of political violence. 
  5. What are the 3 top challenges facing the insurance industry? Climate change, the rise of new ecosystems and operating models, and more inclusive insurance according to a new report by EY which says the potential impact of climate change on the insurance sector is "staggeringly large." 

Missed last week’s Friday Five? Check it out here.  

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Topics: wildfire risk, Political Violence, Flood risk

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