The Friday Five: Week of November 18, 2019

by Jen Smoldt on November 22, 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:

“The role of the CEO is critical. The CEO is ideally positioned to calibrate materiality to judge whether the organization is doing enough — if what people think is being done is bold enough. [This is] why successful transformations are increasingly CEO-led.”          -Kurt Strovink, Senior Partner at McKinsey & Company

  1. How to boost performance amid growing catastrophes? McKinsey & Company finds successful insurance companies are increasingly CEO-lead with "purposeful, bold moves" that boost underwriting margins and improve productivity. Read more about how 61% of insurers moving away from traditional business models...
  2. Mitigation matters... Flood-related disasters have cost the U.S. more than $845 billion since 2000, according to a new report from the Pew Research Center which details how some state and local governments are taking steps to reduce their flood risk. 
  3. More Michael and Irma loss creep... The loss tally for Hurricane Michael is now $7.44 billion with 15,893 claims still open and less than 69% of commercial claims closed. While Michael's average cost per claim is significantly more than Hurricane Irma at $62,661, Irma losses now reportedly exceed $32 billion with an overall economic loss of $67 billion
  4. Speaking of losses... 2018 was the 4th costliest year on record. Global natural catastrophes cost $89 billion in insured losses (and still climbing) with 64% of total losses in the U.S. driven by the Colorado hailstorm, Woolsey Fire, Camp Fire, Hurricane Florence, and Hurricane Michael.
  5. Complaints over losing insurance... in high-wildfire areas nearly doubled in the last two years in California and has increased by about 570% since 2010. As such, regulators announced the state will expand its guaranteed insurance policy (FAIR Plan) for those who cannot find wildfire coverage in the private market. Starting in April, the FAIR Plan will cover up to $3 million in losses versus the current $1.5 million. 

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

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Topics: technology innovation, California Wildfires, Flood risk, hurricane risk

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