Auto premiums continue to increase as rising labor and material prices, alongside natural disasters, are forcing insurers to contend with significant losses.
As Triple-I previously found in its January report, Insurance Economics and Underwriting Projections: A Forward View, “commercial auto underwriting losses continue, with a projected 2023 net combined ratio of 110.2, the highest since 2017,” according to Jason B. Kurtz, FCAS, MAAA, a Principal and Consulting Actuary at Milliman. Combined ratio is a standard measure of underwriting profitability, in which a result below 100 represents a profit and one above 100 represents a loss.
Insurers are now having to increase rates in response to losses that are expected to keep rising.
“Nobody wants to have that higher-price bill,” said Sean Kevelighan, Triple-I’s CEO. However, he added companies “need to price insurance according to the risk level that’s out there.”
While inflation is partially to blame for these increases, natural disasters are also contributing to rising costs—and not only in traditionally disaster-prone areas like Florida and California.
As the overall P&C industry has struggled with severe convective storms, hurricanes, and other natural disasters, these losses have also been felt in commercial auto. In fact, 2023 witnessed around two dozen U.S. storms, each with losses of around a billion dollars or more. This included major lightning, hail, and damaging winds around many areas of the U.S.
“While a lot of these storms don’t make national headlines, they do tend to be very costly at the local level,” says Tim Zawacki, principal research analyst for insurance at S&P Global Market Intelligence. “And the breadth of where these storms are occurring is something that I think the industry is quite concerned about.”
While disasters and economic inflation continue to roil commercial auto, so too does social inflation. As the Triple-I previously reported, “social inflation,” which is the presence of inflation in excess of economic inflation, has also significantly contributed to increases in commercial auto premiums.
Triple-I found that “from 2013 to 2022, increasing inflation drove losses up by between $35 billion and $44 billion, or between 19 percent and 24 percent. The pandemic brought significant change to commercial auto liability, decreasing claim frequency while increasing claim severity more dramatically.”
This increased claim severity is at least partially due to changing driving patterns since the pandemic, including distracted driving, which involves behaviors like cellphone use while behind the wheel. A Triple-I Issues Brief, Distracted Driving: State of the Risk, enumerated these concerns, which have undoubtedly played a role in rising commercial auto premiums.
Indeed, a confluence of issues are playing into rising auto premiums. While natural disasters are out of the control of insurance providers and their policyholders, other factors must be addressed to steady the cost of this line of insurance. This includes telematics and usage-based insurance, which has gained more acceptance since the pandemic.
Still, it is incumbent on insurers, policyholders, and policymakers to create a more sustainable market for auto insurance, working together to tackle the challenges of both climate risk and dangerous driving behavior.
Source: https://insuranceindustryblog.iii.org/category/auto-insurance/
Service Line Coverage and Water Backup Coverage: What Every Homeowner Should Know
As a homeowner, protecting your investment goes beyond the structure of your home. It also includes safeguarding essential systems and addressing potential risks. Two valuable insurance coverages you may want to consider are Service Line Coverage and Water Backup Coverage. In this article, we will define these coverages and explain why they are important for homeowners.
Service Line Coverage
What Is Service Line Coverage?
Service Line Coverage is an insurance policy endorsement that protects you against the costs associated with the repair or replacement of underground service lines on your property. These service lines typically include water lines, sewer lines, electrical lines, and communication lines that connect your home to public utility systems.
Why Is Service Line Coverage Important?
Water Backup Coverage
What Is Water Backup Coverage?
Water Backup Coverage, also known as Sewer Backup Coverage, is an insurance policy endorsement that provides protection in case your home experiences damage due to water or sewage backing up into your property through drains, sewers, or sump pumps.
Why Is Water Backup Coverage Important?
Both Service Line Coverage and Water Backup Coverage are essential additions to your home insurance policy. They protect you from unexpected and potentially costly events that standard policies typically do not cover. These coverages provide financial security and peace of mind, ensuring that you can address service line issues and water backup damage without significant financial strain. Be sure to discuss these options with your insurance agent to determine the best coverage for your specific needs as a homeowner.
Pet Safety: How to Keep Your Furry Friends Safe and Comfortable During the Summer
Summer is a fun time for humans and pets, but the rising temperatures can pose risks to our furry friends. Here are some essential tips to ensure your pets stay safe and comfortable during the summer season:
By following these essential tips, you can ensure your pets stay safe, cool, and comfortable during the summer season. Remember, your pets rely on you to keep them safe and healthy, so prioritize their well-being during hot weather. Have a happy and safe summer with your furry friends!
Summer Travel Safety: Tips for Staying Safe and Secure While Traveling
Summer is a popular time for travel, whether it’s a road trip, a beach vacation, or an international adventure. It’s important to prioritize safety and security during your travels to ensure a smooth and enjoyable trip. Here are some tips for staying safe and secure while traveling during the summer:
Remember that safety should always be a top priority while traveling. By being prepared, vigilant, and using common sense, you can have a safe and enjoyable summer travel experience.
Auto Insurers Contend With Rising Auto Costs
Auto premiums continue to increase as rising labor and material prices, alongside natural disasters, are forcing insurers to contend with significant losses.
As Triple-I previously found in its January report, Insurance Economics and Underwriting Projections: A Forward View, “commercial auto underwriting losses continue, with a projected 2023 net combined ratio of 110.2, the highest since 2017,” according to Jason B. Kurtz, FCAS, MAAA, a Principal and Consulting Actuary at Milliman. Combined ratio is a standard measure of underwriting profitability, in which a result below 100 represents a profit and one above 100 represents a loss.
Insurers are now having to increase rates in response to losses that are expected to keep rising.
“Nobody wants to have that higher-price bill,” said Sean Kevelighan, Triple-I’s CEO. However, he added companies “need to price insurance according to the risk level that’s out there.”
While inflation is partially to blame for these increases, natural disasters are also contributing to rising costs—and not only in traditionally disaster-prone areas like Florida and California.
As the overall P&C industry has struggled with severe convective storms, hurricanes, and other natural disasters, these losses have also been felt in commercial auto. In fact, 2023 witnessed around two dozen U.S. storms, each with losses of around a billion dollars or more. This included major lightning, hail, and damaging winds around many areas of the U.S.
“While a lot of these storms don’t make national headlines, they do tend to be very costly at the local level,” says Tim Zawacki, principal research analyst for insurance at S&P Global Market Intelligence. “And the breadth of where these storms are occurring is something that I think the industry is quite concerned about.”
While disasters and economic inflation continue to roil commercial auto, so too does social inflation. As the Triple-I previously reported, “social inflation,” which is the presence of inflation in excess of economic inflation, has also significantly contributed to increases in commercial auto premiums.
Triple-I found that “from 2013 to 2022, increasing inflation drove losses up by between $35 billion and $44 billion, or between 19 percent and 24 percent. The pandemic brought significant change to commercial auto liability, decreasing claim frequency while increasing claim severity more dramatically.”
This increased claim severity is at least partially due to changing driving patterns since the pandemic, including distracted driving, which involves behaviors like cellphone use while behind the wheel. A Triple-I Issues Brief, Distracted Driving: State of the Risk, enumerated these concerns, which have undoubtedly played a role in rising commercial auto premiums.
Indeed, a confluence of issues are playing into rising auto premiums. While natural disasters are out of the control of insurance providers and their policyholders, other factors must be addressed to steady the cost of this line of insurance. This includes telematics and usage-based insurance, which has gained more acceptance since the pandemic.
Still, it is incumbent on insurers, policyholders, and policymakers to create a more sustainable market for auto insurance, working together to tackle the challenges of both climate risk and dangerous driving behavior.
Source: https://insuranceindustryblog.iii.org/category/auto-insurance/
Common Roofing Problems and Their Solutions
Your roof is your home’s first line of defense against the elements, and it’s essential to keep it in good condition to ensure the safety and longevity of your property. Over time, various roofing problems can arise, but the good news is that most of these issues can be addressed with timely repairs. In this blog post, we will discuss some of the most common roofing problems homeowners encounter and the solutions to resolve them effectively.
Leaky Roof:
Shingle Damage:
Moss and Algae Growth:
Ice Dams:
Roof Ventilation Issues:
Flashing Problems:
Sagging Roof:
Gutter Clogs:
Regular roof inspections and maintenance are vital for identifying and addressing common roofing problems before they escalate. Whether it’s a minor repair or a more extensive renovation, acting promptly can extend the life of your roof and protect your home from costly damage. If you encounter any of these issues, don’t hesitate to consult a professional roofing contractor for expert solutions.
The Sobering Stats: Drunk Driving and Its Impact on Insurance Premiums
Drunk driving is a pervasive issue that not only poses significant risks to road safety but also has lasting consequences on individuals’ financial well-being. The following show sobering statistics of drunk driving and how they correlate with increases in auto insurance premiums.
The Alarming Statistics
The numbers are stark and alarming. According to the National Highway Traffic Safety Administration (NHTSA), alcohol-impaired driving contributes to a considerable portion of road accidents. In recent years, nearly 10,000 people lost their lives in crashes involving alcohol-impaired drivers, accounting for nearly 28% of all traffic-related fatalities.
Impact on Insurance Premiums
For those caught driving under the influence, the financial impact goes beyond legal fines and court fees. Insurance premiums take a substantial hit. On average, a DUI conviction can result in a staggering 80% increase in auto insurance premiums. This spike in costs is attributed to the heightened risk that insurers associate with drivers who have a history of impaired driving.
Risk Assessment by Insurers
Insurance providers meticulously assess risk when determining premiums. A driver with a DUI is statistically considered a high-risk individual due to the increased likelihood of accidents and claims. This risk assessment translates directly into higher insurance premiums, reflecting the potential financial exposure that comes with covering a driver prone to impaired decision-making behind the wheel.
Regional Variances
Statistics also highlight regional variations in the prevalence of drunk driving and its impact on insurance premiums. States with stricter DUI penalties and enforcement tend to have lower instances of drunk driving accidents and may see comparatively lower insurance premium increases for those convicted.
Age and Gender Disparities
Studies show that certain demographic factors, such as age and gender, play a role in drunk driving statistics. Younger drivers and males are more likely to engage in risky behavior, including driving under the influence. Consequently, this demographic may experience more substantial increases in insurance premiums following a DUI conviction.
Repeat Offenders
Another concerning statistic is the rate of repeat DUI offenses. A significant number of individuals who have been convicted of driving under the influence continue to engage in risky behavior. Repeat offenses not only result in more severe legal consequences but also lead to higher insurance premiums, as insurers perceive an elevated level of risk.
The statistics surrounding drunk driving and its impact on insurance premiums underscore the importance of responsible decision-making behind the wheel. The financial ramifications of a DUI go beyond the initial legal penalties, affecting individuals’ ability to secure affordable auto insurance for years. By understanding these statistics, individuals can make informed choices, prioritize responsible driving, and contribute to safer roads for everyone.
AC Marmo & Sons, Inc. LOVES Insuring Your Life!
Life is the most precious gift, and we love insuring yours! AC Marmo & Sons, Inc. values every single one of our loyal clients, and this month, we are sending you love and gratitude for welcoming us into your families and homes. It is our pleasure and honor to provide you with protection and assurance in these times of uncertainty. Some of the most impactful services we proudly provide are:
Auto Insurance
Homeowners Insurance
Flood Insurance
Commercial Auto Insurance
Workers Compensation Insurance
https://www.acmarmo.com/ Fairfield Office (973) 340-9100 Lavallette Office (732) 793-7530 Fairfield Location: 350 Passaic Avenue PO Box 11115 Fairfield, NJ 07004 Lavallette Location:1605 Grand Central Avenue, Suite #3 Lavallette, New Jersey 08735
Hypothermia – Prevention Tips
Preventing hypothermia is important because it can be a life-threatening condition. Hypothermia occurs when your body loses heat faster than it can produce it, causing your core body temperature to drop below the normal range (around 98.6°F or 37°C). Preventing hypothermia involves taking measures to stay warm, dry, and protected in cold environments. Take proactive steps to avoid hypothermia.
Dress in Layers
Stay Dry
Protect Extremities
Stay Active
Seek Shelter
Stay Hydrated and Well-Fed
Know the Signs
Avoid Alcohol and Tobacco
Stay Informed
Remember that the severity of hypothermia can vary, and individual susceptibility may depend on factors such as age, health condition, and environmental conditions. Taking preventive measures is essential for maintaining overall well-being and reducing the risk of serious health complications associated with hypothermia.
Mastering Your Ceiling Fan: Seasonal Comfort Hacks
Ceiling fans are not only functional but also play a significant role in maintaining comfort and energy efficiency in our homes. Depending on the season, the direction in which your ceiling fan blades spin can make a significant difference in the way you feel and your energy bills. In this blog, we’ll explore the optimal ceiling fan settings for both summer and winter to help you make the most of this essential home appliance.
Summer: Cooling Down
During the sweltering summer months, the primary goal is to keep your living spaces cooler without cranking up the air conditioning and running up your electricity bill. To achieve this, your ceiling fan should spin counterclockwise when looking up at it from below. Here’s why:
Winter: Warming Up
In the colder winter months, the goal is to keep your living spaces warm without overworking your heating system. To achieve this, your ceiling fan should spin clockwise when looking up at it from below. Here’s why:
Adjusting Your Ceiling Fan
Switching the direction of your ceiling fan is typically done through a switch on the fan’s motor housing. Some newer models even come with remote controls, making it easy to change the fan’s direction at the push of a button.
Remember to turn off the fan before adjusting its direction to avoid damaging the motor or blades. Once the season changes, simply reverse the direction to match the recommended settings.
Ceiling fans are versatile and valuable assets for maintaining comfort and reducing energy costs in your home. By adjusting the direction of your ceiling fan blades according to the season, you can maximize its benefits. During the summer, set it to counterclockwise to cool down, and in the winter, set it to clockwise to warm up. This simple adjustment can help you stay comfortable year-round while saving on your energy bills.
CRASH-AVOIDANCE FEATURES COMPLICATE AUTO REPAIRS BUT STILL ARE VALUED
As more new vehicles become equipped with crash-avoidance features, some owners report significant issues with the technologies after repairs, according to a recent report from the Insurance Institute of Highway Safety (IIHS).
In the survey, approximately half of those who reported an issue with equipped front crash prevention, blind-spot detection, or rearview or other visibility-enhancing cameras said at least one of those systems presented problems after the repair job was completed.
Nevertheless, many owners remained eager to have a vehicle with these features and were pleased with the out-of-pocket cost, according to Alexandra Mueller, IIHS senior research scientist.
“These technologies have been proven to reduce crashes and related injuries,” Mueller said. “Our goal is that they continue to deliver those benefits after repairs and for owners to be confident that they’re working properly.”
Still, as problems with these technologies persist, the study notes that it is important to track repair issues to further the adoption of crash avoidance features. IIHS research has shown that front-crash prevention, blind-spot detection, and rearview cameras all substantially reduce the types of crashes they are designed to address. For example, IIHS said, automatic emergency braking reduces police-reported rear-end crashes by 50 percent.
An analysis conducted by the IIHS-affiliated Highway Loss Data Institute (HLDI) showed the reduction in insurance claims associated with Subaru and Honda crash-avoidance systems remained essentially constant, even in vehicles more than five years old. But repairs can make it necessary to calibrate the cameras and sensors that the features rely on to work properly, making repairs complicated and costly.
For example, a simple windshield replacement can cost as little as $250, while a separate HLDI study found vehicles equipped with front crash prevention were much more likely to have glass claims of $1,000 or more. Much of that higher cost is likely related to calibration.
The new IIHS study found that owners often had more than one reason requiring repairs to these safety features. Most had received a vehicle recall or service bulletin about their feature, but that was rarely the sole reason they brought their vehicles in for service or repair.
“Other common reasons — which were not mutually exclusive — included windshield replacement, crash damage, a recommendation from the dealership or repair shop, and a warning light or error message from the vehicle itself,” according to the study.
Repair difficulties could motivate drivers to turn off crash avoidance features, potentially making collisions more likely. But, despite the post-repair issues, the study found that slightly more than 5 percent of owners would opt not to purchase another vehicle with the repaired feature. As reckless driving and traffic fatalities continue to rise, advanced driver-assistance systems will only become more important for the roadway safety, necessitating reliable technology.
Source: Max Dorfman | https://www.iii.org/insuranceindustryblog/crash-avoidance-features-complicate-auto-repairs-but-still-are-valued/