Risk Management Solutions, a world leader in catastrophic risk modeling, has released a new study regarding hurricanes that has sent ripples of concern throughout the insurance industry. Hurricane season is here and it is expected that several major hurricanes will form in the Atlantic Ocean on their way to Florida. The study suggests that if even one of these hurricanes makes landfall and forces its way to the interior of the state, the damage would be unprecedented. This has caused many insurers in Florida to speculate how the report could…
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Risk Management Services hurricane catastrophe model approved by Florida Commission
The residential property insurance marketplace in the state of Florida is expected to face an even greater amount of volatility after the modeling commission for the state approved the use of a new catastrophe model by Risk Management Services (RMS). The RMS U.S. Model Version 11.0 was approved by the Florida Commission on Hurricane Loss Projection Methodology, which allows insurance companies to use it for the calculation of the potential exposure to hurricane loss. That said, this model has not been without controversy, especially in terms of its changes to…
Read MoreHigher reinsurance rates predicted
Despite record losses in the first quarter of 2011 and a hurricane season predicted to be exceedingly active, the reinsurance industry is in good spirits. While several insurance companies are dreading hurricanes reaching land, reinsurers expect that one storm causing extensive losses could mark the turning point of the insurance pricing cycle toward their favor. This would mean that higher reinsurance rates, a fact that would go a long way in helping the industry recover from a disastrous first quarter. Henry Keeling, CEO of Guy Carpenter’s International operations, recently attended…
Read MoreAllstate Insurance growth outlook
Allstate is looking to improve its home and auto insurance units by 2013. Executives at the massive insurance company spoke with investors the other day regarding the matter, saying that focusing on these units will help them recover from losses earlier this year. Allstate’s auto insurance unit has been hemorrhaging clients for three consecutive years, a trend that executives expect to continue throughout 2011, only to see modest growth again in 2013. The renewed focus on these units comes after Allstate’s CEO, Tom Wilson, reported “inadequate returns.” As far as…
Read MoreCargo theft is are out of control and costing companies millions
The National Insurance Crime Bureau (NICB) released its latest report on cargo theft for last year. They show more than 740 cargo thefts across the U.S. valued at more than 171 million dollars. Topping the chart for the states with the highest amount of thefts is California. Any time that merchandise is in transport from the shipper to its destination; regardless of transport method, it is considered as cargo. Most thefts occur mainly from truck or railcar mediums but thefts from air freight and goods in between transport modes are…
Read MoreReal time technology gives insurance agents a leg up
A new study shows that the number of independent insurance agents using real-time upload is going up. The study, IVANS’ 2011 Insurance Agents, Carriers & Technology Survey, shows that the number of agents using real-time upload from 2001 to 2009 has gone up by 16%. Furthermore, the study shows that technology plays a big role in trust levels agents have with their carriers. The findings suggest that more insurance companies are investing in agents to better connect with consumers. Agents use real-time uploads to keep consumers up to date on…
Read MoreGovernment looking for buyers
Several major businesses floundered in the wake of the global economic recession. Unable to recover in the early days of the economic downturn, many of these companies were allowed to fail. In the U.S., some of these companies received federal aid in the form of massive cash injections. The American International Group, an American insurance corporation, was one such company. AIG, however, mishandled the funds in one way or another, leading the government to seize the company. Now, The U.S. Treasury Department is selling shares of the company in the…
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