Insurers face higher costs as new law takes effect
Insurance companies may need to pass on additional costs incurred as a result of a newly implemented law in Oregon. The state legislature has enacted a law which changes Personal Injury Protection and Uninsured & Underinsured Motorist insurance to entitle policyholders to receive “up to the full amount of uninsured motorist coverage (and underinsured coverage) if they are injured by an at-fault, uninsured driver.” Oregon insurance professionals are likely to receive calls and emails from clients requesting that their policies are renewed or issued effective Jan 2. 2016 as protection only applies to policies dated on or after that date. NW Insurance Council president Kenton Brine told KTVZ.com that the new law could cost insurers as much as $85 million a year; costs which are likely to be reflected in premiums.
$4 billion losses from UK storms
Three storms which have lashed northern parts of the UK could result in economic losses as high as $4.4 billion. An assessment by PwC estimates the losses of storms Eva and Desmond at more than $3 billion but the country was hit again before Christmas by Storm Frank, which could push the total above $4 billion. Estimates for insured losses from the first two storms are in the range $1.3-$1.7 billion.
Mohammed Khan said that smaller businesses may have left themselves vulnerable in a bid to cut costs: “Unfortunately, many smaller and family run businesses will not have commercial insurance in place due to the impact of the recession and lower business volumes in recent years. Many of these businesses will have made the economic decision not to purchase insurance. For many of these businesses the impact of the recent storms and floods will mean they will have to protect themselves against the prospect of insolvency.”
NFP acquires Vanorsdale Insurance
New York based insurance broker NFP has announced another acquisition. Following its purchase of Arizona’s Absolute Advantage Insurance Services, NFP has now acquired Vanorsdale Insurance Services, Inc. The firm’s president Doug Galloway will assume the role of Director of NFP Property & Casualty reporting to Paul Saich, California Regional President at NFP Property & Casualty. The newly acquired operation will remain in San Diego under the direction of Saich and NFP Property & Casualty.