Auto insurance sector must be ready for personal lines slump says Aon
The auto insurance sector needs to act quickly to be ready for the changes brought by driverless cars according to analytics chief of an international insurance brokerage.
Aon’s Paul Mang said Sunday that autonomous vehicles will “move the business mix to fleet products and commercial lines.” He said the industry must ensure it has the right products available as the demand changes.
The broker’s figures show that personal lines auto insurance accounts for almost half of global premiums in the sector and that in the US alone there could be a 20 per cent drop in premiums from 2015 to 2035.
Louisiana flood risk increased 40 per cent by climate change
The risk of the torrential rain which caused the devastating flooding in Louisiana was raised by at least 40 per cent by the effects of human-caused climate warming.
That was the conclusion of a rapid assessment carried out by a National Oceanic and Atmospheric Administration and scientists from the World Weather Attribution.
“We found human-caused, heat-trapping greenhouse gases can play a measurable role in events such as the August rains that resulted in such devastating floods, affecting so many people,” said Karin van der Wiel, a research associate at NOAA’s Geophysical Fluid Dynamics Laboratory and the lead author.
The report stresses that the 40 per cent increase in the risk is a minimum and that it is most likely that the effects of climate change almost doubled the risk for the region.
Blockchain could save reinsurers up to $10 billion
The global reinsurance industry could develop the largest blockchain applications outside the payments sector and save an estimated $5-10 billion in costs.
A report by PwC concludes that the technology would allow speedier claims verification, facilitate the removal of task duplication, support entry into new markets and enhance transparency.
“Blockchain technology is still a new and uncertain area for reinsurers but those who are able to quickly build, assess and refine their applications will differentiate themselves,” commented PwC’s global insurance leader Stephen O’Hearn. “At a time when companies are searching for cost savings, the potential of blockchain to vastly improve efficiency and accuracy cannot be ignored.”
The savings that can be made are estimated in the range of 15-20 per cent of expenses in the industry.