IBA Weekly News: March 31
A quick look at the news affecting our industry.
Video transcript below:
This is Brian Anderson with Caitlin Bronson for Insurance Business America’s weekly roundup. In industry events happening this week, sessions that examine the application of predictive modeling techniques in rate making and project management across various insurance lines are being featured at the Casualty Actuarial Society rate making and product management Seminar at the Marriott Wardman Park Hotel in Washington. Eric Siegel, founder of Predictive Analytics World and author of Predictive Analytics, the power to predict who will click, buy, lie or die is delivering the Seminar’s keynote address to an audience of more than 600 actuaries, underwriters and other risk professionals. Doctor Siegel will reveal how predictive analytics work and ways in which it delivers value for the insurance industry.More than 50 concurrent sessions are also part of the three-day event which kicked off Sunday and continues through Tuesday, April 1st. The seminar is intended for insurance professionals at all levels.
For more information you can visit the CAS website at www.casact.com, the six thousand-member Casualty Actuarial Society is celebrating its 100th anniversary this year working to fulfil its mission to advance actuarial science to a singular focus on research and education for property/casualty actuarial practice.
Now over to my colleague, Caitlin Bronson.Thanks Brian. The landslide the death devastated much of the rural community of Oso, Washington last Saturday has taught insurance agents an important lesson, though one paid a tragic price. Of the more than 100 residents who lost their homes in the slide, it’s likely none will receive insurance payments to cover the damage.
That’s because homeowners policies typically exclude the costs through risks of landslides. Instead they're covered by the difference in conditions or DIC policy. DIC policies are offered by surplus lines carriers and could be tailored to cover landslides, floods, earthquakes and mud flow. Unfortunately DAC policies are rare. In Washington state just 4700 home and business owners have coverage. That means that less than one percent of all buildings in the state are covered for landslide damage.
Part of the reason for the lack of coverage could be the cost, a 300,000 dollar home would pay 1,000 annually for a DIC policy. However Northwest Insurance Council President, Karl Newman says the problem could also lie with uninformed insurance agent commenting, “many Agents are not aware that this policy exists or they don't take it seriously. We would encourage them in light of tragedy to take that extra step and really encourage a home or business owner to consider a Difference in Conditions coverage. Newman said it's far too early to estimate damage it from the Oso landslide but so far none of the homes seems to have been properly covered. Well that's it for this week’s instalment of Insurance Business TV. Thanks for watching and be sure to catch us next week with another round of industry news.