Climate change, cyberrisk and pandemics continue to be the top systemic risks for insurers and reinsurers, executives said during an Aon-hosted panel event. The coronavirus pandemic "taught us that preparedness is critical," and insurers and reinsurers should have "a seat at the table" in the development of governmental strategies for risk mitigation, said Sean McGovern of AXA XL.
California has experienced a 40% increase in comprehensive auto insurance claims compared with pre-pandemic levels, according to a Mercury Insurance report. Northern California has had nearly double the frequency of claims seen in Southern California, the report says, noting that National Insurance Crime Bureau data shows the state leading the US in car thefts, which have risen about 24% in California since 2019.
A National Council on Compensation Insurance proposal to decrease workers' compensation rates in Florida by 4.9% met with no opposition during a state Office of Insurance Regulation hearing. NCCI said it is seeking the rate reduction because a decline in workplace accidents has contributed to robust underwriting profits, and it is also seeking a special assessment on workers' comp policies to generate sufficient premium in case a catastrophic event leads to an influx of claims.
People ages 45 to 54 have used telemedicine services most in Texas during the pandemic, with most users being injured men, according to the Workers' Compensation Research and Evaluation Group at the Texas Department of Insurance. The report notes a sharp increase in claims that have received at least one telemedicine service during the pandemic.
The White House has issued a report that identifies climate change as a systemic threat and that lays out strategies that could affect investment disclosures, insurance policies and other aspects of the financial system. The country requires a road map for "measuring, disclosing, managing, and mitigating climate-related financial risk across the economy," according to the report.
La Nina seems to have formed in the equatorial Pacific, and it could last through February or later, according to the Climate Prediction Center. The phenomenon could lay the foundation for a cold winter in parts of the country and could exacerbate a drought in California, potentially worsening wildfire activity.
Officials at a 32-nation summit hosted by the White House pledged to take a series of steps to combat the rising tide of global ransomware while pointing to inconsistent cryptocurrency standards as an obstacle to their effort. The group issued a statement outlining measures like sharing more data, making networks more secure and attacking the financial underpinnings of hacker groups.
Suspicious-activity reports involving a total of $590 million in ransomware transactions were filed in the first half of the year, says the Treasury Department's Financial Crimes Enforcement Network. In 2020, the full-year total was $416 million, FinCEN says.