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Behind the Wheel: Navigating Hard Market Challenges in the Personal Auto Insurance Industry 0

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Behind the Wheel: Navigating Hard Market Challenges in the Personal Auto Insurance Industry

Erik Bahnsen, Industry Analyst, CCC — It’s no secret that we’re in the midst of a uniquely challenging time for personal auto insurers due to a convergence of factors including risky driving and significant increases in the cost of auto repair/replacement, labor, and medical bills. The industry has reacted to those challenges with unusually steep premium increases. In the last year alone, the average auto premium cost increased by 17%. With the latest projections predicting profitability challenges to persist until at least 2025, it’s reasonable to expect this current hard market to continue through at least the same time period. Some downstream impacts have already been articulated, including increased policy shopping and lower customer satisfaction scores. Others are starting to creep in under the radar, yet all have the potential to compound current challenges to insurers, as well as create opportunities. It’s the less immediately obvious downstream impacts that are the focus of this feature, both for purposes of raising awareness and preparing insurers to take proactive measures. Confucius once said, “Plan ahead or find trouble on the doorstep.” Let’s start with the impact on drivers most vulnerable to the financial strain of sustained premium increases: Faced with inflation on...

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Six Defendants to Stand Trial for Michigan Auto Insurance Fraud Scheme

Article 0 Comments Six defendants will stand trial on charges alleging the group operated an auto insurance fraud scheme targeting Michigan residents involved in automobile collisions, Michigan Attorney General Dana Nessel and Anita Fox, Director of the Michigan Department of Insurance and Financial Services announced last week. It is alleged that, beginning in 2013, Michael Angelo, of New Jersey, ran a lawyer hotline, 1-800-USLawyer, and funneled auto accident callers into an elaborate insurance fraud scheme, directing the callers to one or several of the many medical enterprises owned or controlled by Angelo. The referred caller allegedly would be directed through a predetermined protocol of office visits, device and injection treatments, medication prescriptions, and drug screenings, physical therapy sessions and diagnostic imaging all performed within Angelo’s network of enterprises or those operated by coconspirators. It is alleged that each business then billed the no-fault auto insurance carriers (or the Michigan Assigned Claims Plan for the uninsured patients) for the respective treatments. Angelo, 61, faces one count of conducting a criminal enterprise, a 20-year felony, as well as three counts of insurance fraud. Mohammed Ali Abraham, 70, of Dearborn Heights; Michael Angelo, 61, of Springfield, N.J.; Hassan Fayad, 37, of Dearborn; Robert...

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How Advisors Can Make a Difference for Aging Clients

Additionally, it is an advisor’s responsibility to immediately connect with a client’s spouse or designated “trusted contact” upon observing signs of declining mental capacity. While they might already be aware, family members often fail to fully comprehend the seriousness of the situation due to how close they are to the individual.  Signs to watch for include repetitive questioning, hesitation in decision-making, trouble articulating thoughts and unusual impulsiveness. This should signal the spouse or designated “trusted contact” to begin gathering passwords and essential documents to prevent potential loss or tampering. Addressing Family Dynamics Navigating animosity among family members following the passing of a loved one can pose challenges for advisors, but the most important thing to remember is the fiduciary duty to each client. Even in the event of clients’ passing, ensuring the respectful execution of their wishes remains the advisor’s responsibility. Maintaining transparent communication with all family members involved serves to dispel any uncertainty regarding a client’s intentions.  Additionally, having likely developed a longstanding relationship with the family and personally remembering when they were a cohesive unit, advisors can urge them to prioritize mutual respect, communication and collaboration. This is essential not only in the immediate aftermath but also for...

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Advisor Accuses LPL of ‘Raiding’ His Firm in Retaliation

What You Need to Know The lawsuit claims that the financial services company induced three advisors to take clients upon departing. Assets under management went to $0 overnight when the advisors left, the complaint contends. A Kentucky wealth manager has accused LPL Financial of running a “classic corporate raid” against his firm, which had been an LPL affiliate for years, to retaliate when he sought to find a new broker-dealer and the relationship soured. In a case recently moved from state to federal court in Kentucky, Lamkin Wealth Management and Louisville Wealth Management (referred to together as LWM) seek redress for what they call LPL’s “improper, illegal and unjustified actions” against the firm. “Simply put, LPL orchestrated, assisted and executed a classic corporate raid against LWM, its own affiliate, by the actions of three of LWM’s employees, who were at the time also affiliated with LPL,” the suit contends. LWM had over $451 million in client assets under management on Dec. 5, 2018, when three LWM financial advisors left without notice and took client files with them, according to the suit, and was left with zero AUM the next day. LPL induced the three to leave “en masse, in the middle of...

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Goldman’s CEO Says He’s Optimistic About 2024 as Markets Rebound

“We took swift, decisive action to refocus the firm’s strategy while at the same time strengthening our core businesses, and I’m proud of the progress we made,” Solomon said. “We put the firm in a stronger position for 2024 and beyond.” He reiterated comments about the U.S. economy proving more resilient than expected, though he said inflation is likely to be stickier than markets anticipate. Solomon said that CEOs tell him that economic conditions for the consumers at lower-income levels are getting tougher, leading to changes in spending patterns. “But the Fed now has room to ease if economic conditions start to decline,” he said. Goldman has raised more than $250 billion in alternatives since 2019, surpassing a $225 billion target a year early, he said. (Credit: Bloomberg) Copyright 2024 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Landslide Destroys Los Angeles Home, Threatening at Least 2 Others

Article 0 Comments A landslide reduced a Los Angeles house under renovation to a jumble of lumber, pulled the pool and deck away from a second home, and left the pool at a third residence on the edge of a huge fissure. The slide occurred just before 3 a.m. in Sherman Oaks, a neighborhood of expensive homes about 12 miles northwest of downtown. An initial search found no victims, but several people were evacuated from one house, the Los Angeles Fire Department said in a statement. There was no immediate word on the cause of the landslide, but numerous slides have happened in Southern California due to drenching winter storms that saturated the ground. Since Jan. 1, downtown LA has had almost 16 inches of rain, which is nearly twice what it normally gets by this time of year. By early February, the city had reported nearly 600 mudslides, had re-tagged 16 buildings as unsafe to enter and had yellow-tagged more than 30 others, limiting access to them. News helicopter video revealed the extent of the slide. The destroyed house, which appeared to be in the midst of a renovation, was crushed with most of its roof lying on the...

VIU By HUB Partners With Mile Auto To Fuel Growth Of Innovative Insurance Solution For Low-Mileage Drivers 0

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VIU By HUB Partners With Mile Auto To Fuel Growth Of Innovative Insurance Solution For Low-Mileage Drivers

Partnership brings pay-per-mile auto insurance options to the VIU platform, scaling the growth of insurtech Mile Auto Chicago, IL (Mar. 12, 2024) – VIU by HUB (VIU), an omnichannel insurance brokerage platform, is pleased to announce a partnership with Mile Auto, a pay-per-mile auto insurance company. The partnership brings an innovative solution to VIU enabling customers to access affordable car insurance based on how much they drive. The partnership also enables Mile Auto to leverage VIU as a digital omnichannel platform to improve customer acquisition costs and grow its customer base. “VIU continues to deliver on its promise to provide differentiated, personalized and innovative solutions to our customers and partners while Mile Auto gains the opportunity to improve its customer experience and scale its business,” said Bryan Davis, EVP and Head of VIU. “This partnership is a win-win for all parties involved.” Mile Auto uses computer vision and decision analytics to support pay-per-mile auto insurance options. With this coverage, drivers only pay for the miles they drive plus a low monthly base rate. Precision-driven premiums can lead to financial savings for those who drive less than 10,000 miles a year, such as college students, retirees or remote workers. “As insurance...

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People Moves: Moscowitz New COO at RT Specialty; Williams to Lead Nationwide’s Small Market Commercial Lines

Article 0 Comments Moscowitz New COO at RT Specialty RT Specialty promoted Marissa Moscowitz to chief operating officer. Moscowitz has over 15 years of information technology, business intelligence and business operations experience and has been with RT Specialty since 2019. With Chicago’s RT Specialty, Moscowitz has been instrumental in acquisition integration as well as strategic planning and execution. In her new role, she will drive RT Specialty’s commitment to automation, process improvement and operational excellence. Additionally, she is absorbing the business training teams and RT Connector (RT’s proprietary digital E&S marketplace) support teams. Williams to Lead Nationwide’s Small Market Commercial Nationwide, headquartered in Columbus, Ohio, has appointed George Williams to lead its small market commercial lines business. Williams previously served as the company’s chief operating officer for commercial lines, excess & surplus and specialty, bringing more than two decades of industry experience to the role. Williams joined Nationwide in December 2021 after serving as head of global client support services for Guy Carpenter. His background includes serving as COO of AIG’s North American general insurance division, global small and middle market enterprises product leader for the U.S., U.K., Southeast Asia and Germany, and general manager of AIG’s Germany, Austria and...

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Lockton Partners With Food Science Specialist to Mitigate Risk in Food & Drink Sector

Article 0 Comments Insurance broker Lockton announced a collaboration initiative with the food science company Campden BRI, a leading food science company, to support the food and drink industry and provide key risk mitigation and management support in the face of an evolving risk landscape. In recent years, the food and drink industry has faced a myriad of threats from supply chain disruption and spiraling costs to the impact of inflation, scarcity of crucial resources, labor shortages, and changes in both regulations and consumer demands, said Lockton. Expert insight and risk management solutions are imperative in helping food and drink businesses meet these challenges, build resilience, and continue to trade successfully. Lockton said it will become a member of Campden BRI and will also collaborate on various key topics and research initiatives. The first of those initiatives is a new position paper that seeks to address the growing global problem of food fraud, which is exacerbated by the recent supply chain frictions and raw ingredient shortages. The alignment of Campden BRI’s world-renowned expertise in food science and safety, with Lockton’s in-depth understanding of the current and emerging risks that businesses face, will see the pair share insights and build solutions...

Ives Insurance Brokers Ltd. Acquires All-Risks Insurance Brokers Ltd. Essex Branch 0

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Ives Insurance Brokers Ltd. Acquires All-Risks Insurance Brokers Ltd. Essex Branch

Acquisition by Ives Insurance, a Navacord-owned brokerage, marks Navacord’s third deal of 2024 Essex, ON (Mar. 4, 2024) – Ives Insurance Brokers Ltd., a leading insurance provider, is pleased to announce the acquisition of the Essex branch of All-Risks Insurance Brokers Ltd., effective March 1st, 2024. This strategic move underscores Ives Insurance’s commitment to expanding its footprint and reinforcing its presence in southwestern Ontario. For clients previously serviced out of the Essex All-Risks office, located at 38 Talbot St N, uninterrupted coverage will continue through Ives Insurance offices in Essex, Amherstburg, Lakeshore, LaSalle, Leamington, Tilbury and Waterloo. “After careful consideration, we are excited to welcome former All-Risks clients into the Ives Insurance family,” said Jeff Ives, President of Ives Insurance Brokers Ltd. “This acquisition allows us to solidify our position in southwestern Ontario and provide our renowned services to a broader client base.” Josh Lazarus, former Managing Partner of the AllRisks Essex office, expressed that his team was looking forward to joining forces with Ives Insurance. “I’m thrilled to see my team join forces with Ives Insurance! As managing partner of Essex All-Risks, I’m excited to bring our expertise and client-centric approach to the exceptional team at Ives. Together, we’ll...