February 16, 2021.

(Washington, DC, Economic & Insurance News by Insurance Market 360) – Centre for Insurance Policy Research (CIPR) in association with Risk Management Solutions (RMS) and Institute for building and home safety (IBHS) investigated and submitted a technical report on the economic advantages of wildfire resilience strategies in nine communities of California, Colorado and Oregon.

Research was done considering North America wildfire model taking into account various factors like: geographical conditions, distance of plant life, slope and ceiling, suppressions, roof events and acceptability conditions.

The paper could trace out certain interesting observations like, traditional information and data will not suffice to get clarity on risk minimizing concept. Rather, the emphasis should be on practical approaches and disaster management strategies to address the issue in a realistic and accessibility manner. It is also felt that; wildfire can be effectively managed by taking necessary mitigations and interventions. Lion share of about 78% reduction can happen if certain modifications can be done in the construction design and vegetation; well built constructions can withhold risk by 5 times than to that of flammable prototypes and sensitive to various calamities which results in major loss and damage to the property and people.

IBHS and National Institute of Standards and Technology, NIST with their vast experience and specialization in the wildfire suggest that, Insurance companies need to focus on reduction of risk factors rather than termination strategies.

Source: National Association of Insurance Commissioners, NAIC

Reference:https://content.naic.org/article/news_release_new_white_paper_cipr_reveals_key_actions_reduce_wildfire_risk.htm

February 11, 2021

(Sacramento, Calif., Economic & Insurance News by Insurance Market 360) – Eleven states Insurance commoners’, including Ricardo Lara, California Insurance commissioner, submitted a proposal to support the incoming administration headed by the president elect Joe Biden for comprehensive health coverage to all the residents.

The major objectives of the representation are to cater the immediate needs due to Covid_19 and narcotics, empower states to take initiations to strengthen health insurance market, minimize discrimination hurdles with regard to health services to people, coverage of pre existing diseases and a 360 degree health coverage to all the citizens.

The draft shared to the administration broadly consists of two recommendations: six immediate action points and 6 long term views. The concerns of the immediate attention are: prompt action is required with respect to special drive for easy access, relief from ACA (Affordable Care Act), clarity on Covid-19 tests finances, concerns on Notice of Benefit and Payment Parameters (NBPP), flexibility to state to take appropriate initiations related to ACA and reinsurance.

Whereas, long term objectives consists of : plan for access of Health insurance access by all, enrolment to ACA, consumers to choose better health care services, exemption of tax to legal non citizens, revision of labour laws for the benefit of retired people health care and nationwide reinsurance program for the larger benefit of all households.

Commissioners of California, Colorado, Delaware, Hawaii, Michigan, Minnesota, Oregon, Pennsylvania, Rhode Island, Washington and Wisconsin were part of the documented pledge.

Source: Department of Insurance, California

Reference: http://www.insurance.ca.gov/0400-news/0100-press-releases/2020/release138-2020.cfm

February 09, 2021

(LANSING, Mich., Economic & Insurance News by Insurance Market 360) – Department of Insurance and Financial services, DIFS, Michigan facilitated customers to receive $16.2 Million in the fiscal year with reference to various complaints raised by the citizens of Michigan.

Out of the total settlement of $16.2M, $9 Million was retrieved from unsettled claims, fee waivers and refunds from service providers in insurance and financial services; remaining $7.2 Million was recovered from unclaimed life insurance and pension concerns.

DIFS, aim, is to safeguard the rights of consumers’ in addition to monitoring the economic growth and sustainability in insurance and financial line. In this regard, department, suggests the public to settle their issues on their own to the possible extent. They can approach the department for any complications and unsettled issues. Officials based on the intensity of the complaint and evidences, can penalize and cancel the licence of the insurance and financial companies.

DIFS has been providing awareness on consumer rights in addition to free services under the title LIAS to address need based support of their privileges and compliances. Insurance and Financial service purchasers can get in touch with the appellate authority on toll free number, 877-999-6442, from Monday to Friday, 8am to 5 pm or drop an email to LIAS@michigan.gov or visit the portal Michigan.gov/DIFScomplaints.

Further details and information can also be obtained from the national association of consumers, eapps.naic.org/life-policy-locator.

Source: Department of Insurance and Financial Services, Michigan

Reference: https://www.uppermichiganssource.com/2020/12/17/michigan-department-of-insurance-and-financial-services-helps-consumers-recover-more-than-162m-in-2020-fiscal-year/

February 05, 2021

(Washington, DC, Economic & Insurance News by Insurance Market 360) – Data of November 2020 released by the US Census Bureau and department of Housing and urban development exhibits the decline in newly completed house constructions than building permissions and house starting in comparison with the values in October 2020.

Calculation is done by adopting technique of sample survey put through for sampling mutability, non sampling inaccuracy consisting of bias and response from the participants, non participants, un-reported and under coverage.

With respect to building permissions, total permitted are 1,639,000.There is an increase of 6.2% than the last month, 8.5% hike than October last year. Single family permits improved by 1.3% than Oct 2020.Number of five or more building permissions in November 2020 , 441,000.

The number of house permits in November 2020 was 1,547,000.Private owned starts in the month was 1.2% more than October 2020 and 12.8% high than the same time last year. Single family count is improved by 0.4% than the last month. Count related to five or more building permits was 352,000 in November 2020.

Statistics reveal that 1,163,000 houses were completed in November 2020.Private owned completed were 12% less than the last month and 4.8% less when compared to the value of Nov 2019.Single family constructions dipped by 0.6% to last month and five or more building constructions value was 280,000 in November 2020.

Survey is conducted periodically to analyse and review the status in constructions sector. Quarterly data facilitates the trend, half year statistics reveal the stars value and six months numbers about the completed status.

Source: Government Construction Census

Reference: https://www.census.gov/construction/nrc/pdf/newresconst.pdf

February 04, 2021

(Oldwick, NJ, Economic & Insurance News by Insurance Market 360) – Commercial line industry is expected to face more trouble in 2021 than the previous year. Financial havoc, social inflation due to judicial operations in addition to Covid-19 can have a negative impact on the niche and Insurance sector in major.

Unfavourable weather is expected to continue in the New Year and majority of the hurdles related to internal and external operations including environment factors can have a great affect on the commercial sector as a whole.

A B Best in its latest report, “Market Segment Outlook: US Commercial lines” opined that in spite of many hurdles in 2020 business could withstand all odds. Agency stated that there are three basic troubleshoots to the sector namely primary, secondary and others.

Hike in the prices, strict rules and regulations, decrease of capacity and profits constitute primary. Wildlife, natural and manmade calamities comes under secondary. Factors like Covid-19s economic settlement, re-entry of non functioned companies during pandemic, effect of commercial causality with regard to nuclear judgements, higher officials insurance premiums, increasing loss costs can add on further burden including stringent protocols.

Capital position due to reasonable level of liquidity and ability to handle risk effectively is an advantage to the commercial sector. It is important for the companies to focus on high risk adjustable capital base, business risk management activities; minimum risk investment portfolios can help the companies to run their operations smoothly in 2021!

Source : A M Best Company

Reference : http://news.ambest.com/presscontent.aspx?refnum=30148&altsrc=9&_ga=2.5469875.1013927451.1607483379-868248373.1605033586

February 03, 2021

(Washington, D.C., Economic & Insurance News by Insurance Market 360) –  Surprisingly, 71%, of contractors have scarcity of minimum one construction material in addition to 89% impact on business due to shortage of skilled labour, project delay due to pandemic and worker’s health.

Wood is the most non available material for construction. Though the index of Q4 is 60 points, 3 above than Q3 the net value of the year 2020 is less than 74 points aggregate. Chamber of Commerce Commercial Construction Index is analysed with Dodge Data by using survey obtained with various dimensions on a scale, 0 to 100.

Backlog, New Business Confidence and Revenue are considered for investigation in Q4. All of them have a positive improvement with 1, 4 and 2 points, than Q3 Index.

“The pandemic has exacerbated issues contractors were already facing in availability and cost of materials from tariffs and a shortage of skilled workers,” said U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer Neil Bradley.

“The industry is a positive indicator of where the rest of the economy is going, but its likely confidence won’t fully return until companies and workers have the confidence to get back to work safely,” Bradley added. “That’s why the U.S. Chamber is urging lawmakers to come together before the end of the year on additional pandemic relief.”

Interestingly, 57% of builders are positive about growth in 2021 and many of them are planning to recruit more workers to accelerate the momentum.

Source: U S Chamber of Commerce

Reference: https://www.uschamber.com/press-release/less-availability-of-building-materials-emerges-significant-pandemic-challenge.

February 02, 2021.

(London, Economic & Insurance News by Insurance Market 360) – New Year marked a latest comprehensive initiation by Lloyds to gear up the economy. In its latest vision, the premium insurance company announced to bring in reforms in inclusive working culture, global transition, accountable underwriting and investment and new policies in fossil energy sector.

Need based steps will be taken to set up an advisory group for gender rights and ethnicity by 2021.Company will allot 5% of its funds for investments related to net zero and action plan is expected by 2022 for the takeoff, 2025.

Company is aiming to procure 2% of premium income from innovative and long term insurance sales in next two years with an idea to cater the needs of fossil fuels such as: thermal power, coal mines, oil sands and arctic energy which will be a good source, renewable energy.

Andrew Brooks, Chairman of the Lloyd’s Market Association said: “We are fully supportive of Lloyd’s ambitions to set out a path in which the market can work together to support our customers globally on their transition to a more sustainable future. As a market we must act decisively now and play a more effective and proactive role in supporting positive societal change.”

Initiations are taken on par with UNs sustainable development goals and the company is also expected to play a key role in addressing climate risk insurance and United Kingdom’s ten points plan.

Source: Lloyds Company

Reference: https://www.lloyds.com/news-and-risk-insight/press-releases/2020/12/lloyds-takes-action-to-accelerate-transition-to-sustainable-economy

January 29, 2021.

(Washington, D.C., Economic & Insurance News by Insurance Market 360) -Shortage of construction material and challenges to meet the demand declined the sales of new homes in November 2020 as per the latest report of US Department of Housing and Urban Development and Census Bureau. Single built home sales went down by 11% in November 2020 which is 20.8% more than same time last year. The projected and corrected value of 841,000 sales is the total completions in the next 12 months.

NAHB Chief Economist Robert Dietz expressed, “The home building industry saw a historic gap between the pace of new home sales and construction of for-sale single-family housing this fall,”

According to the latest reports, a reasonable increase of 4.1% observed in the construction materials log in the last four months’ with a target of 286,000 new houses for completion. It is 11.2% less than same period last year. But, the number of houses completed is only 43,000.The average new house sale price increased by $7,300 than the previous year. On the whole, rise is witnessed in all the four directions of the region in the new house sales: Northeast (28.2%), Midwest (24%), South (16.9%) and West (20.5%)

“Though the market remains strong, the pace of sales pulled back in November as inventory remains low and affordability concerns persist as builders grapple with a shortage of lots, labor and building materials,” said NAHB Chairman Chuck Fowke.

Source: National Association of Home Builders

Reference: http://nahbnow.com/2020/12/affordability-and-lack-of-supply-put-a-dent-in-new-home-sales/