From the I.I.I. Daily: Our most popular content, June 25 to June 28

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How safe is your bike helmet? Virginia Tech and IIHS debut new safety rating system

With more people choosing to bike to work and for recreation, accidents and injuries are also on the rise.

Having the right bike helmet can significantly cut the risk of injury, but up until now there was not a standardized rating that consumers could use to determine the effectiveness of a bike helmet.  A new ratings program, based on research by Virginia Tech and the Insurance Institute for Highway Safety (IIHS), changes that.

The program used more rigorous tests than required by the Consumer Product Safety Commission (CPSC), for example, taking into account the angle at which a bicyclist’s head is likely to strike the pavement in a crash.

The number of stars assigned to each helmet represents how effectively that model reduces overall injury risk. Only four of the 30 helmets tested in the initial round earned a 5-star rating. All four are equipped with a Multi-Directional Impact Protection System (MIPS). MIPS creates a low-friction layer inside the helmet which helps to reduce rotational forces that can result from certain impacts.

With better ways to gauge helmet safety, there still remains the problem of getting people to wear them. By some estimates only 18 percent of riders regularly wear helmets.

 

The I.I.I. has facts & statistics on bicycle crashes here.

 

The Week in a Minute, 6/28/18

The III’s Michael Barry briefs our membership every Wednesday on key insurance related stories. Here are the top stories this week: 

  • Northern California’s Pawnee Fire began on Saturday, June 23, and is threatening hundreds of homes in Spring Valley (Lake County). Meanwhile, the Creek Fire started on Sunday, June 24, and prompted evacuations near Happy Valley and Igo (Shasta County).
  • Florida’s Limerock Fire either destroyed or damaged dozens of homes in Eastpoint (Franklin County), with at least 175 residents displaced due to the Sunday, June 24, blaze.
  • Americans are reaching retirement age in worse financial shape than the prior generation for the first time since the Truman administration, a front page Wall Street Journal Weekend Edition story (June 23-24) stated.

 

From the I.I.I. Daily: Our most popular content, June 15 to June 21

Here are the 5 most clicked on articles from the I.I.I. Daily newsletter.

 

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Business identity theft: An emerging threat

Individuals are not the only ones at risk of identity theft. Increasingly, businesses are contending with criminal use of their identity for tax fraud, credit card and other financial fraud, as well as having their websites and business name trademarks held for ransom.

A recently released report by the National Cybersecurity Society states that criminals are combining stolen data from data breaches with business intelligence to create large tax returns; wire transfers and ransoms which are fueling an underground economy of organized crime.

The IRS reported 4,000 instances of business identity theft cases in 2016. In 2017 that figure soared to 10,000, the largest year-over-year increase on record. Damages were estimated at $268 million in 2016, but curiously declined to $137 million in 2017.

The Insurance Information Institute has facts and statistics on identity theft here.

 

Sports-related injuries

Summer is here, and it’s time for both kids and adults to be more active. Unfortunately sports related injuries can also increase during the summer months. Our interactive chart shows that playing basketball led to the most hospital treated injuries, followed by biking and football, according to the latest available data from the National Safety Council (NSC).

Concern is growing about the risks of sports-related concussions as lawsuits filed by injured professional football players have generated national headlines. The problem also affects thousands of young people who engage in a variety of sports.

Among the sports shown in the chart below, ice hockey injuries had the highest percentage of concussion as the primary diagnosis, at 12% of all hospital emergency department-treated injuries. Snowboarding and water tubing followed, with 10% and 9% of injuries reported as concussion-related.

There were 191,396 swimming injuries treated in emergency rooms, with children between the ages of five and 14 suffering the most injuries.

Big nasty claims in the casualty sector

On June 12, Advisen held a webinar entitled “Big nasty claims. What are the large loss trends in the casualty sector?” To qualify as big and nasty, the casualty claims stem from injury and/or property damage resulting from incidents such as train derailments, chemical spills and food contamination, frequently involving multiple parties, and costing $100 million or more each.

Advisen’s large loss dataset yielded some interesting insights into trends in this area, and Jim Blinn, Advisen’s moderator, was joined by two Allied World claims experts, James Minniti and Paul DeGiulio.

Advisen’s dataset reveals that pharmaceutical and medicine manufacturing, transportation equipment manufacturing, and machinery and electronics manufacturing are the top three industries involved in large claims, with public administration in fourth place.

Railroad accidents and derailments, a frequent source of large claims, are attractive to the plaintiffs’ bar because the technology is often available to have prevented the accident, but has not been implemented, said the panel.

Concussion litigation, another source of big claims, contains many coverage issues and coverage litigation is happening concurrently with trials. The National College Athletic Association has its first concussion trial this week, and a lot of people will be watching as the organization is expected to be a target for more lawsuits. Concussion injury defendants also include colleges and high schools.

When it comes to predicting which lawsuits may results in large claims, James Minniti said that looking at the plaintiffs’ lawyer’s name is a good bet, “you can be reasonably sure it’s going to be a bad case” if a certain top-notch plaintiffs’ attorney or firm is involved. Paul DeGiulio added that the venue is also important, for lawsuits tried in Philadelphia or Los Angeles the cost could be much higher.

 

 

 

 

From the I.I.I. Daily: Our most popular content, June 8 to June 14

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Insurance plays critical role in World Cup

Soccer fans are eagerly anticipating the 2018 World Cup to commence in Russia on June 14.  The monthlong competition presents significant risks ranging from kidnapping, to cyberattack, to event cancellation, and without insurance it’s unlikely an event such as this could take place.

The London insurer Beazley, estimates that construction related risks are insured for $2.5 billion, event cancellation, including loss of TV rights and sponsorship, for $1.6 billion and terrorism and acts of violence for $1.3 billion. Star players are insured for injury for up to $200 million each.

“Without insurance there would be no World Cup, no Olympics or little organized competitive sport”,

said Michael Furtschegger, head of entertainment international at insurer Allianz Global Corporate & Specialty.

From the I.I.I. Daily: Our most popular content, June 1 to June 7

 

Here are the 5 most clicked on articles from the I.I.I. Daily newsletter.

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