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.

 

To subscribe to the I.I.I. Daily email daily@iii.org.

 

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

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

To subscribe to the I.I.I. Daily email daily@iii.org.

 

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.

To subscribe to the I.I.I. Daily email daily@iii.org.

 

Lloyd’s City Risk Index: $546 billion at risk from 22 threats

As the world’s population becomes increasingly concentrated in cities, they become more vulnerable to risk events. To understand the risk, Lloyd’s compiled a City Risk Index, detailing the threat landscape for the world’s leading 279 cities.

The index estimates how much economic output (GDP@Risk) a city could potentially lose due to 22 different threats ranging from stock market crash to solar storm.

Here are some highlights from the report:

  • Across all 279 cities, $546.50 billion is at risk from all 22 threats.
  • Man-made threats account for 59 percent of the total GDP@Risk – with market crash the largest single threat, with cities exposed to losses of $103.33 billion on an annual basis.
  • The 10 cities with the highest exposure have a combined $126.82 billion of GDP@Risk, almost a quarter of the global total, with Tokyo standing to lose more than any other city.
  • Climate-related risks account for $122.98 billion of GDP under threat, and this sum will grow as extreme weather events grow in frequency and severity.
  • If cities were to improve their resilience, global GDP exposure to loss would drop by $73.4 billion.

AN OPEN LETTER TO COLLEGE GRADUATES From I.I.I. CEO, Sean Kevelighan

By Sean M. Kevelighan,
CEO, Insurance Information Institute

Dear College Graduate:

Do you know exactly where you want to work after graduation? If your answer is no, then you’re in good company.

A lot of people I’ve encountered during my time in the insurance industry share a common story: Looking back at their college years, they’re still a bit surprised to be working in insurance. However, now that they’re here, they cannot imagine being in any other field. And this is the essential truth about insurance careers: That you can make the most of your knowledge, talent, passions and ambitions, no matter what you’ve studied or where you want to go. So here’s your chance not to be “surprised” by the amazing range of careers in insurance. Instead, we urge you now to take control of what could be the opportunity of a lifetime.

Making a real difference in the world—every day

Insurance has a long heritage as the bedrock on which progress is built that dates back to the Age of Exploration. Today, the insurance industry is growing and evolving. We’re looking to recruit and hire the people who will power the future by embracing and innovating the breakthroughs that will help us fulfill our primary mission: to make communities safer, more resilient, and more productive—and to rebuild lives, households, and businesses after a loss.

Presently, the insurance industry employs more than 2.8 million people—art historians and actuaries; data scientists and drone pilots; marketers and M & A specialists; underwriters and overachievers of every stripe—all of whom enjoy careers that offer opportunities to earn and grow, and serve. Insurers invest in their workers by building corporate cultures that embrace diversity and inclusion, offer outstanding work/life balance, and serve their communities through organizations such as the Insurance Industry Charitable Foundation.

Take the first step—you’ll be glad you did

As you embark on a path that will take you through life, I encourage you to investigate the limitless opportunities that insurance careers offer. To give you a sense of what you will find in the insurance industry, here are some facts and figures, as well as five stories of students and young professionals who are making their education and experience count: https://www.iii.org/article/careers-in-insurance.

On behalf of everyone at the Insurance Information Institute, we offer our congratulations on earning your degree and wish you the best of luck as you meet the next great challenges in life.

Sean Kevelighan, Chief Executive Officer

The Insurance Information Institute | www.III.org

 

 

 

 

CoreLogic: 6.9 million homes worth over $1 trillion at risk for storm surge in 2018

Weather experts, including I.I.I. non-resident scholar, Dr. Phil Klotzbach, are predicting a slightly below average hurricane season for 2018, but that does not mean that the dangers of potential storm damage are negligible.

CoreLogic, an analytics company, released its annual Storm Surge report on June 5. The report found that along the Gulf and Atlantic Coasts, about 6.9 million coastal homes worth over $1 trillion are at risk. CoreLogic estimates reconstruction costs for 2018 increased 6.6 percent from a year ago, mirroring increased regional construction, equipment, and labor costs.

The Atlantic Coast has more than 3.9 million homes at risk of storm surge with reconstruction cost value of more than $1 trillion, up by about $30 billion from 2017. Gulf Coast homes with the same risk total more than 3 million, with more than $609 billion in potential exposure to total destruction damage, a $16 billion increase compared to 2017.

The reconstruction cost value is calculated based on 100 percent destruction of the residential structure, using the combined cost of construction materials, equipment and labor costs.