Latest Studies September 2014

1. UNINSURED MOTORISTS, 2014 EDITION
Insurance Research Council; Page N/A
August 1, 2014

The percentage of uninsured motorists declined nationally from 13.8 percent in 2009 to 12.6 percent in 2012, according to Insurance Research Council (IRC) estimates reported in its 2014 study. The IRC measures the number of uninsured motorists based on insurance claims, using a ratio of insurance claims made by people who were injured by uninsured drivers relative to the claims made by people who were injured by insured drivers. The IRC said that California had the highest number of uninsured drivers (4.1 million), followed by Florida and Texas (3.2 million and 1.6 million, respectively.) The study also estimated total uninsured motorist claim payments. Discounting fatalities and total permanent disability claims, the IRC estimates that $2.6 billion was paid in the U.S. on 2012 uninsured motorists claims. Despite the declining trend in uninsured rates over the last decade, the aforementioned total claim payment amount is up 75 percent over the last 10 years and translated to $14 per insured individual in 2012. For information about obtaining a copy of the study, visit the IRC's website at www.Insurance Research.org.


2. PANAMA CANAL 100: SHIPPING SAFETY AND FUTURE RISKS
Allianz Global Corporate & Specialty; 19 Pages
August 1, 2014

Since opening in 1914 the Panama Canal has significantly influenced ship development and trade routes. This risk bulletin takes the occasion of the 100th anniversary of the canal to consider the effect of plans to construct a new lane for larger vessels on the maritime industry and the risks involved in the expansion, along with a history of the canal’s safety record. Approximately 3 percent of the world’s $9 trillion maritime commerce passes through the canal every year, and safe passage is critical. In 2013 only three shipping casualties, but no total losses, were reported in the canal, compared with only one the previous year. The number of casualties last year corresponds with the 10 year average. The safety record has improved significantly over the past decade. A greater volume of traffic and larger ships could increase the insured cargo values by more than $1 billion a day, resulting in higher accumulation risk along the canal as well as in the ports from which the transporters sail. The bulletin discusses the new risks that will result from the expansion and the training that will be crucial to risk mitigation. A graph shows all casualties, including total losses, for 1993 through 2013. Full Report


3. PROPERTY HAIL CLAIMS IN THE UNITED STATES: 2000–2013
Verisk Insurance Solutions; 16 Pages
August 1, 2014

This report provides a detailed look at U.S. insurer hail claims experience over the past 14 years. According to data from Verisk’s A-PLUSTM property database, U.S. insurers paid almost 9 million claims for hail losses, totaling more than $54 billion from 2000 through 2013. Most of those losses came in recent years. In fact, almost 70 percent occurred during the past six years. But the trend is not just a function of the higher number of claims. The average claim severity during the past six years was 65 percent higher than it was from 2000 through 2007. Hail is a highly localized peril, so every insurer will have a different loss experience.  To help insurers benchmark their hail claims experience relative to the industry, Verisk analyzed hail claims using a number of parameters to develop this report, including:  the top states for hail losses; changes in the hail loss experience over time; and examples of volatility in both the frequency and severity of hail. Texas, Minnesota and Oklahoma ranked as the top three states for average hail losses 2000 to 2013. Full Report


4. INSURANCE LABOR MARKET STUDY
The Jacobson Group and Ward Group; Page N/A
August 1, 2014

According to the latest U.S. Insurance Labor Outlook Study conducted by The Jacobson Group and Ward Group, 58 percent of companies polled intend to increase staff in 2014. This is the second highest rate since the survey began in 2009. The study found that organizations are experiencing difficulty recruiting for most positions. Additional key findings include: nearly 85 percent of organizations expect an increase in revenue throughout the upcoming year, the third highest level since the beginning of the survey; technology, underwriting and claims positions continue to be the most in demand and are expected to grow the greatest during the next 12 months; technology, actuarial and analytics positions continue to be the most difficult to fill; if the industry follows through on its plans, it will see a 1.01 percent increase in industry employment through the final half of 2014, creating new jobs. Report Summary

 


5. TEEN CRASHES FALL SINCE THE ADVENT OF GRADUATED LICENSING
Insurance Institute for Highway Safety. Highway Loss Data Institute
Status Report; Page 6
August 29, 2014

 

A new study from Insurance Institute for Highway Safety (IIHS) shows that crash rates have been declining among teen drivers in the U.S., in terms of both miles driven and per capita, since graduated driver licensing (GDL) was introduced in the mid 1990s. Another study recently published in Injury Prevention found a close correlation between GDL and the number of miles driven by teenagers as well as the chances of their crashing. The latest studies confirm earlier reports that the changes in licensing policies over the last two decades have been effective. Anne McCartt, IIHS senior vice president for research and lead author of its recent study, said that since 1996, when Florida became the first state to enact a GDL, the per capita crash rate of teen drivers has fallen steeply and steadily, with the largest decline among 16 year olds. The recent study uses a variety of federal data to conclude that the per capita rates of fatalities and crashes among teens reported by the police declined steadily from 1996 to 2012. Full Report


6. GENDER DIFFERENCES OF YOUNG DRIVERS ON INJURY SEVERITY OUTCOME OF HIGHWAY CRASHES
Niranga Amarasinghaa, Sunanda Dissanayakeb
Journal of Safety Research; Page N/A
June 1, 2014

This study by two Kansas State University professors examines the gender differences and similarities of young drivers involved in motor vehicle crashes in Kansas over five years. The study found that young female drivers are more likely than male drivers to have a crash at an intersection or hit a pedestrian. Male drivers are more likely to have an off-road or night time accident. The study is available for purchase.