As Earth Day approaches, the world is reminded of our common environmental, social and governing interests and the need to invest in a sustainable future for ourselves and future generations. For the insurance industry, these are everyday realities.
In this month’s Insurance News Analysis, Abbey Compton and I discuss how insurance companies continue to cultivate sustainability in a changing risk landscape. An innovative example is the Lemonade Foundation’s new smart contract solution. It is intended to scale insurances that help subsistence farmers, who are often uninsured, reduce risks associated with climate change such as windstorms, freezes or floods.
Globally, 75% of the flood risk remains uninsured even when flood losses increase. The extension of FEMA̵7;s new model for national flood insurance programs may be the catalyst for delayed talks between agents on property underinsurance.
The Casualty Actuarial Society seeks to address historical racial differences in the industry. They are looking at alternative data sources for insurers that would help overcome unintentional racial prejudice. Abbey and I discuss the enormous value of such data and its relation to AI decisions.
We also talk about why claims for working conditions have been below pre-pandemic levels and what Berkshire Hathaway’s acquisition of Allegheny Insurance signals to the industry.
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Disclaimer: This content is provided for general information purposes only and is not intended to be used in consultation with our professional advisors.
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