US car, home and business insurance companies have more than met the challenges posed by COVID-19 over the past year, according to Sean Kevelighan, CEO, Insurance Information Institute (Triple-I).
”2020 proved how this industry can lead through disruption. We can adapt. We can renew. We can keep our promises and pay claims – even during a global pandemic, "Kevelighan told the Reinsurance Association of America (RAA) virtual conference on disaster risk management in 2021.
Net profit after tax for American car home and business insurers fell cumulatively to $ 35 billion in the first nine months of 2020, a decrease of 25 plus percent from where insurers' net profit after tax stood after the first nine months of 201
Despite these events, Triple-I's CEO noted how insurers estimated $ 14 billion in premium assistance to locked drivers, donated nearly $ 300 million to charity, and largely retained its 2.8 million American national labor force as premiums grew modestly. . reports how auto, home and corporate insurers realized three percent net premiums growth compared to the year before the first nine months of 2020 compared to the same time frame in 2019. Net premiums are premiums written after reinsurance transactions.
The arrival of COVID -19 in the United States also prompted the triple-I launch last year of his Future of American Insurance & Reinsurance (FAIR) campaign, he continued, as a political decision-maker, as those in the US House of Representatives sought clarification. which property damage was and was not covered by standard insurance policies (interruption).
"The FAIR campaign was intended to be an aggressive way of informing the discussion," Kevelighan said, "Our clients needed financial support and we knew the federal government was the only entity that could provide it."
In assessing the key issues of 2021, Kevelighan said that he believed that telematics and social inflation would have greater imports among insurers and their policyholders. "Telematics is a way for our industry to drive safety on our roads," said Triple-I's CEO, referring to the units that drivers can voluntarily place in their vehicles to reduce the cost of car insurance and encourage safe driving habits. "Social inflation is deteriorating. These massive lawsuits really burden the cost of liability insurance, ”Kevelighan said.
Following his remarks, Kevelighan attended a live question-and-answer session moderated by Frank Nutter, President, RAA. Katrin Zitzelsberger, senior epidemiologist, Munich Re, and Damon Vocke, partner, Duane Morris, joined them.