Research and Trends News

Impact of Driving Record on Auto Insurance Cost Varies Widely by State

While motorists who commit moving violations typically pay higher auto insurance costs, how much more they pay varies significantly by state, according to a report by an online insurance seller. For example, drivers who receive a DUI charge will pay …

Report Challenges Eliminating Deductibility of Foreign Reinsurance Premiums

A report from the Tax Foundation challenges recent tax proposals including the White House’s 2015 budget that call for provisions to limit deductions of “legitimate business costs for tax purposes.” The report says that provisions that would eliminate the deduction …

Fatal Work Injuries in N.Y. Metro Area Declined in 2013: BLS

Work-related fatal injuries in the New York metropolitan area (the New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa. Metropolitan Statistical Area) totaled 152 in 2013, according to preliminary data from the U.S. Bureau of Labor Statistics (BLS). The 2013 figure was down …

A.M. Best: European (Re)Insurers Face Pressure Points; Ratings Are Stable

The recent unveiling by the European Central Bank (ECB) of its large-scale sovereign bond buying program is just one of the pressure points building in Europe that could affect insurers and reinsurers’ balance sheets, said A.M. Best in a new briefing, …

Reports Show Insurers Lag Behind in Adopting Technology

At a time when the financial sector is racing to embrace digital technology to boost sales and drive profits, the traditionally staid insurance industry is in danger of falling behind. Some insurers are using developments such as telematics, or social …

Don’t Blame Demanding Patients for High Medical Costs: Study

New research has found that patients make almost no unreasonable requests for medical treatment, undermining the tendency by doctors to blame higher healthcare costs on the demands of those they care for. Only 1 percent of cancer patients ask for …

A.M. Best: Geopolitical Tensions Hit Insurers’ Prospective Growth in Russia

Heightened geopolitical tensions spilling over from the Russia-Ukraine crisis, high interest and inflation rates, and low commodity prices are placing pressure on Russia’s economy and its insurance industry’s prospective growth, according to an A.M. Best special report. A.M. Best believes the …

Agent-Broker Profitability Reaches Record 21% for 2014: Reagan Consulting

Agent-broker profitability reached 21 percent for 2014, a new record for the Reagan Consulting Organic Growth and Profitability (OGP) survey that began tracking profitability for agencies in 2008. That median profitability for EBITDA (earnings before interest, taxes, depreciation and amortization) …

A.M. Best: Drivers Behind London Market M&A Activity to Continue

The changing dynamics in the specialist property/casualty sector continue to encourage merger and acquisition activity in the London market. A new briefing from A.M. Best notes that the need for insurers to leverage analytical capabilities and increase line size is becoming increasingly …

P/C Insurers Expanding Use of Predictive Modeling

Property /casualty insurance executives believe that predictive modeling has become an essential or very important driver of improved performance over the past six years and they are broadening their use of the application into new areas of operation, according to …