Only 25% of companies are evaluating or modeling the longer-term impact of emerging risks on their business. Most businesses focus instead on perils posing imminent threats, creating the potential for a cascade of harmful impacts on their customers.
As bad as last year’s record-shattering fire season was, the U.S. West starts this year’s in even worse shape. The vegetation is primed to ignite, especially in the Southwest where dead juniper trees are full of flammable needles. “It’s like having gasoline out there,” said one forest manager.
Neither COVID-19 nor legislation enacted because of it has seriously harmed the creditworthiness of the property-and-casualty insurance sector, says a new report. Businesses have filed about 1,700 business-interruption claims because of COVID-19 shutdowns, but those cases are largely being decided in favor of insurers.
The global microchip shortage, scarcity of rental cars and increasing building material prices are all leading to higher prices for auto and home insurance. The question for insurers is whether premium increases will be big enough, especially because it's unclear when, and if, people will return to their pre-pandemic habits.
Commercial insurance prices rose by an average of 10% across all size accounts, an increase that was lower than the increases from the previous two quarters. But, troubled lines like cyber and umbrella saw much higher price hikes.
Contractors, especially those performing vegetation management or transmission and distribution line work, have seen rapidly accelerating insurance rates or a lack of available coverage, forcing some of them to decline work, brokers say.
The water crisis along the California-Oregon border went from dire to catastrophic this week as federal regulators shut off irrigation water to farmers from a critical reservoir and said they would not send extra water to dying salmon downstream or to a half-dozen wildlife refuges that harbor millions of migrating birds each year.
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