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<title>September 24 | Insurance Advocate</title>
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<title>September 24 Cover</title>
<link>https://www.insurance-advocate.com/2021/09/24/september-24-cover-2/</link>
<dc:creator><![CDATA[Insurance Advocate]]></dc:creator>
<pubDate>Fri, 24 Sep 2021 18:28:01 +0000</pubDate>
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<title>Fiduciary Professions: Legal Challenges and Solutions for Trustees of Trust-Owned Life Insurance</title>
<link>https://www.insurance-advocate.com/2021/09/24/fiduciary-professions-legal-challenges-and-solutions-for-trustees-of-trust-owned-life-insurance/</link>
<dc:creator><![CDATA[Guest Author]]></dc:creator>
<pubDate>Fri, 24 Sep 2021 16:49:53 +0000</pubDate>
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<description><![CDATA[<p>Active and careful management is required</p>
<p>By Grace Bronstein & Ian Weinstock</p>
<p>Many trustees mistakenly believe that life insurance is a static financial instrument. However, trust-owned life insurance (TOLI) requires active and careful management. Recent case law provides a roadmap for how trustees can adequately manage TOLI pursuant to the Uniform Prudent Investor Act (UPIA). Trustees should be aware of their exposure to liability, as there’s been an increasing trend towards lawsuits filed against trustees for policy mismanagement.</p>
The post <a href="https://www.insurance-advocate.com/2021/09/24/fiduciary-professions-legal-challenges-and-solutions-for-trustees-of-trust-owned-life-insurance/">Fiduciary Professions: Legal Challenges and Solutions for Trustees of Trust-Owned Life Insurance</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<h3 class="p1"><span class="s1"><i>Active and careful management is required </i></span></h3>
<p class="p3"><strong><span class="s2">By Grace Bronstein & Ian Weinstock</span></strong></p>
<p> </p>
<p class="p1"><span class="s1">M</span><span class="s3">any trustees mistakenly believe that life insurance is a static financial instrument. However, trust-owned life insurance (TOLI) requires active and careful management. Recent case law provides a roadmap for how trustees can adequately manage TOLI pursuant to the Uniform Prudent Investor Act (UPIA). Trustees should be aware of their exposure to liability, as there’s been an increasing trend towards lawsuits filed against trustees for policy mismanagement. </span></p>
<p class="p4"><b>Elevated Trustee Liability </b></p>
<p class="p5"><span class="s3">Trustees assume fiduciary duties to manage the risks and performance of all trust assets, and TOLI is no exception. However, trustees are often unaware of the numerous risks associated with life insurance policies, such as policy sustainability, solvency and performance. Various factors, particularly sustained low interest rates, have adversely affected policy performance and have rendered traditional policy illustration tools inadequate. Trustees need access to better tools to manage life insurance, and they potentially face a severe liability risk for not properly managing life insurance as prescribed by the UPIA. Trustees can reduce litigation exposure and better serve trust beneficiaries by following the prudent investor standard outlined by the UPIA, which recent case law has clarified. </span></p>
<p class="p4"><b> Lapsed Policies </b></p>
<p class="p5"><span class="s3">An enormous number of life insurance policies lapse prematurely due to mismanagement. Based on the false premise that policies are fixed “buy and hold” financial instruments with guaranteed benefits, many trustees mistakenly believe that their duties are limited to handling gifts made to the trust, paying scheduled premiums and timely sending Crummey notices. However, policies aren’t static and are subject to changing premium amounts, cost of insurance (COI) increases and other critical variables, all of which can affect policy performance. Consequently, Americans ages 65 and older let approximately $112 billion in benefits lapse each year,1 and 34% of TOLI policies are rated “high risk”—meaning they’re either projected to lapse prior to maturity or the no-lapse guarantees have been compromised. </span></p>
<p class="p5"><span class="s3">Policies need to be treated as investments that require regular review and management. Insurance companies, agents and brokers don’t have the responsibility of monitoring life insurance policies. Most policies are currently managed by trustees who are family members, accountants, attorneys or close friends of the settlor of the trust. These trustees may lack the expertise to manage life insurance effectively and should therefore engage an independent consultant to satisfy their fiduciary responsibilities and mitigate liability.</span></p>
<p class="p6">
<p class="p4"><b>Prudent Investor Standard </b></p>
<p class="p5"><span class="s3">In most states, trustees are held to the prudent investor standard under the UPIA. This standard requires trustees to manage assets with reasonable care and prudence and therefore to maximize the benefits and minimize the costs of investments, implicitly including life insurance policies, on behalf of trust beneficiaries. Proper management is explained as monitoring the “suitability” of existing investments, including life insurance policies.2 Doing so requires trustees to understand the underlying COI charges, policy earnings assumptions, actual life expectancy projections, policy expenses and other vital variables. Trustees who violate their fiduciary duties can be held responsible for damages in the form of recovery of the losses incurred caused by ineffective management. Therefore, trustees should understand what proper management of life insurance entails, and the case In re Stuart Cochran Irrevocable Trust provides a clear roadmap to avoid liability.3 </span></p>
<p class="p5"><span class="s3">In this case, irrevocable life insurance trust beneficiaries sued the trustee, KeyBank, for breaching its fiduciary duties by mismanaging their TOLI. In 1999, relying on the recommendation of the insured’s insurance advisor (who sold life insurance to the insured), KeyBank approved an exchange of policies that increased the collective death benefit from $4.7 million to $8 million, and the new policies were variable universal life (VUL) contracts. Their cash value declined precipitously due to external economic conditions. As a result, the trustee retained an independent insurance consultant to review the policies in 2003, when the insured was 52 years old. The independent consultant recommended keeping the policies and further monitoring them, but the same insurance advisor who conducted the original sale and previous policy exchange decided to undertake his own review and recommended replacing the policies yet again, replacing the $8 million VUL policies with a $2.5 million guaranteed UL policy. The trustee again consulted the independent insurance consultant, who noted certain disadvantages of the new policy—particularly the lower death benefit— but also noted the advantages of the new policy— that the death benefit was guaranteed with no future premium payments, while the VUL policies would lapse without substantial additional premium payments from the settlor, who didn’t have the financial wherewithal to make those payments. The independent insurance consultant therefore rated the new policy more highly under the circumstances. The trustee exchanged the policies, and the trust realized a 20% loss of assets due to the $107,000 surrender charge the trust had to pay to exchange the policies. Moreover, the insured unexpectedly died a year later at the age of 53, and his beneficiaries lost out on millions of dollars of death benefit. The beneficiaries subsequently sued the trustee for breach of fiduciary duty. The court, however, ruled that the trustee acted prudently by engaging “an outside, independent entity with no policy to sell or any other financial stake in the outcome.”4 The trustee’s act of retaining an independent consultant saved the trustee from liability under the UPIA. </span></p>
<p class="p5"><span class="s3">This case illustrates the importance of independent review and the pitfalls of merely following the advice of an insurance advisor or broker, whose primary goal is to sell new insurance. While the court in Cochran didn’t expressly say so, the implication of the case is that, had the trustee not sought the independent consultant’s opinion and simply relied on the insurance advisor’s recommendation to replace the existing policies, the result of the case could have been different because the trustee’s conduct may not have been deemed prudent. </span></p>
<p class="p5"><span class="s3">Trustees should also be aware that exculpatory clauses may not protect them from liability if they don’t adequately manage trust-owned life insurance. Rafert v. Meyer established that trustees have a non-waivable duty to keep beneficiaries informed about the status of policies held in trust, to act in good faith and in the best interest of the beneficiaries—all despite exculpatory clauses in trust agreements.5 </span></p>
<p class="p4"><b>Potential for Liability </b></p>
<p class="p5"><span class="s3">Trustees should ask the following questions when ascertaining their potential for liability: </span></p>
<p class="p7"><span class="s3">Is the trust being administered in accordance with the terms of the trust agreement? </span></p>
<p class="p7"><span class="s3">Is the policy being properly funded? </span></p>
<p class="p7"><span class="s3">Is the projected premium payment on the most recent policy statement the payment the insured should actually be making? </span></p>
<p class="p7"><span class="s3">Is the policy being reviewed annually by qualified, independent experts? </span></p>
<p class="p7"><span class="s3">If the policy is underperforming, are the relevant issues being addressed and remediated? </span></p>
<p class="p7"><span class="s3">Are Crummey notices handled properly? </span></p>
<p class="p4"><b>Active Management </b></p>
<p class="p5"><span class="s3">Unbeknown to most policyowners, insurance carriers can adjust insurance premiums and other aspects of policies as necessitated by market forces and fluctuating costs. Policies are designed to deliver a certain rate of return to the insurance carrier, and this return is affected by interest rates, premiums, the projected future death benefit and other carrier costs. Trustees should understand and analyze these variables because they affect the premiums required to sustain the policy. For example, premiums can be influenced by a life insurance carrier’s mortality experience across its portfolio of policies as well as other undefined operational expenses. There’s also a direct correlation between interest rates and the COI, as insurance carriers effectively pass interest rate risk on to the policyowner. Understanding the variable nature of life insurance costs is critical to effective policy management. </span></p>
<p class="p5"><span class="s3">Insurance premium illustrations that were created in the 1980s and 1990s were predicated on interest rates maintaining levels that are now detached from reality. Subsequent events proved that these illustrations were based on unrealistic economic variables and, therefore, didn’t accurately predict length of coverage and relevant costs. When interest rates began to decline, most policyowners and trustees weren’t aware that they had to increase the amount of premiums they were paying. Moreover, most policyowners and trustees are unaware that it’s not the insurance carrier’s duty to notify the policyowners to increase their payments, but rather it’s the policyowner’s responsibility to increase their payments proactively or risk their policy’s cash value being depleted, which typically exacerbates the risk of the policy lapsing. The insurance company only has to provide the death benefit coverage and send the policy owner an annual statement. </span></p>
<p class="p5"><span class="s3">The insurance industry increased the internal COI for the first time in 2016. Regulators and policyowners alike were surprised at how fast these increases took place, and several class actions ensued. Carriers such as Transamerica Life Insurance Company settled class action lawsuits brought on behalf of policyholders alleging that Transamerica improperly increased monthly charges for universal life policies.6 However, carriers may still be able to increase the COI at any time with only 30 days’ notice to the policyowner. Depending on the policy type, carriers also have the ability to increase premium amounts, as well as change other factors</span></p>
<p class="p5"><span class="s3">. </span></p>
<p class="p4"><b>Life Insurance Agents </b></p>
<p class="p5"><span class="s3">Life insurance agents—whether they describe themselves as insurance agents, brokers, advisors, or otherwise—earn commissions for selling insurance and are therefore incentivized to replace existing policies with new ones. There are many well-intentioned life insurance agents who genuinely want what’s best for their clients, but given their financial incentives, it may be difficult for them to provide unbiased opinions to their clients after selling them the original policy. Moreover, even more general financial advisors can’t necessarily manage policies as prescribed by the UPIA, not only because of the incentive issue noted above but also because they may be getting information about the policy only from the issuer. Active policy management requires an independent third party with access to tools for independent policy evaluation. </span></p>
<p class="p5"><span class="s3">Trustees aren’t the only parties with potential liability for mismanaging life insurance. Life insurance agents may also have exposure if they advise clients to whom they sold life insurance. By retaining an independent consultant, those agents can limit their own liability as well. </span></p>
<p class="p5"><span class="s3">Several cases illustrate the risk to insurance agents for providing (or failing to provide) advice to their clients. For example, in Joseph Nacchio et al. v. David Weinstein et al., the insured sued his insurance advisor Ayco Co., a unit of Goldman Sachs, and former financial advisor, David Weinstein, for negligence and breach of fiduciary duty for failing to properly explain the risks of variable life insurance.7 Nacchio bought $95 million in variable life insurance coverage as part of an estate enhancement plan, believing that the policies would cover him until age 100. Ten years after purchasing the policy, Nacchio discovered that the policies would lapse once he reached age 72, and Nacchio replaced the policies with more appropriate ones. The jury found that Weinstein breached a duty of care as a financial advisor in not properly managing and conveying cost and performance expectations and awarded Nacchio $14.2 million in damages—the difference between the actual cost of the replacement policies and what those polices would have cost had they been purchased at the outset in 2000.8 </span></p>
<p class="p5"><span class="s3">Agents can also have exposure for failing to advise clients of their options regarding existing coverage. For example, in Larry Grill v. Lincoln National Life Insurance, an insurance agent’s client brought suit against the agent because the agent didn’t tell the client about the possibility of a life settlement.9 </span></p>
<p class="p4"><b>How to Satisfy Fiduciary Duties </b></p>
<p class="p5"><span class="s3">To fulfill their fiduciary duties, trustees should engage an independent consultant to perform annual reviews of the performance of the policy, the carrier and the suitability of the insurance. Policies have to be evaluated to determine how much longer the policy is expected to remain in force based on the current premium, whether additional premiums are required and the possibility of strategic payment reductions. </span></p>
<p class="p5"><span class="s3">The independent consultants that trustees engage should: </span></p>
<p class="p8">1. Determine the monthly COI and all additional applicable charges, which may deviate materially from the projected premiums illustrated by the carrier;</p>
<p class="p8">2. Review and justify the relevance and continuation of supplementary benefits and riders;</p>
<p class="p8">3. Review in-force illustrations and annual statements and obtain the most current statement;</p>
<p class="p8">4. Obtain and analyze life insurance carrier ratings;</p>
<p class="p8">5. Evaluate policy performance;</p>
<p class="p8">6. Obtain actual life expectancy reports from an established and reliable third party;</p>
<p class="p8">7. Review policy features, including guarantees, evaluating the risks they present to the trust;</p>
<p class="p8">8. Confirm net death benefit amount from insurance carrier;</p>
<p class="p8">9. Confirm net cash surrender value from insurance carrier; and</p>
<p class="p8">10. Analyze previous payment history, including exact dates of payment.</p>
<p class="p5"><span class="s3">Most policies typically don’t perform according to the life insurance company’s projections at the time the policy is originally issued. Premiums are projected using fixed or constant interest rate assumptions, although the carrier has reserved the right to change these assumptions, as well as the COI, at any point. Moreover, insurance companies don’t re-evaluate the insured’s health or life expectancy after the initial sale. </span></p>
<p class="p5"><span class="s3">To monitor a policy effectively, as prescribed by the UPIA, trustees should hire an experienced independent consultant with extensive knowledge of actuarial assumptions and life expectancy underwriting. The independent consultant can obtain current life expectancy reports and calculate the COI by applying the same methodology that insurance companies use when issuing the policy. By essentially re-underwriting the insured, the third party consultant can more accurately predict future required premium payments and whether the policyowner’s actual payments should differ from the carrier’s suggested annual payments. </span></p>
<p class="p5"><span class="s3">Attorneys drafting trust agreements for trusts intended to hold life insurance should advise the trustees (or advise their clients to advise their trustees) to review policies annually with independent consultants. The UPIA implies this level of monitoring, but trustees may be oblivious as to what their responsibilities entail, so attorneys can do a service to their clients and to their clients’ trustees by emphasizing the importance of the trustees’ active management of life insurance. </span></p>
<p> </p>
<p class="p11"><strong>Endnotes</strong></p>
<p class="p12" style="padding-left: 40px;">Life Insurance Settlement Association, “American Seniors Forfeit $112 Billion Annually Due to Lapsed or Surrendered Insurance Policies, According to Research Presented at LISA Institutional Investor Conference,” GlobeNewswire (Feb. 24, 2015), www.globenewswire.com/news-rele ase/2015/02/24/709266/10121642/en/American-Seniors-Forfeit-112-Billion-in-Benefits-Annually-Due-to-Lapsed-or-Surrendered-Life-Insurance-Policies-According-to-Research-Presented-at-LISA-Institutional-Investor-Confer.html.</p>
<p class="p12" style="padding-left: 40px;">Uniform Prudent Investor Act, Section 2, Standard Of Care; Portfolio Strategy; Risk And Return Objectives, Uniform Act Commentary.</p>
<p class="p12" style="padding-left: 40px;">In re Stuart Cochran Irrevocable Trust, 901 N.E.2d 1128 (Ind. Ct. App. 2009).</p>
<p class="p12" style="padding-left: 40px;">Ibid., at p. 1137.</p>
<p class="p12" style="padding-left: 40px;">Rafert v. Meyer, 859 N.W.2d 332 (Neb. Feb. 27, 2015).</p>
<p class="p12" style="padding-left: 40px;">Thompson v. Transamerica Life Insurance Co., No. 2:18-cv-05422, 2018 WL 6790561, (C.D. Cal. Dec. 26, 2018).</p>
<p class="p12" style="padding-left: 40px;">Nacchio v. Weinstein, L-3298-10, Superior Court of New Jersey, Morris County (2016).</p>
<p class="p12" style="padding-left: 40px;">Ibid.</p>
<p class="p12" style="padding-left: 40px;">Larry Grill, et al. v. Lincoln National Life Ins. Co., EDCV 14-0051-JGB (SPx), 2014 WL 12588653(C.D. Cal. Sept. 4, 2014).</p>
<p style="padding-left: 40px;">
<p> </p>
<p class="p14"><span class="s3">Grace Bronstein is the CEO of Trust Life Insurance Management in Boca Raton, Fla. and Ian Weinstock is a partner at Kostelanetz & Fink LLP in New York City </span></p>
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<title>Remembering Fmr. Ny Supt of Insurance, Albert Lewis</title>
<link>https://www.insurance-advocate.com/2021/09/24/remembering-fmr-ny-supt-of-insurance-albert-lewis/</link>
<dc:creator><![CDATA[Steve Acunto]]></dc:creator>
<pubDate>Fri, 24 Sep 2021 12:58:03 +0000</pubDate>
<category><![CDATA[2021]]></category>
<category><![CDATA[September 24]]></category>
<category><![CDATA[Foreword]]></category>
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<description><![CDATA[<p>An exemplary public servant, gentleman and friend Many in the insurance industry have communicated great sadness together with enduring admiration for former New York State Superintendent of Insurance, Albert Lewis, who died on August 7th at 95 years of age. The cause was complications from Alzheimer’s disease. Insurance regulation was itself improved by Al Lewis […]</p>
The post <a href="https://www.insurance-advocate.com/2021/09/24/remembering-fmr-ny-supt-of-insurance-albert-lewis/">Remembering Fmr. Ny Supt of Insurance, Albert Lewis</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<h3 class="p1"><i>An exemplary public servant, gentleman and friend</i></h3>
<p><a href="https://www.insurance-advocate.com/wp-content/uploads/2021/10/foreword-albert-lewis-new-york-ny-obituary.jpeg"><img decoding="async" class=" wp-image-13013 alignleft" src="https://www.insurance-advocate.com/wp-content/uploads/2021/10/foreword-albert-lewis-new-york-ny-obituary.jpeg" alt="" width="200" height="255" srcset="https://www.insurance-advocate.com/wp-content/uploads/2021/10/foreword-albert-lewis-new-york-ny-obituary.jpeg 509w, https://www.insurance-advocate.com/wp-content/uploads/2021/10/foreword-albert-lewis-new-york-ny-obituary-235x300.jpeg 235w" sizes="(max-width: 200px) 100vw, 200px" /></a></p>
<p class="p1"><span class="s1">M</span>any in the insurance industry have communicated great sadness together with enduring admiration for former New York State Superintendent of Insurance, Albert Lewis, who died on August 7th at 95 years of age. The cause was complications from Alzheimer’s disease.</p>
<p class="p3">Insurance regulation was itself improved by<span class="Apple-converted-space"> </span>Al Lewis who knew the business, liked it and advanced it.</p>
<p class="p3">Appointed by Governor Carey in 1978, Lewis ran the Insurance Department as an old school populist Democrat, fighting against strong opposition to limit insurance rate increases for individuals and to protect consumers against predatory practices. He began a specialized fraud unit and secured legislation to create a New York Insurance Exchange and Free Trade Zone to compete with insurance exchanges abroad. Following his service, Lewis he noted great respect for the dedicated public servants at the New York State Insurance Department and remained close to many over the years. In 1983, he took up the private practice of law for the three decades, as a partner of D’Amato & Lynch. He wrote three important books on insurance and fraud.</p>
<p class="p3">His story is one of meaningful service. A graduate of Lafayette High School, he attended Brooklyn College before being drafted into the Army in December 1943. He was assigned to the horse cavalry in Fort Riley, Kansas before being sent to fight in the Pacific Theater. He was part of the first wave of the US Army of Occupation in Japan, spending nearly a year in Kyoto. Discharged in 1945, he enrolled at City College of New York and received his Bachelors in Business Administration and Accounting in 1948. He qualified as a Certified Public Accountant and then attended St. John’s University Law School at night, graduating with an LLB in 1954. He was elected to the New York State Senate from what was then the 20th District spanning Bensonhurst, Coney Island, Brighton and Borough Park. He was reelected by wide margins six times.</p>
<p class="p3">Considered a maverick Democrat, he often bucked party leadership. Despite the conservative outlook of his largely Catholic and Hasidic district, he voted for abortion reform in the early 1970’s, as New York by a very narrow margin became one of the first states in the country to legalize abortion. He also opposed public support of gambling, and was active in efforts to prevent compulsive gambling. His independence in the Senate, largely split between a conservative upstate majority and a progressive New York City Democratic caucus, frequently made him a bridge between various groups and he was regularly called on by then-Governor Nelson Rockefeller for advice on his legislative programs. According to his family, he<span class="Apple-converted-space"> </span>marveled that the son of parents who had come in steerage to the United States was being consulted by a Rockefeller. Lewis was a strong supporter of Israel, having lost family in the Holocaust. He was a tireless fundraiser for Israel and supporter of Soviet Jewish migration and the rights of American Jews to live full lives as Americans in accordance with Jewish traditions, including legislation that prevented restrictions on Kosher slaughter and local elections on the Sabbath. His honors from Jewish groups were numerous, but he was proudest of meeting with an aged David Ben-Gurion on his first visit to Israel in 1971. He was the son of immigrants fleeing Tsarist pogroms in what is now Belarus.</p>
<p class="p3">Lewis married Sara Anne Beresniakoff in 1949, who taught English at his alma mater, Lafayette High School, for more than 35 years. They had three children, David (Carol Hayward) a New York Court of Claims Judge, Eric (Emily Spitzer), an international lawyer in Washington, and Jonathan (Marisa), an advertising copywriter in New York. Sara Anne Lewis died in 1985 after 36 happy years of marriage. In 1986, he married Leila Stein, a widowed family friend, , and they too found great happiness for nearly 35 years. He had four step-sons, Harmon (Nadine), Gregg (Dina) Eric (Cathy) and Daniel Stein; six grandchildren; eleven step- grandchildren; a great grandchild and two step great grandchildren. His wife, Leila Lewis, survives him. Albert Lewis was a great story and joke teller, a fierce table tennis and stickball player, and an inveterate traveler, including being part of an early official delegation after the opening of China. An opera lover, he delighted in being a supernumerary as a cardinal in Rigoletto at the Met. As ill as he was, he had a last great joy in meeting his COVID- born great-grandson just before he passed away.</p>
<p class="p3">Albert Lewis, an exemplary public servant, gentleman, and friend to so many, may he rest in peace<span class="s2">. <b>SA</b></span></p>
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<title>Adrienne Harris Named Superintendent of the Department Of Financial Services</title>
<link>https://www.insurance-advocate.com/2021/09/24/adrienne-harris-named-superintendent-of-the-department-of-financial-services/</link>
<dc:creator><![CDATA[Insurance Advocate]]></dc:creator>
<pubDate>Fri, 24 Sep 2021 10:57:05 +0000</pubDate>
<category><![CDATA[2021]]></category>
<category><![CDATA[September 24]]></category>
<category><![CDATA[In The News]]></category>
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<description><![CDATA[<p>Adrienne Harris has been nominated to lead the New York State Department of Financial Services as its next Superintendent by Governor Hochul. Formerly a top economic advisor to President Obama, Ms. Harris will become the state’s top financial regulator tasked with overseeing the banking and insurance industries and their compliance with state laws as New […]</p>
The post <a href="https://www.insurance-advocate.com/2021/09/24/adrienne-harris-named-superintendent-of-the-department-of-financial-services/">Adrienne Harris Named Superintendent of the Department Of Financial Services</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p class="p1">Adrienne Harris has been nominated to lead the New York State Department of Financial Services as its next Superintendent by Governor Hochul. Formerly a top economic advisor to President Obama, Ms. Harris will become the state’s top financial regulator tasked with overseeing the banking and insurance industries and their compliance with state laws as New York works to rebuild its economy in the wake of the COVID-19 pandemic. At this writing her conformation is pending Senate approval.</p>
<p class="p1">Ms. Harris began her career as an Associate at Sullivan and Cromwell LLP in New York City representing a number of U.S. and non-U.S. based corporations in various litigation and regulatory matters, before accepting a position at the United States Department of the Treasury under President Obama. While at the Treasury Department, Ms. Harris served as a Senior Advisor to both Acting Deputy Secretary and Under Secretary for Domestic Finance, Mary Miller, and Deputy Secretary, Sarah Bloom Raskin. As Senior Advisor, Ms. Harris focused on a number of financial policy issue areas which were, and continue to be, critical to the advancement of the national economy. This work ranged from helping jumpstart national financial reform efforts to finding ways to advance fintech, identifying solutions to the student loan crisis, analyzing the nexus between foreign investment and national security, and working to promote financial intelligence and health in communities throughout the country.</p>
<p class="p1">Following her time at the Treasury Department, Ms. Harris joined The White House, where she was appointed as Special Assistant to the President for Economic Policy, as part of the National Economic Council. In this role, Ms. Harris managed the financial services portfolio, which included developing and executing strategies for financial reform and the implementation of Dodd-Frank, while also continuing to advance fintech initiatives, consumer protections for the American public, cybersecurity and housing finance reform priorities.</p>
<p class="p1">Since leaving the White House in January 2017, Ms. Harris went on to serve as General Counsel and Chief Business Officer, and presently as Advisor at States Title, Inc. (now DOMA), which provides title insurance and settlement services in a number of states throughout the nation. Ms. Harris also currently serves as a Professor and Faculty Co-Director at the Gerald R. Ford School of Public Policy’s Center on Finance, Law and Policy at the University of Michigan, as well as a Senior Advisor at the Brunswick Group in Washington D.C. where she advises multinational corporations on mergers and acquisitions, stakeholder communications and management, future-proofing and policy intelligence.</p>
<p class="p1">Ms. Harris was graduated from Georgetown University with a Bachelor of Arts degree and subsequently earned her Juris Doctor from Columbia Law School and a Master’s in Business Administration from New York University.</p>
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<title>New York Insurance Scholarship Foundation Selects Delgado And Fitzpatrick As 2021–2022 Scholars</title>
<link>https://www.insurance-advocate.com/2021/09/24/new-york-insurance-scholarship-foundation-selects-delgado-and-fitzpatrick-as-2021-2022-scholars/</link>
<dc:creator><![CDATA[Insurance Advocate]]></dc:creator>
<pubDate>Fri, 24 Sep 2021 09:56:08 +0000</pubDate>
<category><![CDATA[2021]]></category>
<category><![CDATA[September 24]]></category>
<category><![CDATA[In The News]]></category>
<guid isPermaLink="false">https://www.insurance-advocate.com/?p=13008</guid>
<description><![CDATA[<p>The New York Insurance Scholarship Foundation, Inc. (NYISF) has named Diego Delgado from Minoa, N.Y. and Lily Fitzpatrick from Whitestone, N.Y. as the foundation’s 2021–2022 New York Insurance Scholars. Delgado is a junior at Le Moyne College majoring in risk management and insurance, finance, and information systems. Fitzpatrick is a senior at St. John’s University […]</p>
The post <a href="https://www.insurance-advocate.com/2021/09/24/new-york-insurance-scholarship-foundation-selects-delgado-and-fitzpatrick-as-2021-2022-scholars/">New York Insurance Scholarship Foundation Selects Delgado And Fitzpatrick As 2021–2022 Scholars</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p class="p1">The New York Insurance Scholarship Foundation, Inc. (NYISF) has named Diego Delgado from Minoa, N.Y. and Lily Fitzpatrick from Whitestone, N.Y. as the foundation’s 2021–2022 New York Insurance Scholars. Delgado is a junior at Le Moyne College majoring in risk management and insurance, finance, and information systems. Fitzpatrick is a senior at St. John’s University majoring in risk management and insurance and minoring in Asian studies.</p>
<p class="p1">“The New York Insurance Scholarship Foundation appreciates the opportunity to provide support and elevate the educational experience of budding insurance professionals like Diego and Lily.” Ellen Melchionni, president of NYISF said. “These New York Insurance Scholars have already achieved notable accomplishments in academia and show great promise for their professional careers in insurance.”</p>
<p class="p1">New York Insurance Scholars is a new program, which expands the work of the foundation and enhances the support provided to students by offering a $5,000 annual scholarship for up to two years—a total of a $10,000 award. The program also includes mentorships with seasoned insurance leaders, resources for potential job or internship opportunities and visibility and networking with industry executives.</p>
<p class="p1">The foundation was created to encourage scholastic achievement, community involvement and a commitment to advancing the insurance industry. “These students exemplify all of these qualities,” Melchionni said. “Diego and Lily have immersed themselves in their professional and local communities while maintaining admirable grade point averages.”</p>
<p class="p1">Fostering and investing in the development of our future leaders has a direct correlation to the success of the insurance and risk management industry of tomorrow. “The insurance industry has been and will remain a viable and necessary field of employment,” Melchionni said. “The cultivation of new talented leaders is critical to the future of the industry as technology and consumer needs are ever-evolving.”</p>
<p class="p1">The New York Insurance Scholarship Foundation, Inc. (NYISF) is a charitable organization initiated by the property and casualty insurance industry that supports students interested in pursuing a career in insurance. The foundation is affiliated with the New York Insurance Association, Inc.</p>
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<title>Invest™ Appoints Juan Padron as Board Chair</title>
<link>https://www.insurance-advocate.com/2021/09/24/invest-appoints-juan-padron-as-board-chair/</link>
<dc:creator><![CDATA[Insurance Advocate]]></dc:creator>
<pubDate>Fri, 24 Sep 2021 08:54:56 +0000</pubDate>
<category><![CDATA[2021]]></category>
<category><![CDATA[September 24]]></category>
<category><![CDATA[In The News]]></category>
<guid isPermaLink="false">https://www.insurance-advocate.com/?p=13006</guid>
<description><![CDATA[<p>Invest™, the insurance industry’s premier classroom-to-career education program, has appointed Juan Padron, partner at SafeGuard Insurance Agency in McAllen, Texas, as the new chair of the national Invest board. Padron has been part of the insurance industry since 2002. He has served on the Invest board since 2019 as an agent member and currently serves […]</p>
The post <a href="https://www.insurance-advocate.com/2021/09/24/invest-appoints-juan-padron-as-board-chair/">Invest™ Appoints Juan Padron as Board Chair</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p class="p1">Invest<img src="https://s.w.org/images/core/emoji/15.0.3/72x72/2122.png" alt="™" class="wp-smiley" style="height: 1em; max-height: 1em;" />, the insurance industry’s premier classroom-to-career education program, has appointed Juan Padron, partner at SafeGuard Insurance Agency in McAllen, Texas, as the new chair of the national Invest board.</p>
<p class="p1"><span class="s1">Padron has been part of the insurance industry since 2002. He has served on the Invest board since 2019 as an agent member and currently serves on the board of the Independent Insurance Agents of the Rio Grande Valley as well as the regional advisory board for Teach for America of the Rio Grande Valley. From 2009 to 2016, Padron served on the Big “I” Diversity Council, chairing the group from 2010 to 2016. He received a Big “I” Chairman’s Award in October 2015. Through service in various affinity groups and trade associations, Padron has been a champion for education and has been involved in awarding many scholarships to young people pursuing college degrees.</span></p>
<p class="p1">“With his extensive insurance and management experience, Juan’s leadership of the Invest board will be critical to supporting Invest’s mission of bringing new, diverse talent into the insurance industry,” says Deborah Pickford, executive director of Invest. “We look forward to partnering with Juan on programs that will attract more people to insurance careers.”</p>
<p class="p1">Prior to joining the insurance industry, Padron worked as an aerospace engineer at NASA in Houston and for General Electric as a Six Sigma Black Belt. Padron earned a bachelor’s degree in aerospace engineering from The University of Texas at Austin, a Master of Business Administration degree from The University of Houston, and an Associate in Risk Management (ARM) designation from The Institutes.</p>
<p class="p1"><span class="s2">As a 501(c)(3) educational trust, Invest benefits from the support of numerous insurance organizations, hundreds of agencies, brokers, and volunteers. The program provides the insurance industry with motivated, talented, and intelligent professionals through a support structure of state associations, board members, national staff, teachers, and the many industry professionals who work in the field as classroom liaisons. </span></p>
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<title>Auto and Property Insurance Shopping Continue to Diverge; Both Younger and Riskier Consumers Increase Auto Shopping</title>
<link>https://www.insurance-advocate.com/2021/09/24/auto-and-property-insurance-shopping-continue-to-diverge-both-younger-and-riskier-consumers-increase-auto-shopping/</link>
<dc:creator><![CDATA[Insurance Advocate]]></dc:creator>
<pubDate>Fri, 24 Sep 2021 07:52:33 +0000</pubDate>
<category><![CDATA[2021]]></category>
<category><![CDATA[September 24]]></category>
<category><![CDATA[trends]]></category>
<guid isPermaLink="false">https://www.insurance-advocate.com/?p=13000</guid>
<description><![CDATA[<p>TransUnion report reveals the personal lines insurance marketplace shows signs of returning to pre-pandemic levels Auto and property insurance shopping continued to diverge in Q2 2021 as factors such as low mortgage rates, pandemic-driven nesting and supply chain disruptions impacted these industries differently. TransUnion’s (NYSE: TRU) latest Personal Lines Insurance Shopping Report also found a resurgence in […]</p>
The post <a href="https://www.insurance-advocate.com/2021/09/24/auto-and-property-insurance-shopping-continue-to-diverge-both-younger-and-riskier-consumers-increase-auto-shopping/">Auto and Property Insurance Shopping Continue to Diverge; Both Younger and Riskier Consumers Increase Auto Shopping</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p class="p1"><span class="s1"><b>TransUnion report reveals the personal lines insurance marketplace shows signs of returning to pre-pandemic levels</b></span></p>
<p class="p1">Auto and property insurance shopping continued to diverge in Q2 2021 as factors such as low mortgage rates, pandemic-driven nesting and supply chain disruptions impacted these industries differently. TransUnion’s (NYSE: TRU) latest Personal Lines Insurance Shopping Report also found a resurgence in auto insurance shopping for higher risk consumers as well as the Millennial and Gen Z generations.</p>
<p class="p1">Throughout Q2 2021, property insurance shopping has consistently been higher than auto insurance shopping. The three-week moving averages for property insurance have generally been between 5% and 15% higher than the previous year. In comparison, the three-week moving average for auto insurance shopping has been mostly flat to 5% higher than one year ago. During the most recent week included in the report – July 4, 2021 – the three-week moving average for property insurance shopping rose 7.2% compared to the previous year. In this same timeframe, auto insurance shopping rose 2.9%.</p>
<p class="p1"> “It’s a positive sign to see an increase in both property and auto insurance shopping. While property insurance shopping has been partly buoyed by a strong housing market and low interest rates, auto insurance shopping has clearly been slower to recover partly due to constrained inventories of new automobiles,” said Mark McElroy, executive vice president and head of TransUnion’s insurance business. “More automobile insurance shopping may soon be on the horizon as we are seeing an increase in such activity by younger as well as higher risk consumers.”</p>
<p class="p1">
<p class="p2"><b>Millennials, Gen Z and Higher Risk Consumers Increasingly Shopping for Auto Insurance </b></p>
<p class="p1"> The Report highlighted how many nonstandard insurance customers – those who have lower TransUnion TrueRisk auto insurance risk scores – were forced to go uninsured or underinsured during 2020 due to economic hardship. With employment improving and tax rebates and stimulus payments now available, those customers may now be in the market for auto insurance once again.</p>
<p class="p1"> In fact, consumers with a TrueRisk score between 300 and 500 saw their three-week shopping rate average increase by 9.2% during the week of July 4, 2021. Similar and even higher shopping rates occurred for most of the second half of Q2 2021. This is a dramatic change from Q1 2021 when the three-week average had declined on an annual basis between 10% and 25%.</p>
<p class="p1"> The Report also found that Millennials (born 1980 to 1994) and Gen Z (born 1995 to 2003) have become more active shoppers over the course of 2021; the older Boomer (born 1946 to 1964) and Silent (born before 1946) generations, by contrast, have become less active. The Report indicated that this may be happening because the controlling factor in shopping behavior for Millennials and Gen Z over the pandemic was high youth unemployment, which is now dropping as the economy recovers.</p>
<p class="p1"> “Younger consumers who lost their jobs in 2020 may have subsequently left the auto insurance market altogether, but are now gradually returning as they take on new jobs and now have a need for coverage as their transportation requirements evolve. Delayed tax refunds and stimulus, as well as the beginning of advanced payments on the new Child Tax Credit, will give more people the opportunity to shop for new cars and new auto insurance. Overall, the seasonal ebb and flow of auto shopping that the industry has come to expect may not apply over the next few years,” concluded McElroy.</p>
<p class="p1"><span class="s1">The quarterly Insurance Shopping Snapshot Report is based entirely on TransUnion’s internal studies. The auto insurance shopping trends reported are based on TransUnion’s report which is derived from TransUnion’s extensive database of credit data. It includes information on more than 500 million auto insurance shopping transactions from January 2016 to July 2021. The report focuses on the credit population, highlighting TransUnion’s data. It also explores a subset of the total insurance shopping population. The report excludes data from auto insurance customers in California, Hawaii and Massachusetts, where credit-based insurance scoring information is not used for auto insurance rating or underwriting.</span></p>
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<title>Motorized Bikes- A New Cycling Trend</title>
<link>https://www.insurance-advocate.com/2021/09/24/motorized-bikes-a-new-cycling-trend/</link>
<dc:creator><![CDATA[Guest Author]]></dc:creator>
<pubDate>Fri, 24 Sep 2021 06:54:09 +0000</pubDate>
<category><![CDATA[September 24]]></category>
<guid isPermaLink="false">https://www.insurance-advocate.com/?p=13003</guid>
<description><![CDATA[<p>By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor Electric bikes or e-bikes are becoming increasingly popular. Although at first glance they may look like a traditional bicycle, they have a battery-operated motor to assist the rider in travel. E-bikes are not all the same, and their usage varies. Use […]</p>
The post <a href="https://www.insurance-advocate.com/2021/09/24/motorized-bikes-a-new-cycling-trend/">Motorized Bikes- A New Cycling Trend</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p class="p1"><strong>By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor</strong></p>
<p class="p1">Electric bikes or e-bikes are becoming increasingly popular.<span class="Apple-converted-space"> </span>Although at first glance they may look like a traditional bicycle, they have a battery-operated motor to assist the rider in travel. <span class="Apple-converted-space"> </span>E-bikes are not all the same, and their usage varies. Use of e-bikes may represent a higher liability exposure than traditional manually pedal-operated bicycles. Helping clients understand the possible insurance implications and exposures of e-bikes is a value-added service of the professional insurance agent.</p>
<p class="p1">Although the terms are sometimes used interchangeably, e-bikes and pedelecs, or pedal electric bikes, are not the same.<span class="Apple-converted-space"> </span>While both have motors to assist the rider, pedelecs do not have a throttle – the motor only works to assist when pedaling. <span class="Apple-converted-space"> </span>E-bikes have a throttle and the rider has the option to ride without pedaling, ride while pedaling with motor assisting, or ride with pedaling only.</p>
<p class="p1">E-bikes are attractive to commuters as they provide a boost to make cycling easier and eliminate sweating.<span class="Apple-converted-space"> </span>The motor also helps provide extra power to carry change of clothes, laptop and other items.<span class="Apple-converted-space"> </span>E-bikes can reach speeds of 20 miles per hour, or about twice that of traditional bicycles. During the pandemic, people who were hesitant to use public transportation turned to e-bikes as an alternative.<span class="Apple-converted-space"> </span>A typical e-bike charge will last from 25-75 miles, depending on usage. <span class="Apple-converted-space"> </span>E-bikes are also popular with urban delivery services.</p>
<p class="p1">E-bikes are powered by lithium batteries, which are highly combustible, but fires can be avoided with proper care. Most batteries must be charged separately – operation of the motorized bike will not recharge the battery. Batteries are usually removable and the charger can be used in a standard power outlet.</p>
<p class="p1">There are several generally recognized types of motor-assisted bicycles: Type 1 – Pedal-Assist (Pedelec)– the motor only works when rider is pedaling.<span class="Apple-converted-space"> </span>Type 2 – Throttle Only – the motor on these is controlled by<span class="Apple-converted-space"> </span>cranking the throttle – no pedaling required. Type 3 – Pedal-Assist 28 mph – the fastest legal motor-assisted bicycle. It may or may not have a throttle. Regulation of the operation of motorized bicycles is still evolving.<span class="Apple-converted-space"> </span>Some states do have restrictions on the maximum speed and power, the minimum age of the rider, and whether or not a helmet is required.</p>
<p class="p1">With pedelecs, the motor measures how hard the rider is pedaling and supplements that effort.<span class="Apple-converted-space"> </span>Throttle-controlled e-bikes are similar to motorcycles.<span class="Apple-converted-space"> </span>The throttle is usually mounted on the handlebar and activated by twisting.<span class="Apple-converted-space"> </span>Throttle-controlled e-bikes may or may not have a pedal-assist option.</p>
<p class="p1">Standard homeowners policies offer very limited coverage for damage to, theft of or liability for operation of an e-bike that could be considered a motorized vehicle. <span class="Apple-converted-space"> </span>Since in most jurisdictions no license is required to operate an e-bike, they are not required to be registered, and they have less than four wheels, a typical automobile insurance policy will not provide coverage.<span class="Apple-converted-space"> </span>In fact e-bikes can be attractive transportation for those without a driver’s license.</p>
<p class="p1">Theft of e-bikes are on the rise. The New York Times reported that 328 e-bikes were reported stolen in the city in 2020.<span class="Apple-converted-space"> </span>In some cases, it is just the battery that is taken. Locking the e-bike, removing the battery and keeping the e-bike inside whenever possible can help to reduce the possibility of theft. Some e-bikes have GPS systems that may help track the location of the stolen e-bike.</p>
<p class="p1">Insurance for e-bikes is becoming more common.<span class="Apple-converted-space"> </span>Coverage is available for damage or theft of the e-bike itself, medical payments for injuries to the rider, and liability for injury to or damage to property of others.<span class="Apple-converted-space"> </span>Coverage generally applies to owned e-bikes only, so care should be taken to procure coverage when renting an e-bike.</p>
<p class="p1">Even before the pandemic in 2020, sales and popularity of e-bikes were surging. Worldwide sales are estimated to reach 40 million in 2023, or about $20 billion in revenue. E-bike owners may be unaware that they need to purchase specialty insurance coverage.<span class="Apple-converted-space"> </span>Helping clients navigate the uninsured exposures and risks of e-bikes is another value-added service of the true insurance professional.</p>
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<title>Americans Deemed “Too Risky” to Acquire Life Insurance are Getting a Second Look</title>
<link>https://www.insurance-advocate.com/2021/09/24/americans-deemed-too-risky-to-acquire-life-insurance-are-getting-a-second-look/</link>
<dc:creator><![CDATA[Guest Author]]></dc:creator>
<pubDate>Fri, 24 Sep 2021 03:43:14 +0000</pubDate>
<category><![CDATA[2021]]></category>
<category><![CDATA[September 24]]></category>
<category><![CDATA[life insurance]]></category>
<guid isPermaLink="false">https://www.insurance-advocate.com/?p=12993</guid>
<description><![CDATA[<p>By Paul Ford Life insurance ownership across the nation has dropped by 9% in the last decade.(1) As of 2018, it was estimated that 27% of non-elderly adults in the United States had at least one pre-existing condition that would disqualify them from getting life insurance—that’s 53.8 million people.(2) According to NerdWallet, the average minimum […]</p>
The post <a href="https://www.insurance-advocate.com/2021/09/24/americans-deemed-too-risky-to-acquire-life-insurance-are-getting-a-second-look/">Americans Deemed “Too Risky” to Acquire Life Insurance are Getting a Second Look</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p class="p1"><strong>By P<span class="s1">aul Ford</span></strong></p>
<p class="p1">Life insurance ownership across the nation has dropped by 9% in the last decade.(1) As of 2018, it was estimated that 27% of non-elderly adults in the United States had at least one pre-existing condition that would disqualify them from getting life insurance—that’s 53.8 million people.(2) According to NerdWallet, the average minimum life insurance monthly premium is $26. Therefore, that’s up to $1.4 billion dollars insurance companies are losing by not taking a second look at these allegedly at-risk Americans.</p>
<p class="p1">“The decline in insurance coverage is partly due to how frustrating the process of obtaining coverage is. Large legacy companies are sticking with outdated insurance technology using actuarial tables that haven’t kept up with changing needs. Those obsolete ways of determining eligibility are part of why a large number of Americans with pre-existing conditions are rejected for life insurance,” says Traffk Co-founder and CEO Paul Ford. “We’ll actually run the data via medical records, pharmacy records and see how this person manages the condition. If we find it’s suppressed and/or very well managed and their vitals are just as normal as anyone else’s, we help them.”</p>
<p class="p1">Changes in life expectancy and internet usage means more people need life-insurance but may not be able to access it. Throughout the COVID-19 pandemic people have had to confront their need for mortality protection.(3) Despite the radical changes, society underwent to keep people safely at home, most legacy companies have been stubborn about digitization.</p>
<p class="p1">Actuarial tables being used by these older companies are at least 40 to 50 years old, and they aren’t keeping pace with the reality of at-risk insurance enrollment. These outdated methods don’t consider how insurance and public health has changed in that time. It’s a lose-lose situation, with a large swath of the population being unable to access life insurance and tying the hands of agents who otherwise could be making more sales.</p>
<p class="p1">Modern, smaller, and better-prepared start-ups are able to utilize InsurTech and digitization to take a new and more streamlined approach. They look at the large number of Americans being shut out of policies and are finding new ways to include them. There are at least 41 million consumers who say they need life insurance, but don’t have it. (4) But these new life insurance companies take it one step further: They put the tool in the hands of the insurance agent. This way, both parties benefit. The neglected consumer has access to life insurance and the agent has a new product to offer, increasing his or her sales opportunities.</p>
<p class="p1">Meanwhile, the old legacy companies are losing money and limiting their sales by automatically rejecting many people who want to obtain coverage. They just don’t understand that just because someone has a pre-existing condition, it doesn’t mean they don’t deserve the safety and security of life insurance. The COVID-19 pandemic will likely increase the number of Americans with a variety of pre-existing conditions. It’s possible that insurance companies will consider contracting coronavirus as a pre-existing condition itself. (5) Does this mean that more people will be denied a life insurance policy in the near future?</p>
<p class="p1">Another factor making it difficult to acquire life insurance is the process itself. Right now, getting a quote at a legacy life insurance company requires going through a multi-step interview process that is often redundant. Getting a policy requires an interview with an agent. Then oftentimes there’s a second interview with an underwriter who asks all the same questions the agent just did. That kind of redundancy is where a lot of sales are lost. Add to that, the medical examinations and the time it takes the company to decide and you’re looking at a process that is weeks long—and with COVID delays, now it takes many months. New companies reduce redundancy by digitizing the process, meaning more sales in less time because you are creating near-instant life insurance quotes and achieving a decision in less than an hour.</p>
<p class="p1">This system of determining someone’s risk based off their age, zip code, and pre-existing conditions isn’t working. People are being left out, and their efforts to manage their own illnesses are being ignored. It isn’t working for the legacy companies whose outdated methods are responsible for lost sales. Smaller products—like New Spectrum Life—are more nimble and ready to give consumers a chance at owning life insurance they couldn’t get before. Denying coverage can no longer be the norm.</p>
<p class="p1">“We think about insurance as being dynamic. The name of the game is to just get it in the hands of as many people as possible,” said Ford. “Just grow sales and awareness, help agents make more money, and then listen to their feedback to improve the product.”</p>
<p class="p1">
<p> </p>
<p class="p2">NOTES:</p>
<p class="p2">1. Newsroom; “2020 Insurance Barometer Study Reveals a Significant Decline in Life Insurance Ownership Over the Past Decade”; 02 June 2020; LIMRA; limra.com/en/newsroom/news-releases/2020/2020-insurance-barometer-study-reveals-a-significant-decline-in-life-insurance-ownership-over-the-past-decade/</p>
<p class="p2">2 Claxton, Gary; Cox, Cynthia; Damico, Anthony; Levitt, Larry, and Politz Karen; “Pre-Existing Condition Prevalence for Individuals and Families”; 04 October 2019; Kaiser Family Foundation; kff.org/health-reform/issue-brief/pre-existing-condition-prevalence-for-individuals-and-families</p>
<p class="p2">3. Bernard, Pierre-Ignace, Ellingrud, Kweilin, Godsall, Jonathan, Kotanko, Bernhard, and Reich, Andrew, “The future of life insurance: Reimagining the industry for the decade ahead” | 29 September 2020, McKinsey & Company, mckinsey.com/industries/financial-services/our-insights/the-future-of-life-insurance-reimagining-the-industry-for-the-decade-ahead#</p>
<p class="p2">4. <span class="Apple-converted-space"> </span>“Facts + Statistics: Life insurance” |Insurance Information Institute, iii.org/fact-statistic/facts-statistics-life-insurance</p>
<p class="p2">5. Schneider, Eric and Shah, Arnav, “Will the Pandemic Increase the Number of Americans with Preexisting Conditions?” | 8 October 2020, The Commonwealth Fund, commonwealthfund.org/blog/2020/pandemic-americans-preexisting-conditions</p>
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<title>Praedicat Launches Company Risk Score to Underwrite Liability Emerging Risk</title>
<link>https://www.insurance-advocate.com/2021/09/24/praedicat-launches-company-risk-score-to-underwrite-liability-emerging-risk/</link>
<dc:creator><![CDATA[Insurance Advocate]]></dc:creator>
<pubDate>Fri, 24 Sep 2021 02:35:59 +0000</pubDate>
<category><![CDATA[2021]]></category>
<category><![CDATA[September 24]]></category>
<category><![CDATA[company news]]></category>
<guid isPermaLink="false">https://www.insurance-advocate.com/?p=12990</guid>
<description><![CDATA[<p>Praedicat, the liability emerging risk analytics company, has launched a new Company Risk Score designed to vastly simplify the underwriting of complex emerging risks for liability insurance The Company Risk Score, available in Praedicat’s emerging risk software product CoMeta™, applies machine learning and artificial intelligence technologies to identify emerging risks in scientific literatures. Once new […]</p>
The post <a href="https://www.insurance-advocate.com/2021/09/24/praedicat-launches-company-risk-score-to-underwrite-liability-emerging-risk/">Praedicat Launches Company Risk Score to Underwrite Liability Emerging Risk</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<h3 class="p1"><span class="s1">Praedicat, the liability emerging risk analytics company, has launched a new Company Risk Score designed to vastly simplify the underwriting of complex emerging risks for liability insurance</span></h3>
<p class="p1">The Company Risk Score, available in Praedicat’s emerging risk software product CoMeta<img src="https://s.w.org/images/core/emoji/15.0.3/72x72/2122.png" alt="™" class="wp-smiley" style="height: 1em; max-height: 1em;" />, applies machine learning and artificial intelligence technologies to identify emerging risks in scientific literatures. Once new risks are identified, the literatures are tracked over time as they acquire the characteristics needed to be admitted as scientific evidence in litigation. Praedicat connects the commercial exposures associated with the risks to the business activities of companies, and then quantifies the probability of litigation for any company and any particular risk.</p>
<p class="p1">The Company Risk Score is designed for general liability, directors’ & offices’ (D&O), and products liability underwriting and risk management.<span class="Apple-converted-space"> </span>The risks covered include chemicals and plastics, products such as cell phones, environmental exposure such as diesel, climate risks from greenhouse gases, and new materials and technologies such as nanotech.<span class="Apple-converted-space"> </span>Ongoing mass litigation events like those centered on per- and polyfluoroalkyl substances (PFAS), agricultural and consumer herbicides, arsenic-laden baby food, and talcum powder are built into the scoring.<span class="Apple-converted-space"> </span>New risks are added regularly, and the scores will evolve as new risks emerge and as companies themselves develop and improve their business operations.<span class="Apple-converted-space"> </span>Users can drill down as far as is needed to understand the risk, from the overall score to the company’s at-risk business activities and all the way to the underlying science.</p>
<p class="p1">“This is a game-changer,” says David Loughran, Senior Vice President of Product and Co-Founder of Praedicat. “Praedicat’s Company Risk Score distills text data describing risk from tens of thousands of published scientific articles, connects the risks to over 100,000 companies, and then summarizes the connections for any company into one actionable score.<span class="Apple-converted-space"> </span>It’s never been more important to underwrite with forward-looking data, and now it’s never been easier.”</p>
<p class="p1">“Our clients rely on Praedicat’s emerging risk information to create analytical underwriting strategies and for risk selection,” says Julia Fuller, Senior Vice President, Account Management.<span class="Apple-converted-space"> </span>“They’ve asked for a simple way to benchmark risk and to triage underwriting resources. That’s what the new score is designed to deliver.”<span class="Apple-converted-space"> </span></p>
<p class="p1"><span class="s1">“With increasing scrutiny on the environmental impact of commercial operations, and with growing risk of mass litigation in the current social inflation environment, the Company Risk Score is a must-have input to liability underwriting,” says Loughran. “Though emerging risks are getting more complex, the Company Risk Score is making underwriting these risks a whole lot simpler.”</span></p>
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