December 2, 2021
Rising coverage costs
The cost of insurance for low-income households is on the rise, causing affordability issues
What: The broad premise of insurance is that the premiums of the many pay for the claims of the few. But some experts worry that closer risk-profiling, helped by the growing quantity of data at insurers’ fingertips, will render certain groups of people and areas increasingly uninsurable.
Why it matters: Although the data may indicate a difference in risk, adjusting ratings based on that data could increase the level of scrutiny of whether that differentiation is acceptable.
Georgia court of appeals decision could spell trouble for insurers in high-crime areas
What: A recent case in Georgia upheld a $43 million premises liability verdict against CVS Pharmacy, claiming the company failed to take appropriate security measures to prevent a shooting that took place in 2012. This increases the count of eight-figure liability suits in Georgia to three, and could spell difficult times nationwide for businesses and insurers in high-crime areas.
Why it matters: Verdicts like this could decrease certain companies’ ability to get coverage, or increase the amount of liability coverage needed in high-crime areas. We could see new products emerge to address the issue, specifically focused on high-crime coverage.
Man pulls brass knuckles when asked to wear a mask
What: An Ohio man was arrested at Walmart after pulling out brass knuckles when asked to wear a mask. Since Covid began, low-wage workers have the added responsibility of enforcing mask policies, and have been asked to take on the added risk associated with that responsibility.
Why it matters: The well-documented mental health crisis initiated by the pandemic is affecting workplaces everywhere. Entering the holiday shopping season, the resulting growth in tension and violence is a major peril that insurers and policyholders will need to address.
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