Author: Thomas Jackson

Licensed P&C agent for 23 years.

NICB: Top five states for hail claims

The National Insurance Crime Bureau (NICB) recently released a three-year analysis of insurance claims associated with hail storms in the United States.  According to the NICB review of claims data from ISO ClaimSearch®, there were a total of 2.9 million hail loss claims in the United States from 2016 through 2018.

The top five states for hail loss claims were:

  • Texas (811,381)
  • Colorado (395,025)
  • Nebraska (163,336)
  • Missouri (153,403)
  • Kansas (146,206).

The top five cities for hail loss claims during that period were:

  • San Antonio, Texas (75,187)
  • Colorado Springs, Colorado (67,920)
  • Omaha, Nebraska (52,803)
  • Denver, Colorado (48,357)
  • Plano, Texas (42,659).

Over the three years covered by the report, May had the highest monthly average for hail loss claims with 203,296. June was next with 178,881. April (164,232), March (153,716) and July (96,947) round out the top five.

Of the five policy types providing hail loss coverage, Personal Property-Homeowners was the most affected with 1,657,663 claims or 57 percent of the three-year total. It was followed by Personal Auto with 898, 500 claims and Personal Property – Farm with 149,215 claims.

“Hail damage fluctuates year-to-year, but what seems to be consistent is the number of unscrupulous contractors ready to swoop in promising a quick fix, which is why NICB encourages policyholders to use caution when selecting a contractor or other workers to help repair your property or replace your windshield following a storm,” said Brooke Kelley, NICB vice president of communications. “Always check first with your insurance company or agent before signing any documents presented by a contractor whom you did not request to appear. It’s why we say, “If you didn’t request it, reject it.”

The following tips are also helpful:

  • Get more than one estimate
  • Don’t be pushed into signing a contract right away
  • Get everything in writing
  • Require references and check them out
  • Ask to see the contractor’s driver’s license and write down the number and the license plate on his or her vehicle

The I.I.I. has facts & statistics about hail here and here.

Posted in Blog  • 

New York State Proposes Regulation to Combat Discriminatory Auto Insurance Rates

A proposed regulation could help protect New Yorkers from excessive and unfairly discriminatory auto insurance rates.

Following an investigation, the state Department of Financial Services regulation would prohibit insurers from using an individual’s occupational status or educational level as factors in setting rates, unless the insurer demonstrates to the satisfaction of the superintendent of financial services that the use of those factors does not result in rates that are unfairly discriminatory.

“This new protection cracks down on this unfair practice that soaks drivers for not having a college degree or a high-paying job,” Gov. Andrew Cuomo said in a statement. “These metrics are discriminatory, have no relationship to how good a driver you are and should not be used as an excuse to overcharge New Yorkers.”

The department’s  multiyear investigation revealed some insurers in New York use an individual’s education level and occupational status in establishing initial tier placement. As a result, classes of insureds have been placed in less favorably rated tiers, which may lead to higher premiums without sufficient support that an individual’s education level or occupation related to his or her driving ability.

The state did not indicate which auto insurers had used education or occupation to charge some drivers more.

The proposed regulation is subject to a 45-day public comment period. The regulation provides 180 days for insurers that had been using education level and occupational status in initial tier placement and tier movement to amend their multitier rating programs and tier movement.

Posted in Blog  •