The insurance industry and the public sector play pivotal roles in mitigating risks for customers and citizens alike. However, as the costs to insure property and long-term care continue to rise in the United States, more states are finding themselves becoming the insurers of last resort.
In this analysis of the insurance news landscape in the U.S., we delve into the growing areas of risk that states are taking on. Recent events, such as Hurricane Ian, have brought to light the importance of the public sector’s involvement in covering property risks, particularly in the aftermath of natural disasters like wind and flood damage. As we gear up for the Atlantic Hurricane Season of 2023, experts are making predictions on potential outcomes and how insurers can assist customers in understanding their risks and coverage options.
Beyond property risks, states are also stepping up their involvement in other areas of risk management. Washington recently launched its public long-term care program, with Missouri and California likely to follow suit. This shift has significant implications for customers and the traditional long-term care products offered by the industry.
Insurers are increasingly relying on data to gain a better understanding of the risks faced by their customers. However, there are discussions at the state level about limiting the types of data carriers can use for underwriting and pricing risk, as well as the integration of AI capabilities into their operations. This raises questions about the potential impact of such limitations on the industry’s workforce and decision-making processes.
As the landscape of insurance and risk management continues to evolve, customers and constituents alike can benefit from staying informed about the changing dynamics and opportunities within the industry. By understanding the roles of both the public sector and private insurers, individuals can make more informed decisions about their coverage and prepare for any potential risks that may arise. The collaboration between insurers, states, and customers is essential in navigating the complexities of today’s insurance market and ensuring financial stability for all parties involved.
