Cybercrime rates are the highest they’ve ever been, and experts don’t expect that to change anytime soon. Companies are expected to not only try and reduce the frequency of cybercrime in their organization but prepare to respond to cybercrime events that are inevitable. The 2020 Internet Crime Report revealed that in the past 5 years there has been an average of 440,000 complaints and that the number grew by 330,000 in 2020. Those 5 years combined have resulted in a total loss of $13.3 Billion.
While most people think of motor accidents as tragic and financially threatening, a growing population of criminals look to them as a chance to commit insurance fraud and receive financial gain. Years ago the occurrence of staged accidents was a small threat that received little attention-but times have changed. In a recent report on the trucking industry, experts warn that insurance fraud is a serious and prevalent threat to the trucking industry. Staged accidents can involve sophisticated tactics that may be hard to recognize, especially if an involved individual is under the distress of a recent accident. Though people may assume staged events are one-off events, some criminal groups will plan and execute up to multiple accidents in a short period of time.
The past decade has exponentially increased the world's radar on cybersecurity threats and vulnerabilities. These years have shifted society into a primarily digital where business, social, and financial matters are typically handled through some form of an online platform. In the past two years alone, due to the pandemic, the few areas of life that remained physical are primarily digital now as well. A report by Purplesec for 2021 claimed that cybercrime has increased 600% since the start of the pandemic. While insurance agencies and those prone to threats have had a keen awareness of the rising risk, the government is also stepping up and claiming some responsibility in providing protection to the general public.
The world has faced a series of unexpected crises and challenges since early 2020. From the COVID-19 pandemic to political outrage, and the looming potential of a stock market crash, times are certainly challenging. Among those challenges is the climate crisis. This year alone we’ve seen bizarre and deadly weather patterns, ranging from 3-state wide tornadoes to massive wildfires. Unfortunately, these occurrences have caused home losses and severe home damage. With the climate crisis expected to continue, and potentially worsen, now is a crucial time to purchase or update your homeowner’s insurance.
When looking to future insights for any market, part of the process is analyzing the wins, losses, pain points, and missed marks of the last year. A standard year may take into consideration aspects like claim frequency, claim costs, revenues, premiums, and so on. But as with most things these days, it’s no longer a “normal” year. While these details will be taken into account for 2022, the changes in these details will differ from those of a normal year. The effects of COVID-19 have been compared to the great depression, SARS, and the financial crisis of 2008 all wrapped into one. In other words- it’s been colossal. For worker’s compensation, that means new guidelines for compliance, new coverage, and the need to be highly adaptable.
Insurance premiums, in general, are experiencing an increase in rates due to the backlash of the pandemic. Though the industry experienced downsizing and some employment loss during the initial stages of the pandemic, the trucking industry has recovered faster and continues to be one of the few sectors to experience minimal long-term business fallout from COVID-19. If anything, trucking has experienced the opposite. The industry has been a driving force in empowering the U.S to adapt to these times with deliveries of vaccines, medical supplies, and consumer goods. So why then are we seeing an increase in premiums for trucking insurance and even congressional mandates?
COVID-19 has impacted healthcare in a way we haven’t seen before. Aside from the obvious increase in inpatient visits and emergency care, it has also shifted how we receive care, who we receive care from, and the overall cost to be treated. The pandemic is likely far from over, and we’re continuing to see industry changes resulting from the past two years. 2022 prediction reports confirm that we’re entering a new era of healthcare, and providers and patients should be prepared for an increase in cost and spending.
The Federal Motor Carrier Act of 1980 placed a number of requirements on interstate truckers at the same time it led to widespread deregulation of the industry. One of these requirements involved proof of financial responsibility. To ensure the safety of the public against damage caused by motor carriers who may not have the liquidity to pay resulting claims, the law requires that motor carriers be able to demonstrate the ability to pay any claims up to a statutory minimum.
Is Cyber Insurance Worth the Investment?
Cyber-attacks have become a top threat to businesses both big and small in the last decade. Social engineering schemes, malware, and ransomware have all seen a significant uptick, especially since the start of the pandemic. According to the Identity Theft Resource Center, 2021 has already hit a record high for cyberattacks, exceeding the total amount in 2020 by more than 17%. So, with cyber threats (and the cost to mitigate them) skyrocketing, its time to consider investing in Cyber Insurance to protect your business.
Wednesday, September 29th marked the first Coffee Connection event with ECBM Insurance Brokers & Consultants and the Delaware County Chamber of Commerce. Coffee Connection is meant to be a local networking opportunity for businesses to learn more about potential solutions and connect with other business leaders in the area. Be sure to stay tuned to hear about more upcoming Coffee Connections!