The new year is just around the corner! From driverless cars to catastrophic weather changes, the last several years have introduced a barrage of new challenges that have warped the traditional approach to insurance. Here are just a few new insurance challenges and how the industry is responding:
- Driverless Cars – Most of the “autonomous” cars on the road are not 100% automated. They are still partially under the drivers’ control. Most collision cases have assigned responsibility to the human driver. These cars are quickly evolving into a complete independence vehicles and insurance policies will most likely shift more liability onto the manufacturer.
- Marijuana Business – How is a business owner able to obtain insurance for a business that is still illegal under federal law?
Like all businesses, Cannabis Related Businesses (CRBs) have risks involving product liability, general liability and theft. In late 2017, California Insurance Commissioner Dave Jones approved the first commercial insurer to write a cannabis business insurance policy.More companies are following this with other CRBs as the demand keeps growing.
- Catastrophic Weather Changes – Will increasingly severe weather and natural disasters affect insurance rates?
Natural disasters have doubled in number over the last 20 years. 2017 was the costliest year to date with over $300 billion in damages in the United States alone! Typically, risk is calculated based on past events. The NAIC is in the process of analyzing climate change and modeling projected loss potential which may alter the way future risk and premiums are figured.
American Tri-Star Insurance Services wishes you a happy and profitable New Year! As you consider your own modernization plans for 2019, give one of our agents a call at 619-474-3900 to clarify these new trends.