Navigating the Insurance Landscape Amidst the COVID-19 Pandemic

Auto Insurance Rebates Amidst Reduced Driving

As the COVID-19 pandemic led to a significant reduction in driving, several auto insurers, including Liberty Mutual, American Family, and Allstate, began offering rebates to their customers. According to a report by the Insurance Information Institute (Triple-I), the average rebate per vehicle is approximately $150. This move reflects the industry's recognition of the decreased risk associated with reduced traffic volumes.

Business Interruption Coverage Under Scrutiny

The pandemic has sparked debates over business interruption insurance policies, with many businesses seeking coverage for losses incurred due to COVID-19. The Financial Times reported that the controversy revolves around the extent to which companies can claim from these policies. Tom Johansmeyer from PCS highlighted the 'silent pandemic risk,' emphasizing the need for clear policy language to address such unprecedented events.

Cybersecurity Risks Amplified by Remote Work

The shift to remote work has amplified cybersecurity risks, prompting organizations like the National Insurance Crime Bureau (NICB) and the Cybercrime Support Network (CSN) to educate the public about COVID-19-related scams. A recent study by Cybersecurity Ventures estimates that cybercrime will cost the world $10.5 trillion annually by 2025, up from $3 trillion in 2015. This underscores the critical importance of robust cybersecurity measures in the current digital landscape.