4 Avoidable Insurance Claims & 4 Solutions to Prevent Them
The insurance industry is facing its most difficult period in almost 40 years. Major property damage caused by fires, hurricanes and tornadoes are just a few of the issues the industry is currently dealing with. The same rampant inflation affecting you and me also affects the cost of rebuilding and the repair of vehicles. Perhaps most frightening are the nuclear claim verdicts being handed out, as the general public believes that the insurance industry has unlimited resources to pay these inflated claims.
The insurance industry’s struggle to remain solvent in these turbulent times is not only affected by what goes on in the United States but also by what is happening on a global scale. In January 2023, it was reported that property reinsurance worldwide increased by up to 50% for the coming year. This will force property premiums to rise in 2023. In addition, some insurance companies reported substantial losses in the last two quarters of 2022.
Thirty years ago, when PT Risk Management started insuring propane marketers, there were only a few insurance carriers that were willing to write propane accounts.
Over the years, there have been many insurance companies that have started to write propane insurance and have not been able to afford the losses and withdrew. This article lists a few examples of “why.”
A propane company filled a cylinder, which a customer placed in a camper. The camper exploded after the owner drilled out the heating orifices to make the flame hotter. The insurance company’s claims manager maintained that their customer — the marketer — did nothing wrong when filling the cylinder. They turned down an offer from the plaintiff for the policy limit of $1 million. The jury awarded $50 million. That insurance carrier was forced to stop writing propane. Read More