Cannabis is a multi-billion-dollar market that continues to be underserved by the insurance industry. While the majority of states and the District of Columbia have legalized cannabis in one form or another, less than 30 insurers are participating in the marketplace nationwide. As the number of states moving toward legalization rises, the number of cannabis related businesses (CRBs) multiplies, and public acceptance of legalization increases, it is imperative that the insurance industry understand and normalize cannabis coverage.  

Research from NASA points to several factors that support climate change from rising sea levels to warming oceans and glacial retreats. The effects of climate change have a significant impact on the insurance industry, which generates considerable premium, expense, and losses based on insured catastrophes. As these events become more unpredictable and severe, the industry must adapt.

AAIS continues to evolve its offerings in the Inland Marine (IM) space, where it has long been an industry leader. Our most recent product update includes a Defective Design and Construction Coverage endorsement to go with a Builders’ Risk policy. This enhancement is a result of input and engagement by Members who were looking for something similar to the LEG 3 (London Engineering Group) endorsement. Its intent is to narrow a policy’s automatic exclusion, providing broader coverage for materials, workmanship, and faulty design during construction, making it easier for insureds to be made whole. The Defective Design and Construction Coverage endorsement is available for large and mid-size construction projects when traditionally, it was available only for large projects.

In July 2020, consulting firm McKinsey & Company put out a report detailing the talent transformation within the insurance industry. The topline message: Talent strategy is as important as business strategy.

A Fast-Moving Auto Industry Presents Challenges and Opportunities

The automotive industry transformation continues to have significant repercussions in the insurance industry. With improving sophistication in car technology, telematics, and consumer behaviors, insurance carriers face new and unprecedented challenges spanning the entire lifecycle of the policy from research to claims. Still, personal and commercial auto insurance remain the industry bellwether as the largest product lines accounting for more than $300 billion in annual premiums.

A distributed workforce, also known as telecommuting or remote work, occurs when a business has employees that work in different locations (e.g., their home, satellite offices, etc.). This is an idea that AAIS has embraced successfully for nine years before the COVID-19 pandemic. The long-held belief that collaboration can only happen in person in a single location is no longer the case.

While the U.S. economy slowly returns to normal following the COVID-19 pandemic, the insurance industry continues to grapple with business interruption claims, court battles and the future of pandemic-related insurance. In Part II of our two-part Advisory Report, Nicole Milos, Assistant Counsel at AAIS, explains the systemic risk global pandemics pose to the insurance industry and how we’re leveraging data gathered during the pandemic to meet customer demand for future pandemic-type coverage.

While the U.S. economy slowly returns to normal following the COVID-19 pandemic, the insurance industry continues to grapple with business interruption claims, court battles and the future of pandemic-related insurance. In Part I of a two-part Advisory Report, Nicole Milos, Assistant Counsel at AAIS, explains why BI policies were never meant to cover losses from pandemics.

When COVID-19 hit, not only did it wreak havoc on the job market, but on internship programs as well. Thousands of programs were terminated, as organizations scrambled to adjust to the pandemic and remote workforce. AAIS was one organization that kept its internship programs humming along remotely. Its commitment to continuing its quality internship program earned AAIS recognition when it was named to the Rising Insurance Star Executives (RISE) list of Elite 50 Internships.

In an AAIS Webinar, FLAMES: The Modern Fire Protection Evaluation Model, AAIS Vice President Phil LeGrone, and AAIS Senior Risk Strategy Lead Matt Hinds-Aldrich, PhD, outlined the new fire model, FLAMES, and the advantages it offers over traditional models for underwriters assessing and managing non-cat fire risk.