Brace yourself for big insurance hikes says official…Aon reveals weather and climate risk initiative

Brace yourself for big insurance hikes says official

Compiled by Insurance24

HARARE,  An insurance industry leader believes that Obamacare premiums will see “substantial” increases next year.

Blue Cross Blue Shield Association vice-president Kris Haltmeyer said that the premium increases are a result of the GOP’s tax bill last December, which repealed Obamacare’s individual mandate. He also believes the increase was driven by legislators’ failure to pass a bill that would have shored up the market.

“With the repeal of the individual mandate and the failure of Congress to enact stabilization legislation, we are expecting premiums to go up substantially,” Haltmeyer told the media.

“Those two things have the most impact on the rate increases.”

The executive estimated that average premium increases across America will be in the “low teens,” but there might be exceptions. The Hill reported that some areas could see increases in the low single digits, while others could find their premiums rise by up to 70% or 80%.

Haltmeyer also believes that the Trump administration’s decision to expand short-term plans that do not meet Obamacare requirements is also driving insurance premium increases. This move, insurers warn, could lock healthy people out of the healthcare plan while raising premiums for those who remain.

Aon reveals weather and climate risk initiative

By Insurance24

HARARE, Aon has launched a new initiative aiming to address the weather and climate risks of its clients.

The firm’s new Aon Weather & Climate Risk Innovation network will help clients evaluate the potential impact of climate and/or weather risks on their operations, as well as develop comprehensive risk financing strategies to improve client resilience.

A release said that the Network “brings together sector knowledge, experience and expertise from across Aon.” This is supported by the firm’s advanced data, analytics, and partnerships with other innovative companies.

Aon added that its initiative was designed to address the issues raised by the G20’s Financial Stability Board recommendations on climate risk disclosure.

“Given that most businesses are exposed to weather volatility at different points in their operations, there is clearly a demand for tailored and effective climate and weather solutions,” said Aon Benfield global head of weather Kurt Cripps.

Cripps added that Aon is well-positioned to help its clients with their specific weather concerns.

“Our data and technology enables us to offer firms customized parametric solutions that provide protection for the climate volatility and weather events most likely to adversely impact their revenues and profitability,” he explained.

“There has been a shift in the landscape regarding how companies, investors, and regulators view weather and climate risk.

Collectively, this growing awareness has brought insurance tools, such as catastrophe modelling and hazard maps, and instruments, such as catastrophe bonds, to the fore,” commented Aon global head of resilience and sustainability Greg Lowe.

“In light of this, we have decided to strategically combine the capabilities that we have across our firm to address what has been identified as a critical change for businesses and society.”