Report on I.I.I. Activities. I.I.I. Communications Committee Meeting San Francisco, California Monday, November 14, 2016

Transcription

1 Report on I.I.I. Activities I.I.I. Communications Committee Meeting San Francisco, California Monday, November 14, 2016

2 Presentation Outline Moderator, Sean Kevelighan Update on I.I.I. Website Andréa Basora Industry Financials Dr. Steven Weisbart Update on CyberRisk Issue and Media Analysis Mike Barry Cost of Auto Insurance Jeanne Salvatore 2

3 Web & Social Analysis; Responsive Website Redesign Andréa C. Basora, Executive Vice President

4 Search Engine Rank October 2016 Google Search term = insurance: 3 Search term = insurance information: 2 Bing Search term = insurance: 3 Search term = insurance information: 2 Yahoo Search term = insurance: 5 Search term = insurance information: 3 Search Search term = insurance: 5 Search term = insurance information: 3 AOL Search term = insurance: 3 Search term = insurance information: 2 Source: Various search engines. 4

5 Summary Pageviews and Users October 2015 vs October 2016 Pageview %change: User % change: 41.4 New User %change: , , , ,000 Pageviews Users New Users 304, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 50,000 60,000 10,000 10/ / /2015 1/2016 2/2016 3/2016 4/2016 5/2016 6/2016 7/2016 8/2016 9/ /1/ A Google search on insurance brings iii.org up at #3 Source: Google Analytics. 5

6 Summary Pages/visit and Bounce Rate October 2015 vs October Pages per visit Bounce Rate (%) Pages per visit %change: -6.1 Bounce rate % change: / / /2015 1/2016 2/2016 3/2016 4/2016 5/2016 6/2016 7/2016 8/2016 9/ / Source: Google Analytics. 6

7 Top Referral Sources I.I.I. Website 2016 Rank Source Visits Notes URL 1 taboola 56,985 2 nytimes.com 6,934 The nytimes.com article that drove the most traffic (6,212 visits) was a personal finance article, How Should You Manage Your Money? And Keep It Short by Ron Lieber. nytimes.com/2016/01/09/your-money/how-shouldyou-manage-your-money-and-keep-it-short.html 3 m.facebook.com 6,629 4 learn.flvs.net 5,297 5 facebook.com 4,441 6 t.co 4,067 Twitter uses the t.co domain as part of a service to protect users from harmful activity and as a signal for surfacing relevant Tweets. 7 reviews.com 2,758 The reviews.com article that drove the most traffic (285 visits) was The Best Homeowners Insurance. reviews.com/homeowners-insurance 8 l.facebook.com 2,422 The l.facebook.com is a form of traffic that has been redirected through Facebook through what is known as a link shim. This traffic code provides the user with anonymity. 9 duckduckgo.com 2, propertycasualty360.com 2,059 The propertycasualy360.com article that drove the most traffic (640 visits) was 23 trends, challenges and opportunities in personal lines insurance. propertycasualty360.com/2016/02/17/23-trendschallenges-and-opportunities-in-personal Source: Google Analytics. 7

8 Total Followers Twitter & Facebook 4,000 3,000 Facebook Likes Twitter Followers 2,662 2,716 2,593 2,809 2,907 3,032 3,137 3,265 33,399 3,360 33,904 3,496 34,222 3,615 34,668 3,713 3,791 35,491 35,054 36,000 35,000 34,000 2,000 31,829 32,424 32,925 33,000 32,000 31,203 1,000 30,752 31,000 29,588 29,811 30, / / /2015 1/2016 2/2016 3/2016 4/2016 5/2016 6/2016 7/2016 8/2016 9/ / ,000 Source: Google Analytics. 8

9 Top Five Posts (Engagement) Facebook January 1 October 2016 Rank Title Reach Engaged Talking Reactions Comments Shares Engagement Rate 1 III's Janet Ruiz (@InsuringCAL) discusses driverless- and accident-avoiding tech with #KXTV Sacramento: (I.I.I. Youtube Media video interview of Janet Ruiz) 1, % 2 Do you have a family evacuation plan? Prepare effectively by using our five-step guide. #NatlPrep (I.I.I. article) % 3 #HurricaneSeason is underway. Use our free #app to create, manage, & share your family emergency preparedness plan! (Link to I.I.I. Know Your Plan app) % 4 #Wildfire happens anywhere conditions are dry and the weather is hot--#nj, for instance... (Link to Jersey Shore Hurricane News article on wildfire concerns) % 5 Learn to be #FloodSmart. Here are answers to 4 big questions about flood #insurance. (Yahoo article) % Notes: Social content relating to technology and disasters, particularly preparation, resonate strongly with followers. Source: Meltwater Engage; Engagement Rate is defined by Users who Liked, Commented, Shared, or Clicked on the Post divided by People who saw the post (Post Reach). 9

10 Highlights Twitter: January 1 October 2016 Source: Twitter Analytics. 10

11 Responsive Website Redesign Project Goals

12 Project Goals Create a design that engages users with a modern responsive layout that allows easy and intuitive access to the large volume of information on the site across all screen sizes. Deliver a best in class design that c a perfect showcase for the information and represents the Triple-i brand with a balance between friendliness and professionalism. Redesign the core functional components of the site to be engaging for the user and encourages a continued journey on the site. Make social integration of content and sharing action primary to the user experience. Improve SEO characteristics to ensure content continues to appear at the top of any related Google search. 12

13 Sitemap, Wireframes & Member Landing Page

14 Sitemap Top Level 14

15 15

16 Member Landing Page 16

17 Usability Testing

18 Usability Testing Key Findings Users often come to the site with a specific intent. To expedite their search, the new design should allow them to gain quick access to relevant information The new site organization reads well as a place to gain information about a broad spectrum of insurance, including facts to consider when choosing a plan and how to approach different aspects of insurance. Consumer participants expressed a desire to have a what next? action step built into the content. Users would be more likely to share content publicly on LinkedIn rather than Facebook or Twitter. Overall users understood the mission of the I.I.I. and that the purpose of the site is to educate 18

19 Next Steps and Questions

20 Next Steps and Questions Complete Design Templates Create Style Guide & Content Strategy Recommendations Nylon Technology will then take over to do the site development. Questions? 20

21 Cyberrisk: Threat And Opportunity PowerPoint Created Specifically for I.I.I. Members Insurance Information Institute 110 William Street New York, NY

22 Major Difficulties In Writing Cyber Coverage Complexity of risk Lack of historical data Risk accumulation Threats are becoming more sophisticated. Executives, boards, cyber experts, insurers and others struggle to keep up. New coverages lack historical data, making pricing difficult. Several insurers are developing common data requirements. Cyberattacks could be massive. A 'cyber hurricane' could cause thousands of claims. Some insurers worry that cyber is too big for private sector to handle alone. 22

23 Who Gets Attacked The Most? 2015 Data Breaches By Business Category, By Number of Breaches Medical And Healthcare Records Were More Than Half Of All Records Stolen Govt./Military 63 Banking/ Credit/Financial 71 9% 8% 7% Educational 58 40% Business 312 Banking/Credit/Financial 5.1 MM Business 16.2 MM Govt./ Military 19% 0.4% 9% 3% Educational 759,600 Medical/ Healthcare % 34.2 MM 68% Medical/ Healthcare MM Businesses are breached most frequently, but more medical records are exposed. Total may not equal 100% due to rounding. Source: Identity Theft Resource Center. 23

24 Cyber Incidents Are The No. 3 Global Business Risk Business interruption, supply chain risk Market developments Cyber incidents Natural catastrophes Changes in legislation and regulation Macroeconomic developments Loss of reputation or brand value* Fire, explosion Political, social upheaval, war Theft, fraud, corruption 11% 11% 16% 18% 22% 24% 24% 28% 34% 38% 0% 5% 10% 15% 20% 25% 30% 35% 40% Cyber incidents moved to No. 3 in the Allianz Risk Barometer Survey, up from No. 5 a year earlier. *From social media Source: Allianz Risk Barometer on Business Risks

25 Breach Costs Are Rising 2011 $ $ $ $ $7.0 $0 $1 $2 $3 $4 $5 $6 $7 $8 Millions (US$) The average breach in the U.S. cost $7.0 million in 2016.* *The 2016 study examines the costs incurred by 383 companies across 16 industries representing 12 countries, including 64 U.S. case studies. Total breach costs include: lost business resulting from diminished trust or confidence of customers; costs related to detection, escalation, and notification of the breach; and ex-post response activities, such as credit report monitoring. Source: Ponemon Institute. 25

26 Who Is Buying Cyber Coverage? Stand-alone Policies Grew By More Than 25 Percent Among Marsh Clients Services Retail/Wholesale Power and Utilities Manufacturing Hospitality and Gaming Health Care Financial Institutions Education Communications, Media and Tech All Industries 6% 13% 15% 30% 28% 28% 27% 37% 41% 63% 0% 10% 20% 30% 40% 50% 60% 70% Growth is fastest among manufacturers and communications companies. Source: Benchmarking Trends: As Cyber Concerns Broaden, Insurance Purchases Rise, Marsh Risk Management Research Briefing, March

27 I.I.I. Media Index January October, 2016

28 I.I.I. Media Index, P/C, First Ten Months 2015 vs. First Ten Months* Percent Increase/Decrease from Previous Year Wildfires Hurricanes Drones and Insurance Driverless Cars Pay-As-You Go/Telematics Price Optimization Solvency Cyber Insurance Winter Storms & Insurance Aviation Tort Sharing Economy Auto Affordability & CFA Gun Liability Credit Scoring Homeowners Flood Insurance Earthquakes Workers Comp Market Conditions Auto Tornadoes Systemic Risk Insurance Fraud Terrorism Climate Change Riots -52% -2% -7% -17% 96% 96% 92% 89% 87% 87% 83% 80% 79% 77% 60% 52% 42% 36% 33% 32% 20% 11% 1% 143% 195% 176% 231% -100% 100% 300% *Through October Based on a search of Meltwater News 28

29 Top Issues, P/C, First Ten Months 2015 vs. First Ten Months* Top Issues % Increase/Decrease 1 Auto 30,145 36,078 20% 2 Solvency 16,770 32,137 92% 3 Homeowners 14,958 22,697 52% 4 Hurricanes 7,699 22, % 5 Cyber Insurance 10,374 19,648 89% 6 Driverless Cars 8,061 19, % 7 Wildfires 4,270 14, % 8 Market Conditions 10,715 14,108 32% 9 Pay-As-You Go/Telematics 5,945 11,662 96% 10 Tort 6,193 11,306 83% 11 Terrorism 10,912 10,193-7% 12 Insurance Fraud 10,049 9,873-2% 13 Earthquakes 6,873 9,372 36% 14 Flood Insurance 4,729 6,717 42% 15 Workers Comp 3,510 4,665 33% 16 Tornadoes 4,174 4,617 11% 17 Climate Change 5,002 4,151-17% 18 Sharing Economy 1,709 3,069 80% 19 Drones and Insurance 790 2, % 20 Price Optimization 698 1,367 96% 21 Winter Storms & Insurance 693 1,299 87% 22 Auto Affordability & CFA 714 1,277 79% 23 Aviation % 24 Gun Liability % 25 Riots % 26 Systemic Risk % 27 Credit Scoring % TOTAL 166, ,348 58% *Through October Based on a search of Meltwater News 29

30 Top Issues, L/H, First Ten Months 2015 vs. First Ten Months* Top Issues % Increase/ Decrease 1 Annuities 106, ,967 69% 2 Health Insurance 145, ,760 6% 3 Life Insurance 56, ,144 99% 4 Solvency 16,770 32,137 92% 5 Retirement 10,064 21, % 6 Long Term Care Insurance 1,230 1,247 1% 7 Unclaimed Benefits % Total 337, ,833 50% *Through October Based on a search of Meltwater News 30

31 Social Media Engagement in 2016 Top Trends in Conversation Hurricane Hermine & Matthew Unclaimed Life Policies California Wildfires October 21 Cyberattack Growth of Twitter Followers December 2015: 30.6K June 2016: 33.5K October 2016: 35.5K 31

32 Discussion on Media Index and 2017 Policy Issues How will a GOP White House, Congress impact P/C insurers? Could the U.S. Department of Labor drop the fiduciary rule? How will FEMA NFIP reauthorization debate unfold? Other? 32

33 Cost of Auto Insurance: Strategic Plan on Personal Auto Insurance Costs The Problem Key Messages Goals Key Tactics Discussion

34 Personal Automobile Insurance More Accidents, Larger Claims Drive Costs Higher Insurance Information Institute 110 William Street New York, NY

35 The Big Problem: Insurance Costs Are Rising Auto Insurance Increase in Loss Costs, 2014:Q1 2016:Q1 Bodily Injury 9.6% Property Damage 14.7% Personal Injury Protection 18.4% Collision 11.1% Comprehensive 11.0% From early 2014 to early 2016, the cost of accidents has risen dramatically. By contrast, consumer prices overall rose 1.7 percent during 2014 and Source: Fast Track Monitoring System. 35

36 Annual Change More Accidents Collision Claims: Frequency Trending Higher in % 4% 4.4% 3% 2.5% 2.4% 2% 1% 0.9% 0.8% 0% -1% -0.5% -2% -3% -1.8% -2.4% -1.4% -1.8% -4% -3.6% The accident rate the number of claims per hundred vehicles is rising. Source: Fast Track Monitoring System, Insurance Information Institute. 36

37 Why More Accidents? More Driving More Miles Driven, More Collisions, Billions of Miles Driven in Prior Year 3,150 3,100 3,050 3,000 2,950 2,900 Miles Driven Overall Collision Claims per 100 Insured Vehicle Years 6.0 Collision Claim Frequency , :Q4 07:Q4 08:Q4 09:Q4 10:Q4 11:Q4 12:Q4 13:Q4 14:Q4 15:Q4 People are driving more. The more miles people drive, the more likely they are to get in an accident. Source: Federal Highway Administration, Rolling Four-Qtr Avg. Frequency from Fast Track Monitoring System, Insurance Institute for Highway Safety, Insurance Information Institute. 37

38 Why More Accidents? More Jobs More People Working and Driving => More Collisions, Number Employed, Millions Number Employed Overall Collision Claims per 100 Insured Vehicle Years 6.0 Collision Claim Frequency :Q1 07:Q1 08:Q1 09:Q1 10:Q1 11:Q1 12:Q1 13:Q1 14:Q1 15:Q1 16:Q1 People are driving more because the economy is improving. Source: Seasonally adjusted employed from Bureau of Labor Statistics, rolling four-quarter average frequency from Fast Track Monitoring System, Insurance Information Institute. 38

39 Annual Change Accidents Are Getting More Expensive Collision Claims: Severity Trending Higher in % 5.7% 5% 4% 3% 3.9% 3.1% 2.8% 4.1% 2% 1% 0% -1% 0.1% 0.5% -0.1% 1.3% 1.3% -2% -3% -2.3% The average claim size has risen steadily since Source: Fast Track Monitoring System, Insurance Information Institute. 39

40 Why Are Accidents More Expensive? Repair Costs Cost of Body Work Is Rising Faster Than Costs Overall Body work Overall inflation The cost of repairing autos is rising faster than overall inflation. Indexed so 2004 = 100. Source: Insurance Information Institute, Bureau of Labor Statistics. 40

41 Severity: Driving Fatalities Are Rising Annual Change in Motor Vehicle Deaths 10% 8% 6% 4% 2% 0% -2% -4% Seatbelt Use Rose to 62% of Drivers, From 49% in % 1.5% 2.0% 0.7% -0.4% 0.1% -2.5% 2.2% 1.0% 3.6% -1.4% 0.4% 0.9% Big Drop-off Due to the Great Recession -0.1% -3.0% -2.4% -0.1% 3.1% On Track for 18% Increase in Two Years -2.9% 0.1% 9.0% 8.0% -6% -8% -5.9% -7.0% -10% -9.5% -9.0% Driving has been getting safer for decades, but recent trend is discouraging 38,300 deaths in Source: National Safety Council, Insurance Information Institute. 41

42 Cost of Auto Insurance Strategic Plan Goals 1. Communicate to both policymakers and drivers why auto insurance costs are increasing. 2. Explain that auto rates are determined by a number of factors. 3. Provide I.I.I. member company communicators/government affairs staff, advocacy trades and state trades with the economic reasons that auto insurance costs are on the rise. 4. Empower drivers with ways they can reduce auto insurance costs and provide information on how they can shop for auto insurance and get the best auto insurance policy for their needs at the most competitive cost. 42

43 I.I.I. Strategic Plan on Auto Insurance Key Messages Auto insurance costs are rising. More people are working, which means more people are driving for both work and pleasure. This means more collisions. The severity of those collisions is increasing with more fatalities and serious injuries. Speed limits are increasing in many states. Quite simply, speed kills. The costs associated with these accidents is also increasing with more people buying expensive cars that are more expensive to both replace and repair. Medical costs and litigation costs are also on the rise. 43

44 I.I.I. Strategy on Auto Insurance Key Tactics When talking about the issue we are careful to not use the word rates as we do not what to be accused of predicting where rates are headed. Instead, we will be very disciplined in using the word, costs. So, we plan to say, the cost of auto insurance are on the rise. The advocacy trades agree with this way of framing the issue and since the advocacy trades and government relations staff at I.I.I. member companies are on the front lines of this issue, all messaging is carefully vetted by those most involved. Assist individual I.I.I. member companies in their communications strategies as needed. 44

45 I.I.I. Produced a White Paper on Personal Auto Insurance Distributed Broadly Within the Industry and to Key Media Outlets Larger Claims Drive Costs Higher News Release Widely Picked up 45

46 Key Tactic Infographic and Consumer Articles What Determines the Cost of Auto Insurance Useful Tactics When Confronting CFA and Others 46

47 Strategic Plan on Auto Insurance Work with the Advocacy Trades In Key States Florida Georgia Maryland* Michigan Nevada* South Carolina Washington, D.C.* I.I.I. will make its chief actuary, economist, president and other subject matter experts available to speak to policymakers, editorial boards and other opinion makers in key states. *These states identified by PCI on 11/11/ 2016 as of concern. 47

48 I.I.I. Strategic Plan on Personal Auto Insurance Costs Provide Consumers with Actionable Steps Create a consumer-facing campaign on how to shop and save money on auto insurance for both traditional and social media. This will include reaching out to national consumer media such as the morning talk shows, as well as bloggers and print reporters. The goal is to empower consumers so that they know they have options if they find out the cost of their insurance is going up and to make the point that auto insurance is a highly competitive marketplace where drivers have many choices. Part of this campaign will include a Satellite Media Tour to reach targeted media in key states along with the broadest number of social and traditional news outlets 48

49 I.I.I. Strategic Plan on Personal Auto Insurance Costs Provide Actionable Steps Monitor social media to learn more about the tone of the conversation and concerns about rising auto costs. Use this information to refine messaging on the issue. Promote I.I.I. consumer article, Why did my auto insurance cost go up when I did not file a claim. Promote I.I.I. consumer resources (articles, videos, infographics) on how to shop for and save money on auto insurance to consumer organizations. 49

50 Tactics Completed Published white paper, Rising Auto Claims Costs Put Upward Pressure On Price Of Insurance Broadly distributed the paper within the industry, including the state insurance trade associations and through social channels. Briefed national news outlets such as the Wall Street Journal, CNBC-TV, Atlanta Journal Constitution and others about the key reasons costs are increasing. A number of news outlets also filed stories including Business Insurance, CNBC.com, and MarketWatch. Created PowerPoint slides based on the white paper for use by I.I.I. member companies. 50

51 Tactics Completed Created an infographic (to accompany a consumer article) explaining how rates are calculated. It was used to defend the industry when traditional underwriting criteria came under attack from the Consumer Federation of America (CFA) and others. I.I.I. spokespeople have given presentations: Auto Insurance Trends, to the Insurance Council of New Jersey (October 14); and Personal and Commercial Auto Insurance Trends to policymakers in Georgia. I.I.I. subject matter experts appeared on NBC s Today Show (June 20) and NBC s Nightly News (July 1) to discuss auto insurance cost drivers. 51

52 Discussion Input on Next Steps

53 Financial Snapshot: The Property/Casualty Insurance Industry November 14, 2016 Steven Weisbart, Ph.D., CLU, Senior Vice President and Chief Economist Insurance Information Institute 110 William Street New York, NY Office: Cell: