Since our first report last year, Lemonade Insurance, a tech start-up that planned to offer peer-to-peer insurance products, has launched in four states, offering homeowners and renters insurance in New York, California, Illinois, and New Jersey. Lemonade’s cutting-edge use of technology and its alternative business model could prove disruptive to the insurance industry.
Ride and homesharing technologies like Uber and Airbnb are now ubiquitous. Slice, an on-demand insurance provider, seeks to fill the gap between the demands of these on-the-go services and traditional insurance contracts, which may not cover home rental or car sharing. Slice users can pick and choose the dates for which they receive coverage. So, for example, a homeowner that rents her home to Airbnb renters for two nights can obtain coverage solely for those two nights.
The Supreme Court of Wisconsin ruled yesterday that a construction company’s builder’s risk policy issued by Assurance Company of America (“Assurance”) applied to cover a fire loss at a home under construction, even though the prospective purchasers of the home were residing in the home at the time of the fire and had already recovered from their homeowner’s policy.
Last month, I wrote about State Farm’s “Dirty Little Secret.” After a non-jury trial, Florida’s Second Judicial Circuit (Leon County) declared that data submitted by State Farm Florida Insurance Company (“State Farm”) to Florida’s Office of Insurance Regulation (“OIR”), as required by Fla. Stat. 624.424(10), constituted a “trade secret” under Florida law. The Circuit Court released its written opinion on May 2, 2016.
On March 30, 2016, Florida’s Second Judicial Circuit (Leon County) declared that the personal and commercial residential policy data and report submitted by State Farm Florida Insurance Company (“State Farm”) to Florida’s Office of Insurance Regulation (“OIR”) constitute trade secrets under Florida law and are thus immune from public disclosure under Florida’s Public Records Act. Beginning in the first quarter of 2014, State Farm began filing its Quarterly and Supplemental Reporting System (“QUASR”) reports with “trade secret” designation. On May 15, 2014, State Farm filed a declaratory action in Florida’s Second Judicial Circuit in and for Leon County, requesting that the Court declare: (1) State Farm’s QUASR data and report are trade secretes under 812.081 and 688.022, Fla. Stat.; and (2) that State Farm’s QUASR data and report are exempt from public disclosure under Florida’s Public Records Act because they are trade secret.
Last week, Chubb announced that it would begin offering personal lines coverage in four states for costs related to cyberbullying. The coverage would reportedly insure costs for “psychiatric services, rest and recuperation expenses, lost salary, temporary relocation services, education expenses, professional public relations services, and cyber security consultants.”
The cyberbullying protection would cover expenses up to $60,000. Chubb will offer the coverage to its homeowners insurance policyholders who purchase a Family Protection policy, which Chubb says generally costs $70. According to Christie Alderman, a Vice President at Chubb, the new coverage “helps victims reclaim their lives” after cyberbullying incidents. In the near future, Chubb expects to offer the coverage to policyholders in states other than Indiana, Colorado, Wisconsin, and Illinois.