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Nathan Golia
Nathan Golia
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5 Stories That Rocked The Insurance Technology Industry in 2012

Everyone knows what the No. 1 insurance story was this year, but there were a number of other events or trends that emerged in 2012 that will ripple through 2013 and beyond.
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1. Hurricane/Superstorm Sandy

Sure, the industry got a bit of a warmup on a major tropical storm hitting the Northeast with last year's Irene, but Sandy was the real deal, inundating Manhattan and the Jersey Shore, wiping out entire neighborhoods in the outer boroughs and in Long Island and Westchester, and hearkening back to the 1970s with gas shortages. Insurance companies — once they got their own houses in order — mobilized to adjust and evaluate claims, but even six weeks after the event consumers and regulators are expressing frustration with the slow pace of payments.

And it’s unlikely that insurers’ reputations will get any better after the cleanup is complete. Premiums are expected to rise up and down the eastern seaboard — especially since reinsurance costs will go up — and underwriting standards will be tougher in all coastal areas as well. The storm also has implications for the federal flood insurance program, which more people, surprised that they weren’t already covered for flooding, are sure to want in on.

[Looks Like the Models Were Right After All]

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio

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Melanie Rodier
Melanie Rodier,
User Rank: Apprentice
12/19/2012 | 5:28:11 PM
re: 5 Stories That Rocked The Insurance Technology Industry in 2012
The Progressive story is a fascinating lesson for companies across all industries. Social media has transformed the way firms need to work with, and respond to their clients. If they don't adapt quickly and intelligently, the consequences for their future can be devastating.
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