National Insurance Awareness Day on June 28 is meant as a reminder for individuals, families and businesses to review their insurance policies and take steps to prevent being underinsured.The review should include windstorm and a flood insurance coverages, according according to the industry’s American Property Casualty Insurance Association (APCIA).
Underinsurance also occurs when a property is insured for the market value, which is what it can be sold for, instead of the cost to repair or replace the structure, which can often be higher than market value.
“The issue of underinsurance can arise after a major catastrophe when building costs skyrocket and consumers find they do not have enough coverage to rebuild,” said Jeff Brewer, vice president of public affairs for APCIA. “A national shortage of construction materials, including lumber and computer chips used in smart appliances, could result in delays and higher costs, making recovery and rebuilding more challenging if widespread losses occur. ”
Brewer urged policyholders to create a home inventories to help make sure they are fully covered.
AmTrust Financial notes the day is a timely reminder for nonprofits in particular as July 1 is of the biggest days on the calendar year for nonprofit and human service businesses to renew their insurance policies.
The day might also be observed by spreading awareness of insurance as a career opportunity.
According to the U.S. Chamber of commerce, over the next 15 years, 50% of the current insurance workforce will retire, opening up more than 400,000 positions unfilled, in an industry where less than 25% of the workforce is under the age of 35.
“As the business of assessing risk, underwriting, and selling insurance becomes more dependent on technology, insurers must find ways to attract tech-savvy talent across all departments, not just for historically back-office I.T. roles,” the Chamber said in a workforce report.
The Tennessee Department of Commerce and Insurance (TDCI) used the day to highlight the agency’s consumer claims mediation efforts that have resulted in $4,027,014 in denied claims being overturned in favor of policyholders so far in 2021. Mediation is a process where TDCI insurance investigators intercede between insurance companies and policyholders to get wrongfully denied claims paid for policyholders. More than $10.2 million was returned in all of 2020.
National Insurance Awareness Day has been observed for several years. One of the earliest references appeared in an insurance agency Post in 2013.
-By: The Insurance Journal