Happy Cinco de Mayo! In today's Big I Buzz, we are discussing how COVID impacts insurance, the cause for most on-the-job vehicle accidents and the 2020 tourism decline in Wisconsin.

How COVID Impacts Insurance in Unforeseen Ways

The COVID-19 pandemic has impacted virtually all aspects of the insurance industry, most of the impacts will continue to alter the insurance landscape for years to come. In personal auto lines, claim frequency plummeted due to the lockdown, as many people who ventured out during the first six months of the pandemic were greeted with mostly abandoned roads and highways compared to pre-pandemic traffic. According to Insurance Information Institute estimates, property damage frequency was down more than 30%, while severity was up by almost 20%. 

While personal auto lines claim frequency plummeted, dog ownership spiked. Insurance Journal states that this a growth opportunity for the pet insurance market, but at the same time it could cause an increase in dog-related liability claims.

"The pandemic has also changed the way insurers do business, from underwriting to claims. While digitization was an industry priority before COVID, the pandemic accelerated the transition," according to Insurance Journal. If you're looking for tech guidance, head to Catalyit.com. Catalyit simplifies technology for insurance agencies. While you wait for Catalyit to launch, get on their email list to receive Catalyit's Top 10 Tech Tips in your inbox. You'll also be one of the first to know when their free assessment is available! 

Distracted Driving at Hand in Most On-the-Job Vehicle Accidents

Motus, a workforce platform and software provider reports the top three causes for accidents on the job.

1. 74% of vehicle accidents on the job were caused by distracted driving

2. 31% of on the job incidents were caused by speeding

3. 18% of on the job incidents were caused by driving under the influence

According to Property Casualty 360, "Motus noted in its report that while discouraging the use of mobile devices among workers should be an easy step in reducing risk, at times, upper management will argue that salespeople should be engaging clients on sales calls and teleconferences during long drives. This effectively "encourages more screen time," the report stated." Read more about the report here. 

Wisconsin's Tourism Industry Sees 30 Percent Spending Decline in 2020 Due to COVID-19

Wisconsin's tourism industry was hit particularly hard by COVID, causing a nearly 30% direct spending decline. In 2019, statewide tourism was about a $13.6 billion dollar industry, but in 2020, that number had dropped to about $4 billion dollars, according to the Wisconsin Department of Tourism. 

Despite the tourism decline in 2020, officials are optimistic about a rebound in 2021, reporting the first four months of the year are shaping up to be better than 2019. Wisconsin Public Radio reports, "National research shows 87 percent of Americans plan to travel in the next six months and plan to spend more money, Acting Tourism Secretary Anne Sayers said. Dane and Milwaukee counties, which rely heavily on tourists for sports, cultural events, conventions and business travel, were the hardest hit in the state. Direct spending was down last year 39 percent in Dane County and 42.5 percent in Milwaukee County, compared to 2019, according to the Department of Tourism."

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