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Identify Theft Report

February 4, 2018 By Anna Brantley

Courtesy of iii.org

The scope of identity theft

The 2017 Identity Fraud Study, released by Javelin Strategy & Research, found that $16 billion was stolen from 15.4 million U.S. consumers in 2016, compared with $15.3 billion and 13.1 million victims a year earlier. In the past six years identity thieves have stolen over $107 billion. Following the introduction of microchip equipped credit cards in 2015 in the United States, which make the cards difficult to counterfeit, criminals focused on new account fraud. New account fraud occurs when a thief opens a credit card or other financial account using a victim’s name and other stolen personal information.

Identity theft and fraud complaints

The Consumer Sentinel Network, maintained by the Federal Trade Commission (FTC), tracks consumer fraud and identity theft complaints that have been filed with federal, state and local law enforcement agencies and private organizations. Of the 3.1 million complaints received in 2016, 1.3 million were fraud-related, costing consumers over $744 million. The median amount consumers paid in these cases was $450. Within the fraud category, debt collection complaints were the most reported and ranked first among all 30 types of complaints identified by the FTC. They accounted for 28 percent of all the complaints reported to the FTC and 66 percent of all fraud complaints. In 2016 thirteen percent of all complaints were related to identity theft. Identity theft complaints were the third most reported to the FTC and had increased by more than 47 percent from 2013 to 2015 but fell about 19 percent from 2015 to 2016.

Identity Theft And Fraud Complaints, 2013-2016 (1)

Cybercrime

As businesses increasingly depend on electronic data and computer networks to conduct their daily operations, growing pools of personal and financial information are being transferred and stored online. This can leave individuals exposed to privacy violations, and financial institutions and other businesses exposed to potentially enormous liability if and when a breach in data security occurs. Interest in cyber insurance and risk continues to grow as a result of high-profile data breaches and awareness of the almost endless range of exposure businesses face. A 2016 data leak, called the Panama Papers in the media, exposed millions of documents from the electronic files of Panamanian law firm Mossack Fonseka. In 2015, two health insurers, Anthem and Premera Blue Cross, were breached, exposing the data of 79 million and 11 million customers, respectively. The U.S. government has also been the target of hackers. Recent breaches at the Federal Deposit Insurance Corp. and the Internal Revenue Service follow multiple breaches in May 2015 of the Office of Personnel Management and the Department of the Interior where the records of 22 million current and former U.S. government employees were compromised. Cyberattacks and breaches have grown in frequency, and losses are on the rise. Breaches hit a new record in 2016, soaring to 1,093, up from 780 on 2015, but the number of records exposed fell to about 37 million from 169 million in 2015. The majority of the data breaches in 2016 affected the business sector, with 494 breaches or 45.2 percent of the total number of breaches. Medical/healthcare organizations were affected by 377 breaches (34.5 percent of total breaches) while the education sector sustained 98 breaches (9.0 percent of all breaches) and government/military breaches totaled 72 (6.6 percent), according to the Identity Theft Resource Center. The Center says there have been 1,339 breaches in 2017 so far (as of December 27), surpassing the 2016 record of 1,093 breaches. There were 174 million records exposed so far in 2017. The business sector accounted for 51 percent of the 2017 breaches and 91 percent of records exposed. These figures do not include the many attacks that go unreported. In addition, many attacks go undetected. In 2014 McAfee and the Center for Strategic and International Studies (CSIS) estimated annual global losses from cybercrime fall between $375 billion and $575 billion. The costs of cybercrime are growing. An annual study of U.S. companies by the Ponemon Institute cites estimated average costs at $15 million in 2015, up 21 percent from $12.7 million in 2014. These costs ranged among the 58 organizations surveyed from a low of $1.9 million to a high of $65 million each year per company. Cyber insurance evolved as a product in the United States in the mid- to late-1990s as insurers have had to expand coverage for a risk that is rapidly shifting in scope and nature. More than 60 carriers offer stand-alone policies in a market encompassing $2.75 billion in gross written premiums in 2015. By mid-2016 gross premiums written was estimated at $3.25 billion.

Are You at Risk for Cyberattack

December 3, 2017 By Anna Brantley

Courtesy of iii.org More than half of U.S. small- and medium-sized businesses (SMBs) experienced a cyberattack within the past year, yet only 14 percent of businesses felt prepared and protected, according to a recent white paper from the Insurance Information Institute (I.I.I.). The white paper, Protecting Against #Cyberfail: Small Business and Cyber Insurance, examines how insurers are addressing the threat cyberattacks and data breaches pose to SMBs through a combination of innovative insurance products, risk management techniques and employee training. “Insurers foresee substantial growth coming from the SMB segment, as these companies become aware of the possibilities of liability, especially a breach and resulting response costs arising out of the possession of private data,” said Sean Kevelighan, chief executive officer, I.I.I. The vast majority of cyber insurance claims involved the loss, exposure, or misuse of sensitive personal data. About half (48 percent) of the data breaches of U.S. small businesses in 2016 were caused by either a negligent employee or contractor, according to the Ponemon Institute. U.S. insurers reported collecting $1.35 billion in direct premiums written for cyber insurance in 2016, according to the National Association of Insurance Commissioners. Stand-alone cyber insurance policies accounted for $921 million of that total (68 percent), while the balance came primarily from endorsements on either a small commercial or businessowners policy (BOP). Typical cyber-related policies cover the costs arising from either a cyberattack or a data breach, such as responding to lawsuits, repairing damaged infrastructure, and paying the ‘ransom’ demanded by cyber extortionists, among other potential exposures, such as business interruption expenses. “Creating an affordable product that SMBs will be willing to buy is a key component in the insurance offering. Since different industry sectors represent different levels of exposure, pricing will vary depending on the type of SMB,” the white paper, co-authored by James Lynch, the I.I.I.’s chief actuary, and the I.I.I.’s Claire Wilkinson, a consultant, states. The I.I.I. has a full library of educational videos on its YouTube Channel.

Stay Safe on the Highway

October 8, 2017 By Anna Brantley

Courtesy of iii.org The cost and crashworthiness of vehicles as well as drivers safety habits affect the cost of auto insurance. Out of concern for public safety and to help reduce the cost of crashes, insurers support safe driving initiatives. The insurance industry is a major supporter of anti-drunk driving and seatbelt usage campaigns.

Lives saved by safety devices

Airbags: Airbags are designed to inflate in moderate to severe frontal crashes. The National Highway Traffic Safety Administration (NHTSA) says that as of 2013 there were 202 million airbag-equipped passenger vehicles on the road in the United States, including 199 million with dual air bags. The agency says that frontal airbags saved 2,573 lives in 2015. Airbags, combined with seatbelts, are the most effective safety protection available for passenger vehicles. Seatbelts alone reduce the risk of fatal injury to front-seat passenger car occupants by 45 percent. The fatality-reducing effectiveness for frontal airbags is 14 percent when no seatbelt is used and 11 percent when a seatbelt is used in conjunction with airbags.
Seatbelts: Among passenger vehicle occupants age five and older, seatbelts saved an estimated 13,941 lives in 2015. In fatal crashes in 2014, about 80 percent of passenger vehicle occupants who were totally ejected from the vehicle were killed. NHTSA says that when used seat belts reduce the risk of fatal injury to front seat passenger car occupants by 45 percent and the risk of moderate-to-critical injury by 50 percent. For light truck occupants, the risk is reduced by 60 percent and 65 percent, respectively.
Child safety seats: NHTSA says that in 2015 the lives of an estimated 266 children under the age of five were saved by restraints.
Motorcycle helmets: NHTSA estimates that helmets saved the lives of 1,772 motorcyclists in 2015. If all motorcyclists had worn helmets, an additional 740 lives could have been saved.
Helmets are estimated to be 37 percent effective in preventing fatal injuries to motorcycle riders and 41 percent for motorcycle passengers. In other words, for every 100 motorcycle riders killed in crashes while not wearing a helmet, 37 of them could have been saved had all 100 worn helmets.
Electronic stability control: The National Highway Traffic Safety Administration (NHTSA) requires all vehicles manufactured after model year 2012 to have electronic stability control (ESC). All new passenger cars, light trucks, SUVs and vans must comply with the requirement. ESC was designed to help prevent rollovers and other types of crashes by controlling brakes and engine power.
NHTSA says ESC saved an estimated 681 passenger car occupant lives in 2014 and 899 lives among light truck and van occupants for a total of 1,580 lives saved among passenger vehicle occupants. The 2014 total for lives compares with 1,366 lives saved in 2013 and 1,225 lives saved in 2012. Over the five years from 2010 to 2014, NHTSA says the ESC has saved a total of more than 4,100 lives.
NHTSA estimated that about 99 million 2006-model year and newer passenger vehicles (passenger cars and light trucks and vans) were equipped with ESC. This works out to 38.8 percent of the 255 million passenger vehicles on the road in 2014.
In May 2014 NHTSA released a report on updated estimates of fatality reduction by electronic stability control (ESC), which found that in single-vehicle crashes of passenger cars, where the first harmful event was a rollover, ESC decreased rollovers by 59.5 percent, relative to a control group. The reduction in rollovers was even more dramatic in LTVs such as pickup trucks, SUVs and vans, 74 percent.
In June 2010 the Insurance Institute for Highway Safety (IIHS) released the findings of a study that found that ESC for passenger vehicles is one of the most effective technologies for the prevention of fatal crashes, especially rollovers. IIHS data show that it lowers the risk of a deadly crash by 33 percent and cuts the risk of a single-vehicle rollover by 73 percent. The IIHS examined 10 years of crash data from NHTSA.

Motor vehicle crashes

2017: Traffic fatalities were 1 percent lower in the first six months of 2017, compared with the same period in 2016, according to preliminary estimates from the National Safety Council (NSC). The organization says the decline comes after the steepest estimated two-year increase in traffic deaths since 1964. In addition, the first six months’ tally for 2017 is 8 percent higher than the same period in 2015. 2016: According to data released by the National Safety Council (NSC), in 2016 there were more than 40,000 traffic fatalities in the U.S. for the first time in 10 years. The NSC statistics show a 6 percent increase in auto crash deaths in 2016, and a 3 percent rise in the number of miles Americans drove, compared with 2015. NSC estimates that the cost of deaths, injuries and property damage attributed to crashes in 2016 totaled $432.5 billion, up 12 percent from 2015. Nearly 4.6 million people required medical treatment after crashes, an increase of 7 percent over 2015. 2015: According to NHTSA, traffic fatalities rose 7.2 percent in 2015 to 35,092 people from 32,744 in 2014. In 2015 an estimated 2.44 million people were injured in motor vehicle crashes. The fatality rate per 100 million vehicle miles traveled in 2015 rose to 1.07 from 1.08 in 2014.

May is Motorcycle Safety Month

May 14, 2017 By Anna Brantley

Courtesy of iii.org

In 2015, 4,976 people died in motorcycle crashes, up 8.3 percent from 4,594 in 2014, according to a National Highway Traffic Safety Administration (NHTSA) report.
In In 2015, 88,000 motorcyclists were injured, down 4.3 percent from 92,000 in 2014.
In 2015, motorcyclists were 29 times more likely than passenger car occupants to die in a crash per vehicle mile traveled, and almost five times more likely to be injured.
Motorcyclists accounted for 14 percent of all traffic fatalities, 4 percent of all people injured, 17 percent of all occupant (driver and passenger) fatalities, and 4 percent of all occupants injured.
There were 8.6 million motorcycles on the road in 2015.

In 2015, 4,976 people died in motorcycle crashes, up 8.3 percent from 4,594 in 2014, according to the National Highway Traffic Safety Administration (NHTSA). In 2015, motorcyclists were 29 times more likely than passenger car occupants to die in a crash per vehicle mile traveled, and almost five times more likely to be injured. (Note: statistics on fatal motorcycle crashes are also available from the Insurance Institute for Highway Safety.)

KEY FACTS

According to the latest data available from the Federal Highway Administration, there were 8.6 million private and commercial motorcycles on U.S. roads in 2015, compared with 8.0 million in 2009.
2015 Crash Data: According to the U.S. Department of Transportations National Highway Traffic Safety Administration (NHTSA), 4,976 people died in motorcycle crashes in 2015, up 8.3 percent from 4,594 in 2014. In 2015, 88,000 motorcyclists were injured, down 4.3 percent from 92,000 in 2014.
In 2015, 40 percent of motorcyclists killed in motor vehicle traffic crashes were not wearing a helmet.
The fatality rate per registered vehicle for motorcyclists in 2015 was six times the fatality rate for passenger car occupants, according to NHTSA.
Motorcycle Theft: The National Insurance Crime Bureau (NICB) reported that motorcycle thefts rose 6 percent in 2015 to 45,555 from 42,856 a year earlier, based on data from the National Crime Information Center of the FBI. However, motorcycle thefts are down 32 percent from 2006 when they totaled 66,774, according to the NICB.
The NICBs report also details the seasonal nature of motorcycle thefts. More motorcycles are stolen during warm monthsJuly and August had the most motorcycle thefts in 2015 while January and February had the fewest. The top five makes stolen in 2015, from highest to lowest, were American Honda Motor Co., Yamaha Motor Corporation, American Suzuki Motor Corporation, Kawasaki Motors Corp. and Harley-Davidson Inc. California had the most motorcycle thefts in 2015, followed by Florida and Texas. By city, New York, New York, had the most thefts, followed by Las Vegas, Nevada, and San Francisco, California.

FATALITIES AND INJURIES

According to the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) the following terms are used to define motorcycle occupants: a motorcycle rider is the operator only; a passenger is any person seated on the motorcycle but not in control of the motorcycle; and any combined reference to the motorcycle rider (operator) as well as the passenger will be referred to as motorcyclists. According to NHTSA, in 2015, 4,976 people died in motorcycle crashes, up 8 percent from 4,594 in 2014. In addition, 88,000 motorcyclists were injured, down 3 percent from 92,000 in 2014. In 2015, 40 percent of the motorcyclists killed were not wearing helmets. By Age: Older motorcyclists account for more than half of all motorcyclist fatalities. NHTSA data show that in 2015, 54 percent of motorcyclists killed in crashes were age 40 or over, compared with 47 percent in 2005. The number of motorcyclists age 40 and over killed in crashes increased by 17 percent from 2006 to 2015. In contrast, fatalities among all motorcyclists rose 3 percent. NHTSA says that the average age of motorcycle riders killed in crashes was 42 in 2015, compared with 39 in 2006. Older riders appear to sustain more serious injuries than younger riders. Researchers from Brown University cited declines in vision and reaction time, along with the larger-sized bikes that older riders favor, which tend to roll over more often, and the increased fragility among older people as the causes. The study used data on riders age 20 and over who needed emergency medical care following motorcycle crashes from 2001 to 2008. The riders were put in three groups by age: 20 to 39, 40 to 59, and 60 and over. The data showed that while injury rates were rising for all age groups, the steepest rise occurred in the 60 and over group, who were two and a half times more likely to have serious injuries than the youngest group. They were three times more likely to be admitted to the hospital. The middle and older groups were also more likely to sustain fractures, dislocations and other injuries, such as brain damage, than the youngest group. The authors published findings in the journal Injury Prevention in February 2013. The study is entitled Injury patterns and severity among motorcyclists treated in US emergency departments, 20012008: a comparison of younger and older riders. By Driver Behavior Alcohol use: According to NHTSA, in 2015, 27 percent of motorcycle riders who were involved in fatal crashes had a blood alcohol concentration (BAC) of 0.08 percent or over (the national definition of drunk driving). This compares with 21 percent of passenger car drivers, 20 percent for light truck drivers involved in fatal crashes, and with 2 percent of large truck drivers. In 2015, fatally-injured motorcycle riders between the ages of 35 to 39 had the highest rate of alcohol involvement (37 percent), followed by the 45 to 49 age group (36 percent). In 2015 motorcycle riders killed in traffic crashes at night were almost three times more likely to have BAC levels of 0.08 percent or higher (42 percent) than those killed during the day (13 percent). The reported helmet use rate for motorcycle riders with BACs at or over 0.08 percent who were killed in traffic crashes was 51 percent in 2015, compared with 65 percent for those who did not have any measurable blood alcohol. Speeding: In 2015, 33 percent of all motorcycle riders involved in fatal crashes were speeding, compared with 19 percent for drivers of passenger cars, 15 percent for light truck drivers and 7 percent for large truck drivers, according to NHTSA. Licensing: Twenty-seven percent of motorcycle riders who were involved in fatal crashes in 2015 were riding without a valid license, compared with 13 percent of passenger car drivers. By Type of Motorcycle: According to a 2007 report from the Insurance Institute for Highway Safety (IIHS), riders of “super sports” motorcycles have driver death rates per 10,000 registered vehicles nearly four times higher than those for drivers of other types of motorcycles. Super sports can reach speeds of up to 190 mph. The light-weight bikes, built for racing, are modified for street use and are popular with riders under the age of 30. In 2005 these bikes registered 22.5 driver deaths per 10,000 registered vehicles, compared with 10.7 deaths for other sport models. Standards and cruisers, and touring bikes (with upright handlebars) have rates of 5.7 and 6.5, respectively, per 10,000 vehicles. In 2005 super sports accounted for 9 percent of registrations, and standards and cruisers made up 51 percent of registrations. Among fatally injured drivers, the IIHS says that drivers of super sports were the youngestwith an average age of 27. Touring motorcycle drivers were the oldest, 51 years old. Fatally injured drivers of other sports models were 34, on average; standard and cruiser drivers were 44 years old. Speeding and driver error were bigger factors in super sport and sport fatal crashes. Speed was cited in 57 percent of super sport fatal crashes in 2005 and in 46 percent for sport model riders. Speed was a factor in 27 percent of fatal crashes of cruisers and standards and 22 percent of touring models.

What to Do When it Freezes

January 23, 2017 By Anna Brantley

Courtesy of iii.org It doesn’t dip below freezing very often in Florida (which is just the way we like it!). When it does, a refresher is in order on what precautions to take so cold temperatures don’t put a freeze on your budget due to costly repairs that could have been avoided. Check out our cold weather survival tips. Most homeowners insurance policies cover damage from freezing conditions. It’s always best to prevent the damage in the first place, of course. Parts of the Florida Panhandle dipped below freezing over the weekend, and that could occur again in the coming weeks. Cold-weather warnings prompted me to buy all my outdoor faucets a hoodie (see photo above). For about $3 a faucet, it’s a good investment in preparedness, especially since you have to disconnect the hose to slip it on. Freezing temps can cause water locked inside garden hoses to expand and burst and the cost of those hoses is not covered by insurance. Frost on the ground in the morning, and in the mid-50s by mid afternoon. Gotta love it!