News
![Growing API Economy in Insurance](https://dxj7eshgz03ln.cloudfront.net/production/link/image/864688/original_ratio_extra_large_89a82877-8ac1-408d-9c7c-8be5bf28fbd4.png)
Growing API Economy in Insurance
This article is part of The Future of Insurance -LinkedIn's Newsletter Series.
Click on "subscribe" button to get updates on future of insurance, technology, customer & employee experience, and industry trends! The insurance industry has experienced a significant shift towards digitalization
Dogan Kaleli, CEO at Stere, Founder at Nion, Ex-Allianz, LinkedIn Creator
![State Farm Ceases Writing New Business in CA for All Business and Personal Insurance](https://dxj7eshgz03ln.cloudfront.net/production/link/image/864781/original_ratio_extra_large_278d4ae3-7e88-4ee9-975b-cbac17423d62.png)
State Farm Ceases Writing New Business in CA for All Business and Personal Insurance
State Farm General Insurance Company®, State Farm’s provider of homeowners insurance in California, will cease accepting new applications including all business and personal lines property and casualty insurance, effective May 27, 2023.
This decision does not impact personal auto insurance. *State Farm General Insurance Company made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.
"We take seriously our responsibility to manage risk"
![Memorial Day travel forecast up 7% YOY, claims likely to return to ‘near-normal’ volume](https://dxj7eshgz03ln.cloudfront.net/production/link/image/864909/original_ratio_extra_large_f0f76558-047c-405c-8319-4387675e3955.jpg)
Memorial Day travel forecast up 7% YOY, claims likely to return to ‘near-normal’ volume
AAA projects 42.3 million Americans will travel 50 miles or more from home this Memorial Day weekend, a 7% increase over 2022, while CCC Intelligent Solutions predicts the number of collision claims will return to near-normal volume.
“Memorial Day-related claims activity has followed a similar pattern to overall claims activity the last several years, with pandemic-related dips in claims volume in 2020 and 2021 and a return to near-normal claims activity in 2022,” said CCC Intelligent Solutions Product Marketing Vice President Jason Verlen. “Given the claims trend line and predictions for a high volume of travelers this Memorial Day weekend, CCC would expect to see claims at the 2022 level, and potentially beyond, following the upcoming holiday weekend.”
'Intelligent Ingestion': Time to Truly Go Digital
The industry kids itself about having gone paperless. In fact, we still use the same processes we used in the 17th century. It's time for a change.
KEY TAKEAWAYS:
- A typical process involves routing the submission to a lower-cost resource, often offshore, who might extract and convert 50 of the 500 important pieces of information in it into digital data.
- But tools that combine natural language processing with computer vision can now extract all the key data from both structured and unstructured documents with great accuracy and speed.
For over a decade, we have pretended to be paperless. We tout the fact that the file cabinets, the seven-part specialized file folders and massive mail rooms have all been eliminated and reduced, and we claim we are paperless. But we know we aren't. Today’s paper is PDFs, Excels and Adobe.
The filing cabinets have been replaced with digital folders and the mail rooms with emails and digital workflows. But insurance isn’t paperless; it just pretends to be. It doesn’t have to be that way. The technology to become truly digital exists. We just need to take the leap.
Michael Reilly, director in Accenture’s insurance practice
![Acrisure reorganizes operations, changes branding strategy](https://dxj7eshgz03ln.cloudfront.net/production/link/image/864689/original_ratio_extra_large_123e0d6e-f89a-4839-bf4c-bebd3d8afe18.jpg)
Acrisure reorganizes operations, changes branding strategy
Acquisitive insurance brokerage Acrisure LLC on Monday said it will implement a regional organizational structure for its operations and roll out a corporate branding strategy that will see the Acrisure name applied to its units.
Acrisure, which was founded in 2005 by CEO Gregory L. Williams, has grown rapidly over the past 10 years and is the world’s eighth-largest brokerage, according to Business Insurance’s most recent ranking.
The Grand Rapids, Michigan-based company has consistently been the most active acquirer of rival agents and brokers over the past several years but has often allowed purchased agencies to continue under their existing name.
“Today marks the next phase in Acrisure’s story,” Mr. Williams said in a statement. He added “the time is right to increasingly operate under the Acrisure flag.”
In addition, the brokerage will organize its operations by regions, which will be led by existing Acrisure leaders, the statement said.
Actual Cash Value on Roof Claims a Fairer, Simpler Way to Pay
In the May 15, 2023 Insurance Journal, independent adjuster Ben Mandell shared an opinion that Florida insurance policies have “one glaring endorsement that is missing” – roof endorsements that could have “eliminated or greatly minimized” Florida’s insurance crises. He argues that offering a stated value endorsement of $5,000 or $10,000 would limit the carrier’s maximum exposure and keep premiums more affordable.
He asks, “Why won’t the Florida insurance companies support a roof endorsement?”
For the past several years, the insurance industry has worked tirelessly with insurance agents, roofing contractors, the Florida Legislature and regulators to push for an endorsement that would pay a claim on the actual cash value (ACV) of a roof, like more than 40 states in the U.S. have.
Under ACV, an insurance company’s claim payout would be based on the pre-damaged roof’s current value, considering its age and condition. That’s exactly how automobile insurance claims are paid and how tire warranties work – by paying based on the remaining life of the tire. As one reader rightly commented, “If you have a 15-year-old roof damaged by hail, why should you get paid for the cost of a brand-new roof? You don’t get a brand-new car if your car is totaled in an accident.”
InsurTech/M&A/Finance💰/Collaboration
![InsurTech Ohio and Insurtech Canada Partnership](https://dxj7eshgz03ln.cloudfront.net/production/link/image/865104/original_ratio_extra_large_3ca8b251-0baf-490a-bca1-1a54257db702.png)
InsurTech Ohio and Insurtech Canada Partnership
InsurTech Ohio and Insurtech Canada Partner to Establish Market Pipeline Program for Startups
InsurTech Ohio and Insurtech Canada have announced a partnership to establish a pipeline for startups to enter the US market. Ohio will become the exclusive landing spot for these companies, providing them with connections to resources, networking events, advisors, and capital to continue to grow.
Ohio is a hotbed for insurance innovation, not only from insurtech startups, but also from incumbents who have reinvented the way they do business. This ecosystem provides abundant industry expertise, access to talent, and a low cost of doing business allowing young companies their best chance to thrive.
John Harvey, Founder of Insurtech Canada, said, “This partnership will provide a unique opportunity for Canadian startups to gain access to the US market. We are confident that the resources and connections that InsurTech Ohio provides will be invaluable to these companies.”
Andrew Daniels, Founder and Managing Director of InsurTech Ohio, added, “We are thrilled to be partnering with Insurtech Canada to help startups expand their reach. We look forward to helping these companies grow and succeed.”
![Beazley & Arbol launch parametric weather products for the US market](https://dxj7eshgz03ln.cloudfront.net/production/link/image/864501/twenty_by_nine_extra_large_df8d775a-77d0-490e-9822-465aa300d2df.png)
Beazley & Arbol launch parametric weather products for the US market
Arbol, a global climate risk solutions platform, and leading insurer, Beazley, have announced the launch of specialist parametric weather products to the US market.
With the launch this now means that cutting-edge products are available for a range of perils, including low and excess precipitation, low and excess wind speed, high and low temperature, and lack of solar irradiance.
Moreover, Arbol’s proprietary pricing platform is powered by AI and a dedicated climate data infrastructure to inform underwriting operations.
At the same time, weather data indices are used to develop customised parametric products, using triggers specific to the peril and the insured.
It was also confirmed that Arbol Insurance Services (an Arbol subsidiary) has now been appointed as a Lloyd’s coverholder, with a facility led by Beazley supported by Tokio Marine Kiln and Nephila.
Additionally, Guy Carpenter served as the sole placing broker and was responsible for securing the required capacity for the launch.
According to the announcement, the product is now available in the US on a surplus lines basis.
Hong Guo, EVP and Chief Insurance Officer of Arbol, commented: “This milestone validates our commitment to delivering innovative risk management solutions. It opens new possibilities to serve our clients and the insurance industry as businesses seek to effectively manage emerging climate risks.”
Neil Kempston, Head of Incubation Underwriting at Beazley, added: “Beazley is committed to supporting the development of weather parametric products that ease the challenges the agricultural supply chain and renewable energy markets face as we move to net zero. By building a long-term partnership with Arbol we can deliver for our brokers and their clients.”
Events
InsurTech Summit 2023, | McDermott Will & Emery | June 15, 2023 | Manhattan
June 15, 2023 | 2:00 PM-8:00 PM ET
As a leader in insurance innovation, we are excited to invite you to join us for McDermott Will & Emery's second annual InsurTech Summit 2023, a curated half-day program featuring top insurance-focused venture capital investors, start-up founders, key players from emerging companies and other industry stakeholders.
Experience engaging discussions and insights on the chief commercial and legal issues currently impacting this rapidly evolving sector.
The program will be held at the Vandy Club on the third floor of One Vanderbilt. Following the program, join us on the 67th floor for a networking cocktail reception with breathtaking views of the Manhattan skyline.
Don’t miss your chance to join us in New York for this exclusive event.
AI in Insurance
2023 Most Innovative Companies: Reaching New Heights in Uncertain Times
[Ed. Note: Read 'How Early Winners are Unlocking AI's Potential']
Look at 2023 Most Innovative Companies report and examine what innovation-ready leaders (those that are ready to develop product, process, and business model innovations that can deliver sustainable impact) are doing to pull ahead. You will find a discuss about the importance of innovation in terms of how it helps leaders build their resilience to economic uncertainty.
“The question isn’t whether AI can have an impact. It’s whether companies are implementing AI for use cases with the potential to drive business value”
Boston Consulting Group (BCG)
![Decrypting AI for insurance | Part I | Swiss Re](https://dxj7eshgz03ln.cloudfront.net/production/link/image/864692/original_ratio_extra_large_7488ef6f-9e26-45b5-8a49-f7336bacd59a.jpg)
Decrypting AI for insurance | Part I | Swiss Re
Part 1: How to ensure AI helps business
A. Grasso and P. Ladva have put together ten recommended guiding principles they consider to be important for a responsible AI fit for business success.
With its capability to analyse vast amounts of data in a short time for the insurance industry, Artificial Intelligence (AI) is an increasingly important backbone for insights. In addition, it's decision-making capabilities can be a giant step for business efficiency and new solutions. However, the decisions AI takes must be compliant with applicable laws and regulations, and must also be ethical, unbiased and sustainable. And here lies the crux: to be beneficial to the insurance industry and society at large there are many governance, organisational and cultural conditions that applications of AI need to fulfil.
Pravina Ladva, Group Chief Digital & Technology Officer & Antonio Grasso, Entrepreneur, Technologist, Founder & CEO @dbi.srl, and author
![Munich Re announces next-gen AI-powered underwriting solution](https://dxj7eshgz03ln.cloudfront.net/production/link/image/864942/twenty_by_nine_extra_large_f3e2e123-e6fa-4410-a153-c9ce8df1d61b.jpg)
Munich Re announces next-gen AI-powered underwriting solution
Reinsuring giant Munich Re has unveiled a next-generation AI-augmented underwriting solution, powered by the firm’s Automation Solutions’ new Predictor tech platform.
Utilizing the AI underwriting solution addresses several key challenges in today’s market, including convenience, time, and intrusiveness. The platform leverages the combined prowess of both AI and data to improve customer experience, operational efficiency, risk selection, leading to growing profits for life and health insurers.
Predictor, which powers the solution, is also integrated with other automated Munich Re solutions like ALLFINANZ, SPARK, and NOVA. Through the proposition, the reinsurer handles the end-to-end process of AI model development, deployment, monitoring, management, and maintenance. Munich Re will also offer reinsurance on policies underwritten by these AI models as an optional service to further support insurers and provide alignment of interest and peace of mind.
Munich Re Automation Solutions CEO Ross Mayne said that the development represents another significant step forward for the industry, as well as reaffirming the reinsurer’s commitment to supporting its clients.
"We're thrilled to launch our next generation AI-augmented underwriting Predictor platform, which is a critical evolution for insurers powered by data, technology and AI. We believe combinations of rules-based analysis, third party data and AI should work together flexibly, seamlessly and transparently to meet the very highest expectations of insurers, distributors and consumers.” Mayne said.
![Ericson Chan Discusses AI Technology In The Insurance Industry](https://dxj7eshgz03ln.cloudfront.net/production/link/image/864941/original_ratio_extra_large_226da2d3-e109-40ca-9544-dda7d98a3f24.png)
Ericson Chan Discusses AI Technology In The Insurance Industry
In this interview with Ericson Chan, Group Chief Information & Digital Officer at the Zurich Insurance Group, FF News’ Douglas Mackenzie asks how AI technology is being utilised in the insurance industry today. The Zurich Insurance Group is one of the world’s largest insurance providers and as of 2021, is the world’s 112th largest public company according to Forbes.
“There’s a lot [we can do] and AI is not new to us. We look at it, we talk about AI a lot of course recently everyone wants to talk about GPT, but AI has many different areas. AI is as it says, artificial intelligence, it’s just like a human being. There are many areas like cognitive, so sensing our visuals. That’s one area, and then another area is a knowledge base like an NLP natural language processing where the GPT comes in big time now with 3 going to 4.”
“They are a different area of AI. We use a different area of AI to embed into and improve our intelligence of the process. So it definitely is important, but before that, we need to make sure we have the foundation well built. Data needs to be there, and then how do we leverage it? So we need to have the skills of how to leverage AI.”