News
Allstate Estimates ’22 Auto Combined Ratio of 110; Frequency, Reserves Up
Allstate announced preliminary estimates of its fourth-quarter and full-year 2022 results last night, revealing a 2022 combined ratio of 110 for personal auto insurance, with reserve boosts for prior periods and rising frequencies contributing to underwriting losses.
Allstate is estimating a 106.6 combined ratio for 2022 for property-liability lines overall.
For just the final quarter, the estimated combined ratios are 112.6 for personal auto and 109.1 across all property-liability lines, with homeowners posting an estimated 92.6.
Tallying underwriting and investment results, Allstate estimates a bottom-line net loss for the fourth quarter between $285 million and $335 million. In contrast, in fourth-quarter 2021, the company posted $790 million in net income.
Three MGA trends to watch in 2023
As we close out 2022, the general state of the insurance industry is that change is happening, but it's not moving rapidly enough. When we look back over many of the predictions from years past, it's easy to see why. Just a quick peek at the top trends insurance experts had for 2022 shows that many of them are the same topics we've been talking about for years, such as digital transformation, partnership ecosystems, and using data and tech to understand customers better.
The insurance industry has indeed been slower to adapt. However, insurance is now at a significant inflection point. This change has been accelerated by the events of the last two years. Agencies have no choice but to accelerate their digital transformation initiatives, not just as a 'nice to have,' but as a means of survival.
What's driving the sense of urgency around digital? The next generation of tech-savvy, digital-first MGAs has already stormed the gates, bringing VC-backed innovation with them. Some experts have referred to this new crop of MGAs as "insurtech 2.0." MGAs are gaining traction across the insurance distribution ecosystem, serving as intermediaries in the same way as retail agencies and brokers. However, unlike retail and wholesale brokers, MGAs often have binding authority from insurance partners. This means that MGAs can quote and bind policies that fit within the framework of their insurer partnerships. On top of that, MGAs often have expertise in niche or specialty lines of insurance, empowering them to create new risk products backed by their carrier partners.
Eric Ayala Senior Vice President, Americas, Novidea
Dangerous driving habits it's time to drop
The National Highway Traffic Safety Administration (NHTSA) recently released its projections for traffic fatalities in the first nine months of 2022, which show an estimated 31,784 people died in crashes during that time – a 0.2% decrease from that same period in 2021. However, while fatalities dropped overall, there was an increase in pedestrian and cyclist deaths.
“Fatalities have not increased for two quarters now, but we have far more work to do to save lives and address the crisis on our nation’s roadways. That means investing in safety, implementing strategies that work, and embracing the safe system approach outlined in the Department’s National Roadway Safety Strategy. We urge everyone to do their part by driving safely and watching out for others on the road, especially vulnerable road users like pedestrians, cyclists and motorcyclists.”
NHTSA acting administrator Ann Carlson**
To make roadways safer overall, drivers should make a conscious effort to avoid these six behaviors that the NHTSA has deemed the riskiest.
NHTSA: Car crashes cost Americans $340B, traffic fatalities beginning to level off
Motor vehicle crashes cost Americans $340 billion in 2019, according to the National Highway Traffic Safety Administration (NHTSA)’s new report, “The Economic and Societal Impact of Motor Vehicle Crashes, 2019.”
The report examines the costs of one year of crashes that killed an estimated 36,500 people, injured 4.5 million, and damaged 23 million vehicles.
“This report drives home just how devastating traffic crashes are for families and the economic burden they place on society. We need to use the safe system approach embraced in DOT’s National Roadway Safety Strategy to dramatically decrease the number and severity of crashes: safer roads, safer people, safer vehicles, safer speeds, and better post-crash care.”
NHTSA Acting Administrator Ann Carlson
InsurTech/M&A/Finance/Collaboration
Avenue5 Residential Signs Multi-Year Contract Extension with Assurant Multifamily Housing
Assurant announces multi-year contract extension with Seattle-based Avenue5 Residential. Assurant to offer pay-with-rent Cover360 solution to over 98,000 units across 500 properties.
Enterprise and Ford Partner to Expand Collision Engineering Program
Partnership seeks to address collision repair technician shortage. Program will add seventh school in U.S.
Enterprise Holdings, through the Enterprise Holdings Foundation, today announced a strategic partnership with the Ford Motor Company Fund to support the growth of the Collision Engineering Program (CEP). The new industry partnership will expand the CEP to a new college that will become the seventh school to offer the two-year apprenticeship model, founded by Enterprise Holdings Foundation and Ranken Technical College, to attract and develop entry-level talent to fill essential roles within the collision repair industry. The program was launched in 2021 in four schools.
“Widespread industry support is vital to addressing the worker shortage and skills gap, and to ensuring the success of the Collision Engineering Program. As a leader in the automotive industry, we’re committed to addressing these challenges with our partners. We could not be more thrilled to expand our longtime partnership with Ford Motor Company, through its philanthropic arm, the Ford Fund, to increase access to the Program and help address this ongoing industry challenge.”
Mary Mahoney, vice president at Enterprise Holdings
Embroker Launches ONE by Embroker to Simplify Business Insurance for Startup Founders | Business Wire
Embroker, the digital platform making it radically simple to get business insurance, today introduced ONE by Embroker — a universal application that utilizes AI and machine-learning technologies to generate business insurance products tailored to specific industry needs. The streamlined process focuses on critical business information and removes the need for unnecessary and redundant questions, enabling brokers and startup founders to get quotes for a comprehensive bundle of products instantly.
Embroker’s ONE technology leverages 14 questions and learns from data points provided by founders. ONE by Embroker generates up to four quotes specific to the exact coverage individual businesses need. These coverages include Employment Practices Liability, Tech Errors and Omissions, Fiduciary Liability, and Directors & Officers insurance.
Business owners are looking for a single-destination solution for their insurance needs so they can spend less time hunting for answers and more time running their business. Commercial insurtechs offer a vast array of coverage types, yet provide little guidance on choosing the right package of products. This requires founders and brokers to shop multiple locations to assemble the right risk management solution, and after all that work, the coverage may or may not deliver on their specific needs. This process is a burden on the organizations, and does not maximize the capability of their broker: Insurance professionals are forced to spend unnecessary hours shopping for policies across multiple vendors instead of providing value-added services to their customers.
“Founders and business owners shouldn’t be served a one-off, one-size-fits-all solution. When it comes to risk management, businesses need a strategic partner. To truly add value, insurtechs must provide a comprehensive suite of vertically-focused products that address all of their needs, ONE by Embroker does just that. We provide a single-destination solution that replaces the traditionally complicated process through a universal application, generating quotes specific to the policies most appropriate for each business based on the broker or founder’s inputs.”
Ben Jennings, CRO, Embroker
New York insurtech Joyn raises $17mn in Series A funding
Joyn Insurance has raised over $17mn in Series A funding to help build an industry-leading underwriting and workflow platform for brokers and underwriters
New York-based insurtech Joyn Insurance has raised US$17.7mn in a Series A funding round led by OMERS Ventures.
The round, which Joyn says “exceeds its fundraising target”, also includes participation from Avanta Ventures, ManchesterStory, Cohen Circle, SiriusPoint and several private individual investors.
Polly expands online buying option
Based on information obtained by Coverager, Polly is now offering car shoppers the option to buy auto insurance online in up to 25 states without having to speak to an agent.
The carriers making their products available online include Progressive, Travelers, and Safeco.
Insurtech Startup iLife Raises $4 Million
Playa Vista-based iLife Technologies Inc., a software platform that gives insurance agents and brokers the ability to quickly create their own digital insurance agencies, has received $4 million in seed funding.
The raise was led by Foundation Capital, the Palo Alto-based venture capital firm that was an original investor in Netflix Inc.
Other participants in the round were Taipei, Taiwan-based Cherubic Ventures and AME Cloud Ventures, a Palo Alto-based firm founded by tech investor Jerry Yang, who founded and ran Yahoo until his departure in 2012.
ILife has raised a total of $5 million in venture capital since its founding in July 2019.
People
Chief executive to leave public insurer in February
Insurance Corporation of British Columbia (ICBC) president and CEO Nicolas Jiminez will be leaving his post on Feb. 3 to become president and CEO of B.C. Ferries, ICBC announced Tuesday.
ICBC’s board of directors made the announcement in a press release on Tuesday. The board appointed chief financial officer, Phil Leong, as interim president and CEO. Leong has been with ICBC since 2008, working in progressive leadership roles within the finance division.
ICBC’s board will be conducting a search process to identify a permanent replacement.
“It is a day of mixed emotions to be saying goodbye to Nicolas after almost a 20-year career with ICBC,” board chairwoman Catherine Holt said in the release. “We look back on his contributions to ICBC with admiration and appreciation, especially for his years as president and CEO and the remarkable transformation he and his leadership team led for B.C.’s public auto insurer.”
Events
Webinar: 2023 Top 10 Trends in Property & Casualty Insurance: Turning Disruption Into Opportunities | Aite-Novarica
Usually, in a challenging environment, insurers would be tightening their belts, yet in 2023, Aite-Novarica Group anticipates many insurers increasing investment in IT and implementing new capabilities and technologies to improve operational efficiencies, increase revenue and enhance customer experience.
Join Aite-Novarica Group P&C insurance experts for this webinar, in which they will review the top 10 trends they see making a significant impact in 2023, including the new insurance ecosystem, better AI applications, labor market challenges, and market expansion through embedded products and MGA distribution.
Speakers: Martina Conlon Carey Geaglone Martin Higgins Eric Weisburg