News
Progressive Insurance implements another round of rate hikes
Progressive Insurance has announced another round of rate hikes for its customers in Illinois, increasing its auto insurance rates by 5% on average.
The adjustment will result in annual premium hikes ranging between $90 and $100, according to Crain’s Chicago Business, citing a filing disclosed by the Illinois Department of Insurance.
Earlier this year, the insurer increased rates by 4.6% for those purchasing through independent agents and 3% for policyholders buying online or via phone. As a result, average annual premiums have risen by $150 to $200 in 2023 alone.
Progressive spokesperson Ronald Davis said the company is continuously monitoring loss frequency and other changes to insurance costs to ensure that rates align with the level of risk.
“Our most recent rate adjustments are being driven by several factors including higher vehicle replacement costs, rising injury and repair costs and increased frequency,” Davis told Crain’s Chicago Business. “We’ll continue to assess our data and monitor trends in these areas and make adjustments to our pricing accordingly.”
CEO Tricia Griffith previously revealed Progressive’s plans to implement “aggressive rate increases” throughout 2023 to achieve desired underwriting margins amid inflationary pressures and rising costs.
Progressive is the third largest auto insurer in Illinois. It has seen a 26% increase in auto policies since early 2021, rising from 407,639 to 514,306, as reported by Crain’s Chicago Business
Tropical Storm Bret Spins Up With Possible Hurricane Threat to Caribbean
Tropical Storm Bret formed in the central Atlantic Ocean on Monday, with forecasters saying it could pose a hurricane threat to the Lesser Antilles by Thursday and the Dominican Republic and Haiti by the weekend.
The National Hurricane Center in Miami said the Bret had maximum sustained winds of 40 mph (65 kph) at 5 p.m. Monday as it moved west across the Atlantic at 21 mph (33 kph). Forecasters expect it to strengthen over the next two days, reaching Category 1 hurricane strength of 74 mph (120 kph) by Wednesday night. Because of wind shear, the storm is not expected to strengthen into a Category 2 storm.
Bret is “is forecast to strengthen and move across the Lesser Antilles as a hurricane on Thursday and Friday, bringing a risk of flooding from heavy rainfall, hurricane-force winds, and dangerous storm surge and waves,” the center said.
There is a possibility the storm could turn north or continue west into the Caribbean and threaten the Dominican Republic, Haiti and other islands.
‘Everyone in the Lesser Antilles, Puerto Rico, and the Virgin Islands should closely monitor updates to the forecast for this system and have their hurricane plan in place,” the center said.
IoT Can Turn the Tide on Flood Risk
With flood threats increasing, insurers are shifting away from simply restoration and recovery to prevention and mitigation pre-event.
KEY TAKEAWAYS:
- IoT sensors can accurately forecast not only the likelihood of a flood event, but more importantly identify exactly which buildings or facilities will be affected. A combination of flood forecasts, nowcasts and real-time IoT data can let companies act before or during a flood event to mitigate the impact.
- The spread of IoT technology will likely increase the use of parametric insurance, with payments triggered by precise data from IoT sensors.
Rising risks from flooding in every part of the U.S. will require an innovative response from insurers and risks managers, and the Internet of Things (IoT) is set to become key to how risks will be managed and mitigated.
Jonathan Jackson, CEO, Previsico
SUPPLEMENTAL HURRICANE INSURANCE NOW AVAILABLE ONLINE
Vortex Insurance, an insurtech leader in parametric weather insurance, announced today the launch of an innovative insurance program allowing the purchase of supplemental hurricane insurance for portions of the United States threatened each summer with the possibility of severe hurricanes. Unlike traditional insurance, this pioneering product supplies business entities with peace of mind by providing coverage in the event of a Category 3 (or stronger) hurricane. Payouts are provided rapidly, no questions asked, and with no loss adjustment process or large deductibles.
Payouts are provided rapidly, no questions asked, and with no loss adjustment process or large deductibles.
Vortex's Supplemental Hurricane Insurance covers gaps left by traditional property insurance. Policies are triggered if an insured business is located within a coverage area defined by a 20-mi or 40-mi circle centered upon the business (depending upon the product chosen) when a Category 3 or stronger hurricane tracks within this zone. Business owners can now have peace of mind and rapid assistance when a natural disaster hits, without the hassle of claims paperwork or adjustors. With hurricane season officially underway, Vortex Insurance is pleased to announce that this insurance is now available for purchase through an online portal. With a few simple clicks, policies are issued and available online in minutes.
Vortex has partnered with Speedwell Settlement Services Ltd., a leading provider of settlement data for parametric weather and climate related contracts, to bring this new product to market. By utilizing quality controlled third party data (hurricane storm track and intensity in this case), buyers of this product can have confidence in the independence of the data used to determine a claim payout.
"We're thrilled to be a part of this innovative product launch. Parametric products such as these are powerful whereas they bring simplicity, transparency, and speed (payment of benefits) to the small and midsize business insurance market. Here at Speedwell, we have a long history of acting as an independent third party for the certification of weather and climate observations for parametric products. This project is exciting whereas it combines our data expertise with Vortex Insurance innovation to create a product that will truly revolutionize the market," said David Whitehead, CEO of Speedwell Settlement Services.
"Businesses should be prepared for losses they don’t expect" Zywave leader
In order to safeguard insureds from potential losses, it is prudent that brokers and underwriters assess the totality of comparable risks through efficient use of data.
“Businesses should be prepared for losses they don’t expect,” said Jeff Cohen (pictured), senior vice president of Zywave, a software service company providing insurers and insurance professionals with products for agency management, data analysis, compliance, and risk management, among other services.
“By gauging data and understanding how policyholders can be affected by losses suffered from similarly sized business and organizations, brokers can help create a more robust product to prevent any foreseeable losses.”
Cohen spoke with Insurance Business during the RIMS Atlanta event about recognizing the importance of economic losses and the need to be proactive when assessing risks for policyholders
AI in Insurance
Capitola Introduces GPT Technology into its Commercial Insurance Platform
Capitola, the digital marketplace for commercial insurance that connects brokers and carriers, today announced the introduction of GPT technology into its commercial insurance platform. The new “Capitola Co-Pilot” artificial intelligence (AI) capabilities harness the power of GPT technology to offer brokers unparalleled productivity enhancements specifically designed to elevate the broker experience by improving efficiency and effectiveness and thus greatly increasing their book of business.
“GPT technology represents a tectonic shift in our ability to build tools that empower insurance professionals to broker better”
“GPT technology represents a tectonic shift in our ability to build tools that empower insurance professionals to broker better,” said Sivan Iram, Capitola’s co-founder and CEO. “As the first broker platform to implement GPT technology, Capitola continues to lead the market in its ability to streamline the placement process and provide smart market-intelligence recommendations.”
Generative Pre-trained Transformers (GPT) are a type of large language model (LLM) and a prominent framework for generative artificial intelligence that is designed to understand and generate human language. Within the Capitola platform, Co-Pilot is capable of:
Data Extraction: Using language models Capitola Co-Pilot can be used to analyze and understand unstructured data, such as documents and emails and derive insights from them. Earlier forms of AI could only understand the syntax, but with GPT technology, Capitola Co-Pilot can even understand the semantics. It can help read and compare quotes, provide recommendations to brokers, generate customer facing materials, and more.
Data Enrichment: Capitola Co-Pilot models that are based on GPT can monitor and analyze relevant publicly available information and documents as related to commercial insurance. By processing and summarizing this information, GPT technology can provide brokers with valuable insights into market trends, regulatory changes, and competitive dynamics. This enables brokers to stay updated and make informed decisions in a dynamic insurance landscape.
Market Intelligence/Risk Appetite Matching: Capitola Co-Pilot strengthens a broker’s ability to map out carrier risk appetite and provide data-driven recommendations to find the right market for every risk. Its reasoning and inference capabilities are a gamechanger for its ability to take in large amounts of data and synthesize it to actionable and insightful recommendations.
ZestyAI Receives Second Consecutive AI Breakthrough Award for Groundbreaking Climate and Property Risk Analytics Solutions
ZestyAI the leading provider of climate and property risk analytics solutions powered by Artificial Intelligence (AI), has been awarded an AI Breakthrough Award for the second year in a row. The annual AI Breakthrough Awards recognize the world's most innovative companies, technologies, and products, and honor trailblazing AI innovators.
This year, ZestyAI has been recognized for the company's excellence in Machine Learning. As climate risk and extreme weather events have increased in frequency and severity, the property and casualty insurance industry has been crippled with skyrocketing losses. ZestyAI uses AI and machine learning to provide climate and property risk analytics that give insurers a realistic picture of risk.
"In the last year, ZestyAI has taken enormous strides in helping insurance carriers manage their exposure to climate events, like wildfires and severe storms," said Attila Toth, Founder and CEO of ZestyAI. "We even helped home and business owners who were considered uninsurable by traditional models gain coverage. AI not only provides more accurate risk assessment for individual parcels, buildings, and roofs, but it also increases transparency and trust between carriers and their customers."
ZestyAI taps into the immense computing power of the cloud and leverages the latest AI and machine learning techniques. The company is able to precisely model the vulnerability of every property in North America based on their specific characteristics, such as roof complexity, quality, and building materials, among others.
The AI Breakthrough Awards program, conducted by AI Breakthrough, acknowledges the top companies, technologies, and products in the global AI market. AI Breakthrough received over 3,000 entries to this year's awards from all over the world. ZestyAI's win in the category of Machine Learning underscores its industry leadership and dedication to revolutionizing property risk analytics. ZestyAI continues to grow its client base, partnerships, and its climate risk models to drive innovation and shape the future of the insurance and real estate markets.
Recommended Events
CIECA CONNEX 2023 | Sep 12-13, 2023 | Bloomington, IL
CIECA CONNEX 2023
Join leaders from across the collision industry for an engaging two-day conference to discuss where technology and business are headed and what we are doing as an industry to be prepared.
Our theme this year is "Connected Car | Connected Industry." It reflects the increasing levels of connectedness and integration between all aspects of vehicle design, manufacturing and repair.
With ADAS and autonomous features growing with every model year and new EV models expected from nearly every major manufacturer, technology is at the forefront of automobile design and the driving experience. All of this technology translates into data, and new repair methods, supply chains and repair procedures.
CIECA members and non-members are invited to join us for two days of presentations and discussions about these emerging technologies, how they impact the collision industry and what we are doing to prepare for the rapidly-changing business environment.
The CIECA CONNEX conference is an excellent opportunity to meet and network with leaders from some of the most influential companies in the industry. Conference attendees are eligible to receive credit toward a professional designation from the Automotive Management Institute (AMi).
After the conference, please join us for an exclusive factory tour at Rivian
CLM Claims College | August 16-19, 2023 | Baltimore
Take Your Claims Education to the Next Level
Claims College is the boost your career needs right now. It provides the tools to excel in your job today and prepare you for growth tomorrow. Bonus – it puts you on track to earn the highly desired Certified Claims Professional (CCP) and Advanced Claims Professional (ACP) designations.
This year, Fausto Martin is serving as Dean for the CLM Alliance (Claims and Litigation Management Alliance) Claims College School of Leadership with Angela Kopet. CLM is affiliated with The Institutes
Enrollment is Limited
Claims College only happens once a year. Enrollment is limited to ensure optimal student instructor ratios. Enroll now!
InsurTech/M&A/Finance💰/Collaboration
[AM BEST TV] Liberty Mutual's Cohen: Corporate Venture Funds Remain Focused on Strategic Innovation
Josh Cohen, director, Liberty Mutual Strategic Ventures, said corporate investing trends and financial venture trends have important differences. Cohen spoke with AM Best TV at the Insurtech Insights USA conference in New York City.
Marsh Commercial launches partnership with global wholesaler Costco
Marsh Commercial is now offering Costco members business-related insurances at preferential rates—from office, shop and retail, and professional indemnity, to contractors and general business insurance.
“We are very pleased to announce our new insurance programme with Marsh, which has been a partner with Costco for 30 years as they handle our own company insurance,” says Sue Knowles, Marketing and Human resources Director for Costco Wholesale UK. “This programme will continue to grow and our members will see new insurance products made available throughout 2023 and 2024. It’s a very exciting time and comes with the confidence that we are offering our members quality and competitive products in the marketplace.”
“Specialist insurance advisers at Marsh Commercial will search the market for Costco members, offering free advice and support, whilst saving members valuable time”, says Alistair Brighton, Managing Director of Marsh.
“In the current climate it’s more important than ever to have the correct level of cover in place so members are properly protected,” Alistair says. “Marsh Commercial reviews current insurance to compare the cover, service and price with what it can arrange. We have set up a specialist team, who are there to talk through the finer details of the covers to ensure members are only paying for the exact cover they need. This offers real peace of mind, knowing that should the worst happen and they need to claim, they are protected.”
Executive members receive 10% off with Marsh Commercial, while trade and individual members get a 5% discount on the cost of their insurance (subject to minimum premiums).
“We are delighted to launch our exciting new partnership with Costco, with a variety of insurance products available for members,” says Alistair. “We can arrange insurance for many businesses; from shop keepers through to tradesmen, with more products coming soon. As a broker with access to a range of specialist insurers, we want to save members any hassle from buying insurance.”
“We’re looking forward to growing our partnership with Costco and expanding the range of insurance products for the benefit of members,” Alistair Brighton says.
VIU BY HUB PARTNERS WITH UNISON TO SIMPLIFY PERSONAL INSURANCE FOR HOMEOWNERS
VIU by HUB (VIU), a digital insurance brokerage platform, today announced a partnership with Unison, a home equity sharing company, to provide homeowners with the opportunity to compare insurance coverage quotes across carriers and receive trusted advice along the way.
"Too often we hear about homeowners who only look at their insurance policies when purchasing a new home. That's a miss as constantly changing dynamics in the housing market may impact the kind of coverage you need," said Bryan Davis, EVP and Head of VIU. "
By merging technology and human expertise, VIU helps homeowners manage their insurance policies easily so they can be more aware of their needs and confident the right coverage is always in place."
VIU, which is powered by Hub International Limited, a leading global insurance brokerage and financial services firm, combines a digital-first experience with live agent interactions to simplify the personal insurance process for all consumers. VIU consumers can shop for quotes, compare, purchase and manage policies across home, auto, condo, renters, life and pet while receiving trusted advice from experts.
Cognisure and Federato Announce Strategic Partnership to Drive Commercial Lines Underwriting Transformation
CogniSure AI, a leading provider of insurance document extraction and analytics solution provider, has partnered with Federato, the industry's first RiskOps underwriting platform for P&C and Specialty insurance, to drive greater underwriting precision and productivity for commercial lines insurers.
CogniSure's Submission Insights platform unlocks insights trapped in unstructured documents such as loss runs, applications, schedules, and SOVs - in real time with the highest levels of accuracy. This enhanced submission data is integrated into Federato's RiskOps underwriting platform where it is put to use in the context of an insurer's own underwriting rules, appetite, and strategy, to help underwriters make better risk selection decisions faster and easier.
"Cognisure and Federato share a commitment to delivering meaningful innovation and time to value for insurers," said Sai Raman, Founder & CEO, CogniSure. "We are impressed by Federato's deep understanding of the daily challenges underwriters face in accessing the right data at the right time and the rapid pace at which they can deploy, configure, and integrate their platform into even the most complex environments. We're excited to partner with Federato to drive superior and efficient underwriting outcomes for our clients."
The pre-built integration between CogniSure and Federato will help insurers accelerate submission processing and time to quote while increasing underwriting capacity, productivity, and precision. The integrated offering will empower underwriters to focus on high-value tasks like risk analysis, decision-making, advising clients, and growing their book of business.
"Federato's RiskOps underwriting platform integrated with CogniSure's Submission Insights platform dramatically improves the speed and efficiency of commercial lines submission intake, risk selection, and underwriting," said Will Ross, CEO and Co-Founder of Federato. "This unique integrated offering, which brings best-in-class configurability to meet carriers where they are, is especially well suited for commercial insurers who struggle to respond to high volumes of submissions due to a fragmented and complex data landscape."
Shane Co. Partners with Jewelry Insurance Provider, Zillion, to Offer Customers New Coverage Options
Shane Co. customers can now instantly protect jewelry in-store purchases
Shane Co., a fourth-generation, family-owned fine jeweler since 1929, has announced its partnership with Zillion, a leading insurance company, to instantly provide customers with coverage for in-store purchases. Shane Co. is already recognized as an industry-leader for its free lifetime warranty that covers the center stone, resizing, and maintenance. Now, customers will be provided the option to add on total loss and theft coverage for every purchase of fine jewelry.
Securing fine jewelry insurance safeguards not only the material worth of precious gems and metals but also the profound sentiments they hold. Jewelry insurance offers a brilliant shield, safeguarding the legacy of exquisite craftsmanship and cherished memories.
Zillion’s insurance is embedded into a retailer's point of sales system, making the experience for the retailer and the customer seamless. Starting June 15, 2023, Shane Co. customers will be given the option of insuring their purchase in-store at any of Shane Co.’s 21 stores nationwide.