Wanted: startups looking to collaborate with Zurich on the future of insurance. First three editions have resulted in 30 ongoing collaborations globally  January 27th 2023

Wanted: startups looking to collaborate with Zurich on the future of insurance

• Zurich launches the fourth edition of its global startup competition, the Zurich Innovation Championship
• Startups can sign up here until Feb. 27 in five categories expected to shape the future of insurance
• First three editions have resulted in 30 ongoing collaborations globally

Innovation through collaboration remains the name of the game as Zurich Insurance Group (Zurich) launches the fourth edition of the Zurich Innovation Championship – the largest global open innovation contest with startups in the insurance sector. Following past successes, Zurich is inviting startups once again to compete for the opportunity to collaborate on solutions tailored to the needs of customers and the insurance industry.

“The Innovation Championship fosters a new way of thinking and allows us to get access to ideas and solutions we may not yet have ourselves,” said Ericson Chan, Group Chief Information & Digital Officer. “For the participants, it is an opportunity to grow their business and pitch technology-driven solutions that can help meet emerging and evolving customer needs."

Talking claims with AmFam, Plymouth Rock and Pie.

Digital Insurance spoke with three claims leaders about their plans to meet a challenging 2023 head-on.

Study: Social inflation causes up to 11% of medical malpractice losses

Social inflation accounted for between $2.4 billion and $3.5 billion of all medical malpractice losses between 2011 and 2021, according to new research released by The Doctors Company, the largest physician-owned medical malpractice insurer in the U.S.

“Our research shows that the pace of settlements larger than $1 million has accelerated, and large settlements are a significant driver of social inflation,” Robert E. White, Jr., president of The Doctors Company parent corporation TDC Group said in a prepared statement. The research further indicated that the amount of medical malpractice losses attributed to social inflation during the study period accounted for between 8% and 11% of all losses in that vertical.

Social inflation “is a reason malpractice premiums are rising for many physicians,” White said.

The Doctors Company defined social inflation as something that occurs when an insurer’s average claim amount grows faster than the overall inflation rate. “When that happens, insurers are forced to increase their rates and/or decrease coverage to keep up,” according to The Doctors Company.

The Insurance Information Institute (I.I.I.) notes that the factors driving social inflation can be difficult to pinpoint but are likely to include:

A New Approach to Embedded Insurance

The real opportunity requires introducing insurance at the point-of-design, rather than making it a bolt-on at the point-of-sale.

Embedded insurance is one of the most frequently explored topics in insurance today, yet its potential remains largely untapped. We are limited so long as we consider the concept purely with an insurance industry lens. Unlocking the potential of embedded insurance involves a mindset shift from "point-of-sale" to "point-of-design."

The embedded insurance model is not at all new. We define "embedded insurance" as any instance in which an insurance product is sold in conjunction with a non-insurance product. Examples include bancassurance, point-of-sale warranty products, life insurance sold prior to an airline trip and, increasingly, insurance products bundled with vehicles or higher-risk pastimes (such as insurance bundled with ski passes). The emergence of application programming interface (API) platforms has made it possible to bring insurance products closer to their non-insurance vehicles. In these cases, insurance is typically positioned as a "bolt-on" at a point-of-sale (either as an "opt in" or "opt out" choice).

Chris Bassett, senior director, Capgemini Invent.

What’s ahead in 2023—partnerships, consolidation, and disruptive technologies - Insider Intelligence Trends, Forecasts & Statistics

The news: The tough economic environment in 2022 didn’t spare the insurance industry, which saw dried-up funding, tighter budgets, and competitive pressures. This year’s economic outlook isn’t much brighter, but insurance firms are set to disrupt the scene with new partnerships and technological advances. Here are the top four trends we are watching in this space in 2023.

Trend 1: Partnerships form between startups and incumbents.

Competition between legacy insurers and new entrants is fierce, and each faces unique challenges from a tough economic environment and intense consumer demand.

Incumbents struggling with a digital transformation will look to startups that base their operations on new technologies to bring them up to speed. Meanwhile, the startups that are trying to get their feet on solid ground and reach profitability will turn to incumbents for an increased budget allowance and built-in customers.

Incumbents also bring their brand names with them, especially in very competitive markets like the UK. Startups that link up with these established incumbents have a head start at gaining consumer loyalty. One example is Lemonade’s partnership with UK-based incumbent Aviva. While Aviva is well-known in the UK, Lemonade’s popularity in the US hasn’t yet translated to the UK market.

'Out Front Ideas': 20 issues to watch in 2023

Out Front Ideas with Kimberly and Mark kicks off yearly with our popular 20 Issues to Watch webinar.

While there are certainly more than 20 issues to discuss, we focused on the high-impact matters relating to workers’ compensation, health care and risk management that need more attention. These are essential issues for every risk manager and insurance professional to monitor in 2023.

Out Front Ideas with Kimberly and Mark will host two live sessions in 2023, at the Executives in Workers’ Compensation Conference on April 25 in Anaheim, California and the WCI Conference on August 21 in Orlando, Florida.

3 insurance customer experience must-haves

The pandemic drove the insurance industry to undergo digital transformation at an unprecedented rate, as customers adapted to a fully digital experience. However, consumer research reveals that customer satisfaction has remained the same, if not declined. While companies are now more equipped than ever to serve customers, service still falls short, and the difference between the leaders and the laggards in customer experience is becoming even more apparent.

The health of a business depends on its customers. In an economic downturn, customer experience becomes even more important. Customers will still demand quality customer service, even if a company might struggle with declining revenue, budget cuts, and limited resources behind the scenes.

The key to success is to fuse operations with customer experience strategies — and approach it as a long-term strategy versus a short-term goal. Following, I share a few core lessons that I view as critical for businesses to apply to improving customer experiences in a digital world.