News
![Telematics and usage-based insurance on the rise: J.D. Power | Digital Insurance](https://dxj7eshgz03ln.cloudfront.net/production/link/image/888404/twenty_by_nine_extra_large_215d68e5-932f-47a2-a656-f3ef2e0aad85.jpeg)
Telematics and usage-based insurance on the rise: J.D. Power | Digital Insurance
Customer satisfaction with auto insurance dropped 12 points, on a 1,000 point scale, year-over-year, largely driven by dissatisfaction with the cost of premiums, according to J.D. Power's 2023 U.S. Auto Insurance Study.
Satisfaction with the price that customers pay for their auto insurance declined 25 points in the first half of 2023. Auto insurance price increases are higher, at 15.5%, than the other categories reported by the Consumer Price Index, which were an average of 4.9% in the past year.
J.D. Power reports that customers' unhappiness with price increases is driving more carriers to offer usage-based insurance programs and telematics products, and more consumers to adopt them. Participation rates in UBI programs have more than doubled since 2016, from 8% to 17%. New customers have a UBI participation rate of 26%, according to the study.
"That's a big number – one in four of the people who are buying a policy today are signing up for UBI," said Mark Garrett, director of insurance intelligence at J.D. Power.
![Road Risk Alert: Labor Day Sees Heightened Distracted Driving and Speeding - Cambridge Mobile Telematics](https://dxj7eshgz03ln.cloudfront.net/production/link/image/888577/original_ratio_extra_large_9398bddf-34d7-40ac-bc35-5e1276604dbf.png)
Road Risk Alert: Labor Day Sees Heightened Distracted Driving and Speeding - Cambridge Mobile Telematics
Labor Day weekend marks the unofficial end of summer. Many Americans hit the roads for one last summer trip. In fact, CMT’s data shows that the average trip length increases on Labor Day by 5%, nearly 50 seconds more.
Like July 4th and other holidays with increased travel, Labor Day sees heightened levels of risky behaviors like speeding and distracted driving.
To understand the level of risk US drivers will face on Labor Day this year, we analyzed distracted driving and speeding trends the 30 days before and after Labor Day from 2020 through 2022, spanning 20 million trips.
Labor Day sees a 34% increase in speeding
Annual New Car Ownership Costs Over $12K
AAA reports that the cost of vehicle ownership is up over $1000 a month for the first time. AAA’s Your Driving Costs (YDC) are up sharply this year has been a reliable data source for the expenses associated with owning and operating a brand-new vehicle for more than seven decades.
Based on the latest figures, the average cost of owning and operating a new vehicle in 2023 has increased significantly, with an annual expense of $12,182 or a monthly cost of $1,015. This is a sharp increase from 2022 when the average yearly cost was only $10,728, or $894 monthly.
It’s important for car buyers to clearly understand the costs associated with owning a new vehicle,” said Greg Brannon, AAA’s director of automotive research. “Due to global supply chain issues and constrained inventory of new vehicles, car prices rose dramatically in 2022. And while the situation continues to improve, the spillover effects are keeping prices high.”
![Commercial property insurance market to hit US$724bn by 2032 – report](https://dxj7eshgz03ln.cloudfront.net/production/link/image/888684/original_ratio_extra_large_02fe8824-1d72-4343-a6ac-e5d79036368a.jpg)
Commercial property insurance market to hit US$724bn by 2032 – report
The commercial property insurance industry generated US$254.9 billion in 2022 and is projected to reach US$724 billion by 2032, with a compound annual growth rate (CAGR) of 11.3% from 2023 to 2032, according to a new report from Allied Market Research.
The growth of the commercial property insurance market is driven by factors such as increasing awareness of risk management among businesses, regulatory requirements mandating insurance coverage, and the rise in natural disasters and man-made incidents. Additionally, the expansion of businesses globally contributes to the demand for property insurance.
However, the market faces challenges such as insurance fraud, volatility in property values, and the complexities of underwriting large-scale properties, the report said. Despite these challenges, opportunities exist in the adoption of advanced technologies like artificial intelligence and data analytics for risk assessment, the development of customised insurance products, and the potential for market expansion in emerging economies with relatively low insurance penetration.
![Fraudulent auto insurance claims highlight need for in-person inspections | Repairer Driven News](https://dxj7eshgz03ln.cloudfront.net/production/link/image/888696/original_ratio_extra_large_f018ed7f-3f53-450c-a596-92b7d9c0538f.jpg)
Fraudulent auto insurance claims highlight need for in-person inspections | Repairer Driven News
A newly released survey is shedding light on insurance fraud, reporting that 35% of auto policyholders have submitted claims for preexisting damage.
ValuePenguin’s survey of nearly 1,950 consumers found 60% of Millennials have filed insurance reports for preexisting damage to their vehicles; 27% of Generation Xers and 14% of baby boomers have done the same.
Divya Sangameshwar, a ValuePenguin insurance expert, said such fraudulent claims speak to the importance of insurers conducting thorough, in-person vehicle inspections.
“In addition to giving insurers a complete picture of the status of the vehicle, regular in-person inspections can also prevent claims padding, or omissions on insurance applications,” Sangameshwar told Repairer Driven News. “Insurers can also use in-person inspectors to communicate the importance of being truthful on insurance applications, and the consequences for lying — especially to their younger policyholders.”
Repairers have previously spoken of the need for conducting in-person inspections rather than making photo-based estimates. They’ve said that damage detectable by in-person appraisers can be overlooked in photos.
Commentary/Opinion
![USAA CEO Wayne Peacock on Hurricane Idalia, rising insurance rates and Insurance coverage](https://dxj7eshgz03ln.cloudfront.net/production/link/image/888683/original_ratio_extra_large_fd8ce8c0-7b46-4111-a644-f366845062a8.jpg)
USAA CEO Wayne Peacock on Hurricane Idalia, rising insurance rates and Insurance coverage
USAA CEO Wayne Peacock joins 'Power Lunch' to discuss Hurricane Idalia's impact on businesses and homes as insurers gear up for damages.
![Automobile Claims Process Gets Digital Makeover With Cues From Amazon and Domino's](https://dxj7eshgz03ln.cloudfront.net/production/link/image/888562/original_ratio_extra_large_865fc8d7-7c39-470c-beb3-e5294ee13ed2.jpg)
Automobile Claims Process Gets Digital Makeover With Cues From Amazon and Domino's
The auto claims process is changing as manual steps and paper-based interactions are shifting to mobile and digital channels.
CCC Intelligent Solutions Vice President Kelli Svymbersky and The Hanover Insurance Group Assistant Vice President of Claims Transformation Lori Pon said there are plenty of avenues from which insurers and providers can draw cues, noting that the simplicity and ease of ordering from eCommerce firms — say Amazon — or ordering from Domino’s can serve as a template.
“As the insurance industry moves more and more to those types of experiences, embedding payments is the next logical step,” said Svymbersky.
CCC Intelligent Solutions Vice President Kelli Svymbersky and The Hanover Insurance Group Assistant Vice President of Claims Transformation Lori Pon
InsurTech/M&A/Finance💰/Collaboration
![MotorDNA Unveils Cutting-Edge Insurance Marketplace: Revolutionizing Auto Dealerships and Auto Insurance Industry](https://dxj7eshgz03ln.cloudfront.net/production/link/image/888578/original_ratio_extra_large_1ffc779f-d99c-4ca2-92af-74813d7bddf4.jpg)
MotorDNA Unveils Cutting-Edge Insurance Marketplace: Revolutionizing Auto Dealerships and Auto Insurance Industry
MotorDNA, a trailblazing leader in providing analytics-ready vehicle build data, proudly introduces its groundbreaking product, the MotorDNA.
MotorDNA, a trailblazing leader in providing analytics-ready vehicle build data, proudly introduces its groundbreaking product, the MotorDNA Insurance Marketplace. With a visionary approach, this digital Marketplace connects auto dealerships, digital car-selling platforms, and insurance carriers, creating an ecosystem that transforms how insurance is quoted, purchased, and experienced during the vehicle buying process.
MotorDNA transforms how insurance is quoted, purchased, and experienced during the vehicle buying process.
Co-Founder & CRO Tom War emphasized, "Our mission with the MotorDNA Insurance Marketplace is to empower auto dealerships and insurance carriers. Auto dealerships have a unique opportunity to increase their revenue by 3-7% on every vehicle sold. By offering consumers a direct line to insurance quotes tailored to their chosen vehicles, dealerships can enhance consumer loyalty, lower the total cost of vehicle ownership, and take a confident stride into the future of connected car data revenue."
![Instability at Arturo](https://dxj7eshgz03ln.cloudfront.net/production/link/image/888576/original_ratio_extra_large_3d3d4d44-6744-4d91-9ec1-c2424953a2c1.jpg)
Instability at Arturo
Based on several Glassdoor reviews, key issues become apparent regarding the company's operations and management.
At Arturo, a property analytics startup specializing in leveraging machine learning for real estate data, change appears to be the only constant. According to our sources, the company has seen another leadership transition. CEO Greg Oslan has reportedly left, making room for Marty Smuin, a member of the startup’s board of directors. This marks the third CEO change for the company.
![Vesttoo "a depressing reminder of what can go wrong" - VC Andreessen Horowitz - Artemis.bm](https://dxj7eshgz03ln.cloudfront.net/production/link/image/888700/original_ratio_extra_large_5ad6802f-a0ec-4357-af3f-48dc60743c62.jpg)
Vesttoo "a depressing reminder of what can go wrong" - VC Andreessen Horowitz - Artemis.bm
The Vesttoo issues of invalid, fake or fraudulent letters of credit (LOCs) backing reinsurance deals provides "a depressing reminder of what can go wrong"
The Vesttoo issues of invalid, fake or fraudulent letters of credit (LOCs) backing reinsurance deals provides “a depressing reminder of what can go wrong” when compliance fails to identify risks, according to Joe Schmidt, fintech investment partner at venture capital giant Andreessen Horowitz.
Commenting on the Vesttoo debacle in an update to the tech startup community, Schmidt of Andreessen Horowitz explained that the situation has ramifications for insurance technology startups, or insurtechs, as it makes an already hard capacity market even harder for them. Andreessen Horowitz, or a16z as it’s now commonly also known, is a venture capital firm founded by tech luminaries Marc Andreessen and Ben Horowitz in 2009 in Silicon Valley and currently has somewhere around $35 billion in assets across its multiple venture funds.
As a result, it’s a VC firm that is listened to by the wider, global tech startup community.
Events
![Connected Claims USA 2023 | Austin, TX | September 26-27, 2023 | Reuters Events Insurance **COMPLIMENTARY $500 VIP UPGRADE!**](https://dxj7eshgz03ln.cloudfront.net/production/link/image/888701/original_ratio_extra_large_a8096847-ec0a-4d82-88f5-77139974c135.jpeg)
Connected Claims USA 2023 | Austin, TX | September 26-27, 2023 | Reuters Events Insurance **COMPLIMENTARY $500 VIP UPGRADE!**
🔍 Ready to engage in crucial conversations with Chief Claims Officers, Heads of Claims, SVPs in Claims, and top-tier decision-makers from leading US carriers?…
Look no further than Connected Claims USA 2023!
Join us next month in the Live Music Capital of the World.
Act now – booking this week scores you a complimentary VIP upgrade from a business pass worth $500! Get the full scoop here. 🎯
With your VIP pass you’ll be able to:
- ✔️ Gain early access to our networking app
- ✔️ Catch up on slides and recordings from all conference stages
- ✔️ Save time with fast-track VIP registration and head straight to the VIP lounge to network with our C-Suite speakers and attendees
- ✔️ Access our On-Demand Hub containing all Reuters Events 2023 insurance content
People
![Aviva selects new CEOs for Canada and UK&I GI | Insurance Business Canada](https://dxj7eshgz03ln.cloudfront.net/production/link/image/888412/original_ratio_extra_large_89ba04e4-0919-4860-9368-2ea09a132d24.png)
Aviva selects new CEOs for Canada and UK&I GI | Insurance Business Canada
It’s a big morning for the British insurance giant Aviva which has announced the appointment of Jason Storah as CEO of its UK & Ireland General Insurance business and Tracy Garrad as CEO of Aviva Canada.
Storah (pictured left), whose appointment is subject to regulatory approval, is currently CEO of Aviva Canada, a role he has held for four years, in a period described by Aviva in a Press release as one “defined by progress”. His tenure saw GWP growth of 34% while Aviva Canada grew to become the number two general insurer in the Canadian market.
With almost two decades of experience at Aviva to his name, Storah has served the insurer in a variety of roles including as chief distribution officer, where he oversaw broker distribution, partnerships – including RBC Insurance – as well as Aviva’s direct insurance business and marketing.
In his new role, Storah will continue to report to Aviva Group CEO Amanda Blanc and to be a member of Aviva’s group executive committee, which he has been since 2020.
Meanwhile, Garrad (pictured right) will succeed Storah as CEO of Aviva Canada, taking up her new post on October 16, 2023 - subject to visa and regulatory approval. Aviva highlighted that Garrard has had a “distinguished career” taking on senior roles in the financial services, insurance and healthcare sectors.
She most recently served as CEO of AXA’s UK Healthcare business (formerly AXA PPP), and before that was CEO of HSBC’s Channel Islands and Isle of Man business, after four years as the CEO of First Direct Bank. Garrad is also a non-executive director of The London Stock Exchange Group plc. In her new role, she will also report to Blanc and is set to become a member of Aviva’s group executive committee on joining the company.