News
Commissioner talks of plans to ease California’s insurance crisis
Solutions to streamline rate review process on the horizon, he says
The California Department of Insurance has revealed that it is moving forward with “a package of regulatory solutions” to streamline its rate review process.
This plan was brought up in a statement by insurance commissioner Ricardo Lara after a controversial bill to ease California’s embattled homeowners market failed to pass through the state legislature.
The bill had been panned by consumer advocacy groups, stating that it would have led to significant premium hikes. They also called it a bailout for the industry and criticized how the public has seemingly been left out of the discussions regarding the proposal.
“It is particularly offensive that this proposal is being rushed through in secrecy during the final weeks of the legislative session,” the groups said in a letter addressed to Governor Gavin Newson.
“A plan to bail out the insurance industry and make Californians pay demands a thorough public debate, but the details of this proposal have yet to be seen in public.”
Calendar, Size of Safelite Insurance Fraud Case Changes
Calendar, Size of Safelite Insurance Fraud Case Changes
Several developments have occurred in the case by Plaintiff Brian Williams and the people of California alleging insurance fraud against Safelite Group Inc. (SGI), Safelite Fulfillment Inc. (SFI), and Safelite Solutions Inc. (SSI).
The suit, which Williams filed late last year, accuses the three entities of fraud for using less expensive mouldings than they charged the insurers for and charging for sanitation wipes that were either unused or not used in the quantity the insurers were billed.
The most significant was the order by the judge designating the suit as a complex case. Complex cases require “ exceptional judicial management to avoid burdening the Court, and the litigation is exempted from California’s fast-track trial rule. Many class action suits are considered complex.
A trial-setting conference is now scheduled for December 6, 2023. The initial case management conference has been continued to January 18, 2024 as the Court said the Plaintiff failed to file proof of service of summons and complaints on all the Defendants.
AGRR/glassBYTEs Editor editor@agrrmag.com
AI in Insurance
New Study by Solera Reveals More Than Half of Small Fleets Are Prioritizing AI for Operations
Solera Holdings, LLC, the global leader in vehicle lifecycle management, today released new research of small fleet owners, operators, and drivers identifying current pain points and future opportunities in the industry.
To uncover insights on how small fleets are feeling about their industry and top opportunities moving forward, Solera conducted a survey of 300 small- and medium-sized fleet decision makers in July 2023. The findings show that smaller fleets are feeling the impacts of the current economic headwinds and personnel issues, but do see ways in which technology – specifically AI – can streamline operations and help bottom lines.
“While the fleet industry is facing uncertainty as a result of soaring costs and continued disruption, technology is continually emerging as a differentiator for those looking to stay ahead,” said Mark Freitas, Vice President, Product Management, Solera.
“Our survey shows that small and medium-sized fleet managers are interested in cutting-edge tech like AI and ML to optimize their operations and future-proof their businesses and allow them to compete at a larger scale.”
Commentary/Opinion
Learning From Failure
Learning from failure is hard for business leaders, but it is essential for success. So, go forth and fail fabulously!
Every successful entrepreneur or CEO has dealt with failure at some point. It took Thomas Edison 10,000 attempts to perfect the light bulb, 36 publishers rejected Arianna Huffington and Milton Hershey had three candy-related ventures fail before he founded Hershey's.
Whether you're running a small startup or a Fortune 500 corporation, shifting your thinking to learn from failure is one of the hardest lessons for most business leaders but also one of the most essential for future success.
As Franklin D. Roosevelt once said, "A smooth sea never made a skilled sailor."
Learning from failure is a crucial skill that can lead to personal growth, resilience and improved decision-making.
Mike de Waal is president and founder of Global IQX
APCIA: Commonsense Reforms Needed for ‘Dark Money’ Third-Party Litigation Lending
In support of recent efforts at the state and federal levels of government to curtail third-party litigation funding, the American Property Casualty Insurance Association has asked the House Committee on Oversight and Accountability to consider disclosures.
“As insurance protecting civil defendant consumers and businesses must be disclosed in nearly all jurisdictions and in the U.S. District Courts, it is indeed peculiar that those backing litigation financially are not similarly obligated to disclose their involvement,” wrote Nat Wienecke, APCIA’s senior vice president of federal government relations, a letter to the committee who met on the matter Sept. 13.
Litigation funding, largely unregulated but for some states’ disclosure laws, is turning civil justice into a commodities market that serves investors – not plaintiffs, Wienecke said.
“Third party litigation funding is a dark money lending practice that allows unknown investors with no ties to the injured person to invest in lawsuits, and in some cases falsely inflate medical costs, for their own profit,” he added in a statement from the trade association.
Embedded insurance is here. Is the industry ready?
EY’s David Connolly on the window of opportunity provided by embedded insurance.
Embedded insurance represents both a significant growth opportunity and possibly the greatest competitive threat that carriers will see in a generation, and that’s true for every line of business.
The embedded revolution is well underway for vehicle and commercial property insurance, with significant EY involvement in several initiatives led by non-insurers, what we call ‘insurgents’. Many more products, including those related to pricing climate risk, will soon shift to embedded models. EY research has found that embedded channels will capture nearly one-third of all insurance transactions by 2028.
Traditional insurers, or ‘incumbents’, can still capitalise on embedded opportunities. But they must act urgently to make the necessary operational and technological changes.
Those that do will be able to launch innovative products at speed, create new revenue streams and lower customer acquisition costs. They will learn to compete with insurgents that have distinct advantages, including strong brands, ample capital, closer proximity to customers and data, and the ability to move faster than incumbents.
InsurTech/M&A/Finance💰/Collaboration
Cowbell Partners with Zywave to Expand Distribution
The partnership as powered by Herald, a digital infrastructure provider that connects software developers to commercial insurance carriers through a single API.
Cowbell (Pleasanton, Calif.), a provider of cyber insurance for small- and medium-sized enterprises (SMEs), has announced a partnership with Zywave (Milwaukee, Wisc.), a provider of insurance distribution solutions.
Cowbell describes the partnership as powered by Herald (Boston), a digital infrastructure provider that connects software developers to commercial insurance carriers through a single API, and leverages Cowbell’s technology and individualized coverage options for a superior customer experience through Zywave’s expanding interface for quoting commercial and E&S insurance.
Cowbell characterizes the collaboration as marking the first standalone cyber insurance offering on Zywave’s Hub, which provides MGAs, wholesale brokers, and retailers, with quicker access to cyber insurance products, according to a Cowbell statement.
Green shoots emerge as embattled insurtech sector recovers from brutal 2022
A shift to a more selective investor base with insurance expertise is enabling a recovery – albeit a patchy one – in the insurtech sector this year following the brutal repricing of 2022.
- The Insurer public insurtech composite up 42.1% YTD, after losing 57.7% in 2022
- Root (+156.6%) and Goosehead (+112.4%) see most significant YTD rises after recording the biggest falls in 2022
- EverQuote sheds 58.3% having been the most resilient stock last year
- Q2 total insurtech funding falls 34% (with respect to Q1) to lowest level in five years, according to Gallagher Re
- Early-stage funding down by 48%, the highest decline since Q3 2017
ORIGAMI RISK ACQUIRES DAIS, EXPANDING ITS INNOVATIVE P&C INSURANCE SOLUTIONS
Origami’s Multi-tenant SaaS Platform and Dais’ No-Code Solutions Propel Speed to Market, Product Creation and Lifecycle Management for MGAs, Insurers and Reinsurers
Origami Risk, the industry-leading risk, safety and insurance Software as a Service (SaaS) technology firm, today announced it has acquired Dais Technology, a leading provider of no-code insurance technology. The acquisition increases Dais’ market reach and client support capabilities and expands Origami’s innovative suite of property and casualty insurance solutions for managing general agents (MGAs), insurers and reinsurers. Terms of the transaction were not disclosed.
Dais will operate as a subsidiary of Origami and will continue to be led by its co-founders Jason Kolb, Aaron Larson and Milos Dedovic.
“Origami continues to experience rapid growth from our ability to provide innovative solutions for the testing and delivery of new products and for capitalizing on market opportunity,” said Bob Petrie, CEO, Origami Risk. “Dais complements our core P&C insurance solutions with no-code, storefront and rating-as-a-service capabilities. This acquisition will allow the Dais team to double down on their technology and industry partnerships to bring more value to all insurance ecosystem participants. We are pleased to welcome their talented team to Origami and look forward to an integration that will bring more opportunities to our clients, our people and new areas of growth for our firm.”
“We are delighted to join forces with Origami Risk to serve a broader audience within the insurance industry,” said Jason Kolb, President, Dais Technology. “Our firms have shared values, strong commitments to our people and clients and similar collaborative cultures. We are excited about working together to continue to drive industry-leading innovation.”
Zurich unit announces collaboration, names global head
Zurich Insurance Group’s Zurich Resilience Solutions has partnered with KPMG Switzerland while also appointing Dirk De Nil (pictured) as global head of the commercial risk advisory and services unit.
Strategic collaboration
The tie-up is aimed at providing comprehensive climate change advisory services by combining Zurich Resilience Solutions’ physical risk assessment with KPMG’s transition risk assessment capabilities.
The offering features a customised climate scenario analysis designed to identify material exposures and assess financial impacts across the value chain. Initially available in Switzerland, it will subsequently be rolled out across Europe, the Americas, and Asia-Pacific regions.
“Our collaboration with KPMG is a great example of how we are delivering on our commitment to use our capabilities to help customers around the globe tackle the challenges of climate change,” commercial insurance chief executive Sierra Signorelli said in an emailed release.
Beam Benefits Closes on $40 Million Fundraise
Beam Benefits, the digitally-led employee benefits company, today announced that it raised $40 million, bringing the company’s total funding to over $200 million and increasing its valuation by 25% since the company’s Series E raise in early 2021.
The round was led by existing investor Georgian, with broad sponsorship from a combination of new, existing, and strategic partner investors.
Beam is on track to grow its revenue 40% year-over-year with its expanded benefits portfolio and continued investment in new platform capabilities. Over the past 18 months, Beam has launched six new benefits products and plans to add more in-demand products in the future.
Webinars/Podcasts/Interviews
Live Webinar | From drivers to data: Insurance for the autonomous world | Tuesday, October 5, 2023 | 5 pm ET
From drivers to data: Insurance for the autonomous world
US/Canada expert panel. Register now here
Given an increasing number of autonomous, electrified and connected vehicles on the roads, there is growing pressure to reconsider regulatory issues around privacy, cyber security and liability. Jurisdictions around the world have taken different approaches to striking a balance between motor vehicle liability and product liability, specifically when autonomous, electrified and connected vehicles are involved in collisions.
Join our panel of experts as they discuss the state of regulatory developments abroad and how Canada compares, the liability framework in Canada and abroad, and the current status of these vehicles in Canada, including regulatory, privacy and cyber concerns.
Canada
How is AI impacting the insurance industry?
President shares his thoughts on navigating opportunities and risks
Artificial intelligence (AI) is reshaping industries across the board, and the insurance sector is no exception. Cameron Copeland, president of Specialty Program Group Canada, recently shared his insights on the impact of this change, emphasizing the dual nature of its effects.
In an interview with IBTV, Copeland discussed how AI brings opportunities to streamline workflow while introducing new risks that demand careful management.
According to Copeland, embracing new tools and technologies is vital to staying competitive and providing improved services to clients.
He said AI would undeniably help firms enhance their operational efficiency, given its ability to automate routine tasks, accelerate decision-making processes, and reduce administrative overhead.