News
Exclusive: Advent explores sale of car insurance software vendor CCC
Private equity firm Advent International is exploring a sale of CCC Intelligent Solutions Holdings Inc (CCCS.O), a provider of software to the car insurance industry that has a market value of $7.1 billion, people familiar with the matter said on Friday.
Investment bank Morgan Stanley (MS.N) is advising CCC on its talks with potential acquirers, which include other buyout firms, the sources said, adding that no deal is certain.
Verisk Launches First Predictive SRCC Data Model for Political Violence Insurers
Verisk Maplecroft, the risk intelligence business arm of Verisk, has launched a new predictive strikes, riots, and civil commotion (SRCC) data model, providing forecasts for thousands of global locations on the potential for damaging civil unrest events to emerge.
Developed for political violence underwriters, exposure analysts, modelers, and specialty reinsurers as part of the Lloyd’s Lab accelerator programme, Verisk Maplecroft’s new SRCC Predictive Model offers insurers an entirely new approach to how they assess and price these risks and is unlike anything currently available to the market.
“Insured losses linked to major bouts of unrest have reached new highs in recent years, while our data tells us that in the last 12 months, SRCC risks have risen in over 50% of countries,” says Verisk Maplecroft’s Head of Risk Analytics, Sam Haynes. “As these risks expand, so too does the need for granular, forward-looking data that provides valuable insight into exposures.”
Commentary/Opinion
[Ed. Note: Recommended] Artificial Intelligence #AI: Your New Digital Overlord in 2023?
What movie did you watch over and over as a kid? For me, it was Star Wars. I remember going to the theater and watching it probably 3 times in a row, and doing that for many weeks in a row. I was fascinated by the story line, the special effects, and it all seemed so real. Who didn’t want to be as cool as Hans Solo, or have C3PO as their trusted friend?
The craze around Artificial intelligence (AI) reminds me of the craze around Star Wars. AI is taking the insurance and general business world by storm, promising to revolutionize everything from supply chains to customer service. But is this clever new technology a savior or the Empire in disguise?
In this overview, we’ll explore what AI is, what it definitely isn’t, and how leaders like you can start harnessing its power without accidentally enabling the robot uprising.
Kaenan Hertz, Managing Partner, Insurtech Advisors, LLC
Trends for the Future of Insurance
The idea of ‘connecting’ has become more meaningful in recent years. After we collectively shutdown during the early days of the pandemic, isolation left us longing for connection…longing to travel and to gather.
This year was effectively the year corporate travel and industry events returned in full swing, and as someone who enjoys engaging with colleagues and clients in person, it’s been invigorating. At Verisk, we recently wrapped up our fourth major hosted event of the year with our Verisk Insurance Conference in London, where our theme was Connect What Matters.
Lee Shavel, President and CEO, Verisk
Risk & Insurance - Tackling Risk Head-On
Given how difficult it is for them to obtain insurance, NFL teams must assume a great deal of risk — but the league is highly proactive at managing it.
IT’S NO SECRET that professional football has struggled to find insurers willing to underwrite its risks, particularly the risk of injury to players.
Deeper understanding of chronic traumatic encephalopathy has left the league unable to insure against head trauma, and outside of state workers’ comp programs, only one carrier is willing to cover NFL teams.
Meanwhile, the players themselves are more capable of inflicting injury than ever.
"Players are a lot stronger than they were in the ’60s, which means stronger impact, bigger injuries," explained David Chmiel, SVP, national director claims, North America, HUB International, who has 23 years’ experience in sports risk management.
What lessons can U.S. insurers learn from China's experience with EVs?
The Chinese market saw 4.5M EVs sold through the first half of this year, nearly six times more than the U.S. market’s total.
According to LexisNexis Risk Solutions’ internal analysis of claims data in the Chinese market, claims frequency of EVs is on average 56% higher and claims severity on average 52% higher, than those of ICE vehicles across all vehicle price ranges.
As electric vehicles begin to take hold in the United States, automotive stakeholders are finding that they are often building the plane while flying it. Automakers are experiencing tremendous challenges in ramping up their EV production capacities due to talent shortages and supply chain challenges. Charging infrastructure is being deployed just a few steps ahead of demand. And insurers are finding that with each claim comes new lessons for how to cover these exciting new EV risks.
Yet this new era of driving does not have to be approached blindly. With some 4.5 million EVs sold in China just in the first seven months of 2023 — nearly six times more EVs sold in the U.S. — auto insurers in the U.S. have a unique opportunity to learn from our counterparts in China. Some of the lessons learned include how the risk profiles of EVs differ from those of internal combustion engine (ICE) vehicles and how new approaches are required toward underwriting EVs and handling claims involving electric vehicles.
Xiaohui Lu, Ph.D., serves as the vice president of global business development, new energy vehicles, at LexisNexis Risk Solutions.
InsurTech/M&A/Finance/Collaboration
Top 10 Innovative Insurtech Services: InsurTech Digital's Expert Picks
As insurtechs proliferate the market to streamline insurance processes, we look who is offering the most innovative insurance-types on the market today
With insurtechs springing up left, right, and centre, it can get overwhelming when trying to pick out the most innovative suppliers and products on the markets from the rest of the field.
Worry not, InsurTech Digital has done the hard work for you. Below are our Top 10 insurtech products and services providers.
Coaction Global Raises US$200 Million in Funding to Boost Transformation into Full-Service Specialty Insurance Provider | Insurtech Insights
Private specialty insurance group, Coaction Global, has secured approximately US$200 million in a recent capital injection to propel its evolution into a comprehensive specialty insurance provider.
The funding round was predominantly led by its existing investors, TowerBrook Capital Partners LP and Further Global Capital Management.
Formerly known as ProSight Specialty Insurance Group, Coaction’s transformation journey is characterized by the seamless integration of product offerings, analytical prowess, and underwriting expertise, bolstered by profound industry insight and strategic collaborations.
Presently, Morristown, New Jersey-based Coaction boasts an impressive annual premium underwriting portfolio, surpassing $1 billion, spanning various sectors such as casualty, excess casualty, multiline, executive lines, property, entertainment, and binding authority.
In a significant move last year, Coaction joined forces with insurance technology provider Duck Creek to undertake a vital upgrade. This initiative involved transitioning its core policy, billing, and commercial templates from on-premises services to a more agile cloud-based Software as a Service (SaaS) model, exemplifying its commitment to innovation and modernization.
“This new capital will support our continued growth and demonstrates the strong ongoing support of our investor group,” said Coaction CEO Jonathan Ritz. “We have made significant progress executing our transformation plan over the past two years and continue to see abundant opportunities in the market to deploy the additional capital in a prudent and disciplined manner.”
Delos Insurance Raises $7.3MM in Seed Extension Round, Led by IA Capital Group
Delos Insurance Solutions, which uses wildfire science and satellite imagery expertise to solve homeowners' wildfire insurance availability issues, today announced a $7.3 million seed extension round. The funding enables the company's expansion in the California homeowners' insurance market.
The seed extension round was led by IA Capital Group with participation from Blue Bear Capital; Gallatin Point Capital; Generation Space through Seraphim Space Investment Trust PLC; Avanta Ventures, the corporate venture arm of CSAA Insurance Group; Red Dog Capital; DNX Ventures; Robert Glanville; and Jonathan Crystal.
As large national carriers are reducing their California homeowners' exposure, Delos is doubling down on its commitment to the market by working with its committed carrier partners to dramatically expand insurance options for homeowners struggling to find coverage.
New funding allows company to provide further relief to wildfire-stressed CA homeowners insurance market
The Delos approach vertically integrates its wildfire science expertise and data from its full suite of wildfire models. This empowers the company to pinpoint properties in "stressed" areas – ones the traditional market is avoiding due to potential wildfire concerns - that do not pose a high risk of loss and offer those homeowners full insurance coverage. To date, not a single home insured by Delos has suffered a wildfire loss and they have never non-renewed a home for wildfire exposure.
Spirit Airlines Taps Cover Genius to Introduce Protection to International Travelers
Guests to benefit from simple, flexible protection and a digital claims process with instant claims payments in any currency or language
Cover Genius, the insurtech for embedded protection, today unveiled a partnership with Spirit Airlines.
By integrating with XCover, Cover Genius’ award-winning global distribution platform, Spirit Airlines Guests who are non-US and non-Canadian citizens have the option to purchase personalized embedded protection, backed by a speedy claims process, for the first time.
“We’re committed to providing our Guests with the best value in the sky, unbundled fares and customizable travel options,” said Rana Ghosh, Vice President of Omnichannel Sales at Spirit Airlines. “Partnering with Cover Genius allows us to further enhance our Guest experience, offering Guests in multiple regions tailored travel protection for any destination.”
As the chosen insurtech partner for some of the world’s largest airlines, Cover Genius enables its partners to offer tailored protection at checkout that can be dynamically bundled and unbundled to suit each customer's unique needs. Its licenses or authorizations in over 60 countries and all 50 US states, allow partners to seamlessly protect customers from any country, helping them scale internationally.
Beazley introduces innovative tornado crisis insurance
Beazley, the leading specialty insurer, has partnered with Sola Technologies and Spinnaker Insurance Company to provide the first admitted parametric tornado disaster benefit insurance for homeowners. The innovative Tornado Crisis product leverages National Weather Service (NWS) data to automatically initiate a fast and straightforward claims process.
EMEA
Insurtech UK appoints first-ever CEO
Insurtech UK has today announced the appointment of its first-ever CEO, as it looks to drive forward its mission of transforming insurance through technology.
The move will see Melissa Collett taking the reins of the InsurTech trade association with immediate effect, as the company looks to the UK into a global leader for innovation in the space.
In addition, Collett will support the further development of Insurtech UK’s membership base – which currently consists of over 100 companies, including 100 InsurTech businesses and 30 partners both from the traditional insurance space and industries which serve the insurance market – while strengthening its existing network and collaboration between insurers and InsurTechs.
Speaking for the first time since her appointment, Collet said: “This is a crucial time for the sector. AI and tech innovation is firmly on the government agenda and the UK ecosystem is uniquely placed to transform the way insurance works.
“I have seen the exponential growth of the sector firsthand and how it can make a real difference to consumers and businesses. The recent report that our partners McKinsey & Co produced around the sector, outlines that growth opportunity. I am very excited about leading an organisation that truly represents the future of insurance.”
Events
Reuters Events: The Future of Insurance Canada 2023 | November 15-16 | Toronto
Canada’s Most Senior Insurance Event: Customer-Centred. Growth-Driven. Tech Empowered
Act now to optimize tech, enhance retention, and nurture growth. Join 300+ decision makers at Canada’s most senior and influential insurance event, Reuters Events: The Future of Insurance Canada 2023 (November 15-16, Toronto). The must-attend event for Canadian insurance executives to have a stake in shaping the future of insurance. Register [here] (https://events.reutersevents.com/insurance/future-insurance-canada/register)
Insurance today is anything but as usual. Spiraling costs, accelerated customer expectations, and mounting tech debt leave carriers struggling to reach profit targets. Failure to reimagine digital experiences, develop agile products, and inject innovation today means carriers risk extinction tomorrow.
Grasp the opportunity today’s uncertainty offers, and take the steps needed to deliver seamless omni-channel CX, expand into new markets, and deploy transformative tech to revolutionize the entire insurance value chain:
- Forge a 360° view of every customer to deliver seamless experiences that surpass expectations and create unrivalled customer loyalty
- Navigate profitability headwinds by combining resilient leadership with robust growth strategies to accelerate product development and enter new markets
- Rapidly deploy tech advancements in AI, telematics, and the cloud to drive sophisticated insights from data analytics and shrink costs
Have you got everything set for your transformation? We do!