According to Statista, consumer spending on smart home products is forecasted to grow to more than $170 billion dollars by 2025. According to Deloitte’s 2022 Connectivity & Mobile Trends, the average household has a total of 22 connected devices  January 31st 2023

Using Personal Cloud to Create Value for Insurance Customers, Part II

With the rapid growth of devices in the home—smart phones, tablets, laptops and more—insurance companies can benefit by offering a total home digital protection package that protects consumer devices in addition to the content stored on the device.

In August of last year, I wrote an article about how insurers can integrate the personal cloud into existing insurance offerings to serve as an opportunity to strengthen customer relationships, reduce churn, increase renewals, and increase their bottom line. In this article, I will explore why insurance companies offering a total home digital protection package can benefit consumers by protecting their devices in addition to the content stored on consumer devices.

Consumers are looking for a trusted partner that can securely protect their digital content. Also, consumers need to know they have the flexibility to upgrade their device and their content will not be affected during the process. This is where insurers can step in and prove themselves to be extremely valuable as the trusted steward for their customers.

According to Statista, consumer spending on smart home products is forecasted to grow to more than $170 billion dollars by 2025. According to Deloitte’s 2022 Connectivity & Mobile Trends, the average household has a total of 22 connected devices. Insurance companies have a golden opportunity to offer a total home digital protection package that covers not only the devices against failures, but also protects content that is created and captured on these devices.

Jeff Miller, President and CEO of Synchronoss Technologies

Customers are ready for telematics motor insurance products: Swiss Re

There is a significant target market for telematics motor insurance products, a recent survey by IoT Insurance Observatory and the Automotive and Mobility Solutions team at Swiss Re has confirmed.

Telematic insurance products have been going through years of development and refinement, despite this they are not mainstream yet, Swiss Re explained.

But the survey, conducted in August 2022, revealed that the outlook of the current telematics market looks positive and shows clear directions in regards of customers’ needs and wants.

It also shows concerns around tracking and data usage. Feeling that data is shared safely and knowing how it is used, who can access it and for how long is a must for customers, analysts stated.

The survey was carried out in nine countries, including Canada, France, Germany, Italy, Portugal, South Africa, Spain, UK and the US; with a total of 10 000 policyholders, 2, 000 in the US and 1,000 in each of the other countries.

It found that, in all countries, younger individuals – mostly millennials (23–41 years old) and people in Generation X (42–57 years old) – are more attracted to telematic solutions, as well as more likely to recommend a telematics motor insurance app to a friend.

Distribution technology: Where personal lines insurers are investing today

We say it often here at SMA – the personal lines segment frequently leads the insurance industry with deploying new innovations, particularly within distribution.

Over the next five years, insurers focused on personal lines will likely continue to spearhead the distribution revolution through new technologies and channel strategies. Where insurers invest today to support distributors will set the stage for their channel partnerships in the future, either building solid bonds with agents/brokers and others or deemphasizing some channel partners.

SMA's new research report, "Distribution Technologies for Personal Lines: Carrier Plans in 2023 and Beyond," details findings from a survey of executives on the current state of digital capabilities offered to distribution partners, an assessment of the challenges and barriers to deploying new capabilities, and carriers' plans to put new digital sales and servicing capabilities into the market.

Mark Breading, Partner, Carrier Transformation

Insights: Four Tests For Insurers in 2023 -

Some insights from René Schoenauer, director product marketing, EMEA, Guidewire Software;

Being better prepared for instability

Becoming a Climate Change Risk Star

Big Tech Frenemies Now?

We have got to get cyber insurance right

And finally … Unpredictability is the prevailing theme of our current situation, and in these difficult times insurers can be a reliable and valuable partner to both businesses and consumers. Most insurers have the courage and ambition to step up to today’s challenges and will navigate stormy conditions because of their operational and strategic agility enabled by increased and smarter use of technology.

Average premium renewal rates up in most major commercial lines

Most major lines of commercial insurance saw quarter-over-quarter increases in average premium renewal rate change for the fourth quarter, Tampa, Florida-based Ivans Insurance Services reported Friday.

An exception was workers compensation, which remained negative.

In commercial property lines, the fourth-quarter premium renewal rate change averaged 7.95%, compared with 6.95% in the third quarter. The average premium renewal rate change reached its high for the quarter in December at 8.38%, with the quarter low in October at 7.55%.

Tesla EVs, Even Mildly Damaged, Being Written Off by Insurers

There were 120 Tesla Model Y electric vehicles listed in two large salvage auction houses recently, and the "vast majority" had under 10,000 miles on them, according to a report from the Reuters news service.

The insurance companies that covered these vehicles decided that even with so few miles on them, these Teslas aren't worth the $50,000 or so they sometimes cost to repair.

The cost to fix a car has gone up as the ease has decreased over the years, which has prompted a discussion over so-called Right to Repair laws, which would give owners more rights to fix the things they buy.

Right-to-repair laws are starting to get some traction, giving customers more rights to fix the products they buy. But just because you can fix something doesn't mean that it will be easy or affordable. Repairing your own car has become less and less common over the years, but at least local mechanics can come to the rescue . . . usually. When it comes to Tesla electric vehicles, though, some insurance companies are reportedly deciding that even low-mileage vehicles aren't worth the hassle.

Challenge-plagued repair industry reaches ‘breaking point’: consultant

The auto repair industry has reached an inflection point as it struggles to remain profitable amid tech shortages and supply chain backlogs, a consultant says.

“Make no mistake: the industry has reached an economic breaking point,” Sean Carey, president of SCG Management Consultants, said during a Jan. 26 webinar. “For many years market forces have suppressed the true economics of this. It’s just a fact that these shops have absorbed large cost burdens.