Commentary/Opinion
[Ed. Note: Recommended] Monthly theme: Claims - The Digital Insurer
This page collects content from across The Digital Insurer (TDI) on claims. Our in-depth article including case studies from Descartes Underwriting, Bdeo, and Insured Nomads, looks into the innovations keeping insurers abreast of customer expectations on claims, including through AI and machine learning.
And in TDI’s POV on claims, TDI’s Simon Phipps, alongside Mark Breading from Strategy Meets Action, ask why, despite the potential of AI being well-recognised across the claims function, do insurer’s AI claims projects struggle to get beyond the POC phase? To help answer this question they also speak with Rupin Mago of InsurTech omni:us on its unique approach, which is achieving impressive results helping insurers improve claims with new tech, in particular AI.
You can also watch our webinar on how Emerging technologies are redefining the underwriting & claims value propositions & practices on-demand, and browse a range of curated research links on claims, gathered from across the web.
Hugh Terry, Founder, TDI
California DIO Reforms Change the Game for Carriers Equipped to Analyze Risk
Carriers can now calculate impact of reinsurance costs and use forward projections in the calculation of rates, and those with more sophisticated data and analytics can be more selective of the risks they chose to insure.
As weather risks intensify, so can the natural tension between insurance carriers and insurance regulators. Just as these interests clashed over the rising costs of insuring property in Florida, greater frequency and intensity of wildfire risk has done the same in California.
However, last week the state announced a “Sustainable Insurance Strategy” designed to make improvements in protecting consumers while ensuring the viability of the market through the continued participation of insurers.
Executives from Guidewire weighed in on the matter, applauding the state’s latest actions and calling attention to key factors for enabling insurers to do business and serve California’s citizens.
Anthony R. O'Donnell, Executive Editor, Insurance Innovation Reporter
The rocky path forward for EV sales
A recent report is warning that there are signs of trouble with electric vehicle sales in the United States.
While acknowledging that EV numbers are and will continue to increase on the road, an analysis from Lang Marketing observed that evidence grows that its rise will be a longer process than initially thought — and maybe won’t even occur.
“Dark clouds are casting shadows over the once sunny picture of electric vehicles filling U.S. roads and reducing pollution,” said its Aftermarket iReport.
The rise of EV models has been well documented. It’s been predicted that North America will have 135 models for sale by 2025 with 500 globally.
“There’s not yet a full range of vehicle types that people need particularly around that lower, entry-level threshold,” observed Nino Di Cara, founder and president of Electric Autonomy Canada, in the inaugural issue of EV World.
Class Action Against USAA; Failure to Pay Lessees Residual Value of Totaled Cars Alleged
A recently filed class action lawsuit in a California District Court accuses USAA General Indemnity Company of deceptive and unfair practice for failing to pay insureds the amount owed after leased vehicles are declared a total loss.
In the case of Joseph Tarkett v. USAA, In the United States District Court, Southern California, Case ’23CV1724H BLM, the plaintiff, a resident of California, purchased an automobile insurance policy from USAA providing coverage for physical damage, including comprehensive and collision loss, to a 2021 BMW X5 that he leased.
The policy, in effect since the beginning of the vehicle lease in 2021, was most recently renewed for the same vehicle for the policy term of October 27, 2022 to April 27, 2023.
News
Traffic deaths are up despite advancements in vehicle safety systems
A new mainstream media report is drawing attention to an increase in traffic fatalities despite an increase in advanced driver assistance systems (ADAS) meant to make vehicles safer.
The NBC affiliate article was the latest to draw a parallel between increased safety features and last year’s projected roadway deaths being up nearly 10% over 2020’s figures.
The 42,915 people killed in traffic crashes last year was also 26% higher than 2010’s 32,885 deaths, according to National Highway Traffic Safety Administration (NHTSA) data.
NBC noted that cyclists and pedestrians have been disproportionately affected by the uptick, with deaths among them rising 60% within the span of a decade.
“We don’t know exactly what’s going on with the increase in pedestrian fatalities. It certainly seems like the increase in bigger vehicles is contributing to it,” said Jessica Cicchino, vice president of research at the Insurance Institute for Highway Safety (IIHS).
“Many studies have shown that larger vehicles like SUVs and pickups are more likely to kill or seriously injure pedestrians and cyclists when they’re involved in a crash.”
Research
Connected Cars 101: What they are, and where they’re going
[Ed. note: excellent, comprehensive tutorial on Connected Cars - 14 min read]
- Modern connected cars contain a network of components, including a communication system, IoT sensors, a data center, a software platform, and a user interface; while the technology my vary by car, each component is critical to a connected car’s functionality
- Benefits of connected cars are centered around the user experience, and include increased safety, efficiency, and entertainment features
- Challenges of connected cars are mostly data-related, as the industry faces genuine privacy, security, and communication limitations
- Stakeholders including OEMs, consumers, technology partners, and autonomous car makers have a large stake in seeing the connected car landscape eclipse the $300B market size it is expected to reach by 2030
- Today’s connected car technology is paramount to the future of autonomous driving
Ashane Govind, writer, thinker, and lifelong student. IG: @ashanegovind
McKinsey Technology Trends Outlook 2023
Which technology trends have the most momentum in an accelerating world? We ranked the top cross-industry trends that matter most for companies and executives.
After a tumultuous 2022 for technology investment and talent, the first half of 2023 has seen a resurgence of enthusiasm about technology’s potential to catalyze progress in business and society. Generative AI deserves much of the credit for ushering in this revival, but it stands as just one of many advances on the horizon that could drive sustainable, inclusive growth and solve complex global challenges.
To help executives track the latest developments, the McKinsey Technology Council has once again identified and interpreted the most significant technology trends unfolding today. While many trends are in the early stages of adoption and scale, executives can use this research to plan ahead by developing an understanding of potential use cases and pinpointing the critical skills needed as they hire or upskill talent to bring these opportunities to fruition.
McKinsey Technology Trends Outlook 2023, Full Report (81 pages)
InsurTech/M&A/Finance💰/Collaboration
Bold Penguin partners with NEXT Insurance to expand product offerings on Terminal
Agents will now have additional coverage options that fill the unique, evolving needs of small business owners
Bold Penguin has partnered with NEXT Insurance, a leading technology-first small business insurer, to enhance small business coverage options on the Bold Penguin Terminal.
Founded in 2016 by insurance agents for insurance agents, Bold Penguin is on a mission to simplify small commercial insurance for carriers and agents. Through this partnership, Bold Penguin users will gain access to NEXT’s General Liability and Professional Liability products.
This relationship also provides access to agents seeking additional markets, allowing them the opportunity to get a NEXT sub-appointment quickly through Bold Penguin, resulting in more quote opportunities.
K2 INSURANCE SERVICES ANNOUNCES STRATEGIC INVESTMENT IN TITAN FLOOD
Equity capital investment positions new Managing General Agent for scale and underwriting differentiation in the rapidly growing private residential flood market.
K2 Insurance Services (K2) today announced a strategic investment in Titan Flood Inc., a new Managing General Agent (MGA) specializing in the Private Residential Flood market. K2 has agreed to make an equity investment in Titan Flood and will oversee its long-term strategy through participation on its board of directors.
Titan Flood is being launched by flood industry veteran, Stephanie Lee. Stephanie was co-founder and COO of Neptune Flood, a leading provider of private flood insurance programs in the U.S. Stephanie chose Solstice Innovations, Inc. as its technology partner, to deliver an unparalleled user experience. Solstice CEO, Travis Pine was CTO at National Flood Services (NFS) prior to starting TorrentFlood, which quickly grew to be the 2nd largest service and technology provider in its space prior to being sold to Marsh USA in 2014.
The creation of a profitable flood portfolio requires intelligent data analysis of single risk modeling for eligibility and pricing. This is Titan's focal point. Titan has built an AI-based rating engine to evaluate and to dynamically price residential flood insurance - in seconds. Homeowners can learn about their flood risk, select custom coverage, and buy online or with an agent in just a few minutes. Titan Flood is working to build the #1 private flood MGA in America, with a customer centered approach that offers a faster, simpler, more informed customer experience.
Assurant's Pay-With-Rent Cover360 Renters Insurance Solution Now Available At Over 70,000 Edward Rose & Sons Units Across 148 Properties
Assurant, Inc. (NYSE:AIZ), a leading global business services company that supports, protects and connects major consumer purchases, announced it has signed a multi-year contract with Michigan-based Edward Rose & Sons, a privately-held real estate development and management company.
Assurant will be the preferred provider of renters insurance, using Assurant's turnkey Point of Lease (POL) product - Cover360. Property management companies (PMCs) and Owner/Operators have the potential to significantly increase participation in their renters insurance program and eliminate coverage gaps with the implementation of Assurant Cover360.
Cover360 is a comprehensive solution that Assurant evolved from its POL product. After a resident signs a lease, Cover360 enables property management companies to offer renters insurance by directing them via text or email to enroll via an online portal where they can either purchase Assurant's Pay with Rent policy that is conveniently bundled with their rent through an automated billing process via API integrations - or upload coverage from a third party provider. With Cover360, site teams enjoy the benefit of more automation and less time spent on administrative tasks. The Assurant Cover360 self-service portal enables residents to enroll in seconds without the site team's involvement. The ease of use improves the resident experience, leading to increases in program participation and ancillary revenue, and a reduction of expenses.
Liberate Launches Operator AI for Claims FNOL
New fully autonomous claim intake agent enables insurers to facilitate the most dynamic and hassle-free FNOL experience in the industry.
Liberate Innovations Inc. (Liberate) has launched Operator AI for FNOL – the insurance industry’s first multilingual, multi-scenario, empathetic, intuitive, 24/7, AI-driven claim intake agent.
“Operator AI for FNOL helps insurers in many ways – improving policyholder retention, shoring up labor shortages, improving data quality, and saving money. It’s a win for insurance carriers, claims administrators and policyholders”
With this easy-to-integrate plugin, insurers can leverage cutting-edge generative AI to simplify claims communications, boost policyholder satisfaction, improve data quality, and save time and money.
INSHUR Partners with Uber to Launch Insurance Products for On-Demand Livery Drivers in Arizona
On-demand insurance platform INSHUR has launched its insurance offering for on-demand livery drivers in Arizona, its second state in the US following its success in New York.
The news is the latest strategic milestone in INSHUR’s growth story, following the company’s acquisition of American Business Insurance Services (ABI) in April. With ABI’s existing footprint and capabilities built over the last 40 years, INSHUR is able to efficiently scale its innovative insurance products for the on-demand economy across the US.
The ability for on-demand livery and delivery drivers to access competitive insurance coverage that matches their needs is crucial in today’s economy. INSHUR’s business across the US and Europe has always centered around driver lifestyles through its deep understanding and use of data, insurance and technology for the on-demand driver economy.
With its sophisticated data modeling technology, INSHUR provides on-demand drivers with flexible pricing as well as a faster, more streamlined customer experience through exceptional claims handling and processing capabilities, all designed to get drivers back on the road quickly and safely.
The launch in Arizona is supported by INSHUR’s strategic partnership with Uber. Since 2018, INSHUR and Uber have been working together to deliver seamless integrations of innovative tech solutions to provide hassle-free insurance products for livery drivers. INSHUR’s unique processing of proprietary data and use of embedded technology in underwriting means better performance for capacity partners as well as competitive and comprehensive on-demand insurance policies to match driver lifestyles and driving habits.
Recommended Events
Forward50: Americas Edition | ITC and Sønr | ITC Vegas
About the Americas Edition
TUESDAY, OCTOBER 31 | 10:00AM – 11:30 AM | Room: Mandalay Bay Ballroom D
InsureTech Connect is proud to partner with Sønr to launch the Americas edition of the Forward50 report, a regional series of reports spotlighting the most promising emergent insurtechs.
The selection process involved Sønr’s proprietary ML technology and data combined with some of the best thought leaders in the industry as our judges. Everyone who worked on this report shares the same vision, propelling the digital acceleration of the insurance industry.
Interested in Attending the Forward50 report announcement at ITC Vegas?
RSVP HERE