News
Luxury OEMs report surge in EV growth as S&P doubles sales projections
Luxury automakers including BMW, Volvo, Lexus, and Mercedes-Benz–reported sizable year-over-year electric vehicle (EV) sales as a new analysis indicates U.S. EV sales will double previous expectations by 2030.
A recent S&P Mobility report said forecasts made before the passing of the Inflation Reduction Act (IRA) showed EV sales would reach 2 million by the decade’s end. Its analysts are now saying that IRA impacts are likely to result in EVs surpassing the 4.6 million mark by 2030.
Suzanna Massingue, low carbon transportation analyst with S&P Global, said the U.S. is forecast to sell more than 1.3 million EVs this year, representing a 52% year-over-year increase.
The trend is expected to further accelerate once OEM infrastructure investments are online and additional EV models qualify for tax credits, S&P Mobility said.
Atlanta Life Insurance Reemerges with New Leadership and a New Vision that Stays True to the Herndon Legacy
Earvin "Magic" Johnson's EquiTrust partners to support the company's mission to create legacies and build wealth in Black communities.
Atlanta Life Insurance Company, the lone remaining Black-founded and owned insurance company, is reemerging under new leadership with a fresh vision that pays homage to the brand's rich history and legacy. For more than 100 years, Atlanta Life has provided insurance to help policyholders build wealth for their families.
"The decision to extend our support and resources to Atlanta Life Insurance Company stems from my passion for championing entrepreneurship and Black businesses and my life-long investment in the Black community," said Earvin "Magic" Johnson.
"We have a new vision and a new direction for Atlanta Life that honors the guiding principles upon which it was founded while reimagining it's future"
Originally founded by Alonzo Herndon, a former enslaved man and savvy entrepreneur who became Atlanta's first African-American millionaire, Atlanta Life has protected many at-risk citizens while advancing social and economic equity for all, which included holding the life insurance policy of the late, great Rev. Dr. Martin Luther King Jr.
American Family Insurance Confirms Staff Reductions
American Family has confirmed recent reports of layoffs, saying that it is “working to increase efficiency and manage costs” across its five insurance companies.
The insurer did not provide specifics regarding the amount of employees, positions, or companies most affected but in an email to Insurance Journal, American Family said it has been “bringing together areas that provide similar functions across our companies.” American Family has acquired or merged with four other insurance companies since 2012, and has 12,500 employees across all companies.
“These efforts have had some impact on positions across our companies nationally,” the company said. “Impacted employees are treated with care and respect, including through financial and outplacement support.”
Madison, Wisconsin-based American Family said that improving efficiencies allow it to “reinvest in products and services and deliver strong value to customers,” and added that is a “stable employer” that expects to continue hiring where needed.
The five insurance companies that comprise the American Family Insurance group are American Family Insurance; CONNECT, powered by American Family Insurance; auto insurer The General; Homesite; and Florida-based Main Street America Insurance Co. The group sells multiple brands in all 50 states through a variety of channels including American Family agents, independent agents, call centers, partners, and online.
Research
Satisfaction with Life Insurance and Annuity Products Climbs as Customers Embrace Digital, J.D. Power Finds
Could the latest generation of mobile apps and websites hold the keys to solving the decades-old challenge of customer apathy toward life insurance and annuities?
According to the J.D. Power 2023 U.S. Individual Life Insurance Study and the J.D. Power 2023 U.S. Individual Annuity Study, both released today, customer satisfaction is climbing as more customers make use of digital tools and start using life insurance and annuities for financial planning in addition to final planning (e.g., death benefits, burial insurance).
“Sales of life insurance enjoyed a brief surge in popularity during the height of the pandemic, while sales of annuities have more recently soared,” said Breanne Armstrong, director of insurance intelligence at J.D. Power.
“But outside of that, customer satisfaction and engagement have generally declined the longer customers hold onto these products. Now, however, with more customers than ever engaging with life insurance and annuity providers more frequently via digital channels, we’re starting to see a real evolution. Customers who interact with the digital offerings of their providers are more engaged, have higher levels of satisfaction and are more likely to incorporate their life insurance and annuity products into their overall financial plans.”
AI in Insurance
How AI Is Revolutionizing The Insurance Industry
Rapidly evolving business environments are increasing competition and risk in the insurance sector. Several other challenges, such as theft and fraud, are creating additional hurdles. As a result, insurers are seeking better ways to generate accurate insights from data to enhance pricing mechanisms, understand customers, safeguard fraud, and analyze risks.
The Vienna Insurance Group (VIG) is an industry leader that is addressing these challenges by re-imagining its business—with Artificial Intelligence (AI) as a key enabler.
Historical context of VIG
VIG was created when three companies merged during the initial stages of industrialization in the 19th century. At the time, most buildings were built of wood, which increased risk of fire hazards.
The original company was founded by an Imperial Army officer in 1824 who introduced the idea of guaranteeing payment in case of loss or damage caused by fire. The two other companies included Austria’s first life insurance company and Austria’s first municipal pension institution.
Together, they formed the building blocks of VIG, the largest insurance group in the region.
Diversity enables success
“We’ve been functioning in a vastly diverse region for two hundred years,” said Carsten Dehner, Chief Data & Analytics Officer at VIG. “That gives us tremendous local power. We know the ins and outs of doing business in every country where we operate. We were the first to expand eastward after the fall of the Iron Curtain in 1989.
Judith Magyar, Brand Contributor|SAP BRANDVOICE | Paid Program
Commentary/Opinion
[Ed. Note: Recommended] Liberty Mutual’s CIO Articulates The Ingredients To Foster A Tech-Forward Insurance Company
In January of 2023, Monica Caldas took the reigns as Chief Information Officer of Liberty Mutual, a $50 billion revenue insurance company founded in 1912 that has 50,000 employees and operates in 29 countries. She has been with the company for more than five years, and she had spent the prior 17 years at General Electric, leading two different business units of GE as CIO.
Since taking her current post, Caldas has led a remarkable transformation of the company, continuing work begun by her predecessor as CIO James McGlennon. As such, she is on the path to pushing the 111-year-old company to become a tech-forward insurance company.
Caldas acknowledges that many companies are on comparable journeys to digitize their businesses, but her definition of “tech-forward” is “wing-to-wing digital transformation.”
She noted, “A tech-forward insurance company is not about automating everything and removing humans from the loop. It's about understanding the customer journeys, whether it's an individual consumer, or an agent or a broker. It's understanding the journeys, understanding where automation and digitization can help remove friction and can provide a better experience, a better product, and a better service…
Also, I think the other piece that companies sometimes don't spend a lot of energy on is the employee experience. How do we provide tools and capabilities behind the scenes to make employees' experience faster, smoother and give information more at the fingertips, to help them be more productive in their day-to-day?”
Biggest Business Trends for 2024
It's not too early to begin planning strategic initiatives for 2024, so here is a list of 10 trends that will likely dominate next year.
When I ventured into the garden section at my local Wal-mart last week, I saw they hadn't just been preparing for Halloween by setting up alluring candy displays throughout the store. They were already getting ready for Christmas, setting up displays for decorations, lights and even fake trees.
Those displays reminded me that we are, in fact, in the fourth quarter of 2023 and that, while I'll still probably start my Christmas shopping on roughly Dec. 23, it's not too early to begin planning initiatives for 2024. And it happens that a smart analyst I follow on LinkedIn posted a list last week of what he sees as the 10 trends that will dominate next year.
They are: generative AI, the human touch, the solution to the skills shortage, sustainability, personalization at scale, the data economy, the customer service revolution, remote and distributed work, diversity and inclusion and resilience.
Paul Carroll, editor-in-chief, Insurance Thought Leadership"
Why digitization could foster a more inclusive environment
As the insurance industry undergoes digital transformation, it has a unique opportunity to integrate diversity, equity and inclusion into its structure.In the ever-evolving insurance industry, digitization isn't merely about enhancing efficiency – it also holds the promise of fostering a more inclusive environment. Over the past few years, the increased emphasis on diversity, equity, and inclusion (DE&I) has reshaped organizational priorities. However, this emphasis hasn't been without its challenges. Just as insurance companies harness technology to manage risks, they can also leverage this digital boom to foster inclusivity and bridge these divides.
But how do digital technologies intersect with the realm of DE&I pushback? To answer this, it's worth understanding the pushback against DE&I initiatives. Denial, disengagement, and derailment can happen when individuals feel that their self esteem, competence, or inherent goodness is under attack. To address these issues in the organization, technology can help relieve DE&I pushback in a few ways.
Communication is truly key in this case. Digital platforms offer a way for clear, coherent, and consistent communication about why DE&I is essential. By using these platforms, companies can provide real-time updates, answer FAQs, and share success stories that illustrate the importance of inclusivity.
Another way technology can relieve pushback is adaptive learning. Online training courses can educate employees about DE&I in a non-confrontational, self-paced manner. These courses can also be designed to acknowledge various perspectives, thereby reducing feelings of alienation.
Espnola (Nola) Cartmill, Chief Diversity Officer, Holmes Murphy
Structural Insurance Transformation Needed: “Predict and Prevent” To the Rescue
As the Property & Casualty insurance industry struggles with the severe impact of extreme weather events, rapidly shifting market conditions, growing social and economic inflation, and a rapidly transforming automotive and alternative transportation landscape, it has become obvious that fundamental structural change is necessary and inevitable. Each of these single pressure points are individually striking and collectively may represent the “new normal”. Either way, cost of insurance is on the rise while availability has become problematic with both consumers and businesses absorbing the impact.
Aland Demers Stephen Applebaum, as published by Insurance.ca - Where Insurance & Technology Meet
Canada
Allstate Canada employees report 'sweeping' layoffs – Ontario law firm | Insurance Business Canada
Legal business identifies sudden spike in Allstate job cut activity
Allstate Canada employees have reported being caught up in layoffs amid restructuring, an Ontario employment law firm has communicated to Insurance Business.
Samfiru Tumarkin LLP has identified a recent spike in Canadian Allstate employees who have reached out to the law firm claiming they have this week been let go as part of sweeping changes.
“Samfiru Tumarkin LLP is assisting an increasing number of Allstate employees in Ontario, who believe they’re caught in a sweeping layoff and restructuring wave at the company,” said Lior Samfiru, co-founding partner at Samfiru Tumarkin.
“Our team is carefully reviewing their severance offers before they are signed back to ensure that every crucial factor is addressed, including the consideration of enhanced compensation due to challenging economic conditions.”
Grand Theft Auto: P&C industry sounds the alarm
Auto theft costs in 2023 are projecting to break record levels established in 2022, P&C insurance professionals are warning.
A recent survey by Équité Association shows auto theft in Ontario increased by 31% year-over-year in the first half of 2023. In Quebec, it increased by 17% year-over-year in the first half of 2023.
Last year in 2022, Canada’s insurers paid more than $1 billion in claims for stolen vehicles, the Insurance Bureau of Canada says. That compares with just $400 million in 2018.
“Regions at higher risk of auto theft include the Greater Toronto Area (GTA), which is responsible for approximately $500 million of this total,” the IBC states on its website.
Recommended Events
ITC Vegas - The Future of Insurance is Here - OCTOBER 31 – NOVEMBER 2, 2023 | LAS VEGAS
ITC Vegas is the world’s largest gathering of insurance innovation – offering unparalleled access to the most comprehensive and global gathering of tech entrepreneurs, investors, and insurance industry leaders.
Discover solutions to your biggest challenges, gain access to unique and meaningful education, and meet the insurance industry’s best and brightest. Join the insurance event that doesn’t just bring the insurtech industry together – it moves the entire industry forward.
The future of insurance is here – at ITC Vegas.
If you aren’t here, you are missing out on the conversations that are propelling the industry forward.
Register here