AI in Insurance
C-suite and employees disagree on AI and hybrid work
Employees turn to the C-suite for leadership, but what they're actually getting is deaf ears.
Be it disagreements over work arrangements, the best application of artificial intelligence in the workplace, and even what employees choose to wear to work, management and their workforce is clashing on some fundamental issues, and it could cost organizations their talent and trust.
When it comes to new technologies, employees' thoughts on AI range from cautiously optimistic to downright fearful. And the C-suite is doing little to assuage those fears: 68% of the C-suite admit that their company has made AI-related decisions that are not in employees' best interests, according to a new survey from software company UKG. Employers should work on being more transparent to get more buy-in from their teams, says Hugo Sarrazin, chief product and technology manager.
Build customer loyalty with faster, smoother auto claims processes
"It's important to talk about ethical use of AI, where it's being used and most importantly, to help employees know what that means," Sarrazin says. "Make everybody interact with it and feel it to see the power of what it does and doesn't do well."
News
White House AI executive order adds safety requirements for next generation tech
The Biden administration set guardrails to help mitigate the technology’s risk, but stopped short of imposing consequences on businesses that fail to comply.
President Joe Biden issued an executive order Monday aimed at improving the safety, security and trustworthiness of AI in the public and private sectors.
The EO requires developers of “any foundation model that poses a serious risk to national security, national economic security or national public health and safety” to share safety results with the federal government. It also ordered the development of programs and working documents addressing AI cybersecurity, safety and risk.
“It’s the next step in an aggressive strategy to do everything on all fronts to harness the benefits of AI and mitigate the risks,” Bruce Reed, White House deputy chief of staff, said in a statement.
Commentary/Opinion
Everest CEO: Reinsurance hard market likely to last into 2025
The current good trading conditions in the reinsurance market can continue all the way into 2025, according to Juan Andrade, CEO of global insurer and reinsurer Everest Group Ltd.
"We see the market as having legs through 2024 and very likely into 2025," Andrade said in an interview in September. "We're not seeing any change in momentum at this point in time."
The global reinsurance industry is experiencing a hard market. Reinsurers have been raising prices and restricting coverage at key renewal dates throughout 2023 to counteract several years of heavy catastrophe losses. This remedial work is already boosting reinsurers' profits.
Andrade expects the favorable conditions to continue because "there have been no significant changes in the macro conditions" since May, when the company raised $1.5 billion to take advantage of the good reinsurance trading environment. "If anything, there's been more proof points of what we were saying back at the time."
Research
Opportunities going forward for insurance investors | McKinsey
Following a frenzied 2021, the private equity (PE) market saw a 15 percent decrease in deal count in 2022.1 The North American insurance industry also felt the slowdown, seeing a similar reduction in deals from 2021 to 2022, according to McKinsey analysis of data from Pitchbook. Despite these shifts, the insurance sector remains an appealing investment avenue for PE firms seeking stable returns in a challenging macroeconomic environment.
In August 2021, when we last published our perspective on this space, the world was beginning to emerge from the COVID-19 pandemic, and several broad themes were top of mind, including continued broker consolidation, a move toward nonadmitted markets, and divestitures amid a low-interest environment.2 Today, the circumstances warrant a strategic shift in approach. An increase in inflation, the cost of capital, the trajectory of interest rates, and the escalated valuation of some assets necessitate a more discerning approach toward the selection of acquisitions. In this capital environment, multiple arbitrage on roll-ups will be more costly, and deal theses will be more complex as they take additional factors into account to achieve the same returns.
Claims
Indigo Expands Liberate Digital FNOL to Homeowners Insurance
Indigo Insurance has gone live with its homeowners insurance First Notice of Loss workflow, powered by the Liberate low-code SaaS platform. This milestone expands upon Indigo’s highly successful June launch of digital FNOL for auto insurance, also powered by Liberate.
Expanding digital FNOL to the homeowners line of business was of paramount importance for Indigo as the company continues to grow and build market share in homeowners insurance. With the auto insurance FNOL workflow already live, the Indigo team feels confident of the many advantages that similar automation will deliver for the homeowners line.
"Our auto insurance digital FNOL has been well received with high adoption rates," says Nick Brierly, Indigo’s Chief Operating Officer. "We’ve already seen that digital FNOL provides superior policyholder experiences while also positively impacting claim cycle times and downstream efficiency. We expect the same success in the homeowners line." he adds.
Indigo’s digital FNOL workflows enable:
A seamless, 24/7 digital process for claims submission.
Collection of detailed structured data, photos, and documents.
Integration with Indigo’s core system, eliminating the need to transfer data via email or data entry.
Expedited, efficient claim handling.
As a tech-forward, customer-centric P&C insurance carrier, Indigo appreciates the insurance expertise that Liberate brings to the table.
CoreLogic launches new claims resource management solution
US-based tech firm CoreLogic has launched a new solution that will simplify claims resource management for insurance carriers
CoreLogic – an Irvine, California-based company that provides property intelligence and analytics for the home insurance market – has launched an insurance solution that will “revolutionise” the way carriers locate, schedule and track claims and restoration resources.
Called CoreLogic Claims Dispatch, the solution will streamline the claims process to ensure that carriers can efficiently assign the right resources to each claim.
The solution is consistent with the broader move across the insurance industry to smarter, cloud-based technology solutions that help carriers to move away from the traditionally legacy-based nature of the insurance industry.
In particular, insurers are using data to mitigate against risks like natural catastrophes and inherent risks within the property, launching parametric solutions and AI-powered roof age analysis for example.
CoreLogic states the process of managing claims and restoration resources has been a “time-consuming and challenging task” for carriers for too long.
Enhanced LexisNexis Rooftop Solution, Now Part of Total Property Understanding, Helps U.S. Home Insurers Address Wind and Hail Property Damage Claims
LexisNexis® Risk Solutions, a leading provider of data, analytics and technology solutions for insurance carriers, today announced a new alliance with Vexcel Data Program, a global leader in aerial imagery and geospatial data, adding its imagery as a key enhancement to LexisNexis® Rooftop.
An integral part of end-to-end property intelligence solution, LexisNexis® Total Property Understanding™, LexisNexis Rooftop offers customers two Rooftop models to choose from. This includes a geospatial model enhanced by comprehensive claims datasets from LexisNexis Risk Solutions, as well as a geospatial imagery model that utilizes manned fixed-wing aerial imagery to provide carriers with first-hand visibility of the roof in addition to over 30 imagery-analytics attributes.
"LexisNexis Rooftop leverages a vast database of industry personal lines claims, which in combination with weather and property data is much more predictive of future loss than imagery and weather data alone," said Randy Ishikawa, director, home insurance, LexisNexis Risk Solutions. "This enables insurers to determine the likelihood of a future claim that is backed by deep analysis of industry-leading aerial imagery without having to review the actual pixels."
And if an insurer wants corresponding imagery, Rooftop delivers a new and improved imagery solution with more than 30 proprietary imagery-analytics attributes. Combined with our geospatial solution, that is almost 80 additional risk attributes for property assessment."
With increasing challenges such as severe weather events, inflation and migratory trends affecting insurance availability, the importance of utilizing a property risk-assessment tool like LexisNexis Rooftop within the insurance industry cannot be overstated.
InsurTech/M&A/Finance💰/Collaboration
Ryan Specialty Signs Definitive Agreement to Acquire AccuRisk Holdings
Ryan Specialty is pleased to announce it has signed a definitive agreement to acquire AccuRisk Holdings, LLC, a medical stop loss MGU.
Ryan Specialty (NYSE: RYAN), a leading international specialty insurance firm, is pleased to announce it has signed a definitive agreement to acquire AccuRisk Holdings, LLC (“AccuRisk”), a medical stop loss managing general underwriter (MGU). AccuRisk is headquartered in Chicago, IL and was founded in 2017.
Discussing the acquisition, Patrick G. Ryan, Founder, Chairman & CEO of Ryan Specialty, said, “Dan and the AccuRisk team are proven leaders in the medical stop loss space, having built one of the largest independent medical stop loss MGUs. Moreover, the AccuRisk team shares our vision to develop a comprehensive integrated health solution, providing retail brokers with a ‘one stop shop’ for self-insurance needs. Together, Ryan Specialty and the AccuRisk professionals will be able to accelerate the rate of innovation in the employee benefits industry.”
John Zern, President & CEO of Ryan Specialty Benefits, commented, “AccuRisk adds exceptional talent, unique capabilities, and product depth to our employee benefits practice. AccuRisk’s offerings include medical stop loss underwriting, group captives, supplemental health care management, and occupational accident. AccuRisk’s deep expertise, combined with the breadth of its product offering, gives Ryan Specialty the capabilities to holistically service our retail broker and TPA clients. I look forward to collaborating with Dan as a part of the team to deliver innovative solutions on a nationwide basis.”
Innovation
Meet Peri by Solera – Your Path to Financial Freedom
A dedicated payment processing service for the automotive industry – safeguarding your well-deserved income.
Solera Global Corp. (“Solera”), the global leader in vehicle lifecycle management, is proud to introduce Peri, a cutting-edge service that is designed to revolutionize payment processing. Peri has been tailor-made for the automotive industry to significantly reduce transaction fees for business of all sizes. Solera's sustainable approach is set to bring about a transformation in the merchant services industry, which is often plagued by hidden fees and intricate terms and conditions. Peri will make it easier for automotive companies to stay competitive in today's market, where processing payments quickly and conveniently is becoming increasingly important for success.
“We are excited to introduce Peri by Solera at SEMA 2023”
Peri will be unveiled at the highly anticipated SEMA show from Oct. 31 - Nov. 3, 2023, which is being held at the Las Vegas Convention Center.
Shop owners will have access to reliable customer support, creating peace of mind knowing that any technical issues related to accepting payments online will be addressed as soon as possible so there won't be any delays in transactions.
The standout feature of Peri is its significant savings potential for businesses, with the opportunity to reduce transaction fees by up to 35%, as compared to industry averages. Furthermore, when Peri is paired with any of Solera's suite of products, businesses can unlock even greater savings.
Socotra Forges New Partnerships, Wins Industry Awards, Enjoys Strong Momentum in 2023
Insurance technology leader continues to grow rapidly, garnering multiple awards for its customers and solutions, forming new alliances, and expanding its international customer base
Leading insurance core technology provider Socotra announced today that it is stepping into its role as a title sponsor of InsureTech Connect 2023 in Las Vegas on the heels of aggressive growth and steady recognition for its efforts. The producer of mature, intelligent solutions for the P&C, general, and life insurance industries indicated that it has experienced another banner year to date, noting numerous technology partnerships, customer acquisitions, and industry accolades earned thus far in its fiscal year, ending in January of 2024.
This partnership embodies our commitment and dedication to delivering innovative solutions in the insurance industry,” said Oded Barak, CEO of Five Sigma. “We are excited to collaborate on this venture with like-minded cutting-edge partners like Socotra. Together with Socotra, we are poised to deliver exceptional and true value to insurers and policyholders alike.”
"Socotra’s strong progress this year has been a direct result of our team’s dedication to delivering industry-leading solutions for the insurance industry and making it easier to protect people in need,” said Dan Woods, Founder and CEO of Socotra. “With the success and adoption of Socotra CorePlus, we have once again shown our ability to listen to the true needs of insurers who know the value of accelerating change, lowering TCO, and satisfying their customers. As the industry continues to move towards a highly-connected digital future, Socotra will be there to support insurers, making sure they have a reliable partner on their journeys.”
Socotra has added many new insurance businesses around the world to its list of satisfied customers in 2023, including Loggerhead Insurance, Annex Risk, Jetty, Ledgebrook, and Steadily. As the need for adaptability, flexibility, and speed continues to drive adoption of mature core systems technology, Socotra gains more and more ground among companies who know the value of providing exceptional experiences and increasing operational efficiency. Socotra customer new product launches in 2023 have included support for uninsured drivers in Mexico, coverage for on- and off-road vehicles - including powersport vehicles - in the U.S., a commercial package for captive insurance, and renters and security deposit insurance.
CCC Introduces Integrated Website Builder for Collision Repairers | CCC Intelligent Solutions
CCC® Amplify Helps Repairers Launch Customized Websites in Minutes and Strengthen their Online Presence
CCC Intelligent Solutions Inc. (CCC), a leading cloud platform powering the P&C insurance and collision repair economy, today announced the launch of CCC® Amplify, an easy-to-use digital solution that helps collision repairers build and launch customized websites in minutes. Available through the CCC ONE® platform, CCC Amplify simplifies the process of creating and maintaining a website by integrating CCC ONE shop information. The solution is designed to strengthen the online presence and lead generation efforts of repairers, whether they are creating a website for the first time or are looking to replace an existing one.
"Running a busy repair shop, I knew the importance of having an online presence, but didn’t have the time or technical expertise to build my own website,” said Bryan Sorto, owner of D&B Auto Repair in Deer Park, New York. "CCC Amplify made creating a website so simple. I was surprised to see my site up and running on the same day I started working on it. It's that quick and straightforward. Now it’s easier for our customers to find us online and connect with us.”
CCC Amplify simplifies website creation and maintenance by leveraging shop information from CCC ONE to fill pre-designed website templates. Repairers can choose from a variety of templates and customize them as needed, such as adding a careers page for open positions. With intuitive drag-and-drop tools, website creation becomes accessible to everyone, including those with no technical experience. In addition, repair shops with CCC® Engage, a CCC ONE solution that drives digital traffic to shops, can enable appointment booking and photo estimate requests through their sites, providing added convenience for consumers.
The Origins of Halloween Traditions
The Origins of Halloween Traditions
Carving pumpkins, trick-or-treating, and wearing scary costumes are some of the time-honored traditions of Halloween. Yet, the Halloween holiday has its roots in the ancient Celtic festival of Samhain (a Gaelic word pronounced “SAH-win”), a pagan religious celebration to welcome the harvest at the end of summer, when people would light bonfires and wear costumes to ward off ghosts. In the eighth century, Pope Gregory IIIdesignated November 1 as a time to honor saints. Soon after, All Saints Day came to incorporate some of the traditions of Samhain. The evening before All Saints Day was known as All Hallows Eve, and later, Halloween. Here is a look at the origins of some of the classic Halloween traditions we know today.
Carving Jack-o’-Lanterns
The tradition of carving Jack-o’-Lanterns originated in Ireland using turnips instead of pumpkins. It is allegedly based on a legend about a man named Stingy Jack who repeatedly trapped the Devil and only let him go on the condition that Jack would never go to Hell. But when Jack died, he learned that Heaven did not want his soul either, so he was forced to wander the Earth as a ghost for eternity. The Devil gave Jack a burning lump of coal in a carved-out turnip to light his way. Locals eventually began carving scary faces into their own turnips to frighten away evil spirits.
Seeing Ghosts
The festival of Samhain marked the transition to the new year at the end of the harvest and beginning of the winter. Celtic people believed that during the festival, spirits walked the Earth. Later on, Christian missionaries introduced All Souls’ Day on November 2, which perpetuated the idea of the living coming into contact with the dead around the same time of year.
Wearing Scary Costumes
In order to avoid being terrorized by all the evil spirits walking the Earth during Samhain, the Celts donned disguises so that they would not be mistaken for spirits themselves and be left alone.
Black and Orange
The traditional Halloween colors of black and orange also traces back to the Celtic festival of Samhain. For the Celts, black represented the “death” of summer while the orange symbolized the autumn harvest season.