News
![Prudential Financial to cut 243 positions](https://dxj7eshgz03ln.cloudfront.net/production/link/image/904532/original_ratio_extra_large_ed8ff3ed-fd6c-4b54-a167-25abfd2b6015.jpg)
Prudential Financial to cut 243 positions
It is looking to curb costs as part of years-long overhaul
Prudential Financial Inc. plans to cut 243 positions as it seeks to curb costs — the latest step in the life insurer’s years-long overhaul.
The company expects the effort to reduce the number of management layers by one-third, chief executive officer Charlie Lowrey said in a memo to staff seen by Bloomberg. The cuts will impact different levels of senior vice presidents and vice presidents, Lowrey said.
“Unnecessary complexity slows us down and adds to our operating costs,” Lowrey said in the memo. “We have therefore embarked on a comprehensive effort to simplify our organizational design beginning with a significant reduction in the number of senior leaders.”
The insurer disclosed that 243 employees will be affected, according to a filing Prudential submitted to the state of New Jersey.
Prudential said the cuts, along with a “limited number of changes below these levels” will be announced in coming days, according to the memo.
Commentary/Opinion
Interview: Could Auto Accidents Be Reduced by More Than Half?
In this Future of Risk conversation, Nauto CEO Stefan Heck explains how his AI- and camera-based system routinely reduces vehicle fleets' losses from accidents by 60% -- and says he has his eye on the broader consumer market.
Dr. Heck is the CEO and Co-Founder of Nauto, a Palo Alto-based technology firm focusing on smart cars.
Research
![Customers demand green insurance – but are insurers ready?](https://dxj7eshgz03ln.cloudfront.net/production/link/image/903322/original_ratio_extra_large_feae4919-6ae3-4c03-9a57-5fa779044cd9.jpg)
Customers demand green insurance – but are insurers ready?
The vast majority of insurance customers want their insurers to walk the walk on ESG performance, according to new research – but are insurers ready?
Three-quarters of drivers would switch to, or stick with, an insurance company that’s able to prove that they are environmentally friendly, according to new research.
Solera, the global automotive technology company, asked 10,000 drivers and 500 claims experts about their attitude to ESG within the car insurance space. The results appear to demonstrate the appetite that exists, particularly among policyholders, for strong environmental performance.
According to the World Economic Forum, 65% of consumers want their spending choices to contribute towards a healthier and more sustainable life – but years of unsubstantiated marketing claims about ESG performance have cast doubt on how green companies really are, and created a culture of ‘greenwashing’.
That explains why many consumers want to see proof of ESG progress – but Solera believes that insurers can realise genuine upsides if they can back up their environmental claims.
Consumers overwhelmingly want green products
“In the insurance and automotive markets, there is a growing call for sustainable offerings,” explains Jing Liao, Chief Administration Officer and Chair of Solera’s ESG Committee. “In turn, this can benefit their reputation, bringing higher customer lifetime value, long-term savings and tax reductions, leading to the development of new products whilst having a positive impact on the environment.
“Despite a growing awareness of sustainability, there remains a notable number of companies that perceive it as a mere ‘checkbox’ requirement rather than an integral component of sound business management. For some, the pursuit of sustainability appears to clash with the overarching priority of maximising profitability.
“Our initial findings show that, with every incremental percentage point of repairability, we estimate a substantial yield of $10 in the claim. When incorporating eco-friendly components, each uptick in the proportion of green parts utilized within the claim equates to a potential $35 extra in cost reduction and 30kg less of CO2 emissions, which benefit both the insurer and the consumer.”
InsurTech/M&A/Finance💰/Collaboration
![Travelers to Acquire Corvus Insurance](https://dxj7eshgz03ln.cloudfront.net/production/link/image/904543/original_ratio_extra_large_3466bf05-481b-48f7-a1ca-7c9b69125ffa.jpg)
Travelers to Acquire Corvus Insurance
Transaction accelerates deployment of cutting-edge cyber capabilities
The Travelers Companies, Inc. (NYSE: TRV) today announced that it has agreed to acquire Corvus Insurance Holdings, Inc.** for approximately $435 million. Founded in 2017, Corvus is an industry-leading cyber insurance managing general underwriter, powered by proprietary technology.
“We continue to make thoughtful investments in strategic capabilities that advance our innovation agenda,” said Alan Schnitzer, Chairman and Chief Executive Officer of Travelers. “This transaction accelerates our access to cutting-edge cyber capabilities that were on our strategic roadmap, including sophisticated underwriting algorithms, advanced cyber vulnerability scanning and digital connectivity to customers and distribution partners.”
Powered by a proprietary, AI-driven cyber risk platform, Corvus has developed an industry-leading suite of integrated cyber sales, service and support capabilities. The Corvus team has extensive expertise in the cyber product line and a strong presence in the middle-market excess and surplus cyber insurance marketplace, serving both wholesale brokers and large retail producers. Through its platform, Corvus effectively identifies vulnerabilities throughout the policy period to reduce customers’ exposure to cyber events. Corvus’ platform also delivers distribution efficiencies to insurance agents and brokers. Driven by its proven technology and dynamic team, Corvus has grown its business at attractive loss ratios.
“Corvus’ expertise in excess and surplus lines for cyber, along with our industry-leading distribution position in the admitted markets, is a powerful combination,” said Jeff Klenk, Executive Vice President and President of Bond & Specialty Insurance at Travelers. “In addition to having the opportunity to renew Corvus’ $200+ million book of business, we will leverage Corvus’ leading capabilities to enhance the return profile of our already attractive cyber portfolio. We have a strong working relationship with the Corvus team through our existing cyber capacity arrangements in the United States and Europe, and we are thrilled to have them join the Travelers family.”
Madhu Tadikonda, Chief Executive Officer of Corvus, said, “At Corvus we have been building a safer world through cyber insurance products and digital tools that reduce risk and improve resilience for policyholders. We are excited for the opportunity to contribute our capabilities and knowledge to Travelers. Our complementary cultures and strong commitment to innovation make this transaction an excellent fit.”
![Davies inks acquisition deal with Brown & Brown](https://dxj7eshgz03ln.cloudfront.net/production/link/image/904533/original_ratio_extra_large_a7ddf286-a15c-4702-8f66-96ef3f7be2fb.jpg)
Davies inks acquisition deal with Brown & Brown
Long-term strategic collaboration will also be established for additional solutions
Davies has revealed its agreement with Brown & Brown Insurance to acquire four claims and services businesses, solidifying a long-term strategic partnership.
The acquisition includes American Claims Management (ACM), which functions as a third-party claims administrator, and Preferred Governmental Claims Services (PGCS), which specialises in claims management for Florida governmental and municipal agencies.
There is also USIS, which operates as a key managed care services provider and TPA for workers’ compensation and liability claims, and the ICA, which is an independent property adjusting firm. More than 600 employees from Brown & Brown will transition to Davies as part of this deal.
This strategic move marks a significant deal for Davies in the US, aimed at bolstering the firm’s existing third-party administrator (TPA) offerings. The acquisition covers various sectors, such as property and workers’ compensation claims, catastrophic loss adjusting and response management, auto and general claims, and professional liability claims management.
Lemonade Expects to Be in the Black Within Three Years
While Lemonade is still burning cash and reported a net loss on the bottom line of its third-quarter income statement, the InsurTech expects both situations to reverse by year-end 2026.
The cash situation, in fact, will turn around by year-end 2025, Daniel Schreiber, co-CEO of Lemonade, reported on an earnings conference call, echoing statements made by other executives and included in the shareholder letter accompanying third-quarter financial results.
“We expect to become cashflow positive by end of year 2025 and to reach that point with hundreds of millions of unencumbered dollars in the bank.”
“We expect to become adjusted EBITDA positive by year-end 2026,” he added.
Innovation
![Gen AI a Hot Topic at ITC Las Vegas 2023: Gen AI Generates Enthusiasm—and Fear](https://dxj7eshgz03ln.cloudfront.net/production/link/image/904753/original_ratio_extra_large_6ef1b1a7-9a7a-43b3-9e16-28106c39ef28.png)
Gen AI a Hot Topic at ITC Las Vegas 2023: Gen AI Generates Enthusiasm—and Fear
COMPLETE EVENT COVERAGE AND PHOTOS LINK
This week the InsureTech Connect (ITC) conference took place at Mandalay Bay in Las Vegas, bringing together insurance executives, industry solution providers, investors, and other parties interested in the technological evolution of the insurance industry.
The event featured speakers such as entrepreneur and author Gary Vaynerchuk; the Honorable E. David Burt, Premier of Bermuda; Kevin Strain, President and CEO of SunLife; Bill Powers of Cambridge Mobile Telematics; insurance commissioners from 5 jurisdictions, and CEOs of prominent InsurTechs including CoverGenius, Unqork, Policygenius, and Betterfly.
“ITC Vegas 2023 again brought the insurance ecosystem together for 3 days of unrivaled content, connections, and innovation,” comments Bill Harris, CRO, ITC.
Harris reports that the ITC Expo Hall featured demos from 60 InsurTechs and solutions providers, with SnapRefund winning the State Farm Pitch Competition. He notes that new at this year’s ITC was the LATAM Zone, the ITCx Meetup Series, and three masterclasses that allowed delegates to take a deeper dive into topics including generative AI, fundraising, and leadership.
“The ITC Forward50: Americas report, powered by Sønr, was also released during the ITC Kickoff Summit, and delegates experienced ITC trademark events like VC Office Hours, the Women’s Leadership Forum, the Black Founders Meetup, and Meet the Regulators, before enjoying a special concert by Earth, Wind and Fire to close out an epic week,” Harris relates.
Twenty-Two Israeli InsurTechs
Despite the ongoing conflict started with the Hamas attacks of October 7, Israel was strongly represented at the event, with a delegation of 22 companies and 80 individuals. Kobi Bendelak, CEO, InsurTech Israel notes that, despite many challenges personal and logistical, two more startups joined the delegation at the last minute.
“Despite the challenges we’ve faced, our ecosystem continues to flourish and develop innovative solutions that support the global insurance world,” Bendelak comments. “We wanted to emphasize that we are committed to our customers and partners no matter what. We want to amplify this wherever possible.”
Gen AI Generates Enthusiasm—and Fear
Among the major themes of ITC Las Vegas 2023 was artificial intelligence—and generative AI in particular, according to several participants. Enthusiasm for the technology was not in short supply, but Franklin Manchester, Global Insurance Strategic Advisor, SAS (Cary, N.C.), found that it contrasted with another strong sentiment: fear.
“On the heels of the executive order coming the day before Halloween, many of the conversations, the breakout sessions, and one on one meetings included some form of reaction to the President’s bold statement on the use of artificial intelligence in a manner in which it can be regulated while also harnessing its potential,” Manchester observes. “I personally witnessed reactions spanning from no belief that regulation would come anytime soon, to ‘What can we do now to prepare ourselves?’”
Manchester’s colleague at SAS and veteran industry analyst Mike Fitzgerald commented in a social media post following the event that, “I’ve attended InsureTech Connect since 2017. This is the first year that I have come away thinking attendees were afraid.”
Range of Technologies
While agreeing with Manchester about the volume and intensity of the Gen AI conversation, Stuart Rose, Product Marketing Director, Ventiv (Westerville, Ohio)—a provider of AI-embedded core policy administration software, was impressed by the range of technologies represented at ITC Las Vegas 2023.
“From AI to geospatial to intelligent document processing, the number of new InsurTech companies at ITC that have solutions to innovate and transform the insurance industry continues to amaze me,” Rose comments. “At *Ventiv with we work with a lot of carriers, MGAs and TPAs and it great to learn how we work with these emerging software vendors to add extra capabilities to our new and prospective clients.”
Anthony O'Donnell, Executive Editor, Insurance Innovation Reporter
![ITC Las Vegas insurtech conference, day 3](https://dxj7eshgz03ln.cloudfront.net/production/link/image/904759/original_ratio_extra_large_57ea0108-426c-4185-a886-082073c89565.jpeg)
ITC Las Vegas insurtech conference, day 3
Michael Shashoua, senior editor of Digital Insurance, is reporting on developments from ITC Connect in Las Vegas Oct. 31-Nov. 2, 2023.
Caribou Honig, the founder of ITC Connect and a partner at venture capital firm SemperVirens, spoke at Tokio Marine Day, an annual event including technology pitches, at ITC Connect, Nov. 2.
Insurtech, Honig said, isn't moving toward direct-to-consumer. "It remains B2B2C. Historically, the middle B is the broker," he said. "But now the middle B is becoming a business or a bank, enabled by APIs."
The audience at Tokio Marine Day, according to Robert Pick, deputy chief IT officer, Tokio Marine Holdings, included 85 insurtechs ranging from start ups to mature players. These in turn included 20 incumbent established technology companies, 15 systems integrator partners, 7 investors/incubators, and 60 people from Tokio Marine Group, including 5 chief information officers who oversee $18 billion in premiums in the U.S. alone.
I-CAR Announces Recipients of Jeff Silver and Russ Verona Memorial Awards
The Inter-Industry Conference on Auto Collision Repair (I-CAR) announced the recipients of its annual Jeff Silver and Russ Verona I-CAR Awards that recognize one individual and one collision repair facility for advancing technical education and professionalism in the collision repair industry. The Awards were presented in Las Vegas during SEMA at the Collision Industry Red Carpet Awards event.
The Jeff Silver Memorial Award, a tribute to those who both hold and champion the I-CAR Platinum designation, has once again celebrated an outstanding advocate for excellence in collision repair training.
The 2022 Jeff Silver Memorial Award recipient was announced as Zack Beck, Corporate Claims Trainer for GEICO Insurance Co. in Virginia Beach, Virginia.
The Russ Verona Memorial Award, also an annual accolade celebrating collision repair centers that actively promote technical training, fostering a positive public image for the industry, while also operating as a Gold Class business for a minimum of five consecutive years.
Clinton Body Shop in Clinton, Mississippi was announced as the 2022 Russ Verona Memorial Award recipient. This family-owned and operated business, proudly holds the distinction of being the first Gold Class repair facility in the state of Mississippi, having achieved Gold Class status in 1991, which they have now maintained continuously for 32 years.
AI in Insurance
![Best's Review Discusses the AI Revolution](https://dxj7eshgz03ln.cloudfront.net/production/link/image/904756/original_ratio_extra_large_5ba3513a-707f-4ef1-9223-13e6754ae22c.jpg)
Best's Review Discusses the AI Revolution
The November issue of Best’s Review features a joint effort with AM Best TV to explore how artificial intelligence (AI) is impacting the insurance industry: “An Insurance Podcast That’s Awkward in Name Only”
“How AI Is Remaking Insurance Organizations” looks at where AI will have the most significant impact on how insurers conduct business, as well as some of the best practices for integrating the technology.
“How AI Is Remaking the Insurance Workforce” examines how AI will empower the insurance workforce by transforming roles and opening new avenues for value creation and claims management.
“What the AI Revolution Means for Insurance Prospects, Policyholders and Regulators” looks at the ways in which AI is likely to change how insurers identify risk opportunities and develop products, and how it will challenge regulators.
![Top 11 Highlights Now Available for AM Best’s Webinar on Artificial Intelligence and ChatGPT](https://dxj7eshgz03ln.cloudfront.net/production/link/image/904757/original_ratio_extra_large_6aa26885-62f0-431f-a474-97da347633be.jpg)
Top 11 Highlights Now Available for AM Best’s Webinar on Artificial Intelligence and ChatGPT
Viewers can now access the top highlights from AM Best’s “How Generative AI and ChatGPT are Reshaping the Insurance Industry” webinar, sponsored by Xceedance.
In this video-based interactive presentation, viewers can learn how these new technologies will drive both the customer experience as well as the bottom line for decades to come.
People
![Liberty Mutual appoints claims leader](https://dxj7eshgz03ln.cloudfront.net/production/link/image/903880/original_ratio_extra_large_503e6c0f-2667-4fa0-9736-6a10bd59de38.jpg)
Liberty Mutual appoints claims leader
Liberty Mutual Holding Co. Inc. has appointed Virna Alexander chief claims officer for Global Risk Solutions.
She is replacing Steve Deane, who in October was appointed the chief claims officer at The Hartford Financial Services Group Inc.
Ms. Alexander has been part of the Liberty Mutual leadership team since 2013 and has held a number of positions across personal and commercial claims units. Most recently, she was head of the GRS North America Workers Compensation Claims unit.
In 2020, Ms. Alexander was named among the Business Insurance Women to Watch.
She will be based in Bala Cynwyd, Pennsylvania.