News
CES 2024 live updates | Automotive News
From artificial intelligence to zeppelins, CES once again promises to be the global epicenter of novel and notable transportation technology.
Here’s what we expect so far: Hyundai will have a substantial presence amid a smaller overall automotive field. Honda will stand out with the unveiling of a new global electric vehicle series. The Sony-Honda joint venture will showcase an updated Afeela, the EV that debuted at CES last year. Vinfast will highlight a new concept EV and might shed light on whether it intends to bring its VF 3 microcar to the U.S. market.
Overall, CES will showcase auto-related AI advances and in-cabin tech more so than vehicles themselves. The Detroit 3 are skipping the show, along with Toyota Motor Corp. But Mobileye, Nvidia and Qualcomm will have plenty to say about the underpinnings and smarts behind automated-driving advances and in-vehicle cockpit enhancements. If anything, the absence of major automakers gives both tech suppliers and traditional suppliers more room in the spotlight.
Check back with this live blog for regular updates.
InsurTech/M&A/Finance💰/Collaboration
Socotra Client Loggerhead Insurance Brings Capacity to Florida Homeowners Market
The insurer has agrees to a deal offering replacement coverage powered by Socotra solutions to customers issued non-renewals by Progressive Home.
Socotra, a provider of modern, cloud-based technology for insurers worldwide, has announced that its client Loggerhead Insurance, a Tampa, Fla.-based provider of homeowners insurance coverage in the state, has struck a deal to offer replacement coverage to those who will be issued policy non-renewal notices by Progressive Home (a business of Progressive Insurance, Mayfield, Ohio).
“It’s been tough for Floridians to find reliable homeowners insurance lately,” observes Todd Dixon, Co-Founder, Loggerhead Insurance. “We saw it firsthand, and we wanted to provide an alternative. So we gathered a knowledgeable team of Florida insurance experts to transform the way Floridians experience insurance.”
“Loggerhead is powered by modern technology, led by people who share a commitment to trust, empathy, and always doing what’s right,” Dixon continues. “With so many people here finding themselves in search of a new insurance provider they can trust, we have found a niche in which we can thrive while covering our customers when they need us most, and we are proud to partner with Socotra to offer this essential peace of mind to Floridians now and into the future.”
With Progressive Home set to non-renew some 115,000 policies in the state of Florida in an effort to rebalance its portfolio, Loggerhead stepped in to negotiate a deal with the incumbent to offer these customers a viable alternative, according to a Socotra statement. The Florida-based carrier will be able to provide uninterrupted coverage to these customers thanks to their partnership with Socotra, whose solutions underpin Loggerhead’s policy administration system and allow it to tailor its products to the unique needs of homeowners in the state, the vendor reports.
What insurtech CEOs look for in a partner
Shared vision, openness and strong relationships are all traits that Insurtech CEOs look for in a carrier partner, executives have said.
During a panel session during InsureTech Connect’s 2023 Las Vegas event, insurtech leaders described what they look for when considering how they work with and select insurers and other partners.
Carriers have undergone a “shift” in how they look at insurtech – Policygenius CEO
Over the last decade, a “real shift” has occurred when it comes to insurance carrier willingness to partner with insurtech businesses, according to Jennifer Fitzgerald, Policygenius CEO and co-founder.
“In the early days, we had to work through a third party BGA, we weren't able to get appointed with life carriers directly,” Fitzgerald said. “I remember one P&C carrier, I finally got through to the regional sales manager for Brooklyn [and they] gave us an appointment to sell in Williamsburg, Brooklyn, where we had our co-working space.
“I was like, I don't think you get the model that we're trying to build here.”
Fast-forward a few years, and Policygenius, which was acquired by Zinnia in 2023, has worked with carriers to develop new products and models of underwriting, Fitzgerald said.
“With the combined company with Zinnia, we're really seeing an exciting market receptiveness to that end-to-end value proposition, from consumer to distributor to carrier, so it's been a real evolution,” Fitzgerald said. “That's probably been one of the biggest benefits to the whole insurtech rollercoaster, is it you really pulled along and gave some proof points to a several-hundred-year-old industry that's not well known for moving quickly and innovating.”
Research
New Hippo Report Reveals Homeowners Are Staying Put And Taking On DIY Projects To Lower Maintenance Costs
Hippo (NYSE: HIPO ), the home insurance group focused on proactive home protection, today announced findings from its 2023 Hippo Housepower Report , a national survey of over 2,245 U.S. homeowners revealing that current financial and economic conditions haven't stopped homeowners from completing home maintenance and repairs to protect their homes. In fact, completing DIY tasks is now the most popular way to stay ahead of managing responsibilities as home budgets remain tight in 2024, according to the survey.
"This past year's low housing inventory and high interest rates have homeowners being cautious about the costs of homeownership, leading them to prioritize budgets and find new ways to prevent small problems from becoming big issues," said Rick McCathron, Hippo President and CEO. "Looking ahead, nearly one-third of homeowners who participated in our survey said they would advise their peers to prioritize scheduling and budgeting for regular, proactive home maintenance and emergencies in 2024."
Hippo offers homeowners DIY tools and guidance from certified home experts to build their confidence and take a more active role in their property's year-around protection. In the Hippo Home mobile app, homeowners can complete home health assessments, receive personalized checklists of preventive maintenance tasks, and receive ongoing access to home experts for advice on how to address issues.
Claims
[Ed. Note: Highly Recommended] January FOCUS: Claims | Insurace Thought Leadership
ITL FOCUS is a monthly initiative featuring topics related to innovation in risk management and insurance. This month, we're focusing on Claims**
In the 1980s, my boss told me he had a system for dealing with dunning notices. He made plenty of money to cover his only somewhat extravagant lifestyle. He just hated being pestered. So if he was late paying a bill and got a notice, he'd throw it away. He'd do the same with the next one and the one after that and the one after that, until he was threatened with being referred to collections. Then he'd send a check for all but $1.50 of what he owed, knowing the vendor would keep sending him monthly notices. When the notices again became threatening enough, he'd send a check for $1.56. Even though he'd only have the tiniest balance with the vendor, they'd keep notifying him about it every month.
The goal was to penalize the vendor by getting it to spend as much as possible on billing and processing payments – maybe even more than he owed. It helped him that we were living in Brussels, so the vendors chasing him down had to pay for international postage.
While I'm in favor of paying bills rather than playing games, my boss' stunt has made me sensitive ever since to the cost of moving paper around – and the insurance industry is awash in paper. So I was happy to get to interview Kyle Evancoe, VP of sales at InvoiceCloud, for this month's ITL Focus on claims. The company is addressing one of the big sources of paper in claims, by helping firms accept premiums digitally and make payments through whatever digital means is preferred by the customer, to cut down on all those checks and all the expense that goes with them.
Insurance Thought Leadership. Paul Carroll, editor-in-chief
7 claims executive insurtech predictions for 2024
Several executives at Crawford & Co., the global claims management and business services firm, recently gave some thought to how the insurance industry will evolve in 2024.
What emerged among their varied perspectives was a significant focus on technology applications in the insurance sector over the coming year. What follows is a collection of their predictions.
Demand will grow for in-person business interactions.
Crawford & Co. President & CEO Rohit Verma Rohit Verma
“2024 will present a tipping point, as we find ourselves increasingly working with people that we’ve never met in-person before, and subsequently recognize that our working relationships are no longer the same. We’ll reach the point when virtual connection is not enough, and it will become vitally important to actually meet people and form relationships face-to-face. At this point, business relationships that have been purely virtual are going to evolve to be much more in-person, simply because the desire to have that connection is going to increase…”
“We may not be back in offices full time, but the need and desire for a stronger in-person connection will be high. Fortunately, a hybrid work arrangement and personal connection are not mutually exclusive: people can meet for lunch or dinner even when working from home. Organizations can support this evolution by reiterating the need for relationships and encouraging the pursuit of connection beyond the screen. It’s just a matter of helping people see the need; that alone may be the single biggest catalyst people need from their employers.”
Losses from Japan’s New Year’s Day Earthquake to Top $6.4B
The quake was the largest since 2015, the deadliest since the 2016 Kumamoto earthquakes, and it led to the first major tsunami warning since the 2011 Tōhoku earthquake.
On Jan. 1, 2024, a magnitude 7.5 earthquake struck the Noto Peninsula of the West Coast of the island of Honshu at 4:00 pm JST, causing at least 94 fatalities and resulting in insured losses approaching $6.4 billion, according to a report from Karen Clark & Company (KCC, Boston).
Known initially as the 2024 Sea of Japan earthquake, the event was officially named the 2024 Noto Peninsula Earthquake by the The Japan Meteorological Agency (JMA). It included shaking and an accompanying tsunami that caused extensive damage on the Noto Peninsula and in the towns of Wajima, Suzu and Noto, according to a report from Al Jazeera.
It also led to Japan’s first major tsunami warning since the 2011 Tōhoku earthquake, Sky News reported, and a tsunami run-up of 4.2 m (14 ft) was measured along the Sea of Japan coast, according to the Japan Times.
The 94 fatalities and 222 missing individuals were reported in Ishikawa while over 500 were injured across multiple prefectures, making it the deadliest earthquake in Japan since the 2016 Kumamoto earthquakes, and the largest since 2015, notes KCC.
Commentary/Opinion
Is North America's property insurance market transitioning in 2024?
North America’s property insurance market will start to see more stability, capacity, and in some cases, rate relief as carriers eye growth in 2024 and new entrants bring more options to the table, according to specialists at Lockton.
“Some of our major partners are talking about growth in 2024, in terms of risk appetite, premium, and deployment of cat aggregate,” said Tom Rowley (pictured on the right), head of North American property in Lockton’s Europe division. “We are also seeing new entrants to the market in addition to increased appetite.”
Simon Scholfield, head of P&C specialties at Lockton, forecasted that North American property insurance capacity would continue to grow in domestic markets as well as in London. He shared his views on the back of what he called “a relatively stable” reinsurance renewal season.
“With this massive increase in capacity in London and all over the world, companies will need to write business to build their premium quotas, which means rate relief, ultimately,” Scholfield said. “Depending on however many catastrophes occur this year, I think we can start to see significant changes ahead towards the end of 2024.”
Innovation
CEO on how the role of technology in underwriting has changed
It was an “entrepreneurial itch” that led CEO Andy Moss (pictured) and his two co-founders - Ben Huckel and Matt McGrillis – to strike out on their own and set up Send in 2019. That initial spark has since fanned into a flame that has seen the insurtech go from strength to strength, underpinned by a fast-growing team and favourable market conditions that are seeing clients embrace innovation in underwriting.
Building a technology company to serve the pre-bind insurance space has been an incredible journey to date, he said, and one which has required every ounce of software and technology expertise he and his co-founders obtained through their 20-plus years of serving the London market. Supporting and enabling the underwriting side of the insurance lifecycle brings great variety, he said, and it’s a spark unlikely to fade given the fast pace of evolution being seen across the insurance ecosystem.
“You’ll hear it a lot from companies that have grown like us, but we’ve been very lucky along the way to have some great people throw their weight behind us,” he said. “Our customer base wanted to see something different in the market and wanted to encourage some plucky, smaller company to do that something different. The state of the market as set by the larger incumbent software vendors has been a real catalyst for our success.”
People
Shawn Broadfield Joins CrashBay as Board Advisor
CrashBay, the digital marketplace specializing in end-to-end collision repair solutions for fleets and insurance carriers, announced the appointment of Shawn Broadfield to its executive team in the role of board advisor.
John Harvey, CrashBay Founder & CEO, said, “We are thrilled to have Shawn join our team, his extensive experience as an insurance and collision executive offers a unique perspective that is rare to say the least.” Andrew Daniels, CrashBay Co-founder and President commented, “I consider Shawn to be a long-time mentor of mine who I admired
Claims People: Sedgwick, Berkshire Hathaway Specialty and Philadelphia Insurance
Sedgwick Promotes Tech Leader. Sedgwick has appointed Leah Cooper as global chief digital officer, a new position.
Berkshire Hathaway Announces Promotions, New Hire. Berkshire Hathaway Specialty Insurance announced two promotions and one new addition to its North American claims team. Courtney Koch was promoted to senior vice president, healthcare and casualty claims. Kathryn Ridenour was promoted to senior vice president, professional and construction claims. Also, BHSI hired Anthony Pizzonia as vice president, healthcare claims.
Philadelphia Insurance promotes 2 VPs. Philadelphia Insurance Cos. has prompted Kimberly Czap and Douglas Killeen, both vice presidents, to senior vice president positions.
2024 PREDICTIONS
FinTech Magazine's 2024 lookahead: Insurance and insurtech
Experts from Snowflake, Workday, AutoRek and Fadata give us their predictions for 2024 relating to the insurance and insurtech industry
As we look ahead to 2024, FinTech Magazine has gathered insight and expertise from dozens of leaders representing companies operating right across the financial services spectrum.
In this instalment, the focus is on the insurance and insurtech sector.
With the introduction of more LLMs and generative AI in the industry, the way in which customers interact with service vendors is evolving toward more visible engagements, with AI acting as a co-pilot in those experiences.
For example, with consumer banking and wealth management, we will see AI-powered products that have a natural language and questioning type feel that will guide consumers in lieu of a human asset manager.
Seven in 10 organisations worldwide feel pessimistic about insurance market prospects or unprepared to handle coming disruptions, IDC data shows. Beyond productivity boosts, AI will help settle nerves and instil confidence as the technology will drive increasingly sophisticated insurance products, enabling providers to be more predictive and prescriptive.
By nature, the insurance industry is particularly exposed to external factors like climate change, cybersecurity threats and an evolving economic environment. AI will offer more sophisticated recommendations for how insurers can prepare and protect against unpredictable events like extreme weather or unplanned policy changes. For example, AI models could use climate data like geography, temperature and historical weather trends to develop a predictive analysis of weather patterns, which will, in turn, enable them to make specific solution recommendations to a customer, like developing a three-month policy on flood insurance in anticipation of hurricane season.
As AI and ML models become more sophisticated, they’ll be able to more accurately predict changes and proactively offer product and policy recommendations that can support both insurers and their customers. By using AI and ML, insurers can take on the role of proactive value creator and advisor, as opposed to just reacting to circumstances.
Nicole Carrillo, Managing Director, Financial Services at Workday