News
Chubb Reports Record Fourth Quarter Per Share Net Income
Chubb Limited (NYSE: CB) today reported net income for the quarter ended December 31, 2023 of $3.30 billion, or $8.03 per share, and core operating income of $3.41 billion, or $8.30 per share. Book value per share and tangible book value per share increased 14.4% and 24.1%, respectively, from September 30, 2023, and, excluding the tax benefit increased 12.2% and 20.2%. Book value per share and tangible book value per share now stand at $146.83 and $87.98, respectively. Book value was favorably impacted by after-tax net realized and unrealized gains of $4.88 billion in the company's investment portfolio, principally due to the mark-to-market impact from declining interest rates in the fixed-income portfolio. Book value per share and tangible book value per share excluding AOCI increased 4.5% and 6.1%, respectively, from September 30, 2023, and, excluding the tax benefit, increased 2.7% and 3.3%.
Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb Limited, commented: "We had a record fourth quarter which contributed to a blowout year – the best in our company's history. The quarter's results included double-digit P&C premium growth globally, record P&C underwriting income with a world-class 85.5% combined ratio, record investment income, and strong life operating income, all leading to exceptional operating earnings on both a per-share and dollar basis. Our results, both earnings and book value related, were positively impacted in a significant way by a one-time deferred tax benefit related to Bermuda's new income tax law. Core operating income was $2.3 billion excluding the tax benefit, up 36%, or $5.54 per share, up 39%. The one-time tax benefit then added $1.1 billion or $2.76 per share.
Protective Insurance rebranding, becoming Progressive Fleet & Specialty Programs
New name provides same great coverage, exceptional customer service
Progressive Insurance®, the number one Commercial Auto insurer in the U.S., today announced a new name for its large fleet commercial line (CL) coverage, formerly known as Protective Insurance, to Progressive Fleet & Specialty Programs (Progressive Fleet).
The new name reflects the integration of businesses and captures Progressive's expanded expertise in large fleet transportation and niche insurance programs designed for those in the transportation and delivery industries. Progressive acquired the Protective Insurance Corporation in 2021 and the official brand name change aims to benefit agents and customers with a nationally recognized brand.
"This announcement was part of our strategy when we first acquired Protective almost three years ago," said Karen Bailo, Progressive's Commercial Lines President. "Our vision has come to fruition with this announcement enabling us to promote our full suite of capabilities in the transportation market."
Before joining Progressive, Protective Insurance had a decades-long heritage of marketing and underwriting insurance, including workers' compensation, primarily for the transportation industry.
Commentary/Opinion
Cautionary Tales on AI | Insurance Thought Leadership
Here are examples of problems with AI to remind us of what it can't do, at least not yet, and of what problems overreliance on it can cause.
While generative AI is a game changer for business, including insurance, the rush of excitement over any new technology always makes me a bit nervous. Remember when the metaverse was going to change everything? How about Google Glass before that? Virtual reality? And I'm not just talking about all the VR hype a decade ago, when Facebook bought a startup, Oculus, for $2 billion. I'm also talking about the first time virtual reality was going to change everything, back in the 1980s.
I think it's worthwhile to look out for examples of problems with AI from time to time, if only to remind us of what it can't do, at least not yet, and of what problems overreliance on it can cause. Just to keep us honest.
Paul Carroll, editor-in-chief, Insurance Thought Leadership
InsurTech/M&A/Finance/Collaboration
Authentic and Carpe Data Partner to Deliver Hyper-Tailored Insurance Solutions to Niche Affinity Groups
Authentic will integrate with Carpe Data’s Minerva suite to streamline insurance processes, enhance underwriting practices and efficiently deliver tailored insurance solutions to overlooked markets.
Carpe Data, the next-generation online data provider for insurers, today announced Authentic will integrate Minerva, an emerging and predictive business classification data solution, into its disruptive captive insurance infrastructure tool. Authentic is an emerging player empowering organizations outside of traditional insurance to launch hyper-tailored captive insurance programs. By integrating Carpe Data’s Minerva platform into its infrastructure tool, Authentic brings efficiency and automation to captive insurance while providing tailored coverage to specific small business markets, such as gyms, restaurants, retail stores, etc.
“Underwriting SMB commercial insurance is time intensive because it’s complex — creating a vacuum in alternative distribution channels due to underwriting inefficiencies and low profit margins,” said Max Drucker, CEO of Carpe Data. “Authentic is filling this void through its tech-forward, disruptive approach. Minerva sources hundreds of unique data points on businesses and uses a combination of AI and advanced data science techniques to extract relevant, accurate and predictive insights on these companies. This will help Authentic’s partners better classify and select commercial risks with greater speed and accuracy than traditional methods.”
Wisedocs Raises $9.5M in Series A Funding
Wisedocs, a Toronto, Canada-based machine learning software-as-a-service (SaaS) for medical record review, indexing, and summarization, raised $9.5M in Series A funding.
Wisedocs, a Toronto, Canada-based machine learning software-as-a-service (SaaS) for medical record review, indexing, and summarization, raised $9.5M in Series A funding.
The round was led by Information Venture Partners, and by Thomson Reuters Ventures and ManchesterStory.
The company intends to use the funds to expand operations and its business reach.
Led by Connor Atchison, Founder and CEO, Wisedocs is the medical record indexing, review, and AI summaries software platform for insurance carriers, healthcare providers, law firms, and TPAs for the claims industry. It serves the auto, liability, disability, workers’ compensation, tort law, and similar markets and additional provides a solution for improved accuracy and speed to deliver improved outcomes in processing medical records.
Wisedocs raised $4.1M in a seed round in 2022 and launched their Summaries platform in 2023.
The state of InsurTech and what to expect as we head into 2024
Utilising Insurity’s analytics solutions grants carriers an enhanced level of reliable insights into their portfolios, facilitating heightened segmentation and improved loss ratios.
The flagship offering of the solution, known as Insurity Predict, harnesses the power of AI to elevate predictive analytics and modelling capabilities, delivering a substantial enhancement in loss ratios and instilling credibility in strategic decisions.
This solution goes beyond merely boosting the accuracy of risk assessment; it also streamlines the underwriting process. Insurity’s analytics models employ advanced AI and machine learning techniques, enabling automation and furnishing superior decision support.
The move has come in response to today’s complex P&C insurance market, which is facing insurance organisations with a myriad of challenges which require accurate and timely decision-making.
Conventional approaches employed by insurers frequently suffer delays, resulting in considerable financial losses and operational hurdles. Insurity’s analytics solutions, driven by AI-powered insights, provide sophisticated, real-time, and reliable insights. This empowers insurers to acquire a more profound understanding of their portfolio, facilitating proactive business management.
Sam Evans, Partner, EOS Venture Partners
EMEA
75% of insurance organisations set to replace core insurance management platforms by 2025
75% of insurance organisations will replace core insurance management platforms by 2025, according to a new global report from Novidea.
The report, which is based on data collected in a 2023 survey of 330 full-time, C-level insurance leaders across eight countries, highlighted that this digital transformation is set to be accelerated across the London Market in particular – due to the implementation of Blueprint 2.0.
This is set to mean London brokers will make the switch a year early, in 2024.
Entitled “Legacy Out, Digitalization In: The State of Modern Insurance Technologies 2024,” the report delves into the challenges faced by insurance organisations globally and their readiness for the impending digital transformation.
According to the findings, 99% of global insurance organisations have plans to change their core technology systems, with 41% indicating this upgrade within the next 12 months and another 34% by 2025. Challenges identified by insurance leaders include data quality (41%), data privacy and security (35%), and scale (35%).
UK InsurTech funding defies global trends
UK InsurTech companies saw their funding double in 2023 compared to the previous year, defying global trends from across the sector.
In total, UK firms raised a combined $395m in 2023, a 43% increase from 2022, according to research from InsurTech Analyst.
This total was raised over 40 deals – which were primarily larger raises – as total deal activity decreased 35% year-on-year. In fact, the average deal size in the UK InsurTech sector increasing to $9.9m, more than doubling from the figures recorded in 2022.
The largest of these tranches was secured by Quantexa, a firm which provides data analytics for anti-money laundering. The London-based firm secured a whopping $129m in a deal which marked the largest European InsurTech deal in 2023, in a round led by GIC.
These large deals are a far cry from the global trends across the sector – underlining the UK’s success in the InsurTech space.
InsurTech industry experts predict positive 2024 despite low European deal activity last year
InsurTech industry experts are expecting the space to bounce back in 2024 after a drastic drop in deal activity last year.
Research from InsurTech Analyst highlighted that the European InsurTech deals sector suffered a sharp downturn in fortune in 2023, but now industry experts are downplaying the slump.
Benjamin Deplus, Principal in the Venture Team at Breega, one of the fastest growing VC companies in Europe, gave his view on the decline and explained why there is cause for optimism. He said, “In 2023, the InsurTech sector matured significantly. Numerous companies within the industry secured substantial funding to support their growth initiatives at cost. However, despite the influx of financial support, there was a decline in both the number of deals and overall investment due to challenges stemming from inadequately automated technologies.
“For 2024, expect a new wave of InsurTech deals and investment. From cyber-insurance to complex risk and adopting AI, there are a lot of growth opportunities for the sector.”
2023 REVIEW
J.D. Power Inaugural Insurance Annual Report
As we take a look back at 2023, we’re pleased to share our inaugural Insurance Annual Report!
The report highlights key actionable insights from each of our 2023 insurance and cross-industry benchmark studies.
Download this free report now, and don’t forget to join our list for the latest from our insurance intelligence team 👉🏻
Marcus Skerske, Strategic Account Director, Insurance Business Intelligence at J.D. Power
2024 PREDICTIONS
Sedgwick highlights industry trends for the year ahead
Sedgwick launches ‘Connect 2024’ list of major trends and issues
Sedgwick’s industry experts and thought leaders are committed to keeping our clients informed on emerging challenges, opportunities and industry news. We’re excited to introduce our Connect 2024 list, which highlights major industry trends and issues that employers, carriers, brokers and risk management and human resources professionals should watch throughout the coming year. In 2024, we expect connected conversations to center around key topics related to people, property, brands and performance and our analysis pinpoints opportunities for collaboration across a variety of industries.
People: Workforce, consumer experience, health and well-being
Every critical decision you make this year will have an impact on people — whether employees, partners, clients, consumers or other constituents. And the needs of these individuals are fundamentally different now than in years past.
The workforce is not just changing; it has been transformed. Priorities have shifted; people expect elevated experiences in the workplace and in everyday interactions. Employers are thinking holistically about health and well-being options for their teams, focusing on culture and development, and finding ways to make the workplace more appealing as individuals adapt to new realities.
Throughout the year, we’ll continue to explore the ways human connection can help people during times of need — and watch how technology automates tasks to free up individuals for more personal engagement.
Insurance-Canada.ca
After 18 Straight Years, Favorable Loss Reserve Development Streak Could End
In a new article published late last week, Fitch Ratings noted the prospect that 2024 could mark the end of a run of almost two decades of aggregate loss reserve releases for the U.S. property/casualty insurance industry.
While analysts at the rating agency project that 2023 will mark the 18th straight year favorable loss development for the P/C industry overall, whether the streak ends there will hinge on “the accuracy of insurers’ loss projections for claims severity tied to inflation and litigation risks in commercial auto and other liability business,” they said in a report titled, “Inflation Boosts U.S. P/C Insurers’ Reserve Risk in Casualty Lines.”
Also highlighting personal auto, and the “uncharacteristic adverse reserve development” in that line recorded in calendar year 2022, Fitch will be watching to see whether prior-period personal auto reserve boosts persisted across the industry in calendar year 2023.
As in the commercial auto and other liability lines, carriers’ inability to gauge personal auto claims severity in 2024 year could spell the end of an era of consecutive reserve takedowns industrywide.
Citing Fitch’s expectation that GDP will drop to 1.2 percent in 2024 from 2.4 percent, the report said the combination of slowing economic growth and persistently high inflation “raise the potential for an unfavorable shift in loss reserve adequacy that clouds the earnings picture” in 2024 for the industry overall.