Commentary/Opinion
Protecting High Net Worth clients from wildfires as capacity tightens
In recent years, high-net-worth (HNW) individuals seeking insurance protection against wildfire risks have hit a snag: a shrinking pool of insurers willing to cover such high stakes. This scarcity has not only ramped up premiums but also left many scrambling for alternatives to safeguard their assets.
Aiming to fill this ever-growing market gap, HUB’s private client division recently launched its HNW excess wildfire program, a new solution that EVP and division head Katherine Frattarola (pictured) says will offer a rare avenue to meet both carriers’ and affluent clients’ demands.
In conversation with Insurance Business, Frattarola noted how the marketplace has significantly shrunk due to the constriction of capacity, a situation that has given birth to innovative solutions.
One of the distinctive qualities of our value proposition at HUB Private Client is to provide a consultative and advisory approach to solutioning,” she said.
Available in California, and planned for expansion in other high-risk states, the brokerage’s program was the result of over a year’s worth of work and is available to risk advisors under the Private Client division. It provides coverage on a non-admitted basis.
News
Fix a Leak Week, March 18 - 24, 2024
Leaks Can Run, but They Can't Hide
Are you ready to chase down leaks? Household leaks can waste nearly 1 trillion gallons of water annually nationwide, so each year we hunt down the drips during Fix a Leak Week. Mark your calendars for EPA's annual Fix a Leak Week, March 18 through 24, 2024—but remember that you can find and fix leaks inside and outside your home to save valuable water and money all year long.
From family fun runs to leak detection contests to WaterSense demonstrations, Fix a Leak Week events happen from coast to coast and are all geared to teach you how to find and fix household leaks.
Learn how to find and fix leaks during Fix a Leak Week. It's as easy as 1-2-3.
Mercury Insurance Continues Partnership with Flume Water Monitor to Help Policyholders Reduce Water Leaks
Mercury Insurance has announced the company's ongoing partnership with Flume — a leading provider of smart water loss prevention technology — will provide additional savings for Fix a Leak Week (March 18-24).
Mercury policyholders can save 25% on the retail price of Flume. In addition, in qualifying states*, Mercury will provide discounts on homeowners insurance after the device is installed and will keep the discount going as long as it is active.
"We are excited to continue this partnership with Flume," said Adam Bakonis, Mercury Senior Product Manager. "Water leaks are the leading cause of non-weather-related homeowner losses. Saving our customers money while providing them multiple layers of protection means we are doing our job."
Flume's Smart Home Water Monitor is compatible with about 95% of residential water meters in the United States (you can check compatibility at flumewater.com). The device straps around your water meter and lets you know exactly how much water you're using. After a quick, 10-minute DIY installation, Flume begins monitoring your water usage and can help prevent or reduce damages due to leaks. The instant Flume catches a leak, a notification is sent directly to an app on your cell phone.
Flume has found that 70% of users find a leak within 30 days and that 10% of homes have leaks that waste more than 90 gallons of water a day.
The Flume app is unique in that it allows you to monitor your water usage inside and outside your home. The app saves customers money by alerting them in real time to abnormal water usage and uses machine learning to increase efficiency and allows consumers to manage and monitor their water usage.
Climate/Resilience/Sustainability
Zurich Insurance & Sustainability
Sustainability is how we do business.
Along with the Annual Report we have published our Sustainability Highlights for 2023.
Last year, we continued to deliver on our existing ambitions with our efforts focused on Planet, Customers and People. Hear from our experts about how we integrate sustainability across our global business.
Learn more about what we stand for here
Gen Z Drives the Automotive Industry Towards a Sustainable Future
The demand for environmentally conscious solutions is gaining momentum across various sectors, and the automotive industry is no exception.
This rising tide of sustainability awareness is largely driven by a new generation of consumers: Generation Z. Studies indicate that 82% of Gen Z individuals express concern about the future of the planet and 76% are actively changing their behaviours to lessen their environmental impact.
While Gen Z currently constitutes a small segment of the automotive market, making up 26% of the global population, as more of them become driving age, their influence will grow.
This is a pivotal moment for the automotive industry. As Gen Z increasingly takes to the wheel, the industry must be ready to engage with this new generation of environmentally conscious consumers and explore new means of reducing the environmental impact of the automotive industry. By listening to the evolving preferences of this influential generation, automotive leaders can pave the way for a future fuelled by both economic growth and environmental responsibility.
A used part revolution
In recent years, the fashion industry has undergone a huge shift, redefining the perception of ‘used’ clothing as ‘pre-loved’ and championing sustainability. This shift has not only benefited the environment but also resonated with eco-friendly consumers seeking quality without compromising on their values.
The same revolution must happen in the automotive industry if it wants to continue to attract the environmentally conscious Gen Z. To do this, the perception of used-car parts need to change.
To tackle this misconception, insurers, body shops and garages have a responsibility to educate their customers. There’s a lingering stigma about using car parts, with consumers often associating “used” with inferior quality. But pre-owned car parts don’t equate to scrap; they don’t compromise safety. They can be more efficient, sustainable and cost-effective, whilst doing the job just as effectively as new parts.
This transition to used car parts isn’t just another example of greenwashing either – it could be transformative for the industry. A report from Allianz, Risk reports mirror outcomes of Allianz Motor Day: more green initiatives needed to solve climate change this research indicates that a mere 2% rise in repair rates across Europe could slash annual CO2 emissions by 30,000 tons.
Sandra Bolanos, Marketing Specialist, Solera
Sustainable roadside assistance for cars and bicycles | Better World Club
Nationwide Eco-friendly Roadside Assistance.
Sustainable roadside assistance for cars and bicycles.
Better World Club provides 24/7 emergency roadside assistance for cars and bicycles in all 50 States, plus we cover Canada. It doesn’t matter where you are, what car you’re in, or who is doing the driving. If you get stuck and need help, we will be there.
Diana Chepng’eno Speaks About Insurance Solutions for Sustainable Blue Economy – United Nations Environment – Finance Initiative
Diana Chepng’eno, the Africa and Middle East Coordinator for the V20 Sustainable Insurance Facility, was invited to speak at the Institute of Loss Adjusters and Risk Surveyors conference on Insurance Solutions for Sustainable Blue Economy.
The conference, held in Mombasa on the 13th of March 2024, was attended by industry representatives, regulators, and policy makers, including Godfrey Kiptum, Commissioner for Kenya’s Insurance Regulatory Authority.
Mr Kiptum spoke about the need for Loss Adjustors and Risks Surveyors in the region to commence action on Environmental and Social Governance with a focus on implementing the UN’s Principles for Sustainable Insurance.
At the event, Diana spoke about the impact of climate change on coastal infrastructure and business operations, covering important issues such as natural disasters, climate impacts on waterways and oceans, risks to ecosystems, and incorporating ESG for meaningful impact.
Insurers exiting high-risk areas as climate losses rise 360%: Bloomberg
Bloomberg Intelligence (BI) has said that a 360% rise in insured losses in the past three decades from the increased frequency and intensity of natural disasters is causing insurers to “hike premiums and exit high-risk areas,”.
At the same time, transition risk associated with the assets backing these liabilities is said to be “pressuring insurers” to cut coverage of polluting sectors in their investment portfolios.
According to BI, global insured losses from natural disasters in 2023 are estimated at $118 billion, which is well above the 2017-21 average of $97 billion.
The BI team also explained that more than 50% of the top 20 global reinsurers held or cut their natural-catastrophe exposure in the January 2023 renewals.
This includes: Allstate, who are set to stop writing new policies in wildfire-prone California, and AIG, who has also retreated from new business in the state and is set to curb home-insurance for wealthy customers in certain ZIP codes across the United States.
Research
Do people trust Progressive, State Farm and GEICO?
Which brands carried the most loyalty?
Insurity has revealed the results of its recent property and casualty (P&C) Consumer Pulse survey, revealing the most trusted carriers in the US.
The survey, aimed at gauging consumer perceptions of trust towards carriers in the country, pinpointed State Farm, Progressive, and GEICO as the leading brands in earning consumer trust.
Specifically, State Farm emerged as the most-trusted P&C insurance carrier, securing 21% of consumer trust, followed by Progressive with 17%, and GEICO closely behind at 16%.
Insurity emphasized the significance of trust for insurance carriers particularly in the highly competitive P&C insurance sector. It described trust as the cornerstone of the relationship between carriers and their policyholders, with consumers who trust their insurance provider more inclined to stay, notwithstanding potentially lower prices or aggressive marketing efforts from competitors.
This loyalty not only stabilizes the customer base but also bolsters the carrier’s standing in the marketplace, drawing in new clients through positive referrals and high satisfaction scores.
Sylvester Mathis, chief insurance officer at Insurity, emphasized its importance.
“In today’s digital age, where information and consumer feedback are rapidly shared, a single breach of trust can have far-reaching consequences,” he said. “Consumers today are more informed and have higher expectations, and they value transparency, responsiveness, and reliability in their interactions with carriers. Being deemed trustworthy signifies a carrier’s commitment to meeting these expectations, ensuring the security and privacy of customer data, and delivering on promises made.”
The survey, conducted online in January 2024, involved more than 1,000 adult participants across the United States.
InsurTech/M&A/Finance💰/Collaboration
SquareDash Raises Over $20 Million to Accelerate Growth and Get America's Contractors Paid Faster
SquareDash, the top payment advance platform in the property insurance restoration industry, today announced it has raised over $20 million in total financing to accelerate growth. The latest equity round, led by FINTOP Capital, builds on SquareDash's previous equity raise in mid-2023 with participation from Hivers and Strivers, The PenFed Foundation, i2BF Global, The Hustle Fund, The Council and other angel investors. The company also secured a $15 million credit facility that can expand to $25 million as needed. The funds will be used to expand the company's payment advance and subscription services, grow the team, and invest in sales and marketing.
Founded in 2022 by U.S. Navy veteran Matt Fruge after successfully running a roofing company for over 10 years, SquareDash offers both claim funding and a subscription service to manage the billing, payment, and collections process. This empowers roofers and restorationists, especially those in the $2 million to $15 million revenue range, to overcome insurance claim challenges and get paid the same day they finish work.
"As a former roofer myself, I know firsthand the cash flow challenges faced by roofing and restoration businesses," said CEO and Founder of SquareDash Matt Fruge. "With this latest funding, we'll be able to help even more of these entrepreneurs get paid faster for their hard work and grow successful businesses. I'm grateful for the support of FINTOP Capital, PenFed Foundation, and all our investors who share our mission."
One Inc’s Digital Payments Offering Enjoys Growth ‘Beyond Exponential’
While preparing for a catch-up call with One Inc CEO Ian Drysdale, we couldn’t help remembering an ambitious prediction he made when we last met, at the ITC show in 2022. He predicted then that the company would grow over 50 percent in the coming year. In our top story today, Drysdale confirms that One Inc’s rate of growth in in 2023 was 65 percent. The company was certainly offering the right technology at the right time, offering digital payment solutions that the pandemic only made more attractive. However, the company has also made some excellent decisions along the way, for example, the acquisition of Invenger InsurPay in 2020 and the launch its payment network in 2021. Just as we were readying publication of a piece based on our recent conversation with Drysdale, One Inc announced that Nordic Capital had joined Great Hill Partners as an investor in the company, which ensures robust investment in the company as it hits its stride.
Anthony O'Donnell, Executive Editor, Insurance Innovation Reporter
FEATURED STORY
One Inc’s Digital Payments Offering Enjoys Growth ‘Beyond Exponential’
The company has surged through its ability to offer cost savings through a shift in credit card fee payments and the digital opportunity afforded by One Inc’s huge payment network.
People
NAIC Announces Gary Anderson as CEO
The National Association of Insurance Commissioners (NAIC) today announced the appointment of insurance veteran and current Massachusetts Insurance Commissioner Gary D. Anderson as the organization's Chief Executive Officer. Anderson will begin leading the 153-year-old insurance standard-setting organization governed by the chief insurance regulators from the 50 states, the District of Columbia, and five U.S. territories by May 1, after completing his service as the Massachusetts Insurance Commissioner.
"Selecting the next NAIC CEO has been arduous but rewarding," said NAIC President and Connecticut Insurance Commissioner Andrew Mais. "We were looking for the best fit, and we found it in Gary Anderson. Gary's dedication to our state-based system of insurance regulation and his insurance expertise are top notch. We look forward to his leadership as we navigate the complexities of regulating the insurance sector and deliver on our mission to protect consumers."
"I have been fortunate to serve the Massachusetts insurance-buying public under three governors: Gov. Deval Patrick, Gov. Charlie Baker, and now Gov. Maura Healey," said Anderson. "Throughout my career in public service, I have been rewarded with valuable experiences, new and lasting connections, and opportunities to contribute to a greater good. I am excited to embark on the next adventure as CEO of the NAIC, supporting the state-based system of insurance regulation. Thank you to the NAIC Members for the trust and faith you have placed in me."
Canada
How Aviva Canada is handling personal lines’ pressures
Aviva Canada’s overall combined ratio for 2023 stood at 95.3% (undiscounted) but there was a difference between the year-end combined ratios for personal versus commercial lines.
The insurer’s personal lines combined ratio (COR) last year came in at 99.5%, up 4.3 points from 95.2% in 2022. Commercial lines’ COR was 88% in 2023, down 2.9 points from the previous year.
Aviva Canada CEO Tracy Garrad told Canadian Underwriter on Thursday that auto theft was one of the biggest drivers. Supply chain inflation across auto and home restoration as well as unprecedented weather events (especially wildfire) also contributed, she said.
Aviva Canada also attributed the personal lines COR to a variety of factors, including “heightened weather-related losses, higher reinsurance costs, claims frequency returning to more normal levels, and elevated Ontario auto theft.”
But the insurer is looking at a few options to help bring down the personal lines COR, Garrad told CU in an interview following the release of Aviva’s 2023 full-year results