Connected Car Features? No, Thanks, Privacy-Obsessed Users Say  February 20th 2023

Presidents' Day 2023 - History, Date & Holiday

Presidents' Day is a federal holiday celebrated on the third Monday in February; Presidents' Day 2023 will occur on February 20. Originally established in 1885 in recognition of President George Washington, the holiday became popularly known as Presidents' Day after it was moved as part of 1971’s Uniform Monday Holiday Act, an attempt to create more three-day weekends for the nation’s workers. While several states still have individual holidays honoring the birthdays of Washington, Abraham Lincoln and other figures, Presidents' Day is now popularly viewed as a day to celebrate all U.S. presidents, past and present.

Connected Car Features? No Thanks, Privacy-Obsessed Users Say

Study reveals that the answer is often no, as in some cases, less than 50 percent of the drivers would be willing to share personal information for certain connected vehicle capabilities.

The 2023 Deloitte Global Automotive Consumer Study asked drivers in several large markets, including China, Germany, India, and the United States, if they are interested in the benefits of a connected vehicle if this involves sharing personally identifying data.

The answer could be bad news for the direction the automotive industry has embraced.

Gen Z: Insurers Must Learn to Connect with the ‘Most’ Generation

Generation Z, also known as Gen Z, iGen, post-millennials, and the New Greatest Generation, is a consequential generation that may play a significant role in addressing the global challenges of global warming, inequality, and political and social unrest.

This generation is known to be the “most” generation in history, with characteristics such as being the most racially and ethnically diverse, most educated, most digitally savvy, and most non-conformist, with a rejection of traditional financial pursuits and embrace of non-binary ideas.

With a population of 25 percent of the world’s population and $7 trillion or more in purchasing influence, and comprising 27 percent of the workforce by 2025, businesses need to take note of the unique characteristics and behaviors of Gen Zers in order to tap into their zeitgeist and remain relevant. Oliver Wyman’s recently published report “What Business Needs to Know About The Generation Changing Everything,” as part of the A-Gen-Z series, aims to shed light on the behaviors, preferences, and impact of Gen Zers on various aspects of society, including the workplace, economy, healthcare, and brand marketing.

For property casualty insurers, the rise of the Gen Z demographic is expected to have significant implications in the coming years. This cohort is poised to become the largest consumer demographic in history, with a projected size of nearly a third of the global workforce by 2030. In light of these developments, it is important for insurance companies t

Tesla wins top spot in U.S. luxury market, first American winner in 25 years

Tesla has become the first American brand in 25 years to reach the top of the U.S. luxury market, beating out 2021’s winner BMW.

In total, the EV maker sold 491,000 vehicles in 2022, 158,612 more than its luxury market competitor BMW, who finished the year with 332,388 U.S. sales. In 2021, the German brand sold slightly more vehicles than it would a year later, hitting 336,644 units, modestly beating Tesla’s estimated 313,644 sales. Mercedes-Benz and Lexus arrived in third and fourth place respectively. The only other American company to reach a top ten ranking was Cadillac, with sold 133,726 and finished in sixth place.

Tesla’s success in the U.S. luxury market contrasts the number of challenges the brand faces. Despite selling a record number of vehicles in 2022, the company still fell short of its delivery target, even after hosting surprise holiday discounts in December. The brand’s CEO, Elon Musk, was heavily criticized for his purchase of Twitter, which some investors believe came at the cost of the publicly traded car company. Although it still overwhelmingly dominates the EV space in the U.S., its market share is steadily decreasing as legacy automakers, such as Ford and General Motors, pushed out new electric lineups.

By December, the company’s share price had also declined by an unenviable 70%, hitting a two year low in January, although shares have since started to rebound.

McKinsey Global Insurance Report 2023: Commercial P&C

Global commercial property and casualty (P&C) lines have delivered strong financial performance in recent years following the soft market of 2013 to 2018, despite widespread disruption in the wake of the COVID-19 pandemic, the war in Ukraine, and the resulting supply chain disruptions.

Premiums have been propelled by extensive year-on-year risk-adjusted rate hardening: the annual premium growth rate for commercial P&C lines has hovered at 6 to 8 percent since 2018, and combined ratios have been improving (Exhibit 1).

Trends in Insurance

On January 25th, 2023, I hosted the first Aite-Novarica Women’s Network meeting of the year on the topic of trends in insurance. I was joined by fellow Aite-Novarica Group Senior Principals Carey Geaglone and Deb Zawisza as well as Aite-Novarica Group’s Head of Property & Casualty Martina Conlon as we shared our perspectives on current trends in insurance for 2023.

In our discussion, we summarized new Aite-Novarica Group research on insurers’ IT priorities for the coming year, developments in the insuretech ecosystem, and overall trends in the industry for both P/C and L/A/B carriers. To read these research reports in full, visit our website. Here are the key takeaways from our meeting

Nancy Keating Casbarro, VP Research & Consulting, Aite-Novarica Group

Balance speed accuracy in commercial lines underwriting

"I feel the need…the need for speed." This quote from the movie Top Gun can easily apply to insurance. It started in personal lines, as auto and home insurers competed for faster ways to deliver quotes and bind coverage. And now it's impacting commercial lines, as carriers look to underwrite complex risks more quickly to meet agent and policyholder expectations.

But how fast is fast enough? It's clear that insurers need to be fast to be competitive. Turnarounds of weeks or days to evaluate, quote, and bind policies don't really cut it anymore. But underwriting accuracy is just as critical. If a carrier can't get accurate risk-evaluation information, it doesn't matter how fast the technology works. Consider this scenario: an underwriter at an insurer uses an automated data-delivery solution to prefill underwriting questions. The data solution can populate answers in five seconds, but when the underwriter reviews the prefilled answers, they notice there are errors or inconsistencies. The underwriter then must spend hours doing manual research to find the correct information.

In the quest for accurate underwriting data, carriers must balance speed and accuracy to deliver precise risk evaluation, with the expectation and result of comprehensive and fair premium pricing for both the insurer and its policyholders.

Dr. Simi George Chief Data Scientist And Product Officer, NeuralMetrics

Litigation Funders Deployed $3.2B in U.S. Investments Last Year

Companies that finance U.S. commercial lawsuits in exchange for a cut of any recoveries upped their investments last year, committing $3.2 billion, according to a new report.

That represents a 16% increase in capital committed to new U.S. litigation funding deals, marking the largest annual increase in the past three years, litigation finance advisory firm Westfleet Advisors said in its report on Thursday.

Westfleet CEO Charles Agee said there are likely several factors driving the growth, including a rush to bring cases that were delayed as a result of the COVID-19 pandemic. He also cited “inflation” from higher law firm billing rates and litigation expenses.

Travel Insurance to Take Off as Year-End Cancellations Spook Flyers

Demand for travel insurance in the United States is set to jump this year, as more Americans turn cautious after a spike in flight cancellations and lost luggage in the last two months upended holiday plans of tens of thousands across the country.

Cancellations jumped 73% to 210,503 flights in 2022 from a year earlier, as per flight tracking website FlightAware, largely due to adverse weather and network outage.