News
AM Best TV: InsurTech Hartford Symposium 2024 – InsurTech Hartford Attendees: AI Empowers Non-Data Scientists in Insurance
Artificial Intelligence is providing greater insight and intelligence about risks, enabling more accurate pricing and coverage, attendees to the InsurTech Hartford Symposium 2024 said.
20 insurance companies with the highest P&C market share
The top five insurance companies in the ranking have an average P&C market share of 6.50% as of December 31, 2023.
The combined direct premiums written by the top five was more than $312 billion.
Scroll through to see which insurance companies are in the top 20 and how they fared through the end of December 2023. Full list
Chubb Reports Q1 Per Share Net Income and Core Operating Income of $5.23 and $5.41, Up 15.5% and 22.7%
Chubb Limited (NYSE: CB) today reported net income for the quarter ended March 31, 2024 of $2.14 billion, or $5.23 per share, and core operating income of $2.22 billion, or $5.41 per share. Book value per share and tangible book value per share increased 1.5% and 1.8%, respectively, from December 31, 2023 and now stand at $149.09 and $89.55, respectively. Book value was unfavorably impacted by after-tax net realized and unrealized losses of $622 million in the company's investment portfolio, principally due to the mark-to-market impact in the fixed-income portfolio. Book value per share and tangible book value per share excluding AOCI increased 2.2% and 2.9%, respectively, from December 31, 2023.
- Net income was $2.14 billion, up 13.3%, and core operating income was $2.22 billion, up 20.3%.
- Net income and core operating income were impacted modestly by two one-time items: an incremental deferred tax benefit of $55 million, or $0.14 per share, related to the Bermuda tax law enacted in December 2023, partially offset by a contribution to the Chubb Charitable Foundation of $30 million ($24 million after-tax), or $0.06 per share.
- Global P&C net premiums written, which excludes Agriculture, were up 13.3%, with commercial insurance up 11.1% and consumer insurance up 19.3%. North America was up 10.1%, including growth of 12.3% in personal insurance and 9.4% in commercial insurance. Overseas General was up 17.5%, with growth of 27.1% in consumer insurance and 12.2% in commercial insurance; Asia, Latin America, and Europe were up 34.7%, 17.5%, and 8.6%, respectively.
- P&C underwriting income was $1.40 billion, up 15.4%, with a combined ratio of 86.0%. P&C current accident year underwriting income excluding catastrophe losses was $1.63 billion, up 10.3%, with a combined ratio of 83.7%.
- Life Insurance net premiums written were $1.63 billion, up 26.3%, and segment income was $268 million, up 9.8%. Life Insurance net premiums written and deposits collected were $2.23 billion, up 39.4%.
- Pre-tax net investment income was $1.39 billion, up 25.7%, and adjusted net investment income was $1.48 billion, up 23.5%.
- Annualized return on equity (ROE) was 14.3%. Annualized core operating return on tangible equity
Beyond the Claim: How Social Canvassing is Transforming Insurance Fraud Detection
In today’s digital era, insurers are leveraging social media to gather insights and evidence that could potentially support or jeopardize a person’s claim.
Recently, in the Irish town of Ennis, Kamila Grabska won a Christmas Tree Throwing competition. A photo of her was published in the Irish Independent newspaper, which went viral on X (formerly Twitter), challenging an ongoing personal injury settlement from 2017.
Prior to the photo being published, Grabska asserted that a car accident in 2017 had left her with excruciating pain, rendering her incapable of lifting heavy objects and forcing her to spend days in bed.
“I’m afraid I cannot but conclude the claims were entirely exaggerated,” she said in court. Full Article
Research
Auto insurance shoppers – what's their motivation?
A new report by J.D. Power Insurance Intelligence, produced in collaboration with TransUnion, has revealed consumers’ reasons for shopping around for auto insurance.
In its latest loyalty indicator and shopping trends report, J.D. Power noted: “As the current hard market cycle began, the leading reason for shopping auto insurance cited by consumers was they were ‘just browsing rates’. This indicates a ‘passive’ shopping experience and is consistent with results prior to the onset of the hard market.
“Over the next eight quarters, the share of consumers citing this as their primary reason for shopping dropped from 24.8% to 17.1%. At the same time, the percentage of shoppers saying ‘my rate was too high’ increased from 16.9% to 21.3% and those saying ‘my rate recently increased (not claim-related)’ increased from 7.9% to 14.6%, almost doubling.
“These reasons for shopping are indicative of a more ‘active’ shopper, seeking to switch insurers, rather than passively price checking. The recent or planned purchase of a new vehicle remains a strong trigger to shop for insurance, and almost 8% of consumers say they shop due to receiving a renewal notice.”
Commentary/Opinion
Going, Going, Gone: ‘Disruption’ to Shrink Traditional Premiums for Auto
Before the end of the current decade, the personal auto industry is likely to see a peak—and then a subsequent lasting decline—in premiums for conventional auto coverage, consultants from McKinsey & Company predict in a new report.
According to the report, “Navigating unknowns: Auto insurance questions in a new mobility era,” even though past timelines for the adoption of autonomous driving have proven to be overly ambitious, a transformation in the mobility landscape will occur within five to 10 years. The transformation will not only involve the emergence of more autonomous vehicles and electric vehicles (AVs and EVs). It will also move personal miles traveled to micro- and shared mobility solutions (biked and ride-hailing services),
Consumer Watchdog on what "will not solve" California's insurance crisis
Consumer Watchdog has expressed strong opposition against Insurance Commissioner Ricardo Lara’s proposed changes in California.
In the consumer advocate’s view, letting insurers use private black-box models and artificial intelligence in predicting the risk of catastrophic wildfires will raise home insurance prices without transparency or accountability.
In its testimony during Tuesday’s Department of Insurance workshop on catastrophe modeling and ratemaking, Consumer Watchdog asserted: “The industry’s solution is the use of black-box catastrophe models to determine how much people will have to pay for insurance. But allowing insurers to use catastrophe models will not solve this crisis.
“The evidence is clear from states that already allow the use of models. In Florida where catastrophe models have long been in use, home insurance rates are two to three times higher than California, insurers have left the state in droves, and Florida’s insurance company of last resort has five times the number of policyholders as our FAIR Plan.”
For Consumer Watchdog executive director Carmen Balber, mandating non-disclosure agreements to meet modelers’ confidentiality demands will prevent regulators and independent public interest groups from testing the accuracy of the models and from publicizing their analysis.
AI in Insurance
Generative AI (GenAI) has been described as “the next internet”, an advancement in technology that will fundamentally change the way we work...
Generative AI (GenAI) has been described as “the next internet”, an advancement in technology that will fundamentally change the way we work...As insurance market participants have started to explore ways to invest in GenAI over the past year, the immediate starting point has been “low-hanging fruit” applications of the technology, which can provide support straight out of the box.
But looking to the future of AI, sources outlined how the introduction of the technology may well bring about significant changes, such as increased regulation and a shifting workforce.
Last year, former deputy editor Marcel Le Gouais, laid out the opportunities and risks of GenAI, particularly ChatGPT, for the industry.
Now, a year on, this potential has already become more practical with the technology being implemented by companies across the industry.
This analysis which will delve deeper into precisely how GenAI is and will continue to change, help, and hinder the insurance industry. First, we will investigate how GenAI is already being used throughout the industry, and then consider the GenAI of the future.
AI not a ‘substitute,’ but can benefit insurance industry: Experts
The insurance industry is poised to benefit from the use of artificial intelligence, but adopters of the technology must stay vigilant against misuse and keep up to date on regulatory developments, experts said during a roundtable discussion on Thursday.
“Every industry’s being changed,” Bill Taylor, president and CEO of the Pennsylvania Compensation Rating Bureau and the Delaware Compensation Rating Bureau, said in Philadelphia. “It’s going to impact work comp. It’s going to help with risk management.”
Mr. Taylor, speaking during the joint rating bureaus’ inaugural Workers Compensation Symposium, led a panel of industry experts who offered predictions and insight on how the workers comp sector is evolving through the use of AI.
“If anything, it makes our jobs more efficient,” said Ramona Tanabe, president and CEO of the Cambridge, Massachusetts-based Workers Compensation Research Institute.
Still, the industry is cautioned against the “overreliance” on AI, since it’s “not a substitute,” but an additional tool that can be leveraged by insurance professionals, Ms. Tanabe said.
“The efficacy of AI wholly relies on your ability to support it with good data,” said Russell Sommers, a New York-based partner with consulting and accounting firm Baker Tilly who has expertise in insurance risk and compliance.
The insurance industry must stay vigilant with AI, since the platform, if used wrongly, can negatively affect claims management, Mr. Sommers said.
Human error can likely lead to problems with around 30 to 40 claims per day, while errors made with AI can potentially affect “thousands” of claims per day, he said.
How to Choose the Right AI Solution for Your Insurance Business
Discover expert tips for selecting the ideal AI solution for your insurance business. Optimize operations and enhance customer experiences with the right AI solution.
This blog dives deep into what you should consider when selecting an AI solution for claims management, emphasizing the importance of customization, scalability, support, return on investment, and, most importantly, identifying real business problems in claims handling.
The insurance industry stands at the cusp of a significant shift, powered by Artificial Intelligence (AI). As the sector struggles with claims that are becoming more complex and customer expectations that are higher than ever, AI emerges as the savior with its promise to streamline processes, enhance accuracy, and ultimately, improve customer satisfaction. But with a plethora of AI tools available, how do you choose the right one for managing claims?
Priyanka Jha, Content Strategist, Simplifai
InsurTech/M&A/Finance/Collaboration
Cowbell Introduces Prime Tech with Cowbell Co-Pilot, a Generative AI Solution to Optimize Underwriting Workflows
Cowbell, a leading provider of cyber insurance for small and medium-sized enterprises (SMEs), today introduces Prime Tech with Cowbell Co-Pilot,
Cowbell's artificial intelligence (AI) solution for efficient underwriting. Prime Tech is Cowbell's adaptive cyber insurance offering that combines flagship Prime 250 cyber risk insurance with Technology Errors and Omissions (E&O) primary coverage. Prime Tech with Co-Pilot will help underwriters better assess risk and provide valuable insights to improve decision-making at speed, driving a 40% faster contract review time on average.
To bring Prime Tech to the market, Cowbell is building on its four-year partnership with Obsidian Insurance Company, an A.M. Best rated "A-" excellent, hybrid program carrier, deepening its partnership to include Tech E&O primary coverage following Cowbell's launch of Tech E&O excess in 2023. Prime Tech is available now to businesses with up to $250M in revenue in the US and provides limits of up to $5M.
"Deepening our partnership with Cowbell will provide greater cyber insurance solutions for insureds and offer a comprehensive insurance strategy for technology companies. We are proud to support them in that pursuit," said William Jewett, Chief Executive Officer of Obsidian. "We believe strongly in Cowbell's mission – and have since we entered our partnership four years ago. Their commitment to offering solutions for their clients creates a durable partnership and we are excited for the opportunities that will come with the growth of our relationship."
"Providing one policy that combines cyber with Tech E&O helps maximize contact points for the broker and the insured, solve for coverage overlap, and streamline claims processes," said Trent Cooksley, Chief Operating Officer and Co-Founder of Cowbell. "Tech E&O primary, particularly paired with cyber insurance, is important to protect companies against rising threats and has been a highly requested product by our clients. We are thrilled to deepen our long-time relationship with Obsidian to deliver Prime Tech."
People
Stuart Myers and Christopher Conti Join RYZE Claim Solutions’ Board of Directors – Ryze Claim Solutions
RYZE Claim Solutions (“RYZE” or “the Company”), a leading full-service claims management business, today announced the appointment of Stuart Myers and Christopher Conti, two highly regarded experts in the insurance and investment industries, to the Board of Directors.
Myers and Conti bring decades of leadership experience, driving innovation, increasing efficiency, and improving client satisfaction for a number of established insurance companies throughout their tenured careers.
“With significant expertise in insurance, investments, and the wider financial services industry, Stu and Chris bring valuable experience to our board,” said Tony Grippa, RYZE Executive Chairman of the Board. “Their guidance will be critical as we continue our trajectory and evaluate M&A opportunities to complement our rapid organic growth.”
Myers is the former President and Chief Operating Officer for York Insurance Services, which was acquired by American International Group (NYSE: AIG). At AIG, he served as Senior Vice President of claims services.
Conti is a former Fortune 300 senior operations executive. He was most recently a member of the senior leadership team of American Family Group where he held the position of Enterprise Chief Claims Officer, President of AFICS (American Family Insurance Claims Services) until retiring in January 2023. In that role, Conti led the consolidation of five claims operations and created AFICS to support operating companies within the American Family Group. He joined AmFam Group through its acquisition of Homesite, where he served as EVP, Operations and Human Resources. Prior to joining Homesite,
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