News
GM, OnStar, and LexisNexis deny sharing personal data, telematics without customer permission
General Motors, OnStar, and LexisNexis Risk Solutions have denied allegations made in a lawsuit filed by a Florida man that his personal vehicle data was collected and negatively affected an insurance quote he received.
The suit, which has been filed seeking class action certification, alleges the companies invaded Romeo Chicco’s privacy by compiling “erroneous reports of derogatory and negative driving information made without Plaintiff’s knowing consent.”
The lawsuit came on the heels of a New York Times investigation into similar allegations on which an article was published in March. Since then, the Times has reported that GM has said it will no longer sell driving data to third-party companies.
The lawsuit alleges LexisNexis knowingly and/or willfully violated the Fair Credit Reporting Act by failing to maintain accurate data on Chicco. All defendants are accused of violating the Florida Deceptive and Unfair Trade Practices Act and privacy law.
The defendants filed their response to Chicco’s complaint Monday.
“Defendants deny any and all liability under Plaintiff’s causes of action as alleged in the complaint,” the document states. “Further, defendants maintain that plaintiff is required to submit his claims to binding arbitration pursuant to an enforceable contract containing a valid arbitration provision that plaintiff accepted.
“As such, defendants expressly reserve their arbitration defenses and right to move to compel arbitration. Defendants expressly deny each and every allegation in the complaint that is not admitted, denied, or otherwise addressed.”
The answer to the complaint contends the court lacks subject matter jurisdiction over the claims made in the complaint based on the binding arbitration agreement.
The defendants added that a welcome email sent to Chicco by OnStar on Nov. 18, 2021 contained its terms and conditions and privacy statement, and mentioned data sharing with third parties, including usage-based insurers.
OnStar’s privacy statement concerning third-party business relationships is “neatly hidden on their website, and made inconspicuous through the downloading of mobile applications, at worst, does not grant OnStar or GM the right to furnish car driving data to Lexis and is ambiguous at best,” the complaint states. “This scheme is deceptive, unfair, and misleading to consumers.”
“Defendants admit that OnStar collects driving behavior data with customer consent,” the answer to the complaint states. “Defendants deny that plaintiff’s driving data was collected without his consent… Defendants deny that they distributed plaintiff’s telematics information without his consent.”
According to the document, GM’s records show that Chicco enrolled in OnStar services on Nov. 16, 2021, and certain services were active as of Jan. 11, 2024.
Car Companies Can Generate $1,600 Per Car In Future From Connected Car Services
Software Defined Vehicles will become and element of a Connected Living solution in future generating over 300+ monetization features for consumer
The evolution of mobile connectivity has accelerated at an unprecedented pace. From the foundational 2G that introduced cellular networks to the transformative 4G that revolutionized video streaming, each generation of mobile technology has brought profound changes. Now, with 5G, we are entering an era of "isolated connected solutions" such as 5G-enabled factories, campuses, and stadiums. But the future promises more—an interconnected world where everything from personal devices to city infrastructure is linked, creating what I envision as a seamless "connected living" where we will be connected at the personal, community, and city levels. Imagine a future where everything – and I mean everything – is connected, from personal devices to city infrastructure. In this interconnected world, even our cars will transform into vital nodes in a vast network.
State Farm® launches innovative program to assist drivers involved in collisions
With new Drive Safe & Save™ feature, Accident Assistance has never been easier
Accident Assistance
State Farm, a trusted leader in the insurance industry, has always been committed to enhancing driver safety. With the introduction of the new Accident Assistance feature to Drive Safe & Save they've taken that commitment to the next level.
The new Accident Assistance feature helps the driver when immediate next steps may seem unclear during the stressful moments following a collision. It will guide the driver through the next steps, including making sure everyone is safe, calling the authorities, arranging for a tow-truck if needed and helping get a claim started. In the event there is no response, and they are left unable to respond to outreach, a wellness check will be requested at the scene of the detected accident.
The early reviews are very positive. Customer surveys and interviews indicate how they felt supported, cared for and provided comfort and ease in a time of distress.
FTC pushes forward with sweeping non-compete ban
Existing non-compete agreements also face the chop after landmark FTC vote
The Federal Trade Commission (FTC) has voted 3-2 to ban non-compete agreements, in a move expected to have ramifications for tens of millions of Americans.
Under the non-compete ban, employers will be restricted from using future non-competes. Existing agreements, except for those that apply to senior executives, will be voided.
The rule is expected to go into effect 120 days after it is published in the Federal Register.
Democratic FTC commissioners voted for the ban, while Republicans were against.
Republican Commissioner Melissa Holyoak argued that the final rule “exceeds congressional authorization and will likely not survive legal challenge.”
Rate increases slower for catastrophe exposed US property in Q1: Marsh
In what is perhaps a reflection of an insurance and reinsurance marketplace with more catastrophe risk capital available, broker Marsh has for the first time in a while cited a slowing level of rate increases for catastrophe exposed commercial property accounts in the United States, with even some rate decreases reported.
us-property-insurance-challengesFor around five years now, there hasn’t been any real talk of catastrophe exposed property insurance rates in the US decreasing.
The seemingly inexorable rise in property insurance rates for both commercial and residential properties in regions of higher catastrophe risks, as well as those with tropical storm exposure on the coast, has been a feature of the market for some years now and while it does continue, there are signs of moderation, perhaps even stabilisation.
Marsh reports that, overall, it sees US commercial property insurance rates as still increasing, but stabilising, with an average rate increase of 8% in the first-quarter of 2024, down from an 11% average increase in the final quarter of 2023.
However, the commentary is perhaps the most positive, from a protection buyers point of view, in quite a long time.
“Many companies were able to secure additional limits in higher layers and improve coverage as competition increased and rate increases have leveled off,” Marsh explained.
With one driver being that, “Strong insurer financial results and additional reinsurance market supply led to increased insurer appetite.”
Importantly, the broker added that, “Companies with concentrations of assets in catastrophe (CAT) zones — such as the Gulf of Mexico, Atlantic coast, and California — that had experienced higher rate increases in recent years have begun to see lower increases or even decreases.”
Commentary/Opinion
Urgent need for predictive data to mitigate growing risks of hailstorms in Colorado: Arturo
A new report by Arturo, a property intelligence company offering AI-based solutions to insurers, has emphasised the urgent need for predictive data and science-based measures to mitigate the growing risks of hailstorms on homes in Colorado, one of the most hail-prone states in the US.
Arturo has published its report as hail season starts in the state and it highlights the challenges of predicting hailstorms. For hail in particular, it has always been challenging to predict exactly when and where it will occur, or even what size the hail will be.
This challenge is becoming more complex with climate change impacting the frequency and severity of these events in the state responsible for the second highest volume of hail-related claims, analysts noted.
As it sheds light on the increasing impact of hailstorms on homes in the region, the report also offers guidance to homeowners, insurers, and contractors on how to mitigate these risks amidst a changing climate.
“As we head into hail season, Arturo’s latest report focusing on Colorado’s residential vulnerability serves as an example of the growing threat of storms everywhere, and emphasises the urgent need for predictive data- and science-based measures to mitigate risks. As climate change continues to impact the frequency and severity of these events, stakeholders must collaborate to protect properties and communities,” said Marty Smuin, CEO of Arturo.
AI in Insurance
Insurance executives keen on AI but underwriters wary
Insurance executives are aware of the benefits of introducing artificial intelligence and machine learning technology into workflows but only 43% of underwriters trust and regularly accept automated recommendations, according to the Capgemini Research Institute's World Property and Casualty Insurance Report 2024.
Sixty-two percent of executives see AI and ML elevating underwriting quality and reducing fraud. Underwriters mention overcomplexity and concerns about data integrity as reasons for their hesitation. The report suggests engaging underwriters in discussions early so there is buy-in and the models are explainable and transparent.
Adam Denninger, global insurance industry leader at Capgemini, said in a statement:
"Today's insurer is operating in one of the most precarious environments in recent memory. The industry must react to this volatility by rethinking the underwriting rule book. It requires shifting away from legacy models by modernizing core systems and deploying advanced technologies that drive better outcomes and transparency. Embracing AI-driven insights and automation is crucial for the industry to drive a competitive path towards underwriting profitability that adapts to evolving risk dynamics and policyholder behaviors."
The report includes information from the 2024 Global Insurance Voice of the Customer Survey, the 2024 Global Insurance Executives' Survey and the 2024 Global Insurance Underwriters' Survey.
While executives may want more predictive models in workflows, the data ecosystem may not be there.
InsurTech/M&A/Finance💰/Collaboration
Bold Penguin Teams Up With Salesforce Financial Services Cloud To Automate Commercial Insurance Lifecycle
Bold Penguin today announced a collaboration withSalesforce, launching Bold Penguin Terminal and SubmissionLink™ on Salesforce AppExchange, a leading enterprise marketplace for partner apps and experts. The new product will empower customers to streamline their commercial insurance quote and bind process. Founded in 2016, Bold Penguin's integrated digital solution platform simplifies commercial insurance for carriers, agents, and insureds.
FSC customers can now access two Bold Penguin products: the Bold Penguin Terminal and SubmissionLink™. The Bold Penguin Terminal allows agents to simultaneously quote multiple products with multiple carriers using one universal application to find the best coverage in minutes. Bold Penguin partners with leading national, regional, and specialty carriers, supporting both admitted and non-admitted markets, allowing agents to quote the right coverage for the right customer at the right time.
SubmissionLink™ leverages proprietary, in-house artificial intelligence to automatically extract and enrich data from submission documents and coverage forms, reducing ingestion time from weeks to minutes while improving accuracy. Through the SubmissionLink™ integration, carriers can ingest unstructured emails and other documents to automatically create Cases, Accounts, and Contacts in Salesforce FSC and generate rates in real time with over 97% accuracy.
With Bold Penguin available on Salesforce AppExchange, users can now more seamlessly move account data from FSC into the Bold Penguin Terminal and activate commercial insurance quoting while data syncs back into FSC in real time. This end-to-end flow of information eliminates the need to re-enter data, saving time, reducing errors, and streamlining customer servicing capabilities.
ICEYE and Juniper Re, LLC announce multi-year flood and wildfire data collaboration
ICEYE, a global leader in satellite-powered disaster management solutions, has announced a new data collaboration with Juniper Re, LLC ("Juniper Re"), the dynamic reinsurance broking arm and indirect subsidiary of BRP Group, Inc. (NASDAQ: BRP).
Juniper Re will leverage ICEYE's Flood and Wildfire Insights data to support their carrier clients by accessing near real-time observed data on large-scale events to determine the impact within hours and support data-driven decisions.
This collaboration forms part of Juniper Re's investment in innovative solutions to enhance their ability to support clients. Rapid access to ICEYE's hazard and damage data will enable Juniper Re's clients to respond to natural disasters accurately and quickly, improving their decision-making, and ultimately transforming their ability to manage the loss.
ICEYE operates the world's largest constellation of synthetic aperture radar (SAR) satellites, offering unrivaled access to actionable Earth observation data. This provides the insurance sector with an entirely new level of persistent monitoring for any location on Earth, delivering uninterrupted visibility, both day and night, in any weather conditions.
Adam Miron, Head of Catastrophe Analytics, Juniper Re, commented: "ICEYE's ground-breaking technology is a game changer for persistent monitoring and actionable insights. The ability to identify specific risks and ground-truth damage at scale, no matter the condition, in near real-time is revolutionary. Damage can be understood in hours as opposed to days, allowing our clients to quickly understand the impact of an event and promptly undertake loss mitigation steps."
Kurt Jackson, Head of Insurance, Americas at ICEYE, said: "We are delighted to collaborate with Juniper Re and support the development of leading-edge data solutions. This collaboration aligns with ICEYE's mission to get near real-time observed data into the hands of carriers and brokers following extreme weather events, enabling the industry to make better and faster decisions."
InsurTech startup Faura secures $500k pre-seed funding
Faura, a startup dedicated to enhancing resilience in the property insurance sector, has secured $500k in its pre-seed funding round.
The pre-seed round was led by Honors Fund by CEAS Investments, with participation from MetaProp, Dorm Room Fund, Responsibly Ventures, and a group of angel investors, according to InsurTech Insights.
Founded with the vision of transforming the property insurance landscape, Faura aims to address the evolving challenges faced by homeowners and insurance agencies.
The company’s platform facilitates streamlined processes and enhanced risk assessment methodologies, enabling stakeholders to navigate the complexities of the insurance industry more effectively.
Valkyrie Holmes, CEO and co-founder of Faura, commented on the news through a LinkedIn statement, remarking, “I wanted to thank everyone who has been here with us and along for the ride, coming off of an amazing week at InsurtechNY. I wanted to keep this short and thank our amazing investors at Honors Fund by CEAS Investments, Dorm Room Fund, MetaProp (and the accelerator team!), Responsibly Ventures, our lovely angel investors and all of our family and friends along with us!”
The infusion of capital will enable Faura to scale its operations and onboard additional insurance companies and agencies onto its platform.
Amidst its expansion efforts, Faura has begun serving homeowners and agents in Hawaii, California, Oregon, and Texas, with plans to extend its footprint into Florida.
Events
Insurtech Insights USA
USA'S LEADING INSURTECH CONFERENCE Javits Center | New York | 5-6 June 2024
The insurance industry, no stranger to gauging risk, is facing its most profound disruptions in decades. Artificial intelligence, machine learning, Internet of Things, blockchain, data analytics and other emerging technologies are rising to prominence. Are you ready to transform your business?
Special Discount to 'Connected' followers: Use discount code INSURTECHCON25 and receive 25% off your conference pass
Claims
What does a best-in-class claims proposition look like today?
A rapid convert to the "breath of fresh air" that is the insurance claims sector, Julijana Sumner (pictured), chief claims officer for AXA XL in APAC and Europe, has an internationally applicable understanding of what it takes to concoct a best-in-class claims proposition.
“Knowing your client is top of the list because you can’t deliver a best-in-class service if you don’t know your client,” she said. “For example, if your client is an SME or family business, they will expect a different type of service than a large corporate which has an internal team who know insurance inside out and who have a risk manager and legal counsel who will be all over what’s happening on the day a claim arises.
“They’re two very different propositions and I’m a firm believe that you can’t have one way to service those two clients, you have to take two very different approaches. And I think as AXA XL continues to grow, we’ll have to look at that even more carefully.”
‘Handholding’ clients through difficult scenarios
It’s familiar ground for the insurance and risk management giant, Sumner said, looking to AXA XL in Australia which she led for almost three years and its SME arm - Brooklyn. In that case, a completely different claims team was set up within the organisation to focus on servicing those clients recognising that though those clients encompassed lower-quantum, higher-volume claims, they still needed a significant degree of ‘handholding’.
“The people that have a claim in that area have probably never had a claim before,” she said. “Often they have their livelihoods at stake in terms of their business and the financials behind it. So, you really have to talk them through that process and make sure they understand what the next steps are, what the timelines are, and also be ready to help.”
It’s a matter of pride for Sumner that the people in that SME-centric team proved so willing to “get their hands dirty” and go out there as boots on the ground, helping their clients get back on their feet. In addition, she said, a great claims proposition is only possible if you’re engaging the support of fit-for-purpose service vendors and providers.
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