Commentary/Opinion
Let's Stop With the Gibberish | Insurance Thought Leadership
While innovation in insurance is proceeding apace, our attempts to puff up what we're doing can be confusing, even borderline comical. I vote for simple and straightforward.
I'll warn you: I'm grumpy.
I'm seeing an awful lot of sloppy language that obscures the highly worthwhile innovation happening in insurance, and I need to vent. So I shall.
Let's start with the biggies — I'm looking at you, "transformation" and "disruption." Those words get tossed around so casually in insurance that they've lost all credibility.
The internet transformed commerce and just about everything else. The iPhone disrupted communication. A system that is designed to make underwriters 10% more efficient and that might actually deliver 2%? Not so transformational or disruptive....
And our weakness for lofty language can make us soft-headed, so we describe improvements in the most abstract, high-minded way imaginable... and lose all meaning. Just in the past week, I've seen a company describe itself as a provider of "intelligent water solutions." What's a water solution, intelligent or otherwise? Another company called itself a "service provider." As opposed to a product provider?
The industry's innovation is important, and we're pressing forward on so many fronts that we're continually improving. We can do so much better by our clients, our investors, and ourselves if we can just sharpen our language about what we're doing — and not doing.
I have thoughts.
Paul Carroll, editor-in-chief, Insurance Thought Leadership
What Does Gen Z Want? | Insurance Thought Leadership
Leaders need to come to grips with this generation. Already 22% of the workforce, they will represent one out of every three employees by 2030.
You might think that Gen Z are a bunch of whining weenies: Their unrealistic expectation around work-life balance, fantasies about speedy career progression, and complaints about stress, workload, and lack of diversity in the workplace all put this generation in the firing line of derision from their elders.
Who do they think they are? The bootstrapping Boomers and cunning Xers never grappled with such entitlement. Right?
But one way or another, leaders need to come to grips with this precariously perceived generation. Already 22% of the workforce, they will represent one out of every three employees by 2030. They are here to stay, and even though they “grow up,” their core values will stick with them. Just have a look at what has happened before: Boomers (ages 60+) never lost their penchant for hard work, Generation X (ages 44-59) has kept their focus on pragmatism and efficiency, and Millennials (ages 28-43) continue to value purpose-based work.
Peter van Aartrijk is co-author of "The Powers: 10 Steps to Building a More Powerful Brand." He has worked in research, strategy and marketing issues for insurance organizations since 1982 and is founder and CEO of insurance branding firm Aartrijk.
Warren Wright is founder and CEO of corporate culture and training consultancy Second Wave Learning.
They are co-writing a book on the five generations in today’s workforce and the value of the middle-manager role, due to be published in 2025.
News
GEICO's latest agency appointment
According to the California and Texas Departments of Insurance, GEICO has appointed Polly as an agency as of earlier this month.
Founded in 2015 and originally known as DealerPolicy, Polly is an insurance agency specializing in selling auto insurance through car dealerships. Over the years, it has expanded into other lines of business.
Polly works with a variety of insurers, including Acuity, Allstate, American Family, Clearcover, Dairyland, Employers, Encompass, Farmers, Foremost, GAINSCO, Home State, Infinity (Kemper), Liberty Mutual, Mercury, MetLife, Nationwide, Progressive, PURE, Safeco, State Auto, Stillwater, and Travelers.
The company has raised $184 million to date, with the last funding round occurring in August 2021.
GEICO, once recognized for its agency-independent approach, has recently changed direction and is now actively pursuing partnerships with independent agents.
Coverager
Research
J.D. Power: Owners find some vehicle technology not necessary and hard to function
Vehicle owners are not fans of every technology feature that comes with their vehicle, a new J.D. Power 2024 U.S. Tech Experience Index Study finds.
Recognition technologies such as facial recognition, fingerprint readers, and interior gesture controls fall out of favor, a news release on the study says.
For example, owners said gesture controls can be problematic (43.4 problems per 100 vehicles). Twenty-one percent of the owners also said the technology lacks functionality.
“These performance metrics, including a lack of perceived usefulness, result in this technology being considered a lost value for any automaker that has invested millions of dollars to bring it to market,” the release says.
[MORE}(https://www.repairerdrivennews.com/2024/08/27/j-d-power-owners-find-some-vehicle-technology-not-necessary-and-hard-to-function/)
Claims
How technology in claims processing is changing consumer choices in insurance
In the realm of insurance, consumer preferences are shifting significantly, with a major focus on technological advancements over cost.
According to a recent survey by Insurity, a pioneer in cloud-based insurance software and analytics, a noteworthy 52% of consumers expressed a preference for insurers who invest in new technologies to enhance the claims experience following severe weather incidents. This marks a departure from the traditional cost-centric approach to choosing insurance policies.
The 2024 Severe Weather Consumer Pulse Survey conducted by Insurity offers deep insights into how severe weather events shape consumer decisions regarding their insurance coverage. The findings suggest that while a considerable portion of Americans, about 48%, believe their current insurance plans adequately shield them from the financial repercussions of severe weather, a significant 36% are open to switching providers for more comprehensive coverage, even if it costs more.
Chris Lafond, CEO of Insurity, emphasized the importance of this trend, stating, “Consumers are increasingly valuing the technological capabilities of their insurance providers, especially in the context of severe weather events.
InsurTech/M&A/Finance💰/Collaboration
Evolving Insurance Sales Root and Goosehead Team Up to Empower Independent Agents
In a strategic move set to redefine the insurance landscape, Root, Inc. (NASDAQ: ROOT), a trailblazer in technology-driven insurance solutions, has forged a powerful alliance with Goosehead Insurance, Inc. (NASDAQ: GSHD), a rapidly expanding independent personal lines insurance agency.
The collaboration promises to streamline insurance sales for independent agents, utilizing state-of-the-art technology to enhance the client experience and significantly impact both companies' market standing.
[MORE}(https://csimarket.com/news/evolving-insurance-sales-root-and-goosehead-team-up-to-empower-independent-agents2024-08-27124554)
Flowcode Partners with REIN to Bring AI to the Insurance Industry
Flowcode, a marketing technology platform, has partnered with embedded insurance technology company REIN to streamline insurance purchases by making it easier to secure a quote and find coverage wherever and whenever customers are in need. The innovative partnership brings the new Flowcode 2 QR platform capabilities to REIN’s IX embedded insurance platform to drive seamless customer acquisition in online and offline experiences.
"Eighty percent of the economy is transacted offline. Brands need and want to make it easy for consumers to turn any physical experience into an easy and convenient online transaction,” said Tim Armstrong, CEO, Flowcode. “This partnership takes all the friction out of the complicated insurance industry so that consumers can secure insurance coverage almost immediately no matter where they are or what they need. The partnership is great for consumers and brands, as well as insurers who haven’t had the tools or data to connect the offline and online.”
REIN works with insurance companies to distribute insurance products through a network of partners. Flowcode 2’s technology gives brands and insurance carriers a seamless way to create experiences for their target customers and access REIN’s tools through its patented QR code and lead gen solutions. The partnership gives insurance providers access to new embedded distribution channels for their products and real-time information on the behaviors of potential customers. Adjacent brands can offer insurance products and services that provide more value to their customers while opening new revenue streams safely and efficiently in the highly-regulated insurance industry.
Climate/Resilience/Sustainability
2024 U.S. Weather Disasters Stack Up
The U.S. has sustained 395 weather and climate disasters since 1980 where overall damages/costs reached or exceeded $1 billion (including CPI adjustment to 2024). According to the National Centers for Environmental Information, the total cost of these events exceeds $2.770 trillion.
Year to date (as of August 8), there have been 19 confirmed weather/climate disaster events in the U.S., with losses exceeding $1 billion each.
The events included 15 severe storm events, a tropical cyclone event, a wildfire event and two winter storm events.
OEMs & Auto Insurance
GM Insurance launches in Georgia
General Motors Insurance is now offering car insurance in Georgia. Earlier this month, coverage became available in Missouri and Pennsylvania.
The company is now active in eight states – Arizona, Georgia, Illinois, Indiana, Missouri, Ohio, Pennsylvania and Texas.
It’s been just over a year since GM began offering car insurance coverage through its licensed carrier subsidiary. The company first launched in Arizona and by the end of 2023, it was available in three states. So far this year, the company has launched in five new states.
For the first six months of the year, GM National Insurance Company generated $6.8 million in written premiums across five states. The carrier reported a $26.8 million net underwriting loss following $7.9 million in losses and loss adjustment expenses and $22.3 million in other underwriting expenses.
Recommended Events
SO MANY CONFERENCES, SO LITTLE TIME AND BUDGET
The oversaturated insurance conference landscape; which to attend and how to maximize your experience
Our inbox has become inundated with solicitations to participate in a wide variety of North American insurance industry conference as attendees, presenters, moderators, and/or sponsors. We suspect yours has too.
In addition to the increased number of conference and media production companies entering the fray – inexplicably mostly U.K. based – conference themes are increasingly more specialized (InsurTech, ClimateTech, Innovation, Data and Analytics, Sustainability, GenAI, Cyber etc.), all which account for this growth in events.
Stephen Applebaum and Alan Demers
Innovation
Risk Ready Ventures Launches Mobile App to Empower Users in Insurance Preparedness and Claims Management
On the 19th anniversary of Hurricane Katrina, Risk Ready Ventures is proud to announce the release of its groundbreaking mobile app, designed to help users Get, Be, and Stay ready for their next insurance claim. This innovative mobile app provides a comprehensive suite of tools aimed at simplifying the insurance process from preparation to recovery.
In collaboration with local non-profit Operation Spark, Risk Ready Ventures has integrated advanced features to ensure users have everything they need to protect their assets and navigate the insurance claims process effectively.
"By releasing on the anniversary of Hurricane Katrina, we're reminded of the importance of safeguarding the future."
Key Features:
Virtual Inspections: Users can conduct virtual inspections of their properties, ensuring up-to-date documentation and making it easier to provide accurate information in the event of a claim.
Image Inventory: The app allows users to create detailed image inventories of all insured contents, streamlining the claims process by providing organized evidence of assets.
Claims Manager Portal: This portal guides users through the often-complex insurance claims process, from filing the initial claim to resolving disputes, ensuring that all necessary steps are completed.
Project Manager Portal: Users can find reputable contractors, track the progress of repairs or rebuilding efforts, and stay in control during the restoration process.
Community Circles: In times of disaster, connecting with neighbors and local businesses is crucial. The Community Circles feature fosters communication and support, helping users rebuild together.
Evacuation Tracker: In development by Operation Spark, this new feature allows users to easily track all expenses associated with mandatory evacuations, simplifying the reimbursement process.
Risk Analyzer: Also in development by Operation Spark, this feature evaluates users' insurance coverage limits and assets, providing a Risk Readiness Score. This score helps users identify areas where they can reduce personal risk and enhance their protection.
Sapiens Releases Latest Version of CoreSuite for Property & Casualty for Enhanced Performance, Security and Efficiency
Sapiens International Corporation, (NASDAQ: SPNS) (TASE: SPNS), a leading global provider of software solutions for the insurance industry, today announced the launch of its latest version of Sapiens CoreSuite for Property & Casualty for the North American insurance market.
The new release delivers insurers a multitude of functional and performance improvements, as well as enhanced security features. V12.0 is an integral part of Sapiens Insurance Platform, a future-proof, AI-based, open and integrated platform. The release fully supports the platform's digital persona layer and expands the robust core business capabilities. The release is available to all North American CoreSuite P&C customers.
"This latest release accelerates the pace of innovation and value delivery to our customers," said Roni Al-Dor, Sapiens President and CEO. "We've improved the consistency of our data, to help insurers leap the hurdles of data migration and ensure their data is consistent and AI-ready. The value-added enhancements of the new version reflect our long-term strategy to leverage corporate investments in support of our customers."