Research
Digital services nearly match reputation in carrier selection
Following price, the largest considerations customers have when purchasing insurance are coverage options (73%), brand/reputation (36%) and mobile app experience (35%).
Digital services are almost as important to consumers as a carrier's reputation when it comes to selecting insurance coverage, a new survey from insured.io has revealed. Their 2024 User Experience Survey showed that while younger generations prioritize digital offerings higher than their elders, customers across all age groups have certain expectations when it comes to their insurer's apps and website.
The survey found that price of a policy is still the most important attribute to customers when choosing an insurance company, with 86% of respondents listing it among their priorities. Following price, the largest considerations are coverage options (73%), brand/reputation (36%) and mobile app experience (35%).
"It's important to meet consumers where their expectations are, and modern expectations have significantly changed," Steve Johnson, CEO of insured.io said in an exclusive interview with PropertyCasualty360. "Insurance has, you know, notoriously been a little bit behind the eight ball when it comes to implementing technology.
Auto insurance has been a little bit faster, but some other lines of business have been crazy slow, and it's important to give consumers all of the things that they need in one place. It doesn't have to be super flashy. It doesn't have to be the most impressive thing ever, but it does have to have everything they need, and all of their channels have to interact and be synchronized and make sense together."
Legislation aims to protect pedestrians from big vehicles
In a cavernous white room full of bright lights, video cameras and microphones, a driverless cart hurtles at 37 miles per hour into the side of a large SUV.
Researchers at the Insurance Institute for Highway Safety have crash-tested thousands of cars and trucks like this one over the past three decades at their facility in central Virginia.
Taller cars and trucks are more dangerous for pedestrians, according to crash data
Slow down! As deaths and injuries mount, new calls for technology to reduce speeding But a few years ago, they noticed that those vehicles were getting bigger and heavier. So they decided to make the cart that crashes into them larger, too.
“It was meant to represent a small pickup or a midsize SUV, and those vehicles have gotten heavier and heavier over time,” says Becky Mueller, a senior research engineer at IIHS. “So it's 500 kilograms more weight because that's what the vehicle fleet now reflects.”
Americans’ cars and trucks are getting bigger and taller, while roadway fatalities have also climbed sharply over the past decade.
Now lawmakers in Congress are expected to introduce a bill on Friday that would require federal standards for hood height and visibility to protect pedestrians and other vulnerable road users.
Commentary/Opinion
AIG no longer in "rehabilitation phase": CEO Zaffino
American International Group (AIG) is no longer in the “rehabilitation phase” and is focusing on growth, capitalizing on market opportunities while maintaining underwriting discipline, according to chairman and chief executive Peter Zaffino.
Zaffino delivered the remarks at a fireside chat during the 2024 KBW Insurance Conference on Wednesday (September 4).
In its earnings report for the quarter ended June 30, 2024, the global insurer revealed a loss of $4.7 billion primarily due to its completed deconsolidation of CoreBridge Financial, a process that began in 2020.
Following that phase, Zaffino is optimistic about prospects for AIG, including its generative artificial intelligence (gen AI) strategy and market opportunities in its excess and surplus (E&S) lines.
As it pursues new growth avenues, AIG continues to prioritize disciplined underwriting with a comprehensive reinsurance program for all lines of business, he added
“A challenge we have today is we need more capital to support our current core general insurance business. However, that will naturally unwind with our ongoing capital management strategy and the realization of our anticipated growth potential,” Zaffino said.
“We continue to prioritize prudent risk selection, limit management, (and) appropriate terms and conditions.”
Insurance Technology, How InsurTech Is Assured
Tech is rich in blends. The use of portmanteaus and lexical blend word splintering is as prolific in technology as it is in show business (e.g. Brangelina and other fusions) with terms like DevOps being among the most well-known (developers + operations teams as a unified single entity) pieces of terminology.
Aside from all the Ops extensions (FinOps, AIOps, SecOps etc.) there are the industry-specific connections where we add “Tech” onto what is often a shortened version of a business discipline - hence MarTech (marketing technology), FinTech (financials), GovTech (government, obviously) and perhaps even the potentially non-specific AutoTech (for automotive manufacturing), although the latter could arguably apply to any use of automation.
Then there is InsurTech for the insurance industry.
Executive Relocation in the Post-Pandemic Era | The Jacobson Group
Remote and hybrid work have become standard in the past few years, and many executives have valued these work arrangements. They have found it can significantly improve work/life balance while still allowing them to be very effective in the workplace. Some insurers are beginning to bring employees back into the office, and this can be particularly challenging when recruiting executives from the external market.
If you’re considering requiring executives to come into the office even once a week, here are some areas to explore to ensure you’re best prepared when recruiting external executive talent.
Will AI have a minor or transformative impact on insurance? – Florian Graillot
Could insurance avoid the AI frenzy?
That’s the central theme in this week’s wrap-up.
The first article is a report by Bain & Company exploring how Generative AI could transform insurance distribution. It outlines various use cases, ranking them by expected impact and anticipated implementation timelines.
The second piece summarizes insights from McKinsey’s partners, who offer a balanced perspective on how Generative AI could benefit the insurance industry. They emphasize the importance of integrating multiple tech trends and addressing cultural shifts in any new projects.
Florian Graillot, Investing in InsurTech with astoryaVC., InsurTech weekly
InsurTech/M&A/Finance💰/Collaboration
Hippo’s First Connect Partners With Root Insurance on Quote and Bind Process
First Connect Insurance Services and Root Insurance said they are partnering to off API-powered quote and bind capabilities to independent agents.
First Connect, a subsidiary of insurtech Hippo, is a digital platform designed to provide independent agents access to some of the nation’s top carriers and managing general agents in home, auto, cyber, small business, life, and specialty lines. The partnership with insurtech Root will streamline access to Root’s standard and preferred auto insurance in California, the companies said, with plans to expand to 25 more states by the end of October.
Global insurance sector M&As fall sharply in H1: Report
Mergers and acquisitions in the global insurance sector continued to decline in the first half, with 103 deals, compared with 171 in the year-earlier period, according to a report from the law firm Clyde & Co.
Surging inflation and interest rates are contributing to the declining number of deals globally as have seller’s high pricing expectations and the increased premium required for integrating technology systems, the firm said.
Six billion-dollar transactions took place in this year’s first half — three in the U.S., two in Asia and one in Europe.
Moody's adds casualty & liability modeling capabilities with Praedicat acquisition - Reinsurance News
Casualty insurance analytics provider, Praedicat, has been acquired by global rating agency Moody’s Corporation, building on its acquisition of RMS in 2021 and advancing its investments in new analytics and growth in the casualty marketplace.
Terms of the transactions have not been disclosed, but Moody’s says that it will not have a material impact on its 2024 financial results.
With this acquisition, Moody’s is adding comprehensive casualty and liability modeling to its range of market leading solutions for the re/insurance industry, enhancing its overall risk assessment strategy.
California-based emerging risk analytics and modeling company, Praedicat’s models and predictive analytics help insurers and reinsurers navigate risks associated with catastrophic events, including product and environmental liabilities.
Exploring the Decrease in Insurance M&A Deals -
The insurance carrier M&A landscape saw the lowest number of deals (103) completed in 15 years in the first half of 2024, according to Clyde & Co’s mid-year Growth report update.
A graph of a number of salesDescription automatically generated with medium confidence
The findings follow a notable decline in deal volumes throughout 2023 in response to a surge in inflation and interest rate cuts. Since then, a combination of factors has further reduced deal activity globally to a crawl. In the first half of this year, cash-rich carriers, which would traditionally have been active in the market, have been retaining capital while interest rates are high.
The slow pace has been exacerbated by sellers’ high pricing expectations and an increasing premium required for the integration of tech systems, as innovation widens the gap with outdated platforms. Deal dynamics are also changing with a greater emphasis placed on securing talent.
However, insight from Clyde & Co’s report suggests that after the slowest half year since this report began in 2021, the pieces of the puzzle needed to bring the market back to life may be falling into place.
Eva-Maria Barbosa, Partner, Clyde & Co said “Insurance M&A, for the remainder of 2024 and into 2025, will likely be driven by larger scale transactions. While the total number may not increase dramatically, we are increasingly likely to see deals that span a number of jurisdictions with some of the major carriers now looking to take on books or businesses which span 8-10 countries in one swoop.”
Peter Hodgins, Partner, Clyde & Co added: “The US election will bring us near the end of a period of exceptional political change. Interest rates are broadly tracking downwards. While acquirers are likely to become more bullish, sellers may be running out of road. Businesses that have relied on financing will look to divest non-core businesses or underperforming operations.”
Events
ITC Vegas 2024 - The world’s largest gathering of insurance innovation
Insurtech Consulting and our ‘Connected’ newsletter are proud media partners of ITC Vegas 2024
Event Date: Tuesday, October 15 – Thursday, October 17, 2024
Event Location: Mandalay Bay Convention Center
3950 Las Vegas Blvd S
Las Vegas, NV 89119
ITC Vegas combines unbeatable networking with what’s new and next, ensuring your time will be spent meeting more people, sourcing more solutions, and creating valuable partnerships.
Discover solutions to your biggest challenges, gain access to unique and meaningful education, and meet the insurance industry’s best and brightest. Join the insurance event that doesn’t just bring the industry together – it moves the entire industry forward.
The future of insurance is here – at ITC Vegas. If you aren’t here, you are missing out on the conversations that are propelling the industry forward
Register now and save, $200 off. Use promo code 200ITC1813
Code not valid on Independent Agent, Startup, Groups, or LATAM tickets. Discounts only apply to new registrations.
📢 GIF Global Insurance Forum 2024 | Nov. 17-19 | Hyatt Regency Miami.
Don't miss your chance to hear from the biggest names in insurance and celebrate the successes of visionary leaders and rising stars.
What's on the agenda?
Special ceremonies honoring the 2024 Vanguard Award Recipient, 2024 Insurance Hall of Fame Laureate, and Global Innovation Award Winners
RGA Leaders of Tomorrow panel session featuring insights from the 2024 winners
Executive discussions on innovation benchmarking, enhancing customer value, cultivating talent, visualizing the future of insurance, and more
**A joint reception with members of the Insurance Information Institute((
Announcements
Ascend Unveils Direct Bill Automation Solution for Insurance Brokers
Ascend, the leading provider of accounting automation software to the insurance industry, is proud to announce the launch of Direct Bill Automation, a solution designed to streamline accounting workflows of processing, extracting, reconciling, and posting direct bill commissions.
With this launch, Ascend provides the only comprehensive solution on the market for brokers that simplifies accounting tasks related to both agency bill and direct bill into one unified platform.
"Direct Bill Automation empowers our accounting team with the technology to significantly optimize and reduce the amount of time spent on low-value transactional work so we can focus our team on high-value strategic objectives," said Ryan Corcoran, CFO of Ellerbrock-Norris.
Key Benefits of Direct Bill Automation:
Reduce Expenses: Technology enabled solution provides immediate cost reductions and time savings with a quick and seamless onboarding and integration.
Scale Efficiently: Meet business needs and future growth objectives with software designed to scale with your business.
Improve Financial Reporting: Comprehensive control and oversight of direct bill entry, reconciliation, and recordkeeping back into agency management systems, ensuring quick and accurate revenue recognition cycles.
"Our mission at Ascend is to provide our customers with solutions to reduce the amount of operational tasks that exist inside of their businesses," said Andrew Wynn, co-CEO of Ascend.
"Direct Bill Automation is another step forward for us to help take one more task off their plates so organizations can focus on their core competencies."
Awards
Cambridge Mobile Telematics Earns Frost & Sullivan's 2024 Market Leadership Award for Leading Innovations in the Telematics Insurance and Connected Claims Industry
Frost & Sullivan today announced that it has recognized Cambridge Mobile Telematics with its 2024 Market Leadership Award for leading innovations in the telematics insurance and connected claims industry.
The announcement comes after months of expert research by Frost & Sullivan analysts across the telematics landscape, analyzing both the established telematics service providers and the up-and-coming players in the industry. Founded out of MIT, CMT is an award-winning telematics service provider with over a decade of experience in transforming the telematics insurance sector with cutting-edge solutions that significantly optimize claims processing, enhance road safety, reduce costs, and maximize customer satisfaction.
Cambridge Mobile Telematics
CMT leverages mobile telematics technology and artificial intelligence (AI) to revolutionize traditional insurance models and protect tens of millions of drivers in 25 countries. The company's AI-driven platform, DriveWell Fusion®, securely integrates with insurer applications, providing a powerful suite of services that includes real-time crash detection, automated claims processing, and proactive customer engagement. The platform further amplifies its effectiveness by synthesizing data from various sources, including smartphones, Internet of Things (IoT) devices, connected vehicles, and dashcams, ensuring broad coverage and constant improvement of its analytics' precision.