InsurTech/M&A/Financeđ°/Collaboration
arqu Secures $10m in Series A Funding to Accelerate Transformation in Wholesale Insurance
arqu, a tech-enabled wholesale insurance brokerage transforming how large-scale, complex commercial risks are transacted in the $100bn Excess & Surplus (E&S) market, announces its $10 million Series A financing, led by Crosslink Capital with participation from Intact Ventures.
arqu also saw continued support from all existing investors, Lightspeed Venture Partners, Foxe Capital and Nationwide Ventures.
âarqu is not just building a better wholesaler, it is redefining how wholesalers operate and create value by making data and technology central to its approach and maximizing the potential of its brokers.â
David Silverman, General Partner at Crosslink Capital, stated, âarqu is not just building a better wholesaler, it is redefining how wholesalers operate and create value by making data and technology central to its approach and maximizing the potential of its brokers.â
For too long, underwriters have shouldered the burden of risk assessment. arqu believes in arming its brokers with data and insights so they can thoroughly pre-underwrite risks, share the burden of risk discovery and deliver better outcomes for retail brokers and their clients.
InsurTech Association (ITA) Achieves Remarkable Growth, Final Call for Founding Sponsors
The InsurTech Association (ITA), the pioneering United States-based nonprofit trade association fostering innovation in the insurtech industry, has achieved a significant milestone. Just 18 after months its March 2023 launch, ITA has surged past 125 members, with over 80% representing corporate entities across the insurtech ecosystem. This growth signals the closing of ITA's Founding Sponsorship phase, with a final opportunity for new members to join as Founding Sponsors before November 1st, 2024.
Founded by Josh Hollander, CEO of Horton International North America, and Bob Sargent, Founder and CEO of eSpecialty Insurance, ITA is committed to building a resilient and sustainable insurtech industry.
"Our rapid membership growth, particularly among corporate entities, underscores the critical need for a unifying platform in insurtech," said Hollander. "We're fostering an environment where innovation flourishes and companies navigate industry complexities together. The enthusiastic response validates our approach and value."
Sargent added, "As insurtech enters a crucial phase, ITA is positioned to support the industry's long-term sustainability. Our diverse membership creates a unique ecosystem for collaboration and growth."
About the InsurTech Association ITA is a nonprofit trade association that fosters a thriving and inclusive insurtech community. Visit insurtechassociation.org to learn more
Research
Drivers more likely to be distracted while using partial automation tech, study shows
Drivers are more likely to engage in non-driving activities such as checking their phones when using partial automation systems, new research showed on Tuesday.
Insurance Institute for Highway Safety conducted month-long studies in the U.S. with two such systems - Tesla's (TSLA.O) Autopilot and Volvo's (VOLCARb.ST) Pilot Assist - to examine driver behavior when the technology was in use.
WHY IT'S IMPORTANT
Major automakers are in a race to deploy technology that partially automates routine driving tasks to make it easier and safer for drivers, and generate revenue. The rush has sparked concerns around the dangers of driver distraction.
Personal Lines Turnaround Fuels U.S. P/C Industry Underwriting Gain
A turnaround in the personal lines insurance segment results was a key driver of an overall $3.8 billion profit from underwriting for the U.S. property/casualty insurance industry, according to a new report from AM Best.
Bestâs Special Report, titled, âFirst Look: Six-Month 2024 U.S. Property/Casualty Financial Results,â reveals financial highlights for the industryâs first six months, which are similar to those reported by Verisk and The American Property Casualty Insurance Association in late August.
News
Auto insurance, transportation costs continue to hike up inflation as the Fed cuts interest rates
The U.S. Department of Transportation reports that motor vehicle insurance has continued to contribute to inflation at 17.6% in August 2024 â the greatest contribution since July 2016 (recordkeeping of this statistic began in 2012).
Motor vehicle insurance became the No. 1 transportation contributor to inflation in December 2022 and, as of August 2024, remains the top contributor.
From June 2021 â when transportation costs reached an all-time high and contributed the most on record to inflation â to November 2022, gasoline contributed more to inflation than any other transportation good or service, according to USDOT.
San Francisco Chronicle - As Californiaâs home insurance crisis worsens, homeowners shouldnât count on new legislation to help - Consumer Watchdog
This year may go down as the most impactful for insurance regulations in California in more than three decades. But few of those reforms will have come from the Legislature.
Several bills would have addressed issues ranging from the California FAIR Planâs finances to the wildfire risk models that insurers use to determine where they write policies. But few passed before the Legislature adjourned at the end of August, and none of those had been signed by Gov. Gavin Newsom as of mid-September.
âThis year, the focus has really been on regulatory and administrative changesâ rather than legislation, said Deputy Insurance Commissioner Michael Soller. âExecutive action has been the priority for addressing the insurance crisis.â
Last yearâs legislative session was punctuated by a last-ditch effort to institute new insurance reforms before it ended. By that time, major insurers State Farm and Allstate had stopped writing new homeowners policies in California, and the number of residential policies carried by the FAIR Plan â Californiaâs insurer of last resort â had more than doubled, from just under 154,500 in 2019 to more than 320,000.
That effort failed to meet the deadline to submit legislation. But its basic premise â allowing prices to rise for all Californians in order to increase accessibility in fire-prone parts of the state â is reflected in what Insurance Commissioner Ricardo Lara has termed the Sustainable Insurance Strategy.
That strategy is set to be enacted by December. The state Legislature, including newly elected members, will be back in session on Dec. 2
Commentary/Opinion
AM Best: US Property/Casualty Mutuals Resilient Despite Persistent Volatility
AM Best financial analyst Lauren Magro discusses a new Best's Market Segment Report finding that P/C mutuals report surplus growth, and pursue rate adequacy amid another year of increasing severe storm frequency.
Is the mutual insurance model at a crossroads?
Mutual insurance companies, with their distinctive structure of being owned by policyholders rather than shareholders, have been a cornerstone of the insurance industry for centuries.
Known for their community-driven focus, mutual insurers have carved out a niche as stable, customer-oriented entities. However, as the insurance landscape continues to evolve due to technology, rising capital demands, and regulatory shifts, questions are emerging about whether the mutual insurance model is becoming outdated.
But at least one industry expert is betting against this.
âThe biggest advantage that mutuals have is their passion for serving their policyholders and their communities,â said Tim Fleming (pictured), chief executive of The Mutual Group. âThe challenge is preserving and enhancing that while delivering the kind of service people expect from larger carriers.â
Flemming stressed that mutuals must adapt to the evolving risk environment by making difficult, sometimes unpopular decisions, such as raising rates or adjusting terms to meet the realities of inflation and increasing weather volatility.
AI in Insurance
New Frontiers for Generative AI | Insurance Thought Leadership
AI is beginning to be incorporated into products and may take on much more sophisticated operational tasks, acting as a semi-autonomous agent for a user.Â
While generative AI has been a phenomenon over the past couple of years, most uses have stayed pretty close to home â gathering information to make underwriters, adjusters, and agents more efficient, producing first drafts of reports or communications to clients, that sort of thing.
But some recent articles suggest that AI may be getting ready to break out into much more sophisticated uses, including showing up as part of insurance products.
The article that most caught my eye was one in Fortune about how the CEO of Honeywell intends to use AI for competitive advantage. I had just finished another article in Fortune about a long list of impressive things that Honeywell was doing with generative AI at the operational level and was startled that the CEO belittled the effort. He said the work had to be done, because all his competitors were doing it, but said all the gains in efficiency would be competed away. To gain a sustainable advantage, he said, Honeywell needed to be bolder.
Paul Carroll, editor-in-chief, Insurance Thought Leadership
AI adoption gaining momentum in insurance â poll
Personalised services and fraud detection on the rise
AI adoption gaining momentum in insurance â poll Technology
The acceleration of artificial intelligence (AI) technology is being viewed as key to driving efficiency and operational improvements within the insurance sector. However, the industry is only just beginning to witness the full impact that AI and automation could bring.
According to RDTâs recent Tech Poll, which surveyed technology professionals from insurers and managing general agents (MGAs), there is cautious optimism regarding the adoption of AI. Respondents pointed to the potential for AI to enhance insurance processes and platforms, benefiting both customers and brokers.
The survey revealed that 61% of firms are currently utilising generative AI, while 52% of insurance tech professionals expressed confidence that the sector is implementing AI in ways that will provide tangible benefits to customers and brokers.
AI is already influencing customer service through the use of virtual assistants and chatbots, which can address routine queries and provide quicker responses. These tools enable instant interactions, allowing firms to focus on resolving more complex customer issues that require greater attention.
Joe OâConnor (pictured), deputy CEO of RDT
Events
ITC Vegas 2024 - The worldâs largest gathering of insurance innovation
Insurtech Consulting and our âConnectedâ newsletter are proud media partners of ITC Vegas 2024
Event Date: Tuesday, October 15 â 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 whatâs 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 industryâs best and brightest. Join the insurance event that doesnât just bring the industry together â it moves the entire industry forward.
The future of insurance is here â at ITC Vegas. If you arenât 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.
Data Privacy/Cyber Security
Why Modern Connected Cars Are Becoming A Privacy Nightmare
It was only a matter of time before the issue of automakers selling information generated by car owners exploded.
It has been brewing under the surface for a while, but it's a complicated subject. Now, it looks like GM has managed to sell information without customers' consent in a manner that underlines the potential extent of the consequences of people losing their privacy.
Texas Attorney General Ken Paxton has filed a lawsuit alleging that General Motors is collecting data on its car owners' driving habits and selling that information to insurers without consumers' consent or knowledge. More accurately, the allegation is that GM is selling the telematics data taken from private owner's vehicles to insurance companies to specialist companies like LexisNexis Risk Solutions and Verisk Analytics that can then be analyzed and used by insurance companies on an individual basis if names are attached.
The level of data that can be gathered by modern cars is staggering, but this issue goes much deeper than people's car insurance premiums rising dramatically.
Claims
Streamlining Claims: How AXA UK is Leading the Charge
As AXA launches a new online claims platform, the fusion of AI and digital services is revolutionising the customer experience and operational efficiency
At a time when insurtech solutions are increasingly seen as critical to improving customer satisfaction and operational efficiency in the insurance sector, AXA has unveiled a suite of online tools designed to streamline the claims process for both car and home insurance customers.
The new digital service allows policyholders to initiate claims online at any time, marking a significant shift from traditional claims notification methods. For car insurance customers, the system supports claims related to road traffic accidents, vehicle theft, lost or stolen keys, misfuelling, storm or flood damage and malicious damage. Home insurance customers can now file claims for theft, escape of water, flood, storm, accidental damage and accidental loss through the online portal.