AI in Insurance
Unlocking the Potential of AI for Life Insurance
In the view of Richard Wiedenbeck, Chief AI Officer, Ameritas, artificial intelligence isn’t just about automation—it’s about smarter decision-making and creating efficiencies that can support growth without escalating costs.
For this episode of Life Accelerated, we welcome back Richard Wiedenbeck of Ameritas. Richard was actually the first-ever guest on the podcast, for an episode published in April 2022.
At that time, Richard was the company’s Chief Technology and Transformation Officer. An executive with tremendous experience in life insurance and other industries, he was formerly CIO of Ameritas, and this year he became the company’s Chief AI Officer.
The existence of Richard’s title is itself an indication of the progress being made in the study and adoption of AI both at Ameritas and the life industry more broadly. Richard’s new role provided a great opportunity to hear about how AI is enabling greater efficiency and smarter decision making at Ameritas, as the company navigates the challenges of cost and productivity in a rapidly changing world.
Research
Consumer Reports: Worst auto insurance companies of 2024
Customer satisfaction in insurance is highly influenced by trust, a 2024 J.D. Power study found, with 90% of customers who claim to have a high level of trust in their auto carrier reporting they are more likely to renew their policies with the same insurer.
For drivers who reported having a low amount of trust in their carrier, only 30% planned to stick around with their current auto insurer. Higher premiums do impact customer satisfaction with their auto insurer, but even in the face of across-the-board rate increases, there is hope for auto insurers to overcome that hurdle.
"Auto insurers are in a tough position right now," Breanne Armstrong, director of global insurance intelligence at J.D. Power, said in a release about the report. "With repair costs still rising—and with more than 20% of vehicles involved in collisions now considered total write-offs—insurers are still losing money, despite passing along huge price increases to their customers.
What's interesting in J.D. Power data is that even though high premiums negatively affect customer satisfaction, those negative influences can be offset by high levels of trust that insurers will come through when they are needed." After surveying more than 40,000 policyholders in early 2024, Consumer Reports determined which auto carriers provide the best experience for their customers. The organization rated insurers based on the feedback from customers about the ease of the claims process, quality of non-claim-related service, thoroughness of policy review, clarity of policy coverage, proactive help and advice.
In the slideshow above, we'll look at the auto insurers that received the lowest ratings from Consumer Reports in 2024.
News
California judge denies class action against National General, other insurers for alleged overpaid premiums
A California district court has denied class certification in a lawsuit filed by auto insurance policyholders who say National General Insurance Co. and several other companies erroneously charged them higher premiums.
The plaintiffs sought class certification on claims that the insurers violated the California Unfair Competition Law (UCL) and breached the implied covenant of good faith and fair dealing. The defendant insurers are National General, Integon National Insurance Co., Integon Preferred Insurance Co. MIC General Insurance Corp., and Personal Express Insurance Co.
“All plaintiffs qualified as good drivers and were therefore entitled to a GDD [good driver discount] policy from an insurer within defendants’ control group that offered the lowest rates for that coverage,” an Oct. 8 court order states. “In violation of the Lowest Rates Rule, defendants’ agents and representatives failed to offer plaintiffs and class members the lowest available GDD policy rates within their control group.
“Plaintiffs assert that at the time they purchased their policies, certain defendants [other insurance companies] within the same control group had GDD policies with lower rates than what plaintiffs paid for substantially similar coverage but plaintiffs were never offered those lower rate policies.”
The same was true at policy renewal, according to the suit. “They would have purchased the lower premium policies if offered,” it states.
The court instructed the parties to address the meaning of “control group” under the applicable statute as the definition would inform standing.
Announcements
VOOM Launches Electric Bike Insurance
VOOM Insurance, the leading InsurTech company for the future of mobility, announced today that it has launched its insurance offering for Electric Bikes. The product is underwritten by Markel Group.
This new product builds on VOOM's successful track record in usage-based insurance for motorcycles and rideshare drivers, extending their innovative approach to the rapidly growing e-bike market.
The bicycle insurance product is designed to offer flexible and affordable coverage, extending protection beyond what's typically available under traditional homeowners or renters insurance policies. It covers a wide range of bicycles, including electric bikes, mountain bikes, hybrid/cruisers, racing bikes, road/track bicycles, and more. Key features of the new e-bike insurance include Liability protection, Physical damage coverage, Medical payments and Theft protection.
"Since inception, VOOM's mission is to provide the best of breed insurance products for the future of mobility, we are excited to expand our suite of products to include coverage for e-bikes," said Tomer Kashi, CEO and Co-Founder of VOOM. "Our recent expansion into e-bike insurance was driven by feedback from hundreds of our motorcycle customers who expressed interest in this product, and we are thrilled to extend our innovative insurance solutions to this segment as well."
Commentary/Opinion
Ex-FEMA official says insurance program in 'desperate' need of overhaul
Now an MD at Marsh McLennan, he’s championing the need for legislative changes
Ex-FEMA official says insurance program in 'desperate' need of overhaul
The National Flood Insurance Program is overdue for reform, according to Daniel Kaniewski, a former deputy administrator at the Federal Emergency Management Agency.
Legislative changes are required to help reduce the cost of flood insurance for American homeowners and renters, Kaniewski, who’s now a managing director at Marsh McLennan, said Friday in a Bloomberg Television interview. While FEMA, which administers the program, has laid out proposals to amend it, no action has been taken yet, he said.
“Until there are reforms made to the NFIP, we’re going to be dealing with this situation again and again in the future,” Kaniewski said, days after Hurricane Milton lashed Florida and about two weeks following Hurricane Helene, which caused catastrophic flooding far inland.
Florida’s home insurer of last resort is in serious trouble. Will Milton put it over the edge?
An exodus of national insurance companies from Florida, combined with local private insurers canceling plans, has left many homeowners there with only one option: Citizens Property Insurance Corp.
The state-backed nonprofit home insurance company was set up to be an insurer of last resort for those who can’t find coverage in the private market. With 1.3 million policies in force as of last month, three times as many compared to five years ago, Citizens is by far the largest provider in the state.
But now, with Hurricane Helene and Hurricane Milton both making landfall and devastating homes in Florida within just days of each other, the insurer will almost certainly have to pay out billions of dollars in claims.
Can Citizens stay afloat?
The answer lies in the insurer’s structure — which might be reassuring to policyholders, even if it ultimately leads to higher premiums.
Staying solvent
Florida Gov. Ron DeSantis warned earlier this year that Citizens was “not solvent” and that it can’t function with “millions of people on that because if a storm hits, it’s going to cause problems for the state.”
“Thankfully, Florida avoided the worst-case scenario forecasted with Milton, but that doesn’t change the fact that Citizens is potentially one catastrophic storm or storm season away from insolvency,” Sen. Sheldon Whitehouse, a Democrat from Rhode Island, told CNN in an emailed statement.
“Should claims exceed the insurer’s ability to pay, Citizens has a mechanism to pass its losses on to Florida families, who are already paying sky-high premiums,” said Whitehouse, who chairs the Senate’s Budget Committee and is leading an investigation into Citizens’ viability. “Recouping billions of dollars in losses from Floridians is unlikely to be feasible economically or politically, let alone in time to pay massive claims — hence the Budget Committee concern about possible requests for a federal bailout.”
InsurTech/M&A/Finance💰/Collaboration
Holmes Murphy and BrokerTech Ventures Bring Global Insurtech Accelerator to Des Moines, Iowa
Holmes Murphy and BrokerTech Ventures are excited to announce they will be co-hosting the second annual Rapid Global Insurtech Accelerator (RGIA) in partnership with InsurTech Israel.
The RGIA will bring 14 insurtech startup founders from across the globe — representing six of seven continents — to Holmes Murphy's headquarters in Des Moines, Iowa, November 11-14, 2024.
Kobi Bendelak, CEO and Founder of InsurTech Israel, created the premiere program in 2023 and hosted the inaugural event in his home country of Tel Aviv, Israel. Bendelak says this year, they chose to hold the event in Des Moines as the ideal U.S. location not only because the city is an insurance and financial services hub in the country but also due to Holmes Murphy's headquarters and extensive operations in the city and state.
"I'm consistently in awe of the incredible work Des Moines and the greater state of Iowa have done in the insurtech space," said Bendelak. "Couple that with our connection between Holmes Murphy, BrokerTech Ventures, and InsurTech Israel, and it's amazing how we're able to further strengthen ecosystem ties and build relationships in the global insurance industry. Our relationship with these companies and the state of Iowa is a testament to the power of collaboration, transcending personal, business, and international dimensions."
The foundation and purpose of the RGIA is to build upon the global insurtech ecosystem and not only provide mentorship and business support to accepted global insurtech founders, but also open the door for the global insurtech founders to experience how business is done in the U.S. marketplace.
Ardonagh completes acquisition of PSC Insurance Group | The Ardonagh Group
Ardonagh will merge PSC’s Australia and New Zealand operations with Envest, becoming one of Australia’s leading insurance distribution platforms placing A$3.3 billion in gross written premium annually.
- PSC Group Founder and Chairman Paul Dwyer will strengthen Ardonagh senior leadership, working across APAC and the UK to grow the Group and drive strategy
- Completion of PSC acquisition and migration of talent complements Ardonagh’s strategic growth platform
The Ardonagh Group (“Ardonagh” or “the Group”), a leading multi-national independent insurance broking platform, confirms it has completed the acquisition of PSC Insurance Group Limited (“PSC”).
The completion of the transformational acquisition in the APAC region sees PSC’s operations in Australia and New Zealand now combined with The Envest Group, Ardonagh’s platform in the region, led by CEO Greg Mullins.
Source7 and Plnar Partner to Revolutionize Property Insurance with AI-Powered Interior Inspections
Source7, a pioneer in real-time data on household appliances and major mechanicals, today announced a strategic partnership with Plnar, an AI platform powered by smartphone imagery that digitizes every step in the property insurance lifecycle. This collaboration aims to revolutionize the property insurance industry by providing insurers with innovative insights into property interiors. It accelerates claims processing, optimizes subrogation recoveries and deductible returns for those who have suffered an interior water or fire loss, and strengthens loss prevention efforts.
Plnar's innovative software and AI leverage smartphone photos to automatically generate accurate 3D models of interior spaces and measure property exteriors, identifying materials and contents with remarkable precision. This technology enables highly accurate identification of damage to build property estimates, reducing costs, saving time, while improving the customer experience.
Plnar’s platform allows carriers to standardize their smartphone imagery strategy during every step in the policy lifecycle. By integrating Plnar's technology with Source7's expertise in appliance and mechanical data, insurers can now:
In an era of rising inflation and catastrophic losses, insurers are seeking innovative solutions to improve their bottom lines. By prioritizing loss prevention and subrogation, insurers can recover losses, prevent future claims, and enhance their competitive advantage by returning more deductibles to their customers.
Claims
Crawford & Company debuts Turvi to bring AI to P&C claims
Claims management specialist Crawford & Company has announced the launch of Turvi, a new insurtech company offering software-as-a-service (SaaS) solutions designed to enhance the property and casualty claims ecosystem.
Turvi’s SaaS products incorporate artificial intelligence (AI) and automation to streamline claim processing, accelerate estimating, simplify coverage review, and improve the overall customer experience. Initially developed by Crawford & Company for its own clients, the Turvi suite will now be available to the wider claims industry.
Ken Tolson (pictured), who has over 30 years of experience at Crawford in various roles, will serve as chief executive officer of Turvi. Tolson is known for his expertise in claims management and technology innovation within the insurance sector.
“Having lived and learned from every facet of the claims lifecycle in our time at Crawford, we understand the industry’s complex needs, and we’ve built customised technology solutions to address its challenges,” Tolson said.
Tolson highlighted that the claims industry faces a service gap, with carriers often under-resourced to manage claims efficiently.
“We are launching Turvi to help address this issue, by providing partners, large and small, new and established, the tools they need to address big problems in the claims process – and in doing so, to help improve the policyholder experience,” he said.
Climate/Resilience/Sustainability
Building damage from Hurricane Milton in Florida could surpass Helene's: ICEYE
The number of buildings in Florida impacted by Hurricane Milton are similar to, or even more than Helene which totalled over 150,000, according to ICEYE’s initial data.
Hurricane Milton made landfall on the 9th of October in Florida’s Sarasota County as a Category 3 hurricane, bringing damaging winds, tornadoes, life-threatening storm surge, and heavy rainfall.
The storm has since moved inland, reducing in strength but leaving extensive flooding and damage in its wake.
ICEYE has been monitoring the storm and its impacts since its formation, acquiring over 100 SAR satellite images of the impacted areas through thick storm clouds and even at night. We delivered the first flood extent and depth analysis on October 10th, focusing on the west coast of Florida.
Renewables 2024 – Analysis - International Energy Agency (IEA)
Renewables 2024 - Analysis and key findings. A report by the International Energy Agency.
About this report
This edition of the IEA’s annual Renewables market report provides forecasts for the deployment of renewable energy technologies in electricity, transport and heat to 2030, while also exploring key challenges facing the industry and identifying barriers that are preventing faster growth.
At the COP28 UN Climate Change Conference in December, governments agreed to work together to triple the world’s installed renewable energy capacity by 2030. Renewables 2024 offers a comprehensive country-level analysis on tracking progress towards the global tripling target based on current policies and market developments. Additionally, it assesses the challenges to faster expansion.
For the first time, the report features a special chapter on renewable fuels, including bioenergy, biogases, hydrogen, and e-fuels. It forecasts their role in global energy demand by 2030 and their potential for decarbonizing the industry, building, and transport sectors.
People
Arch Capital selects new CEO as earnings surge
Arch Capital Group Ltd (Arch Capital or Arch) has announced a leadership transition, appointing Nicolas Papadopoulo as its new chief executive officer (CEO).
Effective immediately, Papadopoulo will also join the company’s board of directors. He succeeds Marc Grandisson, who has stepped down after serving as CEO since 2018 and being with the company for over two decades.
Papadopoulo, who has been with Arch since 2001, most recently held the positions of president and chief underwriting officer (CUO). He brings extensive experience in leadership roles across both Arch’s insurance and reinsurance operations.
John Pasquesi, chairman of Arch’s board, commented that Papadopoulo’s experience and expertise make him well-positioned to lead the company forward, with a focus on continuing to deliver shareholder value.
“Consistent with the board’s robust succession planning process, we believe Nicolas’s experience and expertise make him the ideal person to lead Arch going forward to drive growth and value for all shareholders. We look forward to working with Nicolas as CEO, and the entire leadership team, as we position Arch for even greater success in the future,” he said.