News
Global nat cat losses soar to $120 billion in 2024, Munich Re reports
Climate-driven events escalate, pushing insured losses higher
Global nat cat losses soar to $120 billion in 2024, Munich Re reports
Munich Re reports that from January to June 2024, the global average temperature was approximately 1.5°C higher than pre-industrial levels, with record-breaking temperatures occurring worldwide.
The rise in temperature has led to increased losses from natural disasters, particularly in Africa, where recent events highlight the need for the insurance industry to address climate change risks.
Global losses from natural catastrophes in the first half of 2024 amounted to $120 billion, with insured losses making up about half, or $62 billion. In its report, Munich Re suggests that, based on current figures, insured losses could exceed the $100 billion mark by the end of 2024, which has become a significant point of discussion since 2023.
Allstate reveals huge Hurricane Helene losses
Update includes implemented rates
The Allstate Corporation has reported its estimated catastrophe losses for September 2024, totaling $889 million before tax or $702 million after tax.
A significant portion of the figure – $630 million pre-tax – is attributed to the impact of Hurricane Helene. For the entire third quarter, catastrophe losses reached $1.70 billion, or $1.35 billion after tax. Year-to-date through September, Allstate’s catastrophe losses amounted to $4.55 billion pre-tax or $3.60 billion after tax.
In addition to the losses, Allstate conducted its annual review of its run-off property-liability reserves during the third quarter. The assessment resulted in unfavorable reserve reestimates of $58 million, or $46 million after-tax.
Notably, the insurer also implemented rate increases for its Allstate brand auto insurance. The adjustments led to a 2.9% premium impact in Q3 and a cumulative 6.3% for the year. The rate hikes included approvals from insurance regulators in New York, New Jersey, and Texas.
AG Brown Joins Coalition to Defend HUD's Anti-Discrimination Rule
Attorney General Anthony G. Brown has joined a coalition of 19 state attorneys general in filing an amicus brief urging a federal court to uphold the Department of Housing and Urban Development's (HUD) Discriminatory Effects Rule. This rule holds insurers and other parties accountable under the Fair Housing Act for housing practices that may have a discriminatory effect on individuals in protected classes, even if discrimination was not intentional. This form of discrimination, known as "disparate impact," is at the center of the case.
The homeowners insurance industry is challenging the rule, arguing that HUD should exempt them from liability when their state-authorized pricing and underwriting practices result in discriminatory effects. The insurers contend that federal fair housing laws should not apply if state-level insurance laws allow those practices.
In response, Attorney General Brown and his colleagues argue that HUD's rule is essential to preventing housing discrimination and that it complements state anti-discrimination laws in many states, including Maryland. They assert that the industry's request for a blanket exemption would undermine efforts to address discriminatory practices in the insurance market.
The coalition of attorneys general previously filed a similar brief in 2023, which the trial court acknowledged as "significant" in its decision to uphold HUD's rule. The current brief, filed with the U.S. Court of Appeals for the Seventh Circuit, continues to oppose the insurance industry's challenge.
Lawsuits Related to Non-OEM Parts, Insurers Suing Shops, Crash Reports See Court Activity
There was recent activity in five industry-related lawsuits as they proceed through the process in U.S federal courts around the country.
The Florida Supreme Court in September ruled that GEICO cannot sue an auto glass company in that state under the Florida Motor Vehicle Repair Act (FMVRA). Glassco, Inc., had originally sued the insurer over what it called “deeply discounted” reimbursement for insurance claims. GEICO countersued, alleging Glassco would have insured customers assign rights to all insurance payments for repairs without informing the customers what services would be needed.
A federal appeals court ruling in the case asked the Florida Supreme Court whether the FMVRA gives an insurer the right to sue the shop for failure to provide a written estimate. That court now has answered “no” to that question, saying the law in question focuses almost exclusively on the interactions between a “repair shop and the person who presents the car for repair.” It mentions insurers only once, relative to prohibiting substitution of used parts for new without notifying the insurer.
“GEICO concedes that it is not a ‘customer’ under the statute’s definition of the term,” the opinion said, and the FMVRA only gives a shop’s customer the right to sue. Glassco may have violated the FMVRA, the court said, but that doesn’t give GEICO a cause of action.
The ruling also said violations under FMVRA do not necessarily render “a subsequent repair invoice entirely void,” the other issue the appeals court posed to the Florida Supreme Court. The case now returns to the appeals court.MORE
InsurTech/M&A/Finance💰/Collaboration
Agentech assists insurance adjusters
An Oklahoma-based company using artificial intelligence "Minions" to streamline insurance claims has received $3 million in seed money with hopes of growth globally.
Agentech, founded nearly a year ago by Robin Roberson of Oklahoma City and Alex Pezold of Tulsa, offers capabilities to tackle "the labor intensive, subjective and outdated claims process."
The company's AI-driven "ensemble of agents automates the mundane and repetitive tasks typically handled by desk adjusters," allowing carriers to experience a big increase in output without incurring additional labor costs, a news release said.
The funding — from a variety of institutional and individual investors — was announced at Insurtech Connect 2024 last week in Las Vegas, an event for innovation and emerging global technologies in the insurance industry.
About 11,000 people were at the conference, where Roberson and Pezold held a video call with the Tulsa World.
Pezold described Agentech's AI technology as sort of like "Minions" from the "Despicable Me" animated films.
"Think of it as we've created a whole bunch of little Minions that have a very specific task that they complete ... and then we have an orchestrator agent," he said. "Whenever a (insurance) claim is submitted, it comes with sometimes hundreds of pages of documents about the claim ... and what the claims adjudicator has to do is look through all of that data, manually."
Crawford & Company launches Turvi, a new insurtech for claims management
AI-powered SaaS solutions aim to streamline P&C claims processing
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 above), 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 customized technology solutions to address its challenges,” Tolson said.
Wuuii Announces Integration with IBHS and Expanded Service Provider Network
A Wildfire Prepared Home full-service option is now available to help California homeowners meet underwriting requirements and reduce premiums
Wuuii, a San Francisco-based risk management software and services provider for insurers and brokers focused on climate-driven wildfire risks has announced a new integration with the Insurance Institute for Business and Home Safety (IBHS), which combines the benefits of IBHS’ Wildfire Prepared Home program and Wuuii’s Madronus Wildfire Defense (Madronus) network to offer a full-service option for California property owners who want to reduce wildfire threats, find affordable insurance, and qualify for premium discounts, according to a statement from Wuuii. IBHS is a nonprofit, scientific research and communications organization supported by property insurers and reinsurers.
“Wuuii exists to make it simple to protect homes, businesses, and communities from devastating wildfires,” comments Ivan O’Neill, CEO, Wuuii. “Working with IBHS means Wuuii enterprise software customers can now help millions of Californians with homes and businesses at risk of wildfire. It’s a crucial part of solving the insurance crisis and helps admitted insurers comply with state requirements to offer premium discounts for policyholders who invest in protecting their property.”
Climate/Change/Sustainability/ESG
AIR Parametric launches Milkshake
Boston-based AIR Parametric, in partnership with Guy Carpenter and Liberty Mutual Reinsurance, has launched Milkshake™, a parametric insurance product aimed at protecting US dairy producers from heat stress, which impacts livestock productivity and reduces milk output.
Milkshake™ was developed in consultation with dairy industry experts and agents. It uses AIR Parametric’s weather data and machine learning to identify location-specific weather triggers. Customers can choose from various coverage limits and events, with a streamlined quoting and binding process that eliminates traditional claims adjustments.
AIR Parametric’s solutions offer financial protection from extreme weather events like heat spells, cold snaps, and excess rainfall, which, while not physically damaging, can severely affect business operations.
“We are very proud of our first generation Milkshake™ product, and we will be adding more distribution partners across the US and in other livestock regions around the globe. Parametric products are becoming more applicable to the broad commercial marketplace and can help customers of all industries address the economic impacts of weather. Our advanced data platform allows us to create solutions for any business globally that is negatively impacted by an extreme weather event. We are currently working with agents and customers in an array of business segments to leverage these capabilities to build new programs. The broader insurance community is just beginning to understand the power of the parametric insurance solution – there are so many ways to use it to solve problems our policyholders are experiencing.” – James Luce, CEO and Founder of AIR Parametric.
Telematics, Driving & Insurance
Cambridge Mobile Telematics Announces Enhanced Driver Experiences, Crash Capabilities, and Developer Tools
Cambridge Mobile Telematics (CMT), the world’s largest telematics service provider, today has unveiled major enhancements to its industry-leading DriveWell Risk and DriveWell Crash & Claims Product Suites. These advancements include a simplified onboarding process, enhanced driver/passenger classification, and new crash detection models that deliver unprecedented accuracy across all crash severities. In addition, CMT is introducing new developer tools that make building safe driving experiences on the DriveWell Fusion® platform easier than ever.
CMT has measured the driving behaviors of over 40 million users to date. With its new streamlined onboarding process for Tag customers, drivers no longer need to take multiple steps to link their safe driving app with the Tag. They just stick the Tag to their windshield and CMT’s technology automatically links it to their account. These improvements make it easier than ever for users to activate their telematics program, increasing adoption rates and reducing support calls.FULL ARTICLE
How sensors predict and prevent auto accidents
Sensor tech can promise safer roads by providing real-time data, predictive insights, and automated safety features.
Traditional features like blind spot detection help drivers know what's there, even if they can't see it themselves. Perception sensors are becoming increasingly common in vehicles.
These sensors, and the systems and processes they enable, make drivers more aware of their surroundings and make it easier for them to respond to that environment. This includes visual aids, like dashcam cameras, but also tactile feedback mechanisms that extend drivers' senses beyond vision.
These sensors are integral to increasing road safety and mitigating accidents. They help a driver know what's there when they can't see it. But they also help drivers, or even autonomous vehicles, to better understand road conditions and vehicle-road dynamics.
One study found that even basic driver assistance systems could prevent over 20,000 traffic fatalities per year. As sensors diversify and proliferate, they're addressing all kinds of safety issues. Here are five ways that sensors are helping to prevent accidents.
Sensory enhancement
Traditional features like blind spot detection help drivers know what's there, even if they can't see it themselves. But it's not just about seeing; it's about perceiving. Sensors enhance a driver's ability to perceive their environment, providing a deeper understanding of both the vehicle and the world around it.
Boaz Mizrachi is the co-founder and CTO of Tactile Mobility.
Fraud
Insurance Fraud Attempt Captured In Broad Daylight Should Be All The Motivation You Need To Finally Pick Up A Dash Cam
An attempt to stage an auto accident in Queens, New York, was thwarted all thanks to a simple dash cam.
You can literally see the moment one of the scammers realized they're being recorded
The video was posted to TikTok by Ashpia Natasha aka @ashpianatasha4. In the description she explained that she was driving east on the Belt Parkway in the middle lane when an eighth-gen Honda Civic coupe suddenly cut her off. The car slammed on its brakes, likely hoping that Ashpia would rear end them. Her braking was too good for the scammers however, as she comes close but doesn’t make contact. Ashpia mentioned that a second vehicle — a red Kia Sportage — was also following closely behind her.
People
Layr Welcomes New CEO Mark Hara
Layr, the insurtech startup that uses artificial intelligence to help small businesses customize commercial insurance bundles, today announces that insurance industry veteran Mark Hara is joining the company as CEO. Through a career spanning leadership roles across the insurance industry at organizations both large and small, Hara has developed the experience to help Layr scale in its next phase. Phillip Naples, Founder of Layr and former CEO, will work closely with Hara while shifting his focus to company strategy and enterprise partnerships as Chief Strategy Officer.
"I've been very impressed with Layr's growth from startup to sustainable business," said Hara. "I couldn't be more proud to lead efforts scaling the company to serve more brokers and agencies, making it easier than ever for them to serve more small businesses. There's so much potential in this space and Layr is extremely well-positioned to amplify the capabilities of brokers serving small businesses."
Hara comes to Layr from FloodFlash, where he served as CEO. Previously he built and scaled sales, marketing, customer care and operations as COO and President of New Ventures at Bold Penguin and before that led rapid revenue expansion for the direct-to-consumer insurance platform Mylo. Hara also deeply understands large enterprises, having spent more than a decade each at Nationwide as VP of Digital Marketing and as Chief Innovation Officer and at P&G as Marketing Director.