News
Ford's BlueCruise hands-free technology faces closer investigation after fatal crashes
The National Highway Traffic Safety Administration is upgrading its investigation into Ford Motor Co.'s hands-free technology — called BlueCruise — after two fatal crashes involving all-electric Mustang Mach-E vehicles when the technology was in use.
Regulators said this week they are moving the status of the probe to "engineering analysis," a step needed before it could order a recall. The analysis will cover 2021-24 model years, which is about 129,222 cars, according to NHTSA.
In its analysis, NHTSA will investigate Ford's system limitations and "evaluate drivers’ ability to respond to scenarios that exceed system limitations," NHTSA said in documents. During the analysis, regulators will evaluate vehicles equipped with BlueCruise, review additional technical information, and perform additional analysis of related crashes and noncrash reports, it said.
Ford spokeswoman Amy Mast told the Free Press, "We are working with NHTSA to support its investigation."
The BlueCruise system uses a camera-based driver monitoring system to determine driver attentiveness. It is available on 97% of U.S. and Canadian highways on stretches with no intersections or traffic signals. Ford introduced the technology in model year 2021 and made it available in certain Ford and Lincoln vehicles.
Investigation started last year
NHTSA said it opened its investigation into BlueCruise in April 2024 after it received notice of two fatal accidents that involved BlueCruise-equipped Mach-Es. Based on those crashes, NHTSA started investigating the 2021-24 model year Mach-E vehicles equipped with BlueCruise.
LinkedIn sued for disclosing customer information to train AI models - Business Insurance
Microsoft’s LinkedIn has been sued by Premium customers who said the business-focused social media platform disclosed their private messages to third parties without permission to train generative artificial intelligence models.
According to a proposed class action filed Tuesday night on behalf of millions of LinkedIn Premium customers, LinkedIn quietly introduced a privacy setting last August that let users enable or disable the sharing of their personal data.
Customers said LinkedIn then discreetly updated its privacy policy Sept. 18 to say data could be used to train AI models, and in a “frequently asked questions” hyperlink said opting out “does not affect training that has already taken place.”
This attempt to “cover its tracks” suggests LinkedIn was fully aware it violated customers’ privacy and its promise to use personal data only to support and improve its platform, in order to minimize public scrutiny and legal fallout, the complaint said.
The lawsuit was filed in federal court in San Jose, California, on behalf of LinkedIn Premium customers who sent or received InMail messages, and whose private information was disclosed to third parties for AI training before Sept. 18.
It seeks unspecified damages for breach of contract and violations of California’s unfair competition law, and $1,000 per person for violations of the federal Stored Communications Act.
LinkedIn said in a statement: “These are false claims with no merit.”
Research
Evolving times, evolving solutions: Transforming insurance for the digital age - Capgemini USA
Inflation, changing demographics, geopolitical concerns, and the push for sustainability are driving new digital trends that insurers need to follow if they want to stay relevant and meet customer expectations.
However, AI and analytics technologies can overcome these challenges quickly, enabling insurers to focus more on creating the seamless, omnichannel experiences customers now expect and improve how they address market disruptions with minimal effort on their part.
In this paper, we will provide a roadmap on how AI and analytics can help streamline insurance processes, enhance customer experiences, optimize insurance operations, reduce costs, and build personalized insurance services that cater to any demographic.
In these changing times, adaptability and customer focus are crucial. Insurers that embrace transformation, build strong partnerships, and focus more on customer centricity today will be well-equipped to address disruptions and rise above the competition tomorrow.
Capgemini combines its business consulting strengths with technological expertise and managed services solutions to help our clients achieve new heights of operational efficiency, no matter the scale. We work with partners to build a strategic roadmap towards more efficient operations and automation, analyzing where and how technologies can be integrated”
Commentary/Opinion
"Polycrisis" - Three interconnected risk clusters reshaping insurance
The current era of “polycrisis,” marked by overlapping and interconnected challenges - from climate change and rapid technological advancements like AI to geopolitical tensions - demands a proactive approach to risk management, according to Christoph Nabholz (pictured), chief research and sustainability officer at the Swiss Re Institute.
Insurers that understand and can address these interwoven risks can position their organizations for success. “If we understand what these risks are going to contribute, we will understand the risk landscape, and we know what products will be needed in the future,” Nabholz told an audience of insurtech and insurance leaders at ITC London, which opened in the UK capital on Monday (January 27).
He stressed that addressing interwoven risks is key for businesses and governments to unlock transformative opportunities, from accelerating the net-zero transition and harnessing digitalization to stabilizing supply chains and driving sustainable economic growth.
Risk clusters to watch
Nabholz named three main risk clusters impacting organizations worldwide:
Climate
Digital
Socio-economic
What NFL Playoffs Say About Innovation in Insurance | Insurance Thought Leadership
[Ed.Note: Paul Carroll's commentary about innovation and change illuminates how the insurance industry can benefit from key lessons in football. As the rules (let's call them incentives) in the NFL were tipped toward offensive scoring and player safety, new opportunities to leverage them emerged - but it often takes losing to have a clear vision of the possible. Insurance risk has changed significantly and so have the incentives.]
The four teams demonstrated real innovation -- that took ages to gestate. There are lessons for insurers.
While my main takeaway from the NFL conference championship games over the weekend was that I'm soooo ready to move on from the Kansas City Chiefs — anyone with me? — I was also struck by the fact that the four teams went for it on fourth down again and again and again... and again and again. They went for it 14 times in all.
For those of us who grew up with football in the ’70s and ’80s, that's a stunning number. If a team was even inches short on fourth down back then, they'd try a field goal or punt. "Take the points." Or, "Kick it away and rely on your defense."
Paul Carroll, editor-in-chief, Insurance Thought Leadership
Los Angeles Wildfires
Chubb reveals massive hit from LA wildfires
Chief executive speaks on impact as company releases financials
Chubb Ltd estimates that the wildfires that ravaged swaths of Los Angeles earlier this month will cost the insurer US$1.5 billion in the first quarter.
The firm revealed the expected cost in a statement Tuesday that detailed its fourth-quarter 2024 results, making it the first insurer to provide an estimate of wildfires’ financial impact.
Travelers Cos didn’t provide an estimate when it released its results last week.
“The California wildfire disaster is a terrible tragedy that is still unfolding,” Chubb chief executive officer Evan Greenberg said in the statement. “Our colleagues have been on the ground from the beginning, endeavoring to assist our policyholders who have lost property, been displaced from their homes and businesses, and had their lives severely disrupted.”
Estimates of the total cost for the industry have climbed to as much as US$40 billion, as the fires kept spreading devastation for weeks across Los Angeles — destroying property and killing at least 28 people. Rain has in recent days helped tame the fires, which as of Tuesday are largely contained
State Farm shares update on LA wildfire claims
In mid-January, State Farm provided an update on home and auto claims related to the LA wildfires, which resulted in 6,700 claims that were processed by the insurer.
The company is now providing another update – as of Monday (Jan. 27), State Farm received over 10,100 home and auto claims with payouts of almost $500 million. The insurer added that it made successful voice-to-voice contact with over 95% of customers who have filed homeowner claims.
State Farm is the largest insurer group in California and in LA County, it insures 250,000 homes and 880,000 automobiles. In total, the company has more than 8 million policies and accounts in the state.
Financial Results
Chubb Reports Fourth Quarter Per Share Net Income and Core Operating Income
Respectively; Consolidated Net Premiums Written of $12.1 Billion, with Global P&C and Life Insurance Up 6.7% and 7.6%; P&C Combined Ratio of 85.7%; Record Full-Year Per Share Net Income of $22.70 and Core Operating Income of $22.51; Consolidated Net Premiums Written of $51.5 Billion, Up 8.7%, with Global P&C Up 9.6% and Life Insurance Up 15.7%; P&C Combined Ratio of 86.6%
Net income and core operating income were $2.58 billion and $2.45 billion, or a record $3.05 billion and $3.00 billion on a pre-tax basis, respectively. Excluding the prior year deferred tax benefit of $1.14 billion, or $2.76 per share, related to the enactment of Bermuda's income tax law (tax benefit), net income and core operating income were up 18.9% and 7.7%, and on a per share basis were up 20.1% and 8.7%.
Global P&C net premiums written, which excludes Agriculture, were up 6.7%, with commercial insurance up 6.4% and consumer insurance up 7.5%. North America was up 6.3% and Overseas General was up 6.8% in constant dollars, with Latin America, Asia-Pacific, and Europe up 11.5%, 9.3%, and 3.9%, respectively.
P&C underwriting income was a record $1.58 billion, up 3.8%, with a combined ratio of 85.7%. P&C current accident year underwriting income excluding catastrophe losses was $1.97 billion, up 20.1%, with a record combined ratio of 82.2%.
Pre-tax catastrophe losses were $607 million, including $309 million from Hurricane Milton, compared with $300 million last year.
InsurTech/M&A/Finance💰/Collaboration
Roots Automation Achieves 100% Year-Over-Year Revenue Growth in 2024, Driven by New Customer Acquisition and Account Growth
Roots Automation, creator of the Agentic AI platform for insurance and InsurGPT™, the world's first generative AI model for insurance, today announced its fourth straight year of triple-digit revenue growth with significant company and customer expansion. In 2024, the company continued to prioritize research and development of its insurance AI technology, allowing insurance companies to increase revenue by quoting business faster, decrease claims leakage by interpreting data accurately, and delight policyholders by improving person-to-person engagement.
Following are milestones Roots Automation saw in 2024:
More than 100% revenue growth from new and existing insurance customers. Roots Automation is trusted by a notable customer list that includes three of the top five property and casualty (P&C) carriers, three of the top ten brokers, and the industry's largest TPA. This rapid expansion builds upon an incredible 500% revenue growth in the last three years and is driven by new customer acquisition and the expansion of current customer relationships through the successful implementation of Roots Automation across claims, underwriting and premium audit.
"We thank our valued customers and team for enabling these achievements in 2024," said Chaz Perera, CEO and co-founder of Roots Automation. "Given the anticipated slowdown of premium growth across most insurance products, companies will need to focus on operational improvements that enable personalized experiences that delight customers to outcompete their peers. Roots' technology empowers them to do that. We look forward to building on our achievements and to further demonstrate the critical impact insurance-specific AI will have on transforming the way insurance companies protect their policyholders."
Announcements
Mangrove Property Insurance gets approval for Florida P&C coverage
Mangrove Property Insurance, a new player in the Florida insurance market, has received approval from the state's Office of Insurance Regulation (OIR) to provide property and casualty (P&C) insurance.
Industry veteran Stephen Weinstein will lead the company, which aims to deliver “high-quality” P&C coverage throughout the state and become a “long-term franchise player”.
Mangrove's approach includes leveraging a data-driven strategy and focusing on catastrophic risk management.
Mangrove plans to work with independent agents across all 67 counties in Florida, offering “competitive rates” to its customers.
The company received the certificate of authority from the OIR and has been authorised to participate in the April assumption of policies from the Citizens Property Insurance Corporation.
As part of its operational readiness, Mangrove has applied for a Financial Stability Rating from Demotech.
The company intends to commence writing homeowners coverage for policyholders who are not currently insured by Citizens Property once it secures this rating.
Weinstein has acknowledged partners in the launch, including GallagherRe as the reinsurance broker and Gallagher Securities as the capital markets advisor, and sole structuring and placement agent.
Weinstein said: “Smart legislative and regulatory reforms have stabilised Florida’s marketplace, giving us confidence to enter the market with new capital and capacity to help homeowners meet their property insurance needs.
Recommended Events
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Join us for two days of inspiring keynotes, panel discussions, workshops, an electrifying expo hall + demo stage, and networking as we delve into the latest advancements and solutions in climate resilience. Together, we will shape a more sustainable future.
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2025 PREDICTIONS
The Road Ahead: Top Insurance Trends Shaping 2025
As technology rapidly advances, customer expectations skyrocket and economic uncertainty looms, the insurance industry stands at a pivotal crossroads.
Compounding these issues, talent shortages persist as the pressure to attract and retain the next generation has never been higher. These factors will create both challenges and opportunities this year, and insurers that keep a close eye on these ongoing shifts will be poised to increase efficiencies, improve customer and agent experiences and scale their operations.
10 insurance industry predictions for 2025
Following a dynamic 2024 that saw sweeping transformations across the insurance sector—driven by climate extremes, rapid technological innovation, and shifting market demands—Novidea, a leading provider of cloud-native insurance management platforms for brokers, agents, and managing general agents (MGAs), has revealed its top ten predictions for 2025.
“In 2024, the insurance industry experienced significant operational transformation, facing more pressure than ever to innovate, improve efficiency, boost profitability, and deliver a world-class customer experience,” Novidea chief revenue officer Jeff Heine said. “To help organisations prepare for the year ahead, our experts assembled a list of predictions that will shape how the industry progresses this year.”
The US insurance market: key predictions for 2025
Insurance mergers and acquisitions (M&A) are set to regain momentum as the US economy continues its recovery from pandemic disruptions.
Normalising interest rates are expected to drive increased venture capital (VC) investment in InsurTechs, while carriers will actively pursue MGAs. InsurTech platforms will be pivotal in ensuring seamless integration and standardised operations across acquired companies.
Reinsurers will witness modest growth despite escalating climate-related costs. With the rising frequency of weather-driven claims, reinsurers will depend heavily on advanced technology for risk visibility, relying on centralised data solutions to manage exposure effectively.