News
![ICYMI --- InsurTech: Not Dead but Different](https://dxj7eshgz03ln.cloudfront.net/production/link/image/845087/twenty_by_nine_extra_large_d23d9a84-a9ab-4f45-a4c5-f0bfb2cf54dc.jpeg)
ICYMI --- InsurTech: Not Dead but Different
SUMMARY Some InsurTechs will struggle, and there will even be some fatalities, but the majority of InsurTechs are making the necessary adjustments and operating successfully
It is generally recognized by insurers and investors that InsurTechs, and the broader tech-enabled startup community, is and has been a highly valued contributor to innovation, employment and the economy overall. Today’s federal government intervention in the Silicon Valley Bank, who plan to make the SVB depositors whole, including startups, VCs and investors, is strong and encouraging evidence of that recognition. Despite this unnerving development, numerous InsurTechs have assured investors, employees and customers that the demise of SVB will have no direct impact.
To be clear, some InsurTechs will struggle, and there will even be some fatalities, but the majority of InsurTechs are making the necessary adjustments and operating successfully while basically sheltering in place and preparing for the next exciting phase in the evolution of this critical “movement” which is very much alive yet quite different.
Co-authored by Stephen Applebaum and Alan Demers
complete article available at link to InsurTech Consulting above
![GEICO slashes ad spend by nearly 40% in 2022](https://dxj7eshgz03ln.cloudfront.net/production/link/image/844754/twenty_by_nine_extra_large_f2677362-87d5-4b28-a5ac-03ce7146734d.jpeg)
GEICO slashes ad spend by nearly 40% in 2022
The four largest personal lines property and casualty insurers lowered their advertising spend in 2022, in part to offset the rising costs associated with elevated claims.
GEICO Corp. reported a year-over-year decrease of roughly 38% in total advertising expenditure during 2022, the highest among the Big 4 auto insurers, according to analysis of regulatory data by S&P Global Market Intelligence.
The Berkshire Hathaway Inc. company reported $1.28 billion in total advertising expenditures in 2022, roughly $800 million less than it spent in the prior year. The insurer's substantial decrease in ad spending allowed The Progressive Corp. to become the largest spender among the group in 2022.
![New Orleans Police Department taps civilians amid an officer shortage : NPR](https://dxj7eshgz03ln.cloudfront.net/production/link/image/845089/twenty_by_nine_extra_large_3e24ece2-7f99-4881-85fd-768076ff861c.jpg)
New Orleans Police Department taps civilians amid an officer shortage : NPR
Many police departments accept they may never get the number of officers they used to have. The New Orleans PD is "retooling" for a new reality that includes handing some duties to civilians.
During the George Floyd protests of 2020, many people called for the defunding of traditional police. That didn't happen, for the most part. But almost three years on, some police departments are shrinking anyway.
A new criminology study of 14 large police departments found most have had an "excess" loss of sworn, full-time officers since 2020, a trend verified in core-city agencies such as the New Orleans Police Department.
In 2010, NOPD had about 1,500 officers; a decade later, it was at about 1,200. Since 2020, the department is down by another 20% to 944. Despite doubled recruiting efforts, the department continues to shrink.
"Citizens still call 911, their call is still dispatched. However, it is dispatched to our agents," says Ethan Cheramie, founder of a company called On Scene Services (OSS). It employs unarmed, former police officers who go to the scenes of wrecks to take information and provide reports.
"Our agents respond in a timely, efficient manner, to let everybody get on with their day," Cheramie says. OSS has had two cars responding to crashes in New Orleans for the past five years, and with the worsening officer shortage, the city has just signed an expanded contract for seven OSS cars — enough, Cheramie figures, to free up the equivalent of 15 fulltime officers for other duties.
Has Insurance Become Too On-Demand?
The "customer-centric" concept isn't wrong, but anything “centric” requires a balance. Has the pendulum swung past the point of effectiveness?
Many new entrepreneurs or those in the gig economy consider on-demand insurance the greatest invention since sliced bread. And insurtech companies couldn’t be happier. Here’s why: In the wake of society relying more on smartphones, apps or other popular technologies, consumers now expect buying insurance to involve a similar user experience as when shopping on Amazon.
Thus, on-demand insurance was born when technology and insurance merged. Consumers can shop and purchase policies online without the help of an insurance broker or agent. For example, with only a few clicks on their smartphone, a new founder can acquire a general liability or an errors and omissions policy lickety-split.
Many insurtechs provide on-demand insurance in some form, like Thimble with its short-term policies for freelancers. Others, like Pie Insurance, narrow the scope by focusing on pay-as-you-go workers’ compensation coverage, while Metromile provides pay-as-you-go auto insurance.
Justin Kozak, EVP, Founder Shield
To the Moon and Back: Space Tourism and Insurance
Space tourism, or human space travel for recreational purposes, is in its early days. For insurers, this means it’s an emerging business that most aren’t ready to tackle yet.
Neil Stevens, senior vice president of aviation and space at Marsh, told Reuters in a June 2021 article that “the aviation, aircraft insurance market, and the like, are less keen to take on risks that involve spacecraft.” He added that whether space tourism trips fall under aviation or space insurance is a “million dollar question.”
While some insurance solutions are now in their early stages – travel insurance company Battleface is one company that has underwritten a space tourism product – many insurers are still hesitant.
However, Michelle Peters, director of research and education at space entertainment and tourism company Zero-G, has a solution for insurers who want to learn about this emerging area of risk: Take a flight with Zero-G.
The company says on its website that it aims to make the adventure of space accessible to the public. Its zero gravity flights, which take place on a modified Boeing 727-200 called G-FORCE ONE, offer individuals the opportunity to experience weightlessness without leaving earth through the use of a hydraulic system.
![Insurtech NEXT finds few small businesses using insurance](https://dxj7eshgz03ln.cloudfront.net/production/link/image/845092/twenty_by_nine_extra_large_98da4ce1-8360-492f-84f2-34ba548f2b90.jpeg)
Insurtech NEXT finds few small businesses using insurance
What is needed for a "dream insurtech" that appeals to underinsured small and medium sized business owners (SMBs)?
Insurtechs should aim to make it easier and more efficient to buy insurance, stated Richard Clarke, chief insurance officer at Colonial Surety. "If an insurtech put together digital explanations of coverages and easy-to-grasp claims examples – if you could use the technology so it would have relevance to a broad range of smaller types of businesses," he said, SMBs would find it easier to get insurance. Clarke added that he hasn't seen this happen yet.
"I don't know that insurtechs perceive that they can make money doing that, but that's certainly in the future," he said. "That's a definite possibility."
![Insurance Companies Are Quietly Fleeing California](https://dxj7eshgz03ln.cloudfront.net/production/link/image/845091/twenty_by_nine_extra_large_3c63d15a-1047-4c09-9d15-6352468b6222.jpeg)
Insurance Companies Are Quietly Fleeing California
The words “California” and “crisis” seem to go together as the state bounds from one intractable problem to another. The recent spate of flood-level storms in Northern California brought attention to the Golden State’s ailing levees. As an “atmospheric river” pummeled the low-lying Sacramento region, a nearly endless parade of trucks carrying rubble raced to shore up an aged system.
It would never dawn on the state’s political leadership to invest in infrastructure improvements before near-catastrophic failures stressed levees to the breaking point. Nor would it occur to them to invest in water infrastructure. Shortly before the storms, which brought nearly as much rain in three weeks as California had experienced in a year, the state was already facing another weather-related crisis: a mega-drought that led to water rationing. Such a problem had long been predicted, yet until recently the state didn’t move urgently to approve new desalination plants or improve infrastructure.
InsurTech/M&A/Finance💰/Collaboration
![UBS to buy Credit Suisse for more than $3 billion in deal backed by Swiss government](https://dxj7eshgz03ln.cloudfront.net/production/link/image/845190/twenty_by_nine_extra_large_4862a701-9a5e-459e-a892-a54150b39b0e.jpeg)
UBS to buy Credit Suisse for more than $3 billion in deal backed by Swiss government
Struggling Swiss banking giant Credit Suisse has agreed to be bought by its arch-rival UBS at a discount to Friday’s close price, after seeing a wave of customer deposits exit the bank.
The deal was announced by Switzerland’s president, Alain Berset, flanked by executives from both banks and the chairman of the Swiss National Bank.
“With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation,” the SNB said in a statement.
UBS, -5.50% will buy Credit Suisse CS, -6.94% for 3 billion francs ($3.25 billion), or 0.76 francs per share, in an all-stock deal, the bank announced. That compares to Credit Suisse’s CSGN, -8.01% closing price of 1.86 francs on Friday. The FT reported UBS initially bid just 0.25 francs per share.
UBS said it benefits from 25 billion francs of downside protection from the transaction to support marks, purchase price adjustments and restructuring costs, and additional 50% downside protection on non-core assets.
The deal does not need shareholder approval. The Swiss financial regulator said Credit Suisse’s AT1 securities, worth 16 billion francs, will be entirely written down.
“This is a commercial solution and not a bailout,” said Karin Keller-Sutter, the Swiss finance minister. “Bankruptcy would have been the highest risk.”
The Swiss National Bank said either UBS or Credit Suisse can borrow up to 100 billion francs in a liquidity assistance loan, and Credit Suisse can also receive a liquidity assistance loan of up to 100 billion francs. backed by a federal default guarantee.
The Federal Reserve has been working with its Swiss counterpart on the deal, as both banks have major operations in the U.S.
Aviva UK Renews Partnership with Majesco
The insurer seeks to improve underwriting profitability and risk mitigation tactics with Majesco Loss Control and GuideStream.
Aviva UK (London), the largest insurance, wealth, and retirement business in the United Kingdom, has renewed its partnership with Majesco (Morristown, N.J.), according to a statement from the vendor. Aviva UK currently uses Majesco Loss Control and Majesco GuideStream to drive intelligent insights and enhance loss control data collection.
Aviva UK’s diversified “One Aviva” model drives its competitive advantage and allows the company to serve customers across the full range of their needs building lifelong relationships. One Aviva provides synergies between business lines so they can easily deploy solutions across multiple segments.
The vendor statement notes that integrated loss control solutions provide intelligent data collection from anywhere in the world helping organizations retain customer trust and satisfaction. With Majesco Loss Control and Majesco GuideStream, the vendor adds, organizations can remotely take and identify photos, fill form answers, and make recommendations as if they were right on site. Majesco asserts that it digitally guides policyholders to easily collect critical information and optimize underwriting decisions.
Cover Whale Limits Losses with Dashcams
The InsurTech distributor of commercial auto insurance combines the cameras with massive amounts of data to more accurately price risk, but also to mitigate it in collaboration with policyholders.
InsurTech Age might be said to have begun with dragging insurance into the era of online customer engagement; and while first-rate CX remains a moving target, the most important innovation gains today are likely to be in two other areas: more sophisticated use of data for pricing and underwriting, and collaboration with policyholders to mitigate risk and avoid losses.
Cover Whale, a New York-based InsurTech MGA focused on commercial auto, is working on both of these fronts to differentiate itself in the market. Working from a starting point of deep insurance expertise, the company has built the capacity to digest vast amounts of data with the goal of providing accurate rates to better commercial drivers. It has also introduced the dash cam as a critical tool in a collaborative approach to risk management and loss control.
Otonomi partners with Greenlight Re Innovations to launching an innovative platform for parametric cargo insurance
Otonomi Announces Strategic Partnership with Greenlight Innovation Syndicate 3456 to act as a platform provider for an Innovative Parametric Cargo Insurance Program.
Otonomi is thrilled to announce the strategic partnership with Greenlight Innovation Syndicate 3456 to act as a platform provider for a Parametric Cargo Insurance Program. Otonomi powers the operating platform of the Parametric Cargo Insurance Program to help mitigate the $10 billion gap left by global supply chain delays across industries.
According to Yann Barbarroux, CEO of Otonomi: “The US economy is showing signs of disinflation, but the effects of the global reset have continued to be felt across the supply chain. At Otonomi, we are firming up our footprints in unchartered territories when it comes to providing a complete overhaul of the autonomous provision of insurance, in addressing the problems of an industry screaming for innovation. It’s an amazing opportunity for the logistics customers as they are leveraging aggressive tech and predictive analytics to recoup vital capital and protect their liability risks.”
![Relativity6 Launches AI-Powered Hazard Flags to Detect Risk in Commercial Insurance Submissions](https://dxj7eshgz03ln.cloudfront.net/production/link/image/844611/twenty_by_nine_extra_large_65cef541-61ad-4392-93b6-dc90cb12093f.jpg)
Relativity6 Launches AI-Powered Hazard Flags to Detect Risk in Commercial Insurance Submissions
Boston-based AI solutions provider Relativity6 has announced the release of its latest tool, Hazard Flags. The new product utilizes advanced machine learning algorithms to detect potential risks in commercial insurance submissions, helping insurers streamline their underwriting processes and make better-informed decisions about policies.
With Hazard Flags, insurers can quickly and accurately identify potential hazards and red flags in insurance submissions, allowing them to make more informed decisions about which policies to accept and which to reject. The technology works by analyzing large amounts of data from digital footprints in real-time.These risks are flagged for underwriters, who can review them and make more informed policy decisions.
The tool is a prime example of how artificial intelligence is transforming the industry, making it more efficient and effective. With the amount of data generated by insureds increasing every day, the ability to quickly and accurately assess risk is becoming increasingly important.
![Torch Introduces Low-Cost Comprehensive IoT and AI Solution for Early-Stage Outdoor Fire and Wildfire Detection](https://dxj7eshgz03ln.cloudfront.net/production/link/image/845285/twenty_by_nine_extra_large_a79df8e5-0b62-4704-86b4-460bdc34cdb5.jpg)
Torch Introduces Low-Cost Comprehensive IoT and AI Solution for Early-Stage Outdoor Fire and Wildfire Detection
Torch, a solutions provider for early-stage outdoor fire detection, today announced the launch and preorder availability of its low-cost comprehensive solution for early-stage outdoor fire and wildfire detection.
“One Torch sensor device has multiple infrared cameras, visible cameras, and gas sensors that continually monitor the environment and detect fires early, with high accuracy. Torch sensors detect outdoor fires the size of a car – usually even smaller – outside the line of sight when placed every 10 acres on a property.”
Torch provides solar-powered sensors that continuously monitor an outdoor area for any signs of fire and a free mobile app that immediately notifies users about fires not only on their property but also in the surrounding areas and communities. Each Torch device costs $299, provides up to 10 acres of coverage, and incorporates multiple sensors that measure visual, thermal and gas characteristics for the most comprehensive outdoor fire detection available.
Torch CEO and co-founder Michael Buckwald