News
Elon Musk's latest insurance move could be the start of something big
One small step for Tesla, one giant leap for insurance?
It’s always been an interesting question - if car makers make self-driving software, then shouldn’t they be liable for any faults in that software that allow their vehicles to crash? Barring third parties, the liability should be quite clear.
And that is why there has been a slew of automaker-based initiatives to start at least the appearance of offering insurance.
Volvo, for example ran a promotion with an insurance broker claiming that Volvos should be cheaper to insure, and implemented an all-in-one subscription for their vehicles. Ford started data sharing data with Allstate, and then Elon Musk’s Tesla announced that it was to offer its own insurance, soon to be a substantial part of the carmaker’s business.
“Obviously, insurance is substantial. So, insurance could very well be, I don’t know, 30%, 40% of the value of the car business, frankly,” Musk said at the time.
And now, the high-profile EV maker has taken a significant step in its auto insurance venture by shifting to self-underwriting in California, marking the first time the company will fully manage its own policies since launching Tesla Insurance in 2019. Previously, Tesla partnered with State National, a subsidiary of Markel Insurance Group, to underwrite policies. Now, the electric vehicle manufacturer is bringing this process in-house, beginning with its home state.
Turns Out AI Is More Empathetic Than Allstate’s Insurance Reps - WSJ
Allstate said a large number of emails sent to customers are now generated by AI, which are overall more empathetic and less accusatory than human-written ones
Allstate’s 15,000 insurance reps send out about 50,000 communications a day with people that have claims, either trying to get more information or negotiating a settlement amount. Allstate’s 15,000 insurance reps send out about 50,000 communications a day with people that have claims, either trying to get more information or negotiating a settlement amount.
Allstate is discovering soul-less generative AI models, made up of entirely data and code, are more empathetic than a lot of its human representatives.
The insurer said that during the often frustrating back and forth between customers and claims reps after a claim is filed, nearly all of the Allstate emails are now generated by AI – and that as a result they are less accusatory and jargony and more empathetic. Allstate is using OpenAI’s GPT models and grounding them in company-specific terminology.
“When these emails used to go out, even though we had standards and so on, they would include a lot of insurance jargon. They weren’t very empathetic…Claims agents would get frustrated, and so it wasn’t necessarily great communication” said Allstate Chief Information Officer Zulfi Jeevanjee.
Allstate’s 15,000 insurance reps send out about 50,000 communications a day with people that have claims, either trying to get more information or negotiating a settlement amount, Jeevanjee said. Now almost all of them are written by AI. “The claim agent still looks at them just to make sure they’re accurate, but they’re not writing them anymore,” he said.
Customer service has emerged as an early generative AI use case as companies look to automate the delivery of relevant, personalized responses to the flood of customer inquiries. Insurance in particular can require significant back and forth between a rep and a customer to resolve any given claim, and the complicated, often opaque requirements to do so can make those encounters frustrating.
Los Angeles Wildfires
Commissioner Lara takes action to ensure FAIR Plan can continue paying consumer claims after the Southern California wildfires
Ordering the insurance companies’ FAIR Plan to continue swiftly paying claims to Southern California wildfire survivors, Insurance Commissioner Ricardo Lara today took action to maintain its solid financial footing.
The FAIR Plan, an insurance safety net that the state requires insurance companies to operate, requested the Commissioner’s approval for $1 billion in additional funds from its member companies and also released detailed data about its claims paid to wildfire survivors.
Pursuant to statute, Commissioner Lara approved the FAIR Plan’s request — known as an “assessment” — for the funding necessary to continue meeting its obligations to Californians. Commissioner Lara’s action is consistent with his Sustainable Insurance Strategy and FAIR Plan modernization order, issued last summer, which established conditions to protect FAIR Plan policyholders and uphold the integrity of the state’s insurance market.
Key actions include:
- Directing the FAIR Plan to hire additional staff needed to process and pay claims fairly, fully, and quickly.
- Requiring the FAIR Plan to utilize all available funds, including reserves and reinsurance funds.
- Protecting consumers from bearing the full cost of an assessment, with insurance companies responsible for half the assessment under an agreement reached last year. Subject to the Commissioner’s prior approval under Proposition 103, insurance companies may issue a temporary supplemental fee as a percentage of the policy premium and cannot pass assessment costs on to consumers in future rates.
- Maintaining a healthy FAIR Plan reserve fund for future claims as the summer wildfire season approaches.
- Requiring the FAIR Plan to comply with all laws applicable to other insurance companies, including advance payments for living expenses and personal property without the need for an inventory.
InsurTech/M&A/Finance💰/Collaboration
Thomson Reuters Announces New $150M Corporate Venture Capital Fund
Thomson Reuters (NYSE/TSX: TRI), a global content and technology company, today announced the launch of its second Corporate Venture Capital Fund, valued at $150 million. Building on the success of its first $100 million fund, launched in 2021, Fund 2 reaffirms the company’s commitment to driving innovation and delivering customer value.
Continuing to operate under the name Thomson Reuters Ventures, Fund 2 will focus on early-stage technology companies across Legal Technology, Tax & Accounting, Fintech, Risk Fraud & Compliance, and News & Media markets.
Thomson Reuters Ventures will continue to invest in companies shaping the future of professional work, aligning emerging technologies with the company’s mission to bring its customers products that empower informed decisions and efficient workflows.
Doubling Down on Innovation
“Thomson Reuters Ventures is a pivotal component of the company’s ‘Build, Partner, Buy’ strategy. Fund 2 underscores our commitment to maintaining a leadership position by investing in innovative companies that align with our strategic focus,” said Tamara Steffens, Managing Director, Thomson Reuters Ventures. “Through this larger fund, we’re expanding our ability to identify and support companies at the forefront of change.”
Self Inspection raises $3M for its AI-powered vehicle inspections | TechCrunch
[Ed.Note: Investor DVx Ventures is run by highly successful serial automotive insurance and aftermarket technology entrepreneur and former Tesla president Jon McNeill].
A number of startups are racing to make vehicle inspections faster, easier, and cheaper. Self Inspection, a startup based in San Diego, thinks it has them all beat with its AI-powered service — and now it has convinced outside investors.
Self Inspection, founded in 2021, is set to announce Thursday it’s raised $3 million in seed round co-led by Costanoa Ventures and DVx Ventures, the firm run by former Tesla president Jon McNeill. Joining the round was Westlake Financial, which handles more than one million vehicle transactions annually
Karim Bousta, partner at DVx Ventures, believes the traditional vehicle inspection process is ripe for innovation. Self Inspection’s technology “not only streamlines operations for auto lenders, dealerships and rental companies, but also sets a new benchmark for quality, reliability and a seamless digital experience in the $30 billion vehicle inspection market,” Bousta said in a statement
Claims
Momnt and Your Virtual Adjuster Join Forces to Bridge the Gap in Roofing Claims | Business Wire
Momnt, a leading fintech company specializing in real-time lending and payment solutions, has partnered with Your Virtual Adjuster, an innovative claims management platform for roofers, to empower roofing contractors with a comprehensive solution for navigating insurance claims and closing more deals.
“By combining our financing options with Your Virtual Adjuster's expertise in insurance claims, we're enabling homeowners to get their roofs repaired quickly and affordably, even when faced with unexpected costs.”
This partnership addresses a critical challenge for roofing contractors: reaching a wider customer base by offering a complete solution that includes both insurance claims management and flexible financing options. With the rising costs of materials and labor, homeowners often face significant out-of-pocket expenses after their insurance claims are processed. This partnership allows roofers to offer a more attractive and comprehensive solution, increasing their competitiveness.
“We’re empowering roofers to win more jobs and provide a complete solution to their customers,” said Adam Goodman, Vice President of Partnerships at Momnt. “By combining our financing options with Your Virtual Adjuster's expertise in insurance claims, we're enabling homeowners to get their roofs repaired quickly and affordably, even when faced with unexpected costs.”
Roofers can now increase deal closure rates, expand their customer base, improve customer satisfaction, and streamline operations.
Payments
Duck Creek Launches Payments Marketplace and New Integration with Paymentus
The new, end-to-end marketplace reduces payment integration from 18 months to two weeks.
Duck Creek Technologies, a provider of core technology and a range of SaaS solutions to the property and casualty and general insurance industries, has announced the launch of its Payments Marketplace, a comprehensive payments ecosystem purpose-built for the global insurance industry.
The Duck Creek Payments Marketplace offers seamless integration with trusted payment providers and delivers end-to-end payment management for carriers, according to a statement from the vendor. Duck Creek has also announced a partnership with Paymentus (Charlotte, N.C.), a major provider of digital payment solutions to Duck Creek’s marketplace for ease of integration.
“This partnership brings billions in payment volume to the Payments Marketplace,” the Duck Creek statement says. “Together, Duck Creek and Paymentus will serve several global Top 10 insurance carriers as well as large regional insurers as customers.”
AI in Insurance
Neutrinos Introduces Agentic AI Composer, Powering Enterprise-wide AI Transformation for Insurance
Neutrinos, a leading technology company that powers intelligent automation for enterprises, today unveiled its AI Agent Compose, designed to help insurers build and deploy AI agents that assist in decision-making, automate complex tasks, and collaborate with human teams. Neutrinos believes the time is now for insurance organizations to move beyond rigid chatbots and fragmented systems, and accelerate automation by embracing autonomous, context-aware agents that learn and adapt in real-time.
Using an AI-led intuitive visual composer, business users can set up rules, data pipelines, and agentic workflows through an AI-led intuitive visual composer without requiring deep technical expertise. These AI agents can be deployed across business workflows, end-user automation, employee support, endpoint orchestration, incident and service requests, and case management. According to a recent Gartner study, by 2028, 33% of enterprise software applications will include agentic AI, up from less than 1% in 2024, enabling 15% of day-to-day work decisions to be made autonomously.
Neutrinos combines domain-specific LLMs and intelligent automation capabilities to empower insurers to rapidly design and deploy agentic AI capabilities. For insurers seeking oversight, Neutrinos AI agents can operate in a supervised "co-pilot" mode, requiring minimal human input to approve critical actions. For enterprises ready to move further, agents can switch to fully autonomous mode - tackling tasks with minimal human oversight.
"Agentic AI is gaining momentum, with industry leaders investing in advancing automation for greater productivity and improved customer experience," said Suresh Chandrasekharan, Co-founder & Chief Technology Officer at Neutrinos. "We are bringing AI to accelerate automation in real-world insurance use cases such as claims management, underwriting, and customer interactions, and are automating entire end-to-end processes and orchestrating workflows seamlessly for faster and more accurate service.".
SunCar Technology Group Integrates DeepSeek AI, Revolutionizing Automotive Service Intelligence
SunCar Technology Group Inc. ("SunCar" or the "Company") (Nasdaq: SDA), an innovative leader in cloud-based B2B auto services and auto e-insurance in China, today announced the full integration of DeepSeek artificial intelligence technology into its proprietary cloud-based service platform and car insurance SaaS solutions. This strategic implementation marks a significant advancement in the Company's AI-driven strategy and initiatives revolutionizing the automotive service industry through enhanced intelligence and efficiency.
The integration of DeepSeek's AI capabilities transforms traditional automotive services by introducing powerful intelligent analytics and personalized solutions. In the car insurance sector, DeepSeek's algorithms help SunCar analyze SunCar's vast amounts of vehicle and insurance data to provide precise risk profiling and tailored insurance recommendations to SunCar's end customers, significantly improving the efficiency and accuracy of insurance package matching.
"This integration represents a transformative step in our commitment to technological innovation and service excellence," stated Ye Zaichang, Chairman and CEO of SunCar. "By leveraging DeepSeek's powerful general intelligence and reasoning capabilities, we are not just improving our services – we are reimagining the entire automotive service experience while significantly reducing operational costs for us, our enterprise clients, and our end customers."
The implementation of DeepSeek across SunCar's platforms delivers several key advantages:
- Enhanced insurance recommendation precision through advanced risk profiling and customer need analysis
- Improved scheduling efficiency of automotive services with real-time monitoring and maintenance alerts
- Sophisticated user behavior analysis enabling highly personalized service delivery
- Cost-effective AI implementation through its proprietary cloud-based service platform
- Robust data security measures ensuring enterprise-grade protection2B auto services
Announcements
BrightShore Insurance Company Launches, Offering Comprehensive Homeowners Insurance with Built-in Flood Protection
BrightShore Insurance Company “BrightShore” has announced its launch in New Jersey, offering a solution to coastal homeowners' insurance needs. Addressing the common issue of inadequate flood coverage, BrightShore provides a single policy that combines comprehensive traditional homeowners insurance with full flood protection.
Managed by the experienced team at ShoreOne Insurance Managers, BrightShore, has been assigned a Financial Stability Rating® of A, Exceptional, by Demotech, Inc. BrightShore builds on ShoreOne’s innovative approach—offering a single policy that integrates traditional homeowners insurance with full limits flood protection. This combined coverage provides an alternative for millions of National Flood Insurance Program (NFIP) policyholders who lack sufficient flood protection. It also simplifies the process for homeowners who do not currently have flood insurance, making it easier to obtain comprehensive coverage.
“Demotech is proud to leverage our experience and capabilities to identify financially stable insurers to assist consumers in coastal New Jersey secure the coverage that they need,” said Joseph L. Petrelli, Co-Founder and President of Demotech. “For four decades, Demotech has been the trusted financial analysis firm for independent insurers who serve challenging regions. We are excited to see ShoreOne and BrightShore bring their substantial expertise and experience to this market.”
Using advanced risk-modeling, BrightShore delivers one of the most sophisticated homeowners insurance policies available. Its segmented pricing system considers geospatial factors and individual risk characteristics, an approach that has earned backing from some of the world’s largest reinsurers, with combined assets exceeding $90 billion. In addition, BrightShore’s thorough inspections ensure accurate policyholder information, verify adequate coverage, and help identify potential hazards that homeowners should address.
"With flood risk rising and underinsurance prevalent, BrightShore is launching in New Jersey to meet the demand of coverage-conscious homeowners," said CEO Nick Steffey. “This compelling opportunity positions us well to continue capturing significant market share in the profitable sectors of the evolving property insurance market."
Recommended Events
InsurTech Hartford Symposium April 29th & 30th
April 29th & 30th
Connecticut Convention Center
The InsurTech Hartford Symposium is a highly immersive conference experience that brings together great minds and world-class leaders offering the perfect ecosystem to Learn, Connect, and Unwind.
The InsurTech Hartford Symposium is in its fifth year and back in Downtown Hartford. People in the region are getting excited to have the event return to their backyard, and people from out of state are happy for us to be closer to transportation hubs such as high-speed trains and BDL airport. REGISTER
Pre-Day Event ; EmpowerHER, April 28th & 29th Join us for the Inaugural Insurance Thought leadership Event This one-of-a-kind gathering designed to celebrate and empower women and allies in the InsurTech industry. Partnering with the InsurTech Hartford Symposium, we’re offering this exclusive pre-event to maximize your experience in Connecticut and provide you with opportunities to connect, learn, and grow.
This in-person event is dedicated to inspiration, connection, and celebration—a chance to engage with thought leaders, gain career-boosting insights, and foster meaningful relationships that will propel your career in insurance and technology. REGISTER
InsurTech Consulting, LLC and ‘Connected’ newsletter are proud supporters of InsurTech Hartford Symposium and EmpowerHER, available to assist with sponsorship opportunities. Please contact alan@insurtechconsult.com
Podcast
The Role of Technology in Catastrophe Response and Claims with Alan Demers - Insurtechs.io Podcast
It was a pleasure talking with Jeff Shi on the state of P&C insurance and where insurtech is heading. Emphasis on insurer's abilities to control loss costs, profitability and rates and the ever growing protection gap are top pf mind.
The role of Technology in Catastrophe response and claims with Alan Demers. I love interviewing people who dedicated a long career to the insurance industry, grew within our community the last few decades. Be able to tell stories on how technologies has evolved over the years. Thank you for joining us Alan! - Jeff Shi
Podcast Sponsor
Audio Version - 'Connected: The Podcast' --- Sponsored by Pulse Podcasts
Co-curated by Alan Demers and Stephen Applebaum, The Connected Podcast is a condensed audio version of the day's ‘Connected' newsletter, a daily scan of all the happenings in the world of Insurance & InsurTech News.
Pulse Podcasts: Introduce a new way for your audience to hear your voice! We are a podcast creation service that helps businesses turn their written content, like blog posts and news articles, into beautiful podcasts. Our platform writes the script, records the voices, and mixes the audio to create engaging content for your audience. It's affordable and has super-fast turnaround!
LISTEN AND SUBSCRIBE BELOW