InsurTech/M&A/Financeđź’°/Collaboration
Cytora Joins Google Cloud to Transform Insurance | InsurTech Digital
Cytora joins Google Cloud Marketplace to help insurers, MGAs and brokers automate risk processing and gain control over data Cytora, the AI risk digitisation platform for the insurance industry, today announced its availability on Google Cloud Marketplace, creating new opportunities for commercial insurers to transform their data processing capabilities.
The integration will allow commercial insurers, Managing General Agents (MGAs), reinsurers and brokers to automate risk processing functions, which can help create additional capacity, separate premium growth from expense growth and provide greater control over risk submission data.
Nirvana Insurance secures $80 million in Series C funding
AI-driven insurer valued at $850 million as it redefines risk profiles for commercial fleets
Underscoring the growing influence of AI in the insurance sector, AI-driven commercial trucking insurer Nirvana Insurance announced on Monday an $80 million Series C funding round. This latest round values the San Francisco-based company at nearly $850 million. The raise was led by General Catalyst, with continued support from existing investors Lightspeed Venture Partners and Valor Equity Partners.
“This funding round is a testament to the transformative power of AI in the insurance industry,” said Rushil Goel, CEO and co-founder of Nirvana Insurance. “We’re not just using technology to streamline processes; we’re fundamentally redefining how risk is assessed and managed in the commercial trucking sector.”
News
Howden close to finalizing $10 billion Risk Strategies deal
Binding agreement expected by the end of the month
Howden, the British insurance broker, is close to finalizing a $10 billion (ÂŁ7.7bn) acquisition of US-based Risk Strategies, a move that could set the stage for a stock market listing valuing the company at more than $30 billion (ÂŁ23.2 billion), according to a report from Sky News.
The acquisition would mark a significant step for Howden and its founder, David Howden (pictured), who has expressed interest in expanding into the US retail insurance market. A successful deal would position the company for a potential US stock market flotation within the next one to three years, with 2027 considered the most likely date.
AM Best highlights shifts in US P&C insurer ratings
A new report from AM Best, a credit rating agency specialising in the insurance industry, reveals that US property and casualty (P&C) insurer rating downgrades declined to 43 in 2024, down from 55 the previous year, despite persistent challenges in the personal lines sector.
The report, titled “US Property/Casualty: Rating Upgrades Up, Downgrades Down in 2024,” identifies inflation and rising reinsurance costs as ongoing pressures affecting the industry.
Most of the 2024 downgrades were linked to insurers with significant property exposure, reflecting increased catastrophe risks, more frequent secondary peril losses, and higher reinsurance costs and retentions.
Conversely, rating upgrades climbed to 42 in 2024, up from 35 in 2023. This growth was largely driven by the commercial lines segment, which recorded 34 upgrades against just 12 downgrades.
In comparison, the segment had 21 upgrades and 15 downgrades the previous year, demonstrating improved stability.
Allstate ordered to show bonus plans over storm damage claim refusal
A federal court has sided, at least in part, with a Louisiana homeowner in an ongoing insurance dispute, telling Allstate Insurance Company to turn over internal documents that may shed light on the company’s handling of a storm damage claim.
Reed Chenevert sued his homeowner’s insurer, Allstate, after his roof was damaged in a storm. He alleges that the company failed to honor his claim in good faith, asserting breach of contract and seeking penalties under Louisiana's bad faith statutes, specifically La. R.S. 22:1973 and La. R.S. 22:1892. These statutes allow policyholders to seek damages and penalties when an insurer acts arbitrarily or capriciously in denying or underpaying claims.
The discovery dispute
As part of the litigation, Chenevert sought internal documents from Allstate, particularly:
1.Bonus and incentive plans: Information about bonus or incentive programs for managerial staff and adjusters responsible for processing weather-related claims.
2.Adjuster evaluation procedures: Details about how adjusters were evaluated, including performance measurements.
3.Contractor price estimates: Materials and manuals regarding price estimates for contractors across Louisiana, from six months before the storm to the present.
Allstate resisted providing much of this information, raising objections that the requests were overly broad, vague, and unlikely to produce admissible evidence. The insurer argued that the demands for incentive plans and pricing documents extended far beyond what was relevant to Chenevert’s specific claim.
Research
Critical cloud service outages increase in 2024: Parametrix - Reinsurance News
According to Parametrix, a provider of digital business interruption risk solutions, critical cloud service disruptions among the top three public cloud providers rose by 18% in 2024, with the duration of these outages increasing by 18.7% compared to the previous year.
Parametrix’s Cloud Outage Risk Report 2024 highlights the growing risks associated with cloud infrastructure, as businesses continue to rely more heavily on these services.
The report reveals a concerning trend: six significant cloud outages in 2024 lasted more than 10 hours each, contributing to nearly 100 hours of total downtime.
While North America experienced the majority of these interruptions, other regions such as Europe and Asia were also impacted. Human error remained the leading cause of these outages, accounting for 68% of incidents in 2024, a substantial increase from 53% the previous year.
This growing reliance on cloud computing underscores the systemic risks that businesses now face, particularly as the demand for cloud services, fuelled by the rise of generative AI and other advanced technologies, accelerates.
People
Wilson Promoted to CEO of Markel Insurance; Vice Chair Markel to Retire
Markel Group said early Monday that Simon Wilson is the new chief executive officer of Markel Insurance.
Markel Insurance includes the company’s primary underwriting businesses of Markel Specialty, Markel International, and Markel Global Reinsurance. Wilson was president of Markel International.
The move is “part of a broader effort to sharpen the company’s customer focus by empowering each of their teams to serve the distinct needs of their respective markets,” Markel said in a statement.
Tom Gayner, CEO of Markel Group, said Richmond, Virginia-based Markel’s growth to a global specialty insurer, “brought new challenges and unnecessary complexity, as confirmed by our ongoing board-led business review.”
“At times, we unintentionally made it harder for our people to serve our customers,” Gaynor continued in a statement. “I’m confident in Simon’s vision for growing this fortress of an insurance business through teams that are focused on serving the customers and markets that they know best.”
Commentary/Opinion
Insurance industry faces 4 possible future scenarios
The insurance industry faces four possible future scenarios. Insurance executives are optimistic about the major trends influencing their industry, but remain aware of critical risks to their organization.
A panel of experts reviewed the findings of The Economist Impact research on the future of the industry during a recent webinar.
Those four possible scenarios are:
- Fractured resilience
- Digital harmony
- Adaptive alliance
- Stagnant turmoil
Two main drivers of change impact all of these scenarios: the pace of technological change and the level of global cooperation.
Insurance executives surveyed said market dynamics and artificial intelligence are the most significant trends that could shape the insurance sector in the coming decade, said Edwin Saliba, senior analyst with The Economist Impact. But executives also identified three emerging risks to the industry: climate change, cybersecurity and geopolitics.
Optimism over AI
Many leaders are aware of and optimistic about the use of artificial intelligence in the industry, the study revealed. AI’s cost-saving benefits held special appeal. Other top-ranked areas of focus that executives named as priorities over the next decade include:
- Minimizing underwriting and operating costs.
- Market expansion.
- Improved information sharing.
- Improved claim processing time.
- Improved product deployment time.
Closing the $1.8 trillion global protection gap is viewed as both an ethical responsibility and a business opportunity by the executives surveyed.
The survey found that industry leaders believe technology, innovation and engagement with regulators are effective strategies for addressing the public’s issues with lack of trust and product affordability. But none of these strategies seems to be widely embraced by insurers.
[Ed. Note: Highly Recommended] -- 3 Emerging Risks to Watch: Social Inflation, Electric Trucks, Virtual Currencies
The business environment is constantly evolving, with each new development and innovation offering a unique variety of potential risks and rewards. Broad, systemic challenges may sometimes create unexpected obstacles, while technological transitions and advancements can often create as many hurdles as they do opportunities.
The systemic implications of social inflation, in addition to the potential risks posed to businesses by the shift toward electric vehicles and virtual currencies, are three of the emerging risks we're focused on this quarter.
Lee Shavel is president and chief executive officer of Verisk, a data analytics and technology partner to the global insurance industry. He brings nearly 30 years of experience advising and leading publicly traded companies to Verisk.
AI in Insurance
Concirrus: If AI Is Good Enough for Government, It's Good Enough for Insurance
AI to Replace Civil Servants and Save ÂŁ45 Billion: What Does This Mean for Insurance?
The UK government is betting big on AI. Prime Minister Sir Keir Starmer has pledged to replace civil servants with artificial intelligence, calling the state "overcautious and flabby" and promising sweeping reforms. The goal? To cut inefficiencies and save taxpayers ÂŁ45 billion through automation.
With thousands of government jobs under review and AI well-suited for routine tasks, the civil service could unlock unprecedented efficiency - saving an estimated ÂŁ45 billion while empowering its workforce
Will the Government's use of AI legitimise its use in wider industry? Are their parallels within insurance?
The insurance industry faces the same challenges as a market that's burdened with time-consuming, manual data entry and administrative tasks. AI is poised to change that by automating these processes, allowing underwriters to focus on higher-value decisions, resulting in faster, more accurate quotes, better risk management and a more competitive insurance market.
Much like in government, AI can reduce operational costs in insurance by eliminating repetitive tasks such as keying (and re-keying) submissions, document analysis, and manual risk evaluations. By leveraging AI, insurers can significantly speed up the quote process, improve efficiency and lower premiums.
Rewriting the Underwriter job description
However, AI isn't replacing underwriters; it's redefining their roles. As Starmer put it, "No person's time should be spent on a task where AI can do it better, quicker, and to the same high quality."
Data Privacy
Honda Settles With California Privacy Protection Agency Over Violations - CollisionWeek
The California Privacy Protection Agency (CPPA) Board has issued a decision that requires American Honda Motor Co. to change its business practices and pay a $632,500 fine to resolve claims that the company violated the California Consumer Privacy Act (CCPA). The investigation arose from the Enforcement Division’s ongoing review of data privacy practices by connected vehicle manufacturers and related technologies
The CPPA’s Enforcement Division alleged that Honda violated Californians’ privacy rights by:
- requiring Californians to verify themselves and provide excessive personal information to exercise certain privacy rights, such as the right to opt-out of sale or sharing and the right to limit;
- using an online privacy management tool that failed to offer Californians their privacy choices in a symmetrical or equal way; making it difficult for Californians to authorize other individuals or organizations (known as “authorized agents”) to exercise their privacy rights; and
- sharing consumers’ personal information with ad tech companies without producing contracts that contain the necessary terms to protect privacy.
{MORE](https://collisionweek.com/2025/03/17/honda-settles-california-privacy-protection-agency-violations/)
Recommended Events
ClimateTech Connect April 15-16, 2025| Washington, DC
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Global Recycling Day
Global Recycling Day - March18, 2025
This day aims to recognise and celebrate the importance of recycling in preserving resources and securing a sustainable future for our planet.
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