Commentary/Opinion
A Customer Service Horror Story | Insurance Thought Leadership
As insurers continue to focus on improving the customer experience, here's how NOT to handle service while integrating chatbots.
Because I'm in the midst of moving from California to the East Coast to be nearer to my daughters and my siblings, I've been canceling service with various companies. One handled a question horribly — and I think offers lessons for insurers, both in general terms and in terms of how they integrate chatbots into their service operations.
So I'll tell the story here, then suggest an exercise that can keep executives from falling into the most common traps.
Because my problem wasn't with an insurance company — Xfinity is the villain here — I don't even need to pretend to be polite.
Here goes........ CONTINUE
Paul Carroll, editor-in-chief, Insurance Thought Leadership...... (and The Jack Kerouac of Insurance on his cross-country journey)
At RIMS, Sedgwick Experts Outline Key Workers’ Comp Claims Trends
At last week’s RIMS RISKWORLD conference in Chicago, two experts from risk and claims administration partner Sedgwick outlined a few key workers’ compensation trends worth paying attention to today.*
The topics were based on Sedgwick data and primarily related to the medical arena within the workers’ comp space.
(Re)defining Empathy in Insurance | Insurance Thought Leadership
Empathy is much desired in the insurance industry, but little understood. It needs to be redefined in this era of exponential gains in technology.
The expression “empathy in insurance” is as abused and misunderstood as “innovation in insurance.” The underlying intent and value of both are important but vague. They are also contradictory at times and often misapplied by industry practitioners.
Insurance innovation began to emerge with the insurtech wave roughly a decade ago. Insurance carriers added “innovation” in job titles, opened “labs” and launched corporate venture funds attracted by the prospects of modernizing insurance. Despite these advances, outsiders and many insurance insiders appropriately viewed “insurance innovation” as an oxymoron, challenging the notion that the industry is or can be legitimately innovative. This was most evident when sincere expressions of cheerleading for true breakthroughs evoked gushing terms like “transformational,” “revolutionary” and “game-changing.”
The same can be said about the debate over empathy in insurance, including empathy in claims. Escalating this debate is the introduction of conversational AI, emergence of generative AI and opposing views on just where and how far to apply these in insurance. A popular explanation from insurance executives is that artificial intelligence should have boundaries to certain functions or in replacing people. Rather, they advocate equipping people to perform better in their jobs by automating repetitive, menial tasks so people can concentrate on more valued work. Connecting information in new ways, faster, better and cheaper while keeping humans in the loop is the popular current thinking. After all, insurance is considered a relationship business.
Alan Demers and Stephen Applebaum
Are insurers ready for an aging population + urbanization? - Capgemini
4 key strategies to address the changing risks
In brief
- Aging and urbanization are concentrating risk, requiring new underwriting and pricing models
- Ownership is evolving, pushing insurers toward flexible, modular coverage.
- Customers want proactive protection, not just payouts — ecosystem partnerships are key.
The age demographics of the global population are shifting faster than ever before — and property and casualty (P&C) insurers must be ready. According to Capgemini’s World P&C Insurance Report 2025, The world population is projected to reach 9.66 billion by 2050, up from 8.16 billion today — effectively adding another China to the planet.
But beneath this headline growth lies a deeper disruption: The structure of that population is transforming. The global dependency ratio — the proportion of seniors (aged 65+) compared to working-age individuals — is growing. By 2050, for every 100 working-age people, there will be 26 seniors to support, up from 16 today — a 63% increase. And in most regions outside of Africa, the imbalance intensifies, approaching nearly one dependent for every three workers.
At the same time, the world is becoming more urban. Nearly 70% of the global population will live in cities by 2050, concentrating people, and the risks they carry, into denser, more complex environments.
Research
FT Partners Publishes Q1 2025 FinTech Insights – Record Level of M&A and 50% Y-o-Y Increase in Financing Dollar Volume
Q1 2025 was certainly not quiet or business as usual. FinTech M&A came roaring back, capital raising activity significantly picked up compared to the first quarter of last year, and several prominent FinTech companies lined up to go public, all amidst initial rumblings ahead of tumultuous global public markets in early Q2.
Key Highlights:
- Private company financing volume totaled nearly $14 billion, growing 50% year-over-year, boosted by crypto exchange Binance's announcement of a $2 billion investment from MGX, marking the largest crypto financing deal ever.
- Early-stage activity continued at a strong pace in Q1, with median round sizes growing over 2024 levels across Seed, Series A and Series B.
- Quarterly M&A deal count hit a record level in Q1, with 437 transactions and $56 billion in volume driven by pent-up strategic demand – more than 90% of acquisitions were by strategic buyers.
- All eyes were on Klarna and eToro, both of which filed for US IPOs in March, as the industry eagerly awaited the next big FinTech IPO. Both companies ultimately decided to delay during the market volatility in the first week of April.
Report: 2025 insurance trends to monitor: Q2 2025 Personal Lines Trends and Perspectives |TransUnion®
The auto market softens as property grapples with natural disasters
Our Q2 2025 Personal Lines Trends and Perspectives report reveals two diverging paths: Auto insurance profitability is stabilizing, while homeowners insurance remains pressured by rising costs and climate losses.
Download your copy for exclusive insights that can help you better navigate evolving market conditions.
Specific findings include:
- Auto insurance shopping rose 10% year over year, with Northeast consumers leading activity
- Homeowners carriers are targeting high-risk policies as premiums still lag behind losses
- Multigenerational households are reshaping coverage needs and consumer expectations
Then, when you’re ready to speak to a TransUnion® insurance solutions expert, contact us here
InsurTech/M&A/Financeđź’°/Collaboration
Aviva's $4.9 billion Direct Line deal faces UK competition probe | Reuters
Aviva's (AV.L), opens new tab bid to become Britain's largest home and motor insurer via a 3.7 billion pound ($4.92 billion) takeover of smaller rival Direct Line (DLGD.L), opens new tab suffered a potential snag on Wednesday, after Britain's antitrust watchdog said it would review the deal.
The Competition and Markets Authority (CMA) said it was considering whether the transaction could result in a substantial lessening of competition and has invited feedback from interested parties by May 29.
Aviva shares, which have risen 22% this year so far and hit a fresh 12-month high on May 12, were broadly unchanged in early trading on Wednesday.
Aviva and Direct Line struck the landmark agreement in December to create one of London's largest listed insurers, rivalling Legal & General (LGEN.L), opens new tab and Asia-focused Prudential (PRU.L), opens new tab in terms of market value. The deal reflects Aviva's aims to grow in less capital intensive businesses and to consolidate in core markets of Britain, Canada and Ireland.
Classiq Raises $110 Million in Record Quantum Software Round | Insurance Innovation Reporter
The Series C investment, which brings Classiq’s total funding to $173 million, marks the largest funding to date in quantum software.
Classiq (Tel Aviv, Israel) has announced it has raised $110 million in Series C funding, the largest amount ever secured by a quantum software company. The round is led by Entrée Capital (Tel Aviv), with participation from Norwest, NightDragon, funds managed by Hamilton Lane (Nasdaq: HLNE), Clal, Neva SGR, Phoenix, Team8, IN Venture, Wing, HSBC, Samsung Next, QBeat, and other new and existing investors.
The investment brings Classiq’s total funding to $173 million. The company plans to scale its go-to-market, customer success, and R&D teams while expanding its global footprint to support national quantum initiatives and enterprise adoption.
“We are building the Microsoft of quantum computing,” says Nir Minerbi, co-founder and CEO, Classiq. “In this new era of computing, Classiq is delivering the essential software stack to empower the development of real-world quantum applications.”
🌎 RAVIN AI is expanding in Brazil, with StartupBR!
We’re proud to join their portfolio of innovative companies transforming big ideas into real-world, positive impact.
With StartupBR supporting our distribution efforts, we’re accelerating growth across South America.
Top insurtech funding rounds, April 2025 | Digital Insurance
There were about 53 funding events in the insurtech sector between April 1 and April 30, 2025, according to a review by Digital Insurance. What follows is a selection of these, focusing on those in the insurtech and property & casualty sectors that are part of the venture-capital financing model. (Other funding events, such as private-equity infusions, are included in the overall count.)
A portion of the data was sourced from Crunchbase. Other information, including quotes from investing VCs, comes from company announcements. For our previous edition, which covered the month of March, click here These updates will continue monthly.
Recommended Events
June 5 CIECA Webinar: AI in the Customer Experience
The next CIECA Webinar will be held on Thursday, June 5 at 11 am PDT/1 pm CDT/2 pm EDT: “AI in the Customer Experience."
The one-hour live broadcast will feature Abhijeet Gulati, Senior Director of Artificial Intelligence and Machine Learning Engineering at Mitchell, an Enlyte company, and Gaurav (Rav) Mendiratta, CEO of Socio Squares, an AI software development and online marketing firm, and the Chief Product Officer at Propel, an Saas company that enhances small business.
During the free webinar, Gulati and Mendiratta will share insight on the following:
- The fundamentals of Generative AI and large language models (LLMs), including ChatGPT,
- How artificial intelligence (AI) is currently being used in the collision industry, including recent advancements,
- Leveraging AI to enhance the customer experience throughout the claims process,
- The key requirements for regulatory compliance and risk management when developing AI-powered systems, and
- Future implications for Artificial General Intelligence (AGI) and superintelligence.
Register for the June 5 CIECA Webinar
Stacey Phillips Ronak, Communications and Marketing Director, CIECA
Cyber Risk
Insurer Coalition Saw Costs From Business Email Compromise Rise in 2024
Roughly one-in-six claims handled by cyber insurer Coalition were from business email compromise, and about a third included funds transfer fraud.
In its 2025 Cyber Claims Report, Coalition said claims severity involving business email compromise rose 23% in 2024, with an average claims cost of $35,000.
Nearly 30% of BEC claims involved funds transfer fraud. These claims had an average initial loss amount of $185,000, but Coalition said it—working with authorities and other partners—were able to claw back $31 million for policyholders. About a quarter of claims had at least a partial recovery. Coalition said policyholders that quickly report FTF events have a greater likelihood of recovery.
BEC claims severity in the US was higher ($36,000) than the global average. There average for both Canada and the U.K. were $22,000.
“The spike in BEC severity was, in part, driven by increased prices related to legal expenses, incident response firms, data mining, notifications, and other mitigation and recovery efforts,” Coalition stated in the report.