Commentary/Opinion
Data-Driven Safety Solutions Emerge as Answer to Commercial Auto Insurance Crisis
As repair costs and dangerous driving behaviors push premiums higher, monitoring programs demonstrate significant reductions in violations and claims severity, reports SambaSafety.
Rising insurance premiums, complex vehicle technology, and persistent driver safety challenges are reshaping the commercial auto industry, forcing insurers and fleet operators to adopt data-driven approaches to contain costs and improve safety outcomes, according to a report from SambaSafety.
Insurance rates have become a major inflation driver, with 2025 auto insurance prices as of February 2025 rising 11.1% year-over-year, significantly outpacing the overall Consumer Price Index increase of 3.1% during the same period, the report noted.
This surge in insurance costs is largely attributable to the growing complexity of modern vehicles equipped with Advanced Driver Assistance Systems (ADAS), which has fundamentally altered repair economics. The average number of replacement parts in a repair job has increased 15% over five years, now comprising over half of total repair costs, according to the report.
Labor rates for auto repairs have steadily climbed to $66.50 per hour in 2024 from $53.51 in 2020, with diagnostics and specialized labor contributing significantly to rising costs. Even minor collisions now require recalibration of sensors and camera systems, dramatically increasing repair complexity and expense.
News
Progressive is just a quarter or two away from becoming the No. 1 U.S. auto insurer, ending decades of dominance by the insurance giant State Farm.
As reported on LinkedIn by Varada Bhat , Senior Correspondent, P&C Specialist at Financial Times
At the end of Q1, the premium gap between the two was down to $661 million — a sharp drop from $1.9 billion just two years ago, according to S&P Capital IQ Pro.
📈 Progressive’s momentum is hard to ignore:
- Q1 premium growth: 20.2% YoY vs. State Farm’s 5.2%
- April private-passenger auto premiums: $5.75B
- YTD total: $23.29B (20% YoY growth)
Full story here 👉 MAY REQUIRE SUBSRIPTION or message Varada Bhat at LinkedIn if you want to read this.
Historic Number of Tornadoes Wreak Havoc in the U.S.Historic Number of Tornadoes Wreak Havoc in the U.S.
2024 saw the second-highest amount of tornadoes on record and 2025 is predicted to continue above-average activity. One weekend alone in mid-May caused $9 billion-$11 billion in damage.
There were 1,796 confirmed tornadoes in 2024, the second-highest annual count on record, according to the National Oceanic and Atmospheric Administration's (NOAA) Storm Prediction Center (SPC).
2024 saw an active April and May in the Plains region, with a total of 185 tropical cyclone tornadoes. There were a remarkable six EF3 tropical cyclone tornadoes from four different storms. Previously, there had only been 5 EF3 tornadoes in the 29-year history of the tropical cyclone tornado database, the SPC notes.
Six states set new tornado records in 2024: Illinois, Iowa, New York, Ohio, Oklahoma and West Virginia.
AI in Insurance
Promise, Potential: AI Pre-Scan Products Finally Starting to Show Up in Body Shops - Autobody News
AI pre-scan makers say the technology captures collision repair clients while speeding up intake and pre-estimates.
Artificial intelligence-based pre-scan product makers are pushing farther into collision repair. Companies have talked it up for years but focused on insurance company use and mechanical shops, often at dealer groups, or a few big fish clients. That’s changing.
Israeli late-stage start-up UVeye has some $390 million in debt and equity backing, including from carmakers. Hertz will use its hardware; Amazon was already onboard. It’s in 500 sites in North America, including 300 at auto dealers, and wants more body shops.
UK-based Tractable since July has been adopted by shops and MSOs in Canada with 35 locations using its software. The company’s approach differs from UVeye, and it has worked with insurance, operations software makers, and auto parts providers. Crunchbase said it’s raised $185 million, including from SoftBank.
Norway-based Wenn is coming to America with, like UVeye, a hardware system. It’s initially aimed at parking and rental car layouts at airports. It, too, wants to talk with collision industry operators, its CEO said. Wenn collaborates with Tractable on some work.
BayWatch Technologies in Utah has fresh funding and a hardware price it thinks pencils-out better for more shop owners. An ex-Toyota exec is a public face of the firm, founded by tech-tinkering college students; the exec said it’s nearing a deal with an MSO of about a dozen units.
All in, at least a dozen firms, including several overseas, have worked on AI-based scan tools, though it’s not known how many will try for body shops. Companies doing scan-related work, such as Kinetic Automation in California—focused on the other AI bookend, post-repair calibration—and Solera are adjacently active.
The Next Era of Insurance Operations | Insurance Thought Leadership
In today's fast-paced digital landscape, insurance carriers stand at a crossroads. Traditional operations—burdened by siloed systems and manual workflows—are no longer sustainable. Outdated models not only slow decision-making but also erode customer trust and inflate operational costs. The path forward is clear: Embrace intelligent, AI-driven operations that cut through complexity, deliver real-time insights, and elevate both efficiency and experience.
INTELLIGENT OPERATIONS: THE STRATEGIC ADVANTAGE
Intelligent operations are not just a tech trend— they are the new foundation for competitive advantage. By leveraging agentic AI, machine learning, and real-time analytics, insurers can automate decision-making, streamline processes, and hyper-personalize customer interactions. Agentic AI, in particular, represents a breakthrough: autonomous, purpose-driven agents that learn, adapt, and act independently to deliver outcomes at scale. According to McKinsey, insurers implementing AI are achieving up to a 25% reduction in operational costs and a 25% boost in customer satisfaction—a leap in both efficiency and impact.
THE TIME FOR TRANSFORMATION IS NOW
The urgency to act has never been greater. Customer expectations have shifted—demanding instant, seamless, and personalized service across every channel. Legacy systems and fragmented processes simply can't keep up. Meanwhile, insurtech disruptors and digital-native competitors are setting a new bar for agility and innovation. To stay relevant, traditional carriers must reimagine their operations through the lens of intelligent automation. Those that move now will lead the future of insurance. Those that don't risk being left behind.
Lawrence Krasner is an associate partner, financial services: insurance strategy and transformation, at IBM.
Research
Global premium trends reflect evolving risk and protection needs – Allianz
The global insurance sector recorded an estimated growth of +8.6% in 2024, according to Allianz Research’s newly released report.
The figure marks a second consecutive year of strong expansion, following the +8.2% increase seen in 2023.
Total global premium income grew by €557 billion to reach €7.0 trillion in 2024. Life insurance accounted for the largest share of this, generating €2,902 billion in premiums. Property and casualty (P&C) insurance followed at €2,424 billion, while health insurance contributed €1,682 billion.
P&C insurance premiums increased by +7.7% last year, a slight decline from +8.3% in 2023. North America remained the dominant market, with growth of +8.2% and accounting for more than half of global P&C premium volumes. Western Europe posted a +6.0% rise, while Asia’s growth stood at +4.0%, leaving it behind its Western European counterpart in terms of size.
"Insurance remains a growth industry," said Ludovic Subran (pictured), chief economist at Allianz. "However, this growth is largely fueled by policy inaction: underinvestment in adaptation is leading to increasing climate damage, while delayed pension reforms are requiring higher savings efforts from individuals.”
Gen Z Embraces Driving Tech, But Still Can’t Put the Burrito Down
A new survey reveals that while Gen Z drivers are leading the way in using in-car technology like Apple CarPlay, hands-free calling, and telematics-based insurance, they’re also more likely than older generations to engage in legal but risky behaviors — like eating behind the wheel, driving while tired, or letting a pet ride shotgun
A new survey reveals that while Gen Z drivers are leading the way in using in-car technology like Apple CarPlay, hands-free calling, and telematics-based insurance, they’re also more likely than older generations to engage in legal but risky behaviors — like eating behind the wheel, driving while tired, or letting a pet ride shotgun.
The research, commissioned by digital insurer Lemonade and conducted by Talker Research, surveyed 2,000 American drivers across all age groups. It found that 54% of Gen Z admitted to eating while driving, more than any other generation. One-third also confessed to driving while tired, more than double the rate of baby boomers.
While only 30% of Gen Z respondents think their peers are the safest drivers, they’re significantly more likely to enable safety-focused tech features and use telematics to save on insurance. In fact, 41% said they actively use tech tools to get better rates, compared to just 13% of boomers.
“Younger drivers are redefining what it means to be responsible on the road,” said Sean Burgess, Chief Claims Officer at Lemonade. “From connected apps to safer driving modes, Gen Z expects modern solutions — and they’re using them.”
Frustrating Claims Processes Drive Policyholders to Avoid Filing and Consider Switching Insurers
A new survey finds 22% of consumers skip filing claims due to complex processes, while 64% would switch insurers for a smoother digital experience.
A recent national survey from Insurity reveals growing consumer dissatisfaction with digital claims processes among property and casualty policyholders. According to the 2025 Digital Experience Index, 22% of respondents chose not to file a claim because they found the process too complicated or frustrating. This suggests a significant trust and usability gap between what policyholders expect and what insurers currently deliver in digital interactions.
Perhaps even more concerning for carriers, 64% of surveyed consumers said they would consider switching insurers for a more seamless digital experience. The data underscores the increasing importance of user-friendly technology in policyholder retention. A slow or disjointed claims process doesn’t just risk frustrating customers—it can directly drive them to competitors.
Insurity’s report also highlights that despite the industry’s push for digital transformation, software solutions alone aren’t enough. Customer experience—particularly during the claims process—remains central to policyholder satisfaction. When the claims journey becomes too friction-filled, it erodes trust and discourages usage of the very coverage that insurance is meant to provide.
Understanding What Policyholders Really Need During Property Claims
[Editor's Note: The P&C claim process remains opportune for improvement, especially in the areas of communication and guidance. Complaints from communication breakdown, lack of updating leads to delays. Hi Marley demonstrates how insurers are overcoming some of these issues]
Hi Marley analyzed nearly 5,000 property claims conversations and uncovered the top five reasons customers reach out. See what your policyholders really want to know during the claims process.
Hi Marley analyzed 4,725 property claims conversations in our database and uncovered five root causes of the most frequently asked questions in property claims.
Staying Ahead of These Customer Needs Will Help Carriers Drive Efficiencies and Customer Satisfaction in Property Claims
LinkedIn post, Jay Gruden
Telematics, Driving & Insurance
Monogoto and Boat Fix bring real-time visibility and control to the recreational marine industry
As the new boating season kicks off, thousands of boats are being unwrapped, waxed, and prepped after a long winter ashore. While boat owners prepare for the summer, a movement is underway in the recreational marine industry, one driven by sensors, data and connectivity. New technologies allow vessels to be monitored 24/7, providing owners with detailed telematics, weather reports, and safety warnings. These innovations are transforming how people prepare for and experience their time on the water.
Monogoto and Boat Fix set out to create safer, more-secure and stress-free experiences through always-on remote monitoring of recreational boats
While real-time telematics have reshaped the car and truck industry, recreational boats have largely remained offline. Today, only 5% of all recreational vessels are wirelessly connected and capable of being remotely monitored. That number is surprisingly low, given how accessible and impactful the technology has become.
Advantages of Connected Vessels
Without visibility into the boat's condition, owners often find out issues too late and the boating experience is ruined for the day, or worse, the season. The benefits of connected vessels seem obvious. A dead battery can leave you stranded, and a broken bilge pump can quietly lead to sinking. Considering that a boat is often one of the most valuable assets an owner possesses, real-time insights into its health and location are increasingly expected.
Telematics Insurance Faces Heat Over Data Privacy | Bankrate
Recent lawsuits and proposed legislation are addressing privacy concerns with telematics insurance. Find out if your state is taking action In the world of auto insurance discounts, the biggest savings are tied to telematics.
State Farm’s Drive Safe & Save promises up to 30 percent off your auto insurance premium for safe driving; Progressive says it “handed out over $1.2 billion in discounts” through Snapshot. Although Allstate no longer advertises an average or maximum discount on its website, it claimed in the past that discounts from the Drivewise telematics program could total as much as 40 percent.
But for many drivers, concerns about data privacy are a major deterrent. Before drivers can earn a telematics discount, they must opt into a program that permits their insurance company to collect huge amounts of personal data, including geolocation data, often with limited, hard-to-find or murky information about how that data will be stored or used.
In recent months, these privacy concerns have made their way to state lawmakers, attorneys and attorneys general, with lawsuits and proposed legislation cropping up across the country in a patchwork attempt to regulate how insurance companies use customers’ telematics data.
Why state authorities are cracking down on insurance telematics
First, it was Texas. In January, Texas Attorney General Ken Paxton sued Allstate and its telematics partner Arity, alleging that the two companies had conspired to collect and sell telematics data from over 45 million Americans. Attorneys in Illinois followed suit in February, filing a class action lawsuit against Allstate in federal court.
Automakers that collect telematics data via in-vehicle technology have also come under fire for data-sharing partnerships with insurance companies. In April, lawyers in Texas filed a class action lawsuit against Progressive and Toyota for sharing customers’ driving data without consent.
In the meantime, lawmakers in several U.S. states have introduced new legislation that would put restrictions on the way insurance companies gather and use customer data for the purposes of telematics. Legislators in Maryland, Missouri, New York, North Carolina and Tennessee introduced bills focusing on transparency and consumer protection:
Of these five bills, only North Carolina’s HB 81 has seen significant forward momentum. The rest have stalled in committee or been withdrawn entirely by the lawmakers who introduced them.
InsurTech/M&A/Finance💰/Collaboration
Japanese Insurance Giant Sompo Shuts Down Its Innovation Lab in Israel - Insurtech Israel News
Japanese insurance giant Sompo is closing its innovation arm in Israel — Sompo Digital Lab Tel Aviv. Over the past seven years, the local innovation lab facilitated partnerships with Israeli startups such as TytoCare, Planck, Parametrix, GeoX, and EasySend.
The lab, managed by Yinon Dolev, employed around 13 people in Israel.
In a statement, Sompo International said: “As part of a global organizational restructuring and efficiency process, Sompo has made the difficult decision to shut down its innovation lab operations in Israel. We extend our gratitude to the team for their years of contribution.”
The company added that all existing partnerships will continue under the management of the relevant business units.
Announcements
Salvato and LossExpress Announce Exclusive Partnership
Salvato, Inc. and LossExpress announce an exclusive partnership to deliver a seamless, end-to-end total loss workflow for insurers.
Insurance companies selling through Salvato can now receive payoff amounts, letters of guarantee, title images, and lien release letters – all in a matter of days, and all directly in the Salvato Seller Portal.”
Salvato, Inc., the smarter auction for insurance vehicles, and LossExpress, the industry leader in digital lien solutions, today announced an exclusive partnership to deliver a seamless, end-to-end total loss workflow for insurers. The partnership integrates LossExpress’s market-leading xLien™ solution directly into the Salvato workflow, expanding on Salvato’s ability to accelerate the insurance total loss process from assignment to auction.
Insurance companies selling through Salvato can now receive payoff amounts, letters of guarantee, title images, and lien release letters – all in a matter of days, and all directly in the Salvato Seller Portal.
“Our mission at Salvato is to eliminate the inefficiencies that have hindered the total loss process for years, and use that ability to return more money to sellers and buyers where it belongs,” said Peter Jebson, CEO and Co-Founder of Salvato. “Our exclusive partnership with LossExpress brings automation and speed to what’s traditionally been one of the toughest parts of the total loss process, and we are proud to be the only auction delivering this to insurance companies in a fully-integrated way.”