News
Guidewire's VP of Digital on transformation and culture
At Insurtech Insights, Guidewire's Global Vice President for Digital, Arjun Mathai, explained why culture is so important to nurturing transformation
The insurance industry is transforming – fast. Once criticised for being late to adopt new technologies, insurers are now recognising the need to modernise their organisation by embracing cloud technology, migrating away from manual processes and offering consumers seamless digital experiences.
Arjun Mathai is Global Vice President for Digital at Guidewire Software, one of the most ubiquitous technology providers in the insurance industry. He sat down with us at the recent Insurtech Insights conference in London to discuss what has prompted this shift we’re seeing from insurers.
Mathai took part in a panel discussion at Insurtech Insights that examined the importance of culture to the success of digital transformation strategies.
“Today, digital is very different,” he tells us. “The definition of digital is about customer engagement and multi-channel integrated service offerings. It’s about the distribution of products and services across different types of distribution channels, different types of communication channels, and about engaging with customers differently.
How auto insurers can grow amid a decade of disruption
The rise of EVs, AVs, telematics and changing customer needs will shrink the market and invite new competition. See how carriers can adapt.
In brief:
- Rapidly evolving mobility trends, telematics and customer expectations are changing the auto insurance business, challenging legacy business models.
- By 2035, these forces will shrink the market by 31%, invite new competition and change how insurance is distributed, underwritten and serviced.
- Carriers that act now to build B2B distribution partnerships, maximize the benefits of telematics and improve customer experiences will be poised to grow.
EY Report: How auto insurers can grow as a decade of disruption approaches
Underwriting Losses Soar, Net Income Shrinks for P&C Insurers in 2022
Key financial results for private U.S. property/casualty insurers significantly worsened in 2022 from a year earlier, according to preliminary results from Verisk (Nasdaq: VRSK), a leading global data analytics provider, and the American Property Casualty Insurance Association (APCIA).
The industry experienced a $26.9 billion net underwriting loss in 2022, more than six times the $3.8 billion underwriting loss in 2021. The underwriting loss was the largest the industry has seen since 2011.
Net income fell to $41.2 billion in 2022, compared to $62.1 billion a year earlier – a 33.6% decline. That decline would have been $11 billion worse if investment income were not bolstered by various one-time transactions from outside the property/casualty insurance industry.
In 2022, incurred losses and loss adjustment expenses grew 14.1% while earned premiums grew 8.3%. The combined ratio – a key measure of profitability for insurers – deteriorated as well, to 102.7% in 2022, from 99.6% in 2021.
Insurance 'vital to fighting climate change'
The insurance sector is showing resilience despite adversity and demonstrating its importance in the fight against climate change, says EIS' Rory Yates
EIS Group is the company behind a cloud-native, API-first digital insurance platform that enables insurers to innovate like a tech company. Their digital insurance platform is built to bring carriers closer to customers, empowering them to digitise core insurance operations and in turn create an essential data foundation for delivering great experiences to customers online.
But, in a world where even tech companies are struggling to act with the agility of a tech company, how easy is it for insurers? At InsurTech Insights, we caught up with Rory Yates, Global Head of Strategy at EIS. He explains that the company’s ability to support digital transformation initiatives are neatly demonstrated by its partnership with esure
Tornado-Spawning Storms May Get Worse Due to Warming
America will probably get more killer tornado- and hail-spawning supercells as the world warms, according to a new study that also warns the lethal storms will edge eastward to strike more frequently in the more populous Southern states, like Alabama, Mississippi and Tennessee.
The supercell storm that devastated Rolling Fork, Mississippi is a single event that can’t be connected to climate change. But it fits that projected and more dangerous pattern, including more nighttime strikes in a southern region with more people, poverty and vulnerable housing than where storms hit last century. And the season will start a month earlier than it used to.
The study in the Bulletin of the American Meteorological Society predicts a nationwide 6.6% increase in supercells and a 25.8% jump in the area and time the strongest supercells twist and tear over land under a scenario of moderate levels of future warming by the end of the century. But in certain areas in the South the increase is much higher. That includes Rolling Fork, where study authors project an increase of one supercell a year by the year 2100.
Assurant Recognized by Fortune As One of America’s Most Innovative Companies 2023
Assurant, Inc. (NYSE: AIZ), a leading global business services company that supports, protects and connects major consumer purchases, has been named to the Fortune list of America’s Most Innovative Companies 2023. This prestigious award is presented by Fortune and Statista Inc., the world-leading statistics portal and industry ranking provider.
“Inclusion on Fortune’s inaugural list of America’s Most Innovative Companies is reflection of our commitment to embrace curiosity to inspire new ideas and deliver market-first solutions.”
Commentary/Opinion
Connected Claims USA 2023, September 26-27, Austin, TX.
Reuters Events’ Connected Claims USA 2023 is the worlds largest and most important insurance claims event of the year.
We are making you aware of this important event well in advance so that you can start planning your participation in any way the works best for you and your organization; attend, learn, sponsor, speak, exhibit or network.
- Claims leaders will share and learn how others are leveraging technology to solve universal claims challenges and identify potential partners
- InsurTechs, service and solutions providers will have a unique opportunity to meet and network with industry claims leaders and potential partners
- Investors and bankers will identify trends, early stage and more mature InsurTechs and technology solutions providers and network with claims industry leaders for valuable market intelligence
Limited number of $500 advance purchase discount passes available.
“At a time of rapidly changing and evolving external conditions, customer perceptions and technology, hearing perspectives from peers is invaluable” — Mike Fiato, Executive Vice President & Chief Claims Officer, Liberty Mutual Insurance
'Connected' newsletter co-curators, Alan and Stephen support Reuters Insurance with this event and are glad to answer any questions you may have and/or introduce you to the event producers.
InsurTech/M&A/Finance/Collaboration
6 VCs explain why embedded insurance isn’t the only hot opportunity in insurtech
If you think embedded insurance is the only hot thing in insurtech these days, we’ve got a surprise in store for you: While it’s true that startups that help sell insurance together with other products and services are enjoying tailwinds, there are plenty of other opportunities in the space, several investors told TechCrunch+.
You see, insurtech startups often need to take into account the myriad rules and regulations in place when they seek to innovate and embed insurance into products, which might make it difficult to pull it off. Given the current emphasis on achieving cost efficiency to extend runways in the broader startup ecosystem, it appears investors are open to insurtech startups that can build a sustainable business model, regardless of it including embedded insurance.
“Insurtech startups that do not offer embedded insurance, and rather provide other innovative solutions will still attract VC funding this year, especially if they can show cost-efficient and sustainable growth,” said Nina Mayer, a principal at Earlybird.
And according to David Wechsler, a principal at OMERS Ventures, “having an embedded strategy is not required for venture funding.”
Mayer added that there is particular interest in products that go beyond embedded insurance. “We are generally open to startups innovating any part of the value chain as long as the problem and market are big enough.”
Waffle Teams Up with Nationwide to Offer Instant Online Auto & Home coverage
If the last few years have proven anything, it’s that most every purchasing opportunity can be done online. That includes insurance!
To meet the demand associated with this shift, Nationwide and Waffle are teaming up to protect Waffle customers’ homes and vehicles in minutes, all online. This partnership makes Nationwide the preferred auto and homeowner insurance carrier for Waffle and will include the direct integration of Nationwide’s auto & home products onto the Waffle platform. Waffle has also been appointed by Nationwide to sell all of its Personal P&C products.
“Nationwide is one of the country’s most prominent carriers and we couldn’t be more excited to partner with their phenomenal team to deliver expectational protection for our customers” said Quentin Coolen, Co-founder & CEO of Waffle. “With this partnership, Waffle is realizing its original goal of protecting every aspect of our customers’ lives - all online.”
US property insurtech Kin Insurance raises another $15mn
US insurtech Kin Insurance has secured a US$15mn Series D extension, bringing the total amount of funding as part of its Series D round to $109mn.
The latest investment comes from Geodesic Capital and QED Investors among others. It is the third close of Kin’s Series D round, and shows the appetite among its backers for being part of the Chicago-based company’s growth. Kin initially announced $82mn in equity funding for its first Series D close in March 2022, having already raised more than $160mn in backing over its previous fundraising rounds.
How Northwestern Mutual Embraces AI
At a time when many financial services companies are looking a bit shaky, there’s a lot to be said for stability. Northwestern Mutual, a 166-year-old financial services company based in Milwaukee, Wisconsin, has a purpose-driven mission: to free Americans from financial anxiety. One of us (Tom) was sufficiently attracted to The Quiet Company (as it once advertised itself) as a young professional that he signed up for multiple products over time despite its lack of digital wizardry. However, the organization has been on a journey to be more client-centric and to enhance its overall customer experience. To that end, Northwestern Mutual has focused on artificial intelligence and data science.
For example, in 2018, the company teamed with Milwaukee-based Marquette University and the University of Wisconsin-Milwaukee to create the Northwestern Mutual Data Science Institute. This partnership advances academic data science and technology learning while propelling innovation for Northwestern Mutual in key areas, including underwriting and AI-driven business automation. Further, it contributes to the formation of a technology ecosystem and advances its home base of southeastern Wisconsin as a national hub for technology, research, and talent development while creating an organic pipeline of tech talent in the area.
Canada
6 priorities for Canadian and other insurers to consider
Transformation continues to be the byword for the insurance industry – but not all change is self-directed or indeed welcome. We consider some of the key market drivers that are set to shape the industry in 2023, as well as provide some practical tips for managing the change ahead.
Ben Kosic, Partner, Capco
Events
Insurance AI and Innovative Tech USA 2023, 12–13 April, 2023 Marriott Marquis, Chicago, USA
Fuse the Power of Data and Tech to Reinvent Insurance, Agile Technology. Advanced AI. Actionable Insights.
An unmatched opportunity for carriers is within reach. Yet the question remains - with each pillar posing its own challenges, can you achieve all three: tech enabled, AI fueled, and data driven insurance?