News
[Ed. Note: RECOMMENDED] World Property and Casualty Insurance Report 2023 | Research & insight | Capgemini
From insuring assets to protecting mobility : driving growth in the evolving mobility ecosystem
Mobility market evolution poses challenges and opportunities for P&C insurers who need to make the move from insuring assets to protecting the entire mobility journey. This transformation can yield measurable operational benefits and unlock revenue growth for insurers.
Findings from the World Property and Casualty Insurance Report 2023, which reflects the views of over 290 insurance executives and nearly 6,000 consumers, include:
- Mobility market evolution is driving autonomous, connected, electric and shared (ACES) and multi-modal premium growth.
- Shifting from insuring assets to protecting mobility journeys requires new business models.
- Insurers that successfully transition from product developer to solution co-designer, leveraging mobility ecosystems, will become mobility frontrunners.
Cambridge Mobile Telematics Reports Increases in Distracted Driving Caused an Additional 420,000 Crashes, 1,000 Fatalities, and $10 Billion in Damages to the US Economy in 2022
New report reveals distraction continues to surge, rising 23% since 2020
Cambridge Mobile Telematics (CMT), the world’s largest telematics service provider, today announced the availability of its 2023 distracted driving report: The State of Distracted Driving in 2023 & the Future of Road Safety. By almost every metric CMT measures, distracted driving is more prevalent than ever on US roadways. Drivers are spending more time interacting with their phones on more trips.
“Telematics technology enables efficient, population-level naturalistic driving behavior research, transforming highway safety planning and evaluation”
Insurers Are Feeling Prepared
Insurers are feeling more prepared than they did in 2021 and 2022 on a whole range of issues — but are nervous about geopolitics.
The annual Global Priorities survey by the International Insurance Society found that industry executives are feeling more prepared than in the previous two years on a whole range of issues: cybersecurity, climate change, inflation, competition for talent, data security and expense management.
In addition, major concerns from prior years — how to cope with the pandemic and how to adapt to a hybrid workplace — have greatly diminished.
The major uncertainty among executives is geopolitics. What will happen in Ukraine? Will China invade Taiwan? Will the trend toward what the report called "backsliding democracies" continue?
While I'm delighted by the upbeat responses to the survey, I'd add one uncertainty to the list, echoing what an executive said in a webinar that the IIS held to analyze the report. Worried about misplaced complacency, he said: "I'm surprised anyone can feel comfortable about the level of cybersecurity protection that insurers have in place."
Paul Carroll, Editor-in-Chief, Insurance Thought Leadership
How Generative AI Could Steer Commercial Trucking Insurance in New Direction
Generative AI is the next big technology trend in just about every industry. But for such a people-centric industry, how will ChatGPT, DALL-E 2 and Bing AI truly impact the insurance sector?
Just ask ChatGPT, as some insurance pros have done: When prompted, ChatGPT says it will have a positive impact on the industry. And if you ask a human, I would agree, with conditions. Generative AI’s success in insurance applications will really depend upon who is using the technology and its specific use cases.
Mitchell Expands Third Party Claims Capabilities to Include Coventry Integrated Auto Network
Enhanced program allows access to industry's largest medical provider network for auto claims
Mitchell has announced its third party auto solution has been expanded with the Coventry Integrated Auto Network, a premier national network of directly contracted medical providers. The expansion is designed to enable fast and fair settlements on unrepresented third party claims. The move gives adjusters the tools they need to help improve efficiency, payment accuracy, and cost containment. Mitchell and Coventry are both part of the Enlyte family of companies.
By pairing Coventry's Integrated Auto Network with Mitchell's existing provider negotiation solution, insurance carriers can improve efforts to free up adjuster time to focus on claim settlement. Simultaneously, Mitchell's integrated solution extends access to both the Coventry network and provider negotiation services in a single request, without interrupting the claims management process.
The Importance of Commercial Property and Casualty Insurance for Businesses
Despite the challenges posed by global events such as the COVID-19 pandemic and supply chain disruptions, the P&C insurance sector has shown resilience, with robust financial performance in recent years, as reported by McKinsey.
In fact, global premiums for P&C insurance exceeded $922 billion in 2022, reflecting a significant increase from $859 billion in 2021.
In this blog, we will explore the importance of Commercial property and casualty insurance for businesses, highlighting the key reasons why it is a crucial component of risk management strategies for organizations of all sizes.
Mitigating Risks for Businesses
Mitigating risks is a top priority for businesses, and P&C insurance plays a crucial role in this aspect.
In an unstable climatic environment, natural disasters such as hurricanes, wildfires, and floods have been on the rise, posing significant threats to businesses' physical assets. With the increasing frequency and severity of these events, P&C insurance provides businesses with the financial protection needed to repair or replace damaged property, minimizing the impact of such risks on their operations and bottom line.
Commercial insurance rates see moderate increase in Q1 2023
Commercial property and casualty composite rates increased by a moderate 5% in the first quarter of 2023, according to a report from MarketScout.
By account size, only those with large account premiums ($250,000 to $1 million) saw a year-over-year increase, rising from +4% in Q1 2022 to +4.7% in Q1 2023. Small accounts (up to $25,000) were +4%, medium accounts ($25,001 to $250,000) were +3.7% and jumbo accounts (over $1 million) were +4% in the first quarter of 2023.
“It’s not surprising to see rates holding steady in the first quarter,” says Richard Kerr, CEO of Novatae Risk Group, is quoted in the report. “We will get a better measure of overall composite rates for 2023 in the next two quarters.”
By industry, transportation was the only group that saw a quarter-over-quarter rate increase; from +7.3% in Q4 2022 to +8% in Q1 2023.
Commercial lines that saw the largest premium increases in Q1 2023 were property (+9.3%), auto (+7.3%), umbrella/excess (+5%), professional liability (+5%) and business interruption (+4.7%). Coverages that saw the lowest increases were workers’ compensation (0%), surety (+1%), crime (+1%) and fiduciary (+2%).
InsurTech/M&A/Finance💰/Collaboration
InsurTech Profile: At Cover Genius, Insurance Innovation Means Being Quick, Nimble
Darcy Rittinger, chief operating officer at Cover Genius, says the ability to be nimble and move fast is what drew her to the InsurTech space initially. In fact, she thinks traditional carriers can learn a valuable lesson from how the space operates.
“The thing that has resonated with me most working in InsurTech is the ability to be nimble, to move fast, and to actually be innovative,” she said. “There are people within the carriers that want to do this, but in InsurTech, it’s really possible.”
She said that after spending more than a decade working for large global insurance carriers, she realized that she needed to take the leap into InsurTech.
Why Nationwide became Waffle's preferred home and auto carrier
Nationwide recently announced a new partnership with Waffle, an insurtech company that offers all major personal insurance lines, to bring Nationwide's homeowners and auto insurance products to Waffle customers through its online platform. Nationwide is now Waffle's preferred home and auto insurance carrier, and Nationwide also selected Waffle to sell its personal property and casualty insurance products.
"Nationwide partnered with Waffle because they offer a unique online platform that could help us reach new customers in new ways. The Waffle platform asks a series of questions and provides insurance options that are right for the individual person," writes Lisa Gobber, VP of Nationwide Personal Lines Alternative Direct Distribution, to Digital Insurance. "As technology and consumer expectations evolve, Nationwide is committed to meeting members where they are, and how they prefer to work with us. For some customers, that means being able to quote and at times purchase insurance online or through an app."
What insurers really want
Blah blah blah. There is still a lot of nonsense written and spoken about what insurers are looking for in their innovation partners and what is successful - find out what really matters in our podcast this week with Lloyd’s syndicate and global insurer Chaucer. And if you are wondering what our events and podcasts actually look like, then take a peek at our reinvigorated YouTube channel.
PODCAST: Innovation success - go narrow, go deep - Podcast 238
Join Matthew Grant as he speaks to Duncan Gemmel, Chief Strategy Officer, and Hayley Maynard, Head of Innovation at Chaucer Group. Topics include how to engage underwriters in new opportunities, what Chaucer looks for in technology and data offerings, plus much more.
Events
Insurance Innovators USA | Nashville, Tennessee | Day 2 Highlights
This was a fascinating and insightful event that highlighted the issues, ranging from representation, gender, mentorship and confidence/imposter syndrome, that the industry needs to address not only because it’s the right thing to do but also because it will be essential to attract and retain future talent.
Delegates at Insurance Innovators USA may have spent the previous evening living it up at the event after-party but they were still present and attentive for the important Diversity, Inclusion and Allyship breakfast that started Day 2 in Nashville, Tennessee.
InsurTech Hartford Symposium 2023 | Mohegan Sun, CT
InsurTech Hartford’s mission is to provide knowledge, insights, and opportunities to build the future of insurance. We have been successfully bringing people together to create connections for over 5 years. Attendees benefit from and connect in a high-energy, live environment learning about the latest insurtech trends and innovations empowering our industry.
Grab your tickets now and unlock the opportunity to recharge, get inspired, and develop invaluable relationships with the industry's top innovators and disruptors.
Sponsorships available and ticket prices increase after April 17th.
The Future of Insurance USA 2023 | June 27–28 | Chicago, USA
Redefine Insurance to Power Profitable Growth
Streamline Processes | Reimagine Products | Empower People
Here’s a preview of the organizations that have already confirmed their attendance: Prudential, Chubb, FM Global, AmFam, State Farm, New York Life, John Hancock, Mile Auto, Erie, Omaha National, American Modern, Travelers, Markel, Nationwide, Amerisure, COUNTRY Financial, CSAA, Ameritas, AXA XL, Canopius, Manulife, Great American Insurance Group, Church Mutual, Everest Re, Coterie, SCOR, USAA, The Hanover, WTW and more.
Insurance is at a critical inflection point. Inflation is causing a profitability crunch, customers are demanding digital perfection, and a scarcity of talent leaves the industry in crisis mode. Headwinds of change are ripping through an inherently risk-averse industry – but inaction is a strategic risk in itself.