News
![May 2023 Labor Market Pulse](https://dxj7eshgz03ln.cloudfront.net/production/link/image/860040/original_ratio_extra_large_a2f9569b-9ce2-4184-bb7d-fe397d79a49a.jpg)
May 2023 Labor Market Pulse
The U.S. labor market remains resilient – despite some economists’ predictions – as we enter May.
The insurance carriers and related activities unemployment rate saw just a slight increase to 1.6%; and unemployment for the overall U.S. economy dropped to 3.4%, which along with January 2023, marks a 54-year low.
Numbers from the Bureau of Labor Statistics also indicate that insurance industry employment hit a new high watermark in April, at nearly 2,937,000 jobs.
The Jacobson Group
![Aon’s Joe Peiser on How Better Use of Data and Parametrics Can Help Carriers Bridge the Protection Gap](https://dxj7eshgz03ln.cloudfront.net/production/link/image/860015/original_ratio_extra_large_09116227-e83b-4c0f-a531-f68b8f499a43.jpg)
Aon’s Joe Peiser on How Better Use of Data and Parametrics Can Help Carriers Bridge the Protection Gap
Joe Peiser is Head of Commercial Risk Solutions, North America for Aon
From the economic fallout of COVID-19, to the hard property market, to the volatility of macroeconomic factors, it has become increasingly difficult for insureds to adequately protect themselves from the risks posed by this landscape.
While traditional defensive strategies and risk management tools are still important, they are often no longer enough.
As a result, we are seeing a widening of the so-called protection gap, i.e., the difference between risk transfer needs and available capacity. This year alone, clean property accounts with modest catastrophe exposure have seen rate increases between 10 and 20%, and CAT-exposed accounts have seen price increases of at least 25%.
Some have seen increases in the triple digits.
![New Majesco and Deloitte Report Uncovers Opportunity to Exceed Customer Expectations with Digital Billing and Payments](https://dxj7eshgz03ln.cloudfront.net/production/link/image/859449/original_ratio_extra_large_85f6b1a0-f486-4531-bd2e-2f551e571e70.jpg)
New Majesco and Deloitte Report Uncovers Opportunity to Exceed Customer Expectations with Digital Billing and Payments
Majesco, a global leader of cloud insurance software solutions for insurance business transformation, today announced the availability of a new joint report with strategic partner Deloitte, Rethinking Billing and Payments in the Digital Age.
The joint report, based on independent research and insights from a roundtable hosted by Majesco and Deloitte with industry leaders, provides a far-reaching view on the opportunity to exceed customer expectations with digital billing and payments. Expectations are continuously being raised through digital capabilities available outside of insurance, putting pressure on the industry to accelerate digital transformation.
“Digital transformation continues to accelerate within the insurance industry and billing and payments is at the forefront of the change,” stated Denise Garth, Chief Strategy Officer at Majesco. “From new risk products, value-added services, upgraded customer experiences, and embedded insurance – all powered by digital and data – are just a few items at the tip of the iceberg of change driven by customers. Every part of the insurance operating model, including billing and payments, are ripe for digital modernization and are foundational to growth, customer retention, and innovation.”
Toyota Auto Insurance Launches in California
Expanding into the Golden State represents a major milestone for Toyota Auto Insurance. Not only is California the nation’s most populous state, it’s also home to the first Toyota manufacturing facility in North America, Toyota Auto Body California.
Toyota Auto Insurance, underwritten in California by 21st Century Casualty Company, affiliated with Toggle, which is backed by Farmers Insurance.
Toyota Auto Insurance is available for both Toyota and non-Toyota vehicles in a customer’s household.
![Westfield introduces a new safe driving rewards program](https://dxj7eshgz03ln.cloudfront.net/production/link/image/860362/twenty_by_nine_extra_large_ce3b1257-0379-4486-996b-d298ed64ba10.jpg)
Westfield introduces a new safe driving rewards program
Insurance carrier Westfield Insurance introduced MissionSafe®, a new safe driving rewards program that gives eligible personal auto insurance customers feedback on their driving and provides incentives to encourage safer driving habits. The new usage-based insurance (UBI) program, enabled by a smartphone application, uses telematics technology to analyze driving behavior, determine risk, and calculate opportunities for premium discounts.
MissionSafe customers earn an automatic 10 percent premium discount upon enrollment, then can earn up to a 40 percent discount at renewal, with an average expected savings of 20 percent. In addition to potential premium discounts and safety benefits, particularly around young drivers and distracted driving, users also can earn rewards for safe driving including gift cards and charitable donations.
“Saving money motivates drivers. With MissionSafe, the safer that customers drive, the more rewards and the greater the discount they can earn. Considering government data shows consumers have experienced a 13 percent increase in auto insurance inflation from October 2021 to October 2022 (as measured by the Bureau of Labor Statistics), adding MissionSafe to an eligible Westfield personal auto policy is a timely way for drivers to gain a potential premium discount.” – Steve Butler, personal lines product management and underwriting practices leader for Westfield.
With the goal of enhancing driver safety at the forefront, Westfield’s MissionSafe program analyzes driving data, then computes an overall driving score out of 100 based on a series of criteria: phone use while the vehicle is in motion; speeding; hard acceleration; hard braking; and harsh cornering. The MissionSafe phone app displays the user’s overall score for a two-week period and provides a rating for each vehicle trip. MissionSafe uses the overall driving score to calculate eligibility for renewal insurance discounts, but does not impose a premium surcharge based on a low driving score. Even with the lowest driving score possible, the policy premium would remain the same base rating that Westfield would have quoted if the customer had not participated in MissionSafe.
Available through independent agents, MissionSafe is available in Iowa, Illinois, Indiana, Kentucky, Minnesota, Ohio, Pennsylvania, Tennessee and West Virginia.
InsurTech/M&A/Finance💰/Collaboration
![VIU BY HUB PARTNERS WITH GONZAGA UNIVERSITY TO BRING DIGITAL PERSONAL INSURANCE BROKERAGE TO ALUMNI](https://dxj7eshgz03ln.cloudfront.net/production/link/image/860190/twenty_by_nine_extra_large_1da54893-9570-4d90-9ad9-f5b1de6d687d.jpg)
VIU BY HUB PARTNERS WITH GONZAGA UNIVERSITY TO BRING DIGITAL PERSONAL INSURANCE BROKERAGE TO ALUMNI
VIU by HUB (VIU), a digital insurance brokerage platform, today announced a partnership with Gonzaga University (GU) to provide alumni (Zags) with the opportunity to shop for and buy personal insurance coverage through a variety of carriers while receiving trusted advice. The partnership supports Gonzaga's Office of Alumni and Friends by generating ancillary revenue to support alumni programs and scholarships.
Powered by Hub International Limited (HUB), a leading global insurance brokerage and financial services firm, VIU is rapidly changing the personal insurance experience with its embedded broker platform and omnichannel approach featuring a digital-first experience, supported by personalized live agent interactions and trusted advice.
"We are proud to partner with Gonzaga on a program that will impact past, present and future members of the Zag community," said Bryan Davis, EVP and Head of VIU. "GU alumni benefit from VIU by HUB's powerful brokerage advice and help build a new source of revenue to support future university endeavors by simply shopping for protection that best fits their needs."
![The State of Insurtech in 3 charts: Funding in Q1'23 rebounds from 2022's record low - CB Insights Research](https://dxj7eshgz03ln.cloudfront.net/production/link/image/860198/original_ratio_extra_large_b48e711d-82b4-411e-900c-7e822e97c2e3.png)
The State of Insurtech in 3 charts: Funding in Q1'23 rebounds from 2022's record low - CB Insights Research
Insurtech funding jumps 40% QoQ to hit $1.4B in Q1'23. However, this still marks its second-lowest quarter in 4 years.
Following the decline of investment activity in 2022, insurtech funding increased 40% quarter-over-quarter (QoQ) to hit $1.4B in Q1’23. Deal count, however, dropped by 5%, falling for the second straight quarter to hit 106.
Confie Acquires Miami-based Estrella Insurance
Confie, one of the largest personal lines insurance distribution companies in the U.S., has acquired Miami-based Estrella Insurance, a firm that has 190 offices in five states.
“Estrella has built a strong franchising model well-known among Hispanic consumers and business owners alike,” Confie CEO Cesar Soriano said in a statement.
Estrella, a property/casualty insurance franchisor, will now be part of Confie’s Freeway Insurance brand, the companies said. Estrella has locations in Florida, California, Arizona and Texas, and the acquisition greatly expands Freeway’s presence in Florida.
![Insurity and VIPR Solutions Unite for Seamless, Automated Program Management](https://dxj7eshgz03ln.cloudfront.net/production/link/image/859982/twenty_by_nine_extra_large_9d625200-7717-4357-aefe-897efa86db5d.jpg)
Insurity and VIPR Solutions Unite for Seamless, Automated Program Management
Insurity, a leading provider of cloud-based software for insurance carriers, brokers, and MGAs, announced it has partnered with VIPR Solutions with a focus on the London market and the U.S. domestic P&C market to improve program business efficiencies and remove the need to produce traditional bordereaux. Integrating Insurity and VIPR platforms will enable real-time data exchange for insurers, reinsurers, and brokers – globally, allowing them to make faster, more informed decisions that lead to better underwriting outcomes
![HoneyQuote Launches Florida Condo Insurance Offering Amid Challenging Market Conditions](https://dxj7eshgz03ln.cloudfront.net/production/link/image/858722/twenty_by_nine_extra_large_cdb1b1cd-5c6a-4a2f-9d8e-0b804e23ec11.jpg)
HoneyQuote Launches Florida Condo Insurance Offering Amid Challenging Market Conditions
HoneyQuote, an online marketplace transforming the way homeowners shop for insurance, has expanded its service to condominium owners across the state — a move that comes as Florida contends with a historic insurance crisis that has left residents with higher premiums and fewer options.
“Florida condo residents are experiencing sticker shock when it comes to purchasing insurance, and the market has become even more challenging going into the 2023 Hurricane Season” Tweet this HoneyQuote is a free platform that allows users to easily compare quotes from top-rated regional and national insurance providers writing policies in Florida. Coverage can be shopped, selected, and purchased in minutes. Customers simply enter their address, and HoneyQuote's proprietary technology will generate multiple quotes from different insurance providers.
“Already available to single family homeowners, HoneyQuote is now partnering with the largest regional insurance carriers to grant condo owners the same seamless online experience,” said Freddy Seikaly, HoneyQuote CEO. “The new service comes as it’s becoming difficult for Florida condo owners to secure adequate and affordable coverage.”
Events
2023 OnRamp Insurance Conference — gener8tor | June 21-22, 2023 | Allianz Field | Minneapolis-St.Paul, MN
Building the Future of Insurance Join leading corporations, investors and startups in insurance, fintech, wealth management and asset management at gener8tor’s 2023 OnRamp Insurance Conference.
AI in Insurance
[Ed. note: recommended reading] "Al’s tipping point: Transforming industries at breaking speed" - Tractable Whitepaper
In our first edition of this white paper series, we discussed the impact AI is having on the planet within the insurance, property and automotive ecosystems.
Now, in this latest edition, we’ll dive into the impact the technology is bringing, including making the end-to-end P&C claims cycle 10x faster with automation, helping home insurers navigate rising costs and volume of claims due to increasing frequency of natural disasters and salvaging reusable auto parts from scrap vehicles to benefit the entire automotive ecosystem– among many more real world examples.
We’ll also explore our vision for how technology like Tractable’s AI will connect the entire automotive and property ecosystems in ways that are transformative in people’s everyday lives, while bringing unparalleled value for companies.
How this insurance exec learned to stop worrying and love AI
AI is coming for your job. Adapt or die. You are replaceable by a machine…
Do these phrases sound familiar? Chances are you’ve been hearing and reading them everywhere you look. Everyone wants you to know that your job is in jeopardy.
I’m here with a slightly different perspective. Instead of worrying about the disruption AI will cause in insurance, the way forward is to embrace the change that it offers in a way that continues to make you what you are: Human. No one expects you to be a machine.
As someone who has been following, adjacent to and at times directly participating in the AI community for more than two decades, there’s no doubt this is an exciting time for the discipline. Since the time I finished my graduate work on applied neural networks in 2003, advances in computing power and availability combined with renewed focus on these techniques have accelerated a once sleepy discipline. Now we tend to hear about the latest developments on the news, often with the doom-and-gloom angle I referenced above
Jeff Tyler, head of Product, Data Science & Engineering at Insurance Quantified
People
![Cover Genius' co-founder Angus McDonald talks insurtech, embedded insurance, fintech and more | InsurTech Magazine](https://dxj7eshgz03ln.cloudfront.net/production/link/image/860058/original_ratio_extra_large_37e1e44e-fc2d-4294-8271-735577c91557.jpg)
Cover Genius' co-founder Angus McDonald talks insurtech, embedded insurance, fintech and more | InsurTech Magazine
Angus McDonald, CEO of insurtech unicorn Cover Genius talks about their insurance distribution platform, the power of persistence, and why he looks up to tennis stars