Insurance industry employment hit a new high watermark in April, at nearly 2,937,000 jobs - The Jacobson Group  May 11th 2023

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

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

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

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.