News
Auto Insurance Results ‘Historically Bad’ in 2022: S&P
In 2022, the U.S. private auto insurance industry reported its worst underwriting results in over two decades, according to a S&P Global Market Intelligence analysis.
The net combined ratio for the sector — when excluding policyholder dividends — was 111.8. That figure was 11 points higher than 2021’s ratio.
The 3 Trends Rocking the P&C Insurance Industry in 2023
In this article, we will explore three trends driving the P&C insurance industry forward and how they shape the future of insurance. Those organizations that understand these trends and embed them into their business strategies are poised to come out on top in 2023.
- The MGA Market is Experiencing Near Historic Growth
- Upcoming Bureau Regulatory Changes are Going to Turn the Market Upside Down
- AI and Automation Will Grow More Powerful in Core Tasks
Sylvester Mathis, Chief Insurance Officer, Insurity....from Insurance Innovation Reporter
Ping An processes over 200 million claims in 2022, averaging 600,000+ cases daily
In 2022, Ping An’s four insurance companies collectively processed more than 200 million claims, averaging over 600,000 cases per day, according to Ping An Insurance (Group) Company of China, Ltd.’s 2022 Annual Insurance Claims Report.
This extensive coverage demonstrates the vital role that insurance claims services play in safeguarding people’s livelihoods and fostering the sustainable growth of the insurance industry.
The total claims payments exceeded an impressive RMB 280 billion, equivalent to an average daily payout of RMB 770 million.
Events
Insurtech Insights USA | June 7-8th | Javits Center, NYC | 25% Discount for Connected Subscribers
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InsurTech/M&A/Finance💰/Collaboration
5 best practices for choosing the right insurtech partner
Insurtechs can play a vital role in supporting, augmenting, or refining life and health insurers' value propositions, business initiatives, and goals. These forward-thinking companies offer new and innovative products and services to enhance the customer experience, improve process efficiency, reduce costs, facilitate advanced data analytics, and more.
Insurtech offerings run the gamut, from evidence-based and claim cost-reducing online mental health treatment programs, to banking services that include customer carbon footprints, to new business and distribution models that can ease and extend insurer reach into uninsured and underinsured populations.
As with any third-party vendor, the right insurtech partner can fuel an insurer's strategies, tactics, products, services, and results. The wrong partner, however, can drain resources, waste time, and yield few to no desired outcomes.
Selecting the right insurtech partner should not be approached lightly. It involves entering a complex and noisy environment. Nascent players, ill-conceived approaches and ideas, and insufficient road testing abound. Evolving nomenclature and slick marketing can also be confusing, making apples-to-apples comparisons of insurtechs challenging.
Max Kraus, Director Of Ventures & Partnerships, RGAX
Global Parametrics to leverage ICEYE's global flood data to develop parametric solutions
ICEYE, a provider of satellite data and services to inform decision-making and analysis, and Global Parametrics, the parametric and index-based disaster risk transfer company, have entered into a flood data agreement to support the development of innovative parametric solutions.
When a flood event occurs, Global Parametrics will use ICEYE’s flood data to determine if a specified threshold has been met and the cover is triggered.
ICEYE owns and operates the largest constellation of synthetic aperture radar (SAR) satellites, and when the imagery produced is combined with auxiliary ground-level information, it is able to produce reliable, consistent, and accurate insight into the extent and depth of major flood events around the world, in near real-time.
Ravin AI Secures Investment from IAG Firemark Ventures to Provide AI-Powered Vehicle Inspection Solutions for Retail Customers & Commercial Fleets
Ravin’s AI-powered visual inspection solutions could be deployed across a range of IAG’s insurance brands to streamline the condition assessment, maintenance and repair of vehicles and commercial motor fleets.
Ravin AI, a leader in deep learning vehicle inspection technology, secured today its first Australian Investment from Firemark Ventures, the corporate venture capital arm of IAG, the largest general insurer in Australia and New Zealand.
Many large insurance providers serving the automotive industry can often face internal and customer-facing time-lags, as well as issues relating to the consistency of vehicle assessments and claims estimates.
Ravin's platform is designed to improve the accuracy of vehicle assessments, reducing operational costs and improving customer trust by providing more transparent repair quotes. IAG's investment also reflects Ravin's wider market penetration strategy into the APAC region.
Bregal Sagemount and FTV Capital Announce Strategic Growth Investment in Neptune Flood Incorporated
Bregal Sagemount ("Sagemount") and FTV Capital ("FTV"), two leading growth-focused private equity firms, today announced a strategic growth investment in Neptune Flood Incorporated ("Neptune" or the "Company"), a leading digital insurtech platform and private flood insurance provider. Sagemount and FTV will acquire a substantial minority stake in the Company, with Neptune CEO and management maintaining majority ownership. Financial terms of the transaction were not disclosed.
Launched in 2018 and based in St. Petersburg, Florida, Neptune provides affordable and value-added flood insurance policies to over 150,000 homeowners, renters, and businesses in 48 states and Washington, D.C. Founded with the goal of changing the way consumers and businesses think about and buy insurance, the Company has disrupted the traditional flood insurance market, offering a digital platform that enables insurance agents and customers to obtain coverage in mere minutes. Neptune's proprietary AI platform, Triton, instantly assesses flood risk on a property-by-property basis, allowing the Company to provide an accurate assessment of risk, personalize pricing for customers, and offer competitive premiums.
"We are thrilled to be partnering with Sagemount and FTV as we continue to build our business and achieve our mission of making flood insurance more accessible, helping customers better protect their homes and businesses from the devastating effects of flooding," said Trevor Burgess, President & CEO of Neptune. "Both Sagemount and FTV have established track records of insurtech growth investments and expertise in scaling technology-enabled businesses, something that set them apart from other investors we saw in the market and made them the ideal partners for our next phase of growth."
AI in Insurance
Roots Automation Introduces InsurGPT - the World's Most Advanced Generative AI Model for Insurance
Roots Automation, creator of AI-powered Digital Coworkers, today announced the release of InsurGPT - the world's most advanced fine-tuned Generative AI model, designed specifically for the Insurance market.
InsurGPT further expands the natural language capabilities of Digital Coworkers by utilizing proprietary, fine-tuned Large Language Models (LLMs) to read and accurately extract data across:
Structured documents - ACORD forms, medical claim forms, etc. Unstructured documents - insurance applications, loss runs, quotes, first notices of loss, demand packages, general correspondence, etc. InsurGPT utilizes a deep corpus of insurance specific data and documents alongside systems and process knowledge to significantly improve the accuracy, speed, and validity of data extraction and inferencing, while reducing false-positives, 'hallucinations,' that non-industry specific Generative AI models produce.
Deloitte Expands Partnership with Google Cloud to Drive Industry Delivery of Advanced AI
Deloitte and Google Cloud have announced a significant expansion of their decade-long partnership to help bring Google Cloud’s advanced Generative AI capabilities to enterprises in every industry.
Deloitte’s Generative AI practice will build and scale solutions to address the growing demand for Google Cloud’s Generative AI capabilities and solve significant business challenges with its AI technologies.
Deloitte is already using Google Cloud’s AI capabilities and large language models (LLMs) to develop industry-leading solutions that help enable businesses to be more effective and efficient. These solutions are designed with ease-of-use in mind so that developers, employees, and IT teams can immediately see value from their AI investments.
Hackers Aim to Find Flaws in AI
No sooner did ChatGPT get unleashed than hackers started “jailbreaking” the artificial intelligence chatbot – trying to override its safeguards so it could blurt out something unhinged or obscene.
But now its maker, OpenAI, and other major AI providers such as Google and Microsoft, are coordinating with the Biden administration to let thousands of hackers take a shot at testing the limits of their technology.
Some of the things they’ll be looking to find: How can chatbots be manipulated to cause harm? Will they share the private information we confide in them to other users? And why do they assume a doctor is a man and a nurse is a woman?
“This is why we need thousands of people,” said Rumman Chowdhury, lead coordinator of the mass hacking event planned for this summer’s DEF CON hacker convention in Las Vegas that’s expected to draw several thousand people. ”We need a lot of people with a wide range of lived experiences, subject matter expertise and backgrounds hacking at these models and trying to find problems that can then go be fixed.”
Can AI solve the property data dilemma?
In the world of property insurance, data is crucial. However, despite undergoing a major digital transformation over the past few years, insurance companies still face numerous data-related challenges.
Accessing and properly managing quality data, especially for an extensive portfolio of properties, is still extremely complicated. Without high-quality data and insights, insurers can struggle to identify risk, reduce costs and make good decisions at scale.
One of the biggest issues is the lack of a single, consistent way to identify property data and an individual building’s corresponding records. Therefore, it’s not uncommon for property data to be outdated, incomplete or contain errors. This leaves insurers with the strenuous task of managing, storing and extracting value from an ever-growing volume of data from disparate sources.
Forrester reports that between 60% and 73% of all data within an enterprise is never analyzed at all.
Jakub Dryjas, CEO, Tensorflight, a property intelligence platform powered by AI
Corvus Insurance, powered by a proprietary AI-driven cyber risk platform, delivers an industry-leading Loss Ratio of 36%
Corvus Insurance, the leading cyber underwriter powered by a proprietary AI-driven cyber risk platform, today announced its U.S. industry-leading 2022 ultimate loss ratio of 36 percent, which has been independently verified and includes all lines and all risk capital partner results. This figure is indicative of the strength of Corvus’s cyber underwriters and the team’s sharp focus on delivering strong underwriting results. Across its book, Corvus grew cyber premiums by 80% in 2022 while maintaining this leading loss ratio.
“Our policyholders are uniquely engaging with us and our tailored solutions year-round to help make them safer amid a dynamic cyber threat landscape. We remain hyper-focused on tackling cyber risk with one of the largest specialized cyber underwriting teams in the industry, while continuing to maintain a best-in-industry loss ratio.”
Improvements Corvus has made to its scan technology have had a profound impact on cyber underwriter modeling. Corvus is able to get a clearer picture of a company's exposure profile, and enable underwriters to quickly adapt as an insured’s cyber exposure shifts within a policy period. Corvus’s dynamic data insights then foster a seamless renewal process. Corvus maximizes its data capabilities to help protect brokers and policyholders by producing optimized policy recommendations based on scans of 20,000 data points every time a policy is quoted. Corvus underwriters also work closely with an in-house team of cyber experts in price risk.
People
[Ed. note: Recommended] -- "The Future of Insurance, Volume III. The Collaborators" by Bryan Falchuk, President & CEO of PLRB, Insurance
I've been on a mission to help the industry change for the better. In sharing the stories of insurers, new and old, who have overcome the barriers we all face,… | 22 comments on LinkedInI've been on a mission to help the industry change for the better. In sharing the stories of insurers, new and old, who have overcome the barriers we all face, I've tried to inspire a bit of that change through the efforts of those the stories inspire.
Now it's time for the next chapter, or book, actually, in the series of stories meant to inspire us all to innovate and evolve. This time, the story isn't about legacy or startup, but rather the coming together of insurers and insurtech.
Here's a quick video about my new book (which is available for pre-order now), "The Future of Insurance, Volume III. The Collaborators" shares how we can work together better to move faster, reduce costs and get even greater benefit from our efforts by working together more effectively.
Learn how from the stories of Nationwide and Kinetic Insurance, Mountain West Farm Bureau Mutual Insurance Company and Guidewire Software, Ohio Mutual Insurance Group and Pinpoint Predictive, American European Insurance Group, Inc. and Protosure , and Homesteaders Life Company and Benekiva.
Bryan Falchuk President & CEO of PLRB, Insurance & InsurTech Advisor & Thought Leader, Best-Selling Author & Speaker