TYING THE KNOT? SPECIAL EVENT INSURANCE FOR YOUR SPECIAL DAY

It has us thinking of warmer, longer days, getting outdoors and, of course, weddings.
It also has us thinking about the cost of weddings.Did you know the typical American wedding includes about 140 guests and costs over $35,000?That price tag, it should be noted, includes the cost of wedding bands, but not a honeymoon.

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CIP Insurance Brokers Ltd

CIP Insurance Brokers is a second generation, local insurance brokerage with 40 years experience. We aim to provide a competitive, local service to the Northern Ireland market, offering our customers insurance cover specific to their needs and requirements from our 3 offices in Crumlin, Belfast and Ballyclare.

OTHER ARTICLES
Core Insurance, Risk Management

Making the digital leap in underwriting

Article | September 22, 2022

Underwriting has historically been one of the most data-intensive areas of insurance. But when it comes to looking at investments and results, data and information handling for underwriting at most carriers is still disjointed and disconnected. This is underwriting’s version of the digital divide we’ve been discussing in this series, and it leads to inefficiencies and ineffective underwriting. The divide exists because today’s underwriting platforms have not evolved to meet the needs of a modern digital carrier. To see why, let’s take a quick look at the history of these platforms. The first generation of underwriting platforms was built to provide rating systems and core policy management needed to price and administer the underwriting of policies. The technology they run on has changed from mainframe to servers to the cloud, but the platforms themselves remain focused on managing the least information necessary to price and maintain the policy.

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Core Insurance, Risk Management

The Influence of AI on Insurance

Article | August 4, 2022

As AI becomes more deeply integrated into the industry, carriers must position themselves to respond to the changing business landscape. Insurance executives are expected to understand the factors driving this shift and how AI in insurance will impact claims, distribution, underwriting, and pricing. They can start to learn the skills and talent they need, embrace new technology in the insurance industry, and build the culture and perspective they need to be successful in the future insurance market with this grip. While there are four types of levers that might help with productivity efforts—functional excellence, structural simplification, business transformation, and enterprise agility—insurers typically focus on the first two. Those levers are the foundation of efficient and effective operations, it isn't easy to leapfrog them. Traditional industry barriers are dissolving while technology advances and customer expectations vary dramatically. Ecosystems, which are groups of services that work together in a single integrated experience, are becoming more common across industries. Platforms that connect offerings from different industries are also becoming more common. In an interview with Media 7, Darcy Shapiro, COO of Americas at Cover Genius, talked about the changing expectations of consumers in the insurance industry. “Consumers expect brands to provide the same high-quality day-to-day experiences directly within the digital platforms they use most. Insurance should be no different.” Darcy Shapiro, COO of Americas at Cover Genius The Increasing Acceptance of Parametric Insurance In contrast to traditional policies, which are paid based on actual loss incurrence, metric insurance has been around for a while, providing payouts when a specific event exceeds an agreed-upon threshold. Previously being used specifically for natural disaster coverage and supplied to countries and large corporations, parametric insurance is making a comeback today. Advancements in sensor technology, data analytics, and Artificial Intelligence (AI in insurance) create broader information indexes on various levels, which opens up parametric risk applications in novel ways. A reinsurance company recently introduced a parametric water-level insurance product to shield businesses from the financial consequences of high or low river water levels. The program considers measured water levels at specific river gauges and agrees to pay a fixed amount for each day that the index remains below a predetermined threshold value. Other new-generation parametric solutions include terrorism protection for cities and airports, protection for retailers when transit strikes cut down on pedestrian traffic, and help for hotels when there are outbreaks. The advantages of parametric insurance include faster delivery and avoiding lengthy claims investigations. Furthermore, since parametric products have less uncertainty than traditional insurance, premiums can be significantly lower. In terms of technology, parametric insurance is best suited to blockchain technology, with smart contracts that pay out automatically when certain parameters are met. A Flood of Data from Connected Devices Fitness bands, home assistants, smartwatches, and other smart devices are rapidly becoming a part of our daily lives. In addition, smart clothing and medical devices will soon join the fray. Sensor-equipped equipment has long been common in industrial settings, but the number of connected consumer products is expected to skyrocket in the coming years. Existing gadgets (such as automobiles, fitness trackers, home assistants, smartphones, and smartwatches) will continue to grow. In contrast, new and expanding categories (such as clothing, eyewear, home appliances, medical devices, and shoes) will join them. According to analysts, interconnected devices will reach one trillion by 2025. The data generated by these devices will result in a flood of new data that carriers can use to understand their customers better, resulting in new product categories, more customized pricing, and an increase in real-time service delivery. The insurance industry can mine the data generated by these smart devices to better understand their customers’ preferences. This information can also assist insurers in developing new and more personalized product categories. The Rise of the Insurance Ecosystem According to McKinsey, insurance ecosystems will generate 30% of global revenue by 2025. With an expanding array of data sources and a data-driven culture, many insurers will soon be able to plug into and exploit data from complementing firms. These agreements are evolving to involve traditional insurers as well as technology companies. For example, an insurance firm in Europe teamed up with a smart-home technology vendor to improve its home insurance. The latter's technology can detect smoke and carbon monoxide, preventing losses. In addition, a global initiative of a major reinsurance company is developing an ecosystem for InsurTech start-ups and digital distributors. Recent McKinsey research also shows that the insurance business has been having a hard time making efficiency gains for a long time. Moreover, the operating expense disparity between the best and worst performers in P & C and life has widened over the last decade. Functional excellence, structural simplicity, business transformation, and enterprise agility are four productivity levers that insurers often focus on. Those levers are essential to efficient and productive operations. Ecosystems, which are groups of services that work together, are formed across industries and platforms that connect offerings from different sectors. Insurers may use ecosystems to integrate their products into seamless client experiences. Ecosystems are essential in today's interconnected world, whether you want to build direct relationships with customers or work with companies that act as the customer interface. Advancements in Cognitive Technology Cognition is a critical component of AI in insurance. AI cognitive technologies mimic how the human brain functions. In addition, new technology may make it easier to process huge amounts of data, especially from active insurance products that are linked to specific people. Carriers can constantly learn and adapt to the world thanks to cognitive technologies. As a result, it can enable insurance companies to introduce new product categories and engagement techniques and respond in real-time to changing underlying risks. In addition, convolutional neural networks and other deep learning technologies, which are currently used primarily for image, audio, and unstructured text processing, will be used in various applications in the future of insurance industry.

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Claims

Emergency Prevention: 3 Ways Insurtech is Leading the Way

Article | July 15, 2022

The COVID-19 pandemic demonstrated the pressures on emergency medical services and healthcare professionals as well as insurance platforms. Insurtech has proved to be a robust area of technology that needs further investments to ensure that we are able to leverage it even in times when there’s little global turmoil. The Efma-Accenture Innovations in Insurance award winners have validated the exponential expansion of insurtech. Here are three insurtech innovations driving emergency prevention in healthcare. 1 bAIby – Interpreting Baby Cries bAIby is a next-gen baby monitoring device powered by AI. Labelled as a “cry translator,” the BabyT device uses AI to interpret what a baby’s cries mean. The bAIby solution is based on the understanding that the first six months of a baby’s cries universally communicate the following: sleepiness hunger discomfort stomach issues The developer of the BabyT AI, Zoundream, collaborated with insurance company Generali to enroll young parents and test BabyT. This allowed Zoundream to collect the massive amounts of data sets required to train the AI. The AI is able to detect pathologies like hyperthyroidism, autism and even hearing impairment. Furthermore, it will enable Generali to provide new parents with assistance, prevention, and insurance services, thus providing the peace of mind that insurance services should provide. This innovation won the gold in the Efma-Accenture Innovations in Insurance award. 2 Air Doctor – Finding a Doctor Overseas Silver winner Air Doctor is a cutting edge solution to help individuals find general practitioners in unfamiliar places. The solution is aimed at travellers and expatriates whose first instinct when sick overseas may be to visit a hospital, leading to high medical costs and burdening the local healthcare system. The Air Doctor platform provides access to a network of physicians in six continents and 70 countries. The information includes the doctor’s location, specialization, as well as online appointment booking and virtual care options. Insurance providers can integrate with the platform to connect with their customers by offering a digital link for quick verification and approval. The platform has made managing basic medical attention easier for both consumers and insurance providers. 3 bolttech – Boosting Insurance Penetration Bronze winner bolttech was recognized for its smart insurance exchange ecosystem that enables non-insurers to integrate insurance solutions into their purchase journey. For instance, smartphone vendors can use bolttech to provide insurance as an option during the purchase of a new phone, leveraging the most effective purchase touchpoints to provide coverage. This is especially crucial in markets that have a low penetration of insurance. bolttech’s platform has medical plans with self-declared underwriting, delivering instant cover and reducing the onboarding time to just 90 seconds. 4 The Way Forward Digitalization of insurance is the future of the industry. The above solutions have proven use cases that enable both consumers and providers to leverage digital network to create secure and stress-free access to insurance.

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Core Insurance, Risk Management

Is Your Policy Management System Costing or Saving Money?

Article | August 4, 2022

Insurtech is advancing, and the significance of an effective policy management system cannot be underrated. Policy management professionals understand the payoff it offers to an organization. On the other hand, a policy management system that just isn’t a good fit can prove to be a lot more expensive than previously budgeted. So what is it actually costing you? Is your policy management software updated, or are you still using an old version? Do you know how much it is hampering your financial productivity? Even then, often, an outdated system may not be affecting your process significantly but damaging it in other intangible ways that are just as crucial to business success. Analyze your current system for the following: Financial Implications of the Current System Manual processes for policy creation and management make up the costliest part of running a policy management system. Paper-based solutions incur high costs that can be easily avoided by using digital systems that use automation extensively. With thousands of policies and compliance procedures for your team to manage, costs can add up quickly, especially with printing and distribution costs. In addition to these expenses, manual processes are also responsible for policies being misplaced or lost. It may also result in a large fine for noncompliance if some policies are accessible to unauthorized employees. Indirect Expenses Organized policy management procedures are critical for high operational efficiencies. Policy management systems that require manual supervision can prove to be expensive over the long run as they require employees to monitor them constantly. However, automated policy management systems enable policy teams to optimize their resources better and direct team members to speed up other more crucial processes. Furthermore, modern policy management systems don’t need constant monitoring and require only a one time set-up. This enables teams to allocate resources where they are urgently needed. Wasted Resources If you have an outdated policy management system, chances are it takes a lot more micro-managing than it needs to. Businesses must be able to optimize their resources better but with old and outdated systems, it ends up cutting into the productivity and performance on an everyday basis. In addition, it puts undue stress on employees to keep up with compliance norms and changing regulations and policies. Policy management often requires various employees to pitch in with their inputs, and using an old system that doesn’t offer the option to collaborate can take away a huge chunk of productivity daily. What’s the Bottom Line? Automated policy management systems can undoubtedly save you a lot of time and resources. If you’re facing sky-high costs just to maintain your policy management system, it might be time for a rethink. From automating the lifecycle of policies and procedures to streamlining the management of policies by your agents, consolidating a policy management process with software is one of the best insurtech trends to look out for in 2023. It is probably what your organization needs to move the needle.

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Spotlight

CIP Insurance Brokers Ltd

CIP Insurance Brokers is a second generation, local insurance brokerage with 40 years experience. We aim to provide a competitive, local service to the Northern Ireland market, offering our customers insurance cover specific to their needs and requirements from our 3 offices in Crumlin, Belfast and Ballyclare.

Related News

Valued Policy Law and Total Loss

inredisputesblog | May 21, 2019

Typically, a fire insurance policy pays a policyholder for the actual cash value or the replacement value of the property destroyed. But in 20 states, if there is a total loss, the amount the insurer must pay is equal to the value of the property at the time the insurance policy was issued. What happens if the policy covers a multi-building complex and one of the buildings is destroyed? The Eighth Circuit Court of Appeals recently addressed this issue. In Norwood-Redfield Apartments Limited Partnership v. American Family Mutual Ins. Co., No. 18-2618 (8th Cir. May 16, 2019)(Unpublished), the appeals court affirmed a judgment in favour of the insurance company denying the policyholder’s claim to recover the full value listed on the policy of an entire complex of buildings when only one of the buildings was destroyed. The policyholder sued its insurance carrier after a fire destroyed one of the buildings out of 32 in the complex. The insurance carrier paid nearly $3 million for the loss, but the policyholder wanted the policy limits of over $31 million.

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Valued Policy Law and Total Loss

inredisputesblog | May 21, 2019

Typically, a fire insurance policy pays a policyholder for the actual cash value or the replacement value of the property destroyed. But in 20 states, if there is a total loss, the amount the insurer must pay is equal to the value of the property at the time the insurance policy was issued. What happens if the policy covers a multi-building complex and one of the buildings is destroyed? The Eighth Circuit Court of Appeals recently addressed this issue. In Norwood-Redfield Apartments Limited Partnership v. American Family Mutual Ins. Co., No. 18-2618 (8th Cir. May 16, 2019)(Unpublished), the appeals court affirmed a judgment in favour of the insurance company denying the policyholder’s claim to recover the full value listed on the policy of an entire complex of buildings when only one of the buildings was destroyed. The policyholder sued its insurance carrier after a fire destroyed one of the buildings out of 32 in the complex. The insurance carrier paid nearly $3 million for the loss, but the policyholder wanted the policy limits of over $31 million.

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