Berkshire Hathaway suffers insurance underwriting slump in Q4

Berkshire Hathaway | February 24, 2020

Berkshire Hathaway Inc. may have bounced back big-time in the fourth quarter of 2019 – from a US$25.4 billion net loss in the same quarter in 2018 to net earnings attributable to shareholders of US$29.2 billion this time around – but the same can’t be said about the group’s insurance underwriting result. In a release over the weekend, the multinational conglomerate reported an operating loss of US$857 million for insurance underwriting. Berkshire’s insurance investment income; railroad, utilities, and energy; and other businesses all posted operating earnings in the quarter. For the full year, the insurance underwriting operations recorded a US$325 million operating income, which is significantly lower compared to the US$1.6 billion in operating earnings enjoyed in 2018.

Spotlight

No single insurer is spared by fraud. Globally, fraud is estimated to cost the insurance industry hundreds of billions of GBP per year. This figure isn’t just fraud on an individual or opportunistic scale, but also the result of insurance fraud networks who represent an industry unto themselves.

Spotlight

No single insurer is spared by fraud. Globally, fraud is estimated to cost the insurance industry hundreds of billions of GBP per year. This figure isn’t just fraud on an individual or opportunistic scale, but also the result of insurance fraud networks who represent an industry unto themselves.

Related News

CORE INSURANCE, INSURANCE TECHNOLOGY

Topa Insurance Company with Exavalu Enhances Agent Experience

Exavalu and Topa Insurance Company | February 06, 2023

Topa, an insurance company, has recently announced its implementation of Exavalu's digital engagement platform for agents to enhance the productivity and experience of insurance agents and increase its business growth. In addition, it will provide a user-friendly interface with quick quote generation, eligibility checks for multiple lined businesses, and first notice of loss (FNOL) features. With a history of about 30 years, Topa Insurance Company specializes in casual and commercial property insurance, serving quality products to managing general agents (MGAs), general agents, and wholesale brokers. Exavalu, a leading digital and advisory insurance solutions provider, integrates with different insurance platforms, rating engines, and third-party services, supporting insurance agents and policyholders. With its build on Amazon Web Services (AWS), it integrates with Topa's Guidewire InsuranceNow system through MuleSoft AnyPoint's application programming interface (API) gateway, offering necessary tools to enhance productivity. Global Insurance Solutions and Delivery Leader at Exavalu, Goutam Kanjilal, said, "Exavalu's Digital Engagement Platform offers insurers a modern and intuitive portal to engage with their agents and customers through flexible and feature-rich agent and customer portals. We are delighted to partner with Topa to provide exceptional digital experiences for its agents." (Source – Cision PR Newswire) About Exavalu Exavalu, a digital transformation advisory and solutions provider in the insurance industry, partners with top insurance companies, InsurTechs, TPAs, and MGAs worldwide by combining technology with insurance knowledge to automate the business of insurers' clients. Headquartered in Newport Beach, California, it has been building long-term relationships with clients and companies through innovation since 2018. It specializes in Microsoft Dynamics, Oracle, SAP, ERP, GDPR, CCPA, business and technology strategy, technological solutions, innovation, strategic advisory, data privacy, GRC and digital GRC, healthcare and life sciences, banking and financing services, and insurance. About Topa Insurance Company Topa Insurance Company is a wholly owned subsidiary of Topa Insurance Group and a member of Anderson Holdings, offering insurance products across the wholesale market and enhancing agility, operations, and profit for continuous growth. Headquartered in Calabasas, California, it specializes in property, specialty and casualty insurance with writing commercial, personal lines, and programs since 1984. In addition, it helps businesses to grow and distribute commercial and personal insurance products through its network of insurance agents and brokers.

Read More

RISK MANAGEMENT,INSURANCE TECHNOLOGY

Insurtech Company Vouch Introduces Policy for Web3 Companies

Vouch | December 27, 2022

Vouch, known as the 'Insurance of Tech,' recently launched the first insurance solution for Web3 companies. Under this, it will cover Web3 companies with insurance policies, including smart contract vulnerabilities, DAOs, crypto, and more. "The global insurtech market size is expected to expand at a compound annual growth rate (CAGR) of 51.7% from 2022 to 2030." - Grand View Research In the past year and a half, about 3,000 startups have raised almost $40 billion. Many of these are run by founders who are building strong companies that solve real problems for real users. Till now, Web3 companies had to settle for insurance that didn't meet their needs or make do with what they already had, which eventually slowed their growth. Vouch has become the most trusted partner by getting $160 million from the best companies in Silicon Valley. Its newest market includes Web3 companies, while Ansible Labs, Bitwave, Stardust, and Utopia Labs are some of its launch clients. Traditional policies tend to leave crypto out, but Vouch's Web3 Protection Policy covers that. In addition, the policy includes four coverages that can be expanded to cover key Web3 risks based on the needs of the client: Directors & Officers (D&O) insurance helps protect the company and the personal assets of its founders, officers, and board members from claims of wrongdoing, such as misrepresentation or breach of fiduciary duty, as well as the costs of responding to or defending against the claims. Errors and Omissions (E&O) insurance protects the company when a customer claims that the company's services caused them to lose money. Cyber: It helps pay for data breaches caused by mistakes, hacking, and social engineering. It also protects against privacy violations, security failures, and system failures. Crime: Helps protect the company from employee theft, forgery, and fraud, as well as some digital assets. Vouch has built a strong partner network to meet the needs of its Web3 customers in addition to its coverage. In the partner network, Fireblocks is responsible for direct custody technology, Silicon Valley Bank for banking, Upside for token management, and Tactic for accounting. AboutVouch Vouch Insurance is a new type of insurance platform for startups that is trusted by the startup industry's biggest names, including Y Combinator and Silicon Valley Bank. Everything has been designed for startups by experienced founders, from onboarding to claims. The company, which has offices in San Francisco and Chicago and whose fully digital coverage can be activated in minutes, assists clients in managing, mitigating, and avoiding risks.

Read More

INSURANCE TECHNOLOGY

Risk Strategies Acquires Bullen Insurance Group for Enhancement

Risk Strategies | February 14, 2023

On February 13, 2023, Risk Strategies, a national specialty insurance, risk management and consulting firm, announced its acquisition of Bullen Insurance Group, bringing the expertise and services for the specialized needs of high-net-worth individuals and families. Bullen Insurance Group is a specialty insurance brokerage and risk management firm designed for the insurance needs of successful family offices and businesses, individuals, and families, protecting valuable assets and property worldwide. In addition, it customizes insurance programs, addressing the complex risks of properties like automobiles, yachts, aircraft, and art collections exposed to natural disasters. With a personalized service approach, it has been helping industries, financial institutions, historic properties, and non-profit organizations, developing trust and loyalty for generations of clients and renowned commercial businesses. National practice leader for Private Client Services at Risk Strategies, Alison Murphy, said, "Effectively addressing the many complex risks faced by highly successful individuals and families requires deep expertise and dedicated specialization." She added, "Bullen Insurance Group has a well-earned, long-established reputation for excellence in serving high-net-worth clients and this provides us with a unique opportunity to expand our high-net-worth practice in a key market. I'm thrilled to welcome Matt and his team to Risk Strategies." (Source – Globe Newswire) President and CEO Matthew C. Fox said, "Given the firm's long history, and the trust our clients place in our service and knowledge, we wanted to be sure we were choosing the right partner to scale and perpetuate our business." He added, "The quality of the people and the operational platform we saw at Risk Strategies and their specialist approach to client service and collaboration gave us great confidence that we have found a partner that is aligned with our vision and will support our unwavering commitment to our clients." (Source – Globe Newswire) About Risk Strategies Risk Strategies, an insurance service provider, has been offering financial benefits and protecting assets since 1997. It is a privately held National Specialty Insurance Brokerage and Risk Management Advisor, minimizing liabilities of its assets. Headquartered in Boston, it is one of the oldest firms in the private equity industry, investing in the insurance sector and offering financial benefits, compensations, and employment. It provides solutions in specialty insurance, brokerage, private clients, transportation, surety, captives, group benefits, risk management, high-net-worth, employee benefits, property, and casualty.

Read More