BIBA report throws light on Insurance brokers' approach to renewal pricing

BIBA | July 13, 2020

Insurance brokers are working in their customers’ interests – that is the verdict of a new report from the British Insurance Brokers’ Association (BIBA). Teaming up with the Association of British Insurers (ABI), the report suggests that brokers and insurers are working together to benefit long-standing customers with the two organisations outlining a set of Guiding Principles and Action Points (GPAPs) meant to address the differences between new customer premiums and renewal premiums.

Spotlight

In a simpler time, this patchwork was passable. But change is coming. New regulations will bring greater complexity to the accounting process for insurers, which will make semi-manual, legacy processes look like a house of cards and raise doubts about the validity of the final numbers on the P&L sheet. That looming change, of course, is IFRS 17, the new International Financial Reporting Standard issued by the International Accounting Standards Board (IASB) in May 2017. It defines how accounting will be done by insurers in the more than 100 countries that adopted IFRS. IFRS 17 will replace IFRS 4 Phase II, which isn’t a comprehensive international standard but rather a structure for grandfathering in the use of countries’ national standards

Spotlight

In a simpler time, this patchwork was passable. But change is coming. New regulations will bring greater complexity to the accounting process for insurers, which will make semi-manual, legacy processes look like a house of cards and raise doubts about the validity of the final numbers on the P&L sheet. That looming change, of course, is IFRS 17, the new International Financial Reporting Standard issued by the International Accounting Standards Board (IASB) in May 2017. It defines how accounting will be done by insurers in the more than 100 countries that adopted IFRS. IFRS 17 will replace IFRS 4 Phase II, which isn’t a comprehensive international standard but rather a structure for grandfathering in the use of countries’ national standards

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Majesco Announces Latest Release to Majesco L&A Insurance Data & Analytics Platform

Insurance Data | September 30, 2020

Majesco, a global provider of insurance software solutions, today announced the launch of Majesco L&A Insurance Data & Analytics Platform, a powerful, data-driven solution that captures, analyzes and monetizes data to empower the L&A and Group Benefits business. The platform, which is pre-integrated with Majesco L&A Core Suite, leverages internal and external data with predictive and machine learning analytics to help insurers translate the data into transformational insights and actionable intelligence to meet the demands of their businesses today and tomorrow. In today’s digital age, data and analytics are the fuel for innovation and digital transformation, said Manish Shah, President and Chief Product Officer at Majesco. We want to enable carriers to leverage their operational and new, innovative sources of data that is both secure and easy to access, while putting insights directly in the hands of business to drive transformational, intelligent action. Our newly launched Majesco L&A Insurance Data & Analytics Platform provides a rich, robust solution to empower insurers to drive operational efficiency and effectiveness, as well as, innovation using these insights.

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ANNUITIES

F&G Selects Majesco to Accelerate Digital Transformation

F&G, Majesco | January 13, 2021

Majesco, global leader of cloud insurance software solutions for insurance business change reported that F&G, a main supplier of annuities and life insurance, has chosen Majesco Distribution Management, Majesco Digital1st® Insurance and Majesco CloudInsurer® to empower their distribution activity and development methodology for digital change. “In today’s competitive landscape, our ability to rapidly onboard numerous independent brokers, new distribution partners and support acquisition of books of business is crucial to our digital transformation strategy,” said Matt Christensen, SVP Insurance Operations at F&G. “We are proud to partner with Majesco to accelerate our digital transformation strategy better positioning F&G to capture opportunities and growth in a multi-channel world.” F&G will execute Majesco Digital1st® Insurance to give a cutting edge maker commitment experience for onboarding and self-administration and Majesco Distribution Management for maker relationship management and compensation management all on Majesco CloudInsurer®. “We are thrilled to have F&G join our customer community and help them accelerate their digital transformation and growth strategy with our next generation distribution solutions,” stated Eric Bustos, Vice President of Digital1st® and Distribution Management at Majesco. “As the insurance market rapidly changes, the distribution landscape is where insurance providers can create and sustain a competitive edge and where our solutions provide the next generation capabilities, today. We look forward to a long strategic partnership with F&G.” Majesco Distribution Management offers a cutting edge answer for deal with the complexities of a changing distribution landscape utilizing innovation that keeps the insurance suppliers on the main edge by lessening an opportunity to execute another distribution plan or merge the current channel landscape onto a typical stage. From dealing with different channels, to handling mind boggling and high-volume changes, and customizing installment plans for channels, to obliging reconciliation with existing center insurance frameworks, Majesco Distribution Management empowers spryness, advancement and speed. About Majesco Majesco provides technology, expertise, and leadership that helps insurers modernize, innovate and connect to build the future of their business and the future of insurance at speed and scale. Our platforms connect people and businesses to insurance in ways that are innovative, hyper-relevant, compelling and personal. Over 200 insurance companies worldwide in P&C, L&A and Group Benefits are transforming their businesses by modernizing, optimizing or creating new business models with Majesco. Our market-leading solutions include CloudInsurer® P&C Core Suite (Policy, Billing, Claims); CloudInsurer® LifePlus Solutions (AdminPlus, AdvicePlus, IllustratePlus, DistributionPlus); CloudInsurer® L&A and Group Core Suite (Policy, Billing, Claims); Digital1st® Insurance with Digital1st® Engagement, Digital1st® EcoExchange and Digital1st® Platform a cloud native, microservices and open API platform; Distribution Management, Data and Analytics and an Enterprise Data Warehouse.

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CLAIMS

Core Specialty Completes Merger with Lancer Insurance Company

Core Specialty Insurance Holdings, Inc. | January 03, 2022

Core Specialty Insurance Holdings, Inc. and its subsidiaries ("Core Specialty" or the "Company") and Lancer Insurance Company ("Lancer"), both specialty property and casualty ("P&C") insurers, announced today the completion of the merger combining the companies in a stock and cash transaction, which was previously announced on April 16, 2021. Lancer brings Core Specialty over 35 years of specialty commercial auto expertise that extends the capabilities of Core Specialty's existing diversified range of specialty P&C insurance products. This combination joins two highly complementary businesses with a shared strategic vision to become the leading specialty P&C insurer. The companies previously partnered in January 2021 to launch a new excess transportation program. The post-merger Core Specialty will be a further diversified company with an attractive business profile, a clean balance sheet and over $1.1 billion in equity capital. This merger with Lancer marks Core Specialty's first merger or acquisition since the recapitalization of StarStone U.S. in November 2020. The combined Lancer and Core Specialty have approximately 600 total employees. Lancer, which has been a leading provider of premier specialty insurance solutions to businesses and commercial transportation companies across the U.S. for over 35 years, will retain its brand, management team and operating locations. Lancer and Core Specialty are working together to ensure all policyholders continue to receive industry-leading products and services, and to align the combined operations in the best interests of customers, agents, brokers, and employees. Core Specialty operates through a business unit philosophy that allows its Divisions local decision-making for underwriting, claims, and policy servicing with a high degree of autonomy and full accountability. Lancer shareholders received a combination of Core Specialty common shares, preferred shares and cash in the merger. The newly issued Core Specialty preferred shares will mandatorily convert into common shares upon a Core Specialty initial public offering or certain other specified events. In addition, Lancer's existing shareholders will retain the financial impact of development on Lancer's existing reserves for losses and loss adjustment expenses over a five-calendar year period within a specified symmetrical range. The transaction is expected to be accretive to Core Specialty's earnings per share and return on equity in 2022. Jeff Consolino will continue to lead the combined company as President and CEO and Ed Noonan will continue as Core Specialty Executive Chairman. Dave Delaney, Lancer's CEO, has joined the Board of Core Specialty and will work closely with Mr. Consolino and senior members of the Lancer and Core Specialty teams in the integration of the businesses. The Core Specialty Board of Directors will comprise the current Board with the addition of Mr. Delaney. Matthew Jenkins, Lancer's President & Chief Operating Officer, will serve as President of Core Specialty's Lancer Division. Dave Delaney, Co-Founder and CEO of Lancer, said, "All of us at Lancer are excited to join forces with Core Specialty. Core Specialty's management team is exceptional, and our friendship with Jeff Consolino, Ed Noonan and members of Core Specialty's Board goes back a very long way. I have no doubt Lancer and Core Specialty's combined operating and financial resources will create tremendous growth opportunities for our shareholders, employees, policyholders and distribution partners." "I have known Dave Delaney for over 30 years. He is an excellent specialty P&C insurance operator, and I am excited that he will be joining the Core Specialty Board. We have assembled a Board for Core Specialty comprised of company founders and business builders which we believe is second to none, and Dave's talents will add meaningfully to our Board. We are also pleased and honored that after decades of building Lancer as an independent, family-controlled enterprise that Dave and his co-shareholders have the confidence in Core Specialty's management, business plan and investors to exchange their Lancer equity for the opportunity to join their future prospects with ours," - Ed Noonan, Executive Chairman of Core Specialty. Core Specialty Update Since the June 30, 2020 agreement by Core Specialty to recapitalize StarStone U.S., the Company has grown from four business units to nine through: forming a new Excess & Surplus Property Division, establishing a Marine and Energy Division from the StarStone London managed business, separating and hiring new leadership for our Errors and Omissions Professional Liability and D&O Management Professional Liability Divisions, initiating an Agriculture Division and completing the Lancer merger. Core Specialty's gross premium written for the twelve-month period ended September 30, 2021 was $1.7 billion and pro forma for the Lancer merger would be $1.9 billion. About Core Specialty Core Specialty offers a diversified range of property and casualty insurance products for small to midsized businesses. From its underwriting offices spanning the U.S., the Company focuses on niche markets, local distribution, and superior underwriting knowledge; offering traditional as well as innovative insurance solutions to meet the needs of its customers and brokers. Core Specialty is an insurance holding company operating through StarStone Specialty Insurance Company, a U.S. excess and surplus lines insurer, and StarStone National Insurance Company, a U.S. admitted markets insurer. About Lancer Insurance Company Lancer Insurance Company has been a leading provider of premier specialty insurance solutions to businesses and commercial transportation companies across the U.S. for over 35 years, leveraging a network of over 2,000 broker relationships. Lancer specializes in auto liability, physical damage, cargo and general liability coverages. Lancer has consistently received an A- (Excellent) rating for financial strength and stability by AM Best, one of the most recognized rating systems in the insurance industry.

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