Beazley | June 12, 2020
Beazley has announced the launch of a new occurrence media liability policy that covers many risks faced by small to medium-sized media outlets and publishers in the US.
Beazley’s new policy provides professional indemnity cover written on an occurrence basis.
In addition, the policy offers optional coverage for technology errors and omissions, information security and privacy, and bodily injury or property damage.
Specialist insurer Beazley has announced the launch of a new occurrence media liability policy that covers many risks faced by small to medium-sized media outlets and publishers in the US.
“The media landscape has changed considerably in the last decade,” Beazley said. “As traditional publishing and media groups have moved increasingly online, freelancers who solely publish online, including bloggers, vloggers and social influencers, are growing in number and reach. As the public looks to a wide range of sources for content, the media sector has become more crowded and awareness of the risks associated with publishing varies widely.”
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Beazley’s new policy provides professional indemnity cover written on an occurrence basis. The coverage focuses on defamation, libel and slander, and infringement of copyright and trademark. It also includes a range of other content-related exposures. The policy also includes unintentional breach of contract with a client and mitigation costs (sub-limited) to minimize claims escalation.
In addition, the policy offers optional coverage for technology errors and omissions, information security and privacy, and bodily injury or property damage arising out of the publication of content.
The US media sector is undergoing substantial changes, with the launch of new channels for publishing and broadcasting and the growing reach of bloggers, vloggers and social influencers, Freelance publishers and start-up media ventures ought to be aware that they are as liable as traditional, established media groups for the content and materials they publish or share. They face a range of exposures including defamation, intellectual property and privacy, and should consider the precautions and cover they need to protect themselves against potential claims.
- Angela Weaver, global head of media liability for Beazley.
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The new policy covers various media professionals including publishers, broadcasters, authors and journalists, bloggers, vloggers, social influencers and content creators, and advertising producers and advertising agencies. Limits of up to $5 million are available on a worldwide basis.
Beazley plc is the parent company of specialist insurance businesses with operations in Europe, the US, Canada, Latin America, Asia and Australia. Beazley manages six Lloyd’s syndicates and, in 2017, underwrote gross premiums worldwide of $2,343.8 million. All Lloyd’s syndicates are rated A by A.M. Best. In the US, our underwriters focus on writing specialist insurance products in the admitted market, backed by Beazley Insurance Company, Inc., an admitted property/casualty carrier in all 50 states; and surplus lines risks, backed by the Beazley syndicates at Lloyd’s. Beazley Insurance Company, Inc. is rated A by A.M. Best.
Balance RE | September 01, 2021
Balance Re, the life reinsurance start-up specialised in quantitative asset-liability management, today announced it has raised $10m in Series A funding from leading financial services investor Anthemis Group, with participation from Global Brain and the company's existing investors, Roland Berger Industries GmbH and Talabot Finance.
Balance Re offers comprehensive reinsurance solutions to life insurance companies and pension funds to support capital management related to their retirement and saving products. The Series A investment will be used to further develop Balance Re's proprietary asset-liability management technology and to support its fully licensed German reinsurance company based in Cologne.
In Balance Re's launch market, Germany, Solvency II's transitional measures represent on average ca. 150 percentage points of life insurers' solvency capital ratios. Balance Re's technology-first and data-driven approach to reinsurance instead enables its clients to release capital to fund growth, support product repositioning and improve (or regain) a competitive advantage. Thanks to real-time risk management capabilities, Balance Re is the first reinsurer able to offer to its clients easy-to-implement and cost-efficient reinsurance solutions which transfer the challenging interactions of financial and insurance risks.
Balance Re's new shareholders, Anthemis and Global Brain, bring in-depth knowledge of the insurance sector and expertise in technologies dedicated to the financial industry, ideally complementing the experience of Balance Re's initial investors rooted in investment management and corporate strategy.
Lucian Rautu and Michel Gauer, the founders of Balance Re, commented: "We are delighted to welcome Anthemis and Global Brain in the capital of Balance Re and at the Board. Their deep industry knowledge and capacity to take an "outside-of-the-box" approach to venture investments in the insurance space make them the perfect partners to disrupt the life reinsurance market".
Matthew Jones, Managing Director at Anthemis, said "Balance Re's team and their technology reflect the complex interactions between actuarial, financial, accounting and regulatory matters. Balance Re's coverage is designed to help clients reach their strategic goals whilst also keeping the interests of their policyholders in mind – we're excited to see them drive much-needed change in the life reinsurance sector."
Naoki Kamimaeda, Partner at Global Brain, said "We believe that the technology developed by the Balance Re team has far reaching applications beyond life reinsurance and Europe. We are enthusiastic to join them at this important stage of the journey and look forward to helping them realise their vision to improve the management of long-term insurance and pension liabilities globally."
About Balance Re
Balance Re tackles one of the most fascinating problems of life insurance: managing the complex interactions between insurance and financial risks. These problems exist in a multifaceted environment spanning actuarial, financial, accounting, and regulatory matters. To operate at the crossroad of so many fields, Balance Re takes down the cultural silos between insurance, investment, and technology to blend the expertise required to solve its clients' needs for truly comprehensive risk transfer.
Anthemis cultivates change in financial services by investing in, growing, and sustaining businesses committed to improving the world. We are founded on three guiding principles — authentic collaboration, virtuous cycle outcomes, and diversity and inclusivity and our deep understanding of markets and models, passion for emerging technology and values inspire everything we do. By creating fertile ground for a diverse group of start-ups, investors, entrepreneurs, institutions, academics, and visionaries to converge, we believe we can solve the financial services world's most pressing challenges faster, better and for the benefit of all.
About Global Brain
Global Brain is an early-stage venture capital firm based in Tokyo. It supports start-ups that tackle pressing problems, create innovation, and contribute to the stimulation of the Japanese economy and beyond. Its high-achieving, experienced professionals identify excellent start-ups through multiple global locations in Europe, US and APAC, and provide hands-on growth support. Global Brain's total asset under management is over US$1 billion, making it the largest domestic independent venture capital firm.
Just Auto Insurance | May 13, 2020
Just Auto Insurance launched pay-per-mile auto insurance product in Arizona.
This is the new telematics-based solution targets lower income consumers with a quick prepaid product.
Just’s pricing model is based on an advanced in-house telematics model, using high resolution data from more than 12,000 drivers.
A brand-new, pay-per-mile auto insurance product has launched in Arizona. Released by Los Angeles-based insurtech, Just Auto Insurance, Inc. (Just), the new telematics-based solution targets lower income consumers with a quick prepaid product, which calculates premium based on individual risk, not demographic correlations.
Just was founded in 2019 by Robert Smithson, Greg Ferkel and Murray Macdonald, with a twofold mission: to increase the availability of auto insurance, and to use technology to make the roads safer. Their flagship product is unlike other telematics-based, pay-per-mile solutions in the marketplace in that it targets lower income consumers – those whom CEO Robert Smithson says are “poorly served by existing carriers.”
Lower income consumers are the people who are most likely to be discriminated against as part of the traditional auto insurance quote process. They’re more likely to live in zip codes with high auto insurance rates, and they’re also likely to be more dependent on their car rather than less dependent, because they’re unlikely to be able to afford other transportation options like Uber.
- Robert Smithson, CEO Just Auto Insurance.
“Most egregious of all is the use of credit scores in setting auto insurance rates. Insurers use credit scores because they’re a good proxy for risk. If you’re 25-years-old, earning $50,000 a year and you have a bad credit score, you’ve got that because you like taking risks. If you’re 40-years-old, earning $22,000 a year, and you’ve got a bad credit score, it’s because you’re trying to get by on a low income and not because you’re somebody who likes taking risks.”
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Just’s pricing model is based on an advanced in-house telematics model, using high resolution data from more than 12,000 drivers. By combining driver telematics data with contextual information such as driver fatigue, distraction, traffic flow and weather, the firm says it can predict individual driver risk with higher accuracy than those firms using demographics data alone.
“Like traditional auto insurers, we use a demographics element, but we keep it to the absolute bare minimum of things so that just a very small number of variables determine the vast majority of your quote,” Smithson told Insurance Business. “The initiation quote is based on where you live, what car you drive, how old you are, what sex you are, and whether you have any active violations. We don’t ask for highest level of education achieved, if you’re married or have children, because those questions make such a tiny difference to pricing, and we’d rather simplify the process for people.
“Last year, we paid 12,000 people to drive for us for about four months so we could collect high resolution telematics data to build a pricing model. One thing we discovered, which I think is very interesting, is that while many existing telematics products looked only at whether you were speeding or going a certain amount above the speed limit, we found there was no meaningful correlation between people who sped from time to time, and people who had accidents. The reason a driver might not speed is because the roads they travel on most days are busy, and so they have no chance to speed.”
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Rather than focusing on speed, the Just solution looks at how drivers change their driving habits according to the conditions. The theory is that somebody who drives at 80 miles-per-hour on a freeway when it’s empty and the conditions are great, and then 50 miles-per-hour when the conditions are bad, it’s raining and the road is congested - they’re probably a good driver because they’re changing how they drive according to the conditions. On the other hand, somebody who drives at 50-miles-per-hour all the time, even though they might never be breaking the speed limit, is more likely to have an accident, according to Smithson.
Just offers a 30-day policy term, during which drivers will pay $X per mile. For example, a driver might pay an initial rate of eight cents per mile for 30 days. Once that policy term is over, the firm will offer a new policy with a new rate, which will reflect how the customer drove in the prior policy term. The aim is to provide safe drivers with a lower premium, thus helping consumers to lower their auto insurance pricing while also becoming better drivers. Through the Just app, drivers will also have access to real-time driving feedback, which the firm hopes will also encourage safer driving.
State insurance departments tend not to like the idea of premiums changing. They like people to have visibility on what they owe. Lots of auto insurers have solved this problem by offering customers a base rate, and then if they drive well, they give them a discount, We don’t offer discount like that. By adjusting our premium per month, we’re able to have a much wider range of prices for people. Really good drivers might be paying as little as two or three cents per mile, whereas really bad drivers - and we saw some really bad drivers in our BETA program - could well be paying upwards of 70 cents per mile. It’s simple. If you drive well, you’ll see that reflected the next month in your premium.
- Robert Smithson, CEO Just Auto Insurance.
Just’s telematics-based offering officially launched in Arizona on March 24, 2020. The firm plans to launch in several more southwestern states, including New Mexico, Texas, Colorado and Utah, at the beginning of 2021. Smithson added: “We know auto insurance is an industry where it’s very important to have agency distribution, so we’re also planning to develop an agent channel in time.”
About Just Auto Insurance, Inc
Just Auto Insurance Inc., is a fast-growing start-up, looking to revolutionize the automobile insurance industry by providing data driven, pre-paid, pay-per-mile car insurance.We make roads safer. Our transparent model means that drivers know exactly when they are doing things that increase their risk of accident, and exactly how this will impact their cost of insurance. Higher risk driving means higher cost insurance.