What are the top casualty insurance concerns around the world?

Insurance Business America | April 22, 2019

Casualty insurance is a challenging but exciting line of business. That was the overriding message shared by Jason Richards, head of casualty underwriting reinsurance at Swiss Re, during his ‘Future of Casualty’ speech at the Swiss Re 2019 Canadian Insurance Outlook in Toronto. While some of the challenges and opportunities in casualty insurance reign true across global jurisdictions, others are very acutely geographic. Richards broke down the trends by region to paint a realistic picture of the global casualty insurance outlook. ASIA. Asia and the emerging markets around the world represent the vast majority of insurance growth in the next few years, according to Richards. Leading the way within those emerging markets is China, which is currently experiencing product innovation at a very high level, lots of competition, and low margins. “The government in China is continuing to promote insurance for society, with liability being one of the focal points. The local insurers in China are also focused very much on liability, firstly because there’s a big protection gap, and secondly because of the slip margins and low growth in the other mainline business, which is motor,” said Richards. “The Chinese insurers are hungry for new ideas, they’re hungry to learn from other parts of the world, and that’s something we [at Swiss Re] try to help them with.

Spotlight

Digital technology destroys value. That might sound counterintuitive given the extent to which it can make business systems more efficient and companies are urged to embrace its many possibilities. Yet new McKinsey research shows that although digital technology propels some companies to become clear market winners, for many more its impact depletes corporate earnings and the overall value of an industry. Consumers, not companies, are often the ultimate winners. So it is likely to be in insurance. For a long time, the traditional insurance business model has proved to be remarkably resilient. But it too is beginning to feel the digital effect. It is changing how products and services are delivered, and increasingly it will change the nature of those products and services and even the business model itself. We firmly believe that opportunities abound for incumbent insurance companies in this new world. But they will not be evenly shared. Those companies that move swiftly and decisively are likely to be those that flourish. Those that do not will find it increasingly challenging to generate attractive returns.

Spotlight

Digital technology destroys value. That might sound counterintuitive given the extent to which it can make business systems more efficient and companies are urged to embrace its many possibilities. Yet new McKinsey research shows that although digital technology propels some companies to become clear market winners, for many more its impact depletes corporate earnings and the overall value of an industry. Consumers, not companies, are often the ultimate winners. So it is likely to be in insurance. For a long time, the traditional insurance business model has proved to be remarkably resilient. But it too is beginning to feel the digital effect. It is changing how products and services are delivered, and increasingly it will change the nature of those products and services and even the business model itself. We firmly believe that opportunities abound for incumbent insurance companies in this new world. But they will not be evenly shared. Those companies that move swiftly and decisively are likely to be those that flourish. Those that do not will find it increasingly challenging to generate attractive returns.

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INSURANCE TECHNOLOGY

Protective Life to Acquire AUL to Add Complementary Portfolio to Asset Protection Division

Protective Life | March 22, 2022

Protective Life Corporation announced today that its subsidiary Protective Life Insurance Company (“Protective Life”) would acquire AUL Corp, a leading automotive finance and insurance provider. Protective Life Corporation is a well-known U.S. subsidiary of Dai‑ichi Life Holdings, Inc. With a national footprint of agents and dealers, an experienced team in the vehicle service contract business in addition to distribution channel growth opportunities in the higher-mileage and the financial institution space, AUL’s product portfolio is a strong complement to Protective’s Asset Protection Division. Our Asset Protection Division has grown steadily through acquisitions and organic growth over recent years. It continues to be an essential part of our business, and we look forward to continuing the momentum with the acquisition of AUL.” Rich Bielen, President and CEO of Protective. AUL is enthusiastic about the opportunity to join the Protective family. Combining Protective’s resources and reach with our rapidly growing platform will allow us to provide more robust solutions for our agents and dealers. Protective and AUL also align in our focus on culture and opportunities for our employees, contributions to our communities, and award‑winning customer service. We’re excited to move forward together.” Jimmy Atkinson, President and CEO of AUL. Protective Asset Protection will offer guaranteed asset protection and ancillary products to protect consumers’ investments in automobiles, recreational vehicles, extended service contracts, watercraft, and powersports vehicles. In addition to this, it will also offer an incredible portfolio of dealer participation programs solutions regarding training and technology through a network of general agents and a direct sales force. Meanwhile, Protective Asset Protection holds significant importance in the policy industry as it has served customers for 60 years by offering multiple and various insurance products. Whereas AUL, founded in 1990, is also a pioneer name in the industry and serves its customers with the finest solutions for insurance, service guarantee, and asset protection services. AUL is an established industry leader in the automotive finance and insurance space. It offers a full suite of products and services for agents and their dealers. Through this acquisition, we are excited to continue growing Protective Asset Protection by serving the needs of more agents, dealers, and consumers across the country.” Scott Karchunas, president of Protective Asset Protection. Therefore, subject to the receipt of regulatory approvals and satisfaction of customary closing conditions, the closing of the acquisition is anticipated to happen in the second quarter of 2022.

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INSURANCE TECHNOLOGY

GeoX partners with Sompo Japan to develop AI-based automated underwriting platforms

GeoX | February 18, 2022

GeoX, a leader in supplying geospatial data to insurers, has today announced a partnership with Sompo Holdings Inc., Sompo Japan Insurance Inc., and Sompo Risk Management Inc., specialty providers of property and casualty insurance and reinsurance with operations in the U.S. and 80,000 employees in 228 cities in 30 countries. This partnership will support Sompo Japan as it develops an automated underwriting methodology utilizing state-of-the-art AI technology. In recent years, advances in geospatial data technologies such as higher resolution and 3D satellite imagery have led insurers to use data in ways they had not previously considered. By combining GeoX's ground-breaking technology with Sompo's significant expertise and established global distribution networks, this partnership will fuel digital transformation within the insurance industry while enhancing customer experience. GeoX has the know-how and technology to provide reliable, high-quality intelligence for residential and commercial properties across the USA. Sompo Japan and GeoX have been working together since January 2021 on developing and introducing methodologies of assessing customer risks by utilizing external data and various advanced digital technologies. Since the completion of proof-of-concept, Sompo Japan has reached an agreement with GeoX to establish an insurance underwriting scheme utilizing this know-how. "In recent years, large-scale natural disasters have become more frequent and severe and the risk factors in disasters have become more diverse and complex, We look forward to working closely with Sompo Japan, as this partnership will analyze risk in the current landscape using a variety of external data and cutting-edge digital technologies. If knowledge is power in the insurance industry, AI is the key to that knowledge and with GeoX insights, it is more accessible than ever before." -Izik Lavy, Co-Founder and CEO at GeoX. "Sompo Japan has been a global leader in the application of modelling and data to casualty insurance with a strong commitment to the specialty markets, At this time of significant change across the business landscape, we must develop innovative responses to emerging and evolving risks. We look forward to this partnership, as it will drive positive change within the sector promoting the development of advanced insurance underwriting using geospatial data." -Yinnon Dolev, head of Sompo Digital Lab Israel & Europe at Sompo Holdings. About GeoX GEOX builds 3D property intelligence databases to help insurers assess risks more accurately, prevent losses, identify suitable properties for their portfolio, and to equip them better when claims occur, all while enhancing the customer experience every step of the way. Our proprietary 3D property intelligence derived from aerial imagery delivers data points for commercial and residential properties nationwide, from several roof geometry sources, to secondary structures and liability risks. And we deliver that rich, accurate property intelligence within seconds, at scale, and with no IT infrastructure requirements.

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INTELLECTUAL PROPERTY

Majesco Announces Launch of Insight Driven Underwriting Workbench - Majesco Digital Underwriter360 for P&C

Majesco | September 03, 2021

Majesco, a global leader of cloud insurance software solutions for insurance business transformation, today announced the launch of Majesco Digital Underwriter360 for P&C, a next-gen insight driven underwriting workbench for commercial and specialty lines. Majesco Digital Underwiter360, powered by Majesco Digital1st® Insurance is an intelligent, insight-driven cloud-native SaaS, that enhances underwriting efficiency and profitability, drives underwriter productivity and profitability, and creates greater transparency and collaboration with brokers. “In order for insurers to elevate the customer experience, they must make the underwriting processes more efficient, profitable and responsive,” says Manish Shah, President and Chief Product Officer for Majesco. “Built on Majesco Digital1st® Insurance no code/low code platform, Majesco Digital Underwriter360, leverages today’s leading technology to increase efficiencies and effectiveness, maximize underwriter’s expertise and improves collaboration between underwriters and brokers. Our relationship with KPMG to develop and deliver another next-gen digital solution built with the customer in mind brings a new level of innovation and capability to the industry.” SMA research highlights the expectations of insurance executives regarding the magnitude of changes coming… 80% of insurance executives expect underwriting to be significantly different than it is today within 5 years and 94% expecting significant change in 10 years. The expected changes expose the gaps between today’s capabilities and those required in the future and which Majesco Digital Underwriter360 addresses. "The potential for underwriting transformation in P&C is tremendous,” stated Deb Smallwood, Senior Partner at Strategy Meets Action. “Our research indicates significant recognition that this will take a new solution and set of technologies separate from policy management solutions. To make this great leap forward, insurers need new thinking on roles and processes coupled with a new digital platform that is advanced beyond the portals and workbenches of the past. Majesco Digital Underwriter360 represents an innovative new solution that will help revolutionize underwriting.” Majesco engaged KPMG LLP in the experience centric design and development of the solution using Majesco Digital1st® Insurance, a no code / low code platform with robust insurance content. This new, innovative solution focuses on better insights, increased productivity, and driving more seamless interactions for the underwriter. Some of the key capabilities include: Insight driven: Multi-level risk view, across the portfolio and line of business for digitally optimized risk assessment and management. Just in time, relevant information: Data and information pushed to the underwriter’s fingertips at the exact moment they need it to optimize underwriting. Intelligent data ingestion and extraction: Refine rules and leverage technologies like AI to collect, automate and analyze the data to provide a full picture of the exposures for a given submission. Portfolio Optimization: Prioritize, assess, and reinforce risk appetite across the portfolio of business through the use of data and a holistic view of risk. Broker Collaboration: Increased and predictable collaboration between broker/agent and underwriter creating full transparency and speed for quote. Streamline underwriter workflow and improve risk assessment: Automated, efficient workflow, routing and case management capabilities to optimize underwriting and improve risk assessment leading to better outcomes. Automated data prefills: Using a growing array of structured and unstructured data sources from InsurTech and traditional third-party data providers to optimize the underwriting process and maximize underwriter’s knowledge. Underwriting control and oversight: Using authority management to monitor and manage underwriting limits, risks and more to align to company guidelines and strategy. Core Integration: Pre-integrated with Majesco Core Suite for P&C and can easily be integrated with any other core solutions. “We're seeing a lot of activity in digital underwriting as a lynchpin component of modernization and transformation efforts,” stated Jeanne Johnson, Principal at KPMG LLP. “Leveraging a platform solution that connects insights across the underwriter’s interactions, and more easily integrates a rich mix of relevant data offers a path to more sustained value. Productive data, alongside digital enablement, machine learning, and Underwriter360, can address some longstanding pain points to better equip the underwriter talent - to better segment, predict, service, and deliver profitable growth that will continue to be a competitive differentiator.” As insurers continue to adopt the latest digital technologies, tedious and time-consuming underwriting processes still make it difficult to quickly respond to customer needs and expectations. Without a holistic and unified view, underwriters cannot access risk information to facilitate quick and calculated underwriting management. Majesco Digital Underwriter360, digitally enables technology and data proliferation that transforms how underwriters collect risk data, analyze it, perform multi-level risk assessment, and make decisions resulting in reduction of underwriter’s administrative workload. The increased efficiency and effectiveness in the underwriting process enables underwriters more time to be utilized in making key decisions and increase collaboration with distributors as opposed to spending time in core processes due to technologically challenged systems. It delivers a profitable underwriter process through centralized digital solutions that provide aggregation and mediation of business as well as system services, so underwriters don’t have to depend on multiple sources of disparate data. Underwriter360 is currently available for commercial and specialty lines with other lines of business to be considered in the future. About Majesco Majesco is the leading software partner to both the P&C and L&A insurance markets to modernize, optimize and innovate their businesses at speed and scale. Over 330 insurers, from greenfields, start-ups and MGAs to the largest insurers, reinsurers and brokers use Majesco’s next generation SaaS platform solutions of core, data and analytics, digital, distribution, absence management and a rich ecosystem marketplace of established and InsurTech partners to build the future of insurance. Our technology, expertise and leadership help insurers innovate and connect to build the future of their business. With over 825 successful implementations and over 65% of our customers on Cloud with Majesco platform solutions, together we have an amazing track record of innovation and real-world results.

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