Need to get a leveraged project of the ground? You may well need the help of the worldwide insurance market. Credit enhancement insurance and other techniques are increasingly being used to help oil the wheels of capital allocation and spreading the risk. Those of you who regularly read my Lending column on Fridays will know…
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Part 1 discussed ways in which carriers are reorienting themselves with the long-term view on climate change. In this final Part 2, read about the differentiated approaches that leading insurtechs are adopting. John Neal, CEO of Lloyds market opines, “Climate is the ultimate systemic risk and represents the biggest single opportunity the insurance industry has…
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A study of insured losses over the last half century reveals that weather-related events have significantly escalated compared to non-climate perils. Between 2010 and 2019, global insured losses from wildfires increased by 500%. On the other hand, the humanitarian aid deficit grew from a little under a billion dollars two decades ago, to $4 billion…
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Globally, insurers contend with numerous distribution challenges — whether it is by virtue of the shift to remote sales networks or from balancing tech-assisted and human sales. Artificial intelligence (AI) is known to create seamless and personalized experiences with solutions ranging from lead prioritization to automated underwriting. Evidently, the most impact from AI, with as…
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Insurers seemingly don’t attract the adulation they deserve from investors. Despite a core subset of insurers delivering strong operational results, share-to-price performance has largely lagged other financial companies. The KBW Nasdaq Insurance Index (KIX), which reflects performance of US carriers, has trailed performance of the Financial Select Sector SPDR Fund (XLF), which tracks financial-services companies,…
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During its quarterly earnings call, Tesla divulged the launch of its telematics insurance in Texas. Tesla Insurance rolled out a Safety Score program, with plans to actively track driver behavior to presage the likelihood of a collision. The program will be fine-tuned as they receive more data, ostensibly setting them apart from competition in the…
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Initially conceptualized for fintech, regulatory sandbox programs have since expanded to other areas. These sandboxes benefit innovators by allowing government regulations to be exempted in usage of new technologies and innovations, until regulators can ascertain the product or service is useful. Buffeting specific themes for new products, sandboxes stimulate business growth and serve to launch…
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Until the end of this decade, Asia is expected to account for half of global consumption growth, presenting a $10 trillion opportunity. Half of upper-middle income households are expected in Asia, with one in every two consumer transactions likely to be generated from the region. The consumer markets are changing with new growth avenues for…
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Life insurance ownership has seen a decline in the recent past. There was an estimated $25 trillion gap between coverage purchased and needed in the event of a loved one’s death in 2016, in the US alone. Suboptimal processes might have contributed to this shortfall. Consider something as basic as getting a physical examination, often…
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With the spread of digital claims, major changes are upon us, such as rising adoption in virtual estimates for auto and property claims and telemedicine for injury claims. For simple claims, fully digital processes are taking center stage with claims staff tasked with covering blind spots from artificial intelligence (AI) and ensuring superior customer experience.…
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