Kelly Lau

A new survey study shows that consumers are interested in insurance products that are part of Amazon and Tesla's offerings. According to Guidewire's Insurance Consumer Survey 2024, four out of ten consumers would feel okay buying insurance from brands like Ikea, Amazon, or Tesla. About 34% of customers are unsure about getting insurance from these brands, while only 13% feel uncomfortable with it. These comfort levels are similar to those from the 2023 survey. Guidewire Software is a top software company that helps businesses improve and manage their operations. They focus on solutions for the property and casualty (P&C) insurance market. Guidewire provides software for policy, billing, and claims management, which can be customized to meet insurers' needs. Read more: https://lnkd.in/gF_SNmsE #Insurance #InsurTech #Amazon #Tesla #ConsumerSurvey #Guidewire

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This report offers a compelling look at telematics in motor insurance pricing. As I've often said, telematics improves the management of revenue, margin, and volume while reducing anti-selection and moral hazard. But it’s more of a product innovation than a pricing change. I'm still undecided on whether insurance rating processes penalise protected characteristics like ethnicity. The report shows telematics data slightly reduces reliance on sociodemographic factors but doesn't eliminate them. Notably, rates from telematics models still correlate with sociodemographic factors. It's encouraging to see academics analysing insurance pricing with real-world and synthetic data. The paper prompts an important question: Is telematics more transparent to non-pricing professionals? What do you think? The Price Writer free masterclasses are regularly rated over 4 stars. Join us for the next one. It will be hosted by special guests from Quantee. I am looking forward to seeing you there! 🌐 Where: Virtual 📅 Date: Tuesday 29th of October ⏰ Time: 10 - 10.30 am London/UK time 💻 Register: https://lnkd.in/e5EHihNi Why Attend? ✅ Free ✅ Expert Insight ✅ Prize Draw: One lucky participant will win a year-long membership in our comprehensive training program, valued at £299 #InsurancePricing #GeneralInsurance #PandCInsurance #PriceWriter The paper's author Jean-Philippe Boucher was contacted for comment.

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Let’s change the #telematics storytelling‼️ ▪️ telematics data quality has improved over the past decade (and the cost has decreased) ▪️ risk models have improved (some tarif filings are pretty impressive compared with a few years ago) ▪️usage of data for additional use cases as claim management starts (finally) to emerge (both Progressive and Allstate have extended crash detection to all the policyholders, not only the UBI ones) …𝐛𝐮𝐭 𝐭𝐡𝐞 𝐦𝐚𝐫𝐤𝐞𝐭𝐢𝐧𝐠 𝐦𝐞𝐬𝐬𝐚𝐠𝐞 𝐨𝐟 𝐔𝐁𝐈 𝐡𝐚𝐬𝐧’𝐭 𝐜𝐡𝐚𝐧𝐠𝐞𝐝 𝐚 𝐛𝐢𝐭 𝐨𝐯𝐞𝐫 𝐚𝐥𝐥 𝐭𝐡𝐞𝐬𝐞 𝐲𝐞𝐚𝐫𝐬 The sector can definitely do better!!! Here my perspective 👉🏻https://lnkd.in/dJTyrP5n What do you think? #iotinsobs

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The article should have been titled "Why actuarial expertise is now low key for insurers". If you are an auto MGA or carrier in California and you had combined ratio that averaged under 96% the last 3 year then you get it. Others who don't have a combined ratio under 100 appear to grasping at needles in a haystack. Why? One reason is actuarial expertise appears to be grounded in flawed principles. Historically we've calculated premiums based on data assumptions. If a man has drivers license for 20 years he must be a better driver than man with license for 2 years. That could be correct. But it could also cause you to run in the red. Every company know that a "me too" filing doesn't guarantee "me too" profitability. Having a better understanding of the risk and pricing it appropriately can. Actuarial expertise incorporates a deep understanding of our industry. It should also be grounded in a deep understanding of consumer you are serving. The integration of data science will hopefully can take insurers from insurance dinosaurs. The article doesn't really explain how. They would like you to spend money with the article's sponsor to get any real insight. How can change your destiny from a future similar to dinosaurs of the past? Learn how to improve every touchpoint with AI. Learn how to increase employee engagement with AI. How do we start? Examine workflows. Examine high frequency communication with policy holders. Remember everything is a data point, but not all data provides insight. Actuarial expertise is framed in 20th century experience. The chart below was taken from a study done last year by Statista. We have way too much to process each day. Improve your team's ability to impact your organization you will improve your ratios. Improve your client experience you will improve your ratios. Despite some opinions, you can't control severity. You can however use AI to dynamically improve your modeling without the need to constant rate filings.

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*** Texas Sues GM for Allegedly Collecting Drivers’ Data, Then Selling it to Insurers *** Excerpts from the Insurance Journal article: @general motors ⭐️has been sued by the state of Texas, ⭐️which accused the automaker of installing technology ⭐️on more than 14 million vehicles ⭐️to collect data about drivers, ⭐️which it then sold to insurers and other companies ⭐️without drivers’ consent. Paxton said GM’s data were used to compile “Driving Scores” assessing whether more than 1.8 million Texas drivers had “bad” habits such as ❌speeding, ❌braking too fast, ❌steering too sharply into turns, ❌not using seatbelts and ❌driving late at night. Insurers could then use the data when deciding whether ⭐️to raise premiums, ⭐️cancel policies or ⭐️deny coverage, Paxton said. Paxton said GM’s practice was for dealers to ⭐️subject unwitting consumers ⭐️who had just completed the stressful buying and leasing process ⭐️into believing that enrolling in its OnStar diagnostic products, which collected the data, was mandatory. Paxton said in a statement. “Our investigation revealed that General Motors has engaged in egregious business practices that violated Texans’ privacy and broke the law. We will hold them accountable.” “ #motor #insurance #insurancenews #data #privacy https://lnkd.in/g4SXiqcT

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The Insurance Institute for Highway Safety / Highway Loss Data Institute recently introduced a new ratings program to gauge the safety of partially automated driving systems. Its initial round of testing revealed that most systems don’t include adequate measures to keep drivers from losing focus on what’s happening on the road. For example, many vehicles don’t monitor whether a driver’s eyes are directed at the road, or their hands are ready to take over steering. While no vehicle’s partially automated driving system is knocking it out of the park, some are close and could be only a couple software updates away from passing the IIHS safety test. #AutomatedDriving #HighwaySafety #AutoInsurance #CarInsurance #DistractedDriving #SafeDriving

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Telematics might be the key to fairer car insurance rates. It might also be a data privacy disaster waiting to happen. Telematics adoption lags behind its apparent demand: Americans say they want car insurance rates based on how they actually drive (not a statistical analysis of strangers), but many don’t sign up for telematics discount programs given the chance. Why? Anecdotal evidence points to a simple answer: People are uncomfortable giving insurance companies the level of data access needed to make telematics discounts work. It turns out, telematics is still a bit of an insurance Wild West: lots of big ideas, few rules and regulations. For most Americans, getting a telematics discount means trusting your insurance company to responsibly collect and use a vast bank of your personal data, including geolocation data, to calculate the cost of your auto coverage. Cautious consumers can be forgiven for asking the question: Is the discount really worth the risk? I wrote about it for Bankrate. But I also want to hear from you: Have you enrolled in a telematics program, or did you choose to skip the discount? In the cost-benefit analysis of savings vs. privacy, where do you fall?

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Rideshare drivers? Here's a must-read. Check out how VOOM Insurance's mission aligns with and solves the significant challenges facing Uber and Lyft drivers today, especially the soaring auto insurance rates, as reflected in the recent Insurify rideshare trends report #Rideshare #Uber #Lyft #Insurance #VOOMInsurance #InsurTech #Innovation #AutoInsurance, The Rideshare Guy, Harry Campbell, Levi Spires, John Manall ,Gridwise

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🔌Electric vehicles have emerged as a critical risk for auto insurers. EVs ranked among the top eight issues in Verisk’s Emerging Issues Bracket Challenge for the past two years and will likely continue to be a focal point as we see more on the road. Due to the infancy of EVs in the auto insurance space, insurers face challenges in accurately pricing their risk due to limited data. Discover our latest insights on EVs: https://ow.ly/upFE30sFQWr #ElectricVehicles #EVs #AutoInsurance #EmergingIssues

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🔌Electric vehicles have emerged as a critical risk for auto insurers. EVs ranked among the top eight issues in Verisk’s Emerging Issues Bracket Challenge for the past two years and will likely continue to be a focal point as we see more on the road. Due to the infancy of EVs in the auto insurance space, insurers face challenges in accurately pricing their risk due to limited data. Discover our latest insights on EVs: https://ow.ly/qSTM30sFM09 #ElectricVehicles #EVs #AutoInsurance #EmergingIssues

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A new report from CCC Intelligent Solutions shows that the amount of time vehicles spend in repair shops after an estimate has increased by 60% compared to pre-pandemic times. A variety of factors explain the increase, including increasing vehicle complexity, scheduling backlogs, and rising labor costs and shortages. “New findings show that while vehicles may be safer, more capable of avoiding crashes, and more environmentally friendly, advanced technology is contributing to costlier repairs, higher claims costs, and longer cycle times.” At Mutual of Enumclaw, we find that navigating these challenges is all about communication. When our members know about repair times upfront—and understand the “why” behind them—we ensure a smoother claims process from start to finish. #InsuranceClaims #AutoInsurance #EVs #AutoIndustry #CollisionRepair

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Join our expert panelists to learn about the latest trends in driver risk and get a free copy of SambaSafety's Driver Risk Report!

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New data from Guidewire HazardHub highlights that many U.S. states face high wildfire risks, with California, Oregon, and Colorado having the highest number of homes at risk (based on the number of homes receiving an “F” for wildfire risk). Read a news report from CBS KKTV 11 News in Colorado Springs that leverages HazardHub data and covers the state's high-risk status underscoring the need for wildfire preparedness. https://lnkd.in/gqm2FsPW HazardHub's Enhanced Wildfire Score and other detailed HazardHub data and risk scores are accessible to insurers through Guidewire’s apps, including PolicyCenter and InsuranceNow, and via the HazardHub API. Consumers interested in learning about their home’s risks can visit freehomerisk.com.

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“It comes down to rep happiness… if I can help a rep be better at their job and feel better about the work they are doing through the use of AI or Generative AI that’s a win, a huge win for the organization”. – Mike Fiato, EVP Chief Claims Officer, Allstate Hear more from Mike in his interview with Reuters Events – Watch the full 15-minute interview here: https://lnkd.in/eAHgAuRb - What is currently propelling the claims industry and what the most important factor for carriers to focus on is - How claims teams can do more, when they are already doing so much, to fix the leakage in CX - What claims teams should be doing to embrace and transform with AI and GenAI - How we can predict and prevent the future rise of claims costs *Adam Miller *Reuters Events #CCUSA #Claims #GenAI #CX

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“It comes down to rep happiness… if I can help a rep be better at their job and feel better about the work they are doing through the use of AI or Generative AI that’s a win, a huge win for the organization”. – Mike Fiato, EVP Chief Claims Officer, Allstate Hear more from Mike in his interview with Reuters Events – Watch the full 15-minute interview here: https://lnkd.in/eAHgAuRb - What is currently propelling the claims industry and what the most important factor for carriers to focus on is - How claims teams can do more, when they are already doing so much, to fix the leakage in CX - What claims teams should be doing to embrace and transform with AI and GenAI - How we can predict and prevent the future rise of claims costs #CCUSA #Claims #GenAI #CX *Adam Miller

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Obviously lots of chatter about CDK and the importance of contingent biz interruption. Let's take a different angle and look at things from the Tech E&O perspective. Cyber insurance penetration in the dealership vertical is probably close to national average and contingent biz interruption is likely not present in the majority of the policies out there. So... I'm guessing there are thousands of dealerships with material losses that have no collectable insurance. This means there's probably thousands of dealerships that are eager to seek compensation from CDK. Tech E&O policies are built to protect tech companies against claims of negligence, errors, and/or omissions in the delivery/performance of their technology products/services. Dealerships might claim that CDK failed to maintain adequate cybersecurity, leading to the ransomware attack and the resulting interruption. CDK's Tech E&O policy would likely cover the costs of defending against such claims and pay any resulting judgments or settlements. I got a copy of a CDK MSA which contains a disclaimer of warranties, a limitation of liability, an indemnification clauses, and mandatory arbitration. These are key contractual controls for any tech company, but they might not be enforceable if CDK is found to have been grossly negligent in its cybersecurity practices. We can only hope that CDK is able to dodge or limit its legal liability, they purchased adequate Cyber/Tech limits, the affected dealerships had adequate cyber cover, that CDK had a tested IRP, that the dealerships had BCPs for this dependency. Regardless... the reputational damage from this attack is going to be intense.

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𝐔𝐒 𝐂𝐚𝐬𝐮𝐚𝐥𝐭𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐔𝐩𝐝𝐚𝐭𝐞 – 𝐎𝐜𝐭𝐨𝐛𝐞𝐫 𝟐𝟎𝟐𝟒 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐝 𝐀𝐮𝐭𝐨 𝐑𝐚𝐭𝐞𝐬: Auto rates continue to rise, particularly for fleets with larger vehicles or challenging loss histories. Double-digit increases may become the norm due to the ongoing frequency of large claims. 𝐄𝐱𝐜𝐞𝐬𝐬 𝐂𝐨𝐯𝐞𝐫𝐚𝐠𝐞 𝐒𝐜𝐫𝐮𝐭𝐢𝐧𝐲: Umbrella and Excess Liability limits are being pushed as loss costs grow, with rate hikes ranging from +5% to +15%. Structured programs and buffer layers are key strategies to stabilize excess rates. 𝐏𝐫𝐢𝐦𝐚𝐫𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬: • Auto Liability: Rate increases from +5% to +15%, particularly impacting heavy trucks and large fleets. • General Liability: Stable in the low to mid-single digits, but more scrutiny for tough classes. • Workers Comp: Competitive with rates ranging from -5% to flat. 𝐄𝐱𝐜𝐞𝐬𝐬 𝐌𝐚𝐫𝐤𝐞𝐭 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬: • Carriers continue to push attachment points higher, with Excess becoming a critical component for risk management. • Increased exclusions related to Biometrics, PFAS, and Sexual Abuse make coverage terms even more restrictive. 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬 𝐭𝐨 𝐌𝐢𝐭𝐢𝐠𝐚𝐭𝐞 𝐑𝐚𝐭𝐞 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐬: • Take a proactive approach with your broker partner to provide detailed, complete underwriting data to ensure favorable terms. • Strengthen risk control measures, focusing on exposures that are likely to draw insurer attention. As we move into Q4, proactive risk management and robust submission strategies are essential to navigating this challenging market. Have questions on how these trends impact your business? Let’s connect!

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Some more compelling stats on how insurers can help reduce accidents. The Allstate Drivewise solution provides personalized feedback and safe driving data to help them make improvements. Allstate has reported Drivewise users are 25% less likely to have a severe collision. Compared to other connected drivers, Drivewise users: - Handle their phones 44% less while driving. - Drive 23% less distance at high speed. - Have an 11% lower rate of hard braking. This looks like a no-brainer for insurers. Interestingly, we are not seeing many moves in this space in Australia or NZ. https://lnkd.in/gZmFQeZU

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