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Insurance-Canada.ca - Where insurance and technology meet

AUGUST 29, 2023

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Insurance-Canada.ca Blog - The Intersection

INSURANCE INDUSTRY NEWS

Accelerated by COVID-19, Insurer Innovation Continues Post-Pandemic
As the pace of innovation accelerates within the insurance industry, the top performers in more complex lines of business may be those that overcome the innate challenges of their segment to develop new products, processes, services, and business models, according to a new AM Best special report. Read more.

Quadient Invests In A.I. To Power Up Its Cloud Platform
Quadient is pleased to announce the integration of its Intelligent Communication Automation platform with Microsoft Azure AI, a portfolio of AI services designed for developers and data scientists backed by a secure environment and responsible AI principles. The integration of generative AI into Quadient's cloud platform will further contribute to transforming the way organizations engage with their customers. Read more.

Navacord Expands Into Real Estate Sector
Navacord Corp. is thrilled to announce their partnership with Condominium Insurance Solutions, effective July 1st. Read more.

Manulife Launches Personalized Medicine Program
Manulife is pleased to announce that its Personalized Medicine (pharmacogenomics) program will now be available for Extended Health Care members with certain qualifying conditions at no additional cost. Read more.

Aviva, Oneclose Partner To Help New Condo Owners Save Money
Aviva Canada has invested in OneClose Inc., a technology company that provides a breakthrough financial solution to help owners of newly constructed condos to save thousands of dollars in interim fees. Read more.

Ridge Canada Cyber Solutions Expands Cyber Stamp Capacity
Ridge Canada has officially increased its stamp capacity with our exclusive partners at Corvus London Markets, a leading AI-powered Cyber underwriter, and are excited to have brought on a global leader in cyber insurance in the Munich Re Syndicate. Read more.

U.S. Auto Insurer Profit Recovery Slow to Materialize: Fitch Ratings
Most U.S. personal auto insurers continue to report underwriting losses despite sharper improvement in premium rates, with the first half of 2023 marked by continued unfavorable claims severity and higher catastrophe related losses, according to Fitch Ratings. Future profit improvement will continue to be hindered by unusually high loss severity. Read more.

Pinpoint Predictive Commits to Protect P&C Insurers from Adverse Selection
Pinpoint Predictive, Inc, an AI-powered Loss Prediction and Risk Score platform, is demonstrating its commitment to safeguard the insurance industry from the continued exposure to adverse selection by offering insurers an innovative alternative to negate the issue currently affecting the industry and market as a whole. Read more.

U.S. Small Business Insurance Satisfaction Reaches All-Time High: J.D. Power Study
Despite steadily rising interest rates and strained business conditions, U.S. small businesses are increasingly satisfied with the products and services they are receiving from their commercial insurance providers, according to the J.D. Power 2023 U.S. Small Commercial Insurance Study. Read more.

WICC Fundraising For Canadian Cancer Society
WICC is on an unstoppable crusade to raise money to support the Canadian Cancer Society's ongoing investment into life-saving research and compassionate support programs to ensure people with cancer live longer, fuller lives. Read more.

What's going through the Intersection
of insurance and technology?

Navigating the Insurance Talent Crisis for a Resilient Future
By Meredith Barnes-Cook, ReSource Pro
The insurance industry remains in a talent crisis, and the workforce challenges we are facing are not entirely new. There are some challenges that are self-inflicted, albeit unintentional. The good news is that they are also within the industry's power to change. Read more.

From Doug

Underwriting continues to transform as insurance becomes more personalized, more streamlined, and more automated.

The underwriter's desk has changed:
• Much less paper;
• Digital apps handle calculations and provide guidance;
• Rate manuals and reference information are mostly digital;
• Transaction data is increasingly digital;
• The workstation organizes most transaction data;
• Communication is mostly digital;
• AI, ML, analytics, data and modelling assist underwriting and rate-making.

Today, some transactions are underwritten automatically without manual intervention.

Incremental changes will continue, e.g. Calefy, Quotey, Relay Platform et al focused on the Commercial Lines quoting process, and CSIO defining more data and transaction standards. These will deliver better, more consistent data to underwriting.

What's next?

• More data from more sources to assist underwriters;
• Underwriting will become more continuous based on IoT and other current data;
• Losses will be reduced by acting on the risk-management mantra of “predict and prevent”;
• AI models for ratemaking and for underwriting risk assessment will grow.
• Underwriters will deploy new technologies – such as image analysis – to improve risk assessment and efficiency.

Opportunities for innovation abound. But is the future of insurance simply “[the same but] better and faster,” or something more dramatic?

Doug Grant, CIP
Partner
Insurance-Canada.ca

The Chronicle weekly newsletter features news, events, and general information relating to technology and innovation in the Canadian insurance industry and marketplace. Subscribe here or view past issues.

If you would like to recommend an item for inclusion – with a focus on technology in insurance relevant to the Canadian Property & Casualty insurance industry – please contact info@insurance-canada.ca.

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