Featured Articles Blog

0

Aviva CEO Amanda Blanc Conquers Detractors and Direct Line

Article 0 Comments Amanda Blanc is determined to steer Aviva Plc to one of the biggest takeovers in its history, a highlight in a storied insurance career where she’s stood up to challenges including activist shareholders and sexist barbs. If her £3.6 billion ($4.6 billion) plan to combine Aviva with Direct Line Insurance Group Plc that was announced on Friday goes through, it’ll be her largest acquisition on record and the highlight of more than four years of work to transform the insurer — while handing Aviva a rival company run by one of her former lieutenants. Blanc, one of the City of London’s most influential women, has until Christmas to firm up the transaction, which took several price bumps to get Direct Line’s approval. Direct Line would be Aviva’s biggest deal since the purchase of Friends Life in 2014, bringing in 3 million motor insurance customers and a chance to cut costs and capital. It could also shield the business from being swallowed by another competitor during a flurry of insurance deals. “This is a major tactical move, one that will bolster Aviva’s personal lines business in the UK. It will help Amanda strengthen Aviva as the UK’s national...

0

Why Savers Need Help Estimating the True Cost of Retirement

There is a persistent difference where households who are guessing tend to overestimate required savings at lower income levels and underestimate required savings at higher income levels. The difference could be due to a variety of factors, but one potential culprit is the progressive nature of Social Security retirement benefits, which replace a higher portion of wages at lower income levels. This effect becomes clearer in the following chart, which compares the ratio of the median divided by the income level, for different income levels. Source: EBRI 2024 RCS, author’s calculations The estimated and guessing trendlines cross at about the $100,000 total household income level. This suggests that lower-income households who are guessing about required retirement savings could be oversaving and those with higher incomes could be undersaving. The following chart looks at the behaviors taken among workers who attempted to estimate required savings. Source: EBRI 2024 RCS, author’s calculations. Trying to figure out required savings had a number of notable positive benefits, in particular saving more for retirement, which 52% of respondents noted doing. Additionally, 29% of respondents noted researching other ways to save, 24% of respondents noted paying down debt, and 22% of respondents noted enrolling in their...

Customer Satisfaction with Digital Claims Process Surges as Insurance Carriers Load New Features onto Apps: J.D. Power 0

Customer Satisfaction with Digital Claims Process Surges as Insurance Carriers Load New Features onto Apps: J.D. Power

Digital Claims Reporting Now Outperforms Phone-Based Communication: J.D. Power 2024 U.S. Claims Digital Experience Study Troy, MI (Dec. 3, 2024) – Auto and home insurers have spent the past year adding dozens of new features and refinements to their mobile apps, such as automatic collision reporting capabilities, enhanced image upload and body shop selection tools. According to the J.D. Power 2024 U.S. Claims Digital Experience Study,SM these investments are resulting in significantly higher customer satisfaction scores. Overall satisfaction with the digital insurance claims process is 871 (on a 1,000-point scale), up 17 points from 2023. “The digital channel has now surpassed traditional phone-based communication as the most satisfying way for insurance customers to submit a new claim,” said Mark Garrett, director of global insurance intelligence at J.D. Power. “After years of slow growth in the usage of digital channels for claims reporting, insurers’ investments into developing these tools and promoting usage have really paid off as more insureds than ever are using them. Auto and home insurers have finally gotten the digital formula right with streamlined reporting tools, proactive updates and well-designed apps. However, the industry still has some work to do when it comes to helping insureds navigate between...

0

People Moves: O’Connell to Lead Aon’s Reinsurance Global Cyber Strategy; Flude New CEO of Lancashire Insurance US; Hippo Names Collins CMO

Article 0 Comments Aon Names O’Connell as Global Cyber Strategy and Growth Leader Robert O’Connell Aon plc named Robert O’Connell as global cyber strategy and growth leader, executive managing director, within its Reinsurance Solutions business. O’Connell will be based in New York. Previously, O’Connell served as CEO of Bermuda-based Cyber Re Limited and Platform Labs, specializing in cyber underwriting, data science and analytics. In conjunction with O’Connell’s appointment at Aon, Platform Labs has agreed to transfer ownership of its advanced intellectual property portfolio, encompassing multiple cyber-related data science technologies and provisional patent applications registered with the United States Patent and Trademark Office. Senior Leadership Changes at Lancashire Insurance US James Flude Lancashire Holdings Limited, headquartered in Hamilton, Bermuda, made several changes in its Lancashire Insurance U.S. leadership to take effect during the second quarter of 2025. The company appointed James Flude as CEO of Lancashire Insurance U.S. Flude, who will relocate to the U.S., is currently group chief underwriting officer, insurance and joined Lancashire in January 2014. He also served as chief underwriting officer for Lancashire Insurance Company (UK) Limited. Huw Jones Lancashire appointed Huw Jones to the new role of chief underwriting officer for Lancashire U.S. Jones has been...

0

Americans Grow More Committed to Emergency Savings: Survey

Overall, 52% of respondents say they’ve had an emergency fund for more than two years, while 19% have had a fund open for between one and two years. Some 6% started saving for emergencies within the past three months, leaving 23% who started between four and 11 months ago. Among the 37% of respondents who don’t have an emergency fund, 86% said that they don’t have extra money to set aside. “Although this reflects their financial reality and feelings of financial instability, there’s an opportunity for employers to provide education on the basics of emergency funds,” the report suggests. “For example, 12% of employees don’t know how to create an emergency fund, and 4% don’t think they need one.” Fully 54% of respondents say they have previously tapped their retirement account for emergency financial needs — even though 63% reported that they have emergency savings. “This tells us that workers’ current emergency savings might not be sufficient, or that they may be unaware of the consequences of early retirement account withdrawals,” the report warns. “We always recommend having at least six months of expenses saved for a solid financial safety net. That may not be possible for everyone, but saving...

CoverGo launches next-gen AI-powered health claims management platform 0

CoverGo launches next-gen AI-powered health claims management platform

New York, NY (Dec. 4, 2024) – CoverGo, the leading global no-code, AI insurance platform for health, life, and P&C, is pleased to announce the launch of CoverGo Claims, a next-generation AI-powered platform that redefines how health insurers and third-party administrators (TPAs) manage health claims through a comprehensive, end-to-end solution for claims management. From end-to-end automation, a configurable rules engine, and advanced fraud detection to real-time connectivity with external data sources and user-friendly, white-label portals, the platform is designed to streamline and optimize every aspect of claims processing. The platform empowers insurers to minimize manual errors, optimize resource allocation, and automate workflows, including a vast majority of claims processes. This significantly reduces operational costs, ensures unbiased adjudication, enhances processing accuracy and speed, scales operations, and ultimately elevates customer and provider satisfaction. CoverGo Claims has already seen a great demand from existing customers who use CoverGo for claims since 2020, as well as new customers across APAC, EMEA, and the Americas. “The launch of CoverGo Claims addresses the growing demand from insurance companies who want to eliminate inefficiencies and inflated costs while embracing seamless, scalable, and intelligent claims processing. CoverGo Claims is set to redefine efficiency, productivity, and user experience for...

0

Viewpoint: Artificial Intelligence Faces New Era of Regulatory Oversight

Article 0 Comments Executive Summary: With over 70% of insurers planning to deploy gen-AI tools over the next two years, AI promises much, and the keen adopters likely will be rewarded – but it’s a path that must be navigated carefully, keeping a close eye on regulatory compliance in markets across the globe, says Erez Barak, chief technology officer, Earnix. The use of artificial intelligence grew in leaps and bounds during 2024, and regulators have taken note, increasing their oversight across the globe. It’s a technological tool that holds immense potential for the insurance industry, but companies must navigate the fine line between innovation and regulatory compliance. A recent survey conducted by Earnix found that 51% of respondents said their company had to pay a fine or issue refunds due to errors in the use of AI in the last year. The survey also found that more companies plan to spend more care and time on regulatory compliance in 2025, to avoid fines in the future and ensure their use of AI meets the guidelines. It is interesting to note that insurers in Europe and Australia may already be off to a faster start than other territories. A majority of...

0

Pru Names New CEO

“Charlie was the principal architect of a complex strategic transformation that has positioned Prudential to be a nimble, dynamic and high-growth company for years to come,” Todman said. Andrew Sullivan Sullivan has a bachelor’s degree from the U.S. Naval Academy. He served for five years as a lieutenant in the Navy, then worked for about a year as a management consultant, before entering the insurance industry as an executive at two health insurers, Cigna and CareFirst. When he started at Prudential, he was an executive in its group insurance business. He rose up the ranks at the benefits businesses, then took over as head of the U.S. businesses in 2019. He became head of the international businesses, which operate in 13 countries outside the United States, in January 2023. He also has been the executive in charge of PGIM, Prudential’s asset management business. Other Executives Caroline Feeney, who has been head of Prudential’s U.S. businesses since 2021, will become global head of insurance and retirement at the end of March. Feeney and Jacques Chappuis, the incoming head of PGIM, will both report to Sullivan once he becomes CEO, Prudential said. Compensation Annual target total compensation for Sullivan will be $18.8...

0

Triple Threat Targets More Than 30,000 US Homes: CoreLogic

Article 0 Comments Year-round extreme risk from three natural disasters threatens more than 33,000 homes in the U.S., according to the latest analysis by CoreLogic. Hurricane wind, wildfire and inland flood are the most common combination of perils, research showed. Natural disasters, under-insurance and geographic vulnerabilities add additional layers of concern. The homes at extreme risk homes are spread across 20 metropolitan areas and have a current risk score greater or equal to 71 for three separate perils. Source: CoreLogic The top five metropolitan areas at risk are: Miami, Florida Houston, Texas Naples, Florida Midland, Texas Odessa, Texas Miami has the most homes exposed to extreme levels of risk for three separate perils. The city’s exposure to hurricane winds and rising floodwaters, combined with the creeping threat of wildfire, underscores a year-round vulnerability to natural hazards. Ellensburg, Washington is tied with Snyder, Texas for the highest percentage of total homes in an area that are extremely vulnerable to three types of natural catastrophes. Washington state’s vulnerability demonstrates that wildfire and flood risks are reaching further north. The research was done as a collaboration between CoreLogic Chief Scientist Howard Botts, Principal Data Scientist Tanya Havlicek, and Vice President of R&D Product...