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Highly Innovative Personal Auto Carriers Have Significant Competitive Edge: Best’s Special Report 0

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Highly Innovative Personal Auto Carriers Have Significant Competitive Edge: Best’s Special Report

Oldwick, NJ (May 5, 2024) – U.S. personal auto insurers are the furthest ahead when it comes to innovative processes like automated claims management and the use of data to automate underwriting, according to a new AM Best report. Not all auto writers are at the same level, and carriers that are more innovative have a competitive advantage and are reaping benefits, yet even some innovation leaders still struggle to transform their initiatives into underwriting profitability. These are among the key findings in a new Best’s Special Report titled, “Highly Innovative Personal Auto Carriers Have Significant Competitive Edge.” AM Best has been scoring and assessing insurers’ innovation efforts since 2020, which reflects its important role in helping insurers keep pace with a changing market environment. “Personal auto as a line of business is well suited to innovation,” said Helen Andersen, industry research analyst, AM Best. “Carriers deal with large homogenous risks, allowing initiatives to be scaled and replicated relatively easily.” According to the report, personal auto carriers that are deemed highly innovative capture greater market share, grow their business faster, and have lower combined ratios than insurers that are not. In the U.S. property/casualty industry, net premium growth (NPW) is...

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Brazil Rejects Vale, BHP Settlement Offer for Deadly 2015 Mining Disaster

Article 0 Comments Brazil and the state of Espirito Santo have rejected a proposal by miners Vale and BHP regarding reparations for the deadly 2015 Mariana tailings dam burst, the federal government said on Friday. The statement did not include Minas Gerais state, where the disaster happened, and which said it wants to keep negotiating the current proposal. Vale, BHP and their joint venture Samarco earlier this week presented authorities with an offer to pay a total of 127 billion reais ($25.03 billion) as reparations for the dam collapse, including 37 billion reais already disbursed. Vale, BHP Offer $25B Settlement for Mining Disaster, but Brazil Authorities Want More In rejecting the offer, the office of Brazil’s solicitor general said in a statement that it “does not represent an advance” from the firm’s previous proposal in December and contains “inadmissible conditions.” The November 2015 dam collapse at the Samarco iron ore mine near the town of Mariana, Minas Gerais, caused a vast flow of mud and mining waste that buried a nearby village, killing 19 people, leaving hundreds homeless and polluting the Doce River, a major river that flows through Espirito Santo. Despite increasing the amount that would be directed to...

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How Morgan Stanley Wows Its Ultra-Wealthy Clients

Data published early this year by Cerulli Associates shows “complex” and concierge-style services that cater to specific client needs are becoming increasingly important for advisors seeking to compete for ultra-high-net-worth clients. Access to such services outweighs personal relationship factors when it comes to bringing clients on board, according to Cerulli’s study. At the same time, 35% of high-net-worth individuals polled said they had begun a relationship with their primary advisory provider because of either the services or the client experience on offer, up from 28% who said this in 2017. Valerie Wong Fountain, head of family office resources partner and platform management at Morgan Stanley, told ThinkAdvisor in a recent interview that these findings match closely with her recent experience on the job. In fact, Wong Fountain’s role includes leading the firm’s division dedicated to this need, Signature Access Lifestyle Advisory, and she argued that the strategic importance of her team’s work for Morgan Stanley’s overall success in the UHNW space shouldn’t be underestimated. Wong Fountain described Signature Access as a bridge between Morgan Stanley’s financial planning services and a well-connected network of professionals and third-party service providers who specialize in the distinct needs of this client base. These range from support with...

Canstar Restorations Acquires Lydale Property Restoration 0

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Canstar Restorations Acquires Lydale Property Restoration

Acquisition Establishes a Premier Restoration Provider in Western Canada Vancouver, BC (May 1, 2024) – Canstar Restorations LP proudly announces its latest strategic advancement with the acquisition of Lydale Property Restoration, a highly respected player in the fire and flood business in Alberta and Saskatchewan. This acquisition brings together over 40 years of Lydale’s expertise with Canstar’s robust infrastructure and regional network, creating an unmatched one-stop restoration solution throughout Western Canada. Canstar now encompasses a total of 18 branches across British Columbia, Alberta, and Saskatchewan. The Canstar Group of Companies includes Canstar Restorations, ABK Restoration, NorHaz Solutions, Universal Restoration, and Lydale Property Restoration, collectively offering a full suite of services, from emergency response to complete restoration. “Our commitment is to provide comprehensive restoration coverage across Western Canada, meeting the needs of our customers,” said Ji Yoon, President and CEO of Canstar. “Lydale, renowned for its experience and customer service, is the ideal partner for us to enhance our footprint and service offerings. A special welcome to Blaine Jackson, as he joins the Canstar executive team.” “Joining forces with Canstar marks a significant evolution for Lydale. Together, we are better positioned to meet all restoration needs across the Western Region, moving...

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‘Your Fund Is Under Attack’: BlackRock Fights Saba Raid

What You Need to Know he $250 billion closed-end fund industry is now the scene of one of the most dramatic power struggles in finance. Last month, Saba Capital Management launched a frenetic bid to have investors remove BlackRock as manager of six funds overseeing about $10 billion in assets. BlackRock is warning investors that Saba could radically alter the composition of the funds should it win control, exposing shareholders to greater risk. A few days ago, BlackRock Inc. sent an unusual message to thousands of clients. It contained none of the formulaic language or inscrutable fine print typically packed into these sorts of statements. No, this was a call to arms. “Your fund is under attack,” the headline screamed in bold print. The attacker: Boaz Weinstein, the sharp-elbowed Wall Street money manager who says price distortions in funds run by BlackRock and others are cheating investors out of billions of dollars, and they need to be eliminated. This has turned into something of a crusade for Weinstein. Last month, his hedge fund, Saba Capital Management, launched a frenetic bid to have investors remove BlackRock as manager of six funds overseeing about $10 billion in assets. Boaz Weinstein, founder and...

Sedgwick Develops New Solutions In Global Aviation Claims Management 0

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Sedgwick Develops New Solutions In Global Aviation Claims Management

Sedgwick launches ‘Connect 2024’ list of major trends and issues Memphis, TN (May 1, 2024) – Sedgwick, a leading global provider of claims management, loss adjusting and technology-enabled business solutions, is offering new global aviation adjusting and surveying solutions from hubs across the Americas, Asia Pacific, Europe, Middle East and UK. The new solutions and additional market reach complement Sedgwick’s longstanding capabilities in workers’ compensation, disability and absence, job accommodations, liability, and property claims for the aviation sector. With its unparalleled technical expertise and experience assisting clients with aircraft damage and related liability claims, Sedgwick has established a global footprint and dynamic range of resources to meet the evolving needs of the aviation market through enhanced claims processes. The global aviation team is led by industry leaders Robert McParlin, Managing Director, and Ryan Smith, Deputy Managing Director. Sedgwick’s experts thoroughly understand the complexity of challenges affecting aviation claims, such as ecological transitions, aircraft construction and maintenance, fleet overhauls, emerging risks, and supply chain disruptions. The company’s specialized claims and adjusting services will now encompass global support for handling aircraft hull, machinery, and engine surveying along with managing the liability losses for aircrafts, fleets, manufacturers, airports, pilots, ground staffing and operations....

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SoFi Securities Hit With $1.1M FINRA Fine Over Theft in Cash Accounts

The Financial Industry Regulatory Authority has censured and fined SoFi Securities $1.1 million for failing to establish and maintain a reasonable Customer Identification Program for SoFi Money, its cash management brokerage account, which resulted in $2.5 million in stolen funds. According to FINRA’s order, from December 2018 through April 2019, SoFi used “a largely automated process to approve the opening of SoFi Money accounts that was not reasonably designed to verify the customers’ identity and was, therefore, vulnerable to fraud perpetrated by third parties using fictitious or stolen identities.” The firms approved the opening of approximately 800 accounts that third parties then used to transfer approximately $8.6 million from the accounts of customers at other financial institutions without authorization, FINRA’s order states. Approximately $2.5 million of those transfer were subsequently withdrawn by these third parties from the SoFi Money accounts. “As a result, SoFi violated FINRA Rules 33 l0(b) and 2010,” FINRA found. “During this period, SoFi also failed to develop and implement a written Identity Theft Prevention Program (ITPP) reasonably designed to detect, prevent, and mitigate identity theft.”

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6 Lessons From Charlie Munger on Investing and Business

2. Build your board with people you admire. Davis recalled Munger’s thoughts on choosing directors, saying, “Those people are the face of your clients — and keeping people in front of you that you don’t want to disappoint will always make you behave better.” 3. Earn people’s trust. Munger advised living life “in a web of deserved trust,” Davis recalled. “He said that the nature of trust, of behaving in a certain way, it makes other people better as well,” and advised treating people in a way that they’re given “a reputation to live up to,” Davis said. 4. Be patient. Munger “talked about how difficult it is to do nothing … And he said, it’s often not that making a good decision is rare and valuable, but then sticking with it, not getting shaken out, letting it unfold over a very long period of time,” Davis said. “So Charlie was very comfortable doing nothing for long periods of time, and often in the investment industry, professionals are uncomfortable with that, because it looks like they’re doing nothing. “But Charlie and I used to admire the man who built the Suez Canal, the architect named Ferdinand de Lesseps. And he...

Gallagher Re Global InsurTech Report for Q1 2024 0

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Gallagher Re Global InsurTech Report for Q1 2024

In this report, we review global InsurTech funding and investment quarter over quarter. The 2024 series of reports will examine the role of Artificial Intelligence in our industry, breaking down the function and processes of AI into their relevant parts within the reinsurance value chain. The first report of this series will focus on distribution and sales. Rolling Meadows, IL (May 3, 2024) – Gallagher Re is pleased to announce the release of its Q1 2024 Global InsurTech Report. In keeping with prior reports, we spotlight InsurTech companies that are pertinent to this sector, interview thought leaders in this space and detail the latest InsurTech investment data. Below is a summary of our key findings for Q1. Key findings for Q1: Global InsurTech funding dipped below $1B in Q1 2024, falling from $1.103B in Q4 2023 to $912.25M in Q1 2024, the lowest since Q1 2020. No quarterly $100M+ mega-round deals for the first time since Q3 2017. Early-stage InsurTech funding increased 26.5% quarter on quarter, countering the broader InsurTech funding picture. Average InsurTech deal size fell sharply by 30.6% quarter on quarter — from $14.14M in Q4 2023 to $9.81M in Q1 2024. 28% of Q1 2024 InsurTech deals...

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Extreme Weather Is Driving More US Power Outages, Studies Show

Article 0 Comments For decades, residents of eastern Queens in New York City have complained that they’re more likely to lose power when extreme weather hits, even as lights in other parts of the city stay on. A new study that looks at power outages across New York state suggests they’re right. Its broader conclusion — that different areas, even within the same neighborhood, can be more vulnerable to power outages — aren’t just limited to New York. “We’re focusing on New York state, but power outages are a growing problem nationally,” says Nina Flores, a doctoral student at Columbia University and lead author on the study, which was published Wednesday in PLOS Climate. She points to both the nation’s aging electric grid and damages from storms made increasingly severe by climate change. A separate analysis published last month by the nonprofit research group Climate Central found that between 2014 and 2023, the US experienced twice as many weather-related power outages as it had during the prior decade. Nationwide, some 80% of power outages that affected at least 50,000 people were driven by weather, according to the report. Examples of weather-related outages are everywhere. In 2021, the effects of winter...