Insurable Interest Canadian Insurance Blog

Pricing tools in the spotlight Willis Towers Watson Quarterly InsurTech Briefing London, UK (Apr. 29, 2019) – InsurTech investors worldwide executed the highest number of transactions, the highest number of property/casualty transactions, and the highest volume of Series B and Series C funding rounds during the first three months of 2019, according to the new Quarterly InsurTech Briefing from Willis Towers Watson, the leading global advisory, broking and solutions company. 85 deals with a total value of $1.42 billion were announced in Q1, 2019, marking the third-straight quarter to deliver more than $1 billion in funding. Deal count increased by 35% over Q4, 2018, although total funding decreased by 11%. Some 54% of deals were outside the US, marking a continuing trend. Deal count in the UK increased by 50%, and in the US by 44%. However, deal count in China fell by 38% this quarter. Two-thirds of investments were in Seed and Series A rounds, but Q1, 2019 recorded the highest-ever numbers of Series B and C investment rounds, at 12 and 6 respectively (up from 9 and 3 last quarter), as more nascent InsurTechs reach adolescence. At 56, the latest quarter saw the greatest number of P&C transactions...

Millennials in tech industry rank 5G high among most impactful technologies: KPMG Report Toronto, ON (May 7, 2019) – Highlighting divergent opinions between global tech leaders and millennials, KPMG’s report on technology industry innovation shows some differences about which technologies each group feels will have the biggest impact on business transformation in their companies over the next three years. Millennials in the technology industry, in just a few examples of differences, see 5G, quantum computing, and digital payments among technologies having the greatest impact, while industry executives see blockchain, virtual reality and On Demand platforms among the top technologies for business transformation, according to a new report from the tax, audit and advisory firm. Yet, in a few examples of similarities, both millennials and tech industry leaders rank artificial intelligence, Internet of Things (IoT) and robotic process automation (RPA) high on their lists of transformational technologies. “Millennials’ perspectives show the influence of having grown up in a digital and mobile world,” said Tim Zanni, KPMG Global and U.S. Technology Sector Leader. “While they are high on 5G’s impact in their companies within the coming years, a KPMG analysis projects that in about three years we will begin see 5G unlock...

San Diego, CA (May 7, 2019) – Blockchain remains a popular topic, but supply chain leaders are failing to find suitable use cases. By 2023, 90% of blockchain-based supply chain initiatives will suffer ‘blockchain fatigue’ due to a lack of strong use cases, according to Gartner, Inc. A Gartner supply chain technology survey of user wants and needs* found that only 19% of respondents ranked blockchain as a very important technology for their business, and only 9% have invested in it. This is mainly because supply chain blockchain projects are very limited and do not match the initial enthusiasm for the technology’s application in supply chain management. “Supply chain blockchain projects have mostly focused on verifying authenticity, improving traceability and visibility, and improving transactional trust,” said Alex Pradhan, senior principal research analyst at Gartner. “However, most have remained pilot projects due to a combination of technology immaturity, lack of standards, overly ambitious scope and a misunderstanding of how blockchain could, or should, actually help the supply chain. Inevitably, this is causing the market to experience blockchain fatigue.” The budding nature of blockchain makes it almost impossible for organizations to identify and target specific high-value use cases. Instead, companies are forced to...

Increase driven by growth in premiums and decline in catastrophe losses Jersey City, NJ (May 6, 2019) – Private U.S. property/casualty insurers saw their net income after taxes rise to $60 billion in 2018 from $36.1 billion in 2017—a 66.3 percent increase—helped by double-digit premium growth and a significant decline in catastrophe losses, according to Verisk (Nasdaq:VRSK), a leading data analytics provider, and the American Property Casualty Insurance Association (APCIA). Net written premiums grew 10.8 percent to $612.6 billion in 2018 due to organic premium growth and changes that multiple insurers made to their reinsurance arrangements. Losses and loss adjustment expenses (LLAE) from catastrophes declined to $43.3 billion in 2018 from $49.5 billion a year earlier. Insurers’ net underwriting losses improved to $0.1 billion in 2018 from $23.3 billion a year earlier, and their combined ratio improved to 99.2 percent for 2018 from 103.7 percent for 2017. Net investment income increased 13.2 percent to $55.3 billion in 2018 from $48.9 billion a year earlier, with the increase mostly due to large dividends from insurers’ subsidiaries that don’t operate in property/casualty insurance. “U.S. property/casualty insurers had a marginally profitable year in 2018, roughly breaking even on underwriting and slightly increasing investment...

KPMG will support the creation of a secure, scalable, interoperable, and trusted IoT ecosystem Toronto, ON (May 1, 2019) – KPMG LLP has announced that it is joining the Trusted IoT Alliance organization to help catalyze the expansion of a blockchain-enabled and trusted Internet of Things (IoT). Blockchain’s decentralized systems have the opportunity to improve IoT infrastructure, allowing companies to simplify business processes, improve customer experience, and achieve significant cost efficiencies through the use of IoT. The mission of Trusted IoT organization is to develop and set the standard for an open source blockchain protocol, and to support IoT technology in major industries worldwide for Fortune 500 enterprises, blockchain developers, and blockchain technology companies. According to KPMG’s U.S. Blockchain Leader Arun Ghosh, “Our membership with Trusted IoT organization brings together the key players in business transformation and technology to drive a secure and standardized IoT framework backed by blockchain. This will enhance the value of these emerging technologies for both KPMG and our clients, while enabling us to help improve data security among IoT devices and networks.” KPMG’s 2019 Tech Innovation Survey found 23 percent of tech executives expect IoT processes to be one of the greatest blockchain disruptors over...

The Investment Industry Regulatory Organization of Canada has fined Toronto investment advisor Sheron Crane (also known as Sheron Lau) $65,000 plus costs of $5,000. In a May 8 statement, IIROC says Crane “admitted that she made unsuitable recommendations when implementing extensive margin use and leveraged investing in the accounts of two retired seniors. She also used a personal email address to communicate with her clients and deleted client communications.” As part of a settlement agreement, in addition to the fine and costs, Crane received a suspension of 30 days and is subject to six months of close supervision upon re-registration. IIROC formally initiated the investigation into Crane’s conduct in March 2017. The conduct occurred while she was a representative with the Toronto branch of Industrial Alliance Securities Inc., an IIROC-regulated firm, where she is still employed, stated the regulator. To learn more, consult the settlement agreement. Read the original article at insurance-journal.ca

PR Newswire Cake & Arrow, a customer experience design and innovation agency that works across the insurance industry, announced the publication of a new report in partnership with Coverager exploring the modern landscape of insurance and offering a deep dive analysis of Millennials. Drawing upon Coverager’s extensive proprietary industry research and a year’s worth of quantitative and qualitative research into Millennial values, mindsets, and attitudes about insurance, the report, entitled Millennials & Modern Insurance: Changing the Way Millennials Think About Insurance, takes a critical look at the insurance industry at large, challenges existing stereotypes and assumptions about Millennials, and encourages the insurance industry to adjust the way it thinks about and designs insurance products for Millennials. The report includes: A state of the industry review, including a look at dominant trends, where the funding is going, who the key players are, and what the industry is currently doing to respond to Millennials; An analysis of convenience and price as the driving forces of innovation in insurance and the economy at large, including where the opportunities and limitations exist for insurers; An in-depth look at current Millennial mindsets around insurance and recommendations for how the industry can go beyond price and...

Carriers have a potentially significant opportunity to deploy enhanced risk mitigation techniques to policyholders: Aite Group report Boston, MA (May 9, 2019) – The challenge for P&C carriers has been that the actions and behaviors of their policyholders are, for the most part, beyond their control. However, enhanced risk mitigation techniques, supported by emerging technologies such as telematics and enhanced data analysis, are beginning to emerge. Aite Group’s newest report, Controlling and Engaging Policyholders With Enhanced Risk Mitigation, explores these enhanced risk mitigation techniques and whether they provide P&C carriers an opportunity to gain some control over policyholders. “Attempts to control the environment can be effective, but these efforts ignore the element of human error,” states Jay Sarzen, senior analyst at Aite Group. “Carriers are often left to hope that their insureds act responsibly or that people coming into businesses or restaurants will act responsibly, but even responsible people make mistakes, and accidents can happen as a result, even in environments that have been made safer. Clearly, hope is not a strategy, so carriers are compelled to look beyond environmental control,” he goes on to explain. Striking a Balance in Enhanced Risk Mitigation (Aite Group) This Impact Report focuses on...

Manulife expands ground-breaking Vitality program to Group Benefits customers Launches new preventative health opioid management program Advances the future of medicine using new technology and innovations Toronto, ON (May 9, 2019) – Employee benefits plans have changed very little in recent years and Manulife — which serves one in three Canadians and is one of the largest benefits providers in Canada — is at the forefront of changing that for the better. Committed to be the most digital, customer-centric company in its industry, Manulife is bringing together new technology and innovative thinking to truly transform the benefits experience for Canadians. Manulife Vitality for Group Benefits Manulife Vitality is changing the experience of benefits programs beginning this July. Using the latest technology, data analytics, and personalized solutions, the program helps customers track healthy activities and earn the potential for rewards and discounts. The Company has also signed a pledge with Vitality and other global leaders to help make 100 million people around the world more active by 2025. Through the program, customers track healthy activities using a customized, goal-oriented program; with higher activity level, customers can improve their health and well-being — and earn the potential for rewards and discounts. “Chronic...

By Saifuddin Bhagat, X by 2 In the modern computer era of the last several decades, industries like auto, banking, and of course insurance have developed and re-developed their core processing systems many times over.  That often leads to a tipping point when companies must decide whether to continue to invest in older systems or move in a different direction.  That’s when replacement projects to upgrade or replace decades-old systems – now referred to by the more palatable moniker of “modernization projects” – are put into motion. The problem, however, is that these projects are not as-is replacements of outdated systems, but rather are efforts at building completely new software keeping in mind the new business strategy, workflow and processes of the insurer. As insurers and other enterprises embark on these modernization projects, they begin with an inception phase where a high-level analysis is performed and the all-important decision of buying a solution or building a solution is generally made. These decisions are made based on an amalgam of factors, including overall cost, time to market, technical and business resources, and several other considerations. Whichever solution is chosen, it is more often than not based upon a high-level analysis that...