The Connected Podcast is your go-to audio companion for the latest news and events in the ever-evolving insurance ecosystem. This episode takes a deep dive into some of the most significant developments, starting with the renewed debate on Capitol Hill over the INSURE Act. Proposed by Senator Adam Schiff, the Act seeks to establish a $50 billion federal catastrophic reinsurance program aimed at improving insurance affordability across U.S. markets. Despite its potential benefits, skepticism persists within the industry, as expressed by Sam Whitfield from the American Property Casualty Insurance Association.
Over in California, Mercury Insurance is stepping up to the plate, adapting to the state's Sustainable Insurance Strategy. By filing for rate changes in their homeowners program and utilizing Verisk's Wildfire catastrophe model, Mercury aims to maintain coverage in wildfire-prone areas. Meanwhile, in Florida, the insurance landscape is undergoing rapid transformation. With legislative reforms in place, Vision Insurance Exchange is on track to become the 15th new market entrant, set to offer nearly statewide coverage by November.
This episode also shines a light on the evolving role of artificial intelligence within the insurance industry. As a sector once firmly rooted in trust and reliability, insurance is cautiously embracing AI's promise to enhance efficiency and reduce costs. Despite this technological shift, investment in AI remains minimal, as highlighted by industry experts like Tom Spier and Kristy Lovegrove. AI's integration with human expertise continues to be crucial, ensuring that the industry remains a safety net for policyholders.
The podcast further explores AI's transformative impact on underwriting, with survey results indicating a burgeoning confidence in AI's ability to improve workflows and risk assessment. The integration of technology and business strategies is more crucial than ever, with a remarkable 80% of insurance executives recognizing its importance in their core business strategies. Beyond underwriting, AI is also playing a vital role in mitigating "nuclear verdicts" in legal claims, emphasizing the importance of predictive analytics.
In corporate news, significant developments are unfolding. MS&AD Insurance Group Holdings Inc. reported a substantial increase in fiscal first-quarter net income, attributed to improved underwriting profits. However, challenges remain, exemplified by a J.D. Power study highlighting declines in customer retention among small commercial insurance agencies, underlined by communication issues. In other corporate moves, Markel Insurance has sold its Global Reinsurance business renewal rights to Nationwide, while Plymouth Rock Assurance Corp. has appointed new leadership to key positions.
Join industry experts Alan Demers and Stephen Applebaum as they steer you through these intricate stories and trends. The Connected Podcast—an extension of the popular ‘Connected’ newsletter—offers insightful analysis and distilled industry news in an easy-to-consume audio format. Whether commuting, working out, or relaxing at home, stay informed with episodes available on Apple Podcasts and Spotify, and discover the pulse of the insurance world as it continues to evolve.
Senator Schiff Brings Back Idea of Federal Reinsurance Program
Mercury Insurance Submits California's First Sustainable Insurance Strategy Homeowners Rate Filing
Another new home insurance company gets Florida permit. This makes 15 since reforms were enacted.
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