Welcome to the latest episode of The Connected Podcast, where we explore the dynamic changes and pivotal advances shaping the insurance landscape. In our recent discussion, we highlighted significant developments within the North American property and casualty insurance sector.
A recent study by Celent reveals the challenges arising from rising claims costs, severe weather events, and stringent regulations, pressing insurers to reevaluate their traditional methods. One promising solution is subrogation, which allows recovery of expenses from at-fault carriers, a strategy currently underutilized. This could stabilize revenues without placing additional burdens on policyholders.
Introducing The Spark, a global prevention lab backed by industry giants like Aon and Generali, aiming to transform the insurance model from reactive claims settlement to proactive loss prevention. It encourages industry collaboration to develop preventative tools and technologies, thus redefining the financial and social responsibilities of the sector.
In another groundbreaking move, Allianz X has strategically invested nearly $100 million in Coterie Insurance, a startup focused on small business insurance. This significant investment underscores Allianz's interest in the SMB insurance market, promising to propel Coterie's growth and success.
Also spotlighted in this episode is Jewelers Mutual's launch of the JM Shipping Solution app for Shopify stores. This app streamlines logistics for jewelry retailers, offering real-time shipping rates, insurance, and easy label printing, thereby enhancing operational efficiency for retailers and providing peace of mind for consumers.
Shifting focus, we delve into Sapiens International Corporation's release of Version 13.0 of its CoreSuite for Property and Casualty. This update introduces advanced AI-based solutions for improved underwriting and claims processes, enhancing visibility and risk evaluation in the industry. Roni Al-Dor, Sapiens' President and CEO, describes this version as tackling inefficiencies and boosting operational efficiency.
Furthermore, Vortex Weather Insurance is expanding its reach by joining First Connect's digital marketplace. This move offers independent agents access to Vortex's parametric weather policies, offering innovative coverage options for businesses and events affected by weather changes. Andy Klaus, Vortex's VP of Business Development, highlights the ease of the claims process with parametric insurance, providing fast payouts without the need for damage proof.
Origami Risk breaks new ground with an AI-powered solution transforming risk management. Their AI Risk and Control Explorer helps risk managers develop risk registers swiftly by leveraging industry and geographic data. This innovation addresses 'unknown unknowns' by generating lists of enterprise exposures and recommended controls.
The podcast also examines the burgeoning opportunity of embedded insurance as highlighted by Yuri Poletto of the Open and Embedded Insurance Observatory. This sector presents a $1.03 trillion opportunity, poised to become integral in digital commerce. Insurers are urged to bridge the underinsurance gap in the platform economy by embracing new capabilities and technologies.
On another note, The Insurance Institute for Highway Safety (IIHS) is updating its criteria for the Top Safety Pi
