As we look ahead to 2024, here is a quick recap of our experience at ITC Vegas 2023.

ITC 2023 in Las Vegas marked a distinct shift in networking dynamics, offering a unique blend of interactions with existing clients, partners, and newfound connections. While familiar technologies and solution providers were present, the influx of new companies and partners signaled the ongoing evolution and innovation within our industry. Here are key highlights from our three-day immersion:

Automation takes center stage

Throughout the event, the resounding theme was automation. Speakers, breakout sessions, and discussions emphasized the imperative to automate tasks and process management across the insurance industry. Technological advancements are enabling increased efficiency, error mitigation, and enhanced customer service. Carriers and providers are fervently pursuing strategies to “do more with less” by streamlining clunky manual workflows.

Modernization imperative

A significant portion of the insurance marketplace appears hesitant to embrace the rapid technological advancements, such as AI, Blockchain, and cloud digitization. Some are adopting a “wait and see” approach, while others cite financial constraints as a barrier to investing in a modern tech stack. Thought leaders unanimously emphasized the urgency to modernize, cautioning against waiting, as customer expectations are evolving rapidly. Within the next five years, failure to deliver a unique and differentiated experience may render companies obsolete.

The rise of AI

AI emerged as the dominant buzzword, featuring prominently in over half of the presentations and discussions. Despite its conceptual integration into various aspects of the insurance business, including underwriting, claims processing, customer service, and risk assessment, there is consensus that widespread adoption will require substantial development, modeling, and regulatory considerations. The prevailing sentiment is that the journey to adopt AI will be more prolonged than initial expectations suggest.

Data is nothing new to the insurance sector. Underwriters and actuaries have been assessing risk and setting prices by analyzing large volumes of data for decades. But as the insurance market develops, artificial intelligence (AI) will play a bigger role in assisting insurers in remaining competitive and meeting changing client demands. Even more opportunities have arisen due to the generative AI models’ recent surge in popularity, such as OpenAI’s ChatGPT. In the following is a high-level summary of the typical insurtech effect areas, highlighting three particular businesses whose products make extensive use of AI.

Emergence of insurtech in the spotlight

Innovations in insurance firms and products that are based on technology have increased rapidly during the last five years. All these developments are referred to as insurtech. By utilizing technological breakthroughs, especially artificial intelligence (AI), insurtech is revolutionizing the traditional insurance industry. They employ AI to improve client satisfaction, optimize workflows, and deliver more individualized services. The following functional domains have been the focus of several of these technologies:

• Enhanced underwriting procedures

• Streamlined claims processing

• Increased policy flexibility and customization

• Preventing fraud

• Enhanced risk management

The insurance sector is adjusting to the world’s constant digitization. This tendency will only continue as more businesses invest in it, as we’ll cover in the sections that follow. It’s fascinating to keep an eye out for developments there.


Chicago-based Kin is a cutting-edge home insurance provider. The company was established in 2016 with the goal of giving consumers purchasing house insurance a more customized experience. Their platform offers well-informed advice on what insurance coverage is best for each property. Kin analyzes a comprehensive data set comprising over 5,000 factors about each customer and their home before making recommendations. A human underwriter could never match the speed and precision of the quotes generated by Kin’s platform. All of this is made feasible by Kin’s usage of artificial intelligence.

Standard home insurance policies frequently have the flaw of being inflexible, meaning they don’t alter when the cost of materials and houses does. A scenario where the coverage is insufficient to cover the cost of replacement can easily result in underinsurance. This issue is resolved by Kin’s platform, which uses market data and periodic reevaluations of underwritten policies to identify potential issues.

Kin can run a lot leaner as a business, with considerably lower expenses, because it can use its software to optimize many elements of the firm. As a result, Kin can pass along the cost savings to its clients, increasing their competition in the industry.


An auto insurance provider called Clearcover takes great satisfaction in using cutting-edge technology to give its clients the finest possible service. Their exclusive ClearAI AI-based tool forms the basis of their technology. Throughout the company, Clearcover makes extensive use of this tool. In terms of quotation, Clearcover’s platform assists clients in obtaining the appropriate coverage according to their particular needs, much as Kin’s. The capacity of Clearcover to handle claims, however, is where the more amazing functionality resides.

The sophisticated image processing feature of ClearAI enables it to instantly assess if an incident is covered by analyzing photos of a damaged car. The customer might receive an automatic payout from the platform once ClearAI verifies their eligibility. Clearcover may now pay a valid claim in as little as seven minutes after it has been fully processed thanks to these features. However, processing a claim with an insurance company usually takes days.

As an insurance firm, Clearcover gains a great deal from company representatives who are successful in selling their policies. Considering this, they have expanded ClearAI to incorporate lead qualification tools. With so many leads to review, there is a lot of noise. These tools assist agents in sorting through it. They can immediately obtain better-quality leads and have a greater likelihood of client retention.


In the InsurTech space, DAIS Technology is finally making waves with UnderwriteGPT, a new product built on generative AI and large language models. No insurance is sold by DAIS. The business created a set of resources that insurance firms can utilize. Their product offers may be enhanced, goods can be introduced to the market faster, and customers will receive an overall better experience thanks to this suite.

Kin and Clearcover notwithstanding, DAIS intends to promote UnderwriteGPT as a mechanism to expedite the underwriting procedure and enhance risk evaluation, culminating in superior policyholder coverage and price. DAIS and The Paladin Group, a top digital brokerage with a focus on transportation and cutting-edge risk management solutions, collaborated to create UnderwriteGPT. Because UnderwriteGPT is still in the early stages of becoming ready for the market, the company has only provided limited information on what it does explicitly.

UnderwriteGPT has been in confidential development for approximately a year, and its public unveiling marks a significant milestone. The solution is expected to revolutionize the way brokerages and insurance companies approach policy underwriting.

Insurtech’s evolution: Navigating tomorrow’s landscape

The insurance industry has seen tremendous transformation in recent years due to the introduction of contemporary technology. Businesses like DAIS Technology, Kin, and Clearcover have been setting the standard for using AI to transform the sector. With technology developing at a never-before-seen rate, the opportunities for creativity are endless. Leaders in the sector aren’t scared to think outside the box, from wearable technology that analyzes health data and modifies premiums accordingly to AI-powered customer support. There are a lot more insurtech innovations to come that will benefit both insurance firms and policyholders.

About 420,000 agents worked in the insurance sector in the United States alone in 2021. Over most of the insurance industry’s development, this profession was intrinsically related to the essence of what insurance was all about.

Insurance agents now worry that they could soon be completely replaced by automated systems as the growing insurtech cluster and related firms strive to optimize efficiency and increase automation wherever the market permits.

Agents do not have to suffer because of an industry that is unavoidably evolving.

As dependable individuals who are prepared to intervene when their clients most need it, insurance brokers provide an invaluable human touch. But they also need to be ready to accept the very automation and technology that pose a danger to them and learn how to make the most of these resources to enhance their productivity.

Establishing confidence

For customers, insurance brokers can still be quite important. Agents provide policyholders with a physical point of contact, easing the pressure of interpreting complex, perplexing policies, and providing the reassurance of a personal relationship.

People who connect with their insurance policies are frequently experiencing a crisis, therefore it is doubtful that they are in the right frame of mind to deal with chatbots or automated phone systems. Human interaction is still fascinating even as the justification for automation or self-service digital experiences becomes stronger. Even when there is a delay, almost 60% of customers still choose chatting with a live person over a chatbot.

When it comes to building trusting relationships with clients and policyholders, human agents’ empathy and humanity continue to be significant advantages. This is a business requirement that technology just cannot match.

Adaptation essential for agents

Insurance agents, however, cannot be saved by empathy alone. Today’s productivity and information flow are changing quickly, even while nothing has altered in terms of phone etiquette or the skill of explaining policies to clients. To stay up, agents need to be ready.

The ecosystem’s early adaptation and investment in the future by leveraging technology to improve process efficiency across the value chain and accelerate overall growth is encouraging.

While human touch is still important, 41% of policyholders said they would drop a supplier who doesn’t have enough digital capabilities. This means that agents who implement digital technology will have a difficult time keeping consumers. The fact that agencies with high technological adoption rates grew on average by almost 60% more than those with low adoption rates is therefore not surprising.

There is a negative aspect, though. Because legacy insurers still set the standard for much of the sector, insurtechs and other disruptors in it must accept that these companies are unlikely to completely transform their business operations. Although new entrants in the insurance industry must integrate innovation along established paths, the insurance ecosystem still significantly depends on agents for success, just as legacy firms must adjust to new modes of operation.

Discovering the ideal tech solution

It is a foolish endeavor to adopt new tech tools merely to stay ahead of the curve. Insurance agents, however, must choose their technologies carefully and with purpose. Is the goal to attract new clients? Getting in touch with those who already exist? Agents must determine their target market, evaluate their needs, then implement technology that meets those demands.

Start by considering the preferred interaction methods that potential customers prefer, such as phone calls, mobile apps, or websites. Along the policyholder journey, there are a plethora of features and tools to consider, ranging from video conferencing capabilities to online pricing solutions that streamline the onboarding process and more.

Agents may target high-quality leads and address lingering issues before they become unmanageable with the help of other helpful tools like smart data analytics. In addition to being exceptionally good at assessing consumer risk and creating highly customized products, data analytics may even identify fraud by identifying minute differences that the human eye might miss.

Molding tomorrow’s landscape

For professionals of all stripes, the timeless advice to “Change or go home” is crucial in a quickly changing environment. In fact, agents could prevent replacement.

Today’s insurance agents will not only assure their future in the business, but they will also be able to shape it by utilizing the enduring need for human connection and a personal touch in conjunction with the adoption of technology and digital methods to maximize efficiency and effectiveness.

Customers of property insurance across the country are facing a difficult situation because of insurers restricting new business and sending termination warnings because of the rising costs of heightened catastrophic occurrences driven by climate change.

Strict regulatory limits have driven insurers out of high-claim jurisdictions like California and strained the business models of property and/or casualty insurance. Specifically, the laws in effect today, which are based on laws issued in 1988, prohibit insurers from factoring in reinsurance costs and from taking climate change into account when calculating rates. It has become more challenging for insurers to fairly value property hazards as a result.

People are in a difficult situation because P&C insurers are leaving California. The California FAIR Plan and other backstop coverage choices are becoming increasingly popular among individuals who are having difficulty finding inexpensive insurance. Over the past few years, however, the number of customers using the FAIR Plan has more than doubled. Its insolvency would force all California’s regulated insurance companies to split the expenses, which would further incentivize them to move their business elsewhere.

To draw insurers back to the state, California Insurance Commissioner Ricardo Lara has made new regulatory proposals in response. Even though there have been differing opinions on the suggested modifications, they provide consumers and the industry’s comeback some hope.

What changes are being made?

In determining rates, the new regulations would permit insurers to utilize catastrophic modeling that takes into consideration the anticipated effects of climate change, reinsurance costs, and measures to reduce the risk of wildfires. Additionally, the new regulations would force insurers to write a greater proportion of their policies—that is, at least 85% of their statewide market share—into wildfire-prone areas.

The effects of these changes on consumers

To save consumers from unjustified rate increases, California has historically outlawed these modeling techniques. But the 35-year-old state laws are out of date for the sector as wildfires become more devastating.

Relaxing regulations could encourage insurers to return to the state and enable them to better manage their risk of catastrophic occurrences, which would increase consumer competition and possibly aid in long-term rate stabilization. Particularly for houses in high-risk zones, these modifications would also expand the availability of coverage.

The definitive result for property insurance and consumers

Should things stay the same, insurers will keep pulling out of California, leaving customers with no choice but to go without insurance, depend on the FAIR Plan, or purchase excess and surplus lines insurance—which would probably come with a hefty premium load.

This needs to change, and these new regulations might represent a significant advance for customers. They are merely the start of initiatives to reach a settlement with insurers, bring back customer access to coverage, and revitalize the market. They would also give the FAIR Plan much-needed relief, allowing it to function once more as a last-resort alternative. However, there are several drawbacks with them, including higher premiums and a lack of openness on the data that insurers would use to consider climate change.

By December 2024, Lara wants to have the regulations written. All parties involved in this process will need to work together continuously, but it is a significant step in the right direction and a major shift in the industry.

Within the quickly developing insurance and insurtech industries, “big data” is becoming a widely used term. Professionals in the insurance sector examine how it is spurring innovation and its ramifications for risk assessments, policy pricing, and client relations.

Huge amounts of organized and unstructured data that are gathered from many sources and, upon analysis, can yield insightful information that helps inform business choices and boost operational effectiveness are referred to as “big data.” However, what does it signify for the sector and how is it changing the way that insurance is traditionally provided?

Insurance companies view big data as a treasure trove. It is derived from a variety of sources, including risk information, social media interaction, internet behavior, claim histories, and client demographics. Even real-time data from networked devices, such as automobile telematics and smart home systems, is included.

The ability of the sector to gather, handle, and analyze this data on a massive scale is radically changing how insurers evaluate risk, set policy prices, and communicate with clients.

According to industry reports, big data is rapidly changing the insurance sector by facilitating more precise risk assessment, enhancing customer experience, expediting the claims handling process, and improving underwriting and pricing.

Innovative domains

There are various applications for big data. Managing risks is one of the main applications.

Insurance companies can obtain a better knowledge of the risks connected to various coverage options by evaluating vast volumes of data from numerous sources. Insurance companies may be able to better manage the risk exposure in their portfolios and price insurance with greater accuracy thanks to this.

Unfortunately, conventional data processing methods are often unable to readily process and interpret these massive amounts of data because of their complexity and vastness. This data is being analyzed by insurance companies using sophisticated analytics technologies.

The examination of this data aids insurers in customizing their policies by providing a deeper understanding of the risks connected to various business kinds. Big data helps insurers to manage risks more efficiently, make data-driven choices, and improve customer service—especially in the context of cyber insurance. There will likely be more creative applications of big data in the insurance sector in the future as machine learning and data analytics advance.

Others concur that big data, which is being used in a variety of insurance-related sectors like pricing, underwriting, claims administration, risk reduction, and fraud detection, can assist insurers in making better decisions and streamlining their operations.

Big data is being used, for instance, in pricing and underwriting to more precisely assess risk and spot trends that can influence future claims. Underwriters are in a better position to assess various risks when they have access to more data.

Big data can be utilized in claims management in other contexts to detect fraudulent claims and enhance the effectiveness of claims processing. With the ability to handle claims more quickly and precisely, operational efficiency has increased, and customer satisfaction has increased.

AI unleashed: Is the genie out of the bottle?

As per the analysis of industry experts, the insurance sector must remain inventive and adaptable as client demands change. Among these is the effective use of big data.

Big data’s importance has grown in tandem with technological advancements. The importance of data in insurance, for instance, has been and will continue to be influenced by major technical developments such as distributed ledgers. Any additions or modifications made to a distributed ledger are instantly duplicated to all participants, as it is a database that is shared and synchronized across numerous sites, institutions, or geographical locations. The technology they employ is the same as blockchain technology.

A typically analog sector will also be shaped by immutable data ledgers. By ensuring that the data is accurate from the start, this will pave the way for more efficient risk transfer and improve the client experience.

The craze surrounding ChatGPT is a prime example of the industry’s recent surge in interest in and application of generative AI. Insurtechs have been reported to be able to power better client experiences already thanks to AI, especially in terms of expediting access and guaranteeing a more tailored experience for each customer.

In terms of generative AI utilization and implementation, the last quarter was undoubtedly a “genie in the bottle,” and as businesses and the industry grow accustomed to privacy and security, generative AI will probably find its way into a wide range of use cases.

Experts in the field of cyber insurance pointed out that, in the face of a sharp increase in cybercrime worldwide, technological advancements have played a critical role in the use of big data. The insurance industry as a whole is striving to adopt new technologies in order to control the cyber risks associated with its insureds, as both insurers and brokers are finding it difficult to keep up with the quickly growing cyber vulnerabilities.

Large volumes of data can be processed and analyzed rapidly and effectively by new technologies like machine learning and AI-powered tools. This gives insurers and brokers access to insights and the ability to spot trends that would be challenging and time-consuming to find using conventional approaches.

Next frontiers in the realm of big data

The insurance sector has found new prospects for growth and improvement thanks to the use of big data. Future decisions about risk underwriting and transfers are expected to be further solidified by it, according to industry sources.

In the realm of cyber insurance, insurers will be better equipped to assess and price risk thanks to big data risk analytics’ capacity to handle vast amounts of data and identify trends and patterns. This will create a more stable and long-lasting cyber insurance market by giving insurers quick access to actionable threat intelligence.

Regarding the use of big data in insurance going forward, many more encouraging opinions have been voiced. Large data has the promise of enhancing consumer experiences, streamlining processes, and enabling even more precise risk assessment. The insurance industry is expected to grow further as insurtechs search for fresh data sources and techniques for delivering it to insurers.

In terms of data, technology, and transparency, the insurance sector may lag the larger financial services sector, therefore innovation and digitization are highly anticipated in this space. That means there’s a great chance to improve the consumer experience by addressing inefficiencies and fostering growth.

As we move forward, many businesses would like to see more insurtechs and insurance companies work together so that the latter can take advantage of the latter’s vast industry knowledge and state-of-the-art, potent technologies.

Many believe that the insurance sector should make greater investments in data analytics and technology. More connectivity and collaborations across insurtechs would help alleviate the outdated systems that continue to hold back a lot of participants.

About 70% of youthful workers said that if their expectations for the digital experience were not fulfilled, they would think about quitting the organization.

Policyholders are not the only ones who want the simplicity and ease of use that come with cutting-edge digital experiences and communication equipment. The next generation of insurance professionals will be drawn in large part by innovative digital experiences, according to a survey by Riverbed Technology LLC that surveyed 92% of executives in the financial services and insurance sectors.

A significant portion of CEOs (92%) surveyed stated that investment in digital experiences (DEX) will be a key priority over the next five years due to the expanding significance of this field.

If DEX expectations were not realized, about 70% of millennials and Gen Z employees said they would think about quitting their firm. The same proportion of respondents claimed that a company’s performance, reputation, and productivity may all suffer if these expectations weren’t met. In fact, according to Riverbed, a smooth DEX was valued higher than free coffee and snacks and monthly office happy hours as a workplace bonus.

The cloud and artificial intelligence, according to about half of survey participants, are the most significant technologies that will grow more and more “business-critical” during the next 18 months. App and network acceleration, DEX management solutions, and automation tools are other technologies that Riverbed claims are becoming more and more important.

These days, as more and more digital natives join the FSI workforce, it’s imperative that strong DEX solutions are in place. This is not just to maintain the productivity of Gen Z and millennial employees, but also to reduce risk, automate procedures, guarantee the efficiency of client financial transactions, and enable top talent to work with greater strategy.

Furthermore, it is observed that although delivering enhanced digital experiences is getting harder, it is good to see that most industry leaders understand the value of DEX and are investing to fix any flaws.

Regarding obstacles impeding DEX advancements, 36 percent of executives stated their organization has sufficient observability tools, while 34 percent cited financial limitations and 32 percent stated they had an excessive amount of data to analyze. Another 29% claimed they lacked the necessary SaaS apps or cloud services to provide a flawless DEX.

While businesses are trying to enhance DEX, 34% of CEOs reported that they are having trouble finding IT staff. Since 94% of survey participants stated that IT is now more accountable for business innovations than it was three years ago, this is impeding business modernization.

Additionally, 45% of decision-makers in the financial services and insurance industries stated that while they have IT personnel to make changes, they lack the requisite skill sets to put improved digital tools into practice. But according to 85% of study participants, they have set aside money for employee retraining.

The foundation of modern digital services is APIs. Global insurance corporations are creating, implementing, and adjusting APIs at a rate that has never been seen before. These organizations share critical data with partners, consumers, and workers using APIs, which serve as the cornerstone for their online services and transformational applications.

It is not without difficulties, though, as is the case with everything that grows quickly. The proliferation of APIs creates a larger attack surface for malevolent actors, hence opening the door to a myriad of new security concerns. These criminals are persistent and constantly looking for novel and surprising ways to target companies. Organizations used to think that requiring adequate authentication to use an API would be sufficient to discourage attackers and send them elsewhere. However, data from Salt Labs indicates that 84% of attacks were from users who appeared to be legitimate but were in fact attackers who either obtained credentials maliciously or by taking use of already-existing procedures to establish their own acceptable credentials for accessing the API.

The insurance industry, along with the financial services and retail industries, is the most vulnerable, even though the API ecosystem has expanded quickly across all industries worldwide. This article will examine the rise in API attacks in the insurance sector and reiterate the ongoing work that the security and software sectors need to do in this area because malicious actors are always working hard to exploit the present security flaws.

The days of setting up policies by calling insurance brokers are long gone; times have changed. Customers today have different demands and anticipate being able to purchase, set up, renew, and file a claim for their insurance online in one convenient location. The insurance sector, like the financial services sector, depends significantly on APIs to deliver services and drive corporate innovation. The industry has advanced into the current era with the usage of APIs and microservice-based architectures, yet there are still difficulties.

Insurance companies need to meet customer demands by processing and sharing sensitive customer data with numerous third parties, all the while making sure that customers can instantly access, amend, and submit their information via websites and mobile applications. APIs are now crucial to the insurance industry due to this new environment, which also presents new security risks and makes them more noticeable to would-be attackers. In fact, 92% of respondents to Salt Security’s State of API Security for Financial Services and Insurance survey said they had at least one serious security issue involving their production APIs in the previous year—a startling statistic. In addition, the number of insurance companies using cutting edge, AI-driven, API-driven automation technologies to assist the underwriting process, handle client claims, and deliver services has increased significantly because of Covid. As per McKinsey & Company, artificial intelligence has the potential to drastically alter the insurance sector by 2030. Leaders in the insurance industry must now quickly and effectively update, replace, or supplement their current security defenses in order to confront the compounded growing security risks.

Findings from Salt Security’s State of API Security for Financial Services and Insurance show that malicious actors are busily at work, increasingly focusing on insurance APIs. In fact, between the first and second half of last year, there was a tremendous 244% rise in unique attackers. Furthermore, a startling 27% of participants disclosed that they had lately encountered a privacy event or the release of sensitive data, and 17% had encountered a security breach originating from an API.

Insurance companies are transforming at an incredible rate to become more innovative and competitive by adopting API-first architectures and workflows. Although this benefits the sector, it also gives hackers a larger attack surface to work with, which makes it generally easier to infiltrate. Due to the increased attack surface, threat actors are now able to steal account information, compromise insurance claims, carry out fraudulent transactions, and eventually cause service disruptions. Moreover, insurers have the same regulatory and compliance requirements as financial services firms. They risk losing their clients’ trust in addition to facing large fines and harm to their brand from an API assault.

Securing APIs to safeguard digital services has become a corporate concern due to the increase in assaults and the expenses (fines, lost client trust, and reputational harm) involved with API security breaches. In its march toward digital innovation, the insurance industry has reached a pivotal point, and APIs are essential to the development of new insurance services. The time has come for business leaders to think about and put into practice tried-and-true strategies for reducing API risk, utilizing specialized AI-based security defenses for APIs. This will enable insurers to safely harness the power of APIs and maintain their competitiveness in this quickly evolving market while guaranteeing customer loyalty, compliance, and overall performance.

Nearly 50% think that the cost of coverage has become too high.

According to a recent Harris Poll study done on behalf of the American Property Casualty Insurance Association (APCIA), almost three-quarters (74%) of homeowners face challenges when attempting to increase the resistance of their houses to natural disasters.

The need for mitigation and resilience for company owners and homeowners to protect their properties from the severe effects of natural disasters is highlighted by recent terrible natural disasters. The survey indicates that the main obstacle is thought to be financial, with 46% identifying cost as a major deterrent. Furthermore, 20% are ignorant about where to start or how to proceed.

Other significant survey results are as follows:

• Eighty-five percent of homeowners favor local governments implementing the most recent building codes to guarantee that newly constructed buildings adhere to strict criteria for catastrophe resilience.

• To improve the resilience of their homes and comply with building codes, 75% of homeowners are willing to replace certain home materials.

• To reduce the expense of reconstruction and repairs, 80% of homeowners support initiatives to limit development in storm- and wildfire-prone areas.

According to the survey, homeowners found that financial aid in the form of low-interest home improvement loans or federal/state grants (19%), as well as discounts on insurance premiums (22%), lower costs for updated materials through sales or income tax credits or rebates (26%), and lower property taxes (21%), were the most helpful incentives for bolstering home resiliency.

Insurance’s vital role amid escalating natural disasters

Rising sea levels, an increase in natural disaster losses, a surge in extreme weather occurrences, and wildfires that are getting worse all highlight how urgently proactive action is needed to improve resilience and reduce risks. The impact of climate change is exacerbated by population increase in areas vulnerable to hazards, underscoring the need for stricter building regulations and a greater emphasis on community planning to reduce risks and guarantee long-term resilience against climate-related disasters.

To improve mapping and modeling of natural disasters and climate risk, insurers are consistently investing in cutting-edge tools and technologies, according to the APCIA. To provide useful solutions for communities and consumers, they also actively fund safety research through the Insurance Institute for Business & Home Safety (IBHS). IBHS provides affordable recommendations for preparing homes for several types of natural catastrophes. These recommendations include risk-reduction measures including roof inspections, gutter cleaning, gap sealing, and suitable landscaping.

“There are effective ways to reduce the risk of damage from natural disasters to your home or business no matter what your budget is,” said Karen Collins, property and environment vice president of APCIA. “Millions of people are increasingly at risk for natural disasters as more communities are built in hazard-prone regions and communities face the intensifying impacts of climate change, so it is incredibly important for homeowners, communities, and policymakers to make resiliency and mitigation a top priority.

“Communities must begin to adapt to growing climate impacts now by adopting and enforcing stronger building codes in high-risk areas and focusing on better community planning. Reducing our risk must continue to be a shared priority, and we must work together to adapt and increase our resiliency in the face of climate-fueled disasters,” Collins added.

Personalized messaging, offers, and experiences at scale are becoming more than simply an unprecedented opportunity for P&C insurers due to mounting competition and rising customer expectations. Any carrier hoping to take a sizable lead over competitors may find it to be strategically necessary very soon.

Digital channels have witnessed a major transformation in recent years, affecting far more industries than only insurtech. The current environment has made users more in need of tender affection and care; thus, they are now demanding a high degree of personalization from all businesses, including P&C insurance.

They actually demand it, that is how much they value it. More than seven out of ten customers increasingly demand personalization as a given when interacting with businesses, and over seventy-six percent become irritated when they don’t, according to McKinsey. Personalization can have enormous benefits as well. Revenue improvements of 10% to 15% are possible for businesses that excel at customization; best-in-class performers can see rises as high as 25%.

Although this movement was started by industries other than P&C insurers, it is now the responsibility of the industry’s companies to keep up if they want to stay relevant in a very competitive market.

For many insurers, putting these solutions into practice—which send clients individualized messages including coverage options, policy recommendations, and all the related policy documentation—can be intimidating.

This is even more true when you take into account that this degree of personalization is available via text messages, emails, in-app offers, call centers, and more—across both digital and human channels—at every stage of the consumer experience.

Are these radical adjustments, though, worth it? Is it better for P&C insurers to take a risk? Why introduce such a system and what would be the benefit?

First, compared to the ongoing usage of mass, one-size-fits-all communications or discrete campaigns employing simple segmentation or personas, customization can help reduce client acquisition expenses by 50%.

Additionally, it can support insurers in maintaining and growing their portion of current industry earnings. According to McKinsey, for example, U.S. auto insurers might benefit an extra $5.5 billion if they use customization to hold onto just 10% of the $55 billion in direct written premiums that are transferred annually between carriers.

The true difficulty lies in perfecting personalization at scale throughout the insurance life cycle, but these evident cash flow benefits will undoubtedly have carriers on the lookout for change.

In order to do this, carriers with a contemporary, cloud-based insurance platform have an inherent advantage. In the absence of a bespoke system, you are forced to switch between fragmented systems, which prevents true scalability.

For instance, the Guidewire Cloud Platform provides omni-channel, tailored customer communications for the billing, claims, and policy processes.

For scalable, customized communications, Guidewire has partnered with Smart Communications, a market leader in conversation management platforms.

Everything is managed by a single, cloud-expandable platform, which means that there is no need to maintain different systems and that scalability is unlimited as needs for channels, storage, and other resources increase.

Incorporating a more customized strategy into their present systems can yield a swift return on investment for P&C insurers with the appropriate solutions in place. The personalization necessity isn’t limited to P&C insurance, as devices like Guidewire have already assisted carriers in launching personalized communications at scale in over 100 installations globally in a timely and economical manner. The time has come.

According to At-Bay, Inc., more than one in four (31%) firms reported being unable to retrieve their data following a ransomware attack, even though 92% of organizations had backed up their data, whether it was on-site, offsite, or in the cloud.

In comparison to companies who successfully restore data, the average claims cost for corporations that fail to do so is $190,000.

The insurance company and surplus lines broker claim that a successful recovery of data after a ransomware attack can save a cyber incident’s total cost by up to 41 percent. Businesses that recover their data successfully are three times less likely to comply with a ransom demand.

Not many security professionals find data backups and the numerous solutions on the market particularly exciting. It’s important to note, though, that some backup plans may end up being far more successful than others. Making the correct decision can decrease the risk that a company will have to pay a ransom by up to three times.

After reviewing its claims data, At-Bay concluded that the cloud backup architecture provided the best chance for effective data restoration. Eighty percent of businesses that used cloud backups recovered.

The remarkable success rate of cloud technology

With an 80% effective recovery rate, cloud backup architecture outperforms offshore backup by a factor of 1.5. Moreover, ransomware was paid 2.5 times more frequently by those using offsite backups than by those using cloud backups.

Optimal approaches to develop an effective data backup strategy

The four suggestions that follow can improve any backup plan and help a company recover from a cyberattack.

1. Understand the interconnectedness of systems

It is not sufficient to just copy data elements and store them in one or two repositories; instead, it is essential to catalog and classify the ways in which the system functions. Data that has been carelessly dumped can cause the restoration process to lag while IT personnel try to figure out which apps use the data.

2. Implement robust password security measures

Organizations must take extra precautions to secure passwords and other login credentials for backup accounts since hackers may target these accounts. In order to achieve this, it is advised to create a different Active Directory account with a stronger password.

3. Acquire the required bandwidth

A quick internet connection is essential while recovering from the cloud. The repair process of a business might be severely hampered by slow speeds. It is crucial to keep in mind that data can only go so fast over Ethernet, and moving terabytes of data can take days or even weeks.

4. Consistently verify the integrity of backups

Verify the backup’s functionality and file completeness by running restoration tests.