General

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.

The growing popularity of EVs will have a significant effect on several sectors of the automobile industry. What implications does this sharp rise in EV sales have for vehicle insurance then? Let’s look at the rise of EVs and what its implications for customers and auto insurance in Part Two.

Comparing insurance expenses: Electric vehicles vs. Gas-powered vehicles

Annual premium estimates from Quadrant Information Services were gathered in order to obtain additional understanding of EV insurance rates and how they differ from gas-powered car costs. The calculations were made using a driver who was 35 years old, had a spotless driving record, and good credit. The figures show expected premiums for comprehensive, collision, and comprehensive coverage as well as minimum-liability insurance for full coverage auto insurance policies.

For instance, the 2022 Nissan Altima and 2022 Honda CR-V are gas-powered vehicles whose typical yearly insurance rates are $2,263 and $1,808, respectively. In contrast, the 2023 Tesla Model S and 2023 Nissan Leaf S are both electric cars that will cost a driver $4,762 and $2,374, respectively.

The average cost of insurance for electric automobiles is also typically higher, though this depends on the make, model, and year of the car. In 2023, the average annual cost of full-coverage auto insurance nationwide will be $2,024. The coverage costs of the electric cars on this list range from 10% to 135% more than the national average.

Strategies for electric vehicle owners to reduce car insurance expenses

EV drivers will save money on standard automobile ownership expenses by not having to pay for gas or oil changes, but they can also reduce the cost of insurance by utilizing local, state, and federal rebate programs.

For example, at the state level, low-income Californians may be eligible for more than $30,000 in incentives toward the purchase of a new EV, and Colorado offers up to $8,000 in rebates for people who buy or lease an electric car. Many states have utility providers that provide discounts and other incentives to customers who install specific EV charging stations in their homes.

Federal tax benefits are also offered to owners of specific EV brands and models. A tax credit of up to $7,500 is available under the 2022 Inflation Reduction Act to individuals who buy an eligible electric vehicle (EV) with a battery capacity of at least seven kilowatt hours. The expiration date of this credit is December 2032.

Using the discounts on auto insurance that are offered by an insurer is a terrific method to save money in addition to credits and rebates. Many large insurance providers provide discounts to responsible drivers, multi-vehicle policyholders, and customers who combine auto and other policies. Lower premiums can also result from choosing a greater deductible, but doing so increases the amount of money drivers must pay out of pocket for repairs.

It will be more crucial than ever to compare auto insurance quotes from several companies because we anticipate some volatility in the price of electric vehicle insurance in the years to come. This is among the greatest ways for drivers of electric vehicles to locate coverage that meets their needs and is both inexpensive and of high quality.

The implications of electric vehicle (EV) growth on the insurance industry

With the rapid growth of the electric vehicle market, car insurance firms are already changing and there will definitely be more changes in the future. Insurance firms would likely need to change their underwriting methods and risk assessments to take into consideration the unique characteristics of EVs. Charge infrastructure, battery range, and the availability of authorized repair facilities are just a few of the variables that may affect premiums.

Elevated expenses associated with collision insurance

The costlier collision coverage will likely be the most noticeable impact EVs have on insurance. This kind of insurance covers the cost of repairs to your car in the event that you cause an accident.

Compared to traditional gas-powered cars, electric vehicles (EVs) require more expensive replacement parts and repairs. As was already established, this problem is even worse if an accident damages an electric vehicle’s battery. Insurance companies will have to control this risk by charging more for EV crash coverage.

Do you need extra insurance for home charging?

Another consideration for insurance providers is using a home charger for an electric car. For EVs, home charging involves two primary stages:

Level 1: Charge your electric car using the provided charger. Any standard 120V outlet can be used with it. Despite its convenience and ease of setup, level 1 charging requires more time than other charging techniques.

Level 2: You need to purchase individual chargers for your electric vehicle in order to employ this technique. Large equipment like laundry dryers require 240V outlets, which are also needed for level 2 charging. When compared to Level 1 charging, this method charges batteries three to seven times faster.

There are no further home modifications needed for Level 1 charging, which is a straightforward charging technique. Although adding a new 240V outlet is usually required for a Level 2 home-charging system, insurers do not require EV owners to get extra homeowners’ insurance. However, some insurance companies could require proof of the proper installation of the home charging equipment.

Enhanced training and fresh policies

As EVs become more and more common, auto insurance companies will need to adjust the way they operate. This is particularly valid in the case of assertions.

Additionally, there’s a strong likelihood that new categories of auto insurance plans will emerge to meet the needs of developing EVs. Insurance firms may develop new plans or increase coverage options tailored exclusively for EV owners as the market for electric vehicles grows, keeping a watch on the always changing trends in the electric car sector.

The EV revolution: Final thoughts

It is too early to tell how EVs will impact the auto insurance market. We do know, however, that as EV market share increases in the United States, insurers will need to modify coverage options and provide agents with the necessary training to manage EV-related claims with ease. Average premiums will probably level out as the market adjusts to the growing number of electric vehicles on the road, even if consumers are presently paying higher-than-average premiums to safeguard their electric cars and should continue to expect high expenses soon.

The era of electric vehicles is now formally upon us (EV). By 2022, there will be more than 10 million electric vehicles sold worldwide. By 2030, the International Energy Agency (IEA) predicts that this number will almost triple. There are currently 3 million electric vehicles (EVs) on the road in the United States alone, and there are more than 130,000 public charging stations. These numbers are only expected to rise.

The growing popularity of EVs will have a significant effect on several sectors of the automobile industry. What implications does this sharp rise in EV sales have for vehicle insurance then? Let’s look at the rise of EVs and what its implications for customers and auto insurance in Part One.

The implications of electric vehicles’ ascendance for consumers

Beyond having reduced fuel expenses, electric vehicles (EVs) provide several other advantages to users, such as fewer moving components that can break down, no need for oil changes, and typically less wear and tear on brake systems than their gas-powered competitors. But EVs are also more expensive to insure than conventional combustion-engine cars because of their higher sticker prices.

What causes higher insurance costs for electric vehicles?

In addition to being more expensive than the majority of conventional cars, EVs also require more expensive maintenance and replacement parts. These are the two main causes of consumers’ increased EV auto insurance rates, according to Kelley Blue Book.

The average cost of a new electric vehicle was $58,940 in March 2023. This is over $10,000 more expensive than the $48,008 industry average for a new car at that time. Car insurance premiums are directly impacted by a vehicle’s MSRP; therefore, EV owners can expect to pay more for coverage.

Premiums for EV insurance are also significantly influenced by high repair expenses. An electric vehicle’s components are less likely to break down, but the ones that do cost a lot more to replace or repair. This is particularly true if the battery pack on an EV is harmed. According to Consumer Affairs, replacing an EV battery can cost anywhere from $4,500 to almost $18,000 on average.

Another issue facing EV owners is a lack of skilled repair facilities and experts. When it comes to repair alternatives, buyers will have fewer options and pay more because electric vehicle technicians need specific training. For EV drivers, the cost of insurance is increased by each of these considerations.

What should consumers anticipate regarding electric vehicle insurance expenses?

Repair prices and MSRPs will undoubtedly decline as electric vehicles proliferate and account for a growing portion of the automotive fleet; insurance costs will likewise inevitably decline in tandem. But EV insurance premiums will likely be more expensive in the near future than those for regular cars.

With over 14 years of experience dealing in personal lines insurance, registered insurance agent Nick Vitali discussed his thoughts on how a rise in EVs would impact consumers. While Vitali conceded that future insurance premiums will probably rise due to significant repair costs, he also highlighted several advantages for electric vehicle owners. He discussed how some insurance companies actually provide discounts or incentives for EV owners because electric vehicles (EVs) are more environmentally friendly and have less fire-related accidents.

Comparing repair expenses: Electric vehicles vs. conventional gas & hybrid cars

Here are some yearly repair cost estimates from RepairPal for more background. For instance, a gas-powered Toyota Corolla typically costs $362 to repair, whereas a hybrid Toyota Prius and a gas-powered Nissan Altima often cost $408 and $483, respectively.

In contrast, the average repair expenses of two electric vehicles, the Tesla Model S and the Nissan Leaf, are $1,047 and $748, respectively.

Stay tuned for Part 2 of the article, coming soon.

As natural disasters like wildfires and storms become more severe, many insurance companies are limiting their coverage in certain areas or reducing what they’ll pay for repairs.

A lesser-known part of the financial industry, called reinsurance, is playing a crucial role in these changes. Reinsurance companies step in with large sums of money when disasters, like hurricanes or wildfires, cause widespread and expensive damage that regular insurance companies can’t handle on their own.

At the beginning of this year, almost all reinsurance companies raised their prices. This meant higher costs for insurance companies, including major national carriers like State Farm and Farmers, as well as smaller specialized firms. Negotiations between insurers and reinsurers, including companies like Swiss Re and Odyssey Re, have been tense.

Reinsurers have been losing money in recent years as they competed to offer the best deals to customers. However, last year, they decided that this kind of competition wasn’t worth the cost. The price increases in reinsurance have accelerated changes in an industry grappling with rising uncertainty due to global warming, more intense storms, increased costs of rebuilding after disasters, and higher global interest rates.

Insurance companies have paid out around $40 billion to U.S. customers this year, setting a record for yearly losses. This rising cost affects everyone, from the leaders of large companies to homeowners and small businesses.

Reinsurance prices increased by as much as 40% on January 1, leading insurers to make changes in their offerings. Some insurers stopped accepting new applications for certain policies, and reinsurers specialized in agriculture insurance pulled out of Iowa, where a severe windstorm caused significant damage three years ago.

As a result of higher reinsurance costs, insurers also increased prices where regulations allowed, especially for insuring new developments in places like Denver and Calgary, Alberta, where stick-frame housing is booming.

Severe thunderstorms in the United States have caused nearly 70% of the global losses from natural disasters this year. Experts predict that reinsurance prices will stay high for a significant period, and insurers might need to raise prices even where regulators resist such increases.

With reinsurers pulling back, some insurance companies are exploring alternatives to secure backup funds, such as catastrophe bonds, which let investors provide money for major-disaster losses in exchange for regular payments.

However, not all reinsurers are taking a step back. Recently, Berkshire Hathaway and Citizens Property Insurance Corporation, the state-run insurer in Florida, reached a $1 billion agreement. This is Citizens’ biggest coverage arrangement for traditional reinsurance with a single company to date.

Reinsurers may reenter the market in quest of profits, despite the opinion of some analysts that reinsurance rates could drop earlier than anticipated. This dynamic market means that insurance premiums and disaster coverage are continually changing.

The insurance industry has struggled to keep pace with innovation in other sectors

In comparison to other industries, the insurance sector has struggled to keep up due to low levels of innovation.

This is partially because consumers are less interested in insurance goods until an urgent need arises, and partly because providers must adhere to stringent risk and compliance regulations and use rigid legacy systems.

To make their product more relevant to clients, insurers have therefore had less need—and less ability—to innovate. As a result, many existing players have concentrated on solidifying their positions, making business expansion more challenging, expensive, and complex.

As a result, insurers are increasingly looking to collaborations with insurtech companies as the “magic solution” to quicken the insurance industry’s digital transition.

Customers may manage their insurance portfolio and submit a claim with the assistance of chatbots powered by AI, for instance.

When combined with behavioral data from smart watches or cars, the use of AI and machine learning technology can aid insurance carriers in the detection of fraud, support the development of new business models, and help customize plans and lower premiums.

The idea of “embedded insurance” is, nevertheless, possibly, the most significant trend and the strongest growth lever for insurance providers. This is not a brand-new business model; rather, it expands the reach of what we have come to refer to as “bancassurance” to new prospective retailers that sell goods or services to customers online.

When a consumer is making a transaction, embedded insurance allows suppliers to sell micro-insurance goods or services. A prime illustration of that is when you get travel insurance along with a ticket or vacation.

Because of this, integrated insurance must be digitalized, whether through online sales channels, e-commerce platforms, apps, standalone websites, or even at non-points of sale. And to accomplish this, most insurers must collaborate with insurtechs.

Legacy insurers can modernize by expediting innovation in the sector

There are many other ways for businesses to update their outdated platforms, and not all of them entail integrating with an insurtech’s platform.

There is no one technique that works for everyone, and the best course of action greatly depends on the current status of the organization’s strategic goals and the design of its systems.

Many businesses should start by prioritizing modernization and innovation and spending the necessary time and money to outline their strategies.

Implementing innovative working practices like Agile or DevOps, which will hasten innovation and the development and deployment of systems, is one such strategy.

Additionally, businesses may try to re-architect their systems using techniques like microservices, modularization, or containerization to increase agility while reducing complexity and interdependencies.

Companies may need to adopt an API-first strategy or migrate (or partially migrate) their old systems into the cloud if they wish to benefit from insurtech innovation. They might even decide to replace their legacy systems completely, which would be a huge move.

Companies may think about collaborating with an expert partner to assist them sort through the plan and determine the best course of action given the variety of possibilities, the potential cost, risk, and complexity involved.

Key factors to prioritize when modernizing legacy systems

When modernizing systems, there are several factors to consider. Among the crucial ones are:

Business impact: How does the current system affect the company’s present and long-term strategic goals? How well does the system satisfy customer needs, and what maintenance risks exist, such as downtime and security issues?

Cost-benefit evaluation: What are the costs associated with operating the current system, taking into account the cost of construction, upkeep, licenses, and the financial impact of unavailability? What are the expenses incurred by modernizing, as well as the financial gains in terms of spending, productivity, and client retention?

Technical debt and complexity: How much complexity has built up over the years, considering obsolete technologies, unsupported software, and intricate interdependencies? What effect do these have on technology integration, maintenance, and stability?

Interoperability and integration: How effectively does the current technology suit the needs for interoperability and integration with internal and external systems now and in the future? Can the system support contemporary APIs, data formats, and protocols? How well does it integrate with other technologies, such as cloud, mobile, and third-party systems?

Future scalability and innovation: To what extent is the system capable of supporting foreseeable expansion and innovation? Can it support cutting-edge technologies like artificial intelligence (AI) and machine learning, and can new features and functions be added quickly and easily thanks to the architecture’s support for modular upgrades and agile development?

Think again if you believed that the digital nomad was just a passing fad that would soon fade away. 69% of digital nomads said they intended to maintain their way of life for at least the next two to three years in 2022. This is an increase from 54% in 2021 and 49% in 2020, and the rate is just going up.

Employers understand. With ongoing shortages of competent people, work-from-anywhere employment policies are gradually becoming a mainstream strategy. Companies in talent-shortage hot regions are rated highest in the world when it comes to remote and flexible working arrangements, according to a new analysis based on 50,000 global remote job offers.

To realize this new reality, the legacy insurance market still has some catching up to do; most still price mid-term policies as though digital nomads are high-risk drifters. The truth is that these shifting trends have given rise to a brand-new, multi-billion-dollar insurtech potential for the increasing number of digital platforms that are now available to meet the demands of this industry.

The emergence of digital nomad platforms

An estimated 35 million people work remotely as digital nomads, adding $787 billion to the global economy each year. With services in travel, employment, community, and education, the market for platforms serving this economy is huge and expanding quickly.

The effect of the digital nomad way of life on trends in home leasing alone is intriguing from this mix of possibilities. The acceptance of temporary and intermediate agreements is growing in society. A few of the services that are offered alongside Airbnb are those from Housinganywhere, Anyplace, Flatio, Nomad Stays, and Selina. Even platforms that will plan your entire vacation for you exist, such as NomadPass and BoundlessLife.

These platforms now have the option of providing insurance policies that are tailored to the requirements of the nomadic lifestyle in short-term rentals thanks to the quickness and ease of embedded APIs from insurtechs. In this area,  five immediate opportunities have been identified:

Exploring five insurtech avenues tailored for the needs of digital nomads

1. Deposit-free rental insurance

Digital nomads who may only wish to stay for a few months or who are less likely to have the money to fulfill these high demands every time they relocate may be put off by the traditional three-month upfront deposit.

With a level of protection significantly greater than the conventional cash deposit or rent guarantee, rental insurance is a creative method to do away with deposits. It might also be simpler to maintain. Insurtechs can do this through a digital method that enables landlords to provide this option to applicants so they can rent out their houses more rapidly.

2. Coverage for your assets: Property insurance

Renting homes for months at a time is common for digital nomads, who typically stay in them for longer periods than regular visitors. Due to the trend of mid-term rentals, nomads may have greater duty and accountability for the upkeep and quality of the properties they occupy. Furthermore, they are probably storing more expensive personal items at the rental home.

Digital nomads require property insurance that is more suitable for their circumstances because typical tourist plans do not cover these situations. From the standpoint of a landlord, digital nomads can provide new dangers or obligations, such as the possibility of wear and tear from constant use or migration to the building and its belongings.

3. Safeguarding your earnings

The income of digital nomads can be unexpected and unstable because they frequently work as independent contractors or manage their own enterprises. This group may find great appeal in an insurance plan that offers a safety net in the event of contract or income loss.

This product could provide adjustable premiums like pay-as-you-go rates based on real earnings or project-based premiums related to certain contracts to accommodate variable income streams. These methods can make it possible for digital nomads to match their insurance costs with their income, making insurance more affordable and guaranteeing they are adequately covered both during successful and difficult times.

4. Securing remote work environments

This would include any occurrences like equipment theft or damage, cyberattacks, or data loss that could limit a digital nomad’s capacity to work remotely. Additionally, it can include paying for unforeseen expenses that might arise, such as quickly securing new employment.

It is advisable to provide covering for costs associated with moving to a new workspace, such as temporary co-working space rents, internet access options, or travel costs. Insurance plans can give digital nomads peace of mind and financial security in the event of unanticipated setbacks by providing thorough coverage for both the logistical and physical components of remote employment.

5. Insurance for cancellations

A host who provides insurance to cover cancellations or short trips is preferred by many guests. The benefits accrue to both parties: guests gain the certainty that they won’t be charged if their plans change, while hosts get to see some cash if their guests change their minds.

Platforms may provide visitors with cancellation and interruption insurance as an add-on service even if hosts do not include it in their offering. In my experience, nomads have a natural desire to move around and may try to extend or shorten their stays as necessary.

With their ability to leverage AI and data analytics, insurtechs may potentially have an inherent edge in any situation. In several businesses, affiliate partnership programs now make up a sizable portion of what is being offered as additional services. Additionally, embedded APIs have made it quick and easy. There is still room for growth in the mid-term insurance market for digital nomads, where specialized platforms may provide customers additional service advantages.

The Covid epidemic has had a huge impact on the insurance industry’s technological strategy, according to a new special report by AM Best.

However, the pandemic sharpened the industry’s focus on innovation, according to the rating agency. Property and casualty (P&C) insurers have traditionally concentrated on data.

Businesses can become even more data-driven through digitization, and predictive modeling gives insurers a competitive advantage as they work to set premiums that are in line with the actual underlying risk.

According to the AM Best research, “ultimately, Covid led to a sense of urgency for digital transformation.”

The industry’s perspective of what is feasible has changed in the wake of Covid, particularly for product categories like home and motor that are becoming more integrated with Internet of Things gadgets that monitor driving behavior and water leakage in houses.

According to AM Best, the requirement to adopt remote processes has given energy to boost insurers’ digital literacy and launch initiatives to update procedures and systems. These processes range from consumer engagement to claims assessment to remote personnel.

All insurance segments and lines of business are experiencing a transformation in their underwriting capabilities due to the explosion of data and increasingly sophisticated telematics. Particularly regarding small business and personal motor lines, this is the case.

According to AM Best, the more creative players are utilizing machine learning and data sources to improve underwriting capabilities by looking beyond normal automation.

In an effort to actualize a future in which the majority of policies go through straight-through processing, the most forward-thinking carriers are continually experimenting, according to AM Best.

Innovative insurers have also used data analytics to create more specialized goods and services for new risks, like the developing cyber insurance sector.

The reinsurance industry, according to the research, tops the industry in terms of innovation. Because they are one or more steps removed from the final policyholder, it is highlighted that they have had to grow in disciplines including enterprise management, portfolio development, and risk accumulation.

“This has become evident recently with the series of losses due to significant natural catastrophic storm activity, which has been exacerbated by secondary perils and heightened inflation,” AM Best says. 

To remain sustainable, significant, and prosperous, insurers have been forced to develop an inventive culture in response to the ongoing challenges posed by these high severity events and competitive pressures.

LenderDock Inc., the leading provider of online Property and Casualty Insurance policy verification and automated lienholder process management services, is pleased to announce a new relationship with Westwood Insurance Agency LLC, an indirect subsidiary of BRP Group, Inc. (NASDAQ: BRP).

“Westwood is a smart and strategic company that has made a point to continually improve operational efficiencies and internal workflows in order to better serve their customers and to support growth opportunities. We are thrilled about the collaboration and synergies between both organizations,” said Frank Eubank, LenderDock’s CEO.

Westwood Insurance Agency will take full advantage of LenderDock’s Verifi™, Correxions™, and LenderDocs™ solutions.

The first tool, Verifi™, is a real-time insurance policy verification system. Verifi™ eliminates the need for phone calls for policy verification, resulting in a quicker and more effective process.

With the second tool, Correxions™, lenders can send adjustments to the carrier directly, automating the process of changing policy information. This enables carriers or providers to process the updates quickly and effectively in accordance with their own protocols.

Finally, LenderDocs™ offers financial third parties electronic and real-time access to critical policy-related papers including EOIs, Certificates, and others. This facilitates the acquisition and dissemination of these documents, making it simpler for business partners to handle their policy data.

About Westwood Insurance Agency

Westwood Insurance Agency is one of the largest personal lines agencies in the United States, having helped more than a million people protect what matters most since its founding in 1952. As a full-service agency, Westwood offers a complete array of personal, commercial, and surplus line products. Westwood partners with the world’s leading insurance products. For more information, visit http://www.WestwoodInsurance.com.

About LenderDock Inc.

Headquartered in Salt Lake City, Utah, LenderDock Inc. is the leading provider of online Property and Casualty Insurance policy verification and automated lien holder process management services. The policy verification-as-a-service (VaaS) platform offers banks, lenders, and financial third parties the ability to digitally verify and correct home and auto policy-related data in real-time.