Tough Times Ahead for Workers’ Compensation, Adapting to the Tech-Driven Insurance Industry, Disruption in the Insurance Industry, Sluggish U.S. Commercial Insurance Prices, Millennials Hate ‘Being Sold to,’ Insurance Industry Employment Up, Key Takeaways at the Entrepreneurial Insurance Symposium
IBA: Tough Times Ahead for Workers’ Compensation: Report
The impressive results enjoyed by the workers’ compensation industry are unlikely to continue, a new report from Conning Inc. shows.
The study, released this week, suggests that while workers’ comp premiums have been rising in the past six years thanks to growth in payrolls and the expanding economy, it will soon be eclipsed by the softening insurance market and meteoric rise in medical costs.
“Workers’ compensation insurers have seen substantial improvements in recent performance thanks to years-long focus on safety and loss prevention programs, medical loss containment and return-to-work initiatives,” said Steve Webersen, head of insurance research at Conning. “While these have all benefited the industry, it is increasingly clear that workers’ compensation insurers are now facing a turn in fortune.” Read the full article now…
INN: How Swiss Re is Adapting to the Tech-Driven Insurance Industry
Technology is making the insurance industry more efficient despite headwinds from the traditional environment, according to Swiss Re.
At the reinsurance industry’s yearly Rendex-Vous conference in Monte Carlo, the global reinsurer said that technology transformation is a core strategy for the company. The company cited its work on analytics, telematics and cyber risk as evidence. It also affirmed a commitment to the growing insurtech sector, including the launch of an accelerator program in Bangalore and stakes in wearable physiology monitoring company Biovotion Ltd and personal data start-up Digi.me.
“Being at the centre of the technological transformation that is unfolding is a key part of the strategic framework we launched last December,” company CEO Christian Mumenthaler said. “With our knowledge and differentiation we want to seize the momentum so we can help our clients adapt and thrive.” Read the full article now…
PC360: Disruption in the Insurance Industry: Displacement or Innovation?
According to James Keating, founder, CEO and chairman of Phoenix-based TKG Wholesale Brokerage (formerly known as the Keating Group), there are two kinds of disruption the insurance industry is facing: displacement and innovation.
Keating was part of a panel called “Disruptors” at the 10th annual Entrepreneurial Insurance Symposium, in Dallas, Texas, Sept. 7.
Another panelist, Matt Miller, founder and CEO of San Francisco-based Embroker, said that disruption in this case means technological change and improvement. “Insurance has been protected by the complexity of its products, but that’s changing.” Read the full article now…
Carrier Management: U.S. Commercial Insurance Prices Continue Sluggish Advance: Willis Towers Watson
“Flat” continues to be the norm for U.S. commercial insurance prices as 2016 advances. Prices in aggregate for the sector ticked up by less than 1 percent in the 2016 second quarter, just as they did in Q1 according to Willis Towers Watson’s latest Commercial Lines Insurance Pricing Survey.
“The CLIPS results continue to highlight the different realities of the commercial market,” Alejandra Nolibos, director in Willis Towers Watson’s Americas Property & Casualty Insurance practice, said in prepared remarks. “Yes, the overall result is a modest increase in prices. But that simple measure masks opposing and persistent trends by line worth paying attention to.”
The CLIPS survey compared prices charged on policies underwritten during the 2016 second quarter to the same period in 2015. Read the full article now…
Carrier Management: Millennials Prefer Online Shopping, Hate ‘Being Sold to’: Novarica Report
Carriers looking to attract millennial consumers need to make it easy to research and shop online, according to a new report, which found that 75 percent of respondents prefer shopping online rather than through traditional channels.
Millennials look for websites with customer reviews and side-by-side comparisons and would rather do their shopping without interacting with a customer service representative, the report from Novarica found.
“Millennials have defined ‘good’ consumer expectations based on experience in other industries, and they are sure to bring these expectations with them in interactions with the insurance industry,” said Rob McIsaac, senior vice president of Research and Consulting at Novarica and lead author of the report. “Millennial customers are not going to be satisfied with paper-based processes or sales that require office visits and in-person meetings. As we have said previously, legacy processes are for legacy consumers. If carriers are going to appeal to prospective millennial policyholders, they need to make strategic investments to understand and attract this demographic.” Read the full article now…
PC360: Insurance Industry Employment up Year-over-Year in Most Segments
In this crazy economy, it’s always a good idea to keep an eye on job numbers.
For the insurance industry, new competitors, an aging workforce, online sales and rapidly emerging technologies are added reasons to pay attention to employment data.
Employment in most segments of the insurance industry was up by varying degrees on a year-over-year basis in July 2016, according to Steven Weisbart, Ph.D., CLU, senior vice president and chief economist at the Insurance Information Institute. Independent claims-adjusting firms are the only insurance subsector that lost employees on a year-over-year basis. Read the full article now…
PC360: Key Takeaways: The Entrepreneurial Insurance Symposium, Day 1
One unintended consequence of the financial crisis and economic downturn is an increased willingness of potential entrepreneurs to take risks and offer new products, especially technology products across a wide spectrum of industries.
Entrepreneurs have also been encouraged by the rapid development of smartphones and how quickly users have adopted new apps for everything from games to monitoring their homes.
The insurance industry, too, has attracted its share of entrepreneurs and innovators, and they’ve found an opportunity to showcase their ideas at the Entrepreneurial Insurance Symposium, presented by the Entrepreneurial Insurance Alliance, now in its 10th year. Read the full article now…