P&C Insurance Industry, Part 3

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Part
01

P&C Insurance Company Tiered Contacts, Pt. 4

Gayle O'Connell is the executive vice president and the chief marketing officer and Mary Anne Hailer is the director, corporate communications at the Arbella Insurance Group. The requested details for the listed insurance companies have been entered in rows 25-31 of the attached spreadsheet and a brief overview of our findings is presented below.

Shelter Insurance

RLI Group

FCCI Insurance Group

Research Strategy

To obtain information about the most senior communications people at the assigned insurance companies, we scanned their websites, databases such as LinkedIn and various news articles and publications. However, we found that none of these companies have a chief communications officer, so we added details for the chief marketing officer or the chief executive officer. We also added marketing contacts for companies that don't have a VP/SVP/EVP of communications or a director of communications. We couldn't find emails in the public domain for all the communications people, so we used email finder and verifier tools such as RocketReach, Voila Norbert and Hunter.io and then added the screenshots in the attached document.
Part
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Part
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P&C Insurance Company Tiered Contacts, Pt. 5

We were able to find most of the requested information for the companies listed in Rows 32-37 of the spreadsheet. The information we couldn't find was a third contact for EMPLOYERS, a Linkedin profile for Kevin O'Donnell, and the email address for anyone at Michigan Farm Bureau Insurance (even after checking email-finder tools such as Hunter and Rocket Reach). All the information we were able to find is included in the attached spreadsheet and an explanation of the information we couldn't find is provided in the Research Strategy section below.

P&C Insurance Company Tiered Contacts (Rows 32-37)

  • Scott Steele is the CEO of Church Mutual Insurance Group.
  • Keith Jensen is the Chief Marketing Officer for Plymouth Rock Assurance (Palisades Group).
  • Jennifer Abraczinskas is the Director of Marketing Communications for Genworth Mortgage Insurance.
  • Donald Simon is the CEO of Michigan Farm Bureau Group.
  • Ray Wise is the Chief Marketing Officer for EMPLOYERS.
  • Keil Gunther is the Vice President of Marketing & Communications for RenaissanceRE.

Research Strategy

As was stated in the introduction, the information we couldn't find was a third contact for EMPLOYERS, a Linkedin profile for Kevin O'Donnell, and the email address for anyone at Michigan Farm Bureau Insurance (even after checking email-finder tools such as Hunter and Rocket Reach).

With regard to a third contact for EMPLOYERS, we tried to find another individual in either communications or marketing by using three approaches. We checked the company's website (which only stated top-level executives), reviewed dozens of pages of contacts at the company on Linkedin (but no additional individuals were found in either a communications or marketing capacity), and searched for any articles that might have provided an additional individual, but we didn't find another individual with a communications or marketing title other than people we had previously provided. With regard to a Linkedin profile for Kevin O'Donnell, we searched Linkedin for such, but he doesn't appear to have a Linkedin because we found no matching results.

With regard to the email addresses for individuals at Michigan Farm Bureau Insurance, we looked for the email addresses for the individuals we listed in three different ways. We checked the company's website, checked their Linkedin profiles (because sometimes people provide their emails there, but these individuals did not), and we tried using an email-finder tool to at least find the common email format the company uses, so that we could have provided a likely email address for them, such as through Hunter and Rocket Reach (but there were no email formats provided for the company through those sources).

For some of the individuals, we had to use an email-finder tool to identify the common email format the companies use because we couldn't find their individual email addresses. The individuals we did so for were Scott Steele, Erin Pietsch, Thomas McInerney, Karen Carico, Ray Wise, Emily Ranson-Leverock, and Kevin O'Donnell. We used the email-finder tool Hunter and identified the common email format used at their respective companies (e.g. first.last@company.com). We then plugged in the respective parts of their names per those formats. In the spreadsheet, we noted that we used an email-finder tool for those individuals' email addresses because they are their likely email addresses.

We didn't find a C-suite communications executive for any of the companies. Thus, we provided either a Chief Marketing Officer or CEO. We only found one vice president of communications among the companies. For the other companies, we provided either a top-level communications leader (e.g. Director) or marketing vice president. Lastly, for a third contact, we were able to find a person working in communications for a few of the companies, but for the others that we could not find such for, we provided a marketing individual in lieu thereof.
Part
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Part
03

P&C Industry Trends, Part 1

Three trends in the U.S. P&C insurance industry for 2020 are using artificial intelligence (AI) to improve risk management, direct-engagement channels for small businesses, and creating new offerings to meet the needs of the sharing economy.

Determining Trends

  • To identify trends in the P&C insurance industry, we relied on a report from CapGemini, the second largest consultant by revenue for 2019, that has expertise in many industries, including insurance. They published a report in December 2019 where they identified ten of the top trends in P&C insurance. We examined the trends, and have included the three that we were able to provide the requested details for, including information on how different size insurers were impacted by the trend.

AI to Improve Risk Management

  • Although insurers have been using AI to automate processes, it has not been used extensively in risk management. The shift in focus includes looking at solutions that can provide real-time monitoring, continuous risk-assessment, and risk prevention.
  • AI can be used to identify claim trends, and provide information that will allow the determination of what interventions are necessary to drive improved outcomes.
  • The type of data that is most valuable to risk managers when making assessments is often data that takes time to access, such as claim notes and images. However, AI systems can organize and interpret this type of data quickly and easily, and ensure the risk manager has access to everything needed. AI systems also continue to learn as more data is provided, which means assessments can continue to improve.
  • The use of AI in risk management will likely lead to more predicting of risks, and ultimately, preventing them before they occur.
  • Insurers large and small are utilizing AI for risk management. Liberty Mutual launched Dwellbeing, a resource that monitors devices and systems within a home, and notifies homeowners when maintenance may be required. This is a strategy to ultimately reduce claims by identifying potential problems before they happen.
  • State Auto is an example of a smaller company ($1.3 billion in revenue in 2018) using AI. However, instead of implementing their own custom solution, they partnered with Flyreel.
  • Business Insider Intelligence produced a report on AI in insurance that was only available behind a paywall, but would likely provide additional helpful insights.

Direct-Engagement Channels for Small Businesses

  • When a small business purchases insurance, the owners generally make decisions and follow a process that is similar to what they would do when purchasing personal insurance. Therefore, insurers are providing digital platforms that provide convenience, agility, and personalization to these small business owners. Small business insurance is a growing market in the U.S., and about 40% of small businesses don't have business insurance.
  • The increase in the number of startups, as well as growth in the gig economy, means there are more small businesses than ever, which makes this a strategic market for insurers. In addition to these owners preferring to engage through digital channels, millennials also prefer engaging through digital, and with an estimated 60% of businesses being owned by millennials by the end of 2020, this is another reason for insurers to focus on this trend.
  • It is important that insurers who move to include digital channels as part of their overall strategy find a way to balance it with the continued use of agents and brokers. If they lean too heavily into digital, they could lose the loyalty of agents which could easily negatively affect their bottom line.
  • This trend is likely being led by disruptors entering the industry and forcing the larger insurers to follow. For example, Next Insurance was founded in 2016, and offers a 100% digital process for business owners to purchase insurance. The company also allows for coverage to be personalized to meet the individual needs of each customer. The company already has over 100,000 customers and has a 4.7 rating from those customers.
  • On the other end of the spectrum, Progressive launched the BusinessQuote Explorer in 2019, which allows small business owners to obtain accurate quotes, tailored to their needs in an average of 11 minutes.
  • These two examples indicate that the difference in how this is being used between companies of different sizes may be that it is the primary focus for smaller, newer insurers, and is being used as an add-on for larger more established companies. More research would have to be completed to determine if this hypothesis held under additional scrutiny.

Offerings Suited to the Sharing Economy

  • The sharing economy is growing, but about 58% of U.S. and UK consumers believe that the risks of sharing their assets outweigh the benefits of participating. PwC predicts the sharing economy will be worth $355 billion by 2025.
  • Regulations are starting to create insurance mandates around these sharing practices which will open a new market for P&C insurers.
  • Since the sharing economy involves using personal property for commercial purposes, it is likely that neither current personal nor commercial products will be a good fit to provide appropriate coverage. Additionally, the relative newness of the industry means that there isn't sufficient loss data to assess risk.
  • A report published in 2017, listed several insurers that had entered the sharing economy insurance space in the U.S., and the list included both larger established insurers such as Munich RE and Allstate, and newer insurtech players such as Slice and Metromile.
  • Trupo, a New York based insurtech company, partnered with the Reinsurance Group of America to provide insurance for freelancers in Georgia, while Allstate offers HostAdvantage, coverage for home-sharing hosts.
Part
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Part
04

P&C Industry Trends, Part 2

Two additional trends in the U.S. P&C insurance industry for 2020 are an increase in firms using the cloud to deploy core systems and the increased use of blockchain.

Determining Trends

  • To identify trends in the P&C insurance industry, we relied on a report from CapGemini, the second largest consultant by revenue for 2019, that has expertise in many industries, including insurance. They published a report in December 2019 where they identified ten of the top trends in P&C insurance. We examined the trends, and have included the three that we were able to provide the requested details for, including information on how different size insurers were impacted by the trend.

Core Systems Deployed in the Cloud

  • With increased competition and changing business dynamics in the insurance industry, firms must be digitally agile and improve operational efficiency. One tool to accomplish both of those goals is the cloud.
  • Legacy systems were not designed to integrate with the new technologies that are impacting the insurance industry, including telematics, chatbots, drones, and AI. It is also getting more expensive to maintain those systems.
  • Having systems in the cloud allows companies to create a seamless digital experience for customers. In 2017, 59% of new core systems purchased by P&C insurers were deployed in the cloud.
  • Accenture published a report in July 2019 that requires contact information to fully access. However, the summary data provided indicated that 90% of surveyed insurance executives reported they had a technology innovation plan for the entire company. Additionally, 68% had completed a formal review of how to move cores systems to the cloud.
  • Research found that companies of all sizes are making the move to the cloud, at least partially. However, for big companies like Nationwide, that move could include investing in the company that will be providing the services. An example of this is Nationwide's investment in Socotra.
  • Smaller companies are more likely to find a company that provides the services they need and partner with them. An example of this approach is Bear River Mutual Insurance choosing Duck Creek OnDemand to host their core services in the cloud.

Blockchain

  • Blockchain is one tool that insurers are using to help improve operational efficiency. There are many uses for blockchain within the insurance industry including asset tracking, claims processing, fraud prevention, and policy creation.
  • Some advantages of blockchain that could be particularly beneficial in the insurance industry are increased privacy and security, lower processing fees, and less human involvement.
  • There are regulatory hurdles that must be overcome before the technology can be fully embraced by the industry, but there is hope that blockchain can significantly reduce fraud, which accounts for 5-10% of claims costs. Processing claims and issuing policies are both areas that have the potential to be significantly improved by blockchain.
  • There are also some roadblocks to implementation which need to be considered as insurers look to move forward with the technology. Cost, the potential of cyber attacks, data integrity, and privacy are all potential issues that will need to be examined.
  • Lemonade is an insurtech company based out of New York, and uses blockchain for smart contracts that are designed to ensure customers can get paid quickly when they file a renter or homeowner claim.
  • We did not find any specific examples of large insurers currently using blockchain. This is likely because the roadblocks described above require research to determine the best way to safely and effectively implement the technology.
  • The Blockchain Insurance Industry Initiative (B3i) launched in 2018 and is owned by 20 companies in the insurance market worldwide. Some owners include Liberty Mutual, Munich RE, and SBI Group.
  • B3i focuses on creating software applications that are based on blockchain. Their first product, a Catastrophe Excess of Loss product for the reinsurance industry, was launched in late 2019.
Sources
Sources