The Intersection - The Blog

One Step Towards Customized Pricing

Location has an impact on individuals’ everyday activities. Choosing to take up residence far from work increases daily travel time and higher accident risk. Residing in a poorly lit neighbourhood increases the chances of break-ins. Living close to waterways entails flood associated risks. These variables have been taken into account for years when establishing the… Read more »

Digital Divide: A Tale of Two Insurance Models

Common wisdom says that insurers must adopt digital technologies in order to become more flexible, more innovative, and more effective. The alternative is to face ‘disruption’ with insufficient resources to respond. But is this assumption accurate? Let’s compare two insurer models and develop some thoughts on the value propositions. The ‘digerati’ Digital transformation is a… Read more »

Insuring the Digital Economy (Part 1): New Modes, New Methods

Insurers are realizing that the new digital economy is a prospect for growth (beyond cyber insurance). But insurers are also finding that they have to take different approaches to be successful in this world — and it involves making the insurance meet new demands. We’ll look at two examples. In this post (part 1 of… Read more »

New Customers, New Insurance products, Same PAS?

Looking at the current state of some insurers’ core systems in the P&C  insurance world suggests that certain IT managers and project sponsors would do well to spend a  bit of time meditating  on one of Thomas Pynchon’s proverbs for paranoids: “If they can get you asking the wrong questions, they don’t have to worry… Read more »

Will Technology Bring a New Insurance Model?

In the early days of my insurance career, an older, wiser colleague told me that the insurance business model was elegant in its simplicity.  It’s “money in and money out, and you take your profit from the float.” Things have changed. A number of analysts are suggesting that technologies are driving fundamental alterations to the… Read more »

Climate Change From Here and There: Some Canary, Some Coal Mine

When it comes to climate change, insurers have been consistent leaders in applying their trade to benefit their clients, other stakeholders, and the public in general.  A recent Intact announcement demonstrates this in spades.  However, there are others on the sharp edge of this phenomenon that we would do well to know for the future. Adaptation In… Read more »

Cyber Risk: Opportunities and Threats for Insurers

Uptake for cyber insurance has been challenging, according to the brokers I know who specialize in the product. However, recent reports say that this is turning  around, and it seems rates and premiums are rising as well. Question: Can the industry respond to turn these into opportunities? The turning tide According to a recent Wells… Read more »

Is UBI Trapped in a Cul-de-sac?

After a tire-burning leap out of the starting gate, the smoke is clearing around UBI in Canada and it’s looking like it might have been steered into a dead-end. Is it stuck, or will it one day find the open road? Let me know what you think. Assume a killer app … At an automotive… Read more »

Is Digital Changing Insurance Fundamentals?

We’ve spilled a fair amount of virtual ink on the use of digital technologies to market, sell, and service insurance.  That’s pretty straightforward.  More difficult is assessing the impact of digital technology on the core processes of insurance: underwriting, pricing, risk management, and claims. If we are seeing digital being leveraged in these areas, there… Read more »

Aligning Insurance and Emerging Technologies: Existential Requirement or A Step Too Far?

A recent report from SMA, “Emerging Technologies: Reshaping the Next-Gen Insurer,” has an ambitious scope, on which it delivers. Moreover, it contains a surplus of well-supported recommendations for aligning threats and opportunities driven by the technologies with changes in insurance purpose and process. The challenge we see for some insurers – especially one segment  of… Read more »