The Chronicle: Issue 2015-31, August 4, 2015
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What's Going Through The Intersection of Insurance and Technology?
A Midsummer Musing on Millennials, Boomers, Technology, and Insurance |
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Business of Insurance
ABI Research: Risks to drive cyber insurance market
Continued and sustained cyberattacks are having a ruinous effect on enterprises and driving up the cost of incident response. With over 900 million reported records exposed in 2014, more companies are seriously starting to consider transferring risks to insurance providers. But despite growing awareness of vulnerability to breaches and risk management strategies, less than 20% of large enterprises avail themselves of cyber insurance. For small- and medium-sized enterprises, the percentage is even lower, at less than 6%, according to ABI Research.
Technology
Accenture identifies gaps in corporate efforts against cyber risks
As companies embark on new digital business strategies, nearly two-thirds of C-suite executives report that their companies experience significant cyberattacks daily or weekly; however, only one-quarter of them said their organization always incorporates measures into the design of their company's technology and operating models to make them more resilient, according to a new Accenture survey of more than 900 executives. The Accenture paper, Business resilience in the face of cyber risk, also reported that in response to the situation, 88 percent believe their cyber defense strategy is robust, understood and fully functional. However, only nine percent of executives said their company proactively runs inward-directed attacks and intentional failures to test their systems on a continuous basis.
Gartner: The Internet of Things is creating new software vendors
The Internet of Things is turning many manufacturers of 'things' into first-time software vendors that need licensing and entitlement management (LEM) solutions, according to Gartner. By shifting product value from device hardware to the software running on the device and applying an appropriate licensing strategy, manufacturing product strategists can maximize revenue potential.
Celent report for purchase: Machine Intelligence in Insurance: Designing the Aware Machine
The topics of artificial intelligence, machine learning, deep learning, and cognitive computing have made their way into the popular business press. An insurance professional trying to stay informed of emerging technology may struggle to see the application of these technologies to their industry. A new Celent report, Machine Intelligence in Insurance: Designing the Aware Machine, provides an explanation of this space and its opportunities in insurance. It describes a model named the “Aware Machine,” identifies the characteristics of high-value problems best suited for such platforms, and suggests specific use cases to serve as proof-of-concept experiments.
Marketing
RIMS Benchmark Survey: Stable market shows slight decrease
In a relatively stable insurance market, businesses paid nearly 1 percent (.99%) less in 2014 than they did in 2013 to cover the total cost of risk (TCOR) after three consecutive years of increases, according to the 2015 RIMS Benchmark Survey. Key findings from this year's RIMS Benchmark Survey also included a decline in management liability, workers compensation, liability, and property costs; in addition, risk management administration costs dropped 5 percent as costs for both outside services and risk management department declined. The annual RIMS survey, produced with Advisen Ltd., is a single source of benchmark statistics with industry data for more than 52,000 insurance programs from almost 1,500 organizations – including the programs of 249 Fortune 500 companies. It tracks changes in insurance policy renewal prices as reported by North American corporate risk managers.
CIAB: P&C rates continued decline in Q2
The Council of Insurance Agents & Brokers' most recent quarterly Commercial Property/Casualty Market Index Survey shows that rates declined across all lines in Q2, continuing the downward trend from Q1. The market experienced premium rate decreases in general across all size accounts, with large accounts once again seeing the steepest drop. Commercial property, general liability, and workers' compensation premiums were most frequently reported down across all regions, with a slight uptick in commercial auto.
Consumer Information
SGI and police focus on commercial vehicle safety
The bigger the truck, the bigger the crash — Commercial drivers are held to a high standard as one risky manoeuvre could end in tragedy. This month, traffic enforcement will be focusing on commercial drivers, ensuring they're following the rules of the road to keep all road users safe. SGI, law enforcement, the Ministry of Highways and the Saskatchewan Trucking Association (STA) strive to create awareness that all motorists need to share the road safely.
IBC: Report on insured damage from June storm in Ontario
Insurance Bureau of Canada reports that the insured damage caused by the heavy rains and strong winds that swept southern Ontario on June 22 is estimated at more than 30 million CAD, according to the preliminary estimate by Catastrophe Indices and Quantification Inc.
CIBC poll: Canadians expect to be debt-free by age 56
A recent poll by CIBC finds that on average, Canadians expect to be debt-free by the time they are 56 years old, although some Canadians see themselves carrying debt well into their sixties. In addition, nearly a third (29 per cent) say they have no debt while 13 per cent say they will never be debt-free.
Claims
Celent report for purchase: Deal Trends and Projections in the P&C Claims Market, 2015 North American Edition
In a new report, Deal Trends and Projections in the P&C Claims Market: 2015 North American Edition, Celent analyzes deal activity for new core claim systems in North America using data from 12 vendors which reported their sales in two prior two-year periods. Celent believes that sales of P&C claims systems in North America will continue at a steady pace during the mid-2014 to mid-2016 period.