Category Archives: Technology

Disaster Preparedness, Disaster Resilience, Technology

Student Hacker Teams Showcase Their Winning Skills at PennApps 3rd Annual Hack-for-Resilience Competition

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From Friday, September 11 to Sunday, September 13, the third annual the Hack-for-Resilience competition (“H4R”) was hosted by Wharton Risk Center and the Insurance Information Institute’s (“Triple-I”) Resilience Accelerator as part of the PennAppsXXI hackathon. This year’s competition yielded an impressive array of powerful data, robotics and AI solutions, as well as unique perspectives on catastrophe preparedness and mitigation from the next generation of innovators and leaders.

Organized into two categories—Best Overall Hack for Resilience and Best Application of Insurtech—Hack-for-Resilience III was a virtual event conducted over 36 hours spanning 8:00 pm Friday night through 8:00 am Sunday morning. Students used Slack, Zoom and HopIn digital collaboration platforms, to recruit and select teammates, ideate, seek guidance from mentors, and produce and demonstrate hacks.

This year’s H4R attracted 38 teams from as far away as British Columbia, Brasil and India. Some interesting trends emerged: For 2020, several hacks used gamification—applying the principles and characteristics of video gaming to tasks and problem-solving—as a technique to teach and test catastrophe resilience. This year also saw numerous student innovators drawing inspiration from their own families’ recent natural disaster experiences.

A panel of judges that included Dr. Carolyn Kousky, Wharton Risk Center’s Executive Director and Dr. Michel Leonard, the Triple-I’s Vice President and Senior Economist, selected first- and second-place winning hacks in both categories. They are:

BEST APPLICATION OF INSURTECH

Winner: INSURA

Developed as a way to get households into a “resilience frame of mind,” INSURA uses location and historical loss data, to incentivize catastrophe resilience by making a game of preparedness and mitigation. Users enter information about their homes and known risks, and INSURA suggests mitigation activities and common household maintenance chores. Players are scored by calculated potential insurance premium savings.

Runner-up: CLAIM CART

Created in response to recent wildfires, CLAIM CART makes it easier for users to file claims for insured losses by guiding them step-by-step through creating an effective household inventory to receive maximum payout for their lost possessions. The app works by querying insurer and public loss and item pricing data to help people prepare for a disaster by more accurately presenting and organizing information about the contents of their home.

BEST OVERALL HACK-FOR-RESILIENCE

Winner: AIR.LY

Inspired by the development team members experiences during recent California wildfires, AIR.LY is billed as “the one-stop shop [for finding] safe outdoor retreats during wildfires.” AIR.LY helps delivers vital, in-real-time help to an often-overlooked group: persons afflicted with respiratory issues or other health complications.

Runner-up: Saving Our Souls (S.O.S.)

Designed and built by a team of high-schoolers, S.O.S. is story-mode game that allows players to choose disaster scenarios that present multiple options to instruct on fire and flood safety, as well as effective preparedness and evacuation practices.

First place-winning team members will each receive a $200 Amazon gift card for their winning hacks, while the runners-up each will receive a $100 Amazon gift card. New for 2020 is an additional reward for first place winners, entry into a Resilience Accelerator Lightning Rounds ideas showcase, where teams will demo their winning hacks to a panel of insurance innovation leaders and investors.

The Wharton Risk Center and the Triple-I wish to again extend our thanks to all who contributed to making Hack-for-Resilience III and PennAppsXXI a rousing success!

By James Ballot,  Senior Advisor, Strategic Communications, Triple-I

Disaster Resilience, Insurance Industry, Technology

Disaster Resilience Is Focus of Triple-I, U. Penn Student Competition

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By James Ballot, Senior Advisor, Strategic Communications, Triple-I

For the third year straight, the Insurance Information Institute (Triple-I) and the Wharton Risk Management and Decision Processes Center (Wharton Risk Center) at the University of Pennsylvania are co-sponsoring a student competition aimed at developing innovative solutions to real-world disaster resilience problems.

Held virtually, the third annual “Hack-for-Resilience” begins on Friday, Sept. 11 and concludes on Sunday, Sept. 13 as part of PennAppsXXI, the nation’s oldest student-run hackathon. The word “hack,” in the context of a hackathon, describes how multiple technologies can be used in new and innovative ways.

“This event allows the Triple-I and its Resilience Accelerator partners to bring together insurers and student innovators who have the same goal—to create new products and services that will reduce the risks people face from natural disasters,” said Sean Kevelighan, CEO, Triple-I. The Triple-I’s Resilience Accelerator was launched in 2019 to reduce the impact of extreme weather events on households and communities through insurance. 

The 2020 edition of this competition will give entrants from midnight on Saturday, Sept. 12 through 9 a.m. on Sunday, Sept. 13 to show their skills. During this time, teams of up to four students will conceive, test, and deliver working apps while others develop hardware solutions, Internet of Things (IoT) protocols, and data tools that can save lives and reduce property damage in the wake of a natural disaster.

 “Building resilience to disasters is more important than ever,” said Dr. Carolyn Kousky, Executive Director, Wharton Risk Management and Decision Processes Center, University of Pennsylvania.

A team of judges from Wharton Risk Center and Triple-I will award first- and second-place cash prizes in two categories: “Best Overall Hack” and “The Most Outstanding Application of Insurtech,” which is defined broadly as either a product or service that improves the insurance customer experience. The winning teams will be announced on Sunday evening, Sept. 13.

New to this year’s “Hack-for-Resilience” is that both first-place prize winners will participate in the Resilience Accelerator’s Lightning Round innovation showcase on Thursday, Oct. 22, 2020.

The first-place prizes in 2019 were awarded to the creators of Phoenix, an autonomous drone with the capacity to track and extinguish fires (Best Overall Hack) and WildFire Protect, a parametric insurance product which would pay a policyholder immediately after they incurred a wildfire-related property loss (The Most Outstanding Application of Insurtech).

You can follow this year’s competition on social media via the hashtag #H4R2020

Careers and Employment, Insurance Industry, Technology

Insurance Careers Corner: Q&A with Rahel Abraham, ClimaGuard

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By Kris Maccini, Social Media Director, Triple-I

Triple-I’s “Insurance Careers Corner” series was created to highlight trailblazers in the insurance industry and to spread awareness on the career opportunities within the industry.

This month we interviewed Rahel Abraham, CEO of ClimaGuard, a Houston-based start-up that provides protective coverings for cars (and personal belongings) to prevent valuable losses from flood damage. Rahel shared her inspiration for creating ClimaGuard, her experiences as a first-time entrepreneur, and how she prepped her business for hurricane season, amid a pandemic.

Name: Rahel Abraham

Current Role: Founder & CEO, ClimaGuard

Years at Company: 2 years

Tell me about ClimaGuard. What led you to start the company in 2018?

The idea of ClimaGuard came about a month after Hurricane Harvey. This event was a historical devastation – not only were residential homes flooded, but many businesses and vehicles were flooded also. I lost my car, and there was a shortage of rental vehicles. Living in Houston, I depend on my mobility – being vulnerable post the hurricane was a challenge. I realized that I needed help, and so did many of my neighbors.

Shortly after the storm, a friend and I thought of an idea to produce a protective covering. As more hurricanes hit, we realized that flood mitigation wasn’t going to be solved overnight, but that we could come up with a way to help people safeguard themselves in real time. My background prior to ClimaGuard was in Engineering, so I knew that I had the background to create a product that would work.

ClimaGuard protective coverings can be used for other purposes outside of automobiles. I have a client who used it to protect a grandfather clock that was passed down through generations. I wanted the covering to be large enough to fit a car, but easy enough to use for quickly packing other valuable items in the home – sofas, electronics, tables, etc.

As CEO, what’s top of mind as you look to grow your business?

There are two goals that are top of mind: 1.) Spread awareness about flood risks, and 2.) Encourage and empower at-risk communities to proactively mitigate. Education in creating awareness for disaster planning and mitigation is vital to the growth of ClimaGuard. Whatever life looks like post-event – whether it’s running for home supplies, shopping for groceries, or accessing temporary living (hotel) – you need mobility, and, more importantly, peace of mind throughout the event.

It wasn’t until I got flooded that I understood the challenges post-flooding, and the financial costs to recover. I was fortunate to have a support system, but I know individuals who are still trying to recover three years after Harvey. I’m focused on preparing individuals and communities to get back up and running as soon as possible.

Being a woman and Black-owned business, what challenges have you faced in growing the company?

I didn’t know anyone personally who ran a successful product-based company, or any start-up, in general. I quit my job to pursue my business, so my cash flow was limited. I relied on my savings in the beginning, because I didn’t know how to seek funding. I was concerned that I would lock my business into a situation that would prevent it from thriving, if I didn’t partner with the right people. Because I didn’t have the network here, I went overseas to build partnerships, understand manufacturing, and learn how to create opportunities.

What activities have you been involved in to help build networking and partnerships?

Prior to COVID-19, I was part of an accelerator program called DivInc out of Austin, Texas. Austin is a great community for start-ups, and I wanted to be in the mix among entrepreneurs who were also starting from the ground up. After completing that program, I began outreach specifically to dealerships and the insurance industry. These two markets have proven to be good partnership opportunities for ClimaGuard. With insurance, my goal is to touch on the fleet business, the rental car space, and the commercial and residential customer base. With the dealerships, I am seeking access to the residential and commercial buyers who are invested in protecting their assets.

[ClimaGuard is currently a participant in Triple-I’s Resilience Accelerator]

What advice would you give to aspiring entrepreneurs in seeking opportunities and overcoming challenges? 

Just like your ingenuity led to an idea that solves a real problem, that same creative thinking will lead you to solutions to overcome your challenges. Your path is your own, and you don’t need millions of dollars to make your start-up successful. You do not need a proven track record to show you are capable. It’s not a sprint, it’s a marathon, so don’t burn yourself out.

2020 is expected to be one of the worst hurricane seasons on record and the pandemic will bring about new challenges in disaster prep. How have these challenges impacted your business? How are you preparing for the season?

Currently, the nation is highly focused on COVID-19. The lack of attention to this hurricane season concerns me, however we are living in very unusual and uncertain times. Many of us, myself included, are taking things day by day. I’m trying to be observant of the climate and the emotional health of our communities. In terms of preparedness during hurricane season, I know that hurricanes and flash flooding only allow a few days of notice before hitting an area. I’ve ensured that ClimaGuard inventory is ready, and I’m prepared to ship units (with the available supply) through a local fulfillment business in Houston. ClimaGuard’s mission is to prevent loss from natural disasters, and we’re ready this season and preparing for next season. Our goal is increase inventory next year as we develop more opportunities with partners and retailers.

Disaster Resilience, Technology, Webinars

Lightning Rounds: Investing in disaster and risk management technology

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The Insurance Information Institute (Triple-I) yesterday hosted a webinar showcasing technology companies whose products mitigate the impact of severe weather on homeowners, businesses and communities. This is the first in a series of Lightning Rounds – fast-paced pitch panels for insurance and non-insurance investors.

The webinar is part of the Resilience Accelerator initiative, a collaboration of Triple-I, ResilientH2O Partners and The Cannon. 

During the Lightning Rounds, pre-vetted technology companies, equipment suppliers, integrated solution providers, and large-scale project development teams present their unique value propositions.

This Round’s focus was flood prevention. Shelly Klose, CEO of True Flood Risk described the company’s AI-driven risk management platform that provides individual property data, geolocation intelligence and risk scores related to flood risk in real-time without an on-site inspection. Tasha Nielsen Fuller, CEO of FloodFrame USA, presented a system which is installed underground around a structure, and automatically deploys in a flood, protecting the structure. Rahel Abraham, Founder and Chief Executive Officer of ClimaGuard, was inspired to invent a water-resistant wrapping for vehicles and other possessions when her own vehicle was flooded during Hurricane Harvey.

To view a recording of the webinar click on the video above.

Webinar overview

Part 1: A view from the C-Suite: Identifying the right technology and risk solutions

Brian Gaab, Strategy & Innovation, CSAA Insurance Group, a AAA Insurer

Susan Holliday, Senior Advisor, International Finance Corporation | The World Bank Group

Matthew T. Schneider, Co-CEO, Aon Risk Solutions, M&A and Transaction Solutions

Michel Leonard, PhD, CBE (Moderator), Senior Economist & Vice President, The Insurance Information Institute

Part 2: Use Cases: Bringing to market flood management solutions

Presenting Companies:

Shelly Klose, Founder and Chief Executive Officer, True Flood Risk

Tasha Nielsen Fuller, Chief Executive Officer, FloodFrame USA

Rahel Abraham, Founder and Chief Executive Officer, ClimaGuard

Panelists:

Brian Gaab, Strategy & Innovation, CSAA Insurance Group, a AAA Insurer

Susan Holliday, Senior Advisor, International Finance Corporation | The World Bank Group

Matthew T. Schneider, Co-CEO, Aon Risk Solutions, M&A and Transaction Solutions

Remington Tonar, Chief Resilience Officer and Senior Advisor, The Cannon

Richard Seline (Moderator), Managing Partner, ResilientH2O Partners

Disaster Resilience, Technology, Webinars

Triple-I, ResilientH20 Partners Launch Resilience Innovation Hub

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The Gulf Coast & Southwest Resilience Innovation Hub’s creation was announced on June 18 by the Insurance Information Institute (Triple-I) and ResilientH20 Partners and will be a key part of the Triple-I’s Resilience Accelerator initiative.

The Resilience Innovation Hub will allow private and public sector entities to collaborate and bring-to-market resilience and flood mitigation technologies. Moreover, the Hub will connect investors with governments and academic institutions while also highlighting pre-disaster mitigation success stories through a resilience portfolio and technology showcase program. 

The Innovation Hub is opening effective June 18 at the Cannon’s downtown Houston Cannon Tower, a venue which already houses workspaces where entrepreneurs gather as their ventures develop. The locale, also the headquarters for ResilientH20 Partners, is at 1801 Main Street, Suite 1300, Houston, Texas 77002. The Triple-I’s Resilience Accelerator initiative is aimed at reducing the impact of extreme weather events and building more resilient communities through insurance.

“As households and businesses learn from past natural disasters, especially those which struck the U.S.’s Gulf Coast, the Resilience Innovation Hub can accelerate the deployment of products, services, and projects aimed at reducing disaster-caused losses in consultation with insurance carriers and brokers,” said Dr. Michel Léonard, CBE, Vice President, Senior Economist, Triple-I and the Triple-I’s Resilience Accelerator lead.

“There has been a widespread interest in, and demand for, best-in-class actionable, alternative disaster mitigation solutions since 2017’s Hurricane Harvey and subsequent storms caused extensive insured losses to autos, homes, businesses, and governmental properties,” said Richard Seline, Managing Partner, ResilientH2O Partners. “Society saves six dollars for every dollar spent through mitigation grants funded through federal agencies and even more progress can be made on this front through further investment in pre-disaster risk mitigation.”

Nine of the 10 costliest hurricanes in U.S. history have occurred since 2004, as defined by private-sector insured losses paid to auto, home, and business insurance policyholders and FEMA National Flood Insurance Program (NFIP) payouts.

“The Cannon Tower will provide a seamless onboarding for the Resilience Innovation Hub’s activities. Houston is already home to networks which focus on issues like sustainability, green infrastructure, and smart cities,” said Remington Tonar, Chief Revenue Officer, The Cannon Startup Platform.

The Resilience Innovation Hub’s creation was announced at the second in a series of virtual Town Halls co-hosted by the Triple-I and ResilientH2O Partners. The session on “Technology, Innovation, and Investment” focused on investing in pre-disaster risk mitigation and featured presentations by:

A panel discussion followed, and it included the Cannon’s Remington Tonar; Aaron Chan, Scouting Manager at State Farm’s @Labs; and Edward Craner, Senior Vice President of Strategy and Marketing at Holt Caterpillar.

Emerging Risks, Technology

COVID-19 Spurs Jobs For Robots, Drones, Other Technologies

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COVID-19 threatens to overwhelm the U.S. health system in coming weeks, creating a need for remote services.

Robots, drones, and other technologies are being deployed in the fight against COVID-19, introducing new opportunities, challenges, and risks.

From “tele-health” solutions that facilitate care from a distance to robots that disinfect facilities to  drones that help manage crowds, the pandemic is spurring novel uses of existing technologies and could lead to new ones as nations, companies, and communities try to be better prepared for the next outbreak.

Telemedicine

Use of video conferencing and other forms of remote health-care delivery was developed to serve communities with few medical facilities. Today’s extreme circumstances, however, highlight its broader value.

Medicare this week said it will expand coverage for telemedicine nationwide to help seniors with health problems stay home and avoid coronavirus exposure. The virus threatens to overwhelm the U.S. health system in coming weeks, creating a need for remote services.

However, a patchwork of state-by-state regulations is slowing the advance of telemedicine.

“Oregon just rejected us because we didn’t have a facility there, and they told us to get one before we reapplied,” said James Wantuck, chief medical officer at San Francisco-based telemedicine firm PlushCare. “North Carolina, we found out, is really targeting retired doctors who previously had a license in that state, while other states like Mississippi, Colorado and Florida are making it very easy for our doctors to get licensed there.”

Over the past week, increased demand has slammed facilities that are used to serving only a few patients a day and now face backlogs.

“You can get the technology to support these astounding volumes,” said Roy Schoenberg, CEO of Boston-based telemedicine company Amwell. “But you’re very quickly getting to a point where the supply of medical services isn’t there. We need to have enough clinicians to allow us to handle that incoming volume.”

Robots

At the Wuchang field hospital in Wuhan, China – epicenter of the first coronavirus outbreak – a ward was staffed with 5G-enabled robots to help contain the contagion and alleviate the strain on human personnel.

Doctors in the United States used robot-assisted telemedicine to treat the first person in the country admitted to hospital with 2019-nCoV. In a two-bed isolated area at Providence Regional Medical Center in Washington – set up five years ago to deal with Ebola but never used – a robot equipped with a camera, microphone, and stethoscope enabled the patient consult with clinicians without direct contact.

Robots also are being used for disinfection.  Xenex robots – manufactured in San Antonio, Texas – use pulsed xenon ultraviolet-C (UVC) light to destroy pathogens. The company says its devices are being used to clean hospital rooms where there have been suspected cases of the new coronavirus. The robot can clean a room in as little as five minutes.

Los Angeles-based Dimer UVC Innovations has developed a germ-killing robot to sanitize airplanes. The robot – called GermFalcon – is being used at the Los Angeles International Airport, San Francisco International Airport, and John F. Kennedy International Airport.

Drones

In Spain, police are using drones to warn people to stay at home. Spain has declared a state of emergency and ordered citizens to stay indoors, apart from necessary trips, after reporting a sharp rise in coronavirus cases. BBC footage shows deserted Madrid streets policed by drones. The drones are controlled by humans who relay warnings through them via radio.

Similarly, in China drones were deployed to observe crowds and help manage traffic. People not wearing masks in public could be identified, and the drones were able to broadcast information to larger areas than regular loudspeakers. They also used thermal imaging to identify people with elevated body temperatures and were used to spray disinfectant in public areas.

Longer-term implications

Expanded use of these technologies against COVID-19 is a logical continuation of their evolution, but such advances don’t occur in a vacuum. Concerns about machines replacing human workers – especially if this outbreak ushers in a new era of “social distancing” – and about normalizing surveillance and use of drones for crowd control almost certainly will be raised.

If telemedicine gains greater traction, will cost efficiency conflict with efficacy of care?

Will internet-enabled technologies create more channels for cybercriminals to exploit?

Will greater social acceptance of technological solutions result in decreased attention to low-cost approaches to containment, like hand washing and environmental cleanliness?

Policymakers, corporate decision makers, and communities will need to address these and many other questions after this virus has been suppressed.

Technology

Algorithms, A.I.and Insurance: Promise and Peril

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By Max Dorfman, Research Writer

A couple of articles crossed our desk recently that discussed the benefits and pitfalls of algorithms and artificial intelligence (AI). Neither discussed insurance, but they offered important lessons for the industry.

Algorithms and AI can work quickly, but they aren’t perfect.

An algorithm is a simple set of instructions for a computer.  Artificial intelligence is a group of algorithms that can modify and create new algorithms as it processes data. Broadly, these smart technologies can drive untold change for the industry.

As the Financial Times wrote earlier this year, “Insurance claims are, by their nature, painful processes. They happen only when something has gone wrong and they can take months to resolve.”

Chinese insurer Ping An uses AI to accelerate decision making, and New York-based insurance start-up Lemonade employs algorithms and AI to help pay clients more quickly. Other insurers use smart technologies for fraud detection, risk management, marketing, and other functions.

What could go wrong?

Algorithms and AI can work quickly, but they aren’t perfect. A recent article by Osonde A. Osoba, an information scientist and professor with the RAND Corporation, details what data scientists call an “algorithm audit.” An algorithm audit detects biases or blind spots that skew results, making it necessary to review and test the underlying data.

In the case Osoba discusses, Apple Pay was assailed on Twitter by tech executive David Heinemeier Hansson for giving him a credit limit 20 times larger than his wife’s, despite their sharing all assets, among other factors. Hansson concluded that the algorithm was sexist – causing a furor on the social media platform among both those who vehemently agreed and disagreed with him.

Apple Pay said it doesn’t have information about applicants’ gender or marital status. Yet no one from Apple could answer why Hansson received a significantly higher credit limit. They responded: “Credit limits are determined by an algorithm.”

Still, these algorithms and AI are informed by something – perhaps the implicit biases of the programmers. For example, systems using facial recognition software have yielded decisions that appear biased against darker-skinned women.

Are algorithms easier to fix than people?

An article in The New York Times by Sendhil Mullainathan, a professor of behavioral and computational science at the University of Chicago, discusses human and algorithmic biases. He cites a study in which he and his co-authors examined an algorithm that is commonly used to determine who requires extra levels of health care services. This algorithm has affected approximately 100 million people in the U.S. In this case, black patients were routinely rated to be at lower risk. However, the algorithm was inherently flawed: it used data on who receives the highest amount of health care expenditures.

Black patients already spend less money on health care than white patients with the same chronic conditions, so the algorithm only served to reinforce this bias. Indeed, without the algorithmic bias, the study estimated that the number of black patients receiving extra care would more than double. Yet Mullainathan believes that the algorithm can be fixed fairly easily.

Contrast this to a 2004 study Mullainathan conducted. He and his co-author responded to job listings with fabricated resumes: half the time they sent resumes with distinctively black names; the other half with distinctively white names. Resumes with black names received far fewer responses than those with white names.

This bias was verifiably human and, therefore, much harder to define.

“Humans are inscrutable in a way that algorithms are not,” Mullainathan says. “Our explanations for our behavior are shifting and constructed after the fact.”

Don’t write algorithms off

As RAND’s Osoba writes, algorithms and AI “help speed up complex decisions, enable wider access to services, and in many cases make better decisions than humans.” It’s the last point that one must be particularly mindful of; while algorithms can reproduce and intensify biases of their programmers, they don’t possess inherent prejudices, as people do.

As Mullainathan puts it, “Changing algorithms is easier than changing people: software on computers can be updated; the ‘wetware’ in our brains has so far proven much less pliable.”

Technology

What’s Insurtech, Anyway?

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Perhaps it’s a symptom of buzzword fatigue that everyone in the insurance industry seems to use the word “insurtech” without agreeing on – or maybe even really thinking about – what it means.

Some use it as a noun, suggesting a type of company – typically a startup – that applies cutting-edge technology to insurance-related challenges. Others use it as an adjective to describe the technologies and applications themselves. Still others seem to take the position of U.S. Supreme Court Justice Potter Stewart, writing on a very different topic: “I know it when I see it.”

Whatever it is, insurtech is a rapidly growing feature of the insurance landscape, and many traditional insurers and venture capitalists are investing in it.

Insurtech doesn’t just mean offering products more quickly online. It means transforming the offerings and the customer experience.

Modernizing the value chain

Insurtech emerged around 2010 as an offshoot of a similar movement in banking, known as “fintech.” With providers of just about every other product and service embracing “Amazonation,” consumers have come to expect absolutely seamless service – wherever and whenever. Like those industries, insurers need to satisfy their customers while growing profitably and managing operational costs.

But insurtech doesn’t just mean offering products more quickly online. It means transforming the offerings and the customer experience.

Insurtech most consistently refers to the use of apps, wearables, big data, machine learning, and other technologies to automate and improve processes across the insurance value chain – from marketing and policy origination through underwriting, services, and claims.

Some applications focus on reducing friction in transactions; the time required to fill out an application and receive a quote is a classic example. Others seek to streamline and enhance back-end functions, such as risk assessment, pricing, loss control, and settling claims.

Claims: Ripe for insurtech

The claims process is particularly well suited for transformation. Insurers typically hire adjusters to determine the extent of their liability for a loss, damage, or injury and come up with a settlement. This can be time consuming, expensive, error prone, and, in some cases, dangerous.

Drivers can submit photos to their insurers via app immediately after an accident. Some insurers use machine learning and publicly available data to detect fraud.

Today, new approaches aid the claims process.

For example, drivers can submit photos to their insurers via app immediately after an accident. Some insurers also use machine learning and publicly available datasets to detect and flag potentially fraudulent claims.

As technology helps improve underwriting, policy administration and claims, new products are being developed and traditional ones can be handled differently.

One emerging approach – enabled by the intersection of telecommunications and big data known as “telematics” – is usage-based insurance (UBI), priced according to drivers’ own voluntarily provided behavioral data. A more recent stage in UBI’s evolution is pay-as-you-drive insurance, with monthly billing that varies based on mileage driven.

A similar trend involves using data from smart-home technology, such as water-monitoring systems that can anticipate and prevent leaks that might otherwise lead to claims. Advances in telematics and the Internet of Things are increasing the quantity and range of the data insurers will have at their disposal.

Obstacles remain

 Insurtech offers tremendous opportunities for innovation, but – as one of the most heavily regulated and publicly scrutinized industries – it faces obstacles. Many technologists driving the movement come from outside insurance. Few have navigated the legal, regulatory, and cultural minefields surrounding personal privacy and security.

Unlike many other industries, in which maximizing speed and satisfaction has become the prime directive, insurers are required by law to protect customers from privacy breaches and bias. Perusing social media for insights to help optimize user experience or using machine learning to anticipate and address changes in users’ buying behavior may be acceptable if you’re selling cars or cosmetics – but for insurers, their clients, and regulators it raises a host of red flags that have to be addressed.

Careers and Employment, Technology

SO, HAVE YOU THOUGHT ABOUT THE FUTURE…? The Coming Golden Age of Insurance

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By Sean M. Kevelighan, CEO, Insurance Information Institute

“What does the future of insurance look like?” It’s the question that’s launched a thousand publications and panel discussions. And it’s an essential one that covers a lot of ground. In my case, literally.

The Insurance Information Institute (I.I.I.) partnered recently with InsureTech Connect (ITC) and Gamma Iota Sigma (GIS) at the two organizations’ flagship events, InsureTech Connect 2019 in Las Vegas, and Gamma Iota Sigma’s 48th annual International Conference in Dallas. What we came away with from these back-to-back events were two distinct but nevertheless complimentary visions of how things are now and what’s to come.

Briefly put, the future of insurance will be largely to make good on past promises. And this is not because we’ve been remiss in our duties but because people now are able to build and implement the right tools for the job. Speaking before thousands of InsureTech Connect 2019 attendees, Glenn Shapiro, president of Allstate Personal Lines, was blunt.

He noted making policyholders wait several days for an auto repair estimate that takes only a few hours to complete is: “[N]ot a service experience that you would accept in any other part of your life!” Embracing Insurtech and the power of innovation enables insurers like Allstate to automate processes and replace outmoded legacy systems to make insurance a truly customer-driven business. Insurers are now able to provide security and empowerment to their customers.

Which brings us to … resilience.

Early in 2019, ITC selected the I.I.I. to co-host its Resiliency Innovation Challenge, a four-month-long competition for Insurtech start-ups whose businesses are focused on catastrophe resilience. Fast forward to the final day of InsureTech Connect 2019, and an impressive field of 22 Insurtechs was pared down to three outstanding finalists: WeatherCheck, True Flood Risk and Cowbell Cyber, whose CEOs presented their products and businesses to a panel of experts. The group included Susan Holliday, senior adviser to the International Finance Corporation in Washington, D.C.; Arlene Kern, a strategic innovation scout at Munich Reinsurance Co.; Lee Ng, vice president, Innovation, at Travelers Cos. Inc.; and Kevin Pray, vice president, Innovation, at The Hanover Insurance Group.

The finalists come at the problem of catastrophe risk from markedly different angles—preparedness, risk assessment, and risk management, respectively. The beauty of this diversity of thought was that we had disparate applications of data coalescing around the power of resilience. Congratulations to Demetrius Gray, CEO of WeatherCheck, who walked away with the first-place trophy, as well as to all the competitors who made the inaugural Resiliency Innovation Challenge a huge success.

One of the key takeaways from the Challenge was how resilience is benefiting and inspiring people in ways other functions of our industry cannot. Innovation and, more important, awareness of new solutions to manage risk makes the goal of creating safer homes, businesses and communities an attainable one. Young men and women embrace this philosophy.

We saw this first-hand in students who’ve chosen to study risk management and insurance at the Gamma Iota Sigma International Conference in Dallas, TX. There, I was honored to moderate a panel discussion titled, “Plan. Respond. Recover: The Power of Resilience,” with Dr. Nidia Martinez, director of Climate Risk Analytics/Capital, Science & Policy Practice at Willis Towers Watson; Dr. Roger Grenier, senior vice president, Global Resilience, at Verisk’s AIR Worldwide, and Alessa Quane, executive vice president, Chief Risk Officer at AIG.

The panelists shared their perspectives on topics ranging from the value of public/private partnerships in closing insurance coverage gaps; the sometimes overlooked but nevertheless consequential challenges posed to insurers by climate change (e.g., the need to guide energy businesses through “transition risk” while they retool to meet rising market demand for renewable resources); and how insurers are succeeding in building resilience.

Suffice it to say, putting two intensely forward-thinking and forward-looking events like ITC 2019 and GIS’s International Conference into perspective is a tall order. Given the dizzying array of people, places and presentations that blew past us in a single week, it was reassuring to be reminded again of a few key facts. The Insurance Information Institute represents an industry that’s going all-in on reinventing itself to serve customers and make our communities safer and more prosperous. And that many are eager to join the insurance industry in bringing this vision to life. Or to borrow the words of Jay Weintraub, co-founder of InsureTech Connect: “People really care about insurance.”

Sean Kevelighan is chief executive officer of the Insurance Information Institute, a non-profit research, education and communications organization dedicated to improving public understanding of insurance — what it does and how it works. 

Disaster Preparedness, Technology

University of Pennsylvania PennApps XX Hackathon Recap

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By Brent Carris, Research Assistant, Insurance Information Institute

Left to right: Brett Lingle, Zoë Linder-Baptie, James Ballot and Brent Carris

The Wharton Risk Center  and the Insurance Information Institute  co-sponsored the second annual Hack-for-Resilience at PennApps XX, the nation’s oldest and largest student-run college hackathon. Presentations were given by Carolyn Kousky and Brett Lingle of the Wharton Risk Center School; and the I.I.I.’s James Ballot.

From September 6 – 8, 18 student teams used software and hardware technologies to “hack”—conceive and build new apps and devices—ways to combat the risks posed by natural disasters, such as hurricanes, wildfires, and floods. The students also vied to create either a product or service that provided insurance in a customer-friendly manner, a category generally known as Insurtech.

A panel of judges from the I.I.I. and the University of Pennsylvania’s Wharton Risk Management and Decision Processes Center selected the winners.

First place in the Insurtech category was Wildfire Protect– a parametric wildfire insurance product designed to provide immediate payouts to insureds that experience property damage from wildfire.

Second place was a tie between Prophet Profit and Navig8. Prophet Profit is an app designed to help households save money by allocating funds in all sectors of the stock market. The Navig8 team created an app to assist the visually impaired communicate during a disaster.

First place in the resilience category was awarded to a hack called Phoenix. This team created an autonomous drone which detects and extinguishes fires.

You can see all other entries and winners here.