INSURANCE NEWS FLASH October 16, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance.................................................................................................................................. 8 Technology .......................................................................................................................... 12 Strategy .............................................................................................................................. 16
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Sales & Marketing ACE Life adds insurance benefits to illness product October 03, 2014 | intellasia.net http://www.intellasia.net/ace-life-adds-insurance-benefits-to-illness-product-393457 ACE Life, the global life insurance division of ACE Group, has announced new additional insurance benefits to the Premier Universal Life 2013 product for critical illnesses in Vietnam. With the Staged Critical Illness (SCI) and Multiple Pay Critical Illness (MPCI) benefits, the comprehensive insurance plans provide financial security for the family when the insured suffers from specific critical illnesses, which may affect the family’s incomes. SCI focuses on supporting the treatment cost in the early stages while MPCI pays up to 300 percent of the insured amount with multiple claims protection for up to three different critical illnesses diagnosed. In addition to protecting the clients’ financial sources for up to 40 critical illnesses, all premiums paid for these supplementary benefits after fee deduction will be transferred into the policy account value to earn interest from the Universal Life Fund.
Guy Carpenter Announces New Cyber Product Launch October 06, 2014 | gccapitalideas.com http://www.gccapitalideas.com/2014/10/06/guy-carpenter-announces-new-cyber-productlaunch/ Guy Carpenter today announced the launch of a new cyber privacy and network protection solution designed to meet the unique cyber challenges faced by small- and medium-sized companies. The cyber solution is provided by Ridge Insurance Solutions Company (Ridge), a new Lloyd’s Managing Agency led by Tom Ridge, the first US Secretary of Homeland Security and the 43rd governor of Pennsylvania, as chairman. The solution is underwritten by five leading Lloyd’s syndicates in the cyber arena: Brit, AEGIS London and Novae as lead underwriters, and Barbican Insurance Group and ACE. The product offers three components which are designed to help organizations meet the cybersecurity challenge head-on: •
An initial on-site assessment of existing cybersecurity capabilities is conducted by the Ridge assessment team to expose any potential system vulnerabilities and provide recommendations to reduce cyber exposures. Compliance with the recommendations will directly affect the premiums charged for the insurance component of the solution.
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A comprehensive cyber privacy and network protection insurance policy provides the central component of the solution. Spanning a broad spectrum of coverage types, the policy includes: business interruption coverage; privacy and security liability; crisis and “event” management
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costs; information assets and cyber extortion. The policy provides coverage on a worldwide basis with a capacity limit of USD50 million. •
The final component provides remediation services in the event of a cyber breach. The solution will deliver a rapid and robust response to any form of cyber intrusion, quickly isolating the intruder, shoring up the breach and limiting the business impact.
Commenting on the cyber solution, Nick Gralton, Managing Director of North American Casualty at Guy Carpenter, said: “Guy Carpenter is delighted to have acted as the broker of record for this innovative and expansive cyber solution. Working closely with Tom Ridge and his team, we were able to help them establish the parameters of the solution, place the facility into the Lloyd’s market and also to arrange the supporting reinsurance program.” “Insurance need not be just a “policy” written by an agent,” said former Gov. Ridge, “but a true focal point for assessing, identifying and correcting the impact of cyber risk on your business. This is not just about insurance, but helping and incentivizing companies to manage their cyber operations more effectively. Partnering with some of the leading cyber syndicates in the Lloyd’s market has helped elevate the standing of our solution well above that of any standard cyber product.” Rick Welsh, Head of Cyber Insurance at AEGIS London, stated: “We believe that much of the narrative surrounding cyber risk is too narrowly focused on compliance and does not adequately address the concerns of small- and medium-sized companies. We are delighted to be partnering with Ridge because we feel they understand that holistic risk management and incident response should be central to cyber insurance. For many of our clients globally the primary focus is business continuity and we know that Ridge shares that philosophy.” Ben Maidment, Class Underwriter for Global Cyber, Privacy and Technology at Brit, added: “What this solution delivers is across-the-board cyber protection. From the initial vulnerability assessment, to the implementation of the extensive cyber policy, and through to the rapid-response remediation capabilities, it spans all of the critical stages of an effective cybersecurity strategy.” Dan Trueman, Cyber Class Underwriter at Novae Group plc, concluded: “This is an incredibly exciting and opportune solution for a wide range of clients. The opportunity to partner with global and respected organizations to deliver this holistic and fully integrated risk transfer solution will mean that clients can understand and manage their cyber risk in our rapidly changing world.”
AIG Provides Expanded $1 Billion Casualty Capacity for North American Rail Companies October 09, 2014 | MarketWatch http://www.marketwatch.com/story/aig-provides-expanded-1-billion-casualty-capacity-fornorth-american-rail-companies-2014-10-09 NEW YORK, Oct 09, 2014 (BUSINESS WIRE) -- American International Group, Inc. (AIG) today announced that it has expanded excess casualty liability limits for Class 1 railroads in the U.S. and Canada to $1 billion per occurrence. This coverage for catastrophe losses would be in excess of $1.5 billion in underlying limits, and is one of the largest capacities offered to the rail industry by a single insurer.
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AIG is responding to the demands of North America’s largest rail companies contending with record rail traffic and the growing number of rail cars carrying potentially hazardous materials, such as crude oil. The Association of American Railroads has reported U.S. rail demand is at a 7-year high. The Association also reported U.S. Class 1 railroads (including the U.S. Class 1 subsidiaries of Canadian railroads) transported more than 407,000 carloads of crude oil in 2013, up from 9,500 carloads in 2008, an increase of nearly 4,300%. “These expanded limits are another way AIG’s scale and innovation is meeting the needs of our critical infrastructure clients and the customers they serve,” said Russ Johnston, President, Casualty Americas. “The Class 1 railroads are seeing strong growth and a resulting increase in risks they need to cover. AIG is one of the few carriers that can provide customers the large limits and risk expertise to meet this need.” Derailments are the most common type of accident risk faced by Class 1 railroads in the U.S. and Canada, and they can be caused by a wide range of factors. “Rail companies need additional coverage to help protect their balance sheets,” said Jeremy Johnson, President & Chief Executive Officer, Lexington Insurance Company. “This billion dollar coverage will help Class 1 railroads address expanding risks while continuing to serve the growing needs of transportation customers in North America.” The excess coverage is provided by Lexington Insurance Company and other affiliated AIG Companies. Lexington is the largest domestic excess and surplus lines carrier in the U.S. American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide propertycasualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange. AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds. source: American International Group, Inc.
Accenture: Satisfied Customers Not Always Loyal October 13, 2014 | Insurance & Technology http://www.insurancetech.com/management-strategies/accenture-satisfied-customers-notalways-loyal/d/d-id/1316585?_mc=RSS_IST_EDT
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“More than 40% of customers who submit claims are likely to switch insurers within the following year, regardless of satisfaction. Insurers may be pleased to hear that 86 percent of insurance customers who submitted a claim within the past two years were satisfied with the way it was handled. However, they will be less happy to learn that of those who submitted claims, 41 percent are still likely to switch to another insurer within the following year. This data comes from a recent study by Accenture, which surveyed almost 8,000 automobile and home insurance customers across 14 countries. Results indicate that policyholders expect higher levels of service and are willing to exchange personal data in order to receive it. “While a customer who is dissatisfied with the way his or her claim was handled is almost certain to defect, a satisfied customer will not necessarily remain loyal,” says Michael Costonis, managing director in Accenture’s insurance industry practice and global head of claims services, in a news release. Insurers must provide a differentiated claims experience that delivers exceptional service and maintains appropriate financial discipline. Costonis explains that merely the act of filing a claim increases the likelihood that a customer will transfer, regardless of how happy they are with the handling process. Survey results indicate that customers who submitted a claim within the two-year timeframe were almost twice as likely to switch insurers within the following year as those who did not submit a claim. The speed of settlement and transparency of the process are the most critical contributors to customer loyalty. Each was cited by 94 percent of respondents as a key component of claims processing interactions. Customers have certainly altered their expectations for service, but they are also willing to help improve it by sharing personal data describing their homes and cars. Respondents were open to providing information on the condition of their cars (56%), driving habits (52%), and GPS locations (39%). Three-quarters of homeowners indicated they would share information collected by smoke, carbon monoxide, humidity, and motion detectors; and more than one-third would share footage from security video cameras. More than three-quarters (77%) said they would share information in exchange for lower premiums; and more than half (59%) would do so to speed up the claims process. Almost 30% would share their data to receive personalized recommendations that may help them better manage risk and avoid loss. “Customers are willing to share information, and insurers that are able to use this information to help customers manage risks and reduce the number of claims will not only lower claims costs but may gain an advantage in terms of customer loyalty,” said Thomas Meyer, managing director of Accenture’s insurance industry practice in Europe, Africa, and Latin America, in the release. Insurers should consider how connected devices and other digital technologies could help customers better manage risk and reduce the frequency of their claims, says Costonis. Two-thirds of customers said they would prefer using digital channels to check claims status. Half said they would never recommend an insurer that did not offer digital channels, and 44 percent would leave insurers that lacked digital offerings.
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INSURANCE POLICIES MAY SOON BE AVAILABLE AT IKEA October 13, 2014 | Live Insurance News http://www.liveinsurancenews.com/insurance-policies-may-soon-available-ikea/ THE SWEDISH FURNITURE COMPANY IS ROLLING OUT TRIALS OF CERTAIN KINDS OF COVERAGE IN SPECIFIC STORES. IKEA Group, the furniture giant from Sweden, has taken its first steps into the selling insurance policies, after having rolled out a trial program of certain types of coverage product in its Swedish stores. THOSE INSURANCE PRODUCTS WILL BECOME AVAILABLE WITHIN THE A COUPLE OF WEEKS, AS A TEST OF THE MARKET. The first insurance policies that were rolled out in a few select stores in Sweden by IKEA were child and pregnancy coverage. Those hit the stores on October first under the Omifall brand. Over the next few weeks, however, this will be extending beyond those smaller forms of coverage and will bring in homeowners insurance offerings, as well. THESE FIRST INSURANCE POLICY SALES AT THE INITIAL STORE LOCATIONS WILL REPRESENT A KIND OF SOFT LAUNCH OF THE COMPANY’S OFFERINGS. ikea insurance policiesThe first step of the strategy is to appeal to the 2.5 million people who are members of the IKEA loyalty club within that country. This could then bring about an expansion of the range of insurance products and it could also send the offerings abroad, though that would not occur until later on in the process. At the moment, the loyalty club for the company has an estimated 59 million members around the world. At the time that this article was written IKEA chose to decline the opportunity to commenting further on this rollout of coverage products or on the addition of other types of coverage. At the moment, both the child products and the homeowners insurance offerings are being handled by the Ikano Group, which is part of the IKEA empire, owned by the three sons of the founder of the company, Ingvar Kamprad, who is now 88 years old Though this is not the first time that Ikano has sold insurance policies, this does represent the first time that those products are brought into the IKEA furniture business, which was kept entirely separate from those products in the past. Some have speculated that this represents a shift in the way that the company is being run as the sons start to play a growing role in the operations of the business.
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Finance Jardine Lloyd Thompson agrees to acquire part of Alliant Insurance Services’ specialty Energy Business October 03, 2014 | JLT Press Release http://www.jltgroup.com/default.asp?docId=32376 JLT Specialty Insurance Services Inc. (“JLT USA”), the US subsidiary of Jardine Lloyd Thompson Group plc (“JLT”) and Alliant Insurance Services (“Alliant”) are today announcing that JLT USA will be purchasing part of Alliant’s energy business that focuses on larger and more complex major and international accounts, some of whom are existing international clients of JLT. This agreement follows JLT’s recent announcement of its intention to expand its US Specialty capabilities into key specialty areas, including Energy, Construction, Financial Lines, Credit, Political & Security and Aerospace. This agreement will also enable Alliant to focus more of its efforts within the energy space on those areas where it sees the most opportunity to continue to deliver growth. Alliant and JLT share a longstanding and trusted trading relationship and this transaction therefore represents a strategic arrangement that suits the long-term growth strategies of both firms. Commenting on today’s announcement, Mike Rice, CEO of JLT Specialty Insurance Services Inc. said: “This is a further exciting development in the build-out of our US Specialty capabilities into the energy arena where JLT is already one of the strongest specialty players around the world. Following today’s announcement and other hires, we will have grown to over 40 colleagues in just over 1 month since our launch. I am delighted to welcome my new colleagues to JLT and look forward to continuing our close relationship with Alliant into the future.” Tom Corbett, Chairman and CEO of Alliant added “The transaction aligns with our company’s strategy for delivering targeted growth in the energy sector. We are excited about our continued activity in the energy space and will continue to expand our energy portfolio through organic growth, acquisitions, and outstanding service.”
Mapfre to acquire Direct Line subsidiaries October 05, 2014 | Timesofmalta.com http://www.timesofmalta.com/articles/view/20141005/business-news/Mapfre-to-acquire-DirectLine-subsidiaries.538536 Mapfre has signed an agreement with UK insurer Direct Line Group to acquire its motor insurance subsidiaries in Italy and Germany for €550 million. The businesses in Italy and Germany add premiums of €714 million and 1.6 million clients, and generate profits before taxes of €19.5 million, as per the latest results from 2013. Direct Line Italy leads the Italian direct motor insurance segment, with a market share of approximately 28 per cent, producing premiums of nearly €500 million annually from its one million clients.
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Direct Line Germany ranks third in the German direct motor insurance market, with an approximately 13 per cent market share. The company generates over €200 million in premiums and has close to 600,000 clients. Direct insurance has been a high-growth segment in both countries recently; it has grown by 74 per cent and 38 per cent over the last five years in Italy and Germany respectively. “The assets acquired in Italy and Germany are clearly a key investment for Mapfre, given that they underpin two central pillars of our global growth strategy: increasing our presence in Europe, and their alignment with our firm commitment to the digital business,” Antonio Huertas, Mapfre’s chairman and CEO, said. The transaction will be formalised conditional upon authorisation being granted by the relevant market regulators. Mapfre is a global insurance company present in 47 countries on the five continents. Local insurer Middlesea Insurance is a member of the Mapfre Group.
Personal lines rates up in September October 07, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/10/07/personal-lines-rates-up-in-september?ref=rss Homeowners’ insurance rates (for homes under $1 million) are up 4% since last September, a National Alliance for Insurance Education and Research pricing survey revealed. According to the survey, automobile and personal articles overages were up compared to this time last year. While homeowners’ rates for homes under a $1 million were up 4%, rates for homes over $1 million in value were up 3%. Similarly, automobile and personal articles rates were up 2% and 1% respectively. Although rates are up compared to this time last year, the study also revealed that coverages are down when comparing rates from August to September. While automobile rates were up 3% in August, they were only up 2% in September. Similarly, personal articles coverages were up 2% in August, but only 1% in September. The National Alliance for Insurance Education and Research used MarketScout’s analysis of market conditions to conduct pricing surveys. The surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the country. “The personal lines market is highly regulated, especially for admitted market insurers. So, year on year rate increases are sometimes more of a reflection of what each state allows as rate increases,” said Richard Kerr, CEO of MarketScout. “These filings may be delayed so the increases may not match market sentiment as respects the timing of the increases. In other words, an insurer may file for rate increases in May and those increases may not be approved until months later.”
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Aquiline Capital Partners to Acquire Majority Stake in Worley Claims Services October 09, 2014 | Citybizlist http://citybizlist.com/article/212884/aquiline-capital-partners-to-acquire-majority-stake-inworley-claims-services Aquiline Capital Partners LLC, a New York-based private equity firm investing in financial services, today announced a definitive agreement to acquire a majority stake in Worley Claims Services, one of the largest independent providers of claims adjustment and related services in the United States. Since its founding in 1976, Worley has been nationally recognized for its expertise in adjusting claims, recovering costs and overseeing public relations following natural and man-made environmental events. “Worley has established a leading platform in claims administration and an impressive track record of efficiently managing claims for its clients after catastrophic events and on a daily basis,” said Jeff Greenberg, Chief Executive of Aquiline. “We are excited to be partnering with the Worley team and supporting the company through the next phase of its development.” “Aquiline’s deep understanding of our business and its proven track record across the insurance industry make them our ideal partner,” said Michael Worley, Chief Executive Officer of Worley. “We are extremely appreciative of our former shareholders, Seaport Capital and Advantage Capital, and we are excited to engage with Aquiline to pursue opportunities to further strengthen and expand our client value proposition.” Mr. Worley and the management team will be investing alongside Aquiline and own a significant equity interest in the company. “Seaport Capital wishes Mike Worley, the employees and the company continued success,” said Bob Tamashunas, Partner at Seaport Capital. “We’ve thoroughly enjoyed our six-year partnership and working with management to execute their vision to make Worley one of the leading insurance claims adjusting firms in the United States.” The transaction, the terms of which were not disclosed, is subject to customary closing conditions. William Blair & Company acted as the exclusive financial advisor to Worley, Seaport and Advantage, and Stoneridge Advisors, LLC acted as financial advisor to Aquiline. About Aquiline Capital Partners LLC Aquiline is a private equity firm based in New York investing in financial services enterprises in industries such as property and casualty insurance, banking, securities, asset management, life insurance and financial technology. Aquiline seeks to add value to its portfolio companies through strategic, operational and financial guidance. About Worley Claims Services Worley, based in Hammond, Louisiana, is one of the largest independent providers of insuranceadjustment management and services in the United States. Since 1976, Worley has consistently aided in balancing claims, recovering costs and overseeing public relations following natural and man-made environmental events. Worley provides property, auto, personal lines, and casualty claims adjustment and related services to national and regional insurance companies as well as commercial clients and clients in the federal/state government sector.
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About Seaport Capital Founded in 1997, Seaport Capital provides capital to middle market companies in the communications, business services, and media sectors. Seaport works with talented management teams to create valuable companies that are leaders in their market segments. Seaport’s extensive investing experience enables it to develop successful strategies; its relationships and resources help achieve them. The firm seeks to invest $5 to $25 million of equity capital in each portfolio company.
Prosperity Life Completes SBLI USA Acquisition October 09, 2014 | Insurance & Technology http://www.insurancetech.com/management-strategies/prosperity-life-completes-sbli-usaacquisition/d/d-id/1316499?_mc=RSS_IST_EDT Post-merger, Prosperity will have an aggregate of $2.7 billion in assets through its operating subsidies.Prosperity Life Insurance Group LLC and SBLI USA Life Insurance Company Inc. have announced the completion of a transaction through which Prosperity has acquired SBLI USA through a sponsored de-mutualization. SBLI USA will operate as a fully owned subsidiary of Prosperity, a privately held organization. This purchase is the second for the life insurer, which acquired Shenandoah life in 2012. After the merger, Prosperity will possess about $2.7 billion in assets and more than 350,000 policies. “We are excited to complete this acquisition and support the growth and success of SBLI USA, which has a rich history in the New York insurance marketplace,” said Anurag Chandra, Prosperity CEO, in the press release. “For over 75 years SBLI USA has served New York customers by offering affordable life insurance policies. We will leverage our financial strength and operational expertise to help SBLI USA resume issuing policies and return to prominence in the New York insurance market.”
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Technology WNS renews contract with Aviva for another five years October 02, 2014 | Business Standard http://www.business-standard.com/article/companies/wns-renews-contract-with-aviva-foranother-five-years-114100101116_1.html WNS (Holdings), a provider of global Business Process Management (BPM) services, today announced its contract renewal with Aviva. The contract that would be expiring on November 16, 2016 has been renewed for an additional five years until March 31, 2022 on mutually acceptable terms. Financial details of the deal were not disclosed. “We look forward to continue being an extension of Aviva’s enterprise delivering innovative solutions to their global business operations,” said Keshav R. Murugesh, Group CEO, WNS. It had acquired Aviva’s captive centres in India and Sri Lanka in 2008 for $230 million. Along with the acquisition WNS also secured business worth $1 billion for a period of eight years from Aviva. According to analyst contract renewal is going to be a key focus area for 2014 as several large deal are coming up for renewal. According to data from ISG, a company that tracks outsourcing, $112.95 billion of infotech contracts are due for renewal in 2014. The share of Indian vendors in this is 16 per cent, a business opportunity of about $18 billion. India’s share in the renewal market will range between 16 and 18% over three years, ISG has said.
Increase in business process outsourcing in insurance market recorded October 02, 2014 | Out-Law.com http://www.out-law.com/en/articles/2014/october/increase-in-business-process-outsourcing-ininsurance-market-recorded/ Business process outsourcing (BPO) is increasingly being used by insurance companies because of economic pressures, changes in regulation, more fraud and a shift towards serving more consumers, according to new research. Business advisors Everest Group said the global insurance BPO market was worth $2.7 billion in 2013 and that it expects the market to grow in value to as much as $3.6bn next year. The UK market for insurance BPO represents 47% of the total global market, Everest said. “Insurance providers are looking to BPO to combat mounting pressures, such as: macroeconomic challenges (e.g, low interest rates, low GDP rates, high unemployment); regulatory changes, which are driving up the cost of compliance; rising incidences of fraud; and the rise of the digital consumer (i.e, as demand for digital services increases, many insurers are challenged by low digital maturity, outdated legacy technology and lack of analytic capabilities),” Everest said.
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According to Everest’s research, growth in the insurance BPO market is being predominantly driven by SMEs operating in the sector. However, Rajesh Ranjan of Everest said BPO providers are offering ever more sophisticated services to insurance companies that go beyond “simple processes” such as “claims processing and policy administration”. Data analytics services delivered by BPO providers can benefit insurance companies, he said. “A particularly promising area of interest is analytics; by offering more sophisticated services in this area – such as predictive and prescriptive analytics – service providers are able to make top-line impact as well as bottom-line contributions for their insurance BPO clients,” Ranjan said. The need to make better use of data is seen as crucial across many industries. In the insurance sector, many motor insurance providers have rolled out telematics solutions in an effort to personalise insurance premiums sold to drivers. Telematics data is information that is collected about motorists’ driving patterns and which is recorded via devices installed in vehicles. Analysis of the data allows insurance companies to set insurance premiums that reflect the driving style of motorists. Earlier this year, price comparison website Moneysupermarket.com said it planned to sell more anonymised, aggregated “quote data” generated by customers of its site to insurance providers. At the time, specialist in litigation and compliance in the insurance market Iain Sawers of Pinsent Masons, the law firm behind Out-Law.com, said insurance companies should seek discounted access to that data to use to better inform their business decisions. “The benefits insurance companies should look to gain may be in gaining discounted access to the data those price comparison sites have compiled, or alternatively through a reduction in the price they will pay those sites for customer referrals,” he said.
Arch MI Launches New Technology Solutions to Enhance Customer Experience October 14, 2014 | Business Wire http://www.businesswire.com/news/home/20141014006454/en/Arch-MI-Launches-TechnologySolutions-Enhance-Customer#.VD9waWeSxfY WALNUT CREEK, Calif.--(BUSINESS WIRE)--Arch Mortgage Insurance Company (“Arch MI”), a leading provider of private mortgage insurance and wholly owned subsidiary of Arch Capital Group Ltd., today announced the introduction of two new technology solutions designed to enhance the customer experience and promote ease-of-use for Arch MI’s mortgage insurance products. These new customer solutions include the launch of Arch MI’s new mobile application as well as system integrations with the Optimal Blue pricing and automation platform. “Arch MI is very pleased to announce the launch of these new leading technology tools designed to enhance our customers’ experience when partnering with Arch MI for all of their mortgage insurance needs,” said Chris Hovey, Executive Vice President and Chief Operations Officer at Arch MI. “These new products represent the latest additions to Arch MI’s technology platform, which delivers integrated solutions to our mortgage origination customers.”
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“Our latest technology offerings are an evolutionary step in Arch MI’s customer-centric approach,” Mr. Hovey continued. “They represent our focus on the future needs of our customers and our goal of providing solutions which enable our clients to grow.” Arch MI is unveiling a new mobile app for Apple® and Android™ smartphones. The mobile app supports separate interfaces for banking and credit union customers, enabling each to: •
Quickly compare MI premium plans and identify the best option for the borrower
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Check current rates and guidelines and view credit bulletins
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Easily obtain rate quotes and share them with customers and colleagues
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Review market data and analysis of our Housing and Mortgage Market Review
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Find and contact your Arch MI Sales Representative or Operations team
The new mobile app is a simple “point & click” enterprise mobility solution that enables Arch MI customers to boost their productivity and increase revenues, all with the aim of helping them grow their business. For iPhone and iPad users, the mobile app is available for download via Apple’s iTunes Store at www.appstore.com. For Android devices, the app is available via Google Play at https://play.google.com/store?hl=en. Additionally, Arch MI’s customers who use Optimal Blue’s eligibility and pricing services can now take advantage of real-time access to our competitive pricing and Rate Quote workflow within Optimal Blue. Optimal Blue, based in Plano, Texas, is a cloud-based provider of managed-content, product eligibility and pricing, secondary marketing, point-of-sale and compliance technology and services for the mortgage industry. This new system provides a fully automated platform where loan officers and other mortgage originators can access Arch MI’s guidelines and rates. Additionally, the new Optimal Blue integration accommodates several new Arch MI features that further streamline and simplify the process, including: •
Real-time access to Arch MI’s competitive rates
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Ability to share Rate Quote results with other team members
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View, save and print Rate Quote results in a user-friendly document format
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Link to ArchMIConnectSM to order MI and complete the MI origination process
ABOUT ARCH MORTGAGE INSURANCE COMPANY Arch MI is a leading provider of private mortgage insurance. Headquartered in Walnut Creek, CA, Arch MI’s mission is to protect lenders against credit risk, while extending the possibility of responsible homeownership to qualified borrowers. Arch MI was formed when Arch Capital acquired CMG Mortgage Insurance Company (CMG MI) and the mortgage insurance operating platform of PMI Mortgage Insurance Co. on January 30, 2014, creating a state-of-the-art mortgage insurance operation. Arch MI is licensed to write mortgage insurance in all 50 states, the District of Columbia and Puerto Rico. For more information, please visit www.archmi.com.
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Deloitte Digital launches new cloud-based solution October 14, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/10/14/deloitte-digital-launches-new-cloud-basedsolution?ref=rss Deloitte Digital unveiled its new cloud-based solution, FastConnect, enabling insurers to generate tailor-made, comprehensive customer overviews. The solution is pre-configured and allows insurance companies to leverage Deloitte’s industry experience to fast-track consumer transformation. The offering facilitates user adoption, combined with the added benefit of additional savings due to a shortened implementation timeframe. FastConnect is part of the Deloitte Industry program, which aims to create accelerators in each industry from the CloudFast Suite. The solution was certified through the Fullforce Initiative and part of the Salesforce.com Partner Program. “There is an enormous opportunity for companies to tap into the power of social, mobile and connected cloud technologies and reinvent how they engage with their customers,” said Patrick Callewaert, principal, Deloitte Consulting and Salesforce.com alliance leader. “Our offerings are designed to help our clients seize this window with scalable solutions.”
Erie Selects Guidewire ClaimCenter October 15, 2014 | Insurance & Technology http://www.insurancetech.com/claims/erie-selects-guidewire-claimcenter/d/did/1316658?_mc=RSS_IST_EDT Multi-line carrier Erie Insurance has announced plans to implement Guidewire ClaimCenter as its claims management system. The configurable claims management platform will provide Erie the flexibility it needs to build on its customer service strategy. The insurer also chose to work with Guidewire because it prioritizes conducting research to improve its products. As Erie continues to grow, it believes Guidewire will update the system to meet its needs. “Guidewire ClaimCenter gives us the flexibility we need to achieve our vision of continuing to improve on our already outstanding claims service,” said Matt Myers, SVP at Erie, in a statement. “Guidewire also has a history of investing in R&D to continually improve its system, which gives us confidence that as our needs evolve, they will evolve with us.”
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Strategy AssureStart Expands Online Small Business Insurance Sales to Oklahoma October 01, 2014 | BUSINESS WIRE http://www.businesswire.com/news/home/20141001006471/en/AssureStart-Expands-OnlineSmall-Business-Insurance-Sales#.VDU4W2eSzts SEATTLE--(BUSINESS WIRE)--AssureStart, the online small business insurance provider, is now open for business in Oklahoma. AssureStart sells business property and general liability insurance on the Internet to small businesses with fewer than 30 employees, an underserved and often overlooked segment of the commercial insurance market. By answering a few questions at AssureStart.com, qualified small businesses in Oklahoma can get coverage recommendations and a rate quote, and purchase a business owner’s policy in as little as five minutes, with immediate access to a certificate of insurance. Buying a business owner’s policy (which combines business property and general liability coverage) through traditional commercial insurance channels can take several days or more. With AssureStart’s all-new technology and efficient direct sales process, the company is able to pass along savings to small business owners. “As the only insurer exclusively focused on small enterprises, our mission is to help small business owners meet their unique insurance needs through an award-winning, next-generation technology platform,” said AssureStart CEO Greg Tacchetti. “A growing number of small businesses handle their administrative tasks on the Internet. We’re offering a new way for them to buy business insurance and manage the entire process on their own,” said Tacchetti. “With certificates of insurance available at the point of sale, a small business owner can buy a policy online and present the necessary credentials to start work on a client project the same day.” AssureStart’s proprietary technology platform and recommendation engine can be accessed 24/7 via laptop, tablet or smartphone. During the application and purchase process, prospective customers can contact a licensed insurance professional by phone, email or web chat to ask questions and receive more information. AssureStart is backed by the financial strength of American Family Mutual Insurance Company, rated ‘A’ (Excellent) by A.M. Best. Policies are underwritten by Midvale Indemnity Company, an affiliate of American Family. The company formed in February 2013 and launched service in its first state in November 2013. AssureStart currently sells business owner’s policies in 25 states. It plans to cover another 12 states by the end of 2014, with a national footprint complete in early 2015. Over time, AssureStart intends to introduce commercial auto and workers’ compensation insurance on its state-of-the-art sales and administrative platform.
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About AssureStart Based in Seattle, AssureStart is dedicated to serving the insurance needs of small businesses with one to 30 employees. The company sells business owner’s policies (general liability and business property insurance coverage) direct to small businesses on its website, www.assurestart.com. The website features a proprietary, easy-to-use recommendation engine and the ability to bind coverage online and download a certificate of insurance at the point of sale. AssureStart serves as the managing general agent for policies underwritten by Midvale Indemnity Company, an affiliate of American Family Insurance based in Madison, WI. Web: www.assurestart.com; Facebook: www.facebook.com/assurestart; Twitter: www.twitter.com/assurestart. About American Family American Family Insurance offers auto insurance, homeowners insurance, life insurance, business and farm/ranch insurance in 19 states. American Family is the nation’s third-largest mutual property/casualty insurance company and ranks 373rd on the Fortune 500 list. Web: www.amfam.com; Facebook: www.facebook.com/amfam; Twitter: www.twitter.com/amfam; YouTube: www.youtube.com/amfam. Policies are underwritten by Midvale Indemnity Company, an affiliate of American Family Mutual Insurance Company. American Family Mutual Insurance Company, American Family Insurance Company, American Family Life Insurance Company, American Standard Insurance Company of Ohio, American Standard Insurance Company of Wisconsin, 6000 American Parkway, Madison WI 53783.
Allianz and TIC Travel Insurance to merge to create leading Canadian travel provider October 01, 2014 | travelweek http://www.travelweek.ca/news/allianz-tic-travel-insurance-merge-create-leading-canadiantravel-provider/ KITCHENER, ON and GUELPH, ON — Allianz Global Assistance Canada and TIC Travel Insurance Coordinators, including its subsidiary SelectCare Worldwide, will merge their travel insurance operations in Canada. Once all closing requirements have been met, the combined entity, which will operate as Allianz Global Assistance, will be one of the largest travel insurance providers in Canada. Dr. Daniel Wichels, Chief Financial Officer of Allianz Global Assistance for the Americas, will become the Chief Executive Officer of the combined entity. A subsidiary of The Co-operators will become the lead underwriter. This merger will combine two companies that are both pursuing growth opportunities and which have complementary product suites. This combined entity will leverage the strengths of two of Canada’s leading travel insurance companies to enhance their product and service offerings. It will benefit from TIC’s extensive distribution network of more than 8,000 brokers and travel agencies throughout Canada. It will also benefit from access to Allianz Global Assistance’s global network of service providers which services 250 million people worldwide.
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“This merger capitalizes on the similar values and client approach of two leading providers in the Canadian travel insurance market, resulting in a combined entity that is truly greater than the sum of its parts, and poised for substantial growth,” said Remi Grenier, CEO of Allianz Global Assistance worldwide. “By combining TIC’s distribution networks, which are one of Canada’s broadest, with Allianz Global Assistance’s unparalleled global reach, Canadian travellers will enjoy world-class services no matter where they travel.” “Bringing together these two companies, with their complementary strengths, will create a very competitive company with great potential for future growth as a leader in Canada’s travel insurance industry,” said Kathy Bardswick, President and CEO of The Co-operators Group Limited, the ultimate parent company of TIC. “Existing clients will continue to benefit from the strong relationships they currently enjoy with the two companies, while the combined entity will offer all clients expanded product offerings and enhanced service capabilities.” Upon completion of the share exchange transaction, which is targeted for the end of the year, Allianz Worldwide Partners S.A.S., the parent company of Allianz Global Assistance Canada, will own 55% of the combined legal entity, AZGA Service Canada Inc. Co-operators Life Insurance Company will have an ownership stake of 45%, based on relative economic valuations. The combined entity will employ more than 600 people. The offices of both companies will remain open and there will be no changes to coverage or interruption in services to clients during the integration period.
Bermuda Reinsurers Look to Invest in Technology in 2015 October 09, 2014 | Claims Journal http://www.claimsjournal.com/news/international/2014/10/09/256102.htm Xuber, the global insurance software business of Xchanging plc, has revealed the business priorities of Bermuda executives over the next year and the steps companies plan to take to address these, following a survey of senior-level representatives. The company recently announced plans to strengthen its position in the Bermuda market, using insight drawn from the market survey. “Our research has uncovered some fascinating insights,” said Chris Baker, managing director of Xuber. “Despite the many challenges faced by the reinsurance industry, including an ongoing soft market, the pressure of alternative capital, mergers and acquisitions, and impending regulatory reform in the form of equivalency with the EU’s Solvency II regime, the survey results show Bermuda is as adaptive and forward-thinking as it has ever been. This market has always been renowned for its innovation, particularly the development of new and smarter risk management products. As such, the dynamics of the Bermuda reinsurance market are changing and reshaping the way reinsurers do business, as well as influencing future business priorities.” The research highlights 2015 business priorities for those operating in the Bermuda reinsurance market, as well as how the current environment is changing. The findings, outlined in Xuber’s “Challenges and New Choices: Catalysts for Change in the Bermuda Reinsurance Market” report, reveal that having first-class technology is seen as business-critical, and essential to remaining competitive in the years to come. Almost a fifth (19 percent) of executives identified technology as their top business priority in 2015, followed by searching for attractive yields and results (12 percent) and talent (11.5 percent).
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Almost half (46 percent) of respondents said analytics enables them to provide underwriting assistance to insurers, and over a third (38 percent) said they are executing a big data program – highlighting the central role of technology within the market. Furthermore, executives agreed that both analytics and big data are likely to be of growing importance for their future success. “Executives can see that investing in technology will give them the best possible chance to emerge from these challenging conditions in healthy shape,” added Baker. “In recognition of this, and to support the local assumed reinsurance market, we recently strengthened our position in the region with an enhanced product offering.” Other findings from the survey include: •
The attraction of doing business in Bermuda; 73 percent identified the regulatory and political framework in the region as a draw for businesses, as well as the market’s leading position in the field of insurance-linked securities;
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The impact of alternative capital from insurance-linked securities such as catastrophe bonds;
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The way in which the market is responding to regulatory changes, such as Solvency II;
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The growth of mergers and acquisitions; 32 percent of participants said their business was considering an acquisition in the next two years.
Insurers looking to get piece of $1 billion cyber market October 09, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/10/09/insurers-looking-to-get-piece-of-1-billioncyber-m?ref=rss Bloomberg) -- Insurers flush with capital are rushing to grab part of an expanding cybercoverage market that’s been spurred on by high-profile hackings at JPMorgan Chase & Co. and Home Depot Inc. Sales are set to double this year from about $1 billion in 2013, according to Bob Parisi, head of the network security and privacy practice at Marsh, the insurance brokerage arm of Marsh & McLennan Cos. The policies can protect companies against lost revenue, lawsuits or even damage to their reputation or brand. “There is a lot of capital looking to find a home,” said Rick Welsh, head of cyber coverage at Aegis London, which sells policies through LLoyd’s of London, the world’s oldest insurance market. “They now see cyber insurance as a once-in-a generation opportunity that is set for growth.” Demand for coverage has accelerated after some of the largest companies in the U.S. revealed that they’d fallen victim to cyber hackers. JPMorgan last week outlined the scope of a previously disclosed data breach, revealing that 76 million households and 7 million small businesses had been affected. Home Depot said in September that a breach put about 56 million payment cards at risk. The number of cyber security incidents globally has soared 48 percent to 42.8 million this year, according to a PricewaterhouseCoopers LLP survey. The average loss for a large company rose to $5.9 million from $3.9 million in 2013.
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Chasing Risk Carriers including American International Group Inc., Travelers Cos., XL Group Plc and Lloyd’s insurers like Aegis and Brit Plc are underwriting policies. Competition helped keep prices flat, even as some claims climb into the tens of millions of dollars, said Marsh’s Parisi. Insurers “wouldn’t be chasing after this risk if they didn’t think they could write it profitably,” he said. U.S. property-casualty insurers accumulated a record surplus after gains on investment portfolios and two years of calm hurricane seasons. That’s heightened their appetite to add cyberinsurancecustomers, especially among the small-and medium-sized businesses that hadn’t previously purchased the coverage. “They are equally aware of their own vulnerabilities,” said Michael Tanenbaum, senior vice president of professional risk at Ace Ltd. The insurer has seen the number of cyber policies it sells to those businesses rise 60 percent annually for almost four years, he said. Welsh and Ben Maidment, class underwriter of cyber and privacy risk at Brit, said the JPMorgan and Home Depot breaches alerted more executives to the risks. Target Corp.’s board ousted Chief Executive Officer Gregg Steinhafel in May in the wake of a hacker attack that compromised the personal data of millions of shoppers. ‘Growth Potential’ “We have barely scratched the surface,” Maidment said. “There is growth potential, so naturally more capital is being put to work.” As sales have increased, insurers have added staff and services. Travelers hired former employees of the U.S. Federal Bureau of Investigation to help its clients manage risk. AIG and Ace also provide advice on security. Tom Ridge, the first U.S. homeland security chief under President George W. Bush, teamed up with Lloyds of London to offer cyber insurance. AIG has been offering the coverage since 1999, said Tracie Grella, the New York-based insurer’s global head of professional liability. Sales have increased about 30 percent annually for the past couple years, and are on track to jump about that much in 2014, she said. She said many of the claims AIG receives are tied to human error, such as lost laptop computers, rather than organized attacks. “The hackers are very good, and there are sophisticated attacks out there, but attacks are really happening because of human error,” she said. “It’s really about the human element.”
High Net Worth Insurer Expands into Indiana October 10, 2014 | Claims Journal http://www.claimsjournal.com/news/midwest/2014/10/10/256117.htm Crestbrook Insurance Co., an affluent market personal lines offering from Nationwide, announced its expansion into Indiana.
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Crestbrook offers insurance products through appointed agents and brokers that address the unique coverage needs for home, auto, collections, personal excess liability, secondary residences and additional exposures that become more complex as wealth increases, the company said. Since its late 2013 debut in Illinois, Crestbrook has focused primarily on its expansion throughout the Midwest and western states, where affluent markets are prevalent and underserved by the company’s competitors. Scottsdale, Ariz.-based Crestbrook currently writes in Arizona, California, Illinois, Indiana, Ohio, Oregon and Washington with plans for further expansion into Texas and Nevada in the coming months. The company currently employs more than 100 associates throughout the country with localized claims, sales and underwriting professionals in targeted geographic regions.
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