In this week’s news will talk about the adoption of generative AI, the most affordable trucks and SUVs to insure, funding for the insurtech sector and more…
NEXT Insurance expands small business offerings
NEXT Insurance has announced the expansion of its insurance offerings for small businesses.
The company is launching commercial umbrella/excess liability coverage in 41 states and expanding liquor liability coverage in seven additional states. These expansions aim to provide small businesses with the necessary protection against potential financial losses resulting from lawsuits.
The company is launching commercial umbrella/excess liability coverage in 41 states and expanding liquor liability coverage in seven additional states. These expansions aim to provide small businesses with the necessary protection against potential financial losses resulting from lawsuits.
NEXT Insurance's commercial umbrella/excess liability coverage offers additional coverage beyond the limits provided by a general liability policy, the company said in a news release. This coverage is designed to protect small businesses from potential catastrophic losses if their general liability policy's per-occurrence or aggregate limits are exhausted. The expansion of this coverage will be available through both direct channels and agents.
Generative AI in insurance to take off within 12-18 months:
The adoption of generative artificial intelligence (AI) like ChatGPT is projected to take off across the insurance landscape, with one expert putting the timeline at 12 to 18 months.
Vikas Bhalla, executive vice president and head of insurance at data analytics and digital solutions company EXL, said that most insurance companies will be exploring use cases for generative AI and large language models across a range of functions during that period.
But he cautioned that even as traction grows for AI, it’s extremely difficult to predict what its use will look like.
Vikas Bhalla, executive vice president and head of insurance at data analytics and digital solutions company EXL, said that most insurance companies will be exploring use cases for generative AI and large language models across a range of functions during that period.
But he cautioned that even as traction grows for AI, it’s extremely difficult to predict what its use will look like.
Allstate posts loss driven by catastrophe claims
Allstate has released its second quarter financial results, posting losses driven by more frequent catastrophic events.
The insurance giant did see total revenues of $14.0 billion, up 14.4% from the prior year quarter. However, it reported an adjusted net loss of $1.2 billion, compared to $207 million in the same quarter last year.
It also saw a total net loss applicable to common shareholders of $1.4 billion versus the $1.0 billion from Q2 2022.
This equals to $4.42 per diluted share, which is below the $4.18 that analysts were expecting, according to Reuters.
The insurance giant did see total revenues of $14.0 billion, up 14.4% from the prior year quarter. However, it reported an adjusted net loss of $1.2 billion, compared to $207 million in the same quarter last year.
It also saw a total net loss applicable to common shareholders of $1.4 billion versus the $1.0 billion from Q2 2022.
This equals to $4.42 per diluted share, which is below the $4.18 that analysts were expecting, according to Reuters.
Most affordable trucks and SUVs to insure
Consumers in the United States continue to show a strong preference for larger vehicles, with trucks and SUVs dominating sales and holding a firm grip on the automotive market, according to Mercury Insurance. This trend shows no signs of slowing down, according to recent data.
Mercury Insurance has compiled a list of the most affordable new SUVs and trucks, aiming to assist consumers in finding vehicles that not only meet their preferences but also save them money on insurance.
The research and development team at Mercury Insurance analyzed the 2023 model year trucks and SUVs currently available at dealerships to curate the list.
Mercury Insurance has compiled a list of the most affordable new SUVs and trucks, aiming to assist consumers in finding vehicles that not only meet their preferences but also save them money on insurance.
The research and development team at Mercury Insurance analyzed the 2023 model year trucks and SUVs currently available at dealerships to curate the list.
New funding for insurtech falls – report
According to the latest Global InsurTech Report from Gallagher Re, new funding for the insurtech sector decreased to $916.71 million in the second quarter of 2023.
This represents a decline of 34% from the previous quarter's total of $1.39 billion. Notably, this is the first time in three years that the quarterly total has fallen below the $1 billion mark.
Although there was a significant decrease in the overall funding, the average deal size only declined by 16.1% to $12.39 million in Q2, the report stated. This decrease in average deal size can be attributed to the smaller number of investments, with only 97 reported for the quarter.
Early-stage funding in the sector reached its lowest point since Q3 2017, according to the report. Investments in early-stage life and health insurtech companies only amounted to $58.34 million, while property and casualty early-stage funding slumped to $157.71 million. The average deal size for the early-stage sub-category fell to $5.27 million across 51 investments.
This represents a decline of 34% from the previous quarter's total of $1.39 billion. Notably, this is the first time in three years that the quarterly total has fallen below the $1 billion mark.
Although there was a significant decrease in the overall funding, the average deal size only declined by 16.1% to $12.39 million in Q2, the report stated. This decrease in average deal size can be attributed to the smaller number of investments, with only 97 reported for the quarter.
Early-stage funding in the sector reached its lowest point since Q3 2017, according to the report. Investments in early-stage life and health insurtech companies only amounted to $58.34 million, while property and casualty early-stage funding slumped to $157.71 million. The average deal size for the early-stage sub-category fell to $5.27 million across 51 investments.