If you’re looking for inspiration to join the insurance sector, look no further than this story of student innovation and enterprise out of Indiana’s Butler University.
The University’s live mascot bulldog Trip, rare books, fine art, and observatory telescope are just some of the items that will be insured by MJ Student-Run Insurance Company, the brainchild of risk management and insurance majors at Butler’s Davey Risk Management and Insurance Program.
MJ Student-Run Insurance Company, a captive insurer, just received licensing approval from the Bermuda Monetary Authority and will officially open for business August 1.
Note: A captive a special type of insurance company set up by a parent company, trade association or group of companies to insure the risks of its owner or owners.
Butler newsroom blog reports that the insurance company was created as a way to give students hands-on experience to prepare them for an industry that anticipates needing 400,000 new employees by 2020.
While 1,900 American universities have accounting programs, and 900 have finance programs, only 82 offer insurance and risk programs, noted Zach Finn, clinical professor & director of Butler’s Davey Risk Management and Insurance Program.
Finn drove the creation of the Butler program back in 2012 to promote his search for a mix of textbook and experiential learning.’
After North America, insurer technology spending by region is as follows: Europe ($69 billion); Asia ($33 billion); Latin America ($5 billion); then a group of territories comprising Africa, the Middle East and Eastern Europe (around $5 billion collectively).
Three overarching trends – digitalization, data analytics, and legacy and ecosystem transformation – still dominate investment, Celent said.
The call for better data collection follows the release of NSC figures showing that in 2016 there were more than 40,000 traffic fatalities in the U.S. for the first time in 10 years.
A recent I.I.I. white paper found that in the past two years, both the accident rate and the size of insurance claims have climbed dramatically. These are the largest and most volatile components of auto insurance.
As hundreds of risk professionals gather in Philadelphia, the birthplace of insurance, for the annual RIMS (Risk and Insurance Management Society) conference, here’s the latest take on corporate risk costs:
Businesses saw a 5 percent decline in the total cost of risk (TCOR) in 2016—the third year in a row that corporates have benefited from lower prices, according to the latest RIMS benchmark survey. The study defines TCOR as the cost of insurance, plus the costs of the losses that are retained and the administrative costs of the risk management department. CFO.com has more on the findings.
The commercial insurance marketplace remains buyer-friendly and stable for North American insurance buyers, even as it braces for potential changes from Washington D.C. That’s the outlook from Willis Towers Watson in its 2017 Marketplace Realities report which points to the fluidity of capital as a key driver of current market conditions. The report’s line-by-line commercial insurance price predictions for the remainder of 2017 show a mix of increases, decreases and flat rates, as follows:
Amid ongoing political upheaval in Venezuela and a volatile geopolitical landscape elsewhere, the need for political risk insurance is rising to prominence for multinational companies.
AP reports that General Motors just became the latest corporation to have a factory or asset seized by the government of Venezuela.
GM said assets such as vehicles were taken from the plant causing the company irreparable damage.
To protect themselves against loss or damage to physical assets caused by political action and instability, businesses should consider purchasing political risk insurance.
This specialty type of insurance can protect against a variety of risks, including:
Political violence (including terrorism and war).
Contract frustration due to political events.
Due to the accelerating pace of geopolitical uncertainty, the market for political risk insurance is pushing toward $10 billion in 2018, up from $8.1 billion in 2015, according to a KPMG LLP report published last year.
Willis Towers Watson advises multinational companies to buy political risk coverage on operations worldwide — particularly for select regions —while it is still available, Business Insurance reports.
About two-thirds of insurers use artificial intelligence-based (AI) “virtual assistants” to handle some customer calls and use of the technology is expected to increase, according to a just-published Accenture survey.
Today’s I.I.I. Daily, via Bloomberg, reports that 85 percent of the executives surveyed by Accenture indicated that they would invest “significantly” in the technology over the next three years.
Insurance companies will spend on average $90 million on artificial-intelligence technologies by 2020, according to research from Tata Consultancy Services.
A new global study by software company Pegasystems Inc reveals that while consumers are optimistic about the benefits of AI, they are also confused about what AI really does and have misplaced fears that inhibit them from fully embracing AI devices and services.
In the survey of 6,000 customers in six countries, Pegasystems found that only one in three (36 percent) of consumers are comfortable with businesses using AI to engage with them—even if this typically results in a better customer experience.
Digital Insurance reports: “The irony in many cases is that consumers may be surprised to learn they are already exposed to much more AI than they realize.”
Only 34 percent of respondents thought they had directly experienced AI. But when asked about the technologies in their lives, the survey found that 84 percent actually use at least one AI-powered service or device such as virtual home assistants, intelligent chatbots, or predictive product suggestions.