Insurers will buy into tech to close innovation gap
Global insurance companies will make acquisitions in the tech space in the coming years in recognition of an innovation gap for the industry.
Almost three quarters of insurers responding to a Willis Towers Watson poll said that the sector has failed to show leadership in digital innovation and 49 per cent expect to make an acquisition in the coming three years.
“Insurers recognize the importance of building a sustainable digital infrastructure to improve customer engagement and as an essential distribution channel, which is likely to be addressed through a combination of internally driven innovation, joint ventures and M&A activity,” said Jack Gibson, global M&A lead, Willis Towers Watson M&A Risk Consulting. “Insurers that hesitate could very well get left behind and fail to capture future generations of younger policyholders, who are more likely to engage via digital distribution.”
Distribution is almost universally cited as the area set to see the biggest impact from digital technologies in the next five years and in the short-term it is insurers’ websites and mobile platforms that will dominate.
Longer-term, big data, automation, robo-advice and sensors will play a bigger part in the sector’s digital revolution. Most insurers said that they are working on data and analytics tools including mining social media and other ways of gathering customer data.
This was the damaging peril of 2016 says Aon
A study of natural disasters in 2016 reveals flooding to have been the most damaging peril of the year.
The report from Aon Benfield’s Impact Forecasting group shows that there were 315 natural disaster events last year with total economic losses of $210 billion.
Flooding, earthquake and severe weather were the top three perils accounting for 70 per cent of all economic losses. More than half of the global total economic losses were in the US although it accounted for just 28 per cent of the global events.
Just 26 per cent of losses were covered by insurance ($54 billion) but 2016 ended a global down trend in insured losses and was 7 per cent above the 16-year average.
Word & Brown sells assets to National General
California-headquartered health insurance and employee benefits provider The Word & Brown Companies has sold some of its assets to National General Holdings Corp.
HealthCompare, Quotit, and a book of Medicare and Individual and Family Plan-focused businesses have all been sold but do not affect the small group, large group, or IFP business through the Word & Brown General Agency.
“Our long-standing relationship with National General and their willingness to invest in the long-term success for Health
Compare and Quotit in a post ACA environment solidified the deal,” said John Word III, co-founder of The Word & Brown Companies. Co-founder Rusty Brown added, “We believe this is the right move for everyone.”
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