AAA partners with Spot Pet Insurance; Arch and Upfort team up: Insurtech news

January 4, 2024 6:00 AM

A pedestrian views a smartphone while passing in front of the CN Tower in Toronto, Ontario, Canada. — A pedestrian views a smartphone while passing in front of the CN Tower in Toronto, Ontario, Canada on May 19, 2017.

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AAA offers its members pet insurance with Spot

AAA is partnering with Spot Pet Insurance to offer its members access to flexible pet insurance options. "AAA's mission is to serve its members and we do this by offering benefits that best meet their needs for different aspects of their life. This includes offering protection for every member of the family, including their beloved pets," Scott Parker, vice president, strategic partner development at AAA, said in a statement. "Our partnership with Spot Pet Insurance reflects our commitment to meeting our members where and when they need us, in this case it's providing them with valuable resources to ensure the health and happiness of their loving, furry companions."

Insurtech, Upfort partners with Arch Insurance on cyber

Upfort is partnering with Arch Insurance to expand cyber insurance coverage for small and medium-sized businesses. Jamie Schibuk, executive vice president, professional liability and cyber at Arch Insurance, said in a statement: "Partnering with Upfort equips us with the tools to deliver a sophisticated solution that combines the financial strength and experienced incident response services we provide with the powerful yet practical security solutions that Upfort has to offer. With Upfort, we're well positioned to lead the pack in the fastest-growing commercial insurance line of business in history."

Rising claims costs and risky driving habits create an uncertain road for auto insurers

The American Property Casualty Insurance Association (APCIA) finds that risky driving behaviors across the country combined with the effects of inflation and rising claims costs are pressuring the insurance industry with greater losses.

"In addition to inflation trends and riskier driving behavior by the public, cost increases for medical and hospital services, and outsized growth in lawsuit verdicts and legal system abuses are negatively impacting and pressuring the industry with increased losses. These escalating costs are driving up auto insurance premiums in Nevada and across the country," said Robert Passmore, APCIA department vice president for personal lines in a statement.

APCIA released a study in July that found insurance claims inflation has risen faster than the consumer price index, out-pacing rising auto insurance premiums as well. U.S. passenger vehicle claim severity increased nearly 50% from 2018 to 2022.

Coalition launches active cyber insurance in Australia

Coalition has launched a suite of active cyber insurance products in Australia with a focus on helping organizations better understand their cyber risks, improve the risk management and defenses with the ultimate goal of preventing future attacks.

"In the last year alone, countless businesses in Australia have suffered high-profile cyberattack, affecting millions of Australians and pushing cybersecurity and data privacy to the forefront of the national conversation," said Coalition's Chief Executive Officer and co-founder, Joshua Motta in a statement, "Yet, only 20% of Australian SMEs currently have cyber insurance, and even fewer brokers specialize in the coverage area."

Coalition is partnering with Allianz Australia to provide coverage. "Cyber risk is a significant threat impacting Australian businesses today," said Phuong Ly, chief general manager, commercial, at Allianz Australia, in a statement. "Allianz is proud to partner with Coalition and help provide our broker partners and their customers this unique solution."

Bain Capital invests $200 million into The Mutual Group

The Mutual Group, an insurance platform for mutuals with about $800 million in annual premiums, announced its plans to launch. The platform was created through Bain Capital's acquisition of GuideOne Insurance Company, a mutual insurance carrier, which will be the first member of the group. The Mutual Group will provide services to mutual insurance carriers like underwriting, claims, and reinsurance purchasing. "We are proud to continue our team's history of developing innovative solutions for the mutual insurance industry," said Matt Popoli, global head of Bain Capital Insurance, in a statement. "We are thrilled to not only launch this new solutions platform, but also to bring a leading mutual insurer like GuideOne on as The Mutual Group's first member as we further strengthen its path forward."