The following news stories were curated and condensed by the Digital Insurance team.
Roundup: GM outlines revenue plan including OnStar Insurance growth; Travelers releases paper on autonomous vehicle insurance
October 8, 2021 7:15 AM
General Motors outlines revenue plan including OnStar Insurance growth
General Motors Co. revealed a plan to double its annual revenue and expand margins by 2030. The roadmap contains several areas of planned growth in electric vehicles, connected services and new businesses. GM projects its software and services revenue to be between $20 to $25 billion. Onstar Insurance’s projected revenue opportunity is expected to be more than $6 billion annually by the end of the decade. GM also recently announced its new hands-free technology Ultra Cruise and named Edward Kummer as its chief digital officer. "Simply stated, we are at an inflection point in which we expect revenue to double by 2030 while also expanding our margins. We will achieve this by growing our core business of designing, building, and selling world-class ICE, electric and autonomous vehicles, growing software and services with high margins and entering and commercializing new businesses,” said Paul Jacobson, executive vice president and chief financial officer, in a statement.
Travelers releases Canadian AV insurance framework paper
The Travelers Institute, the public policy division of The Travelers Companies, released a position paper about insuring autonomy in Canada. The paper offers recommendations on how to adapt the existing auto insurance system for autonomous vehicles. “Travelers has a long history of supporting innovation within the transportation industry, and we hope to contribute to thoughtful discussions about the future of AVs in Canada,” said Joan Woodward, president of the Travelers Institute and executive vice president of public policy at Travelers, in a statement. “With the right regulatory framework – informed by insurers and other key stakeholders – we believe that AV technology has the potential to reduce the number of accidents, injuries and lives lost on our roads.”
USAA to partner with Blink by Chubb on personal cyber protection
USAA Insurance Agency and Blink by Chubb announced a collaboration to offer personal cyber insurance to USAA members. The policy covers expenses related to cyber events like identity theft, cyberbullying and ransomware. "We're excited to work with an innovative brand like Blink that can offer our military families an end-to-end digital experience along with the financial strength, deep insurance expertise and world-class service of Chubb," said Gary Baker, senior vice president of the USAA Insurance Agency, in a press release. "Making Blink's personal cyber protection available to USAA members provides another option for them to protect their families' financial security in our increasingly digital world."
Allstate closes $400M sale of New York life, annuity business
The Allstate Corporation announced the sale of Allstate Life Insurance Company of New York to Wilton Re for $400 million. Allstate has obtained all the regulatory approvals. In a separate deal, Allstate announced that the company agreed to sell Allstate Life Insurance Company to Everlake US Holding Company, managed by Blackstone Group, that transaction is expected to close this year and is subject to regulatory approval. “Closing on the sale of ALNY is a significant step in Allstate’s strategy of increasing personal property-liability market share and expanding protection services while deploying capital out of the life and annuity businesses,” said Mario Rizzo, the chief financial officer of Allstate, in a statement.
Zurich North America implements Chisel AI
Chisel AI, a technology provider for the global insurance industry, announced that Zurich North America has implemented some of its technology to automate its construction business. The company is using the submission intake and policy check solutions to automate underwriting, ensure policy quality and reduce the costs of policy rework. Zurich North America is also evaluating the potential use of Chisel AI with other areas of business. “As a customer-led organization, Zurich is investing in innovation that supports our efforts to deliver high-quality products and services,” said Jeffrey Gallimore, chief operating officer, U.S. National Accounts, Zurich North America, in a press release. “Chisel AI brings the type of innovation we look for on behalf of our customers and distributors.”
Insurtech accelerator, investment platform launches
MLTPLY, an insurtech platform working to help seed-stage startups get to market in six months, launched in early October. The accelerator is looking specifically for companies focused on small business, consumer protection and property and casualty insurance needs with a special focus on technology, telematics and new data. “Simultaneous delivery of coverage, experience and technology innovation in insurance is prohibitively costly — it’s too highly regulated,” said Gloria Guntinas, CEO of MLTPLY, in a statement. “But there are plenty of $150 million opportunities out there that are blocked from funding because they’re too small for big insurance companies to dedicate resources to. There’s massive potential in these seed-level startups, and MLTPLY helps them realize that value by freeing them from the time-consuming core business functions so they can focus entirely on solving market-changing problems.”
Unqork announces product launcher application
Unqork, an enterprise no-code platform, announced an application to help carriers digitize and automate the underwriting process called P&C Product Launcher. The application helps carriers launch new products in about 12 weeks by removing inefficiencies and manual systems by integrating a broker portal and underwriter workbench into one platform. "Underwriting is one of the most foundational and essential processes for insurance carriers, yet most carriers still rely on inflexible, code-based legacy systems or manual processes that are expensive to build and maintain and create significant workload implications for key underwriting staff," said Farooq Sheikh, Insurance Go-To-Market Lead, Unqork, in a press release. "Unqork's P&C Product Launcher leverages the best of Unqork's no-code platform, providing carriers with a one-stop-shop for digitizing and automating the entire underwriting process. This is a game-changer for carriers, allowing them to simultaneously free up time and budget resources while providing higher-quality, future-proof software.”
Mercury Insurance launches usage-based app in Arizona
Mercury Insurance launched its usage-based app, MercuryGo, in Arizona. The app provides advice, real-time feedback about driving behaviors and a driving skill score. Mercury is using Cambridge Mobile Telematics DriveWell platform. Policyholders who enroll receive a 10% participation discount and could receive up to 40% off depending on driving score. "MercuryGO is an app that will help to keep Arizonans safe while on the road," said Mercury Insurance Director of Product Management David Lane, in a press release. "Designed to keep drivers of all ages and experience levels focused on the road, MercuryGO may also help reduce the number of car-crash-related fatalities and serious injuries."
RightSure offers VOOM pay-as-you-ride motorcycle insurance
Rightsure, an insurance agency provider in 42 states, is offering VOOM pay-as-you-ride motorcycle insurance . The coverage allows customers to pay a monthly base rate with per-mile coverage added on top by taking a photo of the odometer once a month. The coverage is currently available in Arizona, Illinois, Indiana and Ohio. "We are thrilled to work with RightSure, an industry leader in their field," said Tomer Kashi, co-founder and CEO of VOOM, in a press release. "Because risk for motorcycle riders is fundamentally connected to the actual time they spend on the road, per-mile motorcycle insurance completely changes the market. Working with partners like RightSure helps bring our innovative and affordable insurance offerings to an ever-widening group of customers."
CDK Global acquires Salty Dot
CDK Global, an auto retailer, has agreedt to acquire Salty Dot, an embedded insurance technology company. “I am proud of the work the Salty team has done in creating a digital experience that gives consumers a seamless way to buy insurance when it's most relevant to them—during the car-buying process,” said James Hall, founder and chief executive officer, Salty, in a statement. “By joining an industry leader like CDK, Salty gains instant access to nearly 15,000 retail locations in automotive and related industries, which will accelerate the adoption of our platform and fundamentally change the experience consumers have during and after a vehicle purchase.
Breathe Life names news CTO
Breathe Life, a hybrid life insurance distribution solution, announced a new chief technology officer. Carlos Benfeito will lead the engineering team and focus on innovation and client success. Benfeito brings two decades of experience in the industry at companies like EIS Group, Element AI, Intact and AXA. “Carlos has the right combination of both hard and soft skills to help lead Breathe Life as we continue to grow,” said Ian Jeffrey, CEO of Breathe Life, in a press release. “His strong technical background, executive experience, and proven track record will be an asset to Breathe Life as we look to rapidly scale our Hybrid Distribution platform to meet growing carrier demand and help close our industry’s persistent coverage gap. The stakes are high, and we are delighted to welcome Carlos to the team.”
Breeze launches online portal for agents
Breeze, an insurtech, launched its Breeze Agent Portal, which helps agents streamline selling disability and critical illness insurance. The portal allows agents to quote, apply for, and sometimes bind policies in minutes. "Historically, many agents have been intimidated by disability insurance – it has been difficult to explain the product, taken an unnecessarily long amount of time to underwrite, and has lacked the technology needed to create a seamless process for both agent and client. The Breeze Agent Portal is helping solve these problems,” said Colin Nabity, CEO & co-founder of Breeze, in a press release.