In October's roundup of pressing issues in the insurance industry, learn more about the potential uses for generative artificial intelligence, the issues CSAA faces as an insurer in California and more.
CSAA's California dreams
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Since CSAA Insurance Group is closely affiliated with AAA and sells its auto insurance, it's often seen as the only insurer associated with the AAA brand. That isn't the case, with the Auto Club of Southern California and Auto Club Group in Michigan also offering insurance.
"Climate change is real. Given our concentration, we are exposed to wildfire risk here in California," Zukerman said. "Of course, wildfire risk isn't the only risk facing America, as I think Helene and Milton will remind you. But I'm an optimist. Despite the history of wildfire risk in California. I personally think we're on the cusp of better times ahead."
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A glimpse at the future of insurtech: An outlook on 2025
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During "The 2025 Outlook for Insurtechs" session at the
Insurtech funding — in terms of both money invested and the number of companies — was down this year, according to Celent. The reasons for this include a changing economy, the shifting expectations from specialized investors and insurtech understanding of the industry.
"This is a really unique ecosystem, because it's not just a software ecosystem. People need to understand balance sheet risk, and that we're really taking on risk. Whether you're taking on the front-end distribution or the carrier is behind you, you're in a risk ecosystem,"
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Deloitte report: Gen AI's billion-dollar potential for insurers
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Rapid technological change represents a great deal of potential for the insurance industry, although finding the right applications will be a challenge, according to Deloitte's
AI-supported insurance could generate $4.7 billion in premiums annually by 2032, according to the report, and increased popularity of embedded insurance will top $722 billion in premiums globally by 2030.
Underwriting applications for Gen AI are already getting scrutiny from state insurance regulators, concerned about its potential for bias in decisions about who is covered and to what extent.
"How do you use it to help you underwrite better, more smartly, and find better risks that are more profitable without being biased?" Karl Hersch, principal in Deloitte's insurance consulting practice, told Digital Insurance's
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Geico is first for digital customer experience: Keynova
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Auto and property insurance carriers are adding features to apps while also creating simpler routes for policyholders to find information and features, according to Keynova Group, a financial services intelligence firm specializing in benchmark insights.
The company released its
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Insurers deploy AI governance for themselves
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Advances in generative AI have been happening faster than insurers can react, and adopting AI raises issues with biased handling of data and making sure a carrier's operations can handle its demands, according to tech executives from Nationwide, Falcon Risk Services and Société Générale Americas.
"The role of chief data officer, governance, is a huge essential part of using AI responsibly, and using data responsibly, both in and outside of AI," Doris Brophy, chief data officer for Société Générale Americas, the U.S. arm of the European financial services firm, told Digital Insurance's
Financial services and insurance tech professionals tend to focus on how to improve daily processes or how to innovate, according to Gopika Shah, senior vice president and technology officer at Falcon Risk Services, a management, professional and cyber liability insurance service organization.
"But we also have to think about it when we think about responsible AI, how are we going to impact human rights, and how are we going to impact our society as well," she told Shashoua. "In those areas, there are certain things that go beyond the traditional data governance. That is transparency, knowing where your data is getting used and how it's getting used."
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