Latest news with #insuranceindustry
Bloomberg
3 days ago
- Business
- Bloomberg
LA Wildfires Drive Biggest Insured Losses Since Fukushima
The wildfires that devastated Los Angeles in January are set to drive this year's overall insured losses well above the historical average for the industry, according to Munich Re. Natural disasters across the globe have already led to $80 billion of insured losses in the first half of the year, with fires in and around the LA area in the first weeks of 2025 accounting for half the total, the reinsurer said in a report on Tuesday.
CTV News
24-07-2025
- Business
- CTV News
Extreme weather is making home insurance more expensive. Here's how you can keep costs under control
Insurance prices and premiums have been rising in Canada due to increased risks related to natural disasters such as wildfires. Allison Bamford explains.
Zawya
21-07-2025
- Automotive
- Zawya
AutoData Middle East launches next-gen intelligence suite to transform the region's auto insurance and used car markets
Dubai, UAE – As the UAE's auto insurance sector faces mounting scrutiny over rising premiums, opaque pricing, and a lack of reliable data, especially for electric and grey-import vehicles, AutoData Middle East is stepping up with a smarter, more transparent path forward. The company has launched a next-generation suite of AI-powered intelligence tools designed to improve pricing accuracy, enhance risk evaluation, prevent fraud, and boost profitability across the used car and insurance ecosystem. Built on precision, transparency, and deep regional expertise, AutoData's AI-powered tools offer a smarter way forward. They address major blind spots caused by inconsistent underwriting and gaps in data quality at a critical time when deductibles have soared and coverage is increasingly difficult to access. The new suite, including the AI Valuation Engine, Risk Coefficient, Claim Hub, and Deal Revs - a unified intelligence infrastructure built to help insurers, dealerships, and marketplaces make faster, more informed decisions across the GCC. 'You cannot make strong decisions with partial information - yet that is how much of the industry still operates,' said Sebastian Fuchs, Managing Director of AutoData Middle East. 'Over the years, we have seen how a lack of data precision leads to loss, inefficiency, and risk across insurance, trade, and valuation. This suite is the result of years of market observation and product innovation, built specifically for the GCC. It gives our partners the visibility, speed, and accuracy they need to lead in a fast-evolving market, while raising the standard of transparency for the entire ecosystem.' The AI Valuation Engine: Real-Time Pricing Built for the GCC Built for the GCC, the AI Valuation Engine delivers real-time used car pricing with unmatched accuracy. Trained on more than 100 million data points, from both live and historical transactions, it reflects real market behaviour and updates every two weeks. Insurers, marketplaces, and dealerships use it to price vehicles with confidence and consistency. Risk Coefficient: Revolutionising Risk-Based Insurance Underwriting Traditional pricing models often overlook critical risk factors. Risk Coefficient brings a new standard to underwriting by analysing over 50 vehicle attributes, including safety features, power-to-weight ratios, and real-time depreciation data. It is especially effective in closing pricing gaps for electric and grey-import vehicles, where traditional models often fall short. By addressing mileage blind underwriting losses, Risk Coefficient helps insurers reduce exposure, improve pricing accuracy, and offer fairer, data-driven premiums across all vehicle risk profiles. Claim Hub: The UAE's Total Loss Intelligence Engine Claim Hub enables insurance providers to securely exchange real-time data on total loss vehicles through seamless API integration. By connecting to critical UAE sources such as Emirates Vehicle Gate and the Dubai Traffic Accidents Database, Claim Hub supports fraud prevention, streamlines claims processing, and ensures regulatory compliance. Claim Hub gives insurers deeper visibility into total loss activity and helps strengthen portfolio performance through real-time data sharing, collaboration, and regulatory transparency. DealRevs: Unlocking Profit in the Used Car Market DealRevs empowers dealerships to unlock margin, streamline trade-ins, and optimise inventory decisions in a rapidly growing used car market. Through features like dynamic pricing, in-house auction integration, and marketplace syndication, DealRevs supports faster turnover, improved trade-in accuracy, and reduced holding costs. For mid-size dealerships, the platform can deliver profitability gains of over AED 1.5 million annually. A Vision Rooted in Innovation Since 2006, AutoData Middle East has expanded its data network, built strategic integrations with partners like JATO and CARFAX, and led market-specific innovation in VIN decoding, fraud prevention, AI modelling, and insurance underwriting. With the launch of this new intelligence suite, AutoData Middle East is advancing its mission to build a more transparent, connected, and data-driven automotive ecosystem across the region. As insurers, fleet operators, and digital platforms navigate rapid shifts in mobility and risk, AutoData is committed to delivering the insight and technology needed to lead the future, not just adapt to it. Learn more about DealRevs, AutoData Middle East's profitability platform for used car dealerships, designed to optimise trade-ins, inventory, and resale strategy: -Ends- MEDIA CONTACT | SOAR PR ( Honour Chokote | honour@ Noha Ahmed | noha@ About AutoData Middle East AutoData Middle East, a subsidiary of World Automotive Group, is the leading automotive data solutions provider in the Gulf Cooperative Council (GCC) region. Headquartered in the UAE, AutoData ME is a pioneering force in automotive policy issuance and claims management and is dedicated to empowering professionals and facilitating informed decision-making. The leading automotive data solutions provider instils confidence in its partners and the automotive market, fostering trust through innovative solutions. Launched in the region in 2010, and currently operating across the GCC, AutoData Middle East provides comprehensive vehicle history reports in the UAE, KSA, Kuwait, Oman, Qatar, and Bahrain. The company is part of the Skelmore Group, which boasts over 35 years of experience in the Middle Eastern and North American automotive business, positioning it as a leading provider of accurate and detailed vehicle information. AutoData Middle East offers a comprehensive suite of B2B and B2C services, including insurance advising, financing, buy and trade-in price advising, buying and selling platform tools, and more, resulting in the leading automotive data solutions provider attaining the AI-based Estimating Solutions Provider Award at the InsureTek Golden Shield Excellence Awards 2024. In May 2024, AutoData Middle East partnered with CARFAX, leveraging extensive data from over 100,000 sources across 22 markets in the US, Canada, and Europe. Driven by a commitment to excellence, its data-driven solutions empower confident decision-making in insurance pricing, vehicle transactions, and dealership operations, enhancing transparency and confidence across the automotive landscape. Grounded in accountability, data-driven decision-making, and clarity of communication, the company continuously seeks to innovate and shape the future of mobility.
Forbes
18-07-2025
- Business
- Forbes
The AIDS Crisis Modernized Life Insurance—And Still Shapes Risk Today
Tanmay Gupta is a seasoned executive and currently serves as the Head of Financial Planning & Communications at Fortitude Re. Is there a specific event that had the most enormous impact on the life insurance industry? I have been asked this question a lot recently, and the answer is: not really. There have been a number of important changes, such as regulations and new products, among others. That said, in my opinion, there is one event that pushed the industry into a new phase—the AIDS epidemic. Early in my career, a mentor shared a sobering lesson: "Before AIDS, we underwrote on autopilot." That history—where young, healthy adults were deemed low-risk with minimal scrutiny—resonated deeply as I've navigated insurance's evolution. The AIDS epidemic didn't just devastate communities—it exposed fatal flaws in risk models, forcing an industry resistant to change into the data-driven era. Today, as finance leaders face new threats—from AI ethics to climate risk—the hard-won lessons of this crisis remain urgent. The Blind Spot That Nearly Broke The Industry Before AIDS, insurers relied on broad mortality tables that didn't account for sudden, concentrated losses among young policyholders. When HIV began claiming lives at an alarming rate, insurers faced two brutal realities: 1. They were paying out far more than anticipated. There were over 100,000 U.S. AIDS deaths by 1990. The majority were men aged 25 to 44—the industry's core customers and a group traditionally considered low-risk. 2. They had no way to screen for it. Until the HIV test arrived in 1985, insurers were flying blind. The financial toll was staggering. Some companies saw claims surge, forcing them to recalculate reserves and hike premiums. Others faced lawsuits over policy cancellations and alleged discrimination. The industry was in crisis. The Birth Of Modern Underwriting AIDS forced insurers to overhaul how they assessed risk. Almost overnight, the old model—where small policies required little more than a basic health questionnaire—collapsed. In its place emerged: • Mandatory Blood Testing: HIV screening became standard for most applicants. • Lifestyle And Behavioral Questionnaires: Insurers began probing travel history, sexual activity and drug use. • Actuarial Panic = Better Modeling: The crisis pushed insurers to refine mortality predictions, leading to more sophisticated risk segmentation. These changes didn't just apply to HIV—they set the foundation for how insurers now evaluate everything from diabetes to genetic predispositions to pricing Covid-19 risk. Regulatory Backlash And Ethical Dilemmas The industry's initial response was messy. Some insurers tried adding AIDS exclusions to policies, while others denied coverage to entire ZIP codes or professions (like flight attendants). Public outrage followed, and regulators stepped in with new rules: • Strict Confidentiality Laws: Insurers had to protect HIV test results. • Anti-Discrimination Measures: Blanket bans on high-risk groups became illegal. • Informed Consent Requirements: Applicants had to agree to testing. These reforms didn't just protect consumers—they forced insurers to balance risk assessment with fairness, a tension that still exists today. How AIDS Shaped Today's Insurance Market The crisis didn't just change underwriting—it reshaped the entire industry's approach to risk. Today, pandemics are an existential threat, and Covid-19 could have been far worse for insurers if not for the AIDS-era reforms. Additionally, modern underwriting leans on deep analytics, not guesswork. And insurers now walk a tightrope between risk management and discrimination. 3 Lessons For Today's Finance Leaders 1. Data alone isn't enough. AIDS-era models failed because they ignored behavioral context. Today, AI's "objective" algorithms can embed bias—e.g., penalizing neighborhoods or professions. A solution is to pair data with human oversight. 2. Ethics drive long-term trust. Blanket AIDS exclusions destroyed public confidence. Now, genetic testing poses similar ethical risks. Genetic Information Nondiscrimination Act (GINA Act) protections exist, but "digital redlining" via wearables or social data erodes trust. Transparency is non-negotiable. 3. Prepare for black swans. Covid-19 proved insurers still underestimate tail risks. Climate change demands similar foresight: Catastrophe models must evolve faster than the climate. The Unseen Revolution The AIDS crisis was a tragedy—but it was also the catalyst that dragged life insurance into the modern age. As leaders navigating AI, genetics and climate volatility, we must remember: Progress isn't just adopting new tools. It's learning from history to build resilient, ethical systems. The next evolution starts now. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Yahoo
17-07-2025
- Business
- Yahoo
Insurance bellwether Travelers posts profit surge on stronger underwriting
(Reuters) -Travelers Companies' profit surged nearly three-fold in the second quarter, the insurance bellwether reported on Thursday, boosted by stronger underwriting and higher investment returns. Insurance demand has remained strong despite economic uncertainty, as businesses and individuals maintain or increase coverage to protect against financial risks, natural disasters and other potential losses. Net written premiums, the total value of policies sold after accounting for reinsurance, rose 4% in the second quarter to $11.5 billion. Catastrophe losses from hurricanes, wildfires and severe storms are a key swing factor for insurers, with the scale and timing of such events often sharply affecting quarterly earnings despite efforts to price in risks and share them through reinsurance. Travelers posted catastrophe losses of $927 million on a pre-tax basis in the reported quarter, compared with $1.51 billion a year earlier. Losses were moderate despite some hailstorms, making it one of the better quarters following a spell of elevated weather-related claims across the industry. The company's results often serve as a bellwether for the property and casualty insurance sector, reflecting broader industry trends in underwriting, pricing and catastrophe losses. The underlying combined ratio came in at 84.7% in the quarter. A ratio below 100 indicates that the insurer collected more in premiums than it paid out in claims and expenses. Travelers posted underlying underwriting income of $1.6 billion on a pre-tax basis, up 35% from a year earlier. Stronger underwriting reflects the insurer's ability to price risk accurately and limit losses, helping boost profits even when claims arise. Meanwhile, net investment income, which comes from investments in bonds, stocks and other low-risk financial assets, rose 6% to $942 million. These returns are a key source of profit for insurers and help cushion the impact from natural disasters and other large claims. Core income climbed to $1.5 billion, or $6.51 per share, in the three months ended June 30. That compares with $585 million, or $2.51 per share, a year earlier. Sign in to access your portfolio
