June 24, 2021
Product Innovation
Chubb’s clever use of data to create new pay-as-you-roam travel insurance
What: Chubb is developing a new form of travel insurance. By using cell phone roaming data to track when a customer is out of their country, Chubb can offer always-on travel insurance where the customer pays only when they’re traveling.
Why it matters: We estimate that the world is at least one-third underinsured, and simple products like this are examples of how to fix that problem. The clever use of data makes this a simple and customer-friendly product that will likely result in more travel insurance policies for Chubb.
Industry Challenge
Florida state government stepping in to curb property insurance premiums
What: Florida’s property claims are out of control and driving insurers out of the market. To combat the issue, the Florida state government is trying to make litigation less favorable for claimants while making the market more appealing to insurers.
Why it matters: Florida’s new legislation will help slow increasing property insurance premiums. We expect that the market will remain hard, but there are opportunities for insurers to use advanced segmentation and unbundling to improve loss ratios and capture more premium.
Read: Florida Governor to Sign Property Insurance Measure But Says State Needs to Do More
Industry Challenge
Auto insurance premiums are back in-line with pre-pandemic levels
What: Recent hikes in auto insurance premiums have brought costs back in-line with pre-pandemic levels, but with the recent increase in the severity of accidents and changes to driving norms, insurers might have a difficult year ahead for claims.
Why it matters: The pandemic transformed traffic, while people relocated, avoided public transit, and, of course, stayed home. Now, we have totally new traffic patterns and it’s unclear how that will affect the auto insurance market.
Read: Auto insurance rates rise, but insurers could still get squeezed by higher costs ahead
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