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Hi Friends! We are back with the latest edition of our weekly post. We use the weekly headlines to tell the story of what happened in insurance, tying things together into significant themes and ongoing trends. While the news cycle was slower than usual, there were several stories to follow. This week, we are following specialty platform launches, QBE’s strategic pullback, Allstate adjusting to another round of significant cat losses, Next launching a pay-as-you-go worker’s compensation offering, and a life insurtech improving access. Let’s explore the headlines and what we learned this week. |
Specialty Platforms Targeting Niche RisksSpecialty platforms continue to make significant strides by launching products catering to niche risks. This week saw four initiatives by innovative companies aiming to address unique market needs. Ledgebrook, a tech-enabled E&S MGA, has partnered with Obsidian to introduce an Architects & Engineers product. This expansion, supported by Ledgebrook’s recent $24 million Series A raise, complements their existing Professional Liability and Allied Healthcare products. By leveraging industry expertise and advanced technology, Ledgebrook aims to provide a seamless quoting experience for wholesale broker partners in the A&E space, enhancing their service offerings and market reach. K2 International has launched K2 Rubicon Specialty, a new division designed to write across multiple lines, including Marine and US Property in the London Market. Founded by industry veterans Gavin Wall, Parth Patel, Chris McGill, and Matt Eve, this division leverages K2’s MGA platform to deliver underwriting excellence and exceptional client service. The launch is a strategic move to enhance K2 International’s market profile and capacity, aligning with its growth priorities and further solidifying its presence in the specialty insurance market. Rokstone, part of the Aventum Group, has appointed Graham Amato to lead the launch of its Global Sports Personal Accident portfolio. This portfolio offers Lloyd ’s-approved wordings for various sports, covering accidental death, permanent and temporary disablement, and medical expenses with high levels of coverage. Amato’s extensive experience and innovative plans, including ventures into niche markets like eSports and embedded PA solutions for Sports Associations, are set to drive Rokstone’s growth in the sports insurance sector. Emerald Bay Risk Solutions, in partnership with Lightspeed Specialty Insurance Solutions, has launched a California homeowners insurance facility. This initiative targets owner- or tenant-occupied dwellings in low wildfire risk areas, providing comprehensive property and liability coverage in an underserved market. This facility addresses the limited coverage options available to homeowners and landlords in California due to wildfire risks, showcasing the partners’ commitment to innovative and necessary solutions. |
QBE Pullback and Allstate Cat ImpactsWe continue to see established incumbent insurers adapt to market dynamics and unforeseen challenges. Two major players, QBE and Allstate, are currently navigating significant hurdles, prompting strategic shifts and robust responses to ongoing catastrophe impacts. QBE has announced a strategic decision to withdraw from its North American middle-market segment, valued at $500 million in FY2023. This decision follows performance challenges in this sector and aligns with QBE’s focus on its core businesses: Specialty, Crop, and Commercial insurance. Despite this retraction, QBE reported strong performance for the first half of 2024, with over $13 billion in gross written premium and a combined operating ratio of 93.5%. Meanwhile, Allstate has faced another challenging period with estimated catastrophe losses of $1.4 billion in May 2024, bringing the year-to-date total to $2.62 billion. These losses, primarily resulting from wind and hail events in Texas, Colorado, and Illinois, represent a significant increase compared to the previous year. Analysts at BMO Capital Markets predict Allstate’s Q2 2024 catastrophe losses could reach $2.65 billion, prompting the company to raise its reinsurance coverage to over $7.9 billion for 2024. |
Innovation Streamlining Processes and Expanding AccessCompanies continue to leverage technology to disrupt traditional insurance models and provide enhanced value to their customers. Insurtechs are making significant strides by leveraging technology and strategic partnerships to strengthen their offerings and streamline operations. Netchex has announced a strategic partnership with NEXT Insurance to integrate workers’ compensation policies directly into the Netchex platform. This collaboration is set to transform how businesses manage their insurance needs by simplifying access to policies, streamlining HR and payroll processes, and ensuring compliance. One of the standout features of this partnership is NEXT’s pay-as-you-go workers’ compensation offering, which helps businesses manage cash flow more efficiently by allowing them to pay premiums per payroll period. Amplify Life Insurance, a digital platform focused on wealth-building through permanent life insurance has secured $20M in a Series B funding round. This capital infusion will support the launching new customer-centric products and bolster B2B strategies. Since its founding in 2019, Amplify has enabled customers to build tax-efficient wealth through life insurance premiums, offering access to the policy’s cash value for any purpose while alive. The company has achieved a remarkable 200% year-over-year growth by using AI to optimize customer acquisition and policy customization, making life insurance accessible to a broader market. |
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Join us as we continue to explore the headlines and news shaping the insurance sector, and stay tuned for more insights on the unfolding narrative of our industry! Stay productive, stay safe and stay in touch! |