3 Things – IFRS 17 costs, Auto insurance moves & Insurtech happenings – 6/11/2021

Hi All!  This week in insurance we are following IFRS 17 costs, auto insurance moves  & lots of Insurtech happenings.  Here are the three things we learned this week:


IFRS 17 Costs to Insurers

A survey by Willis indicates that insurers will spend up to $20B to implement changes needed to satisfy IFRS 17.  People, process and technology all need to be addressed and will lead to these costs.  Of course our opinion is that insurers have to address how new core systems, legacy and partner data feeding the downstream financials to have absolute control of data for major issues like this.  More on our thoughts can be found in our Downstream Data Whitepaper.


Future Giants in Auto Insurance

General Motors announced this week that they will offer their OnStar service to non-vehicle owners.  This service will feature an embedded auto insurance component.  We have been following their interest in getting into the insurance business and hiring of an industry veteran to led them in this area.  In what looks to be another major auto play, USAA acquires usage-based auto insurer Noblr and use their scale to expand the UBI offerings nationwide.  We expect to see both of these new ventures capture auto market share.


Insurtech Happenings

A busy week of insurtech news.. Branch Insurance, a home & auto bundler, completed a $50M Series B funding round.  The new capital will help with their methodical state expansion and efforts to embed low cost auto/home into partner distribution channels.  Embroker, an MGA focused on business insurance, raised $100M while announcing that they plan to transition to a full stack carrier, they are also taking a methodical approach to growth and thus have been successful raising money.

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