ILC ARTICLE

I Love Claims Breakfast News 8 September

8th September 2021

ClaimsTech

Hala secures additional funding

Abu Dhabi-based insurtech, Hala, which aims to disrupt the market by making insurance more accessible, has raised $5m to support further product development as well as geographical expansion in the Middle East.

The funding round was led by Entrée Capital with participation from Mubadala Investment Company, EQ2 Ventures, Global Founders Capital, 500 Startups, and Hambro Perks Oryx Fund.

Open Insurance set for further expansion

Open Insurance will expand its team, enhance its home, motor and health insurance products, and branch out into new markets after securing $31m in a Series B funding round, led by Movac and Latitude.

The Australia-based company, which also offers white-labelled solutions that enables partners to embed insurance into apps via its powerful APIs, is planning to launch in the UK and New Zealand in the next 12 months.

Insurify announces major growth plans

American-based virtual insurance agent Insurify has secured further investments of $100m in Series B funding led by specialist private equity firm Motive Partners.

The company, which has increased revenue six-fold since Series A funding at the end of 2019 and has achieved a compound annual growth rate of 151% for the last three years, will use the cash injection to fund product diversification and functionality, marketing and additional recruitment.

Sequel secures SaaS with Ignite acquisition

Sequel has announced it is acquiring Ignite Software Systems, which provides insurance policy administration systems to brokers, MGAs, and insurers.

The acquisition will enable Sequel, part of the Verisk stable, to support the development of Ignite’s digital platform, while adding a modular API-driven Software as a Service (SaaS) platform to its portfolio.

The SaaS platform includes policy administration, a rating engine and digital engagement with specific expertise in motor, property, and pet insurance.

Home

Ida costs spiralling

Goldman Sachs is warning that insurance and reinsurance market losses from Hurricane Ida could reach as much as $40bn.

Initial estimates put it at between $15bn to $25, but that has now been revised up, with analysts suggesting the higher price of materials due to Covid-19 is also influencing rising costs.

Rising temperatures means rising premiums

Climate risk brought about by climate change could see property and casualty insurance premiums double in the next two decades.

According to global reinsurance company Swiss Re, the P&C insurance risk pool could swell to roughly $4.3tn of premiums by 2040. It suggests that emerging markets will rise fastest, resulting in a gain in share, from 20% of P&C risk pool premiums in 2020 to 33% in 2040.

Pandemic exacerbates construction industry issues

Sedgwick has released its Q1 UK building repair cost review which details how the pandemic has exacerbated issues within the construction industry.

A five per cent increase in building repair costs was evident during the first quarter of 2021 with many manufacturers operating at reduced output as a result of the COVID-19 pandemic. Sedgwick predicts that cost increases could continue to rise to seven per cent by the end of 2021.

The review outlines that shipping difficulties; a shortage of HGV drivers, which was compounded by Brexit; and an increased demand for construction projects were causing significant problems for building repair contractors.

It also highlights the growing issue of material and labour shortages causing problems for insurers with the pricing level of fixed schedules.

Motor

Solera Audatex sponsors Motor Claims Conference

Solera Audatex has been confirmed as sponsors of ILC’s Exclusive Motor Claims Conference in October.

Solera Audatex connects people, bodyshops, insurers and suppliers, empowering all to make quicker, smarter decisions. It operates in 90+ countries, has 100+ UK motor insurers and work-providers customers and processes 2.4 million claims in the UK every year.

Neil Garrett, Solera Audatex UK and SA Sales Director said: “It is great to be a key sponsor for the conference and I look forward to being able to discuss how colleagues see the industry evolving and how we are working to continue to lead the industry into the future”.

PIB acquisition completes motor portfolio

The PIB Group says it has ‘completed’ its motor offering after acquiring Simply Insurance Services, the Essex-based provider of commercial motor insurance.

The company also arranges insurance for driving tuition and motor fleets, as well as non-motor policies for existing motor clients. It will retain its 40-strong workforce to continue to offer specialist solutions for around 8,000 clients nationally.

PIB is planning further expansion this year.

Motor Claims Lunch Raises Over £57,000 for Rainbow Trust Children’s Charity

The team at I Love Claims would like to thank everyone who generously donated to Rainbow Trust during the Motor Claims Networking Lunch 2021. A combination of auction bids, major donations and bear sales has helped us to raise over £57,000

eBay backs ILC Conference

eBay is sponsoring the I Love Claims Exclusive Motor Claims Conference, which takes place at London’s Landing Forty-Two on 7 October.

eBay is backing the event through its newest business platform, eBay Green Part for Business, which is the UK’s largest aggregator of recycled parts from independently certified sellers.

The Exclusive Motor Claims Conference will bring together the sector’s key stakeholders to share insights and ideas about today’s challenges and tomorrow’s vision.

Rowley moves from Audatex to GT Motive

Martyn Rowley has left Audatex after 13 years as business development manager to take up a similar role with GT Motive.

GT Motive produces more than five million estimates a year, operating a pay-as-you-use transactional cost model, and a cloud-based system that gives direct access to OE parts prices.

Martyn said, ‘I decided to take the leap and join GT Motive after testing the cloud-based software. It really is one of a kind, providing all the data the repair industry could need, at the click of a button.’

Register for today’s webinARC: The Data Jigsaw

In this episode we explore what the ‘summer’ has meant for claims; do the numbers tell us anything new; and what can we expect in the coming weeks as work/life patterns resume.

Register here

Market News

Rising Star interview with Jenny Milburn – Credit Hire Case Handler, Davies

“Credit hire is never boring, and every case usually involves something new and interesting to research and investigate. I enjoy the opportunity to work in an industry that is bigger than any one individual.”

Read more here

Tailwinds suggest strong second half

Private equity investment in the insurance sector was lower in 2020 than 2019, but new research has seen a notable recovery in the first half of 2021, and is predicting further growth to come.

According to McKinsey, persistent low interest rates will create a tailwind for investors, while wider trends around consolidation, digitalisation, and specialisation will further inform their decisions and value-creation priorities.

CPIG winning numbers game

China Pacific Insurance Group acquired more than 10 million new customers in the first half of the year. This is the first time the group has passed that landmark in a six-month period.

The announcement was part of its interim results, which reported operating income of £28.3bn and a growth of 7.2% year on year. Group net operating profits totalled £2.05bn, rise of 4.9% year on year.

Zurich launches new health product

Zurich UK is launching a new private medical health insurance product for employers who find full medical cover too expensive.

The policy, Zurich LiveWell Diagnostics, costs between £190 and £310 per employee, and offers private access to critical tests such as MRIs, CTs and ultrasounds, before referring patients for treatment under the NHS.

More than 1.2 million people are waiting for diagnostic tests in the UK, while the number of working days lost to long-term sickness hit 80 million in 2019.