Justin Levine

Getting an insurance policy is not like buying an ice cream cone 🍦 At least that’s the metaphor that our Head of Data Gregoire Hornung likes to use. It’s not a one and done transaction, but a dynamic contract that changes over time. You can extend your coverage, cancel it, renew it – the list goes on and on. So managing the data around insurance is no easy feat. Luckily, our data team is up for the challenge. We sat down with Grégoire to discuss how they’ve developed a cutting-edge framework that allows us to make insurance more transparent for our partners 📊 Think: a robust data model and versatile tech stack so that our partners receive the right program data at the right time. Read the full interview to learn how we’re making our data infrastructure scalable and readily available 👉 https://qovr.me/3xTH687 #DataManagement #Insurtech #EmbeddedInsuranceOrchestration

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🔥 "Why California's Prop 103 is a Double-Edged Sword for Insurers" Although the regulations were initially beneficial and aimed at protecting consumers, they have now created significant challenges for insurers—challenges that ultimately impact consumers' wallets. Here are three key points: - Rate Increase Delays: If an insurer wants to raise rates by more than 7%, it might have to go through a public hearing, which slows down the approval process. - Old Data for New Problems: Insurers must use at least 20 years of past claims to set rates for disasters, even though wildfires have become more frequent and severe recently. - Ignoring Reinsurance Costs: The costs insurers pay for their own insurance (reinsurance) aren't considered when setting rates. Why do these rules matter now more than ever, and what can be done to address these challenges? 🤔 Your thoughts are welcome! 💡💬 #Insurance #California #Proposition103 #WildfireRisk #RegulationChallenges #RiskManagement Amy Bach Janet Ruiz, CPCU, AIM Nancy Watkins Frank Frievalt Susie Hanasab David, CAPI, CCIC Seth Schalet Michael Thayer, CWMS Private Risk Management Association (PRMA) J. Lopez Alex Rosenfeld, CAPI Heather Posner, CPRIA Bill Gatewood Martin Leitch PURE Insurance The Cincinnati Insurance Companies Chubb Farmers Insurance Insurance Insider Insurance Business America

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Insurtech Insights re-examines California's insurance crisis in the wake of new reforms announced earlier this week, as California Insurance Commissioner Ricardo Lara announced a landmark strategy aimed at expanding wildfire coverage options for Californians in high-risk areas. New Regulations in brief: ✅ Larger insurance companies must cover 85% of their market share in wildfire-prone areas. For example, a company with 50% of homeowners’ policies in California must cover 42.5% of properties in distressed areas. ✅ Smaller and regional insurance companies are not required to meet this standard to avoid undue burden. ✅ Smaller companies are asked to increase their market share of policies in wildfire-prone areas by 5% over the next two years. Purpose of the Change: ✅ The goal is to reduce reliance on the California FAIR Plan, the state’s insurer of last resort, which has been overwhelmed by a surge in new policyholders. California Governor Gavin Newsom has supported the reform proposal, saying, “This is another critical action to help fix California’s decades-old insurance crisis. It will help homeowners who face higher threats of wildfire get the coverage they need, while also easing pressure off of the state’s FAIR Plan. As the climate crisis has rapidly intensified, the insurance system hasn’t been seriously reformed in 30 years – this is part of our strategy to strengthen our marketplace and get folks the coverage they need.” Read the full report here: 👉 https://lnkd.in/ev_6_2PN #insurtechinsights #insurance #california #natcat

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I like to be an optimist, but the California property insurance market is in an extremely precarious position. 😨😨😨 For comparison, consider Citizen's Property Insurance Corporation, which is Florida's equivalent to the California FAIR Plan - both insurers of last resort. In 2021, Citizen's had roughly 750,000 policies in force, approximately $260B in exposure, and $6.4B in surplus. In comparison, today, the CA FAIR Plan has roughly 400,000 policies in force, approximately $320B in exposure and just $200M in surplus. Do the math. 😕 Nearly one-half the PIF, with $60B MORE exposure, and $6.2B LESS surplus. 🤯🤯🤯 To make matters worse, the current high-growth trajectory at the FAIR Plan is happening WITHOUT rate adequacy. Not even close. In 2019, the FAIR Plan's rate filing request for a 35% increase was only approved by the DOI at 15.6%. The subsequent 2021 rate filing request for a 48% increase was approved at just 15.7%. So at a minimum, these ~25,000 new policies currently being written each month are underpriced by over 50%. That doesn't build surplus. 😑 The system is broken. And the current trajectory indicates things will get a whole lot worse for California consumers. We need solutions and we need them fast. 🙏 #insurance #FAIRplan #CA #crisis #insurtech

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