Future Insurer #26 - Bumper Edition!

It's time for another edition of Future Insurer! With Christmas fast approaching, this will be the second last edition this year. And it's a bumper edition as we cover #ITCVegas, developments in AI regulation, crypto and more!

If you’re new here, welcome! ?? This fortnightly newsletter highlights the most intriguing #insurtech and #insurance developments from the past two weeks. Be sure to hit subscribe to stay updated!

Now, let’s dive into this edition’s top picks...

In this edition's news:

?? Artificial Intelligence the focus at #ITCVegas 2024

Another year, another ITC Vegas! Fortunately this year I did not have to live vicariously through my #InsurTech LinkedIn connections but was able to head over to the conference itself! The theme this year was 'universe of possibilities' as 9000+ people descended upon the Mandalay Bay Conference Centre. AI was a major focus of the conference. It was great to see Nicole Peck interview Astronaut Scott Kelly about teamwork & achieving the impossible and hear from futurist Zack Kass. And of course, the Aussie #InsurTechs taking on the world stage. You can watch a wrap-up here!

? Crypto Update!

Lots of news at the intersection of insurance and crypto! We've seen InsurTech Native launch its decentralised insurance brokerage in collaboration with Nexus Mutual (call out to Ben Davis ), as well as Bermudan insurer Ensuro (call out to Marco Mirabella ) launch a partnership with them too. Closer to home, the Victorian Supreme Court has found that Bitcoin is 'property' and capable of being held on trust. See Re Blockchain Tech Pty Ltd [2024] VSC 690.

??Gallagher Re releases Q3 2024 InsurTech Report

Always a good read, this quarter's report highlights the continue focus of investors on AI based InsurTechs. While InsurTech saw USD1.38 billion in global funding during Q3 2024, the highest level since Q1 2023, deal volume was at its lowest in four years with only 77 deals. Reinsurers are also particularly active in #InsurTech mid stage funding rounds.

???? Courts issue Artificial Intelligence Practice Note

Insurers that are involved in litigation in the NSW Supreme Court should read the newly released Generative AI Practice Note and Judicial Guidelines which take effect on 3 February 2024. The Practice Note restricts the use of Generative AI in preparing affidavits, witness statements & character references and requires the parties to obtain the leave of the Court if an expert intends to use AI in preparing an expert report. Such report must also identify the parts where AI was used. The Practice Note specifically calls out 'hallucinations', an issue that has been seen in court cases elsewhere in the world.

??IAG acquires RACQ Insurance in $855M deal

IAG has announced the acquisition of 90% of RACQ's insurance arm in an $855M deal, with an option to acquire the remaining 10%. Expected completion is in Q3 2025. The deal will see IAG be the exclusive provider of insurance products under the RACQ brand for the next 25 years.

???Government Inquiry produces Final Report on AI

The Australian Senate Select Committee on Adopting Artificial Intelligence (AI) has handed down its final report recommending the implementation of a national cross-industry legislative framework to govern the use of high risk AI. This may potentially capture the use of AI in risk assessment and pricing of insurance policies, similar to the approach in the EU in relation to life & health products. Read more in the Final Report.

Hit "Subscribe" to receive this newsletter directly in your inbox every fortnight!

Tim Chan is an insurance & insurtech lawyer at global law firm Norton Rose Fulbright and Founder of The InsurTech Lawyer blog. He regularly advises insurers and startups on emerging legal issues affecting the industry. Follow Tim on Twitter: @timinsydney

Disclaimer: This newsletter provides general information only and does not constitute legal, financial, or other professional advice. It does not address the circumstances of any particular individual or entity. You should seek your own professional advice.