Munich Re and PSG's New Solution, AI Cheating, Climate Stress Tests, Cyber Concerns, and App-Free Customer Support and more.

Munich Re and Psg Partner Up and Announce a New Risk Assessment Solution.

Munich Re Life US and Insurtech Paperless Solutions Group (PSG) have collaborated to create a system that combines risk assessment and e-application. This solution allows insurers to achieve faster and more accurate underwriting, with straight-through processing rates of 40-50%, which is much higher than the industry average of 21%.

The combined solution integrates Munich Re's alitheia, which provides risk assessment and decision-making, and PSG's eValuate PLUS, which offers an easy-to-use application process. This new technology enables life insurance carriers to underwrite new policies more confidently, quickly, and efficiently, providing more people with access to life insurance.

According to Brooke Tyson, 2nd VP of Operations at Munich Re Life US, the new solution allows insurers to increase their business while providing life insurance to more people. By integrating alitheia with PSG's technology, they have created a "truly modern and interconnected process" that has been validated by large agencies and offers a seamless experience to agents and customers.?

Credits and read more at Insurtech Insights

Artificial Intelligence in the Service of Cheating: How Did Technology Become a Tool in the Service of Counterfeiters?

Fraudsters use AI software to make fake websites, apps, and pages that trick people. Before, they needed hackers or programmers, but now AI can do most of the work. AI like ChatGPT can copy existing websites, brands, and people and create fake content quickly.

For example, fraudsters use AI to sell fake tickets to popular events like the NFL and Super Bowl, which buyers will never receive. They also use it to make false predictions on services like Tinder on Valentine's Day, causing anxiety for single users. Additionally, they create fake websites that appear to sell luxury products like iPhones and Louis Vuitton keys, tricking users into giving away their credit card information.

How? You can ask ChatGPT to write detailed descriptions of different products and tailor them to a specific customer. Similarly, you can request the software to compare prices across different websites and make assumptions to identify credible visual scams, popular products, and effective marketing slogans.

Thanks to the marker for the great article. I'm happy to share how tech like CertAI from Munichre is important for insurance.?

Credits and read more at TheMarker

EU Prepares for Climate Stress Test That Includes Insurers

The European Union is taking a big step in preparing a stress test to measure how well the financial sector can handle climate change. This time, the insurance industry will also be involved, and the test will be published in the first quarter of 2025. The goal of this test is to identify potential vulnerabilities in the financial sector and assess how financial stress could affect its goal of reducing greenhouse emissions by 2030.

The test will be prepared by the European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority. The scenarios they will create will focus on "severe but plausible" situations until 2030. The test will also combine climate change risks with those seen in classic financial stress testing.

Climate change has caused about $120 billion in insured losses in 2022, and this puts the insurance industry at risk of rapidly rising losses from weather and climate-related events. In the previous stress test in 2022, banks remained above their regulatory capital levels even in the most adverse scenario. However, the ECB faulted banks for not having adequate models for assessing climate change risks.

So, it's good to see that the EU is taking steps to ensure that the financial sector can handle climate change-related risks, including the insurance industry. This should help identify potential vulnerabilities and allow for necessary changes to be made.

Credits and read more at Insurance Journal

Chat GPT & Ai a Growing Concern for Cyber Insurance: Corvus’ Hedberg

AI technology like Chat GPT is becoming more advanced, and while it can save time by automating certain tasks, it can also be used to facilitate security breaches and increase the scale of cyber-attacks.

Chat GPT, an AI language model, has the ability to mimic human behavior and deliver natural-sounding responses that are hard to distinguish from genuine human interaction. This makes it difficult to detect fraudulent emails and can increase the scale of cyber-attacks. While AI can automate certain tasks, such as typing and sending emails, it also removes markers that can be used to identify fraudulent behavior. This can allow attackers to send 1,000+ emails that all sound correct to each organization.

Employee education and an organization's ability to underwrite these types of exposures are crucial in mitigating the risks associated with AI technology. While AI can identify new threat vectors, it can also become a source of claims, making it a growing concern for the industry.

Despite these concerns, AI technology still contains many positives and can increase operational efficiency. The cyber insurance industry can incorporate AI technology into its systems to manage manual, low-complexity workflows. In the next three to five years, companies will continue to hire underwriters and bring their technology to the table, ensuring sustainable and meaningful growth.

Credits and read more at Reinsurance News

3 Ways Insurers Can Use App-free Video Support to Better Serve Customers

Many insurance customers are unhappy with slow underwriting and claim handling processes. To speed things up, carriers can use app-free video technology. Here are three ways it can be used to save time:?

1. Expedite inspections when underwriting policies. Using video inspections without the need for an app can help insurance companies assess risk without the inconvenience of an in-person inspection. This means customers can get their policies finalized faster and be notified quickly of any rate changes. Overall, this leads to a better experience for customers during the underwriting process.
2. Collect accurate visual information during the first notice of loss. Insurance customers have reported low satisfaction with claims, which take longer than before to complete. Using app-free video technology can speed up the claims process, starting with the first notice of loss (FNOL). When a customer gets into an accident, instead of calling the insurance company, they can video-call an agent through their device camera to report the incident and conduct a preliminary damage assessment. The agent can also verify claims details easily by screenshotting and geo-tagging critically damaged areas. This saves time on the back end and ensures quick handling of claims. Using a video-first FNOL process can help carriers receive accurate claims details, mitigate fraud risk, and determine an accurate payout.
3. Fast-track damage assessments and appraisals after a claim. Insurance adjusters often need to visit properties to verify damage details, but with high volumes of claims, this can cause a backlog and delay the claims process. App-free video technology can help by allowing adjusters to remotely investigate claims with customers. Together, they can pinpoint areas that need closer examination and take screenshots to support their report. This saves time and results in faster claims handling, repairs, and a better overall experience for customers.?

Credits and read more at Insurance Newsnet

Israel's Hi-tech Companies Hiring Outside of Israel

Israeli hi-tech companies are doing well despite global challenges. According to a recent survey of 116 hi-tech companies in Israel, 78% of new job positions were opened in the US or Europe in February.

What did the data show? Israeli companies are creating new job positions primarily in the US, with 75% of the new jobs being created there. These roles are mainly in sales, marketing, and customer service. Only 26% of the new jobs are being created in Israel, with the majority of these roles being in R&D and technical positions.

The survey found that almost 5,500 new job openings were created in February, with 53% of them being in the US and 21% in Europe. This is great news for those looking for job opportunities within Israel and overseas.

Despite the ongoing challenges posed by the global market, Israel's start-up industry is continuing to grow and innovate. This growth is a testament to Israel's entrepreneurial spirit and highly educated workforce, making it an attractive destination for international investors and global companies seeking to tap into its thriving innovation ecosystem.

I think this growth is great news for the industry as a whole. It shows that the industry is adapting and finding new ways to succeed, even in the face of adversity.?

Credits and read more at The Jerusalem Post

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