Ninety’s Insurance Innovation Pulse: September 2022

Ninety’s Insurance Innovation Pulse is our new periodic round-up of the pulse of new ideas in the global insurance industry. We cover monthly highlights, top innovation themes and Ninety’s Idea Pulse dashboard and innovation analysis for the month. The monthly dashboard monitors monthly innovation trends by business lines and regions and to Ninety’s innovation taxonomy as well – the Ten Types of Insurance Innovation.

Officially announced, ready to market innovations, VC investments and collaborations from leading insurers, reinsurers and brokers form the basis of our analysis.

We also showcase five case studies of innovations from a cross-section of business lines and innovation themes. For the most part, the case studies chosen are representative examples of commonly recurring themes of the month rather than examples that focus on novel ideas or one-of-a-kind solutions.

In addition, we will also highlight examples of future innovation as seen through the lens of research and venture investment in emerging risks and technologies.

September 2022 Highlights

• During September 2022, Ninety recorded a total of 56 new ideas and announcements from insurance businesses around the world, not counting insurtechs.
• Launch of new products/services remained the top trend (16 out of 56 ideas); several of them were influenced by rising cybersecurity threats and adoption of electric vehicles.
• This was followed by venture investments in synergistic and adjacent products and services with insurers investing in startups engaged in insurtech, healthtech, proptech, fintech and payment technology.

The Top Innovation Themes during September

Insurance Idea Pulse Dashboard: September 2022

Ninety’s Analysis

• The September 2022 data shows innovations around risks pertaining to small businesses and professional services, real estate, and electric vehicles.
• In addition, there was increased focus on:
  • Digitization – with several insurance companies either launching their own online portal or partnering with other companies to offer digital platforms; and
  • Risk Mitigation – with insurers introducing tech-based offerings such as a mobile app to monitor property and equipment, a multi-cancer early detection test, and a software to help fleets predict and mitigate driver risk.
• In terms of insurance segments, the Specialty, Reinsurance & Lloyd’s segment regained its top position on the leadership board with a share of 34%. The Personal P&C and Commercial P&C segments accounted for a share of 25% and 20%, respectively.
• The US, UK and rest of Europe accounted for 96% (the highest in 2022) of new ideas and announcements in our dataset.

Five Innovations That Made Headlines in September

1. Risk Assessment Methodologies for Autonomous Vehicles: Waymo and Swiss Re announce research collaboration on AV risks

Google/Alphabet subsidiary Waymo and Swiss Re announced a research collaboration aimed at developing new risk assessment methodologies, which would provide guidance for the insurance industry in properly assessing AV risk.

Waymo’s collaboration with Swiss Re aims to address some of the challenges associated with autonomous driving technology and represents a first step forward towards building new insurance models to facilitate and accelerate the safe deployment of autonomous vehicles. This collaboration may also reveal new or enhanced approaches to evaluating safety, which may lead to continued improvements to Waymo’s safety methodologies, while also providing the public with a new, more intuitive lens to evaluate AV technology.

2. Landlord-controlled Captive Insurance: Hub International introduces solution to eliminate rent security deposits

Hub International Limited (HUB) has developed HUB Tenant Default Captive Insurance for real estate owners, operators and managers of multi-family properties, commercial space and other housing.

As a landlord-controlled captive program, HUB Tenant Default Captive Insurance eliminates the hassle of security deposits, lowers barriers for prospective tenants to improve occupancy rates and creates an additional revenue stream for property owners by enabling them to retain excess premiums.

Currently available in the US and coming to Canada in 2023, the new offering requires a tenant to pay a premium (1-2% add-on to rent – based on underwriting) in lieu of a security deposit, and the program covers loss of rent, damage to individual unit/apartment, and legal expenses involving eviction. The program creates an additional revenue stream for property owners by enabling them to retain excess premiums.

The program is underwritten by AssureLease and available to properties with a minimum of 500 units.

3. EV Charger Insurance Cover: Aviva launches standalone cover for electric vehicle charging points

Aviva has launched one of the UK’s first standalone insurance products covering electric vehicle charging points, in response to demand from brokers for a specialist all risks policy for both installers and operators.

The insurer is now offering Erection All Risks (EAR) and Operational All Risks (OAR) cover for EV chargers on a standalone basis. The product is aimed at customers including contractors, car park operators, local authorities, asset managers and forecourt operators, with cover applicable for everything from a single charger to an entire network.

It will cover risks including fire, flooding, malicious damage, accidental / impact damage and breakdown.

Risk management assessments and inspections covering electrical integrity and safety are also offered through Aviva’s specialist partner Bureau Veritas.

4. Forest Restoration: AXA Invests in French Forests

AXA recently announced the launch of the AXA Forests for Good program to help restore damaged forest ecosystems and make them more resilient to climate change.

The 3-year program will be deployed on 600 of the 15,000 hectares of forest owned by AXA in France, and managed by AXA IM. To carry out this project, AXA will be surrounded by a consortium of actors, led by Reforest’Action, and composed of France Nature Environnement, Inrae, Jura Nature Environnement, AgroParisTech and Société Alpine de Protection de la Nature-France Nature Environnement Hautes-Alpes. They will combine their environmental, social, technical and educational expertise.

The AXA Forests for Good programme will have 4 main objectives:

• To study the impact of global warming and land artificialisation on the loss of biodiversity thanks to the measurements of the consortium’s experts who will visit the plots every quarter.
• Restore the forest. After testing several restoration options, the consortium will make recommendations for species that promote the multifunctionality of the forest, i.e. the development of biodiversity, carbon capture and the production of biomaterials.
• Strengthen AXA’s leadership on climate and biodiversity issues. The practices developed through this programme can then be applied at the European level and shared with the private and public forestry sector.
• Contribute to a better understanding of the role of forests. Externally, the consortium’s members will raise awareness of biodiversity issues in schools thanks to these forests. Internally, AXA will propose actions through AXA Hearts in Action and awareness-raising operations to its partners and employees.

5. Net Zero: Marsh allows U.S. clients to pay broking fees with carbon credits

Marsh announced that US clients now have the option to pay their Marsh service fees in voluntary carbon offset credits and renewable energy certificates (RECs). The move — believed to be a first-of-its-kind in the financial services industry — is part of Marsh’s commitment to help accelerate the energy transition from fossil fuels to renewables and to recognize clients pursuing and exceeding net zero carbon emission goals.

Under the payment program, US Marsh clients can opt to pay for US insurance broking or risk advisory services by transferring agreed upon voluntary carbon offset credits and RECs to leading banking institution Bank of America, which has extensive experience with carbon markets, via a registry account. After receiving the credits and certificates, Bank of America will send the proceeds to Marsh.

Future Innovation – Research & Ventures