This past year was a good one for innovation, as demonstrated by the large number of stellar nominations we received for our second year of the Global Innovation Awards, which we collaborate on with the International Insurance Society.
The nine finalists chosen by our panel of distinguished judges show, in particular, how AI is moving from theory to practice, how insurance is stepping up to some of the biggest societal problems, and how the industry is finding opportunities in the Predict & Prevent business model, moving beyond the traditional repair-and-replace approach.
Let's have a look.
We'll start with the three finalists in the Predict & Prevent faculty because that's my favorite category and, after all, I'm the one writing this. In no particular order, they are:
Praedicat's CoMeta, which takes the analysis used in predictive models for natural catastrophes and applies it to the problems that liability underwriters face to help them spot major issues before they become major.
Wouldn't you like to know what will become the next asbestos? Praedicat was founded to address that question and says they can help you with the answer.
Roadzen, which uses computer vision and AI to monitor driver behavior, provide real-time feedback, and prevent accidents.
I've seen a number of approaches like this, and I'm in favor of all of them. This one seems especially sophisticated.
Far too many accidents still occur, and far too many people die.
Whisker Labs, whose Ting device plugs into wall sockets and detects electrical malfunctions that can be addressed before they can start a fire. Insurers have offered Ting free to more than 2 million policyholders because of the potential for preventing fires, and the devices are deployed in more than 700,000 homes. The devices can also report to utilities on malfunctions in the electric grid.
We're big fans of Whisker Labs at ITL — for instance, here is a Future of Risk interview we did with the CEO late last year. Our parent organization, The Institutes, has been spreading the word, too, through a newsletter and podcast on Predict & Prevent (which you can sign up for here). Here is a podcast with the CEO of Whisker Labs from May 2023.
They're worth a look.
Now for the three finalists in the Life, Health and Retirement category:
Aon "combines machine learning, terabytes of market claim data and expertise from Aon’s analytics, actuarial, clinical and reinsurance teams to predict over 50% of future high-cost [healthcare] claimant exposures ahead of time," their nomination says.
I've become a big believer in triage as a way to become more efficient and solve a lot of problems, even if we can't solve all of them, and healthcare claims can run so high that getting some warning can make a huge difference.
Hannover Re has partnered with healthOme to use genomics to screen for cancers, laying the foundation for an array of sophisticated diagnostic tests and then for an approach to treatment that helps patients make informed decisions.
It's still early days for genomics, but it's incredibly powerful stuff, and offerings like Hannover Re's hold the promise of breakthroughs.
RGA has begun offering "simplified issue" policies for health and life insurance in South Korea, where many struggle with the traditional, full underwriting process, which requires a medical checkup. RGA merely requires answers to three yes/no questions.
Assuming those questions paint an accurate enough picture, "simplified issue" could make a big difference in a nation that is historically underinsured.
Now for Property/Casualty (likely the favorite for many of you):
Gallagher Bassett uses AI to screen workers' comp cases for those that are likely to need extra care and then provides a concierge service for those injured workers.
Again, I'm a fan of this sort of triage approach, and AI is perfect for identifying the patterns that lead to complications. The Gallagher Bassett approach could be a great way to head off expensive cases while getting workers the help they need — and quickly.
Liberty Mutual is moving beyond offering maintenance advice to its homeowner customers and is tapping into "insights from our own internal operations, compelling offerings from our strategic partners and even novel capabilities from portfolio companies in the Liberty Mutual Strategic Ventures fund [to provide] new digital tools and experiences to help customers effectively manage and mitigate risks in their homes," according to the nomination.
I've always felt that maintenance reminders might really be a way to generate business for some contractor — I'm cynical that way — but reminders about the pool, the trampoline, the gutters, and so on could benefit a lot of people, especially if everything is in one place.
The Insurance Development Forum's Tripartite Programme tackles a truly worthwhile cause on behalf of the industry: "developing a series of meaningful and effective climate risk financing and insurance programs to help the populations of countries in need," as the nomination puts it.
The program has rolled out projects in more than 23 countries, with 64 million beneficiaries, backed by offered risk capacity of $5 billion from insurance industry partners.
I told you these finalists were impressive.
The winners will be announced at the IIS' Global Insurance Forum, being held Nov. 17-19 in Miami. I hope to see you there.
Cheers,
Paul