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The following article was supplied by Open GI.

It seems no more than a blink of an eye since generative artificial intelligence (AI) launched itself on the unsuspecting world.

Since then we’ve seen a variety of models come to the fore ready to revolutionise how the world creates and does business. The insurance industry is riding the crest of the AI wave and brokers are already taking advantage of this rapidly advancing technology.

AI – a friend instead of a foe

Software providers are already helping their broker partners access AI and utilise it as a friend instead of a foe. Brokers using Open GI’s Mobius platform can already use a comprehensive suite of AI tools.

Our partnership with OpenAI – the brains behind AI posterchid Chat GPT – gives us access to a range of widgets designed to simplify a broker’s day-to-day tasks and free-up intellectual capital to focus on more complex jobs.

Typically, Open GI’s AI suite uses Large Language Models (LLM) to specifically develop the right AI tools to help brokers solve their problems and mitigate any pinchpoints.

AI in action

A good example is the Mobius ‘too long, didn’t read’ tool. We specifically designed this to help brokers get up-to-speed with their clients’ history within seconds of answering the phone.

The tool leverages LLM’s ability to speedily summarise any text and instantly analyse the customer profile and history to give the agent a concise but comprehensive rundown of a customer’s backstory, all within seconds of answering the phone. Brokers are already using this service and agents are freed-up to focus on complex, non-standard business thanks to the time the LM widget can save.

AI can also work with images which can be particularly helpful to brokers when customer data is uploaded to their systems in a variety of formats. Sometimes customers will scan a document and provide an image featuring the data required to support their insurance needs. In cases like this, image recognition AI, known as Document Intelligence which will soon be added to Mobius, can scan these documents to quickly extract important information, highlight discrepancies and flag if action is required.

For instance, if a potential policyholder claims a 5-year no-claims history, but their documents only verify 4 years, the AI quickly identifies this discrepancy. This allows the broker to discuss the issue with the client after providing a quote and make any necessary adjustments. Without this technology, a human would need to manually review and compare the documents, creating a bottleneck in the final approval process after binding. This technology ensures the accuracy of all information, protecting the customer, broker, and insurer during a claim—a success for everyone involved.

AI and virtual assistants – what’s happening?

AI is also making effective virtual assistants affordable for all. Open GI is exploring using technology known as Open Dialogue – the same model that powers Chat GPT – to develop virtual assistants, which go further than chatbots, to help customers.

These are being built and trained to answer customer queries quickly, without having to involve a human. For example, a customer wants to know if their travel policy covers water skiing. Instead of calling their broker, they can look online, where an AI bot can quickly scan their policy document and answer their question, saving them a long wait on hold until a call centre agent becomes available and, again, freeing up brokers to address more complex, profitable queries.

All of this is achievable because Mobius is backed by the Microsoft Azure platform, which collaborates with OpenAI, the leading AI developer and creator of ChatGPT. This partnership enables Open GI to immediately access and tailor the latest AI models to address the unique challenges faced by our broker customers.

Furthermore, the Azure platform ensures that our brokers’ data remains secure and protected from cyber threats. Data is managed on a ‘need to know’ basis, meaning it is anonymized and shielded from both Microsoft and OpenAI. Only our brokers and we have complete access to the information.

It’s clear the brokers can harness AI as a friend to help them to speed-up day to day administration and make light work of simple tasks that in the past could be time-consuming. AI doesn’t have to be a threat  and should be implemented purposefully, only in areas where it can add value and address genuine broker issues.

Mobius brokers are at the forefront of utilizing AI to enhance value for their customers and insurers.

A recent analysis from Munich Re Group offered a timely update into natural disaster losses in the first half of 2024 – with global losses reaching $120 billion while global insured losses hit $62 billion, significantly higher than the 10-year average of $37 billion.

Sharing insights into the overall loss figures, Tobias Grimm (pictured), head of climate advisory and natcat data at Munich Re, noted that while these were lower than the previous year (at $140 billion), they exceeded the average values for both the past 10 years and the previous 30 years. He also highlighted how some five decades of collecting data on natural hazard losses had led the reinsurance giant to uncover two key contributing factors behind increasing losses.

The first of these is the changing spread of wealth and assets, as, even when factoring inflation into the mix, values are increasing all the time as humans continue to settle in regions highly exposed to natural hazards. The second is how the global climate is changing. “That’s what we’re investigating thoroughly, by region and by peril,” he said. “Overall, climate change leads to more intense weather extremes, mostly related to flooding, severe convective storms, heatwaves, droughts and wildfires – and to some extent, also to a change in the frequency of these events.”

It is this observation that has led to the development of climate attribution studies which look to link one single extreme weather event with climate change. The question at the core of climate change data is around likelihood, and the likelihood of these events is changing as once-in-100-year events become once-in-50-years, or even once-in-20-year events.

Global insured losses – what’s happening?

Zeroing in on global insured losses and how these have evolved – both year-on-year and over the course of the last decade – Grimm cited how six of the seven years from 2017 onwards saw global insured losses hit or exceed the “new normal” of $100 billion or higher. This figure hit $62 billion in H1 of 2024 alone, he said, and, putting that into perspective, statistics show that the second half of any given year is usually costlier, given that the peak of the hurricane season begins in H2 and tends to contribute the most to the overall losses.

“Peak season is now August, September and October, that’s where we expect lots of hurricanes. Our expectation is of seeing 23 named storms – out of them, 12 hurricanes and six as major hurricanes,” he said. “The high number is expected as sea surface temperatures are very high in the main development regions and once the oceans are at that point, it’s great fuel for the formation of hurricanes.”

Where does the global protection gap stand today?

Turning his attention to the proportion of insured versus uninsured assets, Grimm highlighted how the global protection gap is fluctuating over time. Looking to H1 2024, he highlighted that the gap was quite low, with only 48% of losses uninsured, which was largely due to the bulk of losses coming from SCS (Severe Convective Storms) losses, which are relatively well covered in the US.

The protection gap over the last 30 years has been 68%, he said, which is trending to reduce over time, largely due to the development of insurance schemes in the less developed world, though those efforts are not without their obstacles and challenges. There are a lot of technical reasons why the insurance protection gap still exists today, not least because of how coverage schemes are either not established or simply not well known.

Assessing non-peak or ‘secondary’ perils

A key finding of the Munich Re report looked to the impact of non-peak or ‘secondary’ perils, with 68% of overall losses, and 76% of insured losses, attributable to severe thunderstorms, flooding and forest fires. “Non-peak perils are really top of mind for our industry,” Grimm said.

“It’s on us to diversify portfolios across regions and across types of risk. Our business model is always about diversification. We potentially also use financial tools such as catastrophe bonds, so we’re transferring risks further down the capital market to further spread out the risks. Our overall risk appetite is always defined by our risk strategy, by our business strategy, and also by regulatory requirements and capital constraints.”

The Munich Re approach is not to necessarily limit its exposure to any particular peril but rather to take the time and effort required to wholly understand the peril and to refine its models with regard to non-peak perils. The group is always looking to engage with the most recent research, he said, from both actual events and climate scientists and to feed those insights into its models in order to stay on top of its risk exposure.  

What’s next?

Grimm noted that after a very costly half-year, the market is facing a potentially very active hurricane and wildfire season.

“If we think about increasing losses, someone needs to foot the bill,” said Grimm. “And either it’s the government or it’s the insurance industry, or it’s the insured person themselves.

“That’s why it’s that important to reduce future losses by thinking ahead about preparedness topics [whether through] flood retention schemes, putting protection measures in place, or having early warning systems for tornado outbreaks and hail storms, etc… It really is an ever-increasing topic.”

The recent CrowdStrike event has underscored the risks associated with digital supply chain interconnectedness. The incident not only affected CrowdStrike’s customers but also extended through third-party networks, impacting various unrelated industries.

Despite the disruption, insurers have largely maintained their coverage for clients, reflecting the cyber insurance market’s resilience.

In its latest report, Guy Carpenter has provided estimates and insights into the losses from this event, evaluating its implications for underwriting and catastrophe risk management. While the affected devices represent only a small fraction of Microsoft’s total, the update issue caused significant global operational disruptions.

This included the cancellation or delay of over 7,000 flights and impacts on critical infrastructure sectors like healthcare, retail, financial services, and hospitality. Many insured parties have filed notices of circumstances, and the claims process is still in its early stages.

The event has prompted consideration of accidental event scenarios alongside malicious ones by cyber catastrophe model vendors. The CrowdStrike outage, while non-malicious, highlighted the difference in response and cost between accidental and malicious incidents, such as those involving system failure, which lack costs like forensic expenses and data restoration that are common in malicious cases.

CrowdStrike outage – how did it impact re/insurance?

Guy Carpenter estimates that the non-malicious nature of the outage limited its overall impact. Less than 1% of companies with cyber insurance globally were affected. The rapid deployment of a fix allowed many organizations to address the outage before the typical four- to 12-hour waiting period for business interruption claims expired.

As a result, the estimated insured loss ranges between $300 million and $1 billion. Guy Carpenter’s findings suggest that most insurers will not experience material losses from this event, although variations in policy wordings, industry sector concentration, and system failure coverage uptake could influence outcomes.

In a scenario where the event had been malicious, Guy Carpenter estimates that losses could have reached between $600 million and $2 billion. This potential severity highlights the increased risk for organizations dependent on widely used software and operating systems.

The incident also provided a learning opportunity for both technology providers and their clients. CrowdStrike’s quick response and transparency helped mitigate the disruption, and the company has announced measures to reduce the risk of similar events in the future.

This event serves as a reminder of the need for robust risk management practices in the face of technology-dependent operations.

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Reinsurance Group of America (RGA) has reported a net income of $203 million, or $3.03 per diluted share, for the second quarter.

This is a slight decrease from $205 million, or $3.05 per diluted share, in the same quarter last year. The company’s adjusted operating income for the quarter reached $365 million, or $5.48 per diluted share, compared to $297 million, or $4.40 per diluted share, in the previous year.

The impact of net foreign currency fluctuations was positive at $0.06 per diluted share on net income, while it had a negative effect of $0.06 per diluted share on adjusted operating income.

RGA’s consolidated net premiums totaled $3.9 billion in the second quarter, marking a 17.5% increase over the same period in 2023. This figure includes an adverse net foreign currency effect of $33 million.

When excluding this effect, the increase in net premiums was 18.5%. The quarter’s net premiums were bolstered by a $282 million contribution from a single premium pension risk transfer transaction within the U.S. Financial Solutions segment.

Investment income, excluding spread-based businesses, grew by 10.9% compared to the same quarter last year, driven primarily by the addition of large asset-intensive in-force transactions. The average investment yield rose to 4.65%, up from 4.42% in the prior-year quarter, reflecting higher rates on new investments.

The effective tax rate for the quarter was 24.3% on pre-tax income, slightly higher than the expected range of 23% to 24%, largely due to income earned in non-U.S. jurisdictions. For pre-tax adjusted operating income, the effective tax rate was 25.5%, also above the anticipated range, for similar reasons.

Tony Cheng (pictured above), president and chief executive officer, stated that the company’s performance was strong overall in the second quarter, continuing the momentum from a robust first quarter.

“Our Asia Traditional and Financial Solutions businesses had a very good quarter, and our U.S. Traditional and EMEA Financial Solutions areas also performed well. We had a solid quarter of in-force transactions, with $307 million of capital deployed. Additionally, we continued to see good momentum in organic new business activity,” Cheng said.

Cheng also said that RGA’s balance sheet remains solid, with approximately $1 billion in excess capital at the end of the quarter. He expressed optimism about the company’s future, citing favorable business conditions and RGA’s global leadership position as factors that are expected to contribute to continued strong financial performance.

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At the 2024 MGAA Conference, regulation was under the microscope with the FCA’s Lisa Sturley delivering a market update and Brown & Brown’s J Powell Brown sharing that his biggest surprise on expanding into the UK had been the amount of regulation here versus the United States.

Given the complexity of today’s regulatory landscape, it’s no wonder that regulation so often ranks among the top challenges facing managing general agents (MGAs). But beyond Consumer Duty (which has now welcomed its first anniversary), change in controls, and financial reporting, an area of growing concern is around the regulatory exposure of MGAs operating in the UK without capacity. It’s a worrying practice, according to William Reddie (pictured), partner at HFW, not least because many MGAs do not understand its full regulatory repercussions.

“It’s a fundamental principle of regulation that you can’t carry out activities that are regulated unless you’ve got authorisation to do so, or are exempt or excluded in some way,” he said. “Those exclusions and exemptions are deliberately narrow, they’re not designed to be easy to fall into.”

The challenge facing MGAs today

The starting point is the need to be authorised to carry out regulated activities, which is clear and straightforward when it comes to setting up an insurance company in the UK. Where it becomes more complicated for MGAs is when the insurer is based overseas, as both the insurer and the MGA may not be aware of the need to be authorised in the UK. “The problem is that the UK regulated on the basis of activities,” he said. “So, are you doing an activity in the UK? Also, what constitutes doing an activity here is not as straightforward as just physical location.

“The key point of regulation here is that someone else’s activities, as in someone acting as your agent, can bring you within the scope of regulations. That means an MGA that’s acting as the agent of an overseas insurer can bring the overseas insurer onshore in the UK.”

Despite being a long-established principle, it’s not a well-publicised one for a number of reasons. Firstly, it’s an old point of law, so it’s not often discussed in the market. In addition, the onshore/offshore differentiation is quite a complicated legal concept which brings with it some grey areas regarding which activities are onshore or offshore. These factors, combined with the fact that the regulators aren’t shining too much of a spotlight on the issue, means it’s a risk that’s flying under the radar for some organisations.

What a lot of MGAs don’t understand is the regulatory ramifications of operating in breach of UK regulations. “When you carry on a regulated activity without the right authorisation, that’s a criminal offence,” he said. “It could be the overseas insurer itself that’s liable to sanctions, but also its directors. As well as that, you could aid and abet the criminal offence. For example, the MGA could aid and abed the insurers’ criminal offence of carrying on a regulated activity without authorisation. It’s potentially very serious and it is something that the regulators in principle would be very worried about.”

What can MGAs do to minimise this risk?

Addressing what MGAs can do to mitigate their exposure to this risk, Reddie advised that companies should first check whether their insurer is authorised in the UK. This can be done by searching the Financial Services Register. If they aren’t and they need to be – which is very likely if they’ve granted an MGA a binding authority – then the MGA should look to a fronting solution. “That means speaking to a UK-authorised insurer, who will sit between the overseas capacity and the MGA, entering into the binding authority agreement with the MGA, and then reinsuring its liability to the overseas insurer.”

This ensures that the MGA can achieve the desired outcome of having the overseas insurer take on most, if not all, of the risk without carrying on activities in the UK without authorisation. “You would then make sure, in turn, that the insurer fronting in the UK and the overseas insurer have set up their reinsurance outside the UK so that the reinsurer – as it becomes – isn’t carrying on unregulated activity in the UK. But that’s straightforward to do.”

Understanding the full extent of the risk at hand

For Reddie and his team at HFW, helping to make the MGA market more aware of the issue as it exists and what they do to mitigate it is top of the agenda at the moment. The team gets a lot of questions seeking perimeter advice or guidance, regarding whether UK authorisation is required. This tends to be from intermediaries rather than insurers because it’s usually clear that if an insurer is set up in the UK then they need to be authorised there, while it’s less clear-cut for intermediaries.  

His key recommendation for MGAs is simple – “ask the question”. It’s significantly more efficient and effective to identify the issue as early as possible and make the moves to resolve it than to be unaware of your exposure or to keep quiet about it in the hope nobody will notice it. “It’s always better to solve something with lawyers before the regulators find it. It’s quicker, it’s less expensive, it’s less time pressured and there’s less stress for management.

“Once the regulator becomes involved and starts asking questions, you’ve got a type of scrutiny that you don’t want on your business which can extend into other parts of your business. It’s a lot of unwelcome attention and it’s often under great time pressures.”

The following article was written in association with Open GI.

“I’m not a technology person,” said Open GI’s Nick Giddings (pictured). It’s a perhaps unusual position for someone leading the software provider’s relationships with brokers and MGAs, but it’s a perspective that cuts through to user benefits. “What I am is a qualified insurance broker by trade. That means I know what’s important to our customers, what might help them in the future – and that tech should never be used for its own sake, but for theirs.”

Choosing a software provider can be seen as a mandatory or grudge purchase, something all brokers and MGAs need in order to trade. And with evolving tech, from cloud storage to AI, and minute-by-minute data analysis, the market is more complex than ever.

It is Giddings’ mission to make using a Policy Administration System (PAS) provider a positive experience that added value to his customers’ businesses – and ultimately improves their bottom line.

“Our PAS solutions are mission critical to our brokers and MGAs and customers. They provide total client and policy management – whether it is compliance solutions to help with regulatory requirements, financing and client money solutions, or connecting insurers, products and enrichment providers. It does everything,” Giddings explained.

Connectivity

This last point on connectivity is a key differentiator for Mobius – and for Open GI in general. “There’s all sorts of integrations and we pride ourselves on the fact that we have the most comprehensive community of insurers and services in the market,” said Giddings.

That includes lines of business like motor, commercial vehicle and gadget, and enrichment providers like premium finance and data enrichment. Other providers or partners can be linked via API, allowing clients to customise the software and create a seamless customer journey that drives their business objectives.

“We’re interested in helping people do business better, not tying them down to us – or tying them up in difficult admin and integration,” he said. “Our tech is all about making business better and easier.”

Security

That tech includes Mobius, Open GI’s cloud-based PAS, sitting in the software provider’s stable alongside Core.

“We know customers love Core,” added Giddings. “But more are coming on to Mobius, because it’s so incredibly responsive. Updates happen more than once a day, which gives people really precise insight into their products and data, and helps them use it to drive their strategy.”

One of its key strengths is being hosted in the cloud using Microsoft Azure. This means brokers can rest assured that security is top notch and benefit from more regular updates and improvements. Typically these happen every day for cloud-based platforms, without any downtime, compared to every three months for more traditional offerings.

Scalability is another key benefit of a cloud-based PAS. “With other systems you can effectively outgrow the platform you’re on and find that you need to upgrade the hardware,” Giddings explained. “That is absolutely not the case with Mobius. It’s designed to grow with your business.”

Making the switch

Changing to a new PAS is one of the biggest projects a broker can undertake.

Implementing the Mobius platform begins with workshops designed to understand the client’s requirements. “We conduct workshops tailored to the customer’s size and needs, and really get under the skin of their business culture and goals. A dedicated team then manages the implementation with a tailored project plan,” said Giddings. The process includes setting up the system in Azure, conducting training, and providing robust support during a warranty period to ensure a smooth transition.

Once live, Open GI customers work with a customer success manager whose role is to make sure they get the most out of the platform’s capabilities.

“It’s often linked to automation and making sure our customers are doing things in the most efficient way to reduce costs or sell more policies,” Giddings explained. “If you can automate the bread and butter of your business, your experts are freed up to do the bells and whistles – which is exactly where you grow.”

Insight

An example of the efficiencies Mobius can drive is helping brokers trial which communication method leads to better renewal rates. “Where we see a broker with a lower renewal rate than some of our other customers, we work with them to see how changes in how and when they engage with their customer can improve retention,” Giddings detailed.

“For one client, we found that actually texting their policyholder on the day that the policy was due improved their renewal retention by as much as 5%.

“Small but powerful insights like that can make a material difference to our customers’ businesses, and it’s something we really pride ourselves on.”

Welcoming generative AI to the family

Looking forward, Open GI is committed to integrating more advanced technologies into Mobius. One such innovation is a virtual assistant, an advanced generative AI software solution that facilitates communication between users and the Open GI platform. “We’re integrating chat AI with our PAS solutions to help brokers manage interactions more efficiently and do things like summarise policy notes for quick reference, enhancing agent productivity,” Giddings revealed.

In a 2023 Open GI sample study, brokers highlighted that 91% of renewal invites resulted in service centre calls, taking up over 5,000 hours monthly. Diverting these calls to the virtual assistant could save £22,500 per month.

Open GI’s journey from its inception in 1979 to its current position as a leader in the insurance technology space is marked by a relentless focus on innovation and customer success. With Mobius, Open GI not only addresses the current challenges of the insurance industry but also anticipates future demands – ensuring they remain a trusted partner for years to come.

Markerstudy Group (Markerstudy) has revealed its plans to acquire Hughes Insurance, pending regulatory approvals and standard conditions.

This move aims to strengthen Markerstudy’s footprint in Northern Ireland.

Markerstudy Group to acquire Hughes Insurance

Hughes Insurance, with a nearly 50-year history, serves over 85,000 customers in motor, home, van, travel, and commercial insurance.

The company will be integrated into the Markerstudy Distribution division.

Kevin Spencer, chief executive of Markerstudy Group, reaffirmed the group’s commitment to the Northern Ireland market.

“Markerstudy and Hughes Insurance have traded together for many years and worked closely on numerous initiatives. We’re committed to the Northern Ireland market and are looking forward to welcoming their team and supporting their aspirations to deliver growth and innovation to enhance their customer offering,” he said.

Bernie McHugh Sonner, acting CEO of Hughes Insurance, said the deal with Markerstudy will strengthen the company’s capabilities and enhance its ability to provide innovative, competitive, and comprehensive insurance solutions.

“Joining the Markerstudy Group marks a new and exciting chapter for Hughes Insurance and our valued customers. This acquisition will not only strengthen our capabilities but also enhance our ability to provide innovative, competitive, and comprehensive insurance solutions. I look forward to the future with confidence and enthusiasm, knowing that this collaboration will drive growth and innovation for Hughes Insurance,” she said.

Ardonagh Group confirmed the completion of the merger, initially announced in September last year. It noted that a related party will maintain a significant minority equity stake in the new entity.

Ian Donaldson, Atlanta Group founder and CEO of Markerstudy Distribution, expressed his enthusiasm.

“I am hugely energised to start our journey to create a major new player in the UK insurance landscape,” he said. “With the formidable talent and expertise of our colleagues focused toward this new chapter, we look forward to delivering innovative solutions and service for the eight million+ customers now shared across our leading and specialist brands.

“I also want to say a personal thank you to Ardonagh CEO David Ross and all the Ardonagh team. When I first met David back in 2016, we discovered we had a shared vision and dream of what could be achieved with the right people and a lot of hard work. The creation of Atlanta and merger with Markerstudy simply wouldn’t have been possible without their backing, and I’m pleased that they will still be involved as a shareholder.”

BMS Group, an independent insurance and reinsurance broker, has announced the appointment of Hannah Watkins to the role of UK chief growth officer. Effective immediately, Watkins will operate out of the London office, reporting to Ian Gormley, the CEO of BMS Group UK.

In her new role, Watkins will be responsible for leading the firm’s client-first growth strategy, coordinating BMS’s business origination strategies across London. This coordination is vital as it aims to not only bolster the UK market but also support the company’s objectives in the US and other international markets. Watkins will also lead efforts to reinforce the company’s cultural ethos and strengthen relationships with carriers to enhance BMS’s position in the global market.

Watkins has served at BMS for over 12 years, joining the company as the director of risk solutions. Her most recent position was as managing director at BMS Re. Prior to joining BMS, she served as an associate at Jardine Lloyd Thomson Group and Glencairn, each for six years.

“Hannah has been a cornerstone in the development of our growth narrative and a key architect of our client-first culture,” Gormley said. “Her comprehensive experience across specialty insurance, delegated markets, and reinsurance makes her the ideal leader to integrate our operational strengths and drive our growth initiatives.”

“Having been part of BMS for 13 years, I am both honoured and excited to step into this role,
 Watkins said. “Our clients are the core of our business, and I am deeply committed to enhancing our impact on their enterprises, their communities, and the broader market. This role offers me an incredible opportunity to further champion our team’s efforts and spearhead our strategic growth.”

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RenaissanceRe Holdings Ltd. has released its financial results for the second quarter of 2024. The company reported a robust net income available to common shareholders of $495 million, demonstrating a strong financial position. Operating income was $650.8 million available to common shareholders.

The firm realized an annualized return on average common equity of 21.4% and an operational return on average common equity of 28.2%. These figures are indicative of RenaissanceRe’s effective capital utilization and its proficiency in generating profitable outcomes from its equity base, the company said.

During the quarter, the company saw gross premiums written surge by 29.2% from the second quarter of 2023, adding up to an increase of $773.9 million. This growth was driven by gains across major segments: property premiums rose by 25%, contributing an additional $350.5 million, while casualty and specialty premiums increased by 33.9%, adding $423.4 million.

The company also reported a combined ratio of 81.1% and an adjusted combined ratio of 78.6%.

RenaissanceRe actively engaged in share repurchases during the quarter. The company repurchased $108.5 million of its common shares and continued its shareholder return strategy into July, buying back an additional $61.2 million of shares.

In addition, the company experienced a surge in fee income, which climbed by 48.3% to $84.1 million, and a substantial rise in net investment income, which increased by 40.4% to $410.8 million.

Kevin J. O’Donnell, president and chief executive officer, attributed the quarterly performance to strong execution across the company’s diversified business lines and strategic asset growth. He specifically noted the ongoing benefits from the acquisition of Validus, which he said continues to deliver substantial growth in premiums and invested assets, contributing positively to the company’s performance in a favourable business environment.

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As the school term begins in South Australia, RAA Insurance urges parents to ensure their children’s laptops, tablets, and other technology items are adequately insured.

Data from RAA Insurance revealed that 37% of its contents insurance policyholders do not have accidental damage cover. This lack of coverage could leave children’s devices unprotected if they are damaged or stolen while at school.

Annually, the insurer processes more than 7,000 claims related to accidental damage.

“Parents spend a lot of money on laptops, tablets, and phones for their kids’ schooling and may not be certain if their insurance policy covers these items if they’re lost, stolen, or damaged while at school,” she said.

She advised parents to contact their insurers to determine if their home and contents insurance extends to children’s valuables outside the home, including during commutes to and from school.

“A quick phone call to your insurer could give you that peace of mind to know you won’t be significantly out of pocket if something goes wrong,” she said. “If you want to check whether school items are covered, you can ask your insurer if your policy already covers them or if you need to take out optional cover such as accidental damage.”

State data from 2018 to 2022 shows 263 child pedestrian injuries or fatalities, with 124 of these incidents occurring during school pick-up and drop-off times. The peak period for these incidents is between 3pm and 4pm, with additional high-risk times from 8am to 9am and 4pm to 6pm.

The RAA also reported 44 road fatalities and 434 serious injuries in South Australia during the first half of 2024.

“Young people walking to school are our most vulnerable road users, and it’s concerning to see 124 children have been injured or have lost their lives at school pick-up or drop-off times between 2018 and 2022,” said Matt Vertudaches, a senior traffic engineer at RAA.