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Accidents relating to condiments can be quite common, a predicament that Heinz now aims to solve with its innovative insurance policy.

Heinz Arabia has unveiled a solution aimed at addressing the mishaps faced by ketchup enthusiasts – the introduction of the first-ever ketchup insurance policy.

This unique insurance offering is designed to mitigate the frustrations associated with ketchup spills, splatters, and stains, which Heinz touts as marking a significant step towards enhancing its customer experience.

According to Heinz Arabia, nearly half (48%) of its consumer base encounters ketchup-related accidents frequently, with a striking 91% affirming that the enjoyment of Heinz ketchup outweighs the potential mess.

In response, Heinz Arabia, in collaboration with a leading employee benefits app, has introduced a pioneering ketchup insurance policy that accommodates 57 distinct claims, addressing a wide range of ketchup mishaps.

Claims for ketchup-related mishaps

The policy’s official site lists these 57 damage descriptions, which Heinz says can be eligible for a claim. Some of the more distinct ones include:

• The Mega-Squeeze – the claimant attempts a mega-squeeze of Heinz ketchup, causing ketchup to disperse in all directions
• Heinz Sight – the claimant attempts to squeeze the bottle with a loose nozzle, causing temporary vision impairment
• Error 57 – the claimant spills ketchup upon their computer and/or computer equipment, impairing its function
• Young Picasso – the claimant’s young offspring use the ketchup for artistic purposes, resulting in a messy masterpiece
• Murphy’s Law – the claimant’s ketchup spill beats all the odds, and lands on the only white section of the affected object

Heinz says that this initiative was inspired by numerous social media postings depicting various ketchup spills and accidents. As a result, the company has formulated a comprehensive insurance package, covering an array of incidents from stains on carpets and clothing to unexpected splatters on pets, ceilings, and furniture. The policy is crafted to offer quick and straightforward compensation for those affected.

For residents in the UAE, the insurance policy enables them to claim a variety of compensations through rewards such as home cleaning services, laundry support, handyman services, and even luxurious spa treatments. These benefits are accessible via MyBenefits, a premier employee benefits application in the Middle East.

Passant El Ghannam, head of marketing at Kraft Heinz MEA, commented on the initiative.

“Here at Heinz, we recognize that our fans’ enthusiasm for our ketchup can occasionally lead to exuberant, albeit messy, situations. Our research indicates that 48% of them regularly deal with ketchup accidents, yet 91% assert that their love for Heinz justifies the occasional spill. This insight has motivated us to launch the ketchup insurance policy, transforming potentially frustrating moments into opportunities for delight and convenience, and allowing our avid consumers to relish their ketchup experiences without concern,” El Ghannam said.

Heinz Arabia encourages individuals who have encountered ketchup-related accidents that fall within the 57 covered claims to seek compensation. Claims can be filed through Heinz Arabia’s official website or social media platforms, utilising the hashtag #HeinzKetchupInsurance.

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This article was produced in partnership with Open GI.

Confronted with intense competition from innovative, technology-driven startups and growing consumer demands for seamless digital services, the traditionally conservative insurance sector has been actively pursuing digital transformation for several years. According to a Thomsons Reuters report Global insurance IT spending is expected to reach £287 billion by 2025.

Head of Digital Product, Paramjit Singh at Open GI -insurance software providers for brokers, MGAs and insurers – sees digital innovation as a vital component of the industry’s future. Singh’s attraction to Open GI was rooted in its commitment to change and innovation. He says, “”I was drawn to Open GI because of its commitment to undergoing significant change. The desire to be part of that transformative journey was a major deciding factor for me.”

The company’s suite of digital tools, from quote and buy solutions to self-service portals, is designed to streamline the purchasing journey, enhance customer service, and integrate seamlessly with aggregators and data enrichment services for better pricing insights.

Digital’s dual edge: opportunities and challenges

Digital technology offers a plethora of benefits, from operational efficiencies to improved customer engagement. Singh emphasizes that digital tools enable brokers to manage policies more effectively, offering a frictionless experience to customers akin to that of leading online services like banking apps, Uber, and Amazon. The demand clearly exists, survey by Capgemini shows over 75% of insurers plan to collaborate with insurance technology firms to enhance customer experiences. However, the journey is not without its challenges. The onset of the pandemic has not only expedited this shift but also highlighted the critical need for digital innovation, albeit in a more challenging environment, leaving many brokers playing catch-up. The industry’s traditionally slow pace in adopting new technology is now being tested by changing consumer behaviors and expectations.

Singh says, “Digital transformation is not just about technology; it’s about catering to changing consumer behaviors and expectations. The pandemic has significantly accelerated this shift, making digital adoption an imperative for brokers.”

Navigating customer expectations and security concerns

The Head of Digital Product points out that the digital shift is largely consumer-driven, with customers expecting quick, streamlined processes akin to those offered by other online services. This demand for speed and convenience is pushing brokers towards digital tools that can provide such experiences without sacrificing personal touch. Moreover, data security remains a paramount concern, with Singh highlighting the importance of encryption, regular security checks, and cybersecurity measures to protect against increasing threats.

Singh highlights that reluctance often stems from both cost considerations and a lack of understanding of the technology involved. While many are familiar with basic online shopping websites and portals, the challenge lies in leveraging these platforms further, such as harnessing data effectively and adopting an omnichannel strategy, which includes integrating live chat and AI virtual assistants. This approach aims to provide a seamless experience, where customers don’t need to repeat information across different channels, from online to phone communication.

He notes, “The conversation around AI and machine learning is pervasive, yet there’s a gap in comprehending its practical benefits. Diving into AI without a solid foundation can be premature. A customer-centric strategy is essential, paving the way for advanced systems like those powered by natural language processing (NLP). These technologies enable assistants to understand and mimic human conversation, offering diverse applications, from online customer support to streamlining tasks.”

Integrating such AI capabilities can also enhance telephone services, potentially reducing call durations by handling preliminary inquiries through automated voice responses before connecting with a live agent. “Yes, there’s an initial outlay but it leads to cost efficiencies over time. By shortening calls, call center staff can be redirected to other valuable activities, optimizing their roles,” he further details.

Future direction and forward thinking

To gauge the success of digital initiatives, Singh suggests monitoring key performance indicators (KPIs) such as adoption rates, customer satisfaction, operational efficiencies, and conversion rates. These metrics can offer valuable insights into the effectiveness of digital tools and areas for improvement. Looking ahead, Open GI aims to further enhance its digital offerings by exploring new technologies and gathering feedback from brokers to address the industry’s most pressing challenges.

Providing tangible benefits, such as cost savings, is key since that’s a primary concern for brokers. These savings then contribute to better conversion rates, indicating the efficiency of policy renewals or updates. Analyzing conversion rates and instances of abandonment allows for the optimization of customer journeys.

The goal is to enhance and expand digital services by building upon existing products and incorporating new technologies, with a focus on integrating insights from brokers. This approach helps in understanding the challenges brokers face, particularly with time-consuming repetitive tasks, and in developing solutions tailored to address these issues effectively.

Open GI is set on preserving the invaluable role of insurance brokers rather than bypassing them with digital sales methods. The company understands that the personal touch provided by agents, through one-on-one interactions, remains irreplaceable. Such interactions, where an agent can directly address a client’s personal circumstances—like the well-being of their children in unforeseen events—highlight the importance of human connection in insurance sales.

Despite this, Open GI acknowledges the growing demand for digital innovations in the marketplace. These digital processes are not intended to supplant personal interactions but to augment the efficiency of agents. The goal is to streamline sales and administrative tasks, ensuring that paperwork, which previously could consume an entire day for a client, can be completed more swiftly and efficiently. This approach reflects a balance between leveraging technology to enhance operational efficiency and maintaining the personal advisor-client relationship that is central to the insurance industry.

This article was provided by Travelers Europe.

More than one-third of workplace injuries occur during an employee’s first year on the job, regardless of the person’s age or industry experience. That’s what Travelers discovered after analysing more than 1.5 million claims – findings the company included in its 2022 Injury Impact Report.

The results reflect patterns that the Health and Safety Executive (HSE) has also discovered; job tenure has a significant impact on workplace injury rates, with employees who are new to their jobs having a greater risk of injury. Other factors include the employee’s age (with younger workers at greater risk) and hours of work. 

“When we understand what drives workplace injuries and who is experiencing them, we’re in a stronger position to advise organisations about post-injury management and even help them prevent these incidents altogether,” said Ruth Reaney (pictured), head of health & care at Travelers Europe.

Navigating a new world of risk in health & care

In February 2022, the UK Government made care workers eligible for the Health and Care Worker visa and added the occupation to the Shortage Occupation List. This has led to an increase in the number of people arriving in the UK to take up social care jobs, enabling a reduction in vacancies as more posts were filled in 2022/23. Skills for Care estimates the turnover rate of directly employed staff working in adult social care was 28% in 2022/23, the equivalent of approximately 390,000 leavers over the year.

“When there is higher turnover in an organisation and people are changing jobs more frequently, the workplace risks only grow,” said Reaney. “Our research underlines how important it is to provide comprehensive onboarding and training programs for employees, especially when there has been considerable movement in the labour market.”

The Travelers Injury Impact Report found that the most common causes of first-year injuries were overexertion (27% of claims) and slips, trips and falls (22%) – risks that people working in health & care professions encounter every day. Further, Travelers found that first-year employees working in health and care account for 43% of “lost-time claims”, which are workplace injuries that result in time away from the job.

So how can health and care organisations best manage these risks? Here are several areas where it can help to assess existing risks and take steps to mitigate them:

1. Implement an accident analysis program

This can help employers identify the root causes of accidents and develop corrective actions to reduce the likelihood of similar injuries caused by repetitive motions, awkward body posture and overexertion. Employers should maintain records that document details about each workplace injury, including a description of the accident, where it occurred, the tenure of the employee(s) involved and how often the accident could happen if improvements are not made. This data can be used to better understand employee injury risks in the organisation and to inform training programs and mitigation plans.

2. Integrate safety into the hiring process

While the hiring process typically focuses on evaluating candidates based on experience and qualifications, health & care employers can also use it as an opportunity to identify safety-minded employees. The job description should also convey the safety culture and expectations of the organisation, so potential hires understand the importance of safety from their first interactions with the company. Conducting behavioural interviews and background checks can help identify candidates who will support the organisation’s safety culture.

3. Onboard and continuously train employees

Employers shouldn’t assume that employees who are new to their role (even if they are experienced) know the appropriate procedures or the optimal way to minimise risk of injury and overall exposure to loss. On-the-job safety training and orientation should include both skills-based and awareness-based training to give employees tactical knowledge and cultural awareness of why safety practices are important. Skills-based training demonstrates the actual hands-on procedures necessary to perform a specific task. Awareness-based training includes general policies, hazard recognition and awareness, and the company’s expectations for maintaining a safe and healthy work environment.

4. Support employees throughout their careers

Even after the first year of employment, health & care employees are still at risk of on-the-job injuries. But when employers create a safety and wellness culture, they can reduce workplace injuries. It can help to develop injury and illness prevention programs and provide general safety trainings. Be prepared before an employee is injured and have a plan in place that helps employees return to work as soon as medically appropriate. Travelers’ clients benefit from their Proactive Rehabilitation Service, which helps injured employees receive support at an early stage. This intervention is key to helping employees recover and getting them back to work.

Health & care employers can lay the foundation for a stronger safety and wellness culture by proactively assessing risks – not waiting until a new employee joins the organisation to do so.

“Before an employee even starts a new job, employers need to consider the things they expect the person to do and how to remove risks so they can perform their tasks safely,” said Reaney. “When you make employees safer, you can deliver better and more consistent care for their patients. It’s about setting the stage for success.”

_{The information provided is for general information purposes only. It does not constitute legal or professional advice nor a recommendation to any individual or business of any product or service. Insurance coverage is governed by the actual terms and conditions of insurance as set out in the policy documentation and not by any of the information in this document. Travelers does not warrant that adherence to, or compliance with, any recommendations, best practices, checklists, or guidelines will result in a particular outcome.}

Claims management specialist Crawford & Company has announced its financial outcomes for the fourth quarter ending December 31, 2023, alongside its annual results for the year.

Crawford & Company’s fourth quarter saw a slight increase in revenue due to foreign currency exchange rates, contributing an additional US$3.4 million or a 1% increase, making the revenues before reimbursements US$292.7 million. However, this marked a decrease of 9% from the fourth quarter of 2022. The net income attributable to shareholders, on a non-GAAP basis, totalled US$3.3 million in the fourth quarter of 2023, a decrease from US$11.4 million in the same period the previous year.

For the year 2023, excluding adjustments, Crawford & Company achieved consolidated revenues before reimbursements of US$1.280 billion, marking an 8% increase over 2022. The net income attributable to shareholders on a non-GAAP basis rose to US$47.0 million from US$33.4 million in 2022.

In terms of operational segments, North America loss adjusting reported a 10.3% decrease in fourth-quarter revenues to US$69.7 million from the previous year, but saw an annual increase of 10.5% to US$303.6 million. The operating earnings for this segment reflected a decrease in the fourth quarter but an overall increase for the year 2023.

International operations showed growth, with fourth-quarter revenues increasing by 9.9% to US$97.2 million and annual revenues up by 7.0% to US$382.4 million. This growth was partially attributed to the Van Dijk acquisition and showed an improvement in operating earnings from the previous year’s losses.

Rohit Verma, president and CEO of Crawford & Company, reflected on the year’s performance, emphasising the record-setting consolidated revenue and enhanced margin performance despite challenges such as benign weather activity affecting fourth-quarter revenues.

“2023 marked a momentous year of growth and margin expansion with operating earnings increasing 38% from 2022. As we move through 2024, I am optimistic about the prospects that lie ahead for our business, presenting ample opportunities to further enhance our brand presence and expand our market share,” Verma said.

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Is the current housing market the sign of a new crisis – or a sign of a new normal in a post-pandemic environment?

Reinsurance broker Lockton Re answered this question via new analysis on the state of US mortgage credit risk, delving into the complexities of the current housing market, characterized by limited supply, robust demand, and diminishing affordability in the aftermath of the pandemic.

The study, titled “Unpacking the Post Pandemic Housing Market: Crisis Incoming or the New Normal,” provides an examination of the market’s fluctuations following the COVID-19 outbreak. It highlights a significant milestone in 2021 when US housing inventory plunged to its lowest in over five decades.

According to the report, the ongoing market conditions and interest rate environment suggest a growing dependence on the construction of new homes to satisfy market demand.

The analysis also pointed out a stark contrast in economic indicators since 2015, noting a roughly 45% rise in median household income against a 140% surge in monthly mortgage payments. This disparity suggests that housing expenses have far exceeded wage growth – by more than 300%.

Lockton Re’s report forecasts that housing supply will remain constrained until there is a decrease in interest rates. However, it anticipates a rebound to pre-pandemic levels of market activity as existing homeowners eventually decide to sell, influenced by more favorable rates.

In the short term, this scenario may prompt reinsurers to explore diversification into other lines of credit. Over the longer term, however, growth is expected in this sector.

Sean Hannah, co-head of mortgage and credit at Lockton Re, shared her insights on the current market challenges.

“Home price inflation coupled with rate hikes have finally pushed buyers past the brink of affordability. Additionally, existing homeowners are reluctant to give up their favorable interest rates to introduce new supply into the market,” Hannah said.

She explained that the restriction of both supply and demand is keeping the market relatively balanced and should bode well for current holders of mortgage credit risk. However, caution is urged for those looking to grow their portfolios.

Joe Koebele, co-head of mortgage and credit at Lockton Re, also commented on the strategic response of insurers and reinsurers to the current market dynamics.

“Despite the current environment many re/insurers are still targeting credit as a business segment with opportunity for growth,” Koebele said. “We are seeing the anticipated reductions in new mortgage credit risk transfer issuance push more re/insurers to look to diversify their business into other lines of credit, such as bank credit risk transfer and significant risk transfer transactions.”

This reflects a broader strategy among re/insurers to navigate the challenging landscape and identify growth opportunities within the credit segment.

Another report from the brokerage indicates that amid a shift towards normalcy during reinsurance renewals, the property insurance sector is expected to maintain a positive rate environment through the first half of the year.

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Global Insurance Law Connect (GILC) has unveiled its first report on the integration of artificial intelligence within the insurance industry, offering a comprehensive analysis from 18 countries.

The report navigates through the transformative effects of AI, including enhancements in efficiency and innovation across various insurance operations, while also spotlighting the associated challenges such as potential biases in AI algorithms, privacy concerns, and a heightened risk of cyber incidents.

AI’s role in changing the insurance landscape

Gillian Davidson, GILC chair and a partner at Sparke Helmore Lawyers, emphasised the critical role of AI in revolutionising the insurance landscape.

“AI has already become an essential part of our daily lives and is quickly making its way into the insurance sector. This trend is expected to continue as AI offers numerous benefits including faster claims processing, improved underwriting, innovative insurance products, streamlined administration processes, and more efficient chatbots,” she said.

A significant highlight of the report is AI’s capability to swiftly process and analyse extensive datasets, a feature that is proving invaluable for risk prediction and assessment.

Using AI to better understand risks

Davidson pointed out how AI’s analytic prowess can assist insurers in penetrating markets with complex risk profiles, particularly where historical data is scant. This analytical advantage is instrumental in crafting precise coverage options, especially in areas like cyber insurance.

“Ultimately, this improved risk analysis will benefit consumers as it enables insurers to offer more relevant and tailored coverage to their customers,” she said.

AI regulations

The evolving regulatory landscape surrounding AI is another focal point of the report, with the insurance industry keeping a keen eye on developments such as the EU’s forthcoming AI Act, which is expected to serve as a regulatory blueprint worldwide.

The sector is also acutely aware of the emerging liabilities and risks that accompany AI adoption, including issues of privacy and cybersecurity.

Insurance distribution models

The report touched on the digital transformation within insurance distribution models, a trend accelerated by the COVID-19 pandemic and characterised by a significant shift towards online and digital platforms. This shift is expected to continue, benefiting markets with traditionally low insurance penetration rates.

AI-related challenges

The adoption of AI is not without its data privacy challenges. The report calls attention to the imperative for insurers to establish robust compliance mechanisms with data protection standards to mitigate risks associated with data breaches, and effectively manage any such incidents.

“Currently, insurance solutions tailored to the risks associated with artificial intelligence are still in the early stages of development. However, as the technology advances and becomes more prevalent, and regulatory bodies sharpen their focus, we can expect an increase in AI-targeted risk solutions,” Davidson said.

With the January 2024 renewals complete, what awaits European reinsurers’ underwriting margins in this “new world?”

Fitch Ratings has observed that reinsurers in the region were approaching the peak of their underwriting margins as of January 2024, suggesting a move towards a more balanced supply-and-demand dynamic.

This development aligns with Fitch’s previous forecasts that margins would see slight improvements before peaking in 2024, amid a slowdown in the property catastrophe market dynamics. The trend also mirrors the expectations set for an improved global reinsurance sector outlook this year.

The largest reinsurers in Europe, including Hannover Re, Munich Re, SCOR, and Swiss Re, successfully maintained significant enhancements in their program structures and terms achieved last year.

Fitch noted that their premium income growth outpaced that of 2023, largely fueled by volume rather than price hikes, indicating continued favorable market conditions for further profitable expansion.

Moderated adjustments despite substantial risk-adjusted inflation

Compared to the substantial risk-adjusted price increases in January 2023, the highest since the early 1990s, the current year’s adjustments have moderated. This change reflects improved technical profitability, although nominal price increases remain significant.

For instance, Swiss Re reported a nominal price increase of 9%, which was counterbalanced by an 11% uptick in loss assumptions, primarily due to inflation and casualty losses, resulting in a risk-adjusted price change of -2%, a shift from +5% in January 2023.

The favorable market environment facilitated robust growth in premium volumes, averaging 8.3% across these four companies, contrasting with flat premium volumes during the January 2023 renewals. SCOR experienced the most substantial growth, attributed to its focus on marine, engineering, energy, and alternative solutions sectors.

The renewal period highlighted a preference among reinsurers for property catastrophe, specialty lines, and customized solutions, with a cautious approach towards US casualty business impacted by high inflation on claims.

Despite varying strategies towards US casualty exposure — with Munich Re, SCOR, and Swiss Re reducing their exposure and Hannover Re maintaining its level — the reinsurers upheld their underwriting discipline, especially in natural catastrophe lines and on attachment points.

Renewal of retrocession covers was another common strategy among these firms, aided by an increase in availability and stable or slightly reduced risk-adjusted prices. Munich Re and SCOR expanded their retrocession coverage without increasing total costs, whereas Hannover Re slightly reduced its protection by lowering its “K-cession” securitization.

Fitch Ratings anticipates that strong underwriting profitability will continue to support reinsurers’ ratings throughout the year. Price levels and favorable terms are expected to offset the impact of high claims inflation.

Investment income is also likely to contribute positively to earnings, as reinvestment yields remain above average portfolio yields, underscoring a stable outlook for the sector.

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Global re/insurance broker Miller has announced its foray into the parametric insurance arena with the creation of a new global division.

Led by Alice Glenister, the parametric insurance team set to focus on a vast array of sectors and industries.

The team aims to extend the range of insurance triggers beyond nat cat events, developing custom-tailored solutions that address client needs and risk exposures, including programs like reduction in yield, cyber downtime, and wind deficiency policies.

Glenister, who recently transitioned from her role as director of insurance at Mastercard, will head up the London-based team. Her background includes parametric underwriting experience from her tenure at Generali.

Glenister will be supported by Charlie Liddle, joining from OneGlobal, and Rowan Minhas, who moves from another position within Miller. She shared her excitement about leading this new global team, emphasizing the unique benefits of parametric insurance, such as expedited claims processing and increased transparency.

“Working across a range of sectors, we will be able to provide coverage for those risks that were once considered too complex or too difficult to insure, allowing Miller clients access to enhanced risk management capabilities. By harnessing the power of parametric solutions, Miller are poised to redefine the way their clients protect their assets and mitigate risks in an ever-changing world,” Glenister said.

Martin Henderson, head of energy & construction at Miller, expressed enthusiasm about Glenister’s leadership and the formation of the team.

“The formation of this specialized team underscores Miller’s ongoing commitment to innovation and client-centricity, allowing us to develop and implement cutting-edge parametric solutions tailored to meet the diverse needs of clients across various industries and geographic regions,” Henderson said.

Besides parametrics, the re/insurance broker has also bolstered its energy proposition with the appointment of Hayley Kennedy as client advocate for the upstream and onshore energy divisions.

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Artificial intelligence (AI) has grown to encompass a broad range of financial technology applications, and insurtechs billing their offerings as “AI-powered” must work harder to distinguish themselves in a crowded marketplace, an expert has warned.

Dr. Andrew Johnston (pictured), global head of insurtech at Gallagher Re, suggested that the label “AI” is becoming increasingly redundant as the technology becomes inherent among insurtech offerings.

“Historically, I would say that AI is probably suffering the same fate as the label of ‘insurtech,’ in that it now is a very broad church,” he told Insurance Business.

“It applies to almost everything, and every modern technology that’s being built right now has an AI-type component. So, the term itself is arguably redundant because pretty much any new initiative, business, or capability coming into our industry will be technologically enabled.

“I think we just want to be careful to be specific and to understand the various iterations and sub-sectors of AI and their applicability to the industry so that [AI] doesn’t become a confused term that people throw around.”

The generative AI boom: How should insurtechs position themselves?

Despite his reservations about the liberal use of the “AI” label, Johnston said he is optimistic about the advancements in the technology, particularly in generative AI.

“Looking at technology in isolation, generative AI possibly has the biggest application for us. I also think linear algorithms for things like pattern and anomaly detection have huge applications in our industry, particularly around claims. Clustering and large language models have a significant application in distribution, particularly when we think about things like embedded insurance,” he said.

But Johnston stressed that insurtechs’ focus should be on applying technology to create value and efficiencies in the industry, not AI for its own sake.

“It’s about understanding the technology’s inherent capability in the context of an insurance company’s workings and where it can get the most value,” he said. “To do that, the technology firm must understand the insurance industry well enough to know the right applications.”

Where does the global insurtech market stand today?

Though Gallagher Re’s recent global insurtech report found that funding for the sector declined 43.7% on-year in 2023 (from $8 billion in 2022 to $4.51 billion in 2023), Johnston believes that the insurtech market is healthy and mature.

According to Gallagher Re, 2023 saw re/insurer investment at a record high, with 148 investments in private technology firms, 12% higher than the previous record of 132 investments in 2019.

“2023 [funding], despite being lower, was consistent; it was not volatile at all,” Johnston said.

“At the moment, you’ve got a much more accurate sense of what the market cap is worth for insurtech globally,” said Johnston. “Numbers are down, but they’ve come from a very high peak, which was unsustainable.

“Transaction volume itself didn’t drop anywhere near as much as overall capital invested. What you could ultimately deduce from that is there is still a lot of interest. It’s just that the average check size is smaller, and we have far fewer mega-round deals. I think it’s a very healthy evolution [of the market].”

The key to future success for insurtechs

Johnston also predicted that funding would see a “lift” in 2024 due to several factors, including the improving performances of public insurtech stocks; increased differentiation among insurtech firms by investors; anticipated public offerings and second waves of funding rounds; and growing confidence from industry players, particularly reinsurers, in investing in insurtech.

But what types of insurtechs will successfully find the funding they need in this environment?

“That’s the trillion-dollar question,” said Johnston. “Any company that is genuinely adding long-term value will do well.

“Until recently, some insurtechs were trying to sell the technology as the proposition and that the value is inherently in the technology. But it’s not; it’s the application of that technology and how it can improve or transform traditional commercial success criteria.

“So, I think that the insurtechs that are doing well and will continue to do well are those that understand the pain points in our industry, who are as focused on the ‘what’ as much as the ‘how’.”

Do you agree with Johnston’s views on AI and the global insurtech landscape? Please share your perspective in the comments.