Insurance news

Industry reaction: Welcome but overdue

Commenting on the announcement, Erin Sims, financial services senior analyst at RSM UK, said the investment was overdue:
“More investment in flood defences is long overdue, as the industry grapples with increasing cost pressures, and weather-related claims payouts hit a record of over £200 million earlier this year (source: ABI),” she said. “Flooding causes untold misery for impacted homeowners and businesses, and puts enormous pressure on insurers, so any preventative measures are welcome.”

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Usage patterns, for instance, vary widely. Commercial fleets may favour EVs for their lower fuel and maintenance costs, which makes them a smart choice for high-mileage operations. Meanwhile, private owners often use EVs for shorter commutes or as secondary vehicles, resulting in below-average mileage that skews data on frequency and severity of claims.

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Definitions check: what is Agentic AI?

Khan gave a useful definition that explained the difference between GenAI and Agentic AI. “I would define Generative AI as a class of artificial intelligence models capable of creating new content, such as text, images, audio, video, code, etc, by learning patterns from existing data,” he said.

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Ronald O. Perelman, the financier once ranked among America’s wealthiest men, took the witness stand in a New York State Supreme Court courtroom this week, describing how five of his most prized paintings lost their visual brilliance following a fire at his East Hampton estate in 2018. The case, now in its third week before Justice Joel M. Cohen, pits Perelman against insurance powerhouses including affiliates of Lloyd’s of London, Chubb Ltd., and American International Group Inc.

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• Did not have a chatbot on the career site that provides job recommendations (83%)
• Did not show recently viewed jobs (83%)
• Did not automatically detect the candidate’s location and suggest relevant jobs nearby (76%)
• Did not articulate the employer value proposition throughout the candidate journey in a way that was easy to find (74%)
• Did not feature a lot of relevant, quality content that conveys the employer brand (73%)
• Did not use a passwordless job cart or favourites function that allows candidates to save job searches (68%)
• Did not use video content featuring employee testimonials showcasing company culture (31%)

“There is a clear divide between companies experimenting with AI and those truly harnessing its power to accelerate talent acquisition processes and transform candidate engagement through hyper-personalisation,” said John Harrington, Senior Director, Product Marketing at Phenom, in a statement.

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“Lockton is, first and foremost, a growth company, and consistent double-digit organic growth continues to set us apart from our competition,” said Lockton. “As broker consolidation accelerates, Lockton’s independence, performance, and consistent commitment to our clients and associates continue to fuel growth and attract best-in-class talent.” 

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“The mindset that ‘this won’t happen to us’ is shifting,” he said. “Organisations are realising that they cannot prevent these crises. They will occur, and when they do, the consequences can be catastrophic. The pressing question now is: What will we do about it?”

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Flight disruptions and premium volatility 

Following the escalation, Iranian, Iraqi, and Jordanian airspace was shuttered, and Israel’s Ben Gurion airport ceased operations entirely. Eurocontrol has reported the disruption of nearly 2,000 European flights, with 650 cancellations within a single day. Insurers now face increased liabilities linked to aviation war risk covers, while airlines are re-routing via Saudi and Turkish airspace, incurring significant cost escalations. 

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The FCA, for its part, pointed to recent efforts to cut back on bureaucracy and increase efficiency. A spokesperson noted the regulator has reduced data reporting requirements, removed outdated supervisory materials, created a private market framework for securities, simplified insurance regulations, and is advancing reforms aimed at clarifying redress processes for firms and consumers.

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“We’re seeing much more detailed inquiries,” Porter said. “What’s the specific risk in this region, at this site? Customers, brokers, and other partners are involving us earlier in the decision process. That’s a shift from even five to 10 years ago, when insurers often only found out after the expansion. Now we’re part of the planning, and that’s a great change.”

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