As artificial intelligence (AI) continues to establish a foothold in insurance, it’s important to remember two things: (1) AI can be invaluable in automating routine tasks to reduce the need for manual intervention. (2) The predictive value of AI lies in hindsight; that is, its ability to analyze data, to identify patterns, and to predict outcomes […]
Because we’re as modest as we are, we don’t like to brag. (But we will if we have to. 😉) We bring that up here because we were doing some research on the percentage of annual revenue some companies put back into their products. What we found suggested that in industries with long innovation cycles […]
Given the fact that we’re in the business of the mechanics of insurance (processing software), it had never occurred to us to wonder about its psychology … until it did. When we started to indulge our curiosity, one of the first things we found was an article from the December 2019/January 2020 edition of The […]
In our previous post, we wrote about the risks associated with system implementations including the project investment, lost productivity, re-implementation costs, consulting and legal fees, and reputational damage. That’s why we reduce our customers’ risk and exposure by employing a guaranteed-cost model (or guaranteed-cost contract). Using that model, our customers pay a fixed, predetermined price […]
Depending on the studies you cite or the reports you favor, the average cost of a failed system implementation in the insurance industry can vary significantly depending on the size of the company, the complexity of the system being implemented, the amount of money spent on the system, the number of people involved in and […]
In the December edition of Best’s Review, we came across an article titled, “Underwriting AI: Is It Aligned With Insurance Industry’s Best Interests?” It’s fair to say it left us feeling a little queasy, especially this part: The rapid advancement of artificial intelligence is eliciting a wide range of predictions for its impact, from solutions […]
In the first installment in this series, we wrote: We’re not necessarily in a hurry to return to horses and buggies. But we have to admit, those were certainly more simple times with more obvious risks and fewer technologies to master. On the other hand, more of us live better lives than ever before … […]
We heard someone say a long time ago, “You become what you count.” The comment was made in the context of a business discussion. It was offered in response to an inquiry that went something like this: “You’re a very successful, highly profitable company. But I don’t see any of that on your website or […]
No. We’re not talking about the ZZ Top song. We’re talking about the pressure insurers are feeling from a very difficult reinsurance market. According to an article in beinsure.com, “Global Reinsurance Market 2023: Challenging Renewals & Realignment“: Mounting pressures in the reinsurance market … were exacerbated significantly by Hurricane Ian … reinforcing one of the […]
The September edition of Best’s Review ran an article called, “Slow and Steady”, about the resilience of mutual insurance companies. While the article covered life and health companies, too, it had this to say, in part, about property/casualty insurers: In 2022, property/casualty mutuals posted a net loss while stock carriers had a profit … With […]
